South Jersey brewery sues NJ ABC over 'deliberate attack' on craft industry

EAST GREENWICH TWP. - A Gloucester County brewery is suing the state's Division of Alcoholic Beverage Control over license rules deemed "a deliberate attack on small brewers" in New Jersey.

Death of the Fox Brewing Company of Clarksboro in East Greenwich Township filed the lawsuit Sept. 21 in state Superior Court and claims the state's Limited Brewery Special Conditions adopted in May 2019 that took effect in July of this year "severely restrict limited breweries’ ability to advertise events and grow their businesses."

Some of the special conditions New Jersey breweries face include:

  • No more than 25 on-premise special events per year, such as trivia, live music and yoga if promoted through media advertisement.

  • A maximum of 52 on-premise private parties per year, such as weddings, birthday parties and class reunions.

  • A maximum of 12 permits can be obtained per year by breweries taking part in events off-site, such as community parades and art festivals.

  • Breweries may not coordinate with food vendors, such as food trucks, to operate on the licensed premises.

  • Breweries can't sell food, except for pre-packaged crackers, chips, nuts and similar snacks.

  • Patrons are required to participate in a tour prior to on-site consumption. Repeat tours are not required if breweries maintain proof that a patron has taken a tour at the brewery within the calendar year.

"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. "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. Death of the Fox Brewing Company is suing to protect all New Jersey brewers’ right to free speech and to build thriving businesses."

More:Death of the Fox takes two brews and a shot of history to make something special

Lisa Coryell, spokeswoman for the New Jersey Division of Alcoholic Beverage Control, declined comment on the lawsuit, citing ongoing litigation.

Death of the Fox attorney Caleb Trotter of Pacific Legal Foundation said the special rules that apply to New Jersey's breweries are designed to favor bars and restaurant over craft breweries. Trotter pointed to a brewery's inability to freely broadcast sporting events such as the upcoming Major League Baseball playoffs as an example.

Under NJABC conditions, airing such an event live at the brewery would count as a special event.

Death of the Fox's seal speaks to the fox hunting heritage of this part of South Jersey. The brewery takes its name from a historic tavern.
Death of the Fox's seal speaks to the fox hunting heritage of this part of South Jersey. The brewery takes its name from a historic tavern.

According to Pacific Legal Foundation, the rules also were enacted without the proper process.

“State agencies cannot just craft rules behind closed doors without transparency or any opportunity for public involvement,” Pacific Legal Foundation attorney Luke Wake said. “State law requires that when an agency wants to impose rules affecting our lives and our livelihood, we must at least have an opportunity to voice our concerns. And agencies are required to submit regulations to the legislature — which can decide whether to override this sort of agency action.”

When the special ruling was issued in May 2019, NJABC Director James Graziano said, "We believe the activities permitted under this Special Ruling strike a fair and appropriate balance between the interests of full retail license holders, such as restaurants and bars, and the craft brewing industry."

"Will everyone be satisfied with them? Probably not," he continued. "But at the end of the day, the Division’s job is to set limits on what licensees are entitled to do under existing laws and to level the playing field so that all limited breweries can compete fairly with each other. If there is a need for or interest in adjusting or further expanding the privileges available to limited brewery licensees, that would be a matter for consideration by the Legislature."

Trotter said the mission of the lawsuit is to "put a stop to ABC's special ruling, and the 25-event advertising limit in particular, as quickly as possible."

"The restriction on event advertising is an unjustifiable imposition on the free speech of breweries,” he said.

A South Jersey native, Anthony Coppola has handled a variety of beats at The Daily Journal, Courier-Post and Burlington County Times, including award-winning work in sports and business coverage. Coppola, who joined the staff in 2008, now focuses on public safety enterprise reporting.

This article originally appeared on Cherry Hill Courier-Post: NJ brewery laws: Death of the Fox sues over special license rules