How To Set Up A Brewery In The UK: Licences, Steps & Contracts

Launching a brewery is an exciting move for many founders. Craft beer continues to grow, taprooms create strong local communities, and wholesale contracts can scale quickly.

But breweries are highly regulated. Getting your licences, registrations and contracts right from day one will save you costly delays, refusals and compliance headaches later.

In this guide, we’ll step through the legal groundwork for setting up a brewery in the UK - from choosing a business structure and finding premises to securing alcohol permissions, food safety registration, health and safety duties, and the key contracts that protect your business.

Is Setting Up A Brewery In The UK Realistic For Small Businesses?

Yes - if you plan carefully. Many successful UK breweries started small, built a loyal local market, then scaled. The main challenges aren’t just the brewing kit or the recipes; they’re regulatory:

• Securing the right alcohol and premises permissions (and timing your applications)
• Registering with HMRC for Alcohol Duty and keeping compliant records
• Complying with food hygiene, health and safety, environmental and labelling rules
• Putting robust contracts in place with suppliers, distributors and venues

Handled well, these become stepping stones rather than stumbling blocks. A clear roadmap and the right documents will keep you on track and investor-ready.

Step-By-Step: How To Set Up A Brewery

1) Map Your Model And Business Plan

Decide where your revenue will come from. Many breweries start with a mix of taproom sales, direct-to-consumer (D2C) online orders and local wholesale accounts (bars, restaurants, bottle shops). Your plan should cover:

• Capacity, batch sizes and production schedule
• Routes to market (taproom, e‑commerce, wholesale, contract brewing)
• Brand, core range and seasonals, packaging formats (keg, cask, can, bottle)
• Premises needs (water, drainage, ventilation, floor load, height, access)
• Licensing pathway and timelines
• Budget for fit‑out, licensing, compliance and contingencies

2) Choose Your Business Structure

For breweries, a limited company is common because it provides limited liability and is often preferred by distributors and investors. Other options include sole trader and partnership, but they expose owners to personal liability for business debts.

If you’re leaning towards a company, you can register a company early to secure your name, open a business bank account and set up shareholding.

If you have co-founders, set expectations in writing from the start. A Shareholders Agreement covers decision-making, roles, vesting, exits and what happens if someone wants to sell or leaves the business.

3) Lock In Your Premises And Fit-Out

Brewery premises are specialist. You’ll need adequate floor loading, power, ventilation, water, drainage, space for fermentation and cold storage, and safe access for deliveries. Most landlords will expect a detailed fit‑out plan.

Before you sign, consider a Commercial Lease Review to flag repair obligations, service charges, permissions for extraction and drainage works, and whether you can install a flue or external tank. Many leases require landlord consent for alterations; make sure that’s realistic for your brew kit.

Planning permission or change of use may be required (brewing is often B2 industrial). Local councils vary - speak to your planning officer early, especially if you’re adding a taproom or external signage.

4) Apply For Licences And Register As A Food Business

Licising is critical and timelines matter. We cover the detail below, but as a general sequence: register with your local authority as a food business (at least 28 days before trading), apply for premises and personal licences for alcohol (if you’ll sell retail), and register with HMRC for Alcohol Duty as a producer.

5) Set Up Your Processes And Compliance

Put in place HACCP-based food safety procedures, labelling checks, Health & Safety risk assessments and COSHH controls for chemicals. Agree trade effluent discharge with your water company. Build record-keeping systems for duty, traceability and recalls.

6) Get Your Core Contracts And Policies In Place

Draft supplier contracts, distribution terms, taproom policies, website terms, and employment documents. These protect your margins, reduce disputes and keep you compliant - we outline the must-haves later in this guide.

What Licences, Registrations And Permissions Do Breweries Need?

Breweries usually need a combination of alcohol licensing, food registration and HMRC approvals. The exact mix depends on your model (production only, taproom, wholesale, D2C).

Alcohol Production And Sales

• HMRC Registration (Alcohol Duty): If you produce beer, you must register with HMRC as a beer producer and comply with the Alcohol Duty regime (reformed from 1 August 2023). Expect due diligence checks, premises details, fermentation/packaging capacity and ongoing duty returns.
• Alcohol Wholesaler Registration Scheme (AWRS): If you wholesale alcohol to other businesses, you may need AWRS approval and must trade only with approved wholesalers (verify their URN).
• Premises Licence (Licensing Act 2003): For on‑site taprooms or retail sales, your premises will need a licence covering the sale of alcohol and your opening hours. You’ll also need a designated premises supervisor (DPS) who holds a Personal Licence.
• Temporary Event Notices (TENs): Useful for one‑off events or launches, within statutory limits.

Alcohol rules can be complex; we’ve got a broader overview of alcohol licences if you’re weighing up a taproom versus wholesale-only approach.

Food Business Registration And Hygiene

• Food Business Registration: Breweries are food businesses. You must register with your local authority at least 28 days before starting operations. Expect inspections and a Food Hygiene Rating.
• HACCP Procedures: Implement and document hazard analysis and critical control points appropriate to brewing, packaging and taproom service.
• Food Safety Training: Ensure staff training matches roles (e.g., taproom, packaging line, cellar work).

