Business Idea

Start A Distillery Business

About

Starting a distillery business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell distillery, or selling distillery online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a distillery business ➜

Key stats

market size
$14.2B
starting costs
$63.2K
gross margin
48%
time to build
10 months
growth
SEO
time investment
Side project
work from home?
Yes

About

Starting a distillery business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell distillery, or selling distillery online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a distillery business ➜

Key stats

market size
$14.2B
starting costs
$63.2K
gross margin
48%
time to build
10 months

 

growth
SEO
time investment
Side project
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $10 $2,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $525 $5,500
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Food Business Expenses $2,325 $36,900
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $4,786
Other Expenses $0 $300

Successful Businesses

Business URL Rank
Suntory suntory.com #154,547
Distillery Trail distillerytrail.com #417,846
MGP mgpingredients.com #427,288
Mile Hi Distilling milehidistilling.com #461,394
Craft Spirits Magazine craftspiritsmag.com #617,476
Whitmeyer's Distilling Co. LLC whitmeyers.com #931,675
Durham Distillery durhamdistillery.com #1,098,869
Distillery Equipment distillery-equipment.com #1,134,866
The Distillery Restaurant thedistillery.com #1,601,634
Greenbar Distillery greenbardistillery.com #1,650,637
Catoctin Creek® catoctincreekdistilling.com #1,761,944

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a distillery business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your distillery business are typically around 48%, which is considerably high and allows you to grow your business and manage costs easily.
Easy to encourage "impulse buy" In the distillery business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A distillery business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
High employee turnover In the distillery business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a distillery business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
High overhead expenses With starting a distillery business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to distillery business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