Application for a Microbrewery Liquor Licence
Before you scroll down, consider this -
Can you think of any Microbrewery which has closed permanently? No? This gives you some idea of the value, potential and permanency of a micro - manufacturing liquor licence. It’s worthwhile persevering to get a Brewery and to hold onto your Brewery once you have it.
A. BASIC INFORMATION ON A BREWERY
- HOW TO APPLY (GET) A BREWERY = LIQUOR LICENCE APPLICATION
- HOW TO RENEW (KEEP) A BREWERY = YEARLY RENEWAL
- HOW TO BUY OR SELL A BREWERY = LIQUOR LICENCE TRANSFER
- COST OF A BREWERY
- LIQUOR STORE TRADING HOURS
HOW TO GET A BREWERY = LIQUOR LICENCE APPLICATION
You must submit a comprehensive, written application to the Liquor Board, Liquor Officer and Local Authority (Municipality) of the province in which your premises is located. You will have to include information, zoning documents, photos and detailed plans of your proposed microbrewery. You need to show the licensing authorities what you have in mind. This means proving that there is a demand from the public for a microbrewery in the area. They can only visualize your microbrewery if your application is professional, detailed and accurate. If not, your application will be postponed or refused. Read more on the Brewery application process below.
HOW TO KEEP A BREWERY = YEARLY RENEWAL
Once you have your Brewery, you need to do everything you can to keep it valid. You do this by renewing it every 12 months. Please go to the “Licence Renewal Section” for all the information you’ll need to ensure your licence remains valid and keeps on generating a profit.
HOW TO BUY OR SELL A BREWERY = LIQUOR LICENCE TRANSFER
Buying a licensed Brewery allows you to use the existing liquor licence to continue to manufacture and sell liquor. You don’t have to apply for a new Brewery. You continue selling liquor without any interruption while the liquor store’s liquor licence is being transferred to you.
However, it is absolutely vital to safeguard your investment by checking that the licence documents are valid and up to date. Don't run the risk of being stopped by liquor authorities for trading with an invalid liquor licence. Do a licence compliance check - it's like having your dentist fix the small holes to avoid the root canal treatment! The most important items to check are :
- Agreement of Sale – The correct wording of the liquor licence clause is very important
- Licence documents – Is the original liquor licence, conditions and floor plan available?
- Licence renewal – Is the proof of payment of the yearly liquor licence renewal fee on file?
- Premises - Does the premises comply to liquor laws and regulation?
FREE Liquor licence compliance check :
- Has this been done? Are you sure all licensing documents are complete, available on file and up to date? Don’t take any chances or you may lose your investment.
- Upload any of these documents and we will do a compliance check - free of charge (Normal value = R3000).
ORDER licence documents :
- You can order any licensing documents you want from us, such as a original licence replacement or floor plan.
- Place your order and we'll be in touch.
COST OF A BREWERY
The cost structure of a Brewery is quite simple. It costs can be described as follows :
- Cost to get a Brewery
- Liquor Board Fees - You'll have to them the following fees :
- Application Fee - to accept your application
- Licence issuing fee - to issue your licence
- Liquor licence consultant's fee
- Liquor Board Fees - You'll have to them the following fees :
- Cost to keep a Brewery valid
- Licence renewal fee - payable every 12 months,
- Penalties / Fines - payable if you paid late or failed to enforce the licence conditions
MICRO BREWERY TRADING HOURS
microbrewery trading hours are different for each province and/or Municipality. Each province and/or Municipality decide on its own liquor trading hours. For example - A microbrewery in Polokwane (Limpopo province) may trade until 24h00, but in Mbombela (Mpumalanga province) only until 20h00. This can become quite complicated, for instance :
- Liquor trading hours may even differ for different areas in the same Municipality!
- Extended liquor trading hours. You can apply to have a microbrewery’s trading hours extended in some areas. So, 2 microbreweries can be next to each other, but have different trading hours if one of them successfully applied to extend its liquor trading hours.
NB - A Brewery owner needs to know the liquor trading hours for a microbrewery at all times. If not, chances are good to get fined or having to pay penalties or - even lose the business.
