New Jersey Legislators Prefer Wine to Beer
November 11, 2009
The Brew Club is happy to have Mike Pellegrino, author of the new book Jersey Brew, The Story of Beer in New Jersey submit this excellent post regarding beer and beer laws in New Jersey.
Jersey Brew is a history of beer in New Jersey from the Colonial times to the present. (Yes there are mobsters) Jersey Brew, The Story of Beer in New Jersey
will be available in November, 2009, and can be pre-ordered at Amazon.com and BeerBooks.com now. You’ll also want to stick around for the upcoming interview with Mike about his book in the near future!!!
The beer story in New Jersey today is craft-brewing, but there is a clear bias against our State’s microbreweries. New Jersey’s laws place our five breweries at financial and marketing disadvantages as compared to our wineries. There is no legitimate basis for this bias, and the laws should be changed to even the playing field or perhaps even assist our local breweries.
Wineries are regulated under the same group of statutes, yet wine is treated more favorably. The simplest example of this disparity is the fees charged for licensing. As listed above, the licensing fee for an unlimited plenary brewer’s license is $10,625. A plenary license to produce unlimited wine under N.J.S.A. 33:1-10(2) (a) costs just $938. The license fee for even a restricted brew pub is more than that ($1,250 to $2,500).
Another, more significant example of the bias against beer is the limitation on over-the-counter sales. Wineries are granted unlimited direct sales while breweries are limited by permit to just two-six packs per customer per day. This is a harmful limitation because wineries and microbreweries both offer tours as a marketing strategy. Wineries can generate significant revenue by selling cases of wine at the conclusion of its tours, while New Jersey’s craft brewers cannot. Why was this distinction created?
Perhaps the most harmful difference in treatment is the ban on free samples. New Jersey residents have been inundated with commercials for the mega-breweries like Bud, Coors and Heineken, so most people buy beer without considering smaller brands. The challenge for microbreweries is simply to get the public to try their beers. People who try the local beer generally will buy it again.
An effective marketing technique would be to offer small samples in liquor stores, the way wine-makers often do. For reasons unknown, however, New Jersey law prohibits breweries from offering free beer samples in liquor stores. N.J.S.A. 33:1-12 was amended in 2003 to specifically allow free consumer wine samplings in stores – but not beer.
So what do you think? Do New Jersey Legislators prefer wine over beer?
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November 11th, 2009 at 12:02 pm
Now it all makes sense. I’ve been wondering how NY and PA can have so many great breweries while NJ has so few. Looks like our legislature has created plenty of incentive for brewers to avoid the Garden State and set up shop in more beer-friendly locales.
If I was a master brewer (I’m not – even the Cooper kit intimidates me!) I would regretfully set up shop across the border so I could make a go of it.
Way to go, NJ legislature. Another feather in your cap!
November 11th, 2009 at 12:29 pm
@Jim – I would do the same thing! Jersey is a tough place to do business, and for that reason its important to support those that make it work here in spite of the difficulties. It also sucks for us because beer tastings would be a great way to get people to try new beers. Its OK for wine, why not beer? Also, if I can do the Coopers kit, ANYONE can! (even you)
Scott´s last blog ..Brewing Beer at Home With the Coopers Homebrew Kit
November 11th, 2009 at 2:16 pm
Hmmm let me see. Beer companies have lots of power and lobbyists and can systematically, state by state make sure that small breweries don’t get fair access to the end consumer. If every craft brewery in existence went out of business tomorrow the big three could ramp up production to more than deliver the amount of brew needed to meet demand.
On the other hand, wine makers, even the big ones are very limited (in comparison) to both the amount of product they can deliver, and their size in the marketplace. Mmmm…Less power=less influence. Methinks I might be onto something here. So if AB and CM and Miller can pay $10,000 permitting fees, so can everyone. And if the wine makers will go under and there might be a shortage of wine…OK they pay $900.
So what is truly a dichotomy in the marketplace, and it is fair to say that craft brewers are getting the shaft may actually have some ties to corporate corruption and greed. And lets face it…You are in New Jersey..There has got to be Mob underpinnings here somewhere. So while it is an interesting book, could be someone gets whacked if they push too hard, or complain too loud, or dig too deep.
You gotta love this country!
November 11th, 2009 at 8:09 pm
Don, those are all interesting points you make. All I can say however it that there is no such thing as this “Mob” in New Jersey.
Scott-TheBrewClub´s last blog ..Shmaltz Brewing Company – Freaktoberfest
November 13th, 2009 at 11:52 am
@ Don: As your brother who lives in NJ (along with his family and his kneecaps) I wholeheartedly echo Scott’s comments about this “mob” thing you speak of. I’m not sure what it is referring to, as there is no such organization I’ve ever heard of here in the Garden State.
This is a common misunderstanding about NJ, along with the fact that everyone drives Camaro’s, we’re all named Joey or Tina, and the girls have big hair. Unfounded I say!