This section covers the basic steps you must take to start a commercial winery. In addition, you will also need to consider contracts for purchasing grapes or custom crushing, trademarks, wine label approval, getting land valued as farm use for tax purposes, local health department compliance, distributor relationships, and employer issues.

Before starting a winery:

• Consider these restrictions: You may produce tax-exempt, unfortified wine for personal or family use of up to 200 gallons of wine per year per two-adult household or up to 100 gallons per one-adult household. 
  
  
• Refer to the following guides for detailed information about starting a winery:  
  • A Virtual Winery Model
  • Winery Planning and Design by Virginia Tech's Dr. Bruce Zoecklein
  • Writing a Business Plan: A Guide for Small Premium Wineries
    
• Ensure your property is zoned appropriately by your county or by your city if within limits. State law exempts bona fide farms from zoning in a county, but not necessarily in a city. County or city zoning authority determines the limits for a bona fide farm. A vineyard and winery operation should be considered agriculture in most counties.
  
  
• Have your wine production facility inspected by the federal Alcohol and Tobacco Tax and Trade Bureau (TTB, formerly BATF) prior to obtaining a final permit. (However, it's a good idea to begin paperwork for both TTB and ABC six months to a year before your first planned commercial grape crush.)

Steps to Permitting a Winery:
Approval will likely be given in the following order, but you will want to call the appropriate offices immediately to receive forms and instructions at the same time.

1. Contact the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) for forms.
   
   Darlene M. Brown
   P. O. Box 25641, Fayetteville, NC 28314
   Phone: (910) 878-1500, Fax: (910) 848-1541, Cell: (202) 997-7376 
   
   Wayne Milstead
   Tax Audit Division
   North Carolina TTB Field Office
   1801 Stanley Road, Suite 210, Greensboro, NC 27407
   Phone: (336) 547-0837, Fax: (336) 852-9306, Cell: (202) 997-7363
   
   Product Compliance: (202) 927-8130/8140
   Special Occupational Tax: (800) 937-8864
   TTB National Revenue Center: (877) TTB-FAQS (882-3277)
   
   Call for instructions and forms to obtain: 

• Bonded winery license 
• Facility inspection
• Label approval for each label (each type of wine, each year) -- TTB label approval is not required for wines sold exclusively in North Carolina, but it is recommended.
  
  

• For more information, view the online TTB Wine Industry Compliance Seminar and TTB Wine FAQs.
  

2. Corporations, Limited Liability companies, and Limited Partnerships must register with N.C. Secretary of State at (919) 807-2000. You must determine type of ownership and obtain appropriate Articles of Corporation, operating agreement, etc. For more information on registering your business, visit the Start Your Business area of our website. 
   
   
3. Obtain licenses from the following:

• City Wine License from your local city hall, if within city limits
• County Wine License from your County Courthouse Tax Collector Division
• State Wine Tax License from N.C. Department of Revenue: (919) 733-3641 

4. Contact N.C. Alcoholic Beverage Control Commission (ABC) at (919) 779-0700 ext. 227 to obtain:

• Resident Unfortified Winery Permit ("on" or "off" premises) A Resident Limited Winery Permit is not necessary: ABC will allow you to sample wines at your winery without this even though the legislation doesn't specify this.
• Winery Special Event Permit if you will hold tastings and sales by glass or bottle in approved public places that do not necessarily have "on-premise" permits.
• Label approval applications and Distribution Agreement Forms
• Submit to ABC:
  • Applications and supporting materials for applicable permits as listed above
  • Wine analysis for each label (each type wine, vintage additions or deletions, not changes)
  • Label approval form for each label (each type wine, vintage as above)
  • Distribution Agreement Filing Form (ask your attorney about franchise law in Article 12)
  • Vendor Representative Permit for each person physically selling or soliciting orders
  • Keep close contact with Lisa Nelson, Product Compliance Manager. She is knowledgeable regarding ABC wine laws and rules and will answer your questions, sincerely and try to help your business succeed.
• See ABC Permits for Wineries for a list of winery-related ABC permits. 

5. Contact NC Department of Revenue at (919) 733-3641 for Revenue License and instructions for submitting monthly shipment reports (regardless of sales).
    Sales Tax Guide for Agricultural Products
   
   
6. View or order copies of the following:
   • Alcoholic Beverage Control Laws of N.C. (order form available from ABC) and N.C. Alcoholic Beverage Control Commission Rules 
   • Code of Federal Regulations, 27 CFR Parts 1, 6, 8, 11, 9, and 240 
     
     
7. See Winery Waste Disposal Permits for resources that will help you develop a winery wastewater management plan to ensure compliance with environmental legislation as well as with our state.
   
   
8. See Legal Issues & Direct Shipping for information and resources about legal and shipping regulations affecting the winemaking industry.
   
   
9. Register for UPC barcodes: Wineries selling wine in retail stores will most likely need UPC barcodes for their wines.  UPCs (Universal Product Codes) can be obtained through GS1 US, a nonprofit organization that regulates the codes.  Wineries must register with GS1 US to receive your own identification number for your UPCs.  An application fee and annual fee are required and vary depending on your business revenue and number of products.  For more information, contact GS1 US at 937-435-3870 or info@gs1us.org.
   

Be sure to register your winery with the North Carolina Wine & Grape Council.  Please fill out the  Winery Form with contact information and details about your winery.  Sign and return the completed Winery Form via fax to 919-715-5001 or by mail to: NC Wine & Grape Council, 4324 Mail Service Center, Raleigh, NC 27699.

