Schumer Convenes Small Business Leaders to Address Supply Chain Challenges Facing Finger Lakes Craft Beverage Industry

Schumer Says Tariff Costs, Shifting Consumer Trends, And Distribution Disruptions Threaten Upstate New York’s Craft Beverage Industry Senator Backs New York Wine & Grape Foundation’s $500,000 SBA Proposal To Strengthen Supply Chain Resilience Schumer: Support Upstate New York’s Craft Beverage Industry U.S. Senator Chuck Schumer earlier this week convened leaders from craft breweries, wineries, distilleries, and other industries at the Schuyler County Business Park to discuss the growing challenges facing the industry, including changing consumption trends, rising costs from tariffs, and distribution disruptions that are all straining the supply chain. Schumer emphasized that these pressures are hitting small- and mid-sized producers particularly hard and could have a significant impact on rural communities across Upstate New York that rely on craft beverage businesses to support farms, tourism, and restaurants. “New York’s craft breweries, wineries, and distilleries are a cornerstone of Upstate’s economy, and I have fought for years to help these small businesses grow and reach new markets. Today, costs from unwise tariffs, changing consumer trends, and major logistical disruptions are making doing business even harder and putting that progress at risk. That’s why I’m backing the New York Wine & Grape Foundation’s collaborative effort to strengthen our regional supply chain and help producers weather and overcome these challenges,” said Senator Schumer. “New York’s craft beverage industry has been brewing success for years, especially in the Finger Lakes, and we’re not going to let these challenges knock it flat. I’ll keep fighting to make sure Upstate New York’s craft beverage businesses have the federal support they need to navigate these challenges and continue to strengthen local economies.” New York’s craft beverage industry has consistently grown in recent years. According to the New York State Brewers Association (NYSBA), the number of breweries in New York grew from 95 in 2012 to more than 500 in 2024. New York is now the nation’s second-largest craft beer market, with an estimated $4.8 billion economic impact, while annual craft brewery production increased from 557,436 barrels in 2011 to 1,434,992 barrels in 2023. New York is also the third-largest wine-producing state in the nation, behind only California and Washington. New York’s wine and grape industries are a major economic engine as well. According to the New York Wine & Grape Foundation’s latest annual report , the state’s wine and grape industries have directly generated more than $16.81 billion in direct economic impact. Nigar Hale, Executive Director of The Watkins Glenn Area Chamber of Commerce, said, “ Craft beverage is woven into the fabric of our rural economy, supporting local farms, tourism, restaurants, and small businesses. We’re facing real challenges, particularly within the distribution side of the supply chain. I appreciate that the Senator took the time to seek out our perspective and listen to the challenges we’re facing firsthand. It was a valuable opportunity to continue the dialogue and work toward solutions.” Ian Conboy, Lucky Hare Brewing Company, said , “New York’s craft breweries are manufacturers, employers, tourism destinations, and important parts of our communities. Rising costs for aluminum, ingredients, and equipment continue to put pressure on small independent breweries. We appreciate Senator Schumer listening to New York brewers and working to ensure federal policy supports American manufacturers and keeps our industry strong.” Rick Rainey, Forge Cellars, said, “ The New York wine industry has a substantial economic impact for the state of New York and all of the residents. Senator Schumer’s efforts to help bring more New York wine to more New Yorkers is a big win-win for our state and can have far reaching positive impact. #NYdrinksNY” Schumer said the industry is facing continued uncertainty from counterproductive U.S. tariffs that raise the cost of cans, packaging, equipment, and other inputs for New York craft producers. The latest threat of additional 50% tariffs on Canadian imports has created additional uncertainty, raising costs and making it harder for businesses to plan ahead. Schumer has long worked with local vineyards and the New York Wine & Grape Foundation to increase export access to Canada, including Ontario’s Liquor Control Board of Ontario (LCBO), one of the largest single wine buyers in the world. Historically, his work helped Finger Lakes wines reach LCBO shelves in recent years, unlocking an important market for New York producers. In part, thanks to Schumer’s efforts, Canada had become the largest market for American wine outside the U.S., making continued access to Canadian consumers especially