Though it may be tempting for business owners of retail liquor licenses throughout New Jersey to purchase the alcohol they sell at their own establishments from any number of sources, New Jersey ABC regulations largely prohibit business owners from doing so.

According to New Jersey Administrative Code 13:2-23.12(a), a retail licensee shall purchase alcoholic beverages only from a manufacturer or wholesaler. Otherwise a special permit must first be obtained.

Generally the sale of alcoholic beverages from one retail to another is prohibited by N.J.A.C 13:2-23.12(b), unless there is a passage of title from transferor to transferee, in which case once again a special permit would be needed from the ABC.

In order for retail licensees throughout the State of New Jersey to avoid unintended consequences and in order to maintain an unblemished record on their license, it is important for them to avoid buying their alcoholic beverages from other retail licensees. What may start out as a short term money saving decision could quickly turn into a major loss of profits as licensees face the suspension of their license.

If you have a question regarding the sale of alcoholic beverages as a New Jersey retail licensee or related liquor license issues, it is recommended you consult with an experienced New Jersey ABC/liquor license attorney.