In Virginia, distillery licenses are managed by the Virginia Alcoholic Beverage Control (ABC) Authority. Because Virginia is a “control state,” the state technically owns all spirits, so getting a license often involves entering into a specific agency agreement with the state to sell your own product.
Here are the primary types of licenses and the requirements to obtain them.
1. Types of Distillery Licenses
Standard Distillery License
This is the general license for manufacturing distilled spirits. It allows you to manufacture, sell, and ship spirits to the Virginia ABC Board or to entities outside of Virginia.
- Fees: Based on annual production volume:
- \leq 5,000 gallons: $490
- 5,001 to 36,000 gallons: $2,725
- Over 36,000 gallons: $4,060
- Requirements: Must manufacture 36,000 gallons or less per year.
- Agricultural Rule: The distillery must be located on a farm and use agricultural products grown on that farm (or by the owner) for their production.
- Benefit: These licenses often enjoy more protection from local zoning restrictions compared to industrial distilleries.
- Federal Permit (TTB): You must first obtain a Federal Distilled Spirits Plant (DSP) permit from the Alcohol and Tobacco Tax and Trade Bureau. Virginia ABC will not issue a state license without this.
- Distillery Store Agreement: To sell your bottles directly to customers at your distillery, you must be appointed as an “agent” of Virginia ABC. You essentially operate a “mini state store” on your premises and must sign a formal contract with the Board.
- Remote Event Permit: If you want to sell bottles at festivals or off-site events, you must apply for a Distillery Remote ABC Store Privilege.
- Background Checks: All “related individuals” (owners, officers, and managers) must submit personal data sheets and pass a criminal background check ($15 fee per person).
- Location & Zoning: You must provide proof that the location is properly zoned for distilling.
- Public Notice: You are required to post a “Notice of Application” at the front of your proposed location for 10 days and publish the notice in a local newspaper.
- Application Fee: There is a non-refundable $195 application fee in addition to the license fees mentioned above.
- Timeline: On average, expect the process to take 60 to 90 days once the application is submitted.