Proposed law threatens alcohol warehousing in New York

Depending on the industry, proper warehousing solutions can come with a number or challenges. While some would assume that all that is required here is a space to place things until you need them, it can actually be much more complex.

According to a recent article from the New York Daily News, there is a bill currently making its way through the New York state legislature that will have a major impact on many small- and medium-sized businesses in the alcohol sales market.

Pushed by Senate co-leader Jeff Klein, a Democrat representing the Bronx, the proposed law would increase prices for wholesalers by as much as $10 a case. On top of that, it would also require all spirits sold in the state to be warehoused within it as well for at least 24 hours before sale.

This is a problem for two reasons. First, any kind of increased cost per case has the potential to put smaller operations out of business because they will not be able to afford to keep enough inventory. The other is that to keep operational costs lower, many of these same companies warehouse all of their alcohol in New Jersey.

While a small handful of companies already have warehousing operating in New York, a number will suddenly find themselves scrambling to find an affordable option in the area that meets their needs.

An article from the The Metro spoke with Chris Missick, a winery owner in the Finger Lakes region. He said that his business may not be able to operate in the New York if the legislation passes. He added that this move is going to make things more expensive for consumers as businesses have to increase their prices to be able to meet the new cost of doing business.

He is even part of a new coalition of business owners that are lobbying against the bill with the properly called "Stop the Cork Tax" movement.

This is just one example of how the needs of a business can change dramatically when it comes to warehousing because of a change in the industry. With the help of an quality third party logistics and warehouse provider, any company can stay on top of sector changes and remain as effective as possible.