Application for a Distillery Liquor Licence

Choose below to read all the Basic Liquor Licence Information (A) you need to know OR More Liquor Licence Information (B) for a more in depth look about a liquor licence for a Distillery.

Before you scroll down, consider this -
Can you think of any Distillery which has closed permanently? No? This gives you some idea of the value, potential and permanency of a liquor store liquor licence. It’s worthwhile persevering to get a Distillery and to hold onto your Distillery once you have it.

A. BASIC INFORMATION ON A DISTILLERY

• HOW TO APPLY (GET) A DISTILLERY = LIQUOR LICENCE APPLICATION
• HOW TO RENEW (KEEP) A DISTILLERY = YEARLY RENEWAL
• HOW TO BUY OR SELL A DISTILLERY = LIQUOR LICENCE TRANSFER
• COST OF A DISTILLERY
• LIQUOR STORE TRADING HOURS 

HOW TO GET A DISTILLERY = 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 distillery. 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 distillery in the area. They can only visualize your Distillery if your application is professional, detailed and accurate. If not, your application will be postponed or refused. Read more on the Distillery application process below.

HOW TO KEEP A DISTILLERY = YEARLY RENEWAL

Once you have your Distillery, 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 DISTILLERY = LIQUOR LICENCE TRANSFER

Buying a licensed Distillery allows you to use the existing liquor licence to continue to manufacture and sell liquor. You don’t have to apply for a new Distillery. You continue selling liquor without any interruption while the  Distillery’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 DISTILLERY

The cost structure of a Distillery is quite simple. It costs can be described as follows :

• Cost to get a Distillery
  • 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
    
    
• Cost to keep a Distillery valid
  • Licence renewal fee - payable every 12 months,
  • Penalties / Fines - payable if you paid late or failed to enforce the licence conditions

DISTILLERY TRADING HOURS

 Distillery 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  Distillery 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  Distillery’s trading hours extended in some areas. So, 2  Distilleries 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 Distillery owner needs to know the liquor trading hours for a Distillery 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 DISTILLERIES?

• WHY IS A LIQUOR LICENCE IMPORTANT FOR DISTILLERIES?
• WHAT CAN YOU DO WITH A DISTILLERY?
• DIFFERENT KINDS OF DISTILLERIES
• TARGET MARKET
• INCOME GENERATOR
• RUNNING COST OF A DISTILLERY
• COST OF BUYING OR SELLING A DISTILLERY
• LICENCE COMPLIANCE AUDIT – A MUST

WHY IS A LIQUOR LICENCE IMPORTANT FOR DISTILLERIES?

It’s obvious, isn’t it? No liquor licence = no Distillery! That’s why a liquor licence is the main and most important asset of a Distillery.

WHAT CAN YOU DO WITH A DISTILLERY?

You can sell only liquor produced in a Distillery directly to the public.   Your customers can enjoy your liquor on your premises or take it away to enjoy at home, take it to a restaurant, a party or wherever it is legal to drink.

DIFFERENT KINDS OF DISTILLERIES

Distilleries can be found in all sizes and locations. The basic options are the following :

Ownership

• Group Distillery.   Although this is still not very common due to distillery owners preferring to go solo.  If you join a Distillery group, 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 Distillery. You are your own boss and have the power to decide how you would like to manage every aspect of your business.

Location

• Stand alone – your Distillery is contained in its own property, not connected to other shops.
• Drive-through – This isn't very common, but may become much more likely if the public continues to be concerned to keep a safe social distance due to the Corona Virus. 
• Shopping centre – the Distillery shares parking, toilets, security and other services with a large mix of other businesses

DISTILLERY TARGET MARKET 

The target market of a Distillery really is anyone over the legal drinking age.

 A DISTILLERY AS AN INCOME GENERATOR

A Distillery can be an excellent income generator, as it is versatile and allows you to sell liquor in a number of ways -

• on the shopping floor inside your Distillery,
• deliver on order, as well as
• through an online e-commerce Distillery.

To discuss additional options, don’t hesitate to Contact Us 

RUNNING COST OF A DISTILLERY

A Distillery’s running cost is relatively inflexible 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.

COST OF BUYING A DISTILLERY

Good news. There’s a Distillery 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 a small or a larage Distillery. Contact Us – we’ll refer you to sellers of Distilleries 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.