Hard cider in New York has seen an unprecedented surge. According to the New York Cider Association, the industry has grown by over 2,400% in the past decade, now representing a $1.7 billion economic impact on the state’s agricultural economy. With more than 125 licensed producers generating over five million gallons annually, New York leads the nation in active cideries and ranks second in apple growers, trailing Washington State.
The industry is now poised for further growth that will level the playing field with other craft beverage producers. On August 19, Governor Kathy Hochul signed legislation allowing New York’s cideries, meaderies, and distilleries to ship their products directly to consumers. While direct shipping privileges for wine producers have been in place since 2005, cider and spirits producers were only granted the ability to direct ship temporarily during the pandemic.
The new legislation, effective November 17, will provide these small craft producers with greater market access by allowing them to sell directly to consumers both within New York and to other states that allow shipment. The law is expected to have a notable impact on the craft beverage industry.
For Hudson House Distillery co-owner Paul Seres, it’s a long-awaited development that will allow smaller distilleries to bypass traditional distribution channels. “We’re excited about this change which allows us to expand our reach without having to pay a middle company,” he says. “I think it’ll only help our business and our brands—it’s a huge benefit for somebody like me, because 35 to 40 percent of our business is from people outside of the area. It opens up the door for reordering, connects us better to our customer base, and allows them to buy directly from us.”
However, some, like Tim Graham of Left Bank Ciders, are more cautious in their optimism about the new legislation. Graham notes that while Left Bank likely plans to take advantage of the new shipping options, he’s uncertain whether smaller producers will see significant benefits.
“Our pre-existing footprint in the state before direct shipping is small but decent, and I don’t know where consumers looking for our cider are in the state that couldn’t already get it,” says Graham. “We’re in a few places in the city, so it might help that market develop, but I’m not sure if people in, say, Buffalo or western or northern New York are looking for our cider and can’t get it. It’s hard to say how impactful shipping just within New York would be for us. I think the impact of direct shipping is much bigger when you go across the country than within the state because things are more local.” Graham speculates that the legislation might benefit businesses with a larger market presence or those already engaged in cider clubs with quarterly subscription services.
And while the new law does apply to meaderies, it seems like they won’t see the same bonuses as cideries and distilleries. According to Eric DeRise, co-owner of Salt Point Meadery, they’ve already been able to ship mead thanks to a winery license in place since 2017. Though Salt Point switched to a farm meadery license in 2020 for added benefits, federal regulations still classify mead under wine licensing. This allows them to ship to New York and 30 other states using Vinoshipper, a third-party service that helps manage the process.
However, DeRise notes that shipping mead hasn’t significantly boosted sales due to high shipping costs, which often discourage customers. “In my opinion, even from a customer standpoint, you can be excited about purchasing a bunch of mead or wine or whatever from your favorite place you can’t get to, but as you order it online, the shipping amount is a huge roadblock,” says DeRise. “A lot of people think it’s not worth it because shipping costs are up there. It doesn’t hurt to have the option, but I don’t think it makes a huge difference, at least with our experience.”
Still, the full impact of the new law remains to be seen, and direct shipping to consumers could change how craft beverages are marketed and sold, possibly leading to a more integrated industry. “We expect the bill to have a tremendous impact economically,” says Scott Ramsey, Executive Director of the New York Cider Association. “It’s hard to predict exactly what that number would look like. But we estimate it would have been a loss of around $20 billion to New York state tourism. The impact to agritourism alone that these industries have is huge. So we’re really excited about the opportunity and looking forward to seeing how it grows.”