If your winery is under construction, please still fill out the form and keep us updated on your progress and future opening date.  Also, please let us know whenever any of your information changes.  Once your Winery Form has been received, you will be registered to receive industry news from the council.

Marketing Materials - Map and Web site
Wineries must have winery and/or wine producer permits to be eligible for inclusion in the Wine & Grape Council marketing materials.  The council produces and distributes more than 200,000 copies of the annual Guide & Map to North Carolina Wineries, and oversees the NC wine consumer Web site, www.VisitNCwine.com.  To be eligible for inclusion on the map and VisitNCwine.com, your winery must meet the following qualifications:

• Completed Winery Form registered with NC Wine & Grape Council
• Obtain all winery and/or wine producer permits (TTB, ABC, etc)
• Produce wine from at least 5 percent of North Carolina grapes
• Have a tasting room at your winery
• Be open to the public

Once your winery meets all of the qualifications, please contact the Wine & Grape Council.  A representative of the Wine & Grape Council must visit your winery for confirmation before approving it for the map and Visit NC Wine Web site.  Once approved, your winery will be eligible for all council marketing materials.  Be sure to also see the other Marketing Tools available for wineries.

Register Your Winery with an Extranet Representative
To be listed on www.VisitNC.com and www.VisitNCwine.com, you must register your winery with your county’s extranet representative.  Be sure to provide hours, location, contact information, and any events occurring at your winery.  To find your county’s extranet representative, view the list of  Extranet County Contacts.

All wineries can be listed on www.VisitNC.com.  However, to be listed in the Wineries journey on www.VisitNC.com and on www.VisitNCWine.com, you must meet the Wine & Grape Council qualifications listed above.

Whenever you have any changes or additions to your winery information, be sure to update your extranet representative.  All Web site updates are coordinated by your county's extranet representative.

Dry Counties

• A winery holding a N.C. ABC winery permit may do the following:
  - Build a winery and produce wine
  - Hold tastings
  - Sell wine in closed containers for consumption on or off premises (depending on permit)
  - Sell wine by the glass regardless of eating establishment status.
• A winery in a dry or wet county in North Carolina may ship wine to an individual of legal drinking age in a dry county for personal (not commercial) use.
• A winery may hold up to three additional tasting and sales outlets separate at locations other than the winery, but these must be located in towns/counties where wine sales are permitted.

Winery Tastings

Tastings are regulated by ABC Rules T04:02S.0900. Tastings are legal when the retail permittee holds the appropriate on-premises unfortified winery permit; a special event permit may also be required if off the premises. The limited winery permit is not needed.

There is no tasting size restriction, but we recommend less than 1 oz. per taste to reduce liability. Additional rules govern tastings held by industry members for non-permittees and tastings held by industry members for retailers: samples.

Winery Retail Outlets

Primary retail outlet must be on the winery complex but not necessarily attached to the winery building. The winery complex must be engaged in some aspect of the wine manufacturing process (i.e. fermenting, aging, bottling, or labeling). This may be in a dry or wet county.

A winery may now hold up to three additional tasting and sale outlets separate from the winery, but these must be located in towns/counties where wine sales are permitted.

Winery Private Labeling

A company wishing to sell wine that has been privately labeled must hold permits allowing retail wine sales. This is not possible in a dry county unless the company holds a winery or wine producer permit from ABC.

• Importer - receives product from outside of state or country
• Exporter - regulated at federal level only
• Wholesaler = Distributor - could be winery with exemption to receive wholesale permit
• Retailer - could be winery on winery premise
• Fortified wine has brandy added to stop the fermentation.
• Unfortified wine is fermented naturally or with sugar and does not exceed 17% alcohol.
• Content of Wine for Labeling Purpose (Rules by TTB): 
  • American Wine may not be labeled a vintage 
  • Varietal Wine - 75% made from that grape variety (except labrusca which must be at least 51%) 
  • North Carolina Wine - 75% North Carolina Grapes 
  • AVA (American Viticultural Area designation) - 85% grapes from that AVA
  • Vintage Wine - 95% Grapes from that year
  •  Estate Bottled Wine -100% Grapes from winery-owned vineyards
• Bottle Sizes
  

  Half bottle	0.375 liters	0.5 bottles
  Bottle	0.750	1
  Magnum	1.5	2
  Double Magnum	3	4
  Jeroboam	5	7
  Imperial	6	8
  Methuselah	6	8
  Salmanazar	9	12
  Balthazar	12	16
  Nebuchadnezzar	15	20

Wine excise tax in North Carolina is payable to the N.C. Department of Revenue.  Download the excise tax form or contact the Dept. of Revenue at 919-733-3641 for more information.

N.C. Excise Tax:

• Unfortified Wine (less than 17% alcohol) - $0.2634 per liter
• Fortified Wine (17% to 24% alcohol) - $0.2934 per liter
  
  

Check out the links below for winery resources, supplies, consultants, classifieds, marketing tools and more:

• Supplies - Vineyard & Winemaking Supplies, Nurseries, References, Consultants, Services
  
  
• Classifieds - Grape Exchange, General Grower & Vintner Classifieds, Vineyards & Wineries For Sale, Employment
  
  
• Marketing Tools - Marketing, Public Relations, Web sites, Signage, Brochures, Exporting
  
  

• Grant and Financial Resources - Vineyard and Winery Business Models, Grant, Financial and Business Resources
  
  

• Resources and Links - Associations, Wine and Grower Related Links, Publications
  
  

• Wine Evaluation and Testing Facilities