Small-Batch distillery selling to bars and shops

Bars, restaurants, liquor stores and, where your state allows, distributors or online and direct buyers.

Wholesale sales per case or bottle to venues and stores, often through a distributor or direct where your state allows, plus occasional private-label or special-release runs.

• Production and process care
• Sales and relationship building with venues
• Organizing production schedules and inventory
• Record keeping for compliance

• Federal TTB permit as a distilled spirits plant plus state licensing, both required before you produce or sell, so check timelines
• Many states use a three-tier system, so check whether and how you can sell direct or must use a distributor
• Label approval from TTB is generally needed before bottles can be sold, so check the process
• Fire, building and zoning rules for flammable liquids and equipment, so check with your local fire marshal and city or county
• Slow cash flow because aged spirits take time and distributors pay on terms
• Insurance: general liability, product liability and property cover, so check with a broker

Estimates suggest startup costs typically around $60,000 to $300,000, depending on your equipment, the industrial unit you lease, and licensing, label and insurance costs. Aged spirits can also slow your cash flow.

Estimates suggest monthly revenue typically around $4,000 to $20,000, depending on how many spirits you make and how many bars, restaurants and stores you sell to. Distributors often pay on terms, so plan for slower cash flow.

Check the federal TTB permit as a distilled spirits plant and your state licensing before you produce or sell. Also check whether your state's three-tier system requires a distributor, TTB label approval, and fire, building and zoning rules.