NY Governor Cuomo Signs Franchise Reform Bill

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The New York State Brewers Association announced that Governor Cuomo signed legislation that will fundamentally change the nature of distribution agreements made between small brewers and wholesalers in New York State.  The bill will allow small brewers whose annual volume is less than 300,000 barrels of beer and whose sales to a wholesaler are 3% or less of a multi-brand beer wholesaler’s annual business, the right to terminate an agreement providing they pay the wholesaler fair market value, except when the termination is for “good cause.”

This legislation, combined with a recently signed small brewers tax credit bill, will enhance the ability of New York’s small brewers to remain competitive in the marketplace and continue to build and grow their businesses.

The New York Brewers Association states: “On behalf of all of New York’s more than 100 craft breweries, we would like to tip our pints to Governor Cuomo, Senate Majority Leader Dean Skelos and Speaker Sheldon Silver, in addition to our greatest member advocates in both houses, including State Senator Joseph A. Griffo and Assemblyman Anthony J. Brindisi. This was truly a bipartisan effort on the part of Albany to not only do what was fair, but also to do what is right for small business, and ultimately all New Yorkers stand to benefit.”

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