How To Start Your Own Liquor Brand: A 7-Step Roadmap for Entrepreneurs

Introduction

Do you want to make your own liquor brand? It is a big job, but you can do it! Many people want to drink craft spirits now. The craft spirits market will grow to $30 billion by 2025.

This guide will help you start your own liquor brand. We cut out the hard stuff. You will learn about rules, how to make your drink, and how to sell it. Let’s begin the fun trip to make your own liquor!

This guide is for:

• Bar owners
• People who want to make spirits
• New business owners in the liquor world

1. Understanding Legal Requirements

Navigating the Regulatory Maze

The first big step is to know the rules. You need to get the right permits to make and sell liquor.

What You Need:

• Federal TTB permits – These cost $1,500 to $15,000 
• State licenses – These cost about $3,000 to $12,000 
• COLA (Certificate of Label Approval) – This takes 90+ days 

You also need to pick how to set up your business. You can make an LLC or be a sole proprietor. Most liquor brands choose LLC because it keeps your money safe if something goes wrong.

Tip: Start the permit work early! It can take 6-12 months to get all your permits.

2. Sourcing Production

Distill Yourself or Partner Up?

You have two main ways to make your liquor:

1. Make it yourself – This costs a lot (over $500,000)
2. Have someone else make it – This costs less ($50,000+)

Most new brands pick the second way. It is called contract distilling or white-label making.

You will need to find:

• Barrel brokers for aging your spirits
• Bottle makers for your special bottles
• Flavor labs to make your drink taste good

Your bottles need to look nice and be strong. A good look helps sell your liquor. You may want a Custom Ice Bucket to show off your brand at bars and events.

Quality Matters

You must test each batch of your liquor. Get ISO 22000 papers to show your drink is safe and good.

3. Building Your Brand Identity

Stand Out in a Crowded Market

The liquor world has many brands. You need to be different. Your story can help people pick your drink.

Tell about:

• Your town or area
• Your family story
• How you make your drink special
• Why your drink is good for the earth

Label design is very big! It must:

1. Follow all rules
2. Look good on a shelf
3. Tell your brand’s story

The data shows 45% of young buyers want local and earth-friendly alcohol brands.

When setting your price, think about:

• How much it costs to make
• What other brands charge
• Who will buy your drink

4. Marketing & Distribution

From Warehouse to Whiskey Shelf

Now you need to sell your liquor. This is hard. About 78% of new drink makers say getting in stores is the hardest part.

Ways to Sell:

1. Social media – Use TikTok and Instagram to show your brand
2. Influencers – Find people who can tell others about your liquor
3. Distributors – These big companies get your drink in stores
4. Online – Sell on websites like Drizly (Online alcohol sales grew 315% from 2019-2023)

You may need nice Custom Bar Coasters to give to bars that sell your liquor. These help people see your brand name.

Make a press kit with:

• Photos of your bottles
• Your brand story
• How your liquor is made
• Awards you have won

5. Financial Planning

Avoiding Budget Pitfalls

Starting a liquor brand costs money. You need to plan well.

Costs to Think About:

Item	Cost Range
Federal permits	$1,500-$15,000
State licenses	$3,000-$12,000
Making the liquor	$10,000-$100,000+
Bottles and labels	$5,000-$25,000
Marketing	$10,000-$50,000+
Total	$50,000-$500,000+

You can get money from:

• Your own savings
• Friends and family
• Bank loans
• Crowdfunding websites
• People who invest in new brands

Don’t forget about taxes! You must pay excise tax on all the alcohol you make. Keep good records of this.

6. Success Story: Doe Distilling

Let’s look at a real brand that did well. Doe Distilling grew to sell in 10 states in just 3 years.

What they did right:

1. Made a clear brand story about their town
2. Used online sales and social media
3. Found good distributors
4. Had pretty bottles that stood out
5. Made their own look with Custom Logo Bar Mat for bars

They started small, then grew bigger. That’s the smart way!

7. Scaling & Long-Term Success

From Local to National

Once your brand is doing well, you can grow bigger.

Good ways to grow:

• Add new types of liquor
• Make special flavors for big times of year
• Sell in more states
• Make ready-to-drink cocktails (these can have 70% profit!)

Think about the end goal:

• Do you want to run this business for many years?
• Do you want a big company to buy your brand?
• Do you want to let others use your brand name?

Common Questions About Starting a Liquor Brand

Can I start a liquor brand without a distillery?

Yes! Most new brands use contract distilling. This means another company makes your liquor for you. It costs much less than building your own place.

How long does TTB approval take?

Getting federal permits takes about 6-12 months. Getting each label approved takes about 90 days. Start this work early!

What’s the profit margin for craft spirits?

Most craft spirits make about 40-60% profit on each bottle. Ready-to-drink cocktails can make even more, up to 70% profit.

Why do new liquor brands fail?

About 60% of new liquor brands don’t make it past 2 years. The main reasons are:

1. Not following all the rules
2. Not enough money for marketing
3. Can’t get into enough stores
4. Bad planning

Tools and Supplies You Need

When starting your liquor brand, you need the right tools. Here are some must-haves:

1. Bottles – These must look nice and not break
2. Labels – These must follow rules and look good
3. Caps or corks – These keep your drink fresh
4. Boxes – These keep bottles safe when moving them
5. Bar supplies for tastings – Things like PVC Bar Mats and Wine Bucket help show off your brand

Tips From Successful Liquor Brand Owners

Here’s what people who made it say:

1. “Start small. Test your liquor with friends first.”
2. “The label is as important as what’s inside.”
3. “Make friends with bar owners and store owners.”
4. “Be ready to work hard for 2-3 years before making money.”
5. “Know all the rules and laws. They are very strict.”

Conclusion

Making your own liquor brand is hard work but can be very fun. If you follow the steps in this guide, you will have a better chance of success.

Remember:

1. Know all the rules
2. Make a good liquor
3. Create a strong brand
4. Find ways to sell your drink
5. Plan your money well

Start small, see if people like your drink, then grow bigger. The craft spirits world is growing fast, and you can be part of it!

Ready to begin? The first step is to write down your brand idea and start looking into permits.

Good luck with your new liquor brand!