'Unreasonable' Microbrewery Rules Would Be Lifted Under New NJ Bills

NEW JERSEY — Lawmakers on both sides of the aisle introduced bills this week that would adjust New Jersey's restrictions on microbreweries. Efforts from lawmakers come in the midst of limitations for each business's on-site activities which put the businesses in peril, according to industry leaders.

New Jersey's Division of Alcohol Beverage Control (ABC) issued several restrictions July 1 to breweries that limit on-site events and require establishments to only let patrons consume their products on-site if they've taken a tour of the brewery. Read more: Microbreweries In Peril Due To New NJ Restrictions, Industry Says

The edict came amid a years-long battle between the microbrewery and bar/restaurant industries. New Jersey's microbrewery scene has quickly grown in recent years, and many have become community hubs every bit as much as bars. But limited-brewery licenses carry different privileges than those of bars or restaurants, and they often come at a cheaper price than what bars and restaurants pay for licenses to allow alcohol consumption on their premises.

A bipartisan group of state senators introduced legislation this week that would eliminate some of the ABC's restrictions on microbreweries. The bill would eliminate the agency's limits on the number on on-premises special and private events a brewery can hold in a calendar year. The ABC's edict limits breweries to 25 on-site events and 52 private parties per year.

The legislation also removes prohibitions that prevent breweries from collaborating with local food vendors and preclude the establishments from brewing and selling coffee on-site.

"New Jersey is home to a vibrant craft brewing sector and the state should be working to facilitate, rather than inhibit, its growth," said State Sen. Vin Gopal (D-11). "This legislation will provide a fairer regulatory framework for the state’s craft breweries and encourage collaboration between breweries and the state’s other homegrown producers."

Another bill from two Republican state senators would allow holder limited-brewery license holders to hold unlimited on-premises special events and up to 18 off-premises special events per year pursuant to a permit. The legislation would also eliminate the requirement that a customer must take a tour before consuming alcohol at a brewery.

Additionally, the Republican-sponsored bill would allow wineries to produce malt alcoholic beverages for retail sale to consumers for consumption off the licensed premises, while establishing a farm-brewery license that would allow a new licensee to also produce and sell those same alcoholic beverages.

"Small brewers across the state have made significant contributions to New Jersey’s economy, creating jobs, and helping revitalize downtown districts," said State Senate Republican Leader Steven Oroho (R-24). "Recent regulatory changes interfere with local-based brew pubs to attract customers and make money, and this bill would remove some of the new restrictions. Trenton should be helping small business, not crushing them with unreasonable rules."

According to the new regulations, repeat customers don't have to take a tour if they've gone on one in the past year. But they must complete one annually and the business must document that they did so. The new restrictions on breweries also include the following:

• No selling food or collaborating with a local food vendor. Microbreweries may provide menus from local restaurants, but they can't have an exclusive relationship with them. Microbreweries can only serve "de minimis" types of foods, such as nuts or packaged crackers.
• A microbrewery can only have two television screens — none larger than 65 inches. Businesses with more than two screens can only use the extras to display information about the brewery and its products.
• No happy-hour or specially priced drinks on-premises, no mixing specialty cocktails, and no brewing or selling coffee.

New Jersey had the nation's fastest-growing craft-beer scene from 2015-18, according to C&R Research. Within that span, New Jersey's craft-beer industry grew 43 percent, as craft breweries and microbreweries grew their presence within the state and around the nation.

The ABC originally tried to impose the new restrictions in September 2018 but suspended them a month later after an outcry from the industry.

The Brewers Guild of New Jersey — an industry group representing craft breweries and brewpubs — says the new restrictions hurt small businesses.

"Our guild remains hopeful that the Murphy Administration will recognize the need for reform in the wake of the pandemic to keep our local beer industry growing," Eric Orlando, the guild's executive director, said in late June. "We hope forthcoming regulations issued by NJABC ... utilize our recommendations for the good of the dozens of small businesses which make up the state's craft beer industry."