If you’re unsure how local registration interacts with alcohol permissions, our practical guide to getting a food licence walks through timing and council approvals.

Environmental And Building Permissions

• Trade Effluent Consent: Brewing creates effluent. You’ll likely need consent from your water company for discharge (pH, temperature, solids, and cleaning chemicals are key).
• Planning/Change Of Use: Check if you need planning permission for brewing operations, extraction equipment, flues or a taproom.
• Building Control: Significant alterations, drainage works or mezzanines may require Building Regulations sign-off.

Labelling And Weights

• Labelling: Follow food labelling rules (allergens if relevant, ABV, best before, origin claims, ingredient declarations where required) and alcohol-specific labelling guidance. Avoid health claims.
• Weights And Measures: If selling pints in a taproom, comply with prescribed quantities and use verified measuring equipment.

Key UK Laws Your Brewery Must Follow

Alongside licensing and registration, several areas of UK law will apply to most breweries. Here’s how to approach them in plain English.

Consumer Law (Consumer Rights Act 2015)

If you sell to consumers - in your taproom or online - your products must be of satisfactory quality and match their description. You need fair terms and a clear refunds process. For online sales, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 require pre‑contract information and, in many cases, a 14‑day cooling-off period for consumers.

In practice, this means having clear, accessible Terms of Sale tailored for online and in‑person transactions, and consistent staff training in handling returns.

Data Protection (UK GDPR And Data Protection Act 2018)

Running an online shop, taproom Wi‑Fi signups or a mailing list means you’re processing personal data. You must have a lawful basis for processing, keep data secure, and give customers a transparent privacy notice. You’ll also need to handle subject access requests within statutory timeframes.

Make sure your website displays a compliant Privacy Policy and, if you use cookies for analytics or marketing, that your cookie banner and consent flows are configured correctly.

Health And Safety (HSWA 1974, COSHH, Manual Handling)

Brewing involves hot liquids, CO₂, chemicals, heavy lifting and confined spaces. You must complete risk assessments, implement controls (e.g., guarding, ventilation, PPE), and train staff appropriately. COSHH assessments are needed for cleaning and sanitising chemicals; safe systems of work are essential for keg handling, dry hopping and vessel entry.

This isn’t about box‑ticking - it keeps your team safe and your business running. Our overview of health and safety in the workplace outlines employer duties and practical steps.

Employment Law

Hiring taproom, production or delivery staff triggers duties around written terms, minimum wage, working time limits, break entitlements, holiday pay and pensions. Set out roles clearly, include confidentiality and IP clauses where relevant, and make sure rotas and overtime comply with the Working Time Regulations.

Always issue a written Employment Contract on or before day one, and support it with a staff handbook covering health and safety, allergens, incident reporting, and alcohol service policies.

Advertising And Pricing

Alcohol advertising must comply with the CAP Code and avoid promoting irresponsible drinking. Discounts and promotions should be clear and not misleading under consumer law and trading standards rules. If you state “recommended retail price”, make sure price claims are accurate and up to date.

Tax And Duty Compliance

Alongside corporation tax and VAT (if you register), breweries must calculate and pay Alcohol Duty. Keep accurate production records, duty calculations, stock movements and wastage logs. If you wholesale, complete due diligence on your supply chain (including AWRS checks).

What Legal Documents Should A Brewery Have In Place?

The right documents don’t just tick boxes; they protect revenue, define responsibilities and prevent disputes. Here are the essentials most breweries rely on.

Founders And Structure

• Company Constitution and Shareholders Agreement: Clarify voting rights, share vesting, dividends, new share issues, exits and dispute resolution. A tailored Shareholders Agreement is a cornerstone for multi‑founder breweries.

Premises

• Commercial Lease: Negotiate and review clauses on alterations, signage, service charges, rent reviews, break rights and dilapidations. A Commercial Lease Review can highlight landlord consents needed for extraction, drainage and plant installation.
• Fit‑Out And Installation Contracts: Written contracts for brew kit supply, installation and commissioning, with clear timelines, warranties, liquidated damages and insurance responsibilities.

Supply Chain And Sales

• Supply Agreement: Fix pricing, specifications, minimum order quantities and delivery terms for malt, hops, yeast and packaging. Clear liability caps and force majeure provisions help manage risk.
• Distribution Or Reseller Agreement: Define territory, exclusivity (if any), credit terms, marketing support and kegs/cask handling responsibilities.
• Wholesale Terms: Short-form terms for trade customers, including payment, delivery risk and returns.
• Direct-To-Consumer Terms: For online sales, include delivery timelines, age verification, restricted delivery procedures and refunds aligned with consumer law. Robust, plain-English Terms of Sale will set expectations and reduce disputes.

Website And Data

• Privacy Policy And Cookies: A GDPR‑compliant Privacy Policy and cookie practices to cover account creation, newsletter signups and marketing tools.
• Website Terms: If you run an online shop, pair your privacy documents with Online Shop or Website Terms to set acceptable use, IP ownership and liability limits.

