A beer with your movie? Cuomo proposal would let more theaters sell alcohol

Alcohol may soon be a coming attraction at more movie theaters across the state thanks to a bevy of new craft beverage-related proposals Gov. Andrew M. Cuomo plans to announce during his annual State of the State address Wednesday.

In a Friday announcement, Cuomo said he would propose three new measures that would help the growing craft manufacturing industry by reforming Prohibition-era laws, removing hurdles to the sale of alcohol at movie theaters, and modernizing existing laws to help educational institutions train new craft beverage workers.

"New York's craft beverage industry is flourishing thanks to eight years of targeted investments and forward-thinking policies that are attracting new businesses and supporting our booming tourism industry," Cuomo said in a statement.

Long Island was home to 137 craft manufacturers of wine, beer, spirits and hard cider in 2019, up from 79 manufacturers in 2012. The Island ranks third among regions in the state for the most craft beverage makers, according to figures from the New York State Liquor Authority.

Current state law requires that movie theaters have full kitchens and tables inside screening rooms in order to sell alcohol. Cuomo’s proposal, which is meant to help theaters generate more revenue, would remove those requirements and allow adult ticket holders to PG-13 movies or above to purchase one drink per person at a time.

The governor said the proposal will “give more New Yorkers the opportunity to responsibly enjoy a drink at the movies." 

“I would love to see this go through,” said Jay Levinson, who owns the Elwood Quad theater in East Northport and the Bellmore Playhouse in Bellmore. The Bellmore theater already sells alcohol. Levinson said the profitability of liquor sales and the high costs of building a full kitchen make the proposal good news for smaller theater owners.

“It will help the independents,” Levinson said Monday. “The big boys are already doing it.”

In addition to that measure and one aimed at creating a postsecondary license so educational institutions can train students to produce alcoholic beverages and sell those products under one license, the governor is also set to propose changes that could make it easier to invest in craft beverage manufacturers by loosening a restriction that dates back to Prohibition days.

The state’s Tied House Law, a provision of the Alcoholic Beverage Control Law that dates to 1933, prohibits business owners that hold a financial stake in retail outfits that sell alcohol, such as restaurants, bars or liquor stores, from also holding an interest in either a manufacturer or wholesaler of alcohol.  

In 2014, the owners of Italian market Eataly in Manhattan were ordered to temporarily close their wine store and pay a $500,000 fine to the New York State Liquor Authority because of the market’s connection to a wine production and importing business in the Friuli region of Italy.

Paul Leone, executive director of the New York State Brewers Association, a Rochester-based industry trade and lobbying group, said those restrictions, which are stricter and less flexible than similar federal rules, make it harder for craft startups to find investment opportunities.

“There are a lot of restrictions that back in 1933 made sense that no longer make sense in 2020,” Leone said. “Now, there’s going to be flexibility where there was not before … this will help brewers find investors that have investments in other tiers” of the alcohol industry.