Contact Us if you want to know the liquor trading hours for your area. Even better – subscribe to our free newsletter and you’ll be updated on import liquor licensing matters.
B. WANT TO KNOW MORE ABOUT MICROBREWERIES OR DISTILLERIES?
- WHY IS A LIQUOR LICENCE IMPORTANT FOR MICROBREWERY?
- WHAT CAN YOU DO WITH A BREWERY?
- DIFFERENT KINDS OF MICROBREWERIES OR DISTILLERIES
- TARGET MARKET
- INCOME GENERATOR
- RUNNING COST OF A BREWERY
- COST OF BUYING OR SELLING A BREWERY
- LICENCE COMPLIANCE AUDIT – A MUST
WHY IS A LIQUOR LICENCE IMPORTANT FOR MICROBREWERIES OR DISTILLERIES?
It’s obvious, isn’t it? No liquor licence = no Brewery! That’s why a liquor licence is the main and most important asset of a Microbrewery.
WHAT CAN YOU DO WITH A MICROBREWERY?
You can sell only liquor which was manufactured in a Microbrewery to the public. Your customers can drink your beer on the premises or take it away with them to drink somewhere else, such as your home, a restaurant, a party or wherever it is legal to drink.
DIFFERENT KINDS OF BREWERIES
Microbreweries or Distilleries can be found in all sizes and locations. The basic options are the following :
- Group Brewery. You buy into an existing brewery group - although there are very few at this stage. The main advantages are that you get -
- a proven, successful business model and
- better prices due to the buying power of the franchise group.
- Independently owned Brewery. You are your own boss and have the power to decide how you would like to manage every aspect of your business.
- Stand alone – your Brewery is contained in its own property, not connected to other shops.
- Drive-through – Not yet seen, but may become a viable option if the result of the Corona Virus is that the public will continue to want to keep a safe distance from each other.
- Shopping centre – the Brewery shares parking, toilets, security and other services with a large mix of other businesses. Some restaurants in shopping centres operate very small breweries serving only their restaurant - called "nano" breweries.
LIQUOR STORE TARGET MARKET
The target market of a Microbrewery really is anyone over the legal drinking age, although the main clientele seems to be younger than 50 years of age.
A LIQUOR STORE AS AN INCOME GENERATOR
A Microbrewery can be an excellent income generator, as it is versatile and allows you to sell liquor in a number of ways -
- on the public area inside your brewery,
- deliver on order, as well as
- through an online e-commerce liquor store.
Want to discuss additional options? Don’t hesitate to Contact Us
RUNNING COST OF A MICROBREWERY
A Microbrewery’s running cost is relatively unflexible and stable. Rent, staff salaries, insurance, advertising, security covers 90% of overheads. The great thing therefore is that overheads costs are very predictable with little or no unpleasant surprises, making planning extremely easy, as well as keeping to a budget. Economy of scale can therefore be very important as the more beer you can produce with the same overhead cost, the greater your profitability.
COST OF BUYING A MICROBREWERY
Good news. There’s a Microbrewery to be found for everyone’s budget. The asking price is usually directly related to its –
- turnover (total value of all sales), and/or
- nett profit (what you take home)
Depending on your personal circumstances and budget, you may want to buy an existing Microbrewery or start a Microbrewery. The Corona Virus has resulted in a substantial number of microbreweries having been put up for sale. Therefore, if you ever wanted to buy and manage your own microbrewery - Contact Us – we’ll refer you to sellers of microbreweries and/or reputable business broker in your area.
LICENCE COMPLIANCE AUDIT – NON NEGOTIABLE
ALL licence holders – those with a licence or those thinking about applying for a liquor licence – must have a Licence Compliance Audit done. Why? Apart from being very convenient, the audit gives you-
- a clear picture of the requirements to get a liquor licence and
- clear guidelines on how to keep a liquor licence valid.
More importantly – getting up to date licensing information is the best way of ensuring you won’t be fined or face legal action. Talk to us about checking if a licence is valid and compliant. You cannot afford not to! – customized for your business and premises.