Contract Distilling

[darkchaser]

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?

[jeffw]

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.

[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

[jeffw]

If you were to look around you could find most of these question are answered in the forums. You still would not need a wholesaler's license, but probably would stick with a DSP. Sprinkler's is a zoning/fire code issue. Do you plan to bottle more than 240 gallons in one room. In a barrel there is an exemption, but everything else counts towards a maximum allowable quantity. Your layout sounds fine but you could do all that in one room is you want to.

[Dehner Distillery]

call if you want I will glad to help answer your questions.

515-559-4879