Planning a craft distillery: the first decisions

Decide the product and the timeline

Spirits fall into two timelines. Unaged spirits such as vodka, gin and white rum can be sold soon after distilling. Aged spirits such as whisky and aged rum must mature. In many categories the law sets a minimum time in oak: Scotch, for example, must age at least three years. That means years of cost before revenue.

Many new distilleries sell a gin or white spirit first to earn cash while whisky ages. Decide which products you will make. Decide how long you can fund the wait.

Be clear about the category you want, because each has its own rules on ingredients, strength and ageing. Whisky, rum, brandy, gin and vodka are defined differently from country to country. Read the definition for your market before you design a product. Write your plan around it.

Make your own spirit or buy it in

You can ferment and distil from grain, fruit or sugar. Or you can buy neutral spirit and redistil it with botanicals, as many gin producers do. Making your own gives control and a story, but it needs fermenters, a still and more skill. Buying in lowers the cost of entry and the learning curve, but it may limit what you can claim on the label.

Check how your market's rules define what a spirit may be called if it was made from bought-in alcohol.

Pot still, column still or hybrid

A pot still distils in batches and keeps more flavour from the wash. A column still runs continuously and makes a lighter, higher-strength spirit. A hybrid has a pot with a short column. Which suits you depends on the product: malt whisky and many rums use pot stills, while vodka and neutral spirit rely on columns.

Still size and material, usually copper, matter for flavour and for cost. Smaller stills are easier to run and learn on.

Fermentation feeds the still. A clean, well-fermented wash gives a better spirit than a rushed one, so size your fermenters and your yeast management as carefully as the still itself. Water for cooling the condenser is also a real requirement, so check supply and drains for the site.

Fire and safety

Ethanol vapour is flammable. A distillery is classed as a hazardous place in many countries. Plan electrics, ventilation, gas detection, fire suppression and spill control with a qualified engineer from the start. Separate the still room from storage. Keep sources of ignition out.

Insurers and local authorities will ask about this. Ask early, since changing a building later is costly.

Remember dust and grain. Milled grain can burn or explode in a cloud if it is badly handled. Spirit can be stored only up to limits set by local rules. A fire engineer who knows distilleries is worth the fee.

Licensing and duty

Spirits are usually among the most tightly regulated alcohol products. Expect separate approvals for production, storage, bonded warehouses, sales and duty. The process and the names differ by country and change, so check with the national regulator or a licensing adviser. See brewery licensing: the steps most countries share for the common shape.

Spirits attract tight controls because of tax. Expect to account for every litre produced, stored, sold and lost. Good records from day one make audits easier and protect your licence.

Maturation, space and cash

Casks take space. Spirit in them is stock you cannot sell yet. Plan a warehouse, a way to track each cask and an allowance for evaporation, which varies with climate. Keep cash for rent, wages and duty through the waiting years.

Read brewpub or production brewery for a comparable choice about models and start-up costs founders forget for costs that distilleries share with breweries.

Cask supply is another cost. New oak, ex-bourbon barrels and other casks differ in price and flavour. Their availability changes over time. Test small casks for faster maturation, but remember that small casks give a different result from large ones.

Skills you need on day one

Distilling is a craft of cuts: separating the early heads, the heart and the late tails of a run. The heart is the part you keep. Judging the cut by smell, taste and strength takes practice. Learn it before you scale, ideally with an experienced distiller.

Make small test runs, keep notes and taste with discipline. Tasting should always be responsible, with water to hand and no driving afterwards.

Common questions

How long does it take to start selling whisky?

It depends on the category. Many whiskies require several years in oak. Scotch must age at least three years. Many distilleries sell unaged spirits in the meantime.

Can I buy spirit and sell it as my own?

Rules on labelling differ by country. Redistilling bought neutral spirit is common for gin, but claims such as distilled by us may be restricted. Check with your regulator.

Is distilling more dangerous than brewing?

The fire risk is higher, since ethanol vapour is flammable. Design and train for it from the start.