NJ S1254

Creates a new "restricted retail food store license" allowing supermarkets in New Jersey to sell alcoholic beverages manufactured in-state, including products from limited breweries, wineries, farm wineries, cideries, meaderies, and craft distilleries

Requires retail food stores to derive at least 65% of total annual sales from groceries and foodstuffs to qualify for the license

Sets tiered initial licensing fees based on store size: $5,000 for stores under 5,000 square feet, $15,000 for 5,000-20,000 square feet, and $30,000 for stores over 20,000 square feet, with 75% going to the municipality and 25% to the Division of Alcoholic Beverage Control

Establishes a $1,000 annual renewal fee split equally between the state and municipality, and exempts this license from municipal population-based caps on retail liquor licenses

Permits alcoholic beverages to be displayed and sold anywhere on the retail food store floor, removing restrictions that typically limit where alcohol can be placed in grocery stores