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New York’s still-young craft distilling industry generates billions of dollars, study says - newyorkupstate.com

New York’s distilled spirits industry, a sort of younger sibling to the state’s established beer and wine industries, is growing fast and generating billions of dollars in economic impact for the state, a new study says.

The distilleries, combined with retailers, wholesalers and suppliers, create $4.4 billion in overall annual economic activity through June 2020, according to report conducted by John Dunham & Associates of New York City for the New York State Distillers Guild. Of that, $3.2 million “impacted New York state directly,” the report said.

The distilleries alone (without the sales and suppliers spinoff effect) generated $2.7 billion, which includes sales in their own tasting rooms. New York distilleries make a wide variety of products, from whiskey, gin and vodka, to cordials, liqueurs and even rum.

The number of distilleries jumped to 160 by June, a 60% increase from 2016, the Dunham report found. Those distilleries directly create about 1,350 full-time equivalent jobs, while the industry with its sales and hospitality spinoffs are responsible for more than 11,000 jobs.

“The study documents what members of our industry and communities have long known - New York State’s distilleries are important drivers of economic growth,” Brian Facquet, president of the distillers guild and founder of Do Good Spirits in Roscoe, Sullivan County, said in a statement. “Our distilleries are a powerhouse of economic potential. We are positively contributing to our economy by providing well-paying jobs for thousands of New Yorkers.”

The bulk of the report’s findings came before the Covid pandemic, or just as it was getting underway. The pandemic has affected distilleries, especially in the operation of their tasting rooms, which have faced restrictions similar to restaurants. And the closed or restricted bars and restaurants also purchased fewer distilled products during the pandemic.

“We are proud to have done our part, but with reduced tourism, closed restaurants and the inability to market our rising brands it has been the perfect storm for our small businesses,” Facquet said.

Also, many New York distilleries joined the effort to use their knowledge and resources to make hand sanitizer — often sold at cost — during the spring and summer.

Facquet noted some of the efforts the state made to assist distillers, including a waiver allowing them to ship to customers in-state (previously not allowed).

New York state’s modern distilling industry is relatively new, compared to the wine and beer sectors. Small, farm-based wineries started to take off in New York in the 1970s, while craft beer began its surge in the early 1990s. The state’s first small-batch standalone distillery, Tuthilltown Spirits in Ulster County, didn’t open until 2005.

Craft Beverage Comparison

Dunham & Associates has also conducted recent similar studies for the state’s wine and beer industries, providing some degree of comparison among the three sectors. All have seen tremendous growth since 2012, when the state began loosening regulations and providing incentives for the state’s craft beverage business.

The comparison is not perfect, because the studies were done in different years. But here are some key numbers (not including spinoff impact) from Dunham & Associates reports:

Distilleries (June 2019-June 2020)

Number: 160

Direct economic impact: $2.7 billion

Direct jobs: 1,350

Breweries (2018)

Number: 434

Direct economic impact: $3.5 billion

Direct jobs: 11,000

Wineries (2019)

Number: 470

Direct economic impact: $6.65 billion

Direct jobs: 80,000

Wineries (2017)

Number: 450

Direct economic impact: $5.5 billion

Direct jobs: 62,000

Related:

Distilleries in Central NY: Where to find local whiskey, vodka and more

New York’s best distilled spirits for 2020. The winners are ...

CNY radio DJ creates his own whiskey brand

Empire Rye: Could this be New York state’s signature distilled spirit?

Don Cazentre write for NYup.comsyracuse.com and The Post-Standard. Reach him at dcazentre@nyup.com, or follow him at NYup.com, on Twitter or Facebook.

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