People And Operations

• Employment Contracts: Role descriptions, pay, hours, overtime, confidentiality, and IP clauses for production and taproom staff.
• Staff Handbook/Policies: Health and safety, allergens, incident reporting, age verification and responsible service of alcohol.
• HACCP And Food Safety Documentation: Procedures, monitoring records and corrective actions tailored to brewing and packaging.

Brand Protection

• Trade Marks: Consider registering your brewery name and logo, and potentially flagship beer names, to prevent copycats and protect your investment in brand. A short early step like filing to trademark your logo can save you major pain later.
• Artwork And Licensing: If you commission label art, ensure you have an IP assignment or licence with the designer so you own the rights you need to reproduce and merchandise.

Common Brewery Pitfalls (And How To Avoid Them)

Plenty of brewery headaches can be avoided with early planning. Watch out for these traps:

• Signing A Lease Before Licensing Feasibility: Don’t commit to a long lease until you have local authority comfort on licensing, planning and trade effluent permissions.
• Underestimating Ventilation And Drainage: Fit‑out constraints can balloon costs. Confirm your landlord permits core drilling, flues and external plant.
• Weak Age Verification: For taprooms and deliveries, put in place robust checks and document the process.
• Vague Wholesale Terms: Unclear credit terms or title/risk clauses can cause cash flow issues. Tighten your trade terms and enforcement tools.
• Unclear Duty Records: Keep meticulous logs of production, losses and destruction - they’re essential for HMRC duty audits.
• Website Legals As An Afterthought: If you’re selling online, align your checkout disclosures with your Terms of Sale and ensure your Privacy Policy matches how you actually operate.

Budgeting And Timelines For Licences And Fit-Out

Timescales vary by council and workload, but as a rough guide:

• Food Business Registration: Notify at least 28 days before opening; inspection timing varies.
• Personal Licence: Several weeks, including background checks and exam (APLH).
• Premises Licence: Minimum 28-day consultation period; build in time for representations or hearing.
• HMRC Alcohol Duty Registration: Can take several weeks; start early and keep clear site/equipment evidence ready.
• Trade Effluent Consent: Water companies’ reviews can take weeks; get your discharge data and cleaning SOPs ready.

To keep momentum, sequence applications sensibly, prepare complete packs (plans, operating schedules, notices) and keep detailed records of your process in case authorities ask follow-up questions.

Selling Online, In Taprooms And Wholesale - What Changes Legally?

Taproom

You’ll need a premises licence with on‑sales authorised, a DPS holding a personal licence, staff training in responsible service, and age verification processes. Customer safety policies (glassware, spills, intoxication) should be in your handbook and risk assessments.

Online/D2C

Age verification at checkout and on delivery is essential. Provide pre‑contract information, delivery timeframes and returns processes that align with consumer law. This is where clear Terms of Sale and a compliant Privacy Policy are non‑negotiable.

Wholesale

Check AWRS status where relevant, run supply chain due diligence, and make credit terms crystal clear. Consider exclusivity carefully - if you grant it, define territory, performance targets and termination triggers. Many breweries pair a Distribution Agreement with carefully drafted Sale of Goods or Supply Agreement terms.

Should You Start Small With Contract Brewing?

If premises and fit‑out are your biggest hurdles, some founders start with contract brewing (having an established brewery produce to your recipe and brand) to test the market. You’ll still manage brand, sales and compliance for your route to market, but you won’t need your own production kit at the outset.

If you go this route, use a clear contract covering recipe confidentiality, quality control, tasting/approval rights, production slots, packaging specs, delivery risk, liability caps and IP ownership of the brand and artwork.

Protecting Your Brand From Day One

Before you print labels or signwriting, run checks on your brewery name and flagship beer names. Conflicts with existing trade marks can force expensive rebrands. Filing to trademark your logo and word marks early is a smart move, especially if you plan to expand nationally or sell in supermarkets.

Key Takeaways

• Choose the right structure and put founder terms in writing - a company and a well‑drafted Shareholders Agreement are common foundations for breweries.
• Be strategic with premises - get a Commercial Lease Review and discuss extraction, drainage and planning early to avoid fit‑out surprises.
• Secure the right licences in the right order - register as a food business, obtain alcohol permissions, and register with HMRC for Alcohol Duty (and AWRS if you wholesale). For retail/taproom models, check your alcohol licences pathway.
• Build your compliance system - HACCP, health and safety, COSHH, traceability, duty records and trade effluent consent keep you legal and audit‑ready.
• Get core contracts in place - supply, distribution/wholesale, website Terms of Sale, employment documents and IP ownership for label art protect your margins and brand.
• If you sell online, pair a clear checkout flow with a GDPR‑compliant Privacy Policy and age‑verification processes.
• Protect your brand early - searches and trade mark filings reduce the risk of costly rebrands once you’ve built market recognition.

If you’d like help setting up a brewery - from licences and contracts to data protection and brand protection - you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no‑obligations chat.