Written by Like many states, it seems that interest in opening and operating (lawful) distilleries in the state of Alabama is on the rise. In this blog post, we briefly touch on the license requirements and big picture do’s and don’ts of operating a distillery in the Yellowhammer State and Home of Golden Eagle Syrup (a beloved commodity in the Harrington household).
Alabama Distillery Requirements – Alabama ABC Board
First, it is important to note that Alabama has dry and wet counties. Some counties, like Fayette County, are ‘moist’ and specific municipalities within them allow for the sale of alcohol while others do not. In dry counties it is illegal to own a still for any reason and therefore the manufacturing and/or distilling of alcohol is prohibited. Thus, the ultimate analysis of a DSP in Alabama should include location eligibility.
Alabama is also a control state, meaning all spirits sales are regulated by the Alabama ABC Board. To distill liquor in Alabama, the applicant is required to obtain a Manufacturer’s License Type 200. The applicant is also required to obtain its DSP and basic permit approval from the TTB before obtaining its state license. The Type 200 License is what is required to manufacture, distill, produce, ferment, brew, bottle, rectify, or compound alcoholic beverages within the state. This is the only license the applicant is required to obtain at the state level.
Alabama utilizes a three-tier system, prohibiting distilleries from self-distributing. Distilleries (Suppliers) need to sell their product to distributors (wholesalers), distributors sell to retailers, and retailers sell to consumers.
In Alabama, there are no minimum annual production requirements for those with a Type 200 License. You can legally operate even if you only make a few dozen bottles per year. Alabama law sets no floor for production volume, but federal law defines small distillers as those producing 10,000 proof gallons per year or less. Alabama Alcoholic Beverage Control Board Administrative Code Chapter 20 – x – 9.04(1)(b) depicts the records the in-state distiller has to keep in order to operate.
Alabama Manufacturing Licensing and Requirements – State
Alabama state law (Ala. Code § 28-3A-6) prohibits anyone from distilling/manufacturing alcohol within the state without the Type 200 License. The manufacturer cannot sell any alcohol beverages direct to retailer or for consumption on the premises, except for the circumstances in Alabama Code § 28-3A-6(h). Manufacturers cannot maintain or operate in any other location in Alabama, outside of what is covered by the Type 200 License.
The licensed distiller is required to list the labels sold in state, file its federal certificate of label approvals/exemptions as required by federal law. All product not properly registered is considered contraband and can be seized by the ABC Board. The licensed distiller is required to mail to the board before the twentieth of each month a report of all shipments made to each wholesaler the previous month. The distiller also keep records that show the quantities of raw materials received and used in the manufacture of alcoholic beverage and the quantities of alcoholic beverages manufactured and stored, sold, stored for hire or transported for hire by or for the licensee, and the names and addresses of purchasers and recipients. All those with a manufacturer’s license in Alabama are subject to inspection.
A licensed distiller can conduct tastings or samplings on the licensed premise where the products are manufactured. All product for tasting or sampling shall remain on the premises and be “dispensed from a barrel or keg or other original containers.” See Ala. Code § 28-3A-6(h)(1). The licensed distiller may sell at retail liquor manufactured at the location to be consumed off-premises. The off-premises liquor may not exceed 4.5 liters per customer per day and must be sealed, labeled, packaged, and taxed in accordance with state and federal laws and regulations.
Educational Tourism Distillery License
In May of this year, Alabama enacted Ala. Code § 28- 3A-6.5. This created a new license for Educational Tourism Distilleries[1]. These distilleries must:
1. Follow the license required by §28-3A-21;
2. Produce, bottle, manufacture, distill, rectify, or compound 100,000 gallons or more of liquor a year;
3. Have 50% or more gross sales from that liquor;
4. Can export sales outside of the state; and
5. Comply with all other applicable laws and board rules.
Educational Tourism Distilleries are authorized to:
1. Purchase other alcohol from the board and sell for on-premise consumption, and liquor manufactured on-site may be sold for on-premise consumption in a designated area of no less than 500 square feet;
2. Purchase other alcohol for on-premises consumption in a freestanding separate structure on the licensed premises where the licensee provides or serves food. Any liquor manufactured on-site may be sold at retail for on-premises consumption in the designated area;
3. Serve other alcohol purchased from the board for on-premise consumption at designated serving stations on the premises for special events such as receptions. Any liquor manufactured on-site may be sold for on-premises consumption in the designated areas;
4. Sell at retail in a designated enclosed area with volume per patron requirements; and
5. Must provide patrons with the opportunity to participate in a guided tour. The licensee may offer tasting or sampling at the conclusion in a designated area.
QUESTIONS
Can a distillery sell samples and/or bottles at the premises? Yes. Pursuant to Alabama Alcoholic Beverage Control Board Administrative Code Chapter 20 – x – 7.11, spirits tastings can be conducted on any premises holding an ABC retail license to sell spirits. Alabama Code § 28-3A-6(h)(1) permits distilleries to “give away or sell” spirits manufactured there for consumption on premises, with the requirement that all alcoholic beverages manufactured and retained on the premises for tasting or sampling have to remain on the premises and be dispensed from a barrel or keg. Distilleries, pursuant to Ala. Code § 28-3A-6(h)(4), are permitted to sell at retail on its premises for off-premises consumption up to 4.5 liters per customer per day.
Can a distillery self-distribute any product? No. Manufacturers cannot sell or deliver directly to retailers. Alabama utilizes the three-tier system, requiring distilleries to sell through a licensed wholesaler.
Can a distillery in Alabama import to its premises bottled product produced at another distillery location and sell the product at the Alabama location? Out of state spirits suppliers need a license to sell in Alabama from the ABC Board. Alabama requires an importer’s license for any entity bringing bottled product in the state. Ala. Code § 28-3A-6(h)(4) only allows for sale for off-premises consumption the product manufactured on site. Having a finished product imported in and sold in Alabama is not permitted.
A very special thanks to Lindsay Chrise, lawyer on our liquor team, for all of her hard work and assistance with this article.
Last modified: August 1, 2025
