Your brewery's events are strictly limited, and some restaurants want it to stay that way

Alex Biese, Celeste E. Whittaker and Megan Burrow Asbury Park Press Published 5:32 a.m. ET Oct. 19, 2022 Updated 10:14 a.m. ET Oct. 19, 2022

Key Points

-NJ's Division of Alcoholic Beverage Control restricts breweries from holding more than 25 events a year.

-ABC restrictions also prohibit coordination between brewers and food vendors or food trucks.

-Support for the craft beer industry has been growing in Trenton and in towns across NJ.

Some restaurant owners are speaking out against what they see as unfair competition from breweries.

There are more than 140 craft breweries across NJ.

Ryan Sandman of Teaneck and her husband, Mike, know what The Alementary Brewing Co. can be. The couple has been customers of the Hackensack craft brewery since it first opened its doors in 2016. "We saw them in all their glory," Ryan Sandman recalled during a recent visit to the brewery's tasting room. It was the relaxed and neighborly atmosphere that drew the couple to the brewery instead of a traditional bar or restaurant, Mike Sandman said. "You come to a place like this, everybody's friendly, un-judgmental if you will," he explained. "It's just an overall better atmosphere to be in, as opposed to being in a bar." That atmosphere, however, is changing in the wake of restrictions on events and food availability placed on breweries by the state's Division of Alcoholic Beverage Control. The restrictions include a yearly cap of 25 events and prohibit coordination between breweries and food vendors or food trucks. "There's nothing like going to a brewery and seeing a food truck or something outside," Mike said. "It kind of balances it out in a way. It's just more exciting, and it's just a shame the state can't see or hear our side of things." "The limitations also limit the customers. ... It's just a big downfall and it's just really saddening," Ryan added. "It's sad to see the potential in this place and to know the potential that they do have and that they have had. And to see it stripped away is truly heartbreaking." Support for the craft beer industry has been growing in Trenton and in municipalities across New Jersey since the restrictions detailed by the ABC in a 2019 special ruling took effect this summer. For subscribers: Take a first look inside Fort Monmouth's new brewery, Birdsmouth Beer Lawmakers say the limitations are arcane, stemming from a decade-old amendment to state’s liquor laws, and breweries argue that the restrictions hurt both their bottom line and their connection with their neighbors. Some restaurant owners claim that events and food at breweries brings them closer to what restaurants do — and they see that as competition. "We have spent the last five years becoming ingrained in our communities, hosting countless charity fundraisers, supporting local causes, and generally trying to be a net positive for our community," said Jason Goldstein, owner of Icarus Brewing in Lakewood.

'They have to stay in their lane'

Special events, by the ABC's definition, are any gatherings promoted through the media or that "provide entertainment in the form of live championship sporting event broadcasts, live amplified music or DJ performances." “There’s some libertarian in me,” said state senator Declan O’Scanlon (R-Monmouth). “I believe that government restrictions should only exist to improve people’s lives, not to needlessly restrict them." O’Scanlon, whose district includes Carton Brewing in Atlantic Highlands, said he believes restrictions on craft breweries can be eased without posing a risk to bars and restaurants that hold full and considerably more expensive retail liquor licenses. But some are speaking out against what they see as unfair competition from breweries, whose liquor licenses are far less expensive than those required by bars and restaurants. “I don’t begrudge anyone trying to grow their business," Jersey Shore restaraunteur Marilyn Schlossbach told the USA TODAY NETWORK in July. Schlossbach, the executive chef and owner of The Marilyn Schlossbach Group, which includes Langosta Lounge in Asbury Park, conceded that "we've all had a lot of struggles in hospitality. But, I paid a hefty sum of money for my liquor license and a lot of liability goes with that, so I can sell products from other businesses like breweries. I’m OK with breweries holding events. I’m not OK with breweries turning into restaurants. That’s not what they set out to do.” “They have to stay in their lane," Matt Venuto, owner of the Arrowhead Inn in Brick, told the township council on July 26, the night the municipality passed a resolution opposing the ABC's special ruling. "I have great respect for Icarus, what they do," Venuto said, referring to the brewery as a "brewpub." "They only bought a certain license," Venuto told the council. "They only did a certain amount of work. They only developed a certain type of staff, a certain type of building, and that’s by design by the state." Blake Crawford, co-owner of the Alementary, clapped back against that line of thinking. “Honestly, I would say the same thing: they need to stay in their lane," said Crawford. "I mean, a liquor license in the state of New Jersey is nothing more than a license to sell liquor, that’s the end of it.” Other bar and restaurant owners across New Jersey contacted by the USA TODAY NETWORK New Jersey for this story either did not respond or declined requests for comment.

