NORTH BRUNSWICK — Several central New Jersey restaurants have been accused of substituting cheaper brands of alcoholic beverage for premium brands.
Operation Swill, a raid executed on May 22 by more than 100 Division of Alcoholic Beverage Control (ABC) and Division of Criminal Justice investigators, targeted 29 establishments that were allegedly using nonpremium brands but charging customers for the more expensive ones, according to a press release from Attorney General Jeffrey Chiesa and ABC Director Michael Halfacre.
Brunswick Grove in East Brunswick and Café 34 in Matawan, as well as TGI Fridays locations in Old Bridge, North Brunswick, Freehold, Marlboro, Hazlet, East Windsor, Piscataway and Linden, were named in the investigation.
Specifically, the ABC investigation indicates that these establishments were allegedly engaging in a practice of filling premium brand bottles with nonpremium brands in an effort to deceive the customer and increase profits. The customer paid for the premium brand but was instead — unbeknown to the customer — poured the nonpremium brand, according to the release.
“This alleged scheme is a dishonest ruse to increase profits, and it is a slap in the face to the consumer,” Chiesa said. “Consumers should have the peace of mind of knowing that they will get what they spent their hard-earned money on every single time — no exceptions.
“I believe Operation Swill will go a long way toward restoring that peace of mind, and will also serve as a warning to anyone currently engaging in — or thinking about engaging in — this fraudulent practice,” Chiesa said.
The ABC seized approximately 1,000 bottles, and that inventory is being securely stored with the ABC Investigations Bureau. The alcohol will go through more rounds of testing by the ABC and the manufacturers.
The operation focused on the 29 establishments because of information from confidential informants, consumer complaints, and testing of samples conducted by both the ABC and the manufacturers of the brands, according to the press release. Some had complaints filed against them already, and some were chosen at random, the release said.
The samples were taken in January and February when ABC investigators visited 63 licensed establishments across the state and covertly took 150 samples. The undercover ABC detectives visited these establishments and secured samples of premium brand spirits by paying for drinks ordered “neat” — that is, with no ice or mixer, according to the release.
Following the sample collection in January and February, the ABC tested the 150 samples using a new testing technology —- a device called the True Spirit Authenticator. According to the release, this machine provides a preliminary analysis of samples in a short span of time.
In addition, the samples were sent to the laboratories of the brand manufacturers, where additional testing of the samples was conducted, officials said. It was found that of the 150, 30 samples were not the brand they purported to be.
“These cases can be difficult to prosecute because of the fleeting nature of the offense, and evidence of the offense is nearly impossible to collect after the fact,” Halfacre said. “The ABC made the determination that the best way to address and eradicate this problem was with a coordinated effort like Operation Swill.”
The establishments had seven days to provide sales and invoice records that include information about the 20 brands of interest. They also had to provide information about the employees who were working on the day that samples were taken, and the retail prices from the last nine months of the targeted brands, the release said.
Penalties for serving a drink other than ordered range from a five-day suspension for the first offense to a 15-day suspension for the third offense.
If further testing proves any of the seized bottles did not contain the labeled alcohol, that bottle could have multiple violations based on the potential drinks that could have been poured, the release said.
ABC regulations could also allow for a 30- day suspension for any illegal activity on the licensed premise, and those locations could also face a 30-day suspension for not cooperating in the investigation, according to the press release.
The ABC has a toll-free hotline for people to report illegal activity to ABC’s Investigative Unit. Anyone with information is encouraged to call 1-866-713-8392. All information received via the ABC hotline will remain confidential.