New Jersey distilled spirits
The production of distilled spirits in New Jersey has not been a large industry in the state. Strict alcoholic beverage control laws in place during and after Prohibition (1919-1933) prevented the industry from growing for almost a century. In 2013, the state passed a law creating a craft distillery license.[1][2] Jersey Spirits Distilling Co. in Fairfield is the newest distillery to be issued a NJ Craft license.[3]
History
New Jersey has a long distilling history dating to the colonial era when large landowners converted surplus fruit into brandy, sugar into rum, and grain into whiskey. As of 2013, the state is home to two licensed distilleries.[4][5] Laird & Company, in the Scobeyville section of Colts Neck, is the oldest licensed distillery in the United States, and received License No. 1 from the U.S. Department of the Treasury in 1780.[6] By 1834, New Jersey boasted 388 distilleries.[7][8][9]
In 2013, the New Jersey Division of Alcoholic Beverage Control issued its first distillery license in 94 years (since instituting Prohibition), to Jersey Artisan Distilling, based in Fairfield, in Essex County, which plans to produce rum flavoured by fruit grown in the state, and whiskey from local sweet corn.[4][10] Another distillery startup, Cooper River Distillers in Camden, was expected to receive a state distillery license later in 2013.[11] New Jersey's newest craft distillery, Jersey Spirits Distilling Co. received licensing in July 2015, and opened its doors in Fairfield with its signature Main Street Vodka. This distillery also produces whiskey, bourbon, gin and rum.[12]
Production
Manufacturers and products
New Jersey presently has several licensed distilleries, Laird & Company licensed with a Rectifier and Blender license, Jersey Artisan Distilling which has a Plenary Distillery license, Jersey Spirits Distilling Co. which has a Craft Distilling license, and Corgi Spirits at the Jersey City Distillery which has a Craft Distilling License. Laird is the nation's only remaining producer of applejack. Presently none of the company's distilling takes place in New Jersey. Laird's obtains all its apples from Virginia's Shenandoah Valley and distills its products in Virginia. Distilling at its New Jersey facilities ceased in 1972 and Laird's blends, ages and bottles its products in Scobeyville.[6]
Legal issues
Distillery licenses, regulation, and taxation
To operate in the state of New Jersey, distillery owners must first obtain licenses from the federal and state governments.
The Alcohol and Tobacco Tax and Trade Bureau (TTB) of the U.S. Department of the Treasury issues a permit for the operation of a distilled spirits plant in accordance with federal regulations, and the requirements of both the Federal Alcohol Administration Act and the Internal Revenue Code of 1986. The permit is issued after the approval of a filed application for the permit and a passing of an inspection of the distillery facilities by a federal government inspector. This permit allows the production, bottling, rectifying, processing and storage of distilled spirits and beverages. Examples of distilled spirits include neutral spirits or alcohol (i.e. vodka or grain spirits), whiskey, gin, brandy, blended applejack, rum, tequila, cordials and liqueurs.
New Jersey's laws and regulations regarding alcohol are overseen by the Department of Law and Public Safety's Division of Alcoholic Beverage Control (ABC), which is managed by the state's Attorney-General.[13][14] The division issues licenses to distilleries to operate within the state, offering four distinct Class A Manufacturer's Licenses.[15]
Federal excise taxes are levied on production of distilled spirits intended for human beverage consumption. Taxes are collected on undenatured distilled spirits, including those used manufacture of medicines, medicinal preparations, food products, flavors, flavoring extracts, and perfume and then drawnback (i.e. refunded) to the producer at the end of the fiscal year. Distilled spirits intended for industrial or research use that are denatured (i.e., treated with substances to make them unsuitable for human beverage consumption), or used by research laboratories, hospitals, universities and government agencies is exempt from federal excise taxes.
