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Starting a Winery

This section covers the basic steps you must take to start a commercial winery. In addition, you may have to consider:

 

  • Trademarks
  • Distributor relationships
  • Contracts for purchasing grapes or custom crushing
  • Wine label approval
  • Getting land valued as farm use for tax purposes
  • Employer issues
  • Local health department compliance, and more.

 

Information about home winemaking can be found in the consumer section of the site.

 

ABC Permits for Wineries

Winery Waste Disposal Permits

 



Starting a Commercial Winery

Before starting a winery, you must:

 

  • 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.
  • 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.
  • Have your wine production facility inspected by the Federal 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.)

 

For more information about starting a winery, refer to:  

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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 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 wine, each year) -- TTB label approval is not required for wines sold exclusively in North Carolina, but it is recommended.
  1. Corporations, Limited Liability companies, and Limited Partnerships must register with N.C. Secretary of State at (919) 807-2000 or  Secretary of State. 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
  2. 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 
  1. 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.
    • For a list of winery-related ABC permits. See ABC Permits for Wineries .
  1. Contact NC Department of Revenue at (919) 733-3641 for Revenue License and instructions for submitting monthly shipment reports (regardless of sales).
  2. Order copies of the following:
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Distribution and Franchise Rules

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.
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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.

 

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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.

 

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Wine 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.

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Winery Definitions

  • 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

 

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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

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