NYSLA Considers Brand Owner License

New York State is taking a meaningful step toward modernizing its alcohol beverage laws with Assembly Bill A6277A, which proposes the creation of a new Brand Owner’s License. For years, brand owners who lacked physical production facilities faced legal uncertainty when contracting with New York-based manufacturers. This bill aims to fix that.

What Is the Brand Owner’s License?

If enacted, A6277A would authorize the New York State Liquor Authority (“NYSLA”) to issue a Brand Owner’s License to individuals or entities that hold a federal basic permit—typically obtained from the Alcohol and Tobacco Tax and Trade Bureau (“TTB”). This license would give brand owners greater flexibility to, in summary:

• Contract with licensed New York manufacturers for the production and packaging of alcohol beverages;

• Appoint licensed New York wholesalers as exclusive agents to sell and deliver for the brand owner’s products; and

• Receive payments from wholesalers directly.

In short, it provides a much-needed regulatory framework for brand owners to operate in New York who engage third-party contract producers.

Why This Matters

This development is particularly significant for craft and emerging brands that often rely on co-packers, contract production, or custom crush relationships. Currently, New York’s Alcoholic Beverage Control Law does not provide a clear licensing pathway for brand owners operating under these business models.

The A3277A proposes to create legal clarity and reduce compliance risk for brand owners operating in New York State. Additionally, the fee proposed is a modest sum of $125.00, which is a win-win situation for brand owned companies and facilities offering contract production services. 

What the Bill Doesn’t Do

Importantly, this license would not allow a New York State brand owner to sell directly to retailers or consumers. It simply offers a mechanism to formalize brand ownership and contracting practices that are already widespread across the industry.

Current Status of the Bill

As of June 2025, A6277A passed the New York State Assembly with unanimous support (144–0) and is currently under review by the Senate Rules Committee. If approved by the Senate and signed into law, NYSLA would be tasked with issuing regulations to implement the new license category.

The introduction of the Brand Owner’s License reflects a growing understanding of how the alcohol beverage industry functions in today’s market. It offers a practical solution for companies who want to maintain ownership of a brand while contracting with local licensed producers. If your business model involves co-packing, alternating proprietorships, or outsourcing production, this bill could offer welcome relief—and a clear path to compliance in New York.

For more information on wine and alcohol laws, please contact Lindsey Zahn.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.