New Jersey excise taxes on distilled spirits for human beverage consumption are levied at a rate of $5.50 per gallon.[16]
New Jersey Class A manufacturer's licenses for distilleries | ||
---|---|---|
Type of license[15] | Activity permitted | Fee for license (as of 2013) |
Plenary Distillery License |
|
$12,500 |
Limited Distillery License | $3,750 | |
Limited Supply Distillery License |
|
$313 per year for up to 5,000 gallons $625 per year for 5,000-10,000 gallons $1,250 without capacity limit. |
Craft Distillery License |
|
$938 |
Rectifier and Blender License |
|
$7,500 |
Direct shipping
Federal law prohibits alcoholic beverages from being shipped through the mail.[17][18] New Jersey effectively prohibits the shipment of beer and spirits to customers by requiring a liquor license to transport alcohol, but not having any class of liquor license that grants permission to ship beer or spirits.[19] United Parcel Service (UPS) and Federal Express will ship wine to a person's home, but will only deliver beer or hard liquor to a licensed business.[20]
See also
- Alcohol laws of New Jersey
- Beer in New Jersey
- List of wineries, breweries, and distilleries in New Jersey
- New Jersey Division of Alcoholic Beverage Control
- New Jersey wine
References
- ↑ Offredo, Jon. "New Jersey distilled: Gov. Chris Christie signs craft distillery bill into law" in The Times of Trenton (9 August 2013). Retrieved 15 October 2013.
- ↑ New Jersey Division of Alcoholic Beverage Control. "Notice Regarding New Craft Distillery License" (21 August 2013). Retrieved 15 October 2013.
- ↑ Lorenzo, Rebecca. "New distillery looks to delight in Fairfield" (15 October 2015). Retrieved 26 October 2015.
- 1 2 Young, Elise. "N.J. Closes Book on Prohibition, Gives Distiller License" in Bloomberg Businessweek (7 February 2013). Retrieved 8 February 2013.
- ↑ New Jersey Division of Alcoholic Beverage Control. "New Jersey ABC license update" (16 April 2013). Retrieved 10 August 2013.
- 1 2 Harrison, Karen Tina. "Jersey Lightning" in New Jersey Monthly 13 July 2009. Retrieved 19 July 2012.
- ↑ Westrich, Sal. New Jersey Wine: A Remarkable History. (Charleston, SC: The History Press, 2012). ISBN 9781609491833.
- ↑ Jackson, Bart. Garden State Wineries Guide. (South San Francisco, CA: Wine Appreciation Guild, 2011). ISBN 9781934259573.
- ↑ Pinney, Thomas. A History of Wine in America: From the Beginnings to Prohibition. (Berkeley: University of California Press, 1989), 384. ISBN 9780520062245.
- ↑ "N.J. issues first distillery license since end of Prohibition" in The Associated Press (7 February 2013). Retrieved 8 February 2013.
- ↑ Nurin, Tara. "Craft Distillers Ask State to Repeal Prohibition Era Laws" in New Jersey Spotlight (15 October 2012). Retrieved 29 January 2013.
- ↑ Lorenzo, Rebecca. "New distillery looks to delight in Fairfield" (15 October 2015). Retrieved 26 October 2015.
- ↑ N.J.S.A. 33:1-3.
- ↑ New Jersey Division of Alcoholic Beverage Control. "ABC Frequently Asked Questions." (Question #1: What is The Division of Alcoholic Beverage Control?). Retrieved 26 January 2013.
- 1 2 N.J.S.A. 33:1-10
- ↑ N.J. P.L.2009, c.71
- ↑ 18 U.S.C. 1716(f)
- ↑ Sanburn, Josh. "Why Can’t the Post Office Ship Beer and Wine?" in Time (30 April 2012). Retrieved 7 February 2013.
- ↑ N.J.S.A. 33:1-2
- ↑ Kaiser, Geoff. "UPS and FedEx Favor Wine and Reject Beer When It Comes to Businesses Shipping to Consumers" on Seattle Beer News website (8 March 2010). Retrieved 7 February 2013.