Start a small-batch craft distillery with a tasting room

Make gin, vodka or whisky in a rented unit and sell to bars, stores and visitors.

Copper stills and barrels inside a working distillery.
Startup costC$150k to C$750k
Monthly revenueC$6k to C$30k
Time needed40+ h/week
First incomeMonths
  • C$150k-750k
  • Full-time
  • Own premises
  • Licence or permit needed

Estimates for a small start in Canada, not guarantees.

What it is

A small distillery in a rented industrial unit or commercial space. You buy grain, sugar or other base ingredients, ferment and distil them, then bottle and sell your own spirits. A small tasting area or shop lets visitors try and buy.

Your first three steps

  1. Take a short distilling course or work a few shifts at an existing craft distillery to learn the process
  2. Contact your provincial liquor regulator and the CRA to find out what licences and approvals you need and how long they take
  3. Write a business plan with equipment quotes, a unit that is zoned for distilling and a first product range, then talk to lenders or investors
Who pays

Bars and restaurants, provincial liquor stores, local gift and specialty shops, and visitors who buy bottles or cocktails on site.

How it makes money

Wholesale sales to bars and provincial liquor boards, plus higher-margin direct sales of bottles, tastings, tours and cocktails where your province allows it.

Skills that help
  • Production and quality control
  • Branding and sales to venues
  • Budgeting and stock planning
  • Attention to safety
Watch out for
  • Federal excise licensing: check with the CRA about the spirits licence and security requirements before you distil anything
  • Provincial rules on selling, tasting rooms and listing in liquor stores differ a lot, so check with your provincial liquor board
  • Municipal zoning, fire code and building approvals for stills and flammable alcohol
  • Home distilling is not allowed without the right licence, so do not start before you are approved
  • Long wait before revenue, especially for aged spirits like whisky
  • Commercial general liability and property insurance, and WCB/WSIB coverage once you hire (rules vary by province)

Deep research report · Canada

Everything you need to start: small-batch craft distillery with a tasting room

Researched with live web search for Canada: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

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Questions people ask

How much does it cost to start a craft distillery in Canada?

Estimated startup costs are typically around $150,000 to $750,000, depending on your unit, equipment, tasting room fit-out and licensing. Revenue can take a long time to arrive, especially for aged spirits like whisky, so plan your funding carefully.

How much revenue can a small distillery make?

Estimated monthly revenue is typically around $6,000 to $30,000, depending on your products, sales to venues and liquor stores, and tasting room visitors. There can be a long wait before revenue starts, especially with aged spirits such as whisky.

What licences do I need to open a distillery in Canada?

Check with the CRA about the federal excise spirits licence and security requirements before you distil. Also check provincial liquor board rules, municipal zoning, fire code and building approvals, and insurance. Home distilling is not allowed without the right licence.

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Photo: It_was_a_pleasure on Pixabay

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