By Stephen Appezzato
Small breweries across the state may see some beneficial changes to the way they are legally required do business.
Earlier this month, three bipartisan-sponsored bills were introduced to the state legislature aimed at easing recently placed restrictions on limited licensed breweries – those that possess restricted liquor licenses. Primarily sponsored by state Sens. Vin Gopal (D-11), Linda Greenstein (D-14) and Michael Testa (R-1), the proposed bills – S2990, S3038 and S3042 – would establish privileges for limited licensed breweries, allow limited licensed breweries to hold more events and collaborate with food vendors, and establish special farm brewery and winery brewery licenses with fewer restrictions, respectively.
“New Jersey is home to a vibrant craft brewing sector and the state should be working to facilitate, rather than inhibit, its growth,” Gopal said in a release. “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.”
Currently, the New Jersey Division of Alcohol Beverage Control (NJABC) differentiates between standard liquor licenses and limited brewery licenses. The latter, while costing significantly less, places an array of restrictions on its holders, including limits on the number of on-site events a brewery can hold in a year. That type of license also prohibits selling coffee on brewery premises, restricts collaboration with food vendors, and prohibits offering happy hour pricing or distributing free drinks to customers.
In 2012 the state saw a revolution in alcoholic beverage production with the introduction of limited licensing. The number of small breweries rapidly increased as licensing costs decreased. But in 2018, the NJABC introduced restrictions on limited licensed breweries in a reinterpretation of the 2012 permissions. Those actions were quickly suspended following a large backlash from small breweries across the state. After months of reconsideration, the NJABC issued an official ruling in 2019, codifying restrictions on limited licensed breweries.
The reasoning? Limited licensed brewers were never meant to have the same privileges as businesses with full liquor licenses, the NJABC said.
“We believe the activities permitted under this Special Ruling strike a fair and appropriate balance between the interests of full retail license holders, such as restaurants and bars, and the craft brewing industry,” said NJABC director James Graziano at the time. Those restrictions took effect July 1.
The recently proposed legislation strikes back at that 2019 ruling, attempting to ease many of the restrictions imposed on limited licensees.
“My colleagues and I are making great efforts to get this legislation across the finish line as quickly as possible and alleviate the unfair and unjust burden placed on our brewery owners, staff, and patrons,” said Greenstein about the proposed bills. “Breweries play a crucial role in the fabric of our communities – employing residents, supporting local economies, and bringing together neighborhoods. I am committed to passing common sense legislation that supports our growing craft brewery industry.”
Greenstein, Gopal and Testa’s recent legislation has garnered support across the state as many view it as advocating for small businesses and local craftsmanship. Locally, the Middletown Township Council signed a resolution opposing the proposed regulations and showing solidarity with the bipartisan effort to lift restrictions.
“It’s always disappointing, but most of the time not surprising, when the state of New Jersey takes a position and a board like the ABC takes a position that hinders economic growth,” said Middletown Mayor Tony Perry.
“Middletown is very proud to be home to two breweries, two craft breweries, and I hope that that number continues to grow,” he said.
Perry explained the reason for the town’s resolution was to “stand up for small businesses” who might not be able to afford lawyers and lobbyists to fight for them.
“All the while we’re talking about outdoor dining capabilities and easing the restrictions that were eased during the COVID-19 pandemic and yet, now we’re sitting here purposely crippling small businesses by putting them at a… disadvantage in their business model,” he said.
The article originally appeared in the August 25 – 31, 2022 print edition of The Two River Times.
