How to open a distillery in the UK?

How much does it cost to start a distillery in the UK?

How much money do you need to start a distillery? Even a micro-distillery requires significant startup capital. A high-quality still may cost anywhere from £50,000 to over £200,000.

How profitable is a distillery?

Once you have your delicious spirit product, the rest is all marketing. If you run a craft distillery, you can expect gross profit margins of 30-45% a year. It is not unlike starting a brewery, instead just using slightly different equipment to distill rather than ferment.

How to set up a distillery in the UK?

Obtain an Alcohol Production Licence (A.K.A Distillers Licence) Adhere to Health and Safety Regulations. Obtain environmental permits where necessary. Comply with Trading Standards as well as labelling and packaging requirements (e.g. list ingredients, allergens, alcoholic strength, and producer details on labels)

Can you legally distill your own alcohol in the UK?

2.5 Applying for a distiller's licence

We will not issue a distiller's licence to produce spirits for your own use. The production of spirits by a person who is not licensed is an offence for which there are financial penalties.

What To Know Before Starting A Distillery

Do you need a license to brew alcohol in the UK?

If you produce beer commercially, and its strength exceeds 1.2% alcohol by volume (ABV) you are required to pay Beer Duty. To do this, you must register as a brewer with HMRC to receive a certificate to brew.

Do I need a licence to distill gin?

Distiller's Licence (HMRC): It is illegal to manufacture spirits by any process without an excise distiller's licence.

How much is contract distilling UK?

Contract Distilling Costs & Minimum Order Volumes

Distilling of your Ferment: from £1.00 per litre into the still. Full Service Bottled: from £4.00 per bottle. Full Service Per Litre: from £5.00 per litre.

How much do distillers get paid in the UK?

A mid-career Distiller with 5-9 years of experience earns an average total compensation of £28,491 based on 7 salaries.

What do you call someone who owns a distillery?

Master distiller is a title often used for a distilling expert or a key leader or owner at modern distilleries.

How much money does a distiller make?

As of Aug 21, 2025, the average hourly pay for a Distiller in California is $18.24 an hour. While ZipRecruiter is seeing salaries as high as $27.52 and as low as $10.68, the majority of Distiller salaries currently range between $14.71 (25th percentile) to $20.14 (75th percentile) in California.

Do distilleries make their own barrels?

Wood barrels are fundamental to the production of whiskey (as well as other liquors and wine, of course). But Brown-Forman is the only major distiller to make its own barrels--something it's been doing since 1945.

Who runs a distillery?

The master distiller takes on responsibility for managing the distillery's production staff. They must direct their actions and ensure the product is meeting quality guidelines. In a large distillery, they may be required to manage hundreds of staff including other distillers.

What is the gross margin for a distillery?

Become profitable

You'll need these costs locked in for the first two years of production. In addition, you'll want to be at 60% gross margin, with a plan in place to get to a margin above 60%. We'd suggest not starting production if your gross margin is not at least 50%.

Why is distilling illegal in the UK?

Firstly, it's a matter of public health and safety – for you, and for those consuming what you produce. Poorly distilled spirits can contain harmful impurities or have extremely high alcohol content, which can lead to severe health problems or even death if not regulated and handled properly.

How much do beer brewers make in the UK?

Apprenticeships pay from £20,000 and often include food and other benefits. Team leader/shift brewer roles are typically £35,000 to £40,000 with major brewers. Salaries for technical brewers range from £45,000 to £50,000, rising to £60,000+ for head brewer.

Why are distillers so expensive?

The Role of Distillation and Production Methods

For distillers, these extra steps mean additional time, labor, and expertise, which translates into higher production costs and, ultimately, a higher price.

How much do distillery managers make UK?

Distillery manager salaries

In deriving an average wage, the lowest annual salary is £46,403, and the highest rate is £49,381.

How to start a distillery in the UK?

Is freeze distillation legal in the UK?

Distilling is not illegal in the UK. However, what it does require is a licence, and one of the reasons is that a careless distiller can poison the drinkers of his/her products if there's a significant amount of methanol produced.

Can I sell homemade alcohol in the UK?

Licensing: Where there is alcohol and consumable products, there will always be necessary licences and permits to obtain first! Usually, you will need a distiller's licence, allowing you to distil spirits. If you wish to sell your product, you'll need an AWRS (Alcohol Wholesaler Registration Scheme).

How to become a brewer in the UK?

You'll usually need at least 2 years' experience in brewing to apply for technical jobs directly. Employers may also want you to have recognised industry qualifications like those offered by the Chartered Institute of Brewers and Distillers.

How much is a brewery licence?

There are a number of different licences you will need to apply for when setting up and running your business. This can include a Premises Licence and a Personal Licence to sell alcohol. Licence costs can vary depending on your local council, but you can expect to pay between £100 and £1,000 in licensing fees.

How much to set up a distillery?

The equipment cost for a small gin distillery can be as low as £11k, and for a tiny whiskey distillery, it is £60k. However, startup costs for a micro-distillery can vary significantly based on size, location, and equipment, reaching several million dollars for larger, complex setups.