Craft Distillery Challenges New York’s Discriminatory Shipping Laws
April 16, 2025
Los Angeles, CA; April 16, 2025: An LA-based craft distillery is challenging a New York law that prevents it from shipping its products directly to customers in New York. Théron Regnier, founder of The Obscure Distillery, turned his passion for spirits and cocktails into a thriving business, managing to launch and grow the company during the height of the COVID-19 pandemic. The Obscure Distillery attracts over 30,000 visitors annually to its location in Los Angeles, many of whom are eager to ship spirits to their home state.
New Yorkers are unable to enjoy these spirits due to a recent state law that restricts out-of-state distilleries from competing fairly in the Empire State. The law permits in-state distilleries to ship spirits directly to New Yorkers, bypassing the traditional alcohol distribution system. In contrast, out-of-state distilleries can ship to New York consumers only if their home state offers reciprocal privileges. Because California does not offer New York distilleries reciprocal shipping privileges, The Obscure Distillery is unable to ship to consumers in NY.
“Laws that treat businesses differently based on location are discriminatory and unconstitutional,” said Jeff Jennings, attorney for Pacific Legal Foundation. “By allowing in-state distilleries privileges that out-of-state distilleries don’t have, New York has created an unfair trade barrier, violating the Constitution’s Commerce Clause.”
The Obscure Distillery has a special connection to New York. It produces a unique rye whiskey made with chestnut tree trimmings sourced from the American Chestnut Foundation’s New York chapter. In a commitment to support the charity’s mission, The Obscure donates 10% of the sales from this whiskey to the American Chestnut Foundation.
Represented at no charge by Pacific Legal Foundation, The Obscure Distillery is taking a stand against this discriminatory treatment. It has filed a federal lawsuit challenging New York’s laws that hinder out-of-state distilleries from competing on an equal footing with in-state counterparts. The outcome could have significant implications for the craft distilling industry, potentially paving the way for fairer regulations that support entrepreneurship and consumer choice across state lines.
The case is The Obscure Distillery v. Lily M. Fan.
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About Pacific Legal Foundation
Pacific Legal Foundation is a national nonprofit law firm that defends Americans threatened by government overreach and abuse. Since our founding in 1973, we challenge the government when it violates individual liberty and constitutional rights. With active cases in 34 states plus Washington, D.C., PLF represents clients in state and federal courts, with 18 wins of 20 cases litigated at the U.S. Supreme Court.