Startup Sections

Part 1: Start a Commercial Vineyard
Part 2: Start a Winery
Part 3: Additional Resources

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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

  1. 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.
  2. 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).
  3. 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.
  4. 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.
  5. 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

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. You’re now eligible for a Class A Light Wine license that you’ll obtain through your county liquor board.
  7. 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)

 

Winery Business Plans and Considerations

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


Winery/Winemaking Consultants

Tom Payette
Payette Consulting

7111 - B Riverside Drive
Rapidan, VA 22733
540-672-0387
tpayette@ns.gemlink.com


 

Carl DiManno
Mid Atlantic Winery Service, LLC

703-728-7977
carl@dimanno.com

 

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

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.

PART 1: Starting a Commercial Vineyard
PART 2: Starting a Winery
PART 3: Resources