Manufacturer Permit Cost?

Khirsah17 · 02-20-2008, 08:26 PM

Just out of curiosity, I was looking at how much it costs to buy a beer production permit from the State of Ohio. To get an A1 permit, allowing me to simply make beer for commercial purposes (but not sell on the premise), costs $3,906! And I'm going to guess that's yearly. Holy crap! I was thinking about selling beer for small social events/gatherings, but damn. I'd have to have REAL good business in order to make up for the cost of the permit alone, much less ingredients and time.

How much does it cost in your respective state? If you want to sell beer, you really have to swing for the fences and start a microbrewery. Doesn't seem very financially possible to simply start small and grow.

**Bobby_M** · 02-20-2008, 08:27 PM

Wouldn't it be great if they'd create multiple tiers based on annual barrel production levels?

landhoney · 02-21-2008, 03:47 AM

Quote:

Originally Posted by Bobby_M

Wouldn't it be great if they'd create multiple tiers based on annual barrel production levels?

Dream of dreams!

gpogo · 02-21-2008, 06:14 AM

I've heard that starting a winery is actually a lot easier to start compared to a brewery(i have not researched this at all) especially in towns where BMC is produced.

In St. Louis for example I was talking to some of the workers at Schlafly Bottleworks and they explained to me that Schlafly is really a winery and makes cider once a year to stay legal, other than that they brew beer(bottled and sold all over missouri).

Unfortunately since moving to CA I haven't been able to get ahold of anymore schlafly(not to say there aren't delicious beverages here!)

Sir Humpsalot · 02-21-2008, 06:22 AM

Quote:

Originally Posted by Khirsah17

Just out of curiosity, I was looking at how much it costs to buy a beer production permit from the State of Ohio. To get an A1 permit, allowing me to simply make beer for commercial purposes (but not sell on the premise), costs $3,906! And I'm going to guess that's yearly. Holy crap! I was thinking about selling beer for small social events/gatherings, but damn. I'd have to have REAL good business in order to make up for the cost of the permit alone, much less ingredients and time.

How much does it cost in your respective state? If you want to sell beer, you really have to swing for the fences and start a microbrewery. Doesn't seem very financially possible to simply start small and grow.

Nah. If you want to do that, you get three investors with steady Federal Tax Refund checks to each kick in $1,000 or so each. In exchange, you let them have the coolest parties 4 times a year and invite all their friends to the brewery they own to drink some awesome stuff. And maybe once a week they come in and help out. The rest of the time, they leave you alone to brew and do your thing..

You do the dirty work. Let them think that brewing is the easiest business in the world. Make it a white gloves hobby for them... They come in occasionally, do their thing, and leave. Sure, they will have a warped perception, but who cares so long as somebody else is happily paying your expenses?

CBBaron · 02-21-2008, 01:50 PM

Quote:

Originally Posted by gpogo

I've heard that starting a winery is actually a lot easier to start compared to a brewery(i have not researched this at all) especially in towns where BMC is produced.

In St. Louis for example I was talking to some of the workers at Schlafly Bottleworks and they explained to me that Schlafly is really a winery and makes cider once a year to stay legal, other than that they brew beer(bottled and sold all over missouri).

Unfortunately since moving to CA I haven't been able to get ahold of anymore schlafly(not to say there aren't delicious beverages here!)

In Ohio a winery license is under $200/yr but the restrictions are that the product has to be primarily from fruits grown on the property. It is used as a way to encourage diversity in agriculture in the state. A brewery that made the occasional cider would have to get a brewers license.
I think there is some additional federal licensing that is required in addition to the state licenses so if you are serious make sure you check the feds also.
Craig

zoebisch01 · 02-21-2008, 02:23 PM

Yeah it's over 2k here in PA, and a 'renewal fee' every year. The good thing is, if you get a brewery license, you can sell your own beer on premises which allows you to bypass the disgusting liquor license which are market driven and on the order of several hundred thousand dollars to more (depending on the region).

So your break even point is not feasible for 'just easing into' it. You really have to make full time of it, or work 16 hour days, 8 at a 'day' job, the other 8 at the brewery.

**pjj2ba** · 02-21-2008, 02:53 PM

In PA it is only something like $400 for a winery license. Way cheaper than a brewery license. I actually wrote to our state congressman about this and never heard a reply - no surprise. My only thought was that MAYBE this could be justified IF the wineries were using grapes produced in the state and this is a way of promoting local agriculture and products. If they're buying grape juice, then Grrrrrrrr - I call Shenanigans!

**david_42** · 02-21-2008, 03:07 PM

For whatever reason, alcohol control boards are anti-beer. Last year, the wackos here passed a ruling to prevent children from being at beer events, but not wine events! I guess being a wino is ok.

How much it costs to brew and sell beer in Oregon depends on your intent: brewing just for distribution is different from running a brewpub.

Khirsah17 · 02-21-2008, 05:05 PM

Quote:

Wouldn't it be great if they'd create multiple tiers based on annual barrel production levels?

*sigh* Yea, that would be great.

I guess this all comes up because I am brewing 4 kegs for my buddies wedding. Now word got out, and I have a bunch of people wanting me to brew beer for their weddings, and offering to pay. That would be great, but I'm not sure where paying turns illegal. My guess is getting paid to buy the ingredients is ok, but anything above that is probably not legal. But if I could make small quantities of beer and get paid for it legally, I might be able to turn a small profit doing weddings and such as a small side gig.

Who knows where it would go from there