New Jersey Assembly Bill A2432

New Jersey 2022-2023 Regular Session

• Introduced: 2/14/22
• Refer: 2/14/22

Caption

Establishes license to allow wineries that produce more than 250,000 gallons per year to directly ship wine to consumers.

Impact

The introduction of this bill aims to modernize and regulate the wine shipping landscape in New Jersey, allowing established wineries to effectively participate in the growing direct-to-consumer market. By permitting these larger wineries to ship up to 12 cases of wine annually to anyone over 21, the bill not only helps wineries boost sales but also enhances consumer options for quality wine choices. It is anticipated that this change could stimulate economic growth within the wine industry and create a more competitive marketplace.

Summary

Assembly Bill A2432 seeks to amend existing New Jersey laws concerning the direct shipment of wine by establishing a new license for wineries that produce over 250,000 gallons annually. Under current law, only small plenary wineries and farm wineries, which produce 250,000 gallons or less, are allowed to ship wine directly to consumers. A2432 would enable larger wineries, both in-state and out-of-state, to ship wine directly to consumers, thereby expanding consumer access to a wider variety of wines.

Contention

Despite its potential benefits, the bill may face opposition from smaller wineries that fear increased competition from larger producers could threaten their market share. There are concerns that the passage of A2432 could lead to a significant shift in the wine market dynamics, wherein smaller wineries are unable to compete on price or selection. Stakeholders might argue that maintaining a cap on production at 250,000 gallons helps safeguard local businesses and preserves the character of the New Jersey wine industry, potentially leading to debates in the legislative process.