important for New York’s wine industry. However, in response to the Trump administration’s reckless tariffs in 2025, Canada imposed retaliatory measures, causing Canadian imports of U.S. alcoholic beverages to plummet by approximately $581 million, or 81 percent, in a one year period compared to a similar period the year prior. “Instead of focusing our energy on outcompeting rivals like China, the Trump administration has unwisely chosen to pick a damaging and cost-spiking tariff fight with our closest ally and biggest trading partner, Canada. And that is deeply damaging to this industry and to the Upstate economy in general, which borders Canada,” said Senator Schumer . At the same time, changing national consumption patterns are creating new challenges for New York’s wine industry, requiring local growers and producers to adapt to a changing marketplace and face increased competition. Schumer said higher costs, downturns in consumption, and the loss of access to much of the Canadian market have major regional consequences on the craft beverage industry. These challenges have been further compounded by four logistics disruptions in the past six months. In March 2026, the closure of DNT Express, a Clyde-based freight forwarder that served Finger Lakes wineries, eliminated a critical logistics provider. In May, Manhattan Beer & Beverage acquired the Opici Wine Distributor’s New York portfolio, affecting Finger Lakes wineries and creating another major distribution transition. In July, national beverage distributor RNDC filed for Chapter 11 bankruptcy, adding further uncertainty to an already strained distribution system. Lastly, the closure of the historic Pleasant Valley Wine Company eliminated another important regional storage and distribution resource. Together, these disruptions have left producers scrambling for reliable freight forwarding, cold storage, and distribution capacity. To help address these challenges, Schumer announced his support for the New York Wine & Grape Foundation’s application for $500,000 through the U.S. Small Business Administration’s Supply Chain Acceleration and Logistics Enablement (SCALE) Program to support the marketing research, business modeling, governance, financial analysis, and legal planning needed to evaluate a multi-beverage logistics cooperative serving New York’s wine, beer, spirits and cider producers. A cooperative could help restore reliable storage and shipping capacity, expand market access, and strengthen supply chain resilience. Schumer said the Schuyler County Business Park underscores the importance of strategic federal investment in Upstate communities, with the park serving as a platform for economic development in the Southern Tier, including the growth of the region’s craft beverage industry, such as Lucky Hare Brewing Company. Schumer previously visited the business park in 2023 to promote the bipartisan ONSHORE Act, which sought to strengthen industrial sites, infrastructure, and workforce development so rural communities can attract businesses and critical supply chains. Schumer’s letter to the Administrator of the U.S. Small Business Administration, Kelly Loeffler, can be found HERE or below: Dear Administrator Loeffler, I am pleased to write in strong support of the New York Wine & Grape Foundation’s application for $500,000 through the U.S. Small Business Administration’s Supply Chain Acceleration and Logistics Enablement (SCALE) Program. This funding will enable the Foundation to conduct a comprehensive feasibility study for a producer-owned logistics cooperative serving New York’s wine, beer, spirits, and cider producers. Established by New York State in 1985 as an economic development entity, the New York Wine & Grape Foundation has the statewide industry, relationships, authority, and technical capacity necessary to coordinate this effort. New York’s craft beverage producers – particularly small and mid-sized businesses in the Finger Lakes and other rural communities across Upstate New York – have been hit by overlapping losses in freight-forwarding, cold-storage, and distribution capacity. The foundation has brought craft beverage associations together around a collaborative response and is well-positioned to develop a durable solution that strengthens market access and supply-chain resilience. If awarded, the foundation will complete the marketing research, business modeling, governance design, financial analysis, and legal planning needed to evaluate and establish a multi-beverage logistics cooperative. A successful cooperative would restore reliable storage and shipping capacity, expand access to markets, and help New York producers across the industry remain competitive. For additional information, please do not hesitate to contact me or my Grants Director, Kaia Moore, in my Washington office at grants@schumer.senate.gov . Thank you for your consideration. ###