NJBA Position Letter - 7/1/22 ABC Regulation
New Jersey’s craft brewing industry has experienced robust growth since the laws changed in 2012. In 2021, the state’s 140 breweries had a $1.8 billion economic impact employing over 2200 people producing >210,000 barrels of beer annually. Though New Jersey is the 11th most populous state in the country, we rank 16th in economic impact, 27th in barrels produced and 45th in breweries per capita. Compared to our two larger neighbors, Pennsylvania ranks #2 in all categories, and NY ranks 4th in economic impact and beer produced.
In May 2019, the Division of Alcoholic Beverage Control (the ABC) issued a Special Ruling that while containing several benefits for the manufacturers of craft beer, also placed significant restrictions on our industry. Effective July 1, 2022, the ABC added the terms of the Special Ruling as conditions on Limited Brewery license renewals for the 2022-2023 budget year. These restrictive regulations include;
• Limiting to twenty-five (25) annually the number of “events” a brewery may have. “Events”, however, are broadly defined to mean almost anything, and include things like any live amplified music (bands, DJ) and any other type of entertainment such as trivia, community-focused events, yoga, game nights, etc that are advertised outside the business property, including on social media, fall within this limitation. Some activities outlined in the Special Ruling are events, advertised or not.
• Requiring formal notification to the ABC a minimum of 10 days in advance of these “events”. • Limiting to fifty-two (52) the number of private events (birthday parties, fundraisers, etc.) a brewery may hold annually.
• Limiting the number and size of televisions breweries can have, and what they can display on them. Under these regulations, breweries are limited to no more than three televisions, not to exceed 65 inches.
• Breweries may display broadcast television, including sporting events, but not championship events unless reported as part of their 25 annual on-site event limit.
• Restrictions on providing customers access to food such as prohibiting the coordination of food trucks on brewery premises. In addition, there are limitations on what non-alcoholic beverages breweries may offer in our taprooms (i.e., no soda unless made on-site, no coffee…). This is contradictory to the safe alcohol training servers are required to have to work at a brewery.
As the industry representative to over 50 New Jersey craft beer manufacturers, the New Jersey Brewers Association (NJBA) represents a significant number of breweries in the state. The NJBA’s position is that these special conditions placed on our specific subset of the alcoholic beverage manufacturing industry are unfair in practice and extend beyond the ABC’s statutory authority. The ABC’s mission is to regulate and control the alcoholic beverage industry to foster moderation and responsibility in consumption of
alcoholic beverages, to protect the citizens of New Jersey by assuring lawful, proper, and fair-trade
practices to maintain the stability of the industry and protect the collection of state taxes imposed on alcoholic beverages. We believe that these regulations go beyond this scope and are anti-competitive and aimed at stifling innovation.
The ABC has communicated that these same restrictions will be imposed on other craft alcoholic beverage manufacturers in the not-too-distant future. The NJBA will continue working with the administration and our elected officials to achieve relief from these burdensome regulations for Limited Brewery licensees as well as our industry partners through executive and/or legislative action. For our industry to continue to grow, as it has in other states, and to meet the demonstrated consumer demand, we need for these restrictions that are completely unrelated to the sale or consumption of alcohol to be lifted.
For additional information:
NJBA Board of Directors – board@njbeer.org
NJBA Executive Director Nicholas Capezza – director@njbeer.org