A growing number of independent beverage brands in New York have wanted to produce their products closer to home, only to run into a licensing gap that made the arrangement more complicated than it needed to be. That gap has now closed. Governor Hochul signed S.567A/A.6277 into law on December 19, 2025, creating a new Brand Owner's License under the Alcoholic Beverage Control Law, and the change took effect immediately.
What the Law Changes
Before this law, a New York manufacturer producing a beverage on behalf of an independent, in-state brand had to take legal ownership of that brand in order to make the arrangement work under state rules. That requirement created real problems. It exposed manufacturers to financial risk they had not signed up for, complicated tax reporting for both sides, and added administrative burdens that discouraged otherwise promising partnerships.
Brand owners who wanted to keep control of their own product often looked outside New York for a manufacturer willing to work with them without that ownership transfer. The new Brand Owner's License, codified under ABC Law Section 61-c, removes the obstacle by giving brand owners a direct legal path to contract with New York manufacturers without giving up ownership of the brand.
Who Qualifies
Eligibility is straightforward. Any person or company holding a federal basic permit can apply to the State Liquor Authority for a Brand Owner's License. This covers businesses that own or develop a beverage brand but do not manufacture the product themselves, which describes a large share of the independent spirits, wine, and beer brands operating in New York today.
What the License Allows
Once issued, the Brand Owner's License authorizes the holder to do three things.
Contract with a licensed New York manufacturer to produce the brand's alcoholic beverages.
Appoint a licensed New York wholesaler as an exclusive brand agent to solicit, negotiate, and receive payment for sales to retail licensees, whether those sales are for on-premises or off-premises consumption.
Sell the product to that appointed wholesaler and receive payment directly.
In practice, this means a brand owner can now build a full in-state supply chain, from production through wholesale distribution, while remaining the legal owner of the brand at every step.
Why This Matters for Manufacturers and Wholesalers
The benefit runs in both directions. Manufacturers gain a clearer, lower-risk path to producing for outside brands, which opens up co-packing and contract production work that previously carried more legal weight than it should have. Wholesalers gain a defined role as exclusive brand agents, with a straightforward basis for soliciting and negotiating sales on the brand owner's behalf.
For the state, the change is designed to keep more production, and the economic activity that comes with it, inside New York rather than pushing brand owners toward manufacturers in other states.
Applying for the License
The State Liquor Authority has already published an application and instructions for the Brand Owner's License. The license runs for a three-year term, and the application requires the standard information the authority collects for wholesale and manufacturer-adjacent licenses, including applicant and trade name details, premises address, and contact information for the business itself rather than an attorney or representative.
Brand owners who were previously structuring workarounds, such as informal production agreements or out-of-state manufacturing relationships, should take a look at whether this new license changes the calculus. For many, it will simplify a relationship that used to require unnecessary legal engineering.
The Takeaway
New York's new Brand Owner's License gives independent alcohol brands a direct, ownership-preserving path to manufacture and distribute their products in-state, closing a gap that had pushed some production out of New York entirely. Brand owners, manufacturers, and wholesalers considering a partnership under this new framework should review how the license fits their specific business structure before applying.
If you have questions about your liquor license or want to get the process started, call or text 631-624-9007, or schedule a phone or video meeting at www.liquorappus.com.