How to Select the Perfect Location for a Distillery

By: Kris Bohm: Owner of Distillery Now Consulting LLC.
When someone begins the journey of starting their own brand-new distillery one of the earliest decisions that must be made is finding the right location where the business will operate. Location scouting can be a tricky process to navigate as there are different options and someone who is new to distilling may not know if a potential location is properly suited for a distillery. Properly vetting a location where a distillery will be built can sometimes be the difference between the business succeeding and failing. In this article I’m going to break down all of the key factors to look at when considering a location. The difference between the right and wrong place can often mean hundreds of thousands of dollars in difference of build-out cost that could be avoided. Let’s look at some of the key details to help you find the perfect location for your distillery. It is important to have an idea about what type of business your distillery will operate. Will it be a more manufacturing focused or tasting room / customer focused business? The answer to this question will play a strong role in selecting a location as we go through things. Lets jump right in to determine if a location is the right place for you.
The first item we look at when vetting a location is zoning. Most distilleries end up being built in areas zoned industrial. If a potential building is zoned light or heavy industrial to allow for manufacturing of distilled spirits it will make the process of permitting for construction and operation far easier than it would be if zoned differently. In many potential locations there are buildings that may seem excellent fit but the zoning of the building itself may completely prohibit a distillery from operating in that building. Taking the time to contact the local authority who regulates zoning within a given area is the fastest way to determine the viability of a location.
Throughout the world there are many terms that define zoning. One term we often encounter in big cities is that areas are zoned for manufacturing. As you start to look for locations to build a distillery that are zoned industrial you will often find that these locations are less than ideal for drawing visitors. Industrial zoned areas are often far flung from commercial districts and do not draw foot traffic or visitors easily. A location like this can create big challenges for a new startup distillery as attracting visitors to an industrial neighborhood with little or nothing for visitors to do beyond visiting your distillery can create a barrier to a successful tasting room. If you find yourself comparing two different buildings and one location is closer to commercial districts or tourist areas it would be wise to go for the location that is more accessible for visitors. Sometimes the hunt for the perfect building or potential sites that are zoned correctly does not conclude with a good location being found.
In this case there may be the option to pursue a zoning variance for use of the location that is currently zoned for other uses. Be careful with this approach as zoning variances can be costly and timely to obtain. It is best to consult with local officials and experts prior to committing to use a location that is not zoned appropriately
Utility service is a very important factor in considering the viability of a potential location. When it comes to utility service there are several utilities that are considered. Fire protection (sprinklers), Domestic water, Electric service, Gas service, Sewer are the five common utilities that are essential to assess when considering a location. It is quite rare that a location will have all the utilities sized correctly for a distillery, but if some utilities are sized right this can reduce overall construction costs. When a building doesn’t have all utilities needed we will typically approach the city to determine what it will cost to upgrade so that the equipment and building can function as intended for a distillery. Let’s dive a bit further into each of these utilities to discuss what we look for in each type.
Fire protection is essential. A distillery is in the business of making flammable liquid and from a utility stand point mitigating fire hazards is done with sprinklers and fire alarms. The ideal fire protection in a building would include sprinklers as well as a nearby fire hydrant or hydrant on the building. Sprinklers and a hydrant are typically adequate for most distilleries. If the potential building you have found does not have fire protection you will want to find out what it will cost to bring these utilities to your building. In some instances we have seen the addition of sprinklers and a fire hydrant cost hundreds of thousands of dollars. Most folks would prefer to avoid a cost like this if at all possible so finding a building that is sprinkled will drastically reduce the cost of construction.
The availability of natural gas near the building or already in the building is an essential utility for a distillery. Heating a boiler via natural gas to create steam for heating of the manufacturing equipment is the most cost-effective way to heat distillery equipment. A building with a natural gas line that is large enough to meet the demands of the steam boiler and other equipment that requires gas in the building will help tremendously to reduce the cost of construction of the distillery. If natural gas is not available some distilleries will use liquid propane gas instead. Propane is more expensive to heat with versus natural gas and is not the preferred fuel, but in rural areas this may be your only option.
Water is the lifeblood of a distillery and is an essential utility that must be carefully considered. Size of a water line and quality of water is essential to the process. To determine if the size of the water line and service is suitable. We look for a water line 1 inch or larger coming into the building and a 1.5-inch line is ideal for most smaller distilleries. Water is part of almost every process in a distillery, having an abundance of water can mean the difference between spending hours waiting for the water you need to fill a tank or having the water you need on demand to get the work done you need to do.
Sewer and liquid waste water lines are an essential utility service. Many old buildings have small sanitary sewer lines that are not large enough to handle the high flow rates of wastewater that a distillery produces. The ideal sewer line size is at minimum a 4 inch line and is ideally connected to floor drains which will collect most washdown and waste water from the manufacturing process. It is preferable that the line be made of cast iron as opposed to PVC but not essential. The reason for this preference of cast iron is that some processes within a distillery generate very hot water that is hotter than the operating temp that PVC can handle.
The final utility that we give consideration to when looking at a potential location is electricity. Operating manufacturing equipment related to distilling has fairly large electrical utility requirements. Large motors such as those on cookers, stills and chillers run off three phase power and you certainly can not just plug them into a standard outlet. Between the motors required for the distilling equipment and other loads such as HVAC the amperage load is quite large. At minimum a location that has three phase power with at least 400 amp service is a starting point for the electrical service needed for all of the equipment to operate. In larger distilleries electrical loads can vastly exceed 400 amp service so determining what equipment you will be installing and what the potential electrical load is can help in considering a location. It is good to point out as well that upgrading electrical service if there is already three phase service on the building is usually an easy service to upgrade.
Along with consideration of zoning and all the utilities, looking at the condition of an existing building is important. The condition of the roof, the floors, walls and structure itself are all quite important when considering a potential building. In a recent instance where we were considering a location for a client it was determined that the floor of the building could not adequately support the weight of the equipment we intended to install. Replacing this floor to bear the weight of the equipment added so much cost to the preliminary construction budget that it was determined that the location was not suitable for the business.
If you are in the process of considering locations to build your distillery, take your time in vetting the potential location. Email us at Distillerynow@gmail.com for a free copy of our detailed Site Assessment Checklist to help consider your location.