U.S. Sen. Chuck Schumer is backing a $500,000 federal grant request to study a producer-owned logistics cooperative for New York State wineries, breweries, distilleries and cider makers after a series of distribution disruptions strained Finger Lakes businesses.
Schumer announced his support after meeting industry leaders this week at the Schuyler County Business Park. The New York Wine & Grape Foundation is seeking the money through the U.S. Small Business Administration's Supply Chain Acceleration and Logistics Enablement Program.
The proposed feasibility study would cover market research, business modeling, governance design, financial analysis and legal planning for a multi-beverage cooperative. Supporters say a cooperative could restore storage and shipping capacity, improve market access and make the regional supply chain more resilient.
Four disruptions strain distribution
Schumer's office identified four logistics disruptions during the past six months. DNT Express, a Clyde freight forwarder used by Finger Lakes wineries, closed in March. Manhattan Beer & Beverage acquired Opici Wine Distributor's New York portfolio in May, and national distributor RNDC filed for Chapter 11 bankruptcy in July.
The closing of Pleasant Valley Wine Company also removed a regional storage and distribution resource. Schumer's office said the combined changes left producers searching for freight forwarding, cold storage and distribution capacity.
Watkins Glen Area Chamber of Commerce Executive Director Nigar Hale said the craft beverage sector supports farms, tourism, restaurants and other rural businesses, while distribution problems are creating practical challenges. Ian Conboy of Lucky Hare Brewing Company said higher prices for aluminum, ingredients and equipment are adding pressure for small independent breweries.
Tariffs and changing demand add pressure
Schumer also blamed U.S. tariffs and possible additional tariffs on Canadian imports for raising costs and making planning more difficult. His office said retaliatory measures by Canada contributed to a roughly $581 million, or 81%, year-over-year decline in Canadian imports of U.S. alcoholic beverages during the period it cited.
The senator said changes in alcohol consumption and reduced access to Canadian buyers are compounding the cost and distribution problems. Canada had become the largest foreign market for American wine, according to his office.
New York had more than 500 breweries in 2024, up from 95 in 2012, according to the New York State Brewers Association. Schumer's office cited an estimated $4.8 billion economic impact from craft beer and said annual brewery production rose from 557,436 barrels in 2011 to 1.43 million barrels in 2023.
New York ranks third nationally in wine production, and the New York Wine & Grape Foundation has estimated that the state's wine and grape industries generate more than $16.81 billion in direct economic impact.
Schumer sent SBA Administrator Kelly Loeffler a letter supporting the foundation's application. The release did not give a timetable for an award decision.
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