How Much Does It Cost to Start a Distillery?

Costs to start range from $13,000 – $33,000. You’ll need to rent a distillery space. Additional expenses include insurance, distilling equipment, and a transport vehicle.
To successfully launch, you’ll need items like stills, fermenters, a boiler, cooling system, pumps and tanks. Overall, equipment and machinery can cost $50,000 to $200,000 or more.
Rent varies by region and location. A lease in Manhattan could cost over $80,000/month. Meanwhile, one in Florida or Tennessee could cost under $1,000/month.

Is owning a distillery profitable?
- There’s potential for profit. Distilleries make money selling liquor to distributors who sell to retailers. You may receive 40-50% of the eventual retail price. So if your spirit sells for $40, you may get $18-$20.

It costs about $1.50 to make three gallons of whiskey. Use a spirit making kit for distilling alcohol. Add a Still Spirits flavouring to blend the drink. The fermentation process takes 5 to 10 days. Use a hydrometer to tell when it’s complete.
Micro-distilleries are ideal if waiting to build income. Offer tours and experiences. Niche products get higher rates.
To start, purchase equipment. Obtain licensing. Make a business plan. Construct the distillery.
Spending $6,000 monthly and losing money for two years requires preparation. Just ordering a still takes one year. Estimating $1 million opening does not make profit easy.

How much does it cost to build a small distillery?
- How much does it cost to start a small distillery? It is possible to start a small distillery for around $30,000. This includes spending about $5,000 on the initial lease and relevant licensing and $5,000 on equipment such as stills and fermenters and mash tuns. To legally distill at home, you must first apply for a Federal Distilled Spirits Permit. The permit requires a fee, in addition to regulated inspections of your distillation equipment and facility. Starting a distillery requires preparation. Estimating $1 million for opening does not make profit easy. Just ordering a still takes one year. Spending $6,000 monthly and losing money for two years requires planning.