darkchaser

This is a pretty loose question and it depends how hands on you wish to be. If it is whiskey for instance, are they sending you filled barrels, white dog, product already bottled? A wholesaler permit is the permit a distributor would have. A distributor would only be getting bottled finished goods. If you were taking product in bulk form, you would need a DSP and some sort of bottling equipment and liquid transfer equipment. If you wanted to be a pure marketing company, I suppose you could have the FOB to a distributor be from the actual producer. Hope that helps.

That does help, thank you. So if I were getting product already bottled, I would need a wholesaler license - but if I live in a control state, the only establishment I could sell to would be the liquor division? If I were buying bulk and bottling in my building - besides bottling and transfer equipment - what kinds of things would I need to get my basic application approved (at federal level) for a DSP? Would one storage room for the bulk, one room for bottling and labeling, and one room for storage of bottled product be sufficient as far as "layout" goes? Obviously I would need locks on the 3 spaces and maybe signs? Also, sprinklers? And Insurance? On which room? Sorry for so many stupid questions. I've been reading the regs a little bit at a time and not moving on until I fully understand and I haven't quite gotten through them yet. Some clarity would be nice

We purchase NGS to make liqueurs. We saved a lot of money starting out this way. Not just the costs of a still, fermenters, mash tanks, etc but the space taken up costs extra square footage costs extra rent. And NGS is not very expensive, so it's not as if there's a huge amount of savings on the cost of materials given the time & energy needed to distill it yourself.

With that said, you'd want to think about the story you'll be telling to your customers. There's a gazillion vodkas out there. Why is yours going to be "special" if you're just using NGS you bought? Why should they purchase your stuff when the macro brands are still going to be cheaper, or there's another dozen "pot stilled artisan magic" brands next to it?

It does sound like the space you've got is ideal to work with (especially if you own it already). But if the story about your brand is "it's local," and it turns out not to really be local, your consumers are going to be disappointed. There's plenty of ways to market vodka, but that's also a crazy-competitive category. Maybe you could make a big deal about your water source?

This is very sound advice I think. So I have a question for you; what were the requirements for you to open (starting with the most costly) taking into consideration that you started without distilling equipment? I know it's in the regs and I'm reading more and more all the time - but I'm sure you know how confusing they can get. That's why I only read a bit at a time and only move on when I fully understand.

So I have a question about contract distilling. What kind of permit/license does one need in order for someone else to produce their product. Wholesaler permit? What kind of equipment would be at the operating location - basically a warehouse right? Then, it's the operators job to get the product to distributors right?

I can seriously recommend don't buy glass from China unless you specifically know the factory and the factory is owned and/or run by westerners. You will be sorry. You will receive excellent pricing, a "golden sample", and then you will be sorry. Very sorry.

Thanks for the tip

Why not just have someone else manufacture your product under contract and focus on building your brand? Why even bother with the real estate and manual labor involved when someone else probably has better economies of scale?

The still represents a small fraction of your startup budget, maybe slightly more once you factor in mashing equipment, fermenters, and pumps. You would likely still face all the same buildout costs as a distillery, because you will be handling bulk spirit. From an authority/jurisdiction perspective, you might still be exposed to all the same budget-busting expenses as everyone else sprinklers, building and fire code gotchas, multi-month expense payments while awaiting licensing, etc etc.

Well, I think that's a great idea - though I live in a town of about 500 people. Nearest distillery is in another state and is 4 hours away. Also, on the plus side - I own the building. It has sprinklers and I once rented it to a winery - which I know is different but they have all sorts of barriers and "bond" spaces and "warehouse" spaces fenced off (all of which are still in place).

Some people believe that just proofing down NGS is lame. There is no craft in that. Starting a "distillery " for under a 100k is what they are referring to. Which is really not hard to do. Just depends on what size distillery and if you are willing to work. Did I mention proofing down NGS is lame.

I'm sure it's lame. I agree with you. My question referred to saving money on "startup costs" to get open and selling product while you build your "distillery". I'm not saying that there will never be 100K into it. I'm trying to think of the cheapest way for me to start. Starting this way could also have the added benefit of figuring out the taxes and taking care of all the accounting an reporting stuff - then I wouldn't have to figure out that while spending my time distilling. Once I've got it figured out I can build the still. Did I mention that I agree it's lame?

I'm in under 100 and making vodka the hard way.

The only pre made alcohol that enters my facility is in the form of beer to go in my fridge.

Thats awesome!!

We can make a custom 700ml and 500ml mold for only $1500. At no extra cost, we can emboss your company logo, name, or design into the glass. Made in China. Call me at 561.818.8977 to discuss the details.

How do I get prices on some of the bottles that are pictured on your website?

So let me get this straight...you take your GNS, filter, dilute to 80 proof, add invert sugar to ratio and then bottle?

If a person was just diluting GNS down to 80 proof and filtering, would they need a still? I only ask because I see everywhere that people are saying that they can't start for less than 100K. Wouldn't this significantly reduce the equipment costs? Why not start with that and once you've made a little money - upgrade to a still? Forgive my naivety. What kind of expenses would a person have besides rent, utilities, fees and licensing, product, etc.?