Once you know the shape and size of your equipment and have dimensions of the space it will occupy, it’s time to arrange it all. Attention to the above will prevent expensive remodels and fines down the road. Ventilation is another key compliance area for most distilleries. Watch for specific building requirements surrounding the electric elements and plumbing in your facility. Entities such as your city, the fire department, the health department and the Alcohol and Tobacco Trade Bureau will need to approve your plans first. You’ll need permits from multiple entities, and each will perform an inspection of your plans or facility to ensure adherence to the law. It’s no secret that the craft spirit industry is much more heavily regulated than even other craft alcohol sectors. Prepare for the worst – your budget should include cash reserves to cover any disasters or incidentals. Be sure to include the cost of permitting, utilities, licensing, and other expenses. Then, navigate through your plan item by item to build a detailed budget. Before you make purchasing decisions, compile a detailed purchase plan that includes floor space, equipment, and more. Many craft distillers enter into the business with a great story and a premium product but fail to understand just how much really goes into the purchase of a space, equipment, permit fees, taxes, and more. It’s essential to arrange your facility in a way that not only increases your productivity but ensures that you’re staying within regulations.īefore you begin, address these six concerns: BudgetingĪ crucial part of any distillery facility set-up is the potential cost of it all. One of the most important keys to a successful and profitable operation is optimizing your equipment layout. Whether you’re considering opening a distillery, in-process, or even upgrading your equipment, it’s essential to address the functionality of your facility first. The numbers don’t lie – Americans are beginning to value small-batch, local, family-owned, craft spirits with a story, just as they’ve done with the craft beer industry.Īs anyone currently operating a craft distillery soon learns, however, maintaining a successful distillery goes far beyond the story behind the business and the flavor of the spirit – although those aspects are obviously crucial for sales and marketing purposes. Craft operations have also seized an ever-growing share of the spirits market at 4%, up from just 1.1% in 2012.
Perhaps more than anyone, craft distillers understand the meteoric rise of the craft distillery industry in the US the most recent data shows operating craft distilleries in the country at numbers quickly approaching 2,000, a staggering figure when you consider that there were just 57 in 2005.
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