My name is Nate Zacek and I represent Marshall and Sterling Insurance, based in Poughkeepsie, NY. I have a long family history of brewers, bar-owners, and otherwise-related beer involvement. I grow my own hops and I brew my own beer; in other words, I take this seriously! My parents ran a small bar in a rural town north of Utica, NY, and I ran my own small business for a number of years. Now I am in the insurance industry and my love for all things craft beer has led me to develop a program at Marshall and Sterling Insurance that focuses on craft brewing. My interest in the burgeoning beer industry is varied: - I want to see New York return to its rightful place at the head of the pack in hops production; - I love the farm-to-pint concept of brew farms and I think we all need to find ways of supporting our local businesses that have this mentality; - I want to see anyone whose dream it is to open their own brewery thrive in New York; - I want to celebrate alongside all of the entrepreneurs whose dreams have turned into newfound economic success for our state; and - I want our culture to wholly accept that craft beers are just that: a craft. Let’s understand that beer is no different from wine in that it has sophistication, complexity, and myriad culinary applications. It seems that every few weeks I read in the Poughkeepsie Journal of another new brewery opening in New York. I’m thrilled because it means that much of the untapped (pun intended) potential of this industry is beginning to see the light of day. Unfortunately, I also read a number of stories, both locally and nationally, about people who undertake a new brewery operation without understanding the inherent risks. OSHA has found a disproportionate number of accidents occurring at craft breweries relative to the huge brewing companies. There are right ways and wrong ways to do things and, as Gary Fish of Deschutes Brewery in Bend, Oregon said, “Haste causes accidents, and pressure to meet demand causes haste.” My job is to protect the operations of craft brewers so that they can keep doing what they love: brewing the best beers available. Throughout my series of blogs, I intend to discuss some of the most important issues facing craft brewers and how the large number of accidents can be avoided. After all, avoidance is the best form of insurance. For now, thank you for welcoming me to NYSBA and I look forward to meeting all of the members (and trying each of your beers)!
As you probably know, new legislation allows craft brewers to serve beer for consumption on-premises in quantities larger than just the typical 2-ounce tasting glass.
“It comes in pints!?”
The only caveat is that food has to be offered along with the beers. I’m pretty excited about this new law and I’ve been reviewing it as it pertains to insurance. Here’s an important piece and I highlighted a few things:
Section 1. Section 51 of the alcoholic beverage control law is amended by adding a new subdivision 3-a to read as follows:
3 3-A. A LICENSED BREWER MAY AT THE LICENSED PREMISES CONDUCT TASTINGS OF, AND SELL AT RETAIL FOR CONSUMPTION ON OR OFF THE LICENSED PREMISES, ANY BEER MANUFACTURED BY THE LICENSEE OR ANY NEW YORK STATE LABELED BEER. PROVIDED, HOWEVER, THAT FOR TASTINGS AND SALES FOR ON-PREMISES CONSUMPTION, THE LICENSEE SHALL REGULARLY KEEP FOOD AVAILABLE FOR SALE OR SERVICE TO ITS RETAIL CUSTOMERS FOR CONSUMPTION ON THE PREMISES. A LICENSEE PROVIDING THE FOLLOWING SHALL BE DEEMED IN COMPLIANCE WITH THIS PROVISION: (I) SANDWICHES, SOUPS OR OTHER SUCH FOODS, WHETHER FRESH, PROCESSED, PRE-COOKED OR FROZEN; AND/OR (II) FOOD ITEMS INTENDED TO COMPLEMENT THE TASTING OF ALCOHOLIC BEVERAGES, WHICH SHALL MEAN A DIVERSIFIED SELECTION OF FOOD THAT IS ORDINARILY CONSUMED WITHOUT THE USE OF TABLEWARE AND CAN BE CONVENIENTLY CONSUMED WHILE STANDING OR WALKING, INCLUDING BUT NOT LIMITED TO: CHEESES, FRUITS, VEGETABLES, CHOCOLATES, BREADS, MUSTARDS AND CRACKERS. ALL OF THE PROVISIONS OF THIS CHAPTER RELATIVE TO LICENSES TO SELL BEER AT RETAIL FOR CONSUMPTION ON AND OFF THE PREMISES SHALL APPLY SO FAR AS APPLICABLE TO SUCH LICENSEE.
In other words, you have to sell (or give away) food with the beers consumed on or off premises. Based on the wording of it (“including but not limited to cheeses, fruits, vegetables, chocolates, breads, mustards and crackers”) you could probably put out a bowl of pretzels and call it a day; but, having met a number of brewers and knowing how creative they are, I suspect they have something way more awesome than pretzels in mind! However, if you want to keep costs down, companies like Snyder’s may have free pretzels to put out for your customers – it’s definitely worth a phone call to find out.
I’ve spoken to a number of my underwriters and I’ve gotten back similar responses from most: if the nature of the business is changed from just brewery to food and brewery, the classification of the business may be changed from brewery to brew pub. While the nature of the business will not drastically change, there are some potential coverage differences between these two classifications and it is important to be sure that coverage matches exposures. Brewers, if you are adding a food element to your business, be sure to inform your insurance advisor so that you are protected in the event of a loss.
The full text of the law can be found here: http://assembly.state.ny.us/leg/?default_fld=&bn=S07813&term=2013&Summary=Y&Memo=Y&Text=Y
Happy brewing to all of you and, as always, Cheers!
