Promotional products sales in New York are already the highest among all states in the Northeast – and fifth overall in the nation, ASI Media’s 2023 State & Regional Sales Report shows.

Now, just-passed legislation may inspire further growth of branded merchandise sales within the adult beverage industry in the Empire State.

This week, Gov. Kathy Hochul signed a package of legislation that strives to modernize New York’s liquor laws – a move aimed at making it easier for breweries, distilleries and stores that retail adult beverages to grow and thrive.

One bill that became law with Hochul’s signature, S3567A, is especially relevant for promo, as it allows retail stores to provide gift and promotional items related to wine and spirit sales.

The legislation states that the gifts should be complementary and directly associated with the sale of wine or distilled spirits they’re promoting. These can include items “imprinted with the wine or spirts brand logo on the gift or promotional item,” the law states. It can also include items that are part of a manufactured pre-sealed package with the wine or distilled spirt that’s being gifted or promoted.

There appears to be a few caveats, though. The promo items must, by the legislation, be “de minimis in value,” not costing more than $15 in total. The promotional items also may not include food, a non-alcoholic beverage, or “drink or food mix.”

$935 Million Promotional products sales in New York in 2022, a 4% increase over the prior year. (ASI Media’s 2023 State & Regional Sales Report)

Even within those parameters, some promo pros with Empire State connections see ample opportunity opening up from the legislation. Phil Yawman, president of Cooley Group (asi/168125), a distributorship with offices around New York state, is among the optimistic.

“Cooley Group has numerous clients across New York in the wine and craft brewery markets,” Yawman told ASI Media.  “We provide a wide variety of promotional products and apparel to them and it’s a successful market niche for us. This announcement should help our clients to continue to flourish and succeed. The changes in the law will expand our opportunity to continue to deliver customized and unique solutions to customers that are continuing to invest in their brand and clientele.”

Joseph Sommer, president of Whitestone Branding (asi/359741), a distributorship founded in New York City with a workforce around the U.S., thinks the legislation will open the door for wine and liquor brands to have more in-store visibility with consumers.

“I think for brands to be successful, they'll have to create and distribute different point-of-purchase displays,” he told ASI Media. “It'll be interesting to see how brands capitalize on this.”

Beyond the legislation directly related to logoed gifts and promotions, the new alcohol-related rules that Hochul made official could further spur growth in New York’s adult beverage industry. And where more money goes, so goes more sales opportunities for promo distributors.

The legislative measures will: allow for the sale of beer, mead, braggot and cider on any day of the week, including Sundays; permit liquor and wine stores to expand their Sunday hours so that they may open at 10 a.m. and close at 10 p.m.; extend the length of validity of a brewer’s license from one year to three years; enable businesses to prepare and keep drinks containing alcohol in pressurized dispensing machines; and add parcels of land to the list of premises which are exempt from the provisions of law which generally restrict manufacturers/wholesalers and retailers from sharing an interest in a liquor license.

“We applaud the continued efforts by our governor and the legislature to help small businesses succeed and protect public safety by addressing antiquated liquor laws,” said Lily M. Fan, chair of the New York State Liquor Authority. “With this legislative package, our licensed businesses will grow economically and face less governmental burden and legislative restraint.”