NEW YORK NEW YORK STATE DISTILLERS GUILD Leveraging Tourism To Drive Spirits Industry Growth in New York State New York continues to nurture the craft beverage industry by centering it within the tourism industry, and most recently by resourcing six new Cuisine Trails in the North Country of the state. The new network of trails will give exposure to and help draw the connection between farms and the foods and beverages they grow and produce. Reports show that 93 percent of travelers worldwide have sought out and found notable food and beverage experiences while traveling, aside from dining at local restaurants. The creation of New York’s Taste NY program, and of food, farm, and

NORTH CAROLINA DISTILLERS ASSOCIATION OF NORTH CAROLINA North Carolina continues to grow its community of craft distillers with the count now topping 80 distillers throughout the state. This growth brings both opportunity and challenges as new entrants to the market launch products in the NC state-controlled system (NCABCC). DANC continues to focus activity on building productive relations with the state control commission while advocating for better market access and a more industry-centric legislative environment for local producers. Q3 2018 saw significant change and attention focused on NCABCC including a

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beverage trails, ties tourism and the food industries together, letting them drive each other’s growth. Including distilleries in that context validates spirits as a part of a vibrant and complex local food culture. Since 2011, New York state has made unprecedented investments in the tourism industry throughout the state, resulting in historic levels of visitors and direct spending. Tourism is now the state's third largest employer, supporting 938,800 jobs annually. In that time frame, through an overhaul of New York’s Alcohol Beverage Control laws, the state has created an atmosphere where craft distilleries can thrive. The number of distilleries has increased over 1,050 percent in the past seven years, from 10 in 2010 to more than 145 today. In addition to the direct creation of new jobs in distilleries and increased tax revenues for the state, this staggering growth has an indirect effect on the growth and viability of small grain and

fruit farms. It gives a lift to allied industries contributing to the production, packaging and distribution of spirits, and helps define New York state as a leader in craft distillation. The Cuisine Trail designation includes a combination of agricultural producers and retailers. Members are chosen by the organization that applies for Cuisine Trail designation and must be in relatively close proximity, sell in a cooperative manner and offer a complementary variety of unique or hard-to-find fresh farm and food products. The six new Cuisine Trails include dozens of production and retail locations selling farmbased New York spirits for on- or off-premise enjoyment. For more information on the cuisine trails in New York state, visit the Taste NY website:

highly publicized audit of the state-controlled distribution warehouse system, the departure and replacement of the NCABCC Administrator, and a recent push towards privatization from a vocal and connected consortium of free market advocates. Each of these issues impacts NC distillers in real and meaningful ways. As such, DANC leadership has spent much time in Raleigh over the past several months meeting with NCABCC to help draft new rules for recently passed legislation and advocating for craft distillers on each of these issues. Examples of issues addressed by DANC at the state level include new product listing procedures, state warehouse stock and inventory control guidelines, and the adoption of new operational rules for the commission and ALE that are favorable to NC based craft distillers while maintaining the public health and safety mandate of NCABCC.

DANC has successfully represented the interests of craft distillers in NC this year while building better lines of communication and more trusting relationships with the NCABCC and the coalition of local ABC boards. These stronger relationships have opened new lines of discussion and greater cooperation between distillers and regulators, which ultimately benefits the growth and success of craft distilling in NC. DANC leadership will continue this course in 2019 with an ambitious legislative agenda that includes both NC state issues and an increased commitment to throw the support of NC distillers behind the fight to maintain and make permanent the FET reduction so important to the success of our industry.

www.taste.ny.gov Jennifer Smith NYSDG Admin

Pete Barger DANC President

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