A crazy opportunity

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While trying to find out information on obtaining a permit to sell wine I was talking to a local distiller. It is a small two person operation that is licensed to produce distilled spirits. The place is called Cheseapeake Bay Distillery, you can look it up on the net. While talking to the owner and telling him what wines I make he asked to get 10-20 gallons of my strawberry to distill. I am still working on the legality of him getting this but unless something legal stops this from happening I will have some strawberry liqueur next year. This I can't wait for, if it all works out and the strawberry is good then I will work on making others for him to distill.

Just so there is no confusing this with something illegal, we are checking into the legality of this before it happens.
 
I have wondered if there is a business opportunity in getting a license to distill and allowing people to supply their own brews to be distilled.
 
I work for a company that has a brewery, winery and distillery license. Getting legal is the easy part, paying taxes is HUGE. Beer and wine have very low taxes to be paid, liquor is a whole different story. Beer is taxed on barrel amounts, wine on bottles and their alcohol content, liquor is based on what is called "Proof Gallons". A fifth could have as much tax as $15 - $20 per bottle. Check with the TTB.
 
There is some rules that say something about the one supplying also has to have a license to sell alcohol. Almost like a vineyard that does not produce wine but provides grapes to a winery. The vineyard also has to have certain permits in order to provide a product under a contract that is used to produce alcohol. I am still researching all these little laws. I want to open my own little winery but after talking to this guy who owns this distillery I might have a change of mind and go for a distillers license. He only produces 4000 gallons a year and is in pretty good shape doing it. The only advantage he had was investors, I don't have that at least not yet. Any volunteers???????
 

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