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New Jersey

Wholesale Laws for New Jersey

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Last Updated: Jan. 24, 2024

Summary

The Division of Alcoholic Beverage Control (Div. of ABC or ABC) is the unit of State Government that is charged with regulating the commerce of alcoholic beverages within the State of New Jersey.

The Division of ABC is headed by a Director, who is appointed by the Governor with the advice and consent of the Senate. The Director is required to supervise the manufacture, distribution and sale of alcoholic beverages in such a manner as to fulfill the public policy and legislative purpose of the Alcoholic Beverage Control law.

Laws & Rules:

Supplier Licensing

Required:  No

Out-of-State suppliers are not required to obtain a license to ship wine products to wholesalers in the state.

Product Registration

Required:  Yes

Fee:  $23

Approval:  7-14 days

Expiration:  Dec. 31st of each year

Amendment Required: COLA change, distributor change, add or modify vintages, size adjustment, new size, UPC change

Amendment Fee: $10 per product

Register using the Division’s online licensing system, POSSE ABC. Repeat vintage wines of the same brand are not required to be registered and are not subject to the brand registration fee but each vintage must be listed. COLA’s or letters of authorization do not have to be sent to the Division, but must be made available if requested.

Beginning Jan. 1, 2023, NJ ABC will begin collecting UPC codes and/or TTB COLA numbers for all brand renewals and new product registrations. If a product has both numbers, both will be required when renewing or registering a new product.

An amendment application allows a brand registrant to add a distributor(s) to product(s) that they currently have registered. You will need the brand registration number for each product that you are adding a distributor too, and the full name of the distributor and their license number.  If a product will be sold through the DTC channel the Out-of-State New Jersey Winery License holder must be added as a distributor.

An amendment application must also be filed when there is a change or modification to the variety, UPC, COLA or unit information (vintage, varietal, ABC, size etc.) of an already registered product.

There is $10 fee to amend a brand registration.

 

Resources:

Franchise "Monopoly Protection" Law

Franchise Law:  Yes

Exclusive Territories:  Not Required

Please review the law in its entirety and consult legal counsel prior to taking any action.

New Jersey does not allow a supplier to discriminate amongst their authorized distributors. If a supplier refuses to sell to a distributor with whom the supplier has an agreement the wholesaler may petition for a ABC hearing on whether the refusal is “discriminatory,” which in practice means whether there was good cause for the refusal. ABC has the authority to require the supplier to continue to provide the product to the wholesaler, if it finds discrimination and that the distributor has the ability to pay. Refusal by the supplier (winery) to comply means ABC will forbid all wholesalers to buy product from supplier until it complies.

The distributor can sue the supplier for damages, including attorneys’ fees, and any other available relief if the supplier violates.

Note that New Jersey also has a general franchise practices act (NJSA 56:10-1 et seq. Franchise Practices Act) which is not specific to wine.

Citation:

Supplier Reporting Requirements

Required:  No

Suppliers are not required to report sales or shipments of wine to licensed New Jersey wholesalers.

Sales Representative Licensing

Available:  Yes

Fee:  $25

Expiration:  Aug. 31st of each year

A NJ wholesaler license is a requirement for holding a solicitors permit. If a winery is a licensed NJ wholesaler, then a solicitor’s permit is required to offer for sale or solicit any order in New Jersey for the purchase or sale of any alcoholic beverage whether such sale is to be made within or without the state. The fee for a solicitor’s permit is $25 per year. A separate fee shall be paid for each licensee designated in the permit.

All contracts of employment between Class A (suppliers) or Class B (wholesalers) licenses and their solicitors shall be in writing and shall set forth the salary, commission or other compensation of any kind agreed to be paid to such solicitor. Contracts must be maintained by the employer for a minimum of three years from the date of execution. On or before May 31 of each year, each holder of a Class A or Class B license employing any solicitor during the preceding calendar year must file a statement listing all compensation, itemized as to salary, commission, reimbursed expenses, prizes, awards, bonuses, or otherwise, paid to each such solicitor by such manufacturer or wholesaler during that calendar year.

Resources:

Self-Distribution

License:  Allowed with restrictions

License Fee:  $938, plus additional fee of $100-$1000

License Expiration:  1 yr from issue date

Label Registration:  Required

Excise Tax:  Required

Reporting:  Required

As of May 1, 2012 the holder of a New Jersey Out-of-State Winery license can sell directly to retail accounts upon payment of an additional fee ranging from $100-$1000. The fee is based on a winery’s annual production. Common carriers CANNOT be used for self-distribution. The fee for a New Jersey Out-of-State Winery license is $938 per year.

Note that wineries producing more than 250,000 gallons per year are prohibited from holding a New Jersey Out-of-State Winery license.

Resources:

Trade Practice Advisories

New Jersey Department of Law & Public Safety
Division of Alcoholic Beverage Control
P.O. Box 087
Trenton, NJ 08625
Phone: (609) 984-2830

 

Recent Compliance Alerts

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This information is intended for winegrower licensees only. All information above is provided as an informational aid and is not legal advice. Data may be out-of-date or incomplete. Please consult a lawyer before taking any action.