In the wake of the landmark legislation which aimed at permanently restoring the various rights and privileges of New Jersey’s breweries and stabilizing the state regulatory environment in which they operate, the New Jersey Division of Alcoholic Beverage Control (NJABC) has issued new rule proposals recently that, if enacted, will negatively impact how breweries operate in the State of New Jersey and their customers overall brewery experience. When combined, the proposed regulations issued in the August 18th and September 2nd editions of the New Jersey Register reinstitute economic and bureaucratic barriers which breweries and their fans across the state tirelessly fought to end over the course of almost two years, culminating in the unanimous passage and signing of Public Law 2023, c. 290 in January 2024. The proposals, which increase permit fees as much as 50%, add various reporting requirements, and create stifling regulatory ambiguities to be navigated by the industry’s small businesses, are set to have their public comment periods close in a matter of weeks, before the NJ Legislature returns to Trenton for their upcoming “lame duck” legislative session.

The Brewers Guild of New Jersey has severe concerns about these rules as they will detract from much of the legislative intent of the new law and create large amounts of red tape and expense to operating a brewery in New Jersey. Despite securing descriptive language in the statute which clearly affords breweries many of the rights previously restricted by NJ ABC special rulings issued at various occasions in previous years, the proposals mimic now invalidated policies that previously raised the ayre of the industry.

“After 18 months of hard work in Trenton on legislation which clearly outlined our privileges, which gained unanimous support from legislators in a bi-partisan fashion, regulators are now seeking a new path to implement elements of their policies which have been rejected. These regulations are a work around of the law which will lead to the restricting of brewery growth in state, while increasing and creating new costs. How are breweries expected to grow and be successful in a world of over-bearing regulation?” – Chuck Aaron, Owner of Jersey Girl Brewing in Mt. Olive, New Jersey.

The new proposed regulations will hinder efforts to coordinate between breweries and food providers, a cornerstone of the new legislation, as well as increase fees, paperwork, and administrative oversight when a brewery wishes to use many of their revised license privileges. These proposed regulatory efforts hurt more than just breweries, but the several small businesses they support, including various food establishments within the state, and even non-profit and charitable organizations which may want to utilize New Jersey craft breweries as a venue to host fundraisers and community events.

In addition to the legislative intent of the new statute, the new regulations will attack contract brewing and alcohol license partnerships in New Jersey, forcing our own manufacturers to pay excessive permit fees and submit to an unparalleled level of administrative oversight in the region. In addition, these proposed regulations restrict these small businesses from participating in licensing agreements that their out-of-state competitors have been able to use to grow their own brands herein our backyard.

“Why would we bar our own manufacturers from competing against companies who ship their products into the state on a level playing field. This hurts the breweries and the consumers statewide leaving me to question – who does this benefit?” – Scott Wells, Co-owner, Bolero Snort Brewery, Carlstadt, NJ.

The Brewers Guild of New Jersey has asked to meet with regulators from the NJ Division of Alcoholic Beverage Control, who declined the request. The Guild looks forward to working with policymakers, including those in the Murphy Administration and Legislature, to find common ground on these regulatory proposals that ensure appropriate oversight and public safety, while respecting the law’s overall intent to usher in a new era of prosperity and regulatory predictability for our state’s craft breweries.

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The Brewers Guild of New Jersey is the Advocacy Group for the state’s Craft Brewing Industry. Founded in 2017, and later merging with the New Jersey Brewer’s Association, the Brewer’s Guild of New Jersey has been the voice of the brewing industry advocating for modernization of brewing laws and parity with the craft brewing industry of our neighboring states and the nation as a whole. The Brewers Guild of New Jersey was instrumental in the passage of S-4265/A-5912 into law in 2024 as well as several other pieces of industry-supported legislation.