8 THINGS TO CONSIDER WHEN STARTING YOUR OWN SPIRITS BRAND
Wharf Distillery has its roots in traditional cider making going back to 1995, and over the decades we’ve grown from a small craft operation into one of the UK’s longest‑established independent producers of cider, spirits and liqueurs.
We’ve been offering contract distilling and white‑label services since 2012, helping hundreds of founders turn ideas into fully fledged brands. Because we regularly work with new producers, from first‑time founders to established businesses, we’ve learned what really matters when starting a spirits brand.
This 8-part series distils that experience into clear, honest, real‑world guidance to help you get started the right way. And if you need deeper, personalised support, whether you’re launching a brand or planning to build your own production, we can provide one‑to‑one consulting to guide you through every step.
PART ONE - DO I NEED TO BE A LIMITED COMPANY?
We work with clients in every form: private individuals, sole traders, partnerships, charities, community groups, and limited companies. You don’t need to be a limited company to start exploring your spirits brand, and many founders begin the journey long before they formally register a business.
However, there are points in the process where being a registered business becomes essential. Some of the licences, registrations and insurances discussed later in this guide can only be issued to a recognised business entity. Likewise, if you plan to sell to trade customers, work with fulfilment partners, or enter into commercial contracts, you will almost certainly need to have a registered business in place.
That said, you don’t need to make this decision alone. We’ve supported hundreds of founders at every stage, from early‑stage hobbyists testing an idea to fully fledged companies preparing for national and international distribution. If you’re unsure which structure is right for you, we can offer initial guidance and help you understand the implications of each option before you commit.
WHAT WE TYPICALLY SEE
Over the years, we’ve noticed a few common patterns:
· Many founders start as private individuals while exploring ideas, branding, flavours or bottle options.
· Once they’re ready to commit to production, they usually register as a sole trader, partnership or limited company.
· Founders planning to sell to trade customers almost always become limited companies, as it simplifies AWRS, insurance, and due diligence.
· Some clients remain sole traders for years, especially those producing small batches for local markets.
There’s no single “right” structure, it depends on your ambitions, risk appetite, and long‑term plans.
WHEN YOU DON’T NEED A COMPANY YET
You can safely remain an individual or sole trader while you are:
· exploring ideas
· developing branding
· tasting samples
· working on recipes
· testing the market informally
· producing very small batches for personal use
· discussing options with us
At this stage, you’re not entering into regulated activity, so you have flexibility.
WHEN YOU MUST BE A REGISTERED BUSINESS
You will need to register as a business (sole trader, partnership or limited company) when you:
· apply for AWRS (Alcohol Wholesaler Registration Scheme)
· apply for a Premises Licence
· apply for a Personal Licence
· register as a food business
· take out public and product liability insurance
· sign contracts with fulfilment partners
· sell to pubs, bars, shops or wholesalers
· enter into commercial agreements with us (in some cases)
· want to protect your brand name legally
If you’re planning to scale, a limited company is usually the cleanest route, but it’s not mandatory.
COMMON MISTAKES FOUNDERS MAKE
We see the same pitfalls again and again:
· Registering a company too early before they know what they want to produce
· Registering too late, causing delays to licensing or AWRS
· Choosing the wrong structure because they didn’t understand the implications
· Assuming they need a limited company immediately (they don’t)
· Not protecting their brand name early enough
· Not budgeting for insurance
· Trying to apply for licences before forming a business
Avoiding these mistakes can save weeks, often months, of delay.
HOW WE CAN HELP
If you’re unsure which business structure is right for you, we can talk you through the pros and cons based on:
· your product
· your ambitions
· your budget
· your timeline
· whether you plan to sell to trade
· whether you want to build your own production in the future
We’ve guided hundreds of founders through this decision, and we can help you choose the structure that fits your goals, not someone else’s.
NEXT STEPS & USEFUL LINKS
EXPLORE EACH SECTION:
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- Do I need to be a limited Company?
- How do I start my own food business?
- What insurance do I need?
- Can I use any bottle (or pouch)?
- What do I need to put on the labels?
- Do I need a licence to sell to the public?
- Do I need a different licence to sell to trade?
- What about Duty (Duty, Duty Suspension, and Movements)?
RELATED SERVICES
Contract Distilling & White Label Services: Learn how we can produce your spirit, bottle it in bond, and support your brand from idea to shelf.
The Wharf Distillery Approach to Contract Distilling: Watch our video and come and Work with us to create your gin, vodka, rum or liqueur from scratch.
5 Tips for Choosing the Right Distilling Partner: A simple tool to help you quickly identify whether a distiller is genuinely equipped to support your project.
GET IN TOUCH
Contact Us: Get in touch to discuss your project, request a quote, or book a consultation.
Note: This guidance reflects our best understanding of current HMRC, legal and regulatory requirements. It’s provided for general information only and isn’t a substitute for formal tax, legal or regulatory advice. Rules change, and individual circumstances vary, so always confirm anything critical with HMRC or a qualified professional before acting. We’re always happy to recommend the most reliable and definitive sources of information if you need them.
