How to Start a Distillery in the UK

Gin is the usual entry point: you can buy in neutral grain spirit and redistil it with botanicals, so there is no long maturation wait and cash comes in quickly. Whisky needs at least three years in cask before you can sell it, creating a long cash-flow gap that has to be funded.

Decide early whether you will own your brand, distil under contract for others, or lead with experiences and a tasting room. Most successful small distilleries blend several of these.

Since 1 February 2025 the old distiller's licence (form DLA1) is withdrawn. New producers now apply for the Alcoholic Products Producer Approval (APPA) before they start producing, and register for the Alcohol Wholesaler Registration Scheme (AWRS) if selling wholesale.

Read the detail in our distiller's licence (APPA) guide, including timelines and spirit duty.

You need premises with the right planning use, and you must manage the fire and explosion risk of flammable vapour under DSEAR. HMRC also wants a plan of your premises with duty-suspended areas shaded and fire exits marked. Factor in ventilation, drainage, and environmental health.

Your still defines what you can make and how much. Copper pot stills from established makers such as Arnold Holstein, Carl, Kothe, iStill and Hoga — plus UK fabricators — typically run from around £20k for a micro setup to £50k–£250k for a serious pot still, before the rest of the kit.

A micro gin distillery can open for roughly £70k–£255k all-in; a whisky-capable build runs to £500k+. See the full breakdown — equipment, premises, licensing, stock, branding and working capital — in our startup costs guide.

Standard commercial cover does not properly handle a distillery's risks — the still, duty-suspended stock, flammable vapour and visitor liability. Line up specialist distillery insurance before you fill the still, then plan your route to market: direct-to- consumer, wholesale, on-trade, and a tasting room or gin school.