Small-Batch Craft Spirits Distillery

Local bars, restaurants, delis, farm shops and gift shops, plus individual customers buying online or at markets.

Wholesale sales of bottles to trade customers, plus higher-margin direct sales online and at events. Duty is paid on the spirits you release for sale.

• Careful, consistent production
• Recipe development and taste testing
• Selling to trade customers
• Record keeping and paperwork

• Distilling needs HMRC approval and you must account for excise duty, so check this before buying equipment
• Selling alcohol usually needs a premises licence and a personal licence holder, check with your local council
• Planning, fire safety and storage rules for flammable alcohol vapour, check with your council and fire service
• Labelling and bottle size rules, plus public liability and product liability insurance
• Cash tied up in stock and duty before sales come in, plan your cash flow carefully

Startup costs are typically around £40,000 to £200,000, depending on your equipment, site and opening stock. These are estimates only. Remember that cash can be tied up in stock and duty before sales come in, so plan your cash flow carefully.

Monthly revenue is typically around £3,000 to £15,000, depending on how much you produce and how much you sell to bars, shops and online customers. These are estimates, not guarantees, and stock and duty costs need to be covered from sales.

Things to check include HMRC approval for distilling and accounting for excise duty before buying equipment, a premises licence and personal licence holder via your council, planning, fire safety and storage rules, labelling and bottle size rules, and insurance.