Brewing License

Before I get into where I am in the process, I thought I should review what I have learned about getting a brewing license. 

Going into this I knew that Ohio has some old laws regarding beer, wine, and liquor, but did not know any of the details.  I was happy to discover that Ohio has recently made some changes and now offers a craft beer license for anyone who is going to brew 31 million gallons or less per year.  It is only $1000 per year and I can’t see me exceeding that volume anytime soon!

I was surprised to find that you have to pay the state $50 for each new beer you brew.  This is to register each beer you sell.  Someone who once worked for the Ohio Department of Liquor control told me that this is essentially self-reported and they have no way of really tracking if you have done this or not.  That being said, I guess $50 is a small fee for each new beer and probably worth it in case that guy was wrong. 

Ohio also has a “no tied houses” law.  This means that you can own no more than one of; retail store selling alcohol, bar or restaurant selling alcohol, or manufacturer of alcoholic beverage.  The only exception is a brew pub license where you could brew beer and operate a restaurant together. 

My next surprise was to find out that you need both a federal and state license to brew beer.  This is true even if you are only going to sell within the state.  The State of Ohio will not even process your application until the Federal Government (TTB) has issued you a brewing license.  The good news is that the Federal is free.  The really good news is that the TTB says they are currently processing the applications in an average of 110 days.  That’s almost 4 months.  With your applications you have to have your lease signed (with an agreement showing the landlord knows you are going to brew beer) and a diagram of you equipment set up.  So you need to be all in when you apply.  Then it will be over four months until you can legally start to brew. 

So I figure it will be at least six months from the date of the lease being signed to when I can sell my first beer.  This information slowed me down and made me realize that I need to take a little more time.  So I have spent the past 6 months refining my business plan and researching costs (more on that later).  I want to make sure I have every question answered before I sign a lease, purchase equipment, and fill out the license applications