Start a craft brewery, cidery or distillery

Starting a brewery, cidery or distillery can be rewarding if you are passionate about making craft drinks. It is also a complex, highly regulated business that demands careful planning, strong financial controls and a clear route to market. 

It is important to carefully consider factors like target customers, brand, licensing and funding before you commit significant time and money.

Market research

Craft alcohol is a competitive and fast-changing market. To succeed, your products need a clear point of difference and a defined customer base. Use market research to:

• identify existing breweries, cideries and distilleries in your region and understand what they offer
• analyse trends in beer, cider and spirits, such as low‑ and no‑alcohol, premium products, local provenance or sustainability claims
• define your unique selling point (USP) - for example, heritage styles, innovative flavours, use of local ingredients, or links to local history and place
• test your branding, packaging and pricing with potential customers before you invest in large‑scale production

You can find practical guidance on:

• researching new product and service ideas
• creating your marketing strategy
• writing a marketing plan
• understanding your customers' needs
• market research and market reports

Business plan

One of the first steps in starting any brewery, cidery or distillery is to write a business plan. This is a written document that will set out your:

• business objectives and timescales
• your products, target markets and routes to market (for example, taproom, online, trade sales, export)
• your production model (own premises, contract brewing/distilling/cidermaking, or a mix)
• detailed financial forecasts, including start‑up costs, working capital, cashflow and profitability

A robust business plan will make it easier to secure bank finance, investment or grant support. Guidance is available to help you develop a business plan.

Licensing and regulation

Alcohol production and sale are strictly regulated. Before you start trading, you will usually need to obtain approval from HMRC to produce alcoholic products, register as a food business with your local council and apply for the appropriate alcohol licences if you intend to sell directly to the public, operate a taproom, run tastings, or sell for on‑ or off‑site consumption. 

Find details on legal considerations for breweries, cideries and distilleries and read about selling craft beer, cider and spirits.

Costs and funding

Set‑up costs for breweries, cideries and distilleries can be high. You should:

• list all start‑up costs, including premises, fit‑out, equipment, licences, insurance, ingredients, packaging and marketing
• estimate working capital needs for at least the first 12 to 24 months, taking into account long production and maturation times (especially for spirits)
• explore options to reduce initial capital spend, such as contract production, shared facilities, or buying refurbished or second‑hand equipment

Work out how much money you need to start your business.

There are a number of ways to raise finance for new businesses. One option that may be effective for a new brewery, cidery or distillery is crowdfunding. This involves asking a large number of people to each invest a small amount of money.

Effective cashflow management is essential, as production lead times, duty payments and customer credit terms can put pressure on finances.