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Part 2: Starting
a Winery
PART 1: Starting
a Commercial Vineyard
PART 2: Starting a Winery
PART 3: Resources
Facts You Need to Know
- Wineries must be authorized by the TTB on the Federal level
in the form of a bond, the Comptroller’s office at the State
level in the form of a winery license, and be allowed to exist
in the winery’s particular county’s zoning code. Local
issues may arise with city or community-level organizations. The
county zoning code states allowable operations – often called
“enabling legislation.” Most counties' zoning states
that a winery may exist and that it is permitted to exist in certain
zoning areas (rural, ag, commercial, etc). In some instances,
this wording must be added to allow a winery to exist.
- There are two winery licenses available in Maryland: Class 3
and Class 4. All current wineries are Class 4, as this provides
benefits that the Class 3 does not. Review the Class 3 vs. 4 analysis
posted below. (Applications are below).
- The Class 4 license is considered to be Maryland's "farm
winery" license – and mandates that licensees use Maryland-grown
fruit unless the Sec. Agriculture determines there is an insufficient
supply. There is an online
marketplace sponsored by the MGGA where growers and wineries
can post their supply and needs.
- Both licenses (Class 3/4) limit the amount of wine a winery
can sell to customers who visit the winery. Wineries in most counties
may apply for a county Class A Light Wine retail license, granting
them the ability to sell their wine in any quantity to any legal
consumer, with or without a guided tour. Class 3 and Class 4 wineries
may apply for the license, but Class 3 wineries may only use it
to sell Maryland ag-produced wines.
- The TTB/Feds regulate and approve all wine labels. Wine labels
must be submitted for approval prior to sale of the wine. Submitting
hard copies of your labels creates a long process – taking
up to two months. It's better to register with the TTB to submit
online label applications. This can be done via the COLA
system.
The Process of Becoming
a Licensed Winery in Maryland
- Really, truly understand what it means to be a licensed winery.
Talk with Joe Fiola, Kevin Atticks, current wineries, growers
and suppliers to get a feel for the time, energy and investment
necessary for a successful operation.
- Join the Maryland Wineries Association as an associate member
– you’ll learn a lot by attending the meetings and
getting to know the other wineries and state officials who regularly
attend the meetings.
- Find a location and begin discussions with the local jurisdictions/zoning
boards about your winery operation. This is the only place where
legislation may be necessary – if your county does not currently
authorize wineries.
- Carefully complete both the Federal and State winery applications.
The State will wait to approve your application until you receive
your Federal bond. If you get it right the first time, the Federal
application process can take as little as 4-6 weeks. For all intents
and purposes, you’re a winery when the Fed says you are.
You can’t yet operate or sell in MD, but you’re nonetheless
a bonded winery. Start your label design and TTB
label approval process now.
- Notify the State of your Federal approval. The State process,
assuming everything is in order, can take 3-6 weeks. Once you’ve
submitted your application, an agent from the Comptroller’s
office will visit/inspect your manufacturing facility. The process
will end (successfully) in a meeting Dan Adams, Assistant Director
of the Maryland ATTD – where he’ll present you with
your license.
- You’re now eligible for a Class A Light Wine license that
you’ll obtain through your county liquor board.
- It’s at this point that you can make and sell your wine
to the public, attend festivals, sell to retail stores and restaurants.
| Winery Licensing Information |
|
Federal Winery Application Packet
There are a slew of forms to complete – all
available on the TTB's website.
http://www.ttb.gov/wine/federal_app.shtml
State Winery License Application
License application: ATTD-007
Application checklist: Checklist.pdf
Wine Bond: ATTD-006
List of Liquor Boards – for Class A Light Wine
License information
Liquor
Boards (link to Restaurant Association of Maryland listing)
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| Winery Business Plans and Considerations |
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Maryland Class 3 vs Class 4 Winery Licenses
by Kevin Atticks and Dan Adams, Office of the Comptroller
MWA-Class3vs4.doc
Thinking About Starting a Small Winery?
by Howard Bursen, Vineyard & Winery Management
thinking-about.pdf
Starting a Small Winery
by Doug Moorhead, Wine East Magazine
starting.pdf
Cost Estimate for Establishment of a Five Thousand
Gallon Winery
by Alan Dillard, Limestone Creek Winery, Jonesboro,
IL
http://viticulture.hort.iastate.edu/info/pdf/wineryestcost.pdf
Winery and Vineyard Feasibility Workbook
http://www.agmrc.org/agmrc/commodity/fruits/wine/wineryfeasibility.htm
Winery Start-up & Business Plan Workbook
by Southern Illinois University & Illinois Small Business
Development
WineryStartupProfile.pdf
Writing a Business Plan: An Example for a Small Premium
Winery
by Mark E. Pisoni and Gerald B. White
writingplan.pdf
How to Start a Winery
by Ohio Wine Producers Association
http://www.ohiowines.org/winery_starter_kit.htm
Economic Considerations for Small-Sized to Medium-Sized
Wineries
by Carl R. Dillon, et al., University of Arkansas
webg92-6wg.pdf
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| Winery/Winemaking Consultants |
|
Tom Payette
Payette Consulting
7111 - B Riverside Drive
Rapidan, VA 22733
540-672-0387
tpayette@ns.gemlink.com
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Carl DiManno
Mid Atlantic Winery Service, LLC
703-728-7977
carl@dimanno.com
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| Licensing |
| Federal Bond Application
(file this first)
This is your official federal license allowing for
fermentation of wine.
Alcohol and Tobacco Tax Trade Bureau
National Revenue Center
550 Main Street Suite 8002
Cincinnati, Ohio 45202
1-877-882-3277 • 513-684-3334
http://www.ttb.gov/wine/federal_app.shtml
State Manufacturer's License (Class 3 or 4)
This may be filed concurrent to the Federal license, but will
not be processed until the Federal bond has been issued. There
will be an on-site inspection to ensure your facility is able
to manufacture and safely store and secure commercial wine.
Linda Bates, Administrative Manager
Administrative Manager
COMPTROLLER OF MARYLAND
Alcohol Tobacco Tax Regulatory Division
Louis L. Goldstein Treasury Bldg.
80 Calvert Street, Room 310
Annapolis, MD 21404-2999
410-260-7312
Fax: 410-974-3201
Email: lbates@comp.state.md.us
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County Class A Light Wine License
This is a retail license that allows a winery to sell its
wine to the public on-site at the winery. View a list of counties
offering this license. Please contact the MWA early in
your licensing process if your county is not listed, as legislation
will be needed to amend the law.
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PART 1: Starting
a Commercial Vineyard
PART 2: Starting a Winery
PART 3: Resources |