NY craft beer industry soars 59%
ALBANY – The craft beer industry in New York grew 59 percent between 2013 and 2014, as loosened regulations have led to a surge in new breweries, cideries and wineries, a report Thursday found.
The report, funded by the state Brewers Association and the New York Wine and Grape Foundation, showed that from 2012 to January 2015, the number of craft breweries more than doubled, from 95 to 207. The increase in breweries has led production to jump 54 percent, to 859,535 barrels last year.
"We have said time and time again that New York produces some of the best craft beverages anywhere, and this report backs up exactly why we are focusing on growing these breweries," Gov. Andrew Cuomo said in a statement.
Capitalizing on the national popularity of craft beers, New York in 2012 passed legislation that reduced licensing fees and provided other incentives to the spirits and beer industry, such as the ability to sell bottles when they are conducting tastings.
The report, authored by the Stonebridge Research Group, based in Napa, California, claimed that the craft beer industry accounts for 6,552 jobs in New York and has a $3.5 billion economic impact.
"We see growth year after year, and there's never been a more exciting time to be in this industry," Paul Leone of Webster, who is executive director of the New York State Brewers Association, said in a statement.
Mike Darling, who runs Crafty Ales and Lagers, 2 Exchange St., in Phelps, Ontario County, with his wife, Jennie, is happy to see so many new brewers.
"As long as the beer quality stays at a high level, then the more the merrier," he said.
"The more microbreweries that are out there, or more craft brewers that are out there, the more exposure craft beer gets, and hopefully that will lead to more craft beer drinkers," Darling said.
Andy Cook, co-owner of Swiftwater Brewing Co., 378 Mt. Hope Ave., said his business is "incredibly fun and rewarding."
"But it's a lot of work, and there are a lot of parts of the job that aren't nearly as fun that people might not initially think about," he said.
"One of my favorite sayings is: You can't start a wine trail by yourself, and we're kind of starting a brewery trail. It benefits my business if there are other breweries making great beer in the Rochester area," he said.
Cuomo has been bullish on the industry and started Taste NY to promote New York-made products. He's held several summits with industry leaders, and this year's budget expands tax exemptions for tastings by New York breweries. The credit goes into effect June 1.
In November, the state enacted the Craft New York Act, which lowered fees and increased the production cap for small breweries from 60,000 barrels to 75,000 barrels. There's also a $2 million grant program for marketing and promotions.
Ed Samchisen, owner of Horseheads Brewery outside Elmira, said one of the measures to allow breweries to sell pints of beer has benefited the industry.
"When you have a governor who backs you, it certainly helps," he said.
Kristen Lyons, owner of Binghamton Brewing Co. in Johnson City, opened eight months ago. She said the new state regulations made it easy to get into the business.
"It has been a very positive environment to start and grow," she said.
New York ranks third in the nation in wine production. The state also has the second-most distilleries in the country, and three of the top-producing 20 brewers are in New York.
Only California and Washington produce more grapes than New York annually.
Gregg Stacy, director of marketing for the Ithaca Beer Co., said the company is planning a 25,000-square-foot expansion and expects to grow 30 percent this year.
"All of us are just seeing great growth," Stacy said. "The craft category is huge. It's matured. I think a lot of consumers have now accepted craft beer as beer. It's not such a novelty anymore."
JSPECTOR@Gannett.com
Includes reporting by staff writer Bennett J. Loudon.
Growth in wineries, too
The beer industry isn't the only New York beverage sector seeing growth. There are now 400 New York wineries in 59 of the state's 62 counties, said Jim Trezise, president of the New York Wine and Grape Foundation.
"The growth rate has been explosive for the past four years," Trezise said, crediting Gov. Andrew Cuomo for his support of vintners.
The growth of the wine industry began in 1976, when there were only 14 wineries, when the Farm Winery Act was enacted, he said. That grew to 54 by 1985 when the New York Wine & Grape Foundation was created. By 2000, there were 125 wineries, and by 2010, there were 253.
Since 2011, when Andrew Cuomo became governor, 147 new wineries have opened, accelerating an already strong growth rate. Thirty-seven percent of all New York wineries have opened in the past four years, Trezise said, with more licenses pending at the New York State Liquor Authority.
— Mary Chao, staff writer