Greetings from Michigan

[Bastian]

Wanted to say hi to the members here. I've enjoyed reading the forums and posts, pleasant and informative. Ann Arbor has been a bit quieter since the Leopold Brothers left.

[Bastian]

I should mention that we are working to start a micro distillery in SE Michigan, Washtenaw County and are working to complete our Business Plan for the Small Business Development Association. I'll also be at the next MSU Distilling workshop at the end of March. Anyone else considering a distillery in Michigan? I know Ugly Dog just opened here.

[bluestar]

I should mention that we are working to start a micro distillery in SE Michigan, Washtenaw County and are working to complete our Business Plan for the Small Business Development Association. I'll also be at the next MSU Distilling workshop at the end of March. Anyone else considering a distillery in Michigan? I know Ugly Dog just opened here.

We are, and are in a similar stage of development: Finished 2nd draft of business plan, looking at final selection of site, discussing with towns and county about their requirements (this is the most challenging aspect right now), working on first formulations, setting up web presence, preparing to purchase distillation apparatus, etc. Enjoy the workshop, I attended last year. We will be setting up in SW Michigan. Would be happy to discuss with you in more detail what we have been working on.

[DPM]

We are, and are in a similar stage of development: Finished 2nd draft of business plan, looking at final selection of site, discussing with towns and county about their requirements (this is the most challenging aspect right now), working on first formulations, setting up web presence, preparing to purchase distillation apparatus, etc. Enjoy the workshop, I attended last year. We will be setting up in SW Michigan. Would be happy to discuss with you in more detail what we have been working on.

Bluestar, do you know the maximum proof of Distill Spirit in MI? My product is 120 Proof and I want to distribute my product to MI next year. Thanks

Po

[bluestar]

Bluestar, do you know the maximum proof of Distill Spirit in MI? My product is 120 Proof and I want to distribute my product to MI next year. Thanks

Po

I know you can sell 151 proof in Michigan, but not 190 proof (GNS). Everclear sells their 151, for example, but not the 190.

[Bastian]

Two more Michigan related questions. We are hoping to maximize on these two MI small distillery clauses:

1)May sell spirits to consumers for consumption on the manufacturing premises.

2)May sell spirits to consumers for off-premises consumption (take-out) for not less than the uniform price set by the Commission.

The way I understand 1), we can sell drinks like a bar, is that true?

For 2), this means that we avoid paying 65% markup, but what do we owe the state of MI, is it 12%?

[Denver Distiller]

Ann Arbor has been a bit quieter since the Leopold Brothers left.

Well come on, to be fair we weren't that loud of a place.

Good luck up there!

[bluestar]

Two more Michigan related questions. We are hoping to maximize on these two MI small distillery clauses:

1)May sell spirits to consumers for consumption on the manufacturing premises.

2)May sell spirits to consumers for off-premises consumption (take-out) for not less than the uniform price set by the Commission.

The way I understand 1), we can sell drinks like a bar, is that true?

For 2), this means that we avoid paying 65% markup, but what do we owe the state of MI, is it 12%?

That has been my interpretation, but I am having it reviewed by legal counsel. I don't think you can quite run like a regular bar. On the

other hand, there is another clause that allows you to operate or coordinate operation on premises of a restaurant, and in that case, the

restaurant would be running a bar. And, like a winery, you can set up a tasting room off premises. Again, I am having all of this reviewed

by legal counsel in the context of reviewing our business plan, and I would suggest you do the same.

[Denver Distiller]

Unless the reg's changed.... you can run a distillery, bar, brewery, and winery all under one roof. We did it for years.

[bluestar]

Unless the reg's changed.... you can run a distillery, bar, brewery, and winery all under one roof. We did it for years.

Shouldn't have changed since 2008. I presume you had to get licensed for each, but you did so as a single entity, and thus avoided

the limitation that you can not have an interest in another licensed vendor: in this case because it is one vendor. The brewery being

a bar is explicit in the code, but the distillery did not seem to be, and that is what I am looking for legal clarification, since a tavern

license is not cheap, and we don't plan to be a brewery.

[Bier Distillery]

I'm wondering if someone can help me better understand the following for Michigan.

Let's say the COGS is $10.00. Let's say the Wholesale Price is $15.54. If I understand the math right, the Base Price is $25.64. For bottle sales (#2) from the tasting room, I'd owe 12% on the Base Price ($3.08). The Minimum Retail Price is $30.00. So my profit per bottle is $30 - $3.08 - $10.00.

Is this correct?

If I use a bottle of mine for mixed drinks from the tasting room do I just owe the federal ($2.14) and state taxes ($3.08) on it?

Two more Michigan related questions. We are hoping to maximize on these two MI small distillery clauses:

1)May sell spirits to consumers for consumption on the manufacturing premises.

2)May sell spirits to consumers for off-premises consumption (take-out) for not less than the uniform price set by the Commission.

The way I understand 1), we can sell drinks like a bar, is that true?

For 2), this means that we avoid paying 65% markup, but what do we owe the state of MI, is it 12%?