Hillsborough Brewery Speaks Up About State's New Rules

HILLSBOROUGH, NJ — New Jersey recently slapped new restrictive rules on local craft breweries, such as limiting the number of special events that can be held at breweries. So how does this affect local breweries? And what do they think of this?

Surprisingly, not all breweries are opposed to the new ruling.

• See Related: New Rules For 88 NJ Craft Breweries

“We needed a little regulation because it levels the playing field,” said David Hoffmann, owner of Climax Brewing Co. in Roselle Park.

Hoffman has been brewing beer in New Jersey for more than 30 years. He was among the first five breweries to operate in the Garden State before the craft beer boom. He mainly manufactures and distributes his beer so entertaining is not a big factor to his business.

He makes his business by selling beer to bars and liquor stores. But with more brewery events, it begins to hurt the wholesalers since consumers are no longer going to the store to buy the products, he noted.

“This is going to level the field now,” Hoffman said. “There are a lot of breweries in the state, a total of 88 breweries now, but for 28 years there were only five of us.”

“However, over the past six years there have been a lot of illegal things going on, and without regulations it was like a free for all,” Hoffman continued. “The new [brewers] think they can do whatever they want and us old guys have to follow the same old rules. So in my perspective this levels the playing field.”

Currently in Union County there are six breweries with another one, Untied Brewing Company, slated to open in New Providence in late fall. (See Related: Construction Underway At Untied Brewing In New Providence)

In Somerset County, there are two craft breweries with a third brewpub, Village Brewing opening in Somerville this fall as well. (See Related: Somerset County's First Brew Pub Plans Fall Opening)

And one brewery in Princeton, Triumph.

Here are some of the new rules:

• A brewery can hold only 25 special events per license term, which are open to the general public, to be held on the premises
• A special event is a one-day event only, and cannot exceed the opening and closing hours of the brewery. Special events that may be held include trivia and live music
• The brewery may get a maximum of 12 special permits per license term for special events taking place off the licensed premises. Those would include beer, music or arts festivals, running and bike races and holiday celebrations.
• A brewery may allow a maximum of 52 private parties to occur on the licensed premises, such as birthdays, weddings, anniversaries, civic/political functions, professional/trade association events or class reunion/alumni events, provided they have no alcoholic beverages, among other restrictions.

Jeremy Lees owner of Flounder Brewing in Hillsborough has said the new regulations actually can benefit his business.

“The new Special Ruling for Limited Breweries doesn’t have a negative impact on us here at Flounder Brewing as we do not host live events that are impacted with the new restrictions,” Lees said. “The ruling does provide us with some new opportunities for generating sales and revenue in the form of off-premises and extension of premises permits which we did not have access to before.”

However, Lees said he was against certain aspects of the ruling such as burdensome reporting requirements when a brewery hosts a private event that also raises privacy concerns for guests.

“At a time when craft breweries are representing one of the fastest growing industries in the State as well as the Country, the small breweries should be seeing relief on regulation and over burdensome permitting and paperwork processes,” Lees said. “Restrictions should be eased and these businesses that provide so much to their local communities should be nurtured to thrive even more. Local breweries bring tourism to areas that boost local economies including local restaurants, local shops, provide jobs, and provide sense of community in many areas.”

Peter Merrigan, Co- Owner of Yale Terrace Brewery in Cranford, said that the state’s changes to help even things out with local bars and restaurants is “somewhat misguided.”

“Breweries are not it in competition with bars or restaurants that serve various types of alcohol and food,” Merrigan said. “For the most part we are partners with them as many places are now serving locally crafted beers. Breweries are a unique experience with the focal point on the product we produce onsite and beer education. The new regulations will have a negative impact on the local music scenes where musicians will be looking for work.”

While the restaurant industry supports the changes, some craft breweries have created a petition for locals to sign to show their opposition to the new rules.

What do you think of this special ruling? Do you think it's fair or unfair to local breweries? Comment below.

(Image via Shutterstock)

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