Starting a beverage brand that includes alcohol isn’t as simple as creating a recipe and bottling it. There are legal layers that need to be handled before your product hits shelves or taps. Regulations vary depending on your location and the type of alcohol you plan to sell. But one thing is certain: licenses are not optional—they’re required at nearly every level of the process.

As exciting as alcoholic beverage development can be, it’s important to understand the business side too. Before designing packaging or launching a website, you’ll need permits that allow you to produce, store, distribute, and sell your product legally. This includes federal, state, and sometimes local approvals. Without the right documentation, your business may face delays or legal issues later.

So, what do you actually need to get started? Let’s break it down by stage and type of license.

Federal Licenses Come First

To legally produce or sell alcohol in the U.S., your business must register with the Alcohol and Tobacco Tax and Trade Bureau (TTB). This is a federal requirement and applies to all alcohol types—beer, wine, spirits, and anything in between.

You’ll need to apply for:

Basic Permit: Required for producers, wholesalers, and importers
Formula Approval: Needed if your beverage contains non-traditional ingredients
Label Approval (COLA): To ensure your packaging meets federal standards

The good news? There’s no cost for many of these TTB permits, but processing can take weeks or even months, depending on your application type and accuracy.

Know Your Beverage Type

Not all alcoholic drinks are regulated the same. Each category—beer, wine, distilled spirits—follows its own set of rules. Understanding which category your drink falls into helps you avoid applying for the wrong license.

Examples:

Flavored malt beverages may be regulated like beer
Hard seltzers with added alcohol could fall under spirits
Fruit-based drinks can be considered wine depending on fermentation

During alcoholic beverage development, it’s helpful to classify your product early so you know which forms and steps to complete.

State-Level Licenses Are Mandatory

Once you secure federal approvals, your state will also require licensing. In fact, most states won’t let you operate until these permits are active.

You may need:

Manufacturer’s or distiller’s license
Wholesale license (if you distribute directly)
Retail license (for tasting rooms or direct sales)
Brand label registrations (state-level review of your packaging)

Each state has its own alcohol control board, and the rules vary. Some states have quota systems, while others make it easier to enter the market.

Local Zoning and Business Permits

Beyond federal and state licenses, your city or county may have additional requirements. This includes health permits, fire inspections, and location-based approvals.

Examples include:

Zoning approval for production facilities
Conditional use permits for tasting rooms
Local business operation licenses
Food handling permits if you serve snacks or meals

These often depend on whether you operate in a commercial kitchen, shared space, or production site.

Licensing for Third-Party Production

If you’re not producing your beverage in-house, you may work with a co-packer or contract manufacturer. In that case, you may not need a full producer’s permit, but you’ll still need federal and state business approvals.

In this case, you’ll still handle:

Brand ownership and label approvals
Import or wholesale permits (depending on the business model)
Retail or marketing licenses (if you sell directly online or in stores)

Even when outsourcing, you’re legally responsible for compliance related to your brand.

Alcohol Shipping and Sales Licenses

If you plan to sell your alcoholic beverage online or across state lines, you may also need shipping licenses. These differ by state, and many require Direct-to-Consumer (DTC) permits or partnerships with licensed distributors.

Key areas to consider:

Third-party e-commerce compliance
Distribution agreements
Excise tax registration in multiple states

This step often comes after initial alcoholic beverage development but should be part of your business planning early on.

Final Thoughts

Launching an alcoholic drink is a rewarding challenge, but one that comes with responsibility. From federal forms to local zoning laws, licensing is a crucial part of bringing your idea to life safely and legally. Whether you’re producing in-house or working with a partner, these permits are non-negotiable.

By preparing your paperwork as carefully as your product, you’ll be set up to grow without setbacks. Always allow time for approval processes and consider working with a consultant or legal advisor to guide your licensing journey. After all, success in the alcohol space starts with playing by the rules.