Middletown Brewery Part of Fast-Growing NY Industry

During the past year, 43 new farm breweries have opened their doors in New York State, bringing the state’s total number of operational farm breweries to 106, state officials said.

One of them is a Hudson Valley business: Clemson Bros. Brewery in Middletown, founded in a historic industrial building on Cottage Street and Railroad Avenue.

Clemson Bros. owners blend their love for craft beer with a love of small-town history. The company joins a new class of craft brewers that use New York grown ingredients and that was made possible by the the Farm Brewery Law.

Click here for a complete list of the new farm breweries established in New York since November 2014.

“New York’s thriving craft beverage industry continues to grow, create jobs and bolster local economies in every corner of this state,” Gov. Andrew Cuomo said in a prepared statement. “This administration has cut red tape and eased regulations that have helped these farm breweries expand while strengthening the state’s agriculture and tourism industries.”

According to the New York State Brewers Association, “The growth of farm brewing in New York State has been dramatic, however there are challenges ahead that must be addressed to ensure the future success.” One big one is enough farms growing and processing hops and barley -- which once was a huge part of New York agriculture. According to the law, the amount of local-grown ingredients rises steeply in the next 10 years:

• Until the end of 2018, at least 20% of the hops and 20% of all other ingredients must be grown in New York State.
• From January 1, 2019 to December 31, 2023, no less than 60% of the hops and 60% of all other ingredients must be grown in New York State.
• From January 1, 2024, no less than 90% of the hops and 90% of all other ingredients must be grown in New York State.

“When the farm brewing license was created, it was always our hope, that not only would many new breweries in New York State begin to buy local ingredients, but new businesses would be created to support our industry around the state,” said Paul Leone, Executive Director of the New York State Brewers Association. “Since 2013 we now have over 9 malt houses, thousands of acres of barley being planted every year, and the hops industry making a tremendous comeback to support not only our Farm Breweries, but all breweries in New York State. Without Governor Cuomo’s continued support, none of this would have been possible, and for that, we sincerely thank him.”

Aside from the 106 farm breweries, New York is now home to 133 micro-breweries, up from just 40 in 2011, and 39 restaurant breweries, up from 10 in 2011. Additionally, eight farm breweries have opened off-site branch stores, a practice which was also authorized under the governor’s law.

In April, Cuomo announced that New York’s growing craft beer industry accounts for 6,552 direct industry jobs, in addition to supporting another 4,814 jobs in related industries. It is also responsible for more than $2.9 billion in direct and indirect revenue within the state, and another $554 million in direct and indirect wages, making up a total economic impact of nearly $3.5 billion. Additionally, more than 3,000 jobs are supported by tourism related to the craft beer industry, representing $77 million in annual wages.

State officials say this rapid growth of the industry can be attributed to several recently implemented regulatory and legislative reforms:

• Eliminating fees: The farm brewery law included a provision to exempt small batches of beer from brand labeling fees, effective January 1, 2013. Since then, the State Liquor Authority has approved 6,659 no fee brand labels, providing $998,850 in savings for craft brewers. The Governor’s farm brewery law also protected a tax benefit for small brewers. Any brewery that produces 60 million or fewer gallons of beer is eligible for a refundable tax credit applied against New York State personal income and business taxes
• Providing tax relief: The 2015-16 New York State budget included Cuomo’s proposal to expand tax exemptions for tastings conducted by New York breweries, lowering costs for hundreds of craft producers and allowing them to better market their products and reinvest in their businesses. The tax credit went into effect on June 1, 2015.
• Raising production levels: The 2014 Craft Act raised the annual production cap for farm breweries and micro-breweries from 60,000 to 75,000 barrels, in addition to allowing all craft producers to conduct tastings and sell, by the bottle or glass, the beverages they manufacture without a separate license.
• Promoting and marketing craft beverages: At the Third Wine, Beer, Spirits and Cider Summit, Cuomo announced an investment of $5 million to renew the marketing and promotional commitment first launched in 2014. The State will commit $2 million in direct spending to promote the industry through tourism promotions and a targeted advertising campaign. Additionally, a $3 million grant program will match 20 percent of the industry’s contributions for the marketing and promotion of wine, beer, spirits and cider produced in New York State. Through the Governor’s Global NY Fund, another $5 million is reserved for zero percent interest loans of up to $50,000 to help the wine and beer industry develop export capacity.
• Funding research: The State will renovate the Winery and Enology Lab and the New York State Brewery & Analytics Lab at the New York State Food Venture Center at Geneva. A $3.5 million commitment was made to the Food Venture Center in addition to the $3.4 million that was committed in the previous budget.

Learn about Clemson Bros. Brewery beers, menu and events here.

PHOTO: Clemson Bros. Brewery Facebook page