How Much Does It Cost To Start A Distillery?

As a traditional industry with a long history and much attention, after hundreds of years of development, distilleries are now not only a business with cultural accumulation, but also a business choice with great potential. However, many people will fall into a confusion when they are making initial entrepreneurial ideas, that is: how much does it cost to start a distillery? However, the cost of starting a distillery is not fixed, and there is no fixed answer. Generally speaking, it may cost 300,000 US dollars to 5 million US dollars. Of course, this is just an approximate price calculated based on market conditions. The final cost will involve multiple procedures and projects. What are the specific projects that must be invested? What costs can be flexibly adjusted? These questions will affect the final cost. However, you don't have to worry about these problems. As a distillery equipment manufacturer, Boben has deeply analyzed the startup costs of starting a distillery, which include various influencing factors. Next, through this article, explore the cost of starting a distillery together to help you plan the best and most comprehensive.

Site cost

Site costs are one of the basic investments of a distillery, and the specific costs vary significantly depending on location and plant size. Leasing a factory is the first choice for many start-up distilleries. Rent in small and medium-sized cities usually ranges from US$10,000 to US$20,000 per month, while in big cities it may be as high as tens of thousands of US dollars. If you choose to purchase land and build a factory, the initial cost of the distillery may climb into the millions. In addition, the location of the distillery needs to consider water source quality, sewage facilities and transportation convenience.

Distillery size

On the scale of the distillery, it can be divided into micro, medium and large. The following is a description and analysis of the differences in start-up costs and long-term operation between distilleries of different sizes.
First of all, micro-distilleries are small scale distilleries, usually with an investment is about US$2000-US$10,000. Usually only a formal still needs to be configured. Saccharification and fermentation will use some simple equipment, the cost is very low.
Secondly, the investment of medium-sized distilleries is about US$20,000-US$100,000. Usually depending on the specific situation, in addition to the still may also need to configure some auxiliary equipment. Like heating or cooling equipment. Also according to their own budget to decide what kind of saccharification and fermentation equipment to use.
Finally, large distilleries have higher investment and large scale, which will be much higher than medium-sized distilleries in terms of start-up costs.The investment is about US$100,000-US$50,0000.
Large distilleries are well equipped, high design output, and the larger the scale of investment will be larger, and the authorities have invested several million dollars or more in some large distilleries around the world.
In general, investment and operating costs vary with size, and choosing the right size can help reduce start-up costs and operational risks and achieve sustainable economic gains.

Distillery equipment cost

Distilling equipment is the heart of a distillery. Your business plan must include the costs for all the necessary equipment, which typically includes:

Depending on the distillery planning may also involve investment in storage, canning and other equipment.

Distillery materials cost

The raw materials and energy needed for distilleries are long-term, uninterrupted inputs. The cost of raw materials, such as grains, malt, fruits, molasses, etc., and the cost of yeast, water and electricity are unavoidable investments that must be considered.

Labor cost

Labor costs are also a long-term budget plan, with appropriate planning based on local geographic and industry salary levels. Here we give suggestions for the number of distillery workers of different sizes.

License cost

It's actually illegal to distill alcohol without a license - even at home!
The alcoholic beverage industry is heavily regulated, with craft distilleries subject to federal, state, and local policies and regulations. Navigating these regulations often requires the expertise of an attorney specializing in this field. Additionally, you must secure the necessary local or state permits and licenses for operating a distillery. Applying for a permit requires patience. It could take months, half a year, even a year.

How to reduce Distillery costs

Most distilleries start with small-scale manual distillation, and through gradual development and expansion, they reach the target scale of investors.
Choosing a suitable small distillation equipment and using some simple equipment or second-hand equipment before the fermentation process is an effective way to save initial costs. Choosing a joint venture and seeking financial assistance is also an important way to quickly establish a distillery. As the production of the distillery continues, more funds are raised and the scale is expanded in a timely manner.

Conclusion

That's all about the cost of start a distillery. In summary, opening a winery is not only a capital investment, but also a long-term business plan and test. From land and plant to equipment procurement, from labor to production license, every link needs to be carefully planned and executed.
If you have any questions about starting a distillery, you can consult Boben. We are willing to provide you with customized distillery planning and consulting services.