'There is a sense of apprehension'

On-premises events, Crawford said, play an "enormous" role at the Alementary, where the indoor tasting room and outdoor beer garden have been divided into four separate, rentable spaces. "We’ll do baby showers. We’ve done two weddings so far this year. We have corporate events, team happy hours," said Crawford. "You name it, these are on-premises events that we host on absolutely a weekly basis if not multiple times a week.” The Alementary has also offered their space for community organization fundraisers from local dog shelters to fighting pediatric cancer. “These are things that all classify as events in ABC land, even if the Alementary, beyond the price of a beer, isn’t making any money on the event itself.” The USA TODAY NETWORK New Jersey first reported on John Ross Cocozza's work to open a Monmouth County home for his Ross Brewing Company in 2018. Ever-closer to opening day in the Port Monmouth area of Middletown, he discussed the hard reality of entering the current craft brewing business climate. “If we have a great idea for an event, a great idea for an interactive party, there is a sense of apprehension," said Cocozza. "All in, maybe some people can’t imagine how much money and time goes into building something like this, so there is that sort of baseline anxiety that, ‘Hey, you’ve done all this and now the state’s going to tell people they can only have, whatever, 26 parties.' "

'They bring a lot to the table'

There are more than 140 craft breweries across New Jersey. Six of them are in the district of state senator Vin Gopal (D-Monmouth), including Kane Brewing in Ocean Township, Little Dog Brewing Co. in Neptune City, Red Tank Brewing in Red Bank and Source Brewing in Colts Neck. Breweries, Gopal said, “bring people into the area. They bring tourism. They bring a lot to the table here, and they’re not big corporations so we should support them and not try to hinder them and let the free market work its will.” The restrictions came after state’s Division of Alcoholic Beverage Control issued a special ruling in 2019 that, following the state legislature’s 2012 liquor law amendments creating craft brewery licenses and an initial 2018 special ruling that was met with backlash, specified the privileges afforded to breweries. The ABC, in a statement, said activities permitted under the special ruling are "consistent with the intent of the legislature and strike a fair and appropriate balance between the interests of full retail license holders, such as restaurants and bars, and the craft brewing industry.” The provisions outlined in the special ruling took effect on July 1, the beginning of the 2022 to 2023 license term, and were swiftly met with blowback, online petitions, satirical memes and plenty of statements from those within the craft beer industry. One such meme posted in July by Scott Wells, co-owner of Bolero Snort in Carlstadt, utilized the trending "Little Ms./Little Mr." sketch to dub a cartoon emblazoned with the ABC logo as "Little Mr. Regulates breweries out of business." The New Jersey Brewers Association, which has provided customers with pre-written letters to Gov. Phil Murphy and state legislators in support of breweries, issued a position letter in July explaining its opposition to the restrictions, which they described as "anti-competitive and aimed at stifling innovation." New Jersey's breweries had a $1.8 billion impact as they employed more than 2,200 people and produced more than 210,000 barrels of beer in 2021, according to the association. The Brewers Guild of New Jersey, executive director Eric Orlando said in a statement, offered a number of proposed changes to the rules in the last two years, and was disheartened by the final conditions which kicked in this summer. He cited the economic devastation of the pandemic, now compounded by inflation and supply chain issues, as hurdles for the industry to overcome. With the restrictions, breweries, he said, won't be able to "provide the types of local, community-centric hospitality options many in our state have become accustomed to and thoroughly enjoy." “The rules, as they’ve been interpreted by the ABC, I think go too far and over-regulate and over-restrict,” said O’Scanlon. “I don’t believe that was the intention of the legislature when we passed the original legislation opening the door for this really valuable and interesting industry of craft brewing.” Gopal and O’Scanlon are part of a bi-partisan effort to ease the restrictions. Joined by state Senator Linda Greenstein (D-Middlesex) and Assemblyman Clinton Calabrese (D-Bergen), in August Gopal and O’Scanlon introduced a bill that would amend the 2012 brewery legislation to allow breweries to host an unlimited number of events and coordinate with food vendors. “It’s got (the) bi-partisan support of people who do their homework,” said O’Scanlon. “I think it shows that we’ve heard the brewery industry, we’ve heard their fear, their real palpable fear of the impact of this, and we’ve come up with a solution that is a good one.” The goal is to get the bill passed this fall, Gopal said in August. “The ABC strongly believes they are interpreting the (work of the) legislature,” Gopal said, “and so we need to change the legislative intent.”

