Restaurants & Bars

Those New Rules For 88 NJ Craft Breweries? Forget About It

The state has switched course after slapping new rules on 88 craft breweries, which prompted a strong backlash.

New Jersey has switched course after slapping new restrictive rules on craft breweries that prompted a backlash from beer sellers.

The Division of Alcoholic Beverage Control announced Tuesday that it will suspend enforcement of the new rules that crafter breweries found too restrictive and potentially damaging to their industry.

The ABC said it wants to continue discussions with owners of craft breweries and all other beer sellers before making a decision.

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“We want to make sure that we get this right,” said ABC Director David Rible. “We are committed to supporting the state’s growing craft beer industry, while also balancing the concerns of other stakeholders and ensuring compliance with state law.”

The decision to suspend the rules came after Gov. Phil Murphy weighed in during a Facebook Live appearance, saying the new rules "took me a little by surprise.

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"We're looking at that," said Murphy, who said his favorite beer is Budweiser. "I want to understand all sides of this."

The new rules, which were supposed to limit the number of special events that can be held at breweries, were intended to eliminate "significant confusion" about what's allowed at these establishments, Rible said. The new restrictions, he said, encouraged "the beneficial aspects of competition and maintenance of trade stability in the industry."

New Jersey Restaurant and Hospitality Association President Marilou Halvorsen told nj.com that the changes were intended to have breweries operate like the rest of the liquor industry does. “They can do things that bars and restaurants cannot,” Halvorsen told nj.com.

Here were 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.

The Office of Attorney General, in a release, noted that craft breweries were given latitude with restrictions in 2012 when the state Legislature amended state liquor laws to promote the craft beer industry.

The amendments created limited brewery licenses designed to help the growing industry, but they also restricted when and how breweries can serve alcohol on site, according to the OAG.

"In recent years, however, a growing number of craft breweries began serving alcohol well beyond what the limited licenses allowed or ever envisioned," according to the release. "This resulted in complaints of unfair competition from bars and restaurant owners who hold licenses allowing full retail privileges."

While the restaurant industry supports the changes, craft breweries took out their frustrations on social media over the past week.

The Human Village Brewing Company in Pitman said the proposed rules "wrap us in miles of red tape, and is a huge gift to the special interests that want the breweries to go away entirely."

Here were more reactions from craft breweries:

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