LICENSING
What license does New Jersey require for out-of-state suppliers to sell to in-state wholesalers?
New Jersey requires out-of-state cideries to hold an Out-of-State Winery License, for those producing no more than 250,000 gallons. Larger cideries must either consign their products to a New Jersey wholesaler outside of the state or receive a wholesaler license themselves.
How much does New Jersey charge for the supplier license?
A New Jersey Out-of-State Winery License costs $938. Cideries that opt to establish a business presence in New Jersey can get a Wine Wholesale License (permitting distribution of all wine products) for $3,750. A Limited Wholesale License (permitting distribution of only beer and "naturally fermented wines") for $1,875, or a Plenary Wholesale License (permitting sale of all alcoholic products) for $8,750.
Does a cider supplier need to have money held in bond to obtain a license in New Jersey?
Depending on the license applied for and the amount of annual sales, a cidery getting licensed to sell in New Jersey may be required to hold a bond of between $1,000 and $1,000,000 in the state.
Does New Jersey require suppliers have an in-state representative, and/or is there a license available for their in-state representatives?
Yes, New Jersey requires salespersons employed by an out-of-state winery licensee or in-state wholesaler licensee to hold a Solicitor's Permit.
REGISTRATIONS
Does New Jersey require product brand/labels to be registered before they can be sold to in-state wholesalers?
Yes, New Jersey requires that cider products are registered per label before they can be sold to in-state wholesalers, which can be done by the brand owner or their authorized agent.
Does New Jersey require price posting?
Yes, New Jersey requires parties licensed as in-state wholesalers to regularly post their prices with the state.
Does New Jersey require Distributor Agreements to be filed with state regulators?
No, New Jersey does not require Distributor Agreements to be filed with state regulators. However, assigned wholesalers must be listed on the brand label registration.
Does New Jersey require territory assignments to be filed with state regulators?
No, New Jersey does not require territory assignments to be filed with state regulators.
Does New Jersey have rules on the exclusivity of territory or brand assignments between suppliers and their wholesalers?
No, New Jersey does not have rules on the exclusivity of territory or brand assignments between suppliers and their wholesalers.
DISTRIBUTOR RELATIONSHIPS
How can a supplier provide samples to retailers in New Jersey?
In New Jersey, a separate sampling permit is required for suppliers to provide samples to retailers. Wholesalers may then distribute clearly labeled samples through their New Jersey solicitors. Records must be maintained.
Are there franchise rules in New Jersey that can restrict a supplier's ability to negotiate or cancel their distributor agreements?
No, in New Jersey there are not franchise rules that can restrict a supplier's ability to negotiate or cancel their distributor agreements.
Does New Jersey have sourcing restrictions (Primary American Source, authorized brand dealer) on from whom wholesalers can purchase?
Yes, New Jersey has sourcing restrictions on from whom wholesalers can purchase.
Does New Jersey require cider to come to rest at a wholesaler warehouse before being delivered to retailers?
Yes, New Jersey has sourcing restrictions on from whom wholesalers can purchase.
FILINGS
What is New Jersey's excise tax rate on sales of cider?
In New Jersey, ciders with an ABV of 7% or less are taxed at $0.15 per gallon, and ciders with an ABV greater than 7% are taxed at $0.875 per gallon.
Does New Jersey require out-of-state suppliers to remit the excise taxes?
No, New Jersey does not require out-of-state suppliers to remit the excise taxes unless they operate as a licensed New Jersey-based Cider Wholesaler.
What follow-up reports are out-of-state suppliers required to file with New Jersey on their sales to in-state wholesalers?
New Jersey requires out-of-state cider suppliers licensed as a New Jersey wholesaler to file the R-2 Wholesalers Tax Sales Report.