Cost Of Starting a Craft Distillery

Here are some potential costs which R&I Consulting suggest you should consider...

Distillation Equipment: 

An example, 150-gallon still can cost anywhere from several thousand dollars for a basic, used model to tens of thousands of dollars or more for a high-quality, new still with additional features such as automated controls.  A respected manufacturer such as Olympic Distillers is a good place to start looking.

Facility and Renovations:

You will need a suitable location for your distillery, which may require leasing or purchasing a property. Costs can vary significantly depending on location and condition of the facility. Renovations or modifications to meet regulatory requirements may also be necessary and can add to the overall cost.
Licensing and Permits: 

Distilling alcohol is highly regulated and requires obtaining various federal, state, and local licenses and permits, which may include fees and legal costs. R&I Consulting has a team of experts to help you navigate this task.

Raw Materials: 

You will need to purchase grains, fruits, or other ingredients to ferment and distill into spirits. The cost of raw materials will depend on the type of spirits you plan to produce, their availability, and quality. 

Bottling and Packaging: 

If you plan to bottle and package your spirits, you will need to invest in bottling equipment, labels, bottles, caps, and other packaging materials. 

Marketing and Branding: 

Building a brand and marketing your spirits will require investment in branding, packaging design, website development, marketing materials, and advertising. 

Operating Expenses: 

You will also need to consider ongoing operating expenses such as utilities, insurance, labor costs, taxes, and other overhead costs. 

Contingency Fund:

It's important to have a contingency fund for unexpected expenses or setbacks that may arise during the startup phase. 

Based on these factors: 

The total investment required to start a craft distillery with a 150-gallon still can vary greatly, but it's not uncommon for it to require hundreds of thousands of dollars or more. It's important to conduct thorough research, create a comprehensive business plan, and seek professional advice from R&I Consulting to accurately estimate the total investment needed for your specific situation. Additionally, regulations and costs may vary by location, so it's crucial to be familiar with the local laws and regulations governing the production of distilled spirits in your area. Consulting with an experienced R&I Consulting professional can also be beneficial. Remember to also consider ongoing operational costs and have a solid plan for marketing and sales to ensure the long-term success of your craft distillery.   .