Protecting Your Brewery, Brew Pub or Distillery’s Trade Secrets, Confidential Information and Customers From Former Employees

Your company’s recipes, methodologies and customer base are what distinguish it from the competition. If this information is disclosed to third parties, it could detrimentally hurt your business because a competitor could seemingly replicate the same or similar beverage. It is important that you protect your company’s trade secrets, customer relationship and other confidential information from employees, especially the brew master or distiller, in the event the employment relationship ends.

Federal Government’s Restrictions on Production, Location, and Use of Plants for the Production of Distilled Spirits

If you are considering venturing into the distillery business, in New Jersey, Pennsylvania, or any other state, it is important to know what the Federal Government’s rules, regulated through the Alcohol and Tobacco Tax and Trade Bureau (“TTB”), provide for the location, use of plants and production of distilled spirits. The following article highlight’s the TTB’s rules and regulations:

Non-Compete Agreements Important for Protecting Beverage Secrets

Attorney Marshall T. Kizner, Esq., member of Stark & Stark’s Beer & Spirits and Bankruptcy & Creditors’ Rights groups, authored the article “Non-Compete Agreements Important for Protecting Beverage Secrets,” which was published by Beverage Industry Magazine on September 15, 2014.

The article discusses the why it is so important to have employees agree to non-compete and confidentiality agreements in the brewery and spirits trade. Mr. Kizner said, “Nothing is more important than protecting your product’s recipes and methodologies.” “They are the most valuable asset your business has.” Having non-compete and confidentiality agreements in place could protect these assets, and prevent competitors from imitating your product. Mr. Kizner also says that it is important to periodically review your non-compete and confidentiality agreements “to ensure that they comply with new legal decisions.”

If you would like to read the full article, please click here.

Proposed FDA Rule Could be Troublesome for Brewers

For many years, farmers have purchased brewers’ leftover grains to use as animal feed. This relationship is beneficial for both the environment and the parties – it allows the farmers to feed their animals at a reasonable low cost, and it gives breweries a way to dispose of their used grain. It’s a win-win for everyone.

Pennsylvania Liquor Control Board’s Nuisance Bar Program

If you’re liquor licensee in Pennsylvania, you’re likely subject to the Pennsylvania Liquor Control Board’s (PLCB) Nuisance Bar Program (“NBP”). The NBP was established in 1990 and is run by the PLCB. The NBP provides a method for the PLCB to manage licensed establishments that may have “abused” their licensing privilege. The program’s objective is to help licensees avoid being labeled as a “nuisance bar” by changing their business practices and to close establishments that are determined to be a “nuisance.”

Restricted Licenses in New Jersey Affecting Breweries and Wineries

In a prior post, the Restricted Brewery License was reviewed. This license permits the operation of a “brew pub” on the licensed premises. In this respect, the brew pub may supply malt alcoholic beverages that it brews on premises for consumption in an adjoining restaurant that is operated regularly and principally for the purpose of providing meals to its customers and having kitchen and dining facilities. As previously discussed, the holder of a Restricted Brewery License may only produce up to 10,000 barrels for on-premises consumption or sale to licensed wholesalers, and this license may only be granted to a party that also owns a Plenary Retail Consumption License that is operated in conjunction with the above-referenced restaurant.

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