Owner Of Chatham Brewery Is Bitter Over New State Restrictions

CHATHAM, NJ — The New Jersey Division of Alcoholic Beverage Control (ABC) recently imposed a slew of restrictions on microbreweries across the state, affecting local small business owners like Twin Elephant Brewing in Chatham.

The new rules, which went into effect on July 1, limited the number of events they could host, and limit the selection of products they can sell, among other restrictions.

The regulations are part of a special ruling issued by the ABC in 2019, which followed a similar, harsher set of rules issued in 2018 that drew immediate criticism from industry leaders and legislators alike.

The special ruling limits establishments to 25 on-site events and 52 private parties per year. Each company may attend up to 12 off-site events. Breweries could hold an unlimited number of events prior to the ruling.

Breweries must also provide walking or virtual tours of their facilities before allowing patrons to drink any beer, and they can no longer collaborate with food trucks or vendors or serve coffee.

Cindy DeRama, the owner of Chatham-based Twin Elephant Brewing, believes that the new restrictions will harm the role of small businesses in the community.

"With this special ruling from the ABC, it limits breweries to engage their communities and customers. Being limited to 25 special events includes limiting live music, charity events, local artist pop-ups, etc. Breweries become part of their local communities and support their towns and local businesses and vice versa," DeRama said.

According to the state's directive, limited-brewery licenses have different privileges than bar or restaurant licenses.

The ABC — part of the New Jersey Office of the Attorney General — says it "must balance the concerns of the growing limited brewery sector comprised of 100 licensees against the issues and concerns facing the bars and restaurants that collectively hold approximately 6,000 retail consumption licenses" in New Jersey.

According to DeRama, restricting collaboration between breweries and food vendors may cause more harm than people realize. "The special rulings also go against things employees at breweries are trained for pertaining to alcoholic consumption… Breweries don't want to run like restaurants but they do want to help their customers to have access to food to prevent intoxication which is drilled into servers' heads in the training."

Read more: Microbreweries In Peril Due To New NJ Restrictions, Industry Says

According to ABC Director James Graziano, who did not issue the original rules in 2018 but did issue the 2019 special ruling, the rules were designed “to help craft breweries promote their products and build their business while continuing to balance the concerns of other licensees and ensuring compliance with state law.”

However, DeRama stated that having access to food trucks that are willing and eager to be located nearby breweries is very beneficial and supports other small businesses.

"Even being able to sell coffee and sodas (not made on site) is helpful to offer to customers to slow down their alcohol intake and also to offer to designated drivers," DeRama said.

According to C&R Research, New Jersey had the fastest-growing craft-beer scene in the country from 2015 to 2018. During that time, New Jersey's craft-beer industry expanded by 43 percent, as craft breweries and microbreweries expanded their presence in the state and across the country.

Despite this expansion, regulations continue to rise. "The ABC is supposed to regulate alcohol sales, but with these special rulings are regulating entertainment, hindering safety for the public, and stifling opportunities for small businesses," DeRama said.