Restricted Licenses in New Jersey Affecting Breweries and Wineries

By Stark & Stark on March 6th, 2014

Posted in Business & Commercial Law

In a prior post, the Restricted Brewery License was reviewed.  This license permits the operation of a “brew pub” on the licensed premises.  In this respect, the brew pub may supply malt alcoholic beverages that it brews on premises for consumption in an adjoining restaurant that is operated regularly and principally for the purpose of providing meals to its customers and having kitchen and dining facilities.  As previously discussed, the holder of a Restricted Brewery License may only produce up to 10,000 barrels for on-premises consumption or sale to licensed wholesalers, and this license may only be granted to a party that also owns a Plenary Retail Consumption License that is operated in conjunction with the above-referenced restaurant.

With regard to winemaking in New Jersey, there are also two restricted licenses applicable to wine:  the Instructional Winemaking Facility License and the Out-of-State Winery License.

The Instructional Winemaking License permits its holder, subject to rules and regulations, to instruct persons in and provide them with an opportunity to participate directly in the process of winemaking and to directly assist them in the process of winemaking on the premises of the licensed facility.  While this license generally does not permit the manufacture of wine on premises, the license permits the wine made during the instructional process to be used or consumed on the licensed premises or distributed from the facility’s premises to a person who has participated directly in the process of winemaking for such person’s personal use or consumption.  The holder of this license is also permitted to sell mercantile items traditionally associated with winemaking and novelty apparel identified with the name of the licensed establishment.  In addition, this license also permits sampling on premises and the maintenance of a warehouse.  The fee for this license is $1,000.

For wineries located outside New Jersey that produce not more than 250,000 gallons of wine per year that hold a valid winery license issued in another state, the Out-of-State Winery License permits such wineries to sell and distribute its products to licensed wholesalers and sell such wine at retail in original packages in 16 salesrooms apart from the winery premises for on or off premises consumption at a fee of $250 per salesroom (such salesrooms shall not be jointly controlled or operated by the licensee).  Provided that no common carrier is used in transportation, the winery may also sell to licensed retailers in varying quantities based on the payment of additional graduated fees ranging from $1,000 to $100.  Additionally, the holder of this license may also ship not more than 12 cases of wine to any person over the age of 21 located within or outside the State for personal consumption and not for resale.  It is important to note that the license holder may not also own an interest in a winery that produces more than 250,000 gallons of wine each year.  The base annual fee for this license is $938.

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Hamilton, NJ

100 American Metro Boulevard
Hamilton, NJ 08619
Phone: 609.896.9060
Secondary phone: 800.535.3425
Fax: 609.896.0629
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Philadelphia, PA

One Liberty Place, 1650 Market St., Suite 3600
Philadelphia, PA 19103
Phone: 267.907.9600
Secondary phone: 800.535.3425
Fax: 215.564.6245
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Marlton, NJ

40 Lake Center, 401 NJ-73, Suite 130
Marlton, NJ 08053
Phone: 856.874.4443
Secondary phone: 888.241.7424
Fax: 856.874.0133
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Yardley, PA

777 Township Line Road, Suite 120
Yardley, PA 19067
Phone: 267.907.9600
Fax: 267.907.9659
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New York, NY

5 Pennsylvania Plaza 23rd Floor
New York, NY 10001
Phone: 800.535.3425
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Bridgeton, NJ

78 W Broad St
Bridgeton, NJ 08302
Phone: 856.874.4443
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