New Jersey has taken steps to make the state more friendly to liquor sales, breweries and distilleries, in, what officials called "the first substantive overhaul of New Jersey’s antiquated liquor license laws since the aftermath of Prohibition."
“For the first time in nearly a century, New Jersey has shown the fortitude to tackle an age-old problem that has stifled economic growth and hampered the dreams of countless small business owners,” New Jersey Gov. Phil Murphy said in a statement. “We knew this wasn’t going to be an easy lift – nothing that has been entrenched for nearly a century ever is. Together with our partners in the Legislature, we are laying new ground rules to help our breweries and distilleries flourish at the same time creating new opportunities for smaller and more diverse mom-and-pop establishments to set up shop or expand in New Jersey and help transform our downtowns.”
On Tuesday, Murphy signed legislation into law that intends to add nearly 1,500 liquor licenses to the marketplace by targeting inactive and, what officials called, "pocket" liquor licenses.
Freeing up and adding new liquor licenses
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These licenses either inactive and tied a specific location or, in the case of a pocket license, unused by not attached to a specific location.
The new law now requires license holders to use these liquor licenses or sell them, if a license has been inactive for two consecutive years. If nothing is done, the license can be transferred from one municipality to a contiguous municipality
Also, in cases where an inactive license has lapsed and has not been renewed in the last eight years, the municipality where the license lapsed may issue a new license at public sale to be used within that municipality.
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Officials said by holding onto inactive liquor licenses, holders of these licenses have "sent the price of licenses through the roof."
By targeting these licenses, officials expect to inject about 1,356 licenses back into the marketplace.
Also, the law also establishes a new class of retail consumption liquor licenses -- for food and beverage establishments in shopping malls -- that will add another 100 licenses throughout the state.
This is intended to help boost business at malls throughout the state that "have been struggling due to the pandemic and the proliferation of online shopping," officials said in a statement.
Easing restrictions on breweries and distilleries
For breweries, distilleries, cideries and meaderies, the new law will ease existing restrictions that, officials said, limited their ability to compete with similar businesses in other state.
It undoes controversial requirements -- including one that mandated that these establishments must provide tours of the premises -- and now permits the businesses to offer snacks and non-alcoholic beverages, bring in outside vendors and food trucks and host unlimited onsite events.
Previously, these types of businesses were not permitted to serve food, could not coordinate with food trucks and had been limited to host only 25 onsite events a year -- among other restrictions.
The bill also ups the amount of barrels that these establishments can produce a year from 10,000 to 300,000.
“Clarifying the rights and privileges afforded to craft breweries in our state will give our industry a stronger foundation to operate on moving forward. The legislation allows all state craft beverage manufacturers more opportunities to deliver both the unique products and experiences our customers deserve in our tasting rooms and throughout our communities,” Eric Orlando, executive director of the Brewers Guild of New Jersey, said in a statement.
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