Joseph Spector

Albany Bureau Chief

ALBANY – The state will cut some regulations on craft beverage producers and start a $2 million marketing fund to promote New York-based craft beers, cider and spirits.

Gov. Andrew Cuomo said Thursday that he's signed legislation to end some requirements on producers and ease restrictions on the marketing of craft products. He said the state will start the $2 million "Craft Beverage Marketing and Promotion Grant Program," as well as a $1 million "Craft Beverage Industry Tourism Promotion Grant."

Cuomo has been seeking to find ways to boost the industry, which has grown rapidly in recent years. Since 2011, 220 farm-based businesses have opened in New York, including 101 new wineries, 62 breweries, 49 distilleries, and eight cideries, he said.

"This new law builds upon this administration's ongoing efforts to promote this industry by cutting red tape, reducing burdensome regulations and removing artificial barriers that stifled growth," Cuomo said in a statement.

The Craft New York Act, which was passed by the state Legislature during the session that ended in June, will take effect in 30 days. The bill allows producers to conduct tastings and serve "by the bottle" and "by the glass"; permits farm distilleries to increase the retail outlets where they can sell and offer samples of their products; and lowers the food requirement that must be met by manufacturers when offering tastings and consumption on premises.

It also reduces the costs for small manufacturers by increasing the production cap and permitting the development of more products without increasing fees.

The $2 million grant program will provide matching funds for the marketing and promotion of craft beverages, including up to $500,000 to not-for-profit organizations. The $1 million tourism grant will help local groups attract visitors through state programs, such as the "I Love NY" campaign.

JSPECTOR@Gannett.com

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