• Services
  • Attorneys
  • Media & Insights
  • Online Payment
  • Join Our Team
Results may vary depending on your particular facts and legal circumstances. No aspect of this advertisement has been approved by the Supreme Court of New Jersey. A description of the selection methodology can be found here.
  • Services
  • Attorneys
  • Media & Insights
  • About Us
  • Delivering Value
  • Diversity & Inclusion
  • Meritas
  • Contact Us
  • Online Payment
    A
    Alternative Dispute ResolutionAntitrust & Trade RegulationAppellate Practice
    B
    Banking & Financial ServicesBankruptcy, Creditors’ Rights, and Financial RestructuringBeer LawBusiness Law
    C
    Cannabis LawConstruction LawCooperative and Condominium Law (Co-op & Condo)Criminal Defense
    E
    Economic Development LawElder Care & Special Needs LawElectronic Discovery ("E-Discovery")Environmental LawERISA & Employee BenefitsEstate Planning and Administration & Wealth PreservationExecutive Compensation and Employment Strategies
    F
    Food, Beverage & HospitalityFranchise Law
    H
    Health Care & Life SciencesHealth Care ProvidersHigher EducationHospitals and Health Networks
    I
    ImmigrationInsurance CoverageIntellectual PropertyIntellectual Property Litigation, Arbitration, and Dispute ResolutionIntellectual Property Portfolio Strategy, Management & LicensingInternational BusinessInternet Law
    L
    Labor & EmploymentLiquor Law, Licensing, Manufacturing, and DistributionLitigation
    M
    Media Law & Creative Economy PracticeMergers & AcquisitionsMunicipal Law
    N
    Non-Profit Law
    P
    Patent Preparation and ProsecutionPharmaceutical / Medical Devices / Pharma ServicesProducts and Consumer Liability DefenseProfessional LiabilityPublic Utilities
    R
    Real Estate, Finance, and Land Use
    S
    SecuritiesSolar Energy
    T
    TaxationTelecommunicationsTrademark & Copyright Protection & Enforcement
    V
    Venture Tech & Emerging Growth Companies
    W
    White Collar Investigations & DefenseWorkers’ Compensation
    • New Jersey
    • New York
    • Pennsylvania
    • Blogs
    • Articles
    • Podcasts
    • COVID-19 Resources

    Categories

    Alcohol Manufacturing Branding General Business In the News Labelling Legislative Licensing Litigation Regulatory Social Tariffs Uncategorized
    Blogs > Legal Liquor > Higher Prices in Pennsylvania and...
    NM PR
    Visit Profile

    Higher Prices in Pennsylvania and Liquor Law Reform in New Jersey

    Higher Prices in Pennsylvania and Liquor Law Reform in New Jersey

    In the last week, liquor law developments in Pennsylvania and New Jersey have moved in contrasting directions.

    The Pennsylvania Liquor Control Board (“PLCB”) announced it will increase prices on approximately 3,554 of its products by 4% effective Jan. 15, 2023. The PLCB stated economic conditions forced this decision, which was made off the record and without a vote. Not subject to the price hike is merchandise including 5,600 seasonal and luxury items, 2,700 clearance items, 100 PA Proud products, and all special-order products. Items currently on sale in January will not increase in price until Jan. 30.

    The price increase impacts Pennsylvania distilleries, too. Under Pennsylvania law, distilleries may not sell products for less than the amount PLCB charges at their state stores. As a result, effective Jan. 15, Pennsylvania distilleries must increase the price of their products sold at state stores.

    As prices rose in Pennsylvania, New Jersey Gov. Phil Murphy promised reforms to New Jersey’s “antiquated and confusing” liquor regulations. New Jersey’s current liquor licensing system relies on rules written right after Prohibition, and those old rules “purposely created market scarcity,” said Murphy, and drove up the cost of a liquor license so high it priced out many small independent restaurateurs.

    Murphy’s reforms include:

    (1) Gradually Relax Population Caps—Until Eliminated

    • Currently, New Jersey’s local governments may issue only one license per 3,000 residents. This restriction allows license costs to exceed $1,000,000 in some areas.
    • Murphy proposed that this population quota be gradually relaxed until eventually it is eliminated in its entirety.
    • Regarding existing restaurateurs harmed by this change, Murphy proposed a tax credit to support the expected devaluation of their licenses.

    (2) Remove “Outdated” Regulations for Breweries, Wineries, and Distilleries    

    Murphy did not specify what “outdated” regulations he wanted removed. But it is important to note that in July 2022, the New Jersey Division of Alcoholic Beverage Control reinstituted their May 2019 Special Ruling that placed restrictions on these licensees, curtailing the number of events breweries could hold, and mandated yearly brewery tours for patrons. Perhaps New Jersey will finally permit taprooms to serve food and recognize a key element of responsible alcohol service: namely, that food slows the absorption of alcohol.

    New Jersey could reap economic rewards if Murphy’s reforms succeed. The New Jersey government estimates these reforms will create 10,000 new jobs annually and, over the next 10 years, generate $10 billion in new economic activity along with $1 billion in additional state and local revenues. There is certainly room for growth, as New Jersey always ranks near the bottom of states in breweries, wineries, and distilleries per capita.

    Nonetheless, while Gov. Murphy’s comments suggest a move in the right direction for these stakeholders, it will still require an act of the New Jersey legislature for these changes to take effect.

    For information about national and state liquor law matters or general manufacturing and distribution advice, please contact our Liquor Law, Licensing, Manufacturing, and Distribution Practice Group: Liquor Law Department Chair Theodore J. Zeller III, Esquire (tzeller@norris-law.com); David C. Berger, Esquire (dberger@norris-law.com) for Pennsylvania and New Jersey retail and manufacturing licensing; and Anthony M. Brichta, Esquire (ambrichta@norris-law.com) for federal manufacturing, distribution, formula, and labeling issues; or contact our offices at 610-391-1800.

    NM PR
    Visit Profile

    Related Posts

    Planes, Trains, and Shopping Carts: Permissible Vehicles for Transporter-for-Hire Licensees Crafting a Solution: New Jersey Lawmaker Takes Steps to Roll Back New Brewery Restrictions Giving Pennsylvanians a Second Chance: Ethics Investigation Spurs PALCB Changes in Limited-Release Lotteries

    Share

    Tags

    #brewery #liquor law #New Jersey #Pennsylvania

    Helpful links

    • About Us
    • News
    • Services
    • Blogs
    • Attorneys
    • Articles
    • (COVID-19)
    • Award Methodology
    • Events
    • Join Our Team
    Connect
    Online Payment

    Connect with Us

    • LinkedIn
    • Facebook
    • X
    • Instagram
    • Youtube

    Join our growing team

    We are looking for quality attorneys to help us do more for our clients. At Norris McLaughlin, each attorney has the same opportunity to succeed whether you’re at the beginning of a career or pinnacle of the profession.

    Learn More

    Subscribe to our content

    Receive timely legal information delivered to your inbox

    This field is for validation purposes and should be left unchanged.
    © , Norris McLaughlin, P.A., All Rights Reserved. Attorney Advertising.
    VIEW OUR DISCLAIMER,  TERMS OF USE,  AND PRIVACY POLICY

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume you consent to our cookie policy. Learn more