New Jersey has some of the most complex alcohol regulations in the country, some dating back to the days of prohibition. In addition to putting a damper on good fun, many of the laws are stifling New Jersey business.
Thankfully, the New Jersey legislature continues to make steps towards relaxing restrictions on small businesses that want to make and sell their own beer, wine, and spirits. In 2012, Gov. Chris Christie signed legislation relaxing the laws governing the Garden State’s microbreweries and brewpubs (restaurants that brew their own beer).
The law allows brewpubs to increase annual production from 3,000 barrels to 10,000 and distribute their product to liquor stores and restaurants through distributors. Previously, the beers could only be sold at the restaurant. With the grant of additional retail consumption licenses, a company can now operate as many as ten brewpubs in New Jersey.
Microbreweries also face less red tape. They can now provide samples of their beer both on and off site. The establishments are also permitted to sell beer as part of a brewery tour and offer a limited amount for customers to take home.
A bill to similarly relax the rules for micro-distillers of spirits like bourbon and whiskey is currently awaiting the Governor’s signature. The legislation creates a craft distillery license, which allows hard alcohol producers to manufacture up to 20,000 gallons of distilled alcoholic beverages. The license costs $938, compared to a plenary license fee of $12,500.
Under the bill, craft distilleries would also be allowed to sell products for consumption on and off the premises and offer samples to consumers who have toured the distillery. Like brewpubs, distillers could also sell and distribute their products to wholesalers and retailers.
New Jersey has a long tradition of winemaking, brewing, and distilling. On the colonial days, winemakers received recognition by the Royal Society of Arts. George Washington once asked for (and received) Laird & Co.’s secret recipe for applejack brandy. In the wake of prohibition, the industry has never fully recovered, while states like California, New York and Oregon have thrived.
However, with wineries, brew pubs and distilleries popping back up across the state, we could be in for a New Jersey renaissance.
Donald Scarinci is a managing partner at Lyndhurst, N.J. based law firm Scarinci Hollenbeck. He is also the editor of the Constitutional Law Reporter and Government and Law blogs.
