By Chris Rotolo and Greg Scharen
RED BANK – Red Tank Brewing owner John Arcara said he was in a rage Monday, scrambling to navigate a government website in hopes of salvaging a fundraising event scheduled for this weekend.
“We’ve had a charity event scheduled for our local partners Lunch Break and the United Methodist Church, and because the event happens to have bands playing we’re forced to register it on this site. And it’s not the most user-friendly system. We might have to cancel,” Arcara said.
The new registry is part of a special May 28 ruling by the New Jersey Division of Alcoholic Beverage Control (NJABC) which, among other regulations, has defined what constitutes an “event,” and limits holders of limited brewery licenses to just 25 “on-premise special events” annually.
The regulation states that if an event is at all advertised, even by a third party, it requires a 10-day notice to the state government, as well as notification to municipal clerks and is subject to approval by municipal law enforcement.
The ruling also limits the amplification of live music and defines any such activity as an “on-premise event.”
Additionally, microbrewery operations are now limited to 52 private events, such as birthday parties, post-graduation outings and wedding receptions, per calendar year.
Arcara said Red Tank, a fledgling brewing project that opened its doors on Monmouth Street eight months ago, has made its living on social events, regularly hosting weekly trivia and game nights, open mic events and live music performances.
In May alone, Red Tank hosted 18 events that under the new regulations would count toward the brewery’s allotted 25 events.
Arcara said the impact of these regulations could be devastating to new breweries and a stumbling block for the likes of proposed Red Bank breweries Ross Brewing – which is expected to set up shop in the Liberty Hose Company firehouse on White Street – and another unnamed brewing enterprise planned for the ground floor of a mixed-use development at the former Fameabilia location on Monmouth Street.
“Starting now, we’ll have to close down two nights a week. Today I had to lay off a number of our staff members. Any new brewery depends on its tap room for immediate revenue to sustain, so we don’t have to reinvest out of pocket. We’re not yet distributed regionally or nationally. We’re not in enough bars and restaurants. These events bring people to our room and they’re buying our product. Events are responsible for 100 percent of our revenue right now,” Arcara said.
The regulations are not just limited to the on-site brewing operations. Though patrons are permitted to bring food with them or order food to be delivered to a brewery, the license holder is barred from partnering with local eateries, vendors or food trucks on promotional sales. The prohibition also extends to nonalcoholic beverages.
Breweries are also limited to participation in just 12 off-premise events annually, including civic or community happenings.
Jeff Benfer of the Keansburg-based Raritan Bay Brewing said there were a few positive takeaways from the ruling.
“We now have a clarification on tours,” said Benfer, referring to the state law that requires first-time patrons of a microbrewery to take a tour of the facility. The regulations implemented last month include a provision that repeat consumers only require one annual tour.
However, the provision also requires that records of each consumer are kept, an arduous clerical task Benfer said could create headaches.
“Even the positives have negatives,” Benfer said.
According to Benfer, Raritan Bay’s business model is not one that relies on events.
Since the Church Street brewery was established in 2017, it has only held events once a week during the summer season when weather permits activity in its outdoor patio. But Raritan Bay is not coming away completely unscathed.
Traditionally, once a month, the brewery would host a cigar night, in which a local cigar vendor would sell its product to enthusiasts.
“Under the new law that type of activity is banned, along with all pop-up shops. But at the same time, if there’s an event with no advertising, it’s fine. It feels odd to me. It feels as if the law is an infringement against free speech, but I’m not a lawyer,” Benfer said.
The regulations were first proposed in October 2018, but after pushback from New Jersey breweries, the ruling was tabled.
Since its implementation last month, breweries across the state have banded together to circulate a petition they hope will prompt legislators to consider the following:
- On-premise events without a permit requirement or arbitrary limits;
- Permitting process for off-premise events;
- Protection of the right for limited breweries to self-distribute;
- Protection for small breweries from predatory distribution contracts;
- Removal of the archaic tour requirement;
- Removal of the restrictions on manufacturing nonalcoholic beverages such as coffee;
- On-site sale of prepackaged food, including soda not manufactured on premises;
- Allowing for menus in breweries and local food trucks to work with breweries;
- Allowing for private parties to be held at breweries without arbitrary limits.
For more information and to view the petition visit savenjbeer.org.
