As you may have noticed, I have some strong opinions on the so-called craft distiller license in Washington State.
I am a craft distiller. I use 17th through 19th century techniques and recipes, and equipment that is literally medieval in in design. It doesn’t get much more hands-on and low-tech than this, not anywhere indoors anyway.
But aside from the foolish notion that a license can confer craftsmanship, I’m concerned about the ill-considered requirements and the misleading way the alleged benefits of this license are habitually portrayed in the media.
I know this makes me sound like the Scrooge of the local spirits scene, but nothing could be further from the truth. I just want everyone concerned to understand the facts about this issue.
I’ve been carefully considering the hindrance/benefit ratio of the craft license for a long time and in the final analysis, it didn’t compare too favorably with the standard license, at least not in my case. So I’m going to opt for a standard distillery permit after all.
Let’s compare the pros and cons exclusive to each license:
Craft Distillery License
Pros
1. Reduced license fee: $100 annually
2. On-site sales and tastings
Cons
1. Limited to 60,000 gallons total production per year
2. Must use at least 51% Washington-grown raw materials (water doesn’t count)
3. On-site sales are limited to two liters per person per day
4. Additional reporting paperwork certifying compliance with the 51% requirement
5. On-site sales are accompanied by additional reporting and compliance paperwork because technically, you’re wholesaling the spirits first to the state and then acting as a retail agent of the state by re-selling them to the consumer.
Standard Distillery License
Pros
1. Unlimited production.
2. Use of raw material from anywhere in the world.
3. Greater range of products within practical feasibility.
Cons
1. License fee: $2000 annually
2. No on-site sales and tastings
So, why am I going for the standard license? It’s a no-brainer, really.
Reason 1. The limits imposed on the distillery. Considering this: the selling points of this new tier of licensing were a) to benefit local agriculture by requiring use of local produce, and b) to encourage the growth of our state’s micro-distilling industry. It’s quite literally counter-productive to impose completely arbitrary limits on production.
51% rule: If a needed ingredient is not grown or made in Washington (such as neutral spirits or sugar cane) , one must produce it here oneself. This requires additional labor and expensive equipment not needed otherwise. It’s a whole different operation model, and one that goes counter to the traditional manufacturing practices of many spirits.
2 Liter per-day rule: Two liters are not evenly divisible by any of the common federally-approved bottle sizes, effectively making the limit actually either 1.5 liters (two 750ml) or 1.875 (two 750mls and one 375ml). Awkward.
Reason 2. I want to grow my business according to my own talent and ingenuity, not have it predestined to plateau and stagnate at a specific, dartboard-generated level determined by someone with literally no experience in the industry. The limit has already been increased by 300% (from 20,000 gallons) since the initial enactment of this license, when those who initially proposed the limit ran up against it. I expect it will be increased again.
Reason 3. I’ve been corresponding with foreign artisan distillers and I’d like to bottle some imported spirits in addition to those I make myself. If I decide to distribute them nationally, as I do with Marteau, the annual production limit will come up pretty quickly.
Reason 4. On-site sales, although fun, emotionally gratifying, and great PR, were not going to make up a meaningful percentage of my business, especially with a two-liter per day limit!
Reason 5. Aside from the on-site sales, I can still do everything I could do with a craft license, and I can do more of it! That means a thriving business for me, more great spirits for you, and more revenue for local farmers from us than from any “craft” distillery.
Remember: a license doesn’t confer craftsmanship or guarantee quality. That can only come from skill, an intimate and caring connection with time-honored processes, and the best quality ingredients available.
In the end, for me, the unfairly limited benefits of the “craft” license are a very puny carrot at the end of too long a stick.
Cheers!
~ Gwydion