Yes you will need a 3 gallon carboy or 3-1 gallon carboys but a 3 gallon would be better as youll have to put it back in 1 container to get all the other components mixed in and then have to put it all back in 1 gallon containers again. As far as bottles go you dont have to put in smaller bottles but I suggest you do cause this is a sipping wine and not a 2 or 3 glass wine a night but I guess it could be. I usually get 2 cases of smaller bottles which is usually 24 bottles and bottle the rest in big bottles for gatherings so I dont have to buy another case for 6 bottles. IMO this is the best dessert kit out there! I will make another batch this year as my dble batch from 2 years ago is getting very very low!