'Trying to find a balance'

The efforts in Trenton are being supplemented on a local level. On July 26, both Brick in Ocean County and Hillsborough in Somerset County passed resolutions opposing what they saw as special conditions placed on craft breweries by the ABC. Hillsborough is home to Flounder Brewing Co., and Brick will be the location of the new site for Icarus Brewing, currently in Lakewood. A similar resolution was passed on Aug. 15 by the Hackensack City Council. "The city of Hackensack is committed to supporting small businesses and I hope this resolution demonstrates that commitment," said Hackensack mayor John Labrosse. "I encourage the governor and state legislature to work with breweries to develop smart, fair law revisions and regulations that will guide the NJABC on how to oversee the craft beer industry, and request these harsh conditions be removed immediately." Medford in Burlington County has three breweries, with a fourth one likely on its way in the next year, according to Mayor Chuck Watson, who is a big fan of the breweries. Their breweries include King’s Road Brewing Company, Lower Forge Brewery and Farm Truck Brewing. All are located on Main Street. Watson said he is in favor of the state to repeal the special ruling, adding that he “reached out to our assemblymen, and a senator expressing my opinion against the special ruling. “(Breweries) are becoming a hub of the community because they bring people in, not only to drink beer but then they shop in our stores, they eat in our restaurants and it’s been a really great thing for our town,’’ Watson said. “I wouldn’t want to see legislation that hurts them. I understand the restaurant industry’s issues with it, but we’re not trying to make breweries a restaurant. We’re not asking that they can sell food. I’m not so sure that trivia night once a week is hurting restaurants. I think it’s trying to find a balance.’’ During a recent visit to the Bradley Brew Project in Bradley Beach, customer Shannon Phillips of Neptune questioned the fairness of the restrictions being imposed. “I don’t really consider breweries to be in competition with restaurants and bars," said Phillips. "I think that people go to breweries because they enjoy locally-made craft beer.” Phillips, co-owner of the neighboring Main Street bakery E. Holland Sundries, defended breweries' place. "I'm a business owner in Bradley Beach and Bradley Brew Project is a huge part of the community," she said. "And I think it’s a place where people come together. And for them to be able to host events to encourage that is important.” In the meantime, one brewery isn’t waiting for the gears to move in Trenton:

Death of the Fox Brewing Company in the Clarksboro area of East Greenwich Township, Gloucester County, filed a suit against the ABC on Sept. 21 in state Superior Court, claiming the special conditions "severely restrict limited breweries’ ability to advertise events and grow their businesses." "ABC’s special ruling is a deliberate attack on small brewers in New Jersey. They are a transparent attempt to play favorites by helping some businesses at the expense of others," Death of the Fox founder Chuck Garrity said in a statement. "What’s worse is ABC didn’t even bother to follow the law in proposing these rules by submitting them for public notice and comment.” “Hundreds of small businesses around the state are already being hobbled by these draconian rules,” Garrity said. “Death of the Fox Brewing Company is suing to protect all New Jersey brewers’ right to free speech and to build thriving businesses."