Craft beer bill gets a frosty response from restaurateurs

Marty Frank pours a beer at the Keg & Kitchen during the Haddon Pub Fest earlier this month.

Producers of craft beer in New Jersey are pouring a frosty one to toast legislation approved by the state Assembly Appropriations Committee Monday.

The bipartisan bill, sponsored by state Sen. Donald Norcross, D-Camden, is designed to modernize the laws governing the state’s brewpubs and microbreweries.

But restaurant owners are not happy about the bill, which would remove regulatory restrictions on the pubs and breweries and possibly infringe on their food businesses.

“As demand for their product has grown, our state’s small breweries have been asking for the ability to expand their businesses,” said Norcross.

“This measure will lift restrictions that are stunting the growth of this industry. By doing this, we will encourage business investment, which will create new local jobs and fuel economic growth.”

Dale Florio, of the Princeton Public Affairs Group, representing the New Jersey Restaurant Association, stated on the NJRA website that he’s concerned about the bill.

“While it prohibits microbrewers from opening restaurants, they could coordinate beer sales with neighboring facilities and find ways around the law,” said Florio.

Florio said the issue arises from challenges to the long-standing system in which producers, distributors and retail outlets were separate.

“When you start to break down that three-tier system of how we sell alcohol, in this particular case, it can become somewhat of a pseudo-restaurant,” Florio said.

That could be a challenge to local alcohol licensing laws, as well as to restaurant owners, that have paid significant sums for licenses, Florio added.

“I can understand how some people would be upset by it,” said Joe Kreps, owner of The Taproom & Grill in Haddon Township.

“Now the breweries will be allowed to serve beer just like a regular restaurant. Before, you went on a tour and you had a sample of the beer at the end.

“For (the brewers) to sell beer devalues the liquor license that I paid dearly for,” added Kreps, whose restaurant was recently approved to brew and sell its own beer.

Under the current law, a brewpub like Iron Hill can only open two sites in the state — it is in Maple Shade and plans to open in Voorhees Town Center — and is restricted in other areas concerning beer sales and distribution.

Iron Hill owner Mark Edelson, who helped craft the legislation, said his company is mostly interested in opening several brewpubs around the state.

“We are looking to open more stores, so we’re excited about this legislation,” said Edelson.

“In addition, with the new bill, we’ll be able to attend beer festivals and offer our creations for sale. We can’t do that now.”

Edelson said selling his Iron Hill creations to distributors does not fit in the company’s model, but he’s sure that other breweries are looking to get their beers out in the marketplace.

“Many of the brewpubs in the state don’t have plans to open multiple stores,” he said. “But they want to sell more beer off-premises. They are absolutely interested in being able to sell their beer to distributors.”

Gene Muller, self-proclaimed president and “head janitor” of Flying Fish Brewery in Cherry Hill, worked with Edelson and the legislators to create the bill.

“Probably the first time Democrats and Republicans could agree on something, and it was beer,” said Muller with a laugh.

“I know (the restaurant owners) have a lot of concerns,” Muller said, getting serious. “But we made sure we put in the bill that the breweries would not be allowed to sell food.

“The restaurateurs think if people spend a dollar at a brewery, that’s a dollar out of their pockets,” added Muller.

“But these breweries will now be tourist destinations. And after people take their tour, they’re going to be looking for a local restaurant or tavern to get something to eat.

“It’s a big win-win for everyone.”