The number of small independent breweries in Northern Ireland has tripled over the last decade. There are currently over 30 active breweries. These new breweries are craft producers, specialising in small batches of niche beer styles.

What is craft beer?

Beer is an alcoholic drink made from malted cereal (usually barley), yeast, water and hops. It includes ales, porters, stouts and lagers. The term 'craft beer' is subjective, but usually refers to the small-scale production of beer, with a focus on authenticity, quality and flavour.

The term 'real ale' is used to describe cask-conditioned beer made with traditional ingredients.

Types of breweries

There are several different types of breweries in Northern Ireland:

Commercial brewery

This is a brewery producing beer on a large scale.

Microbrewery

This is a brewery producing beer in quantities smaller than large-scale commercial breweries.

Brewpub

Typically, this is a restaurant or pub that brews beer in-house for sale on their premises.

Client/contract brewing 

This involves a commercial agreement by which a brewer contracts out the production of its beer to another brewery, typically due to a lack of own premises or resources to scale up production. In such situations, the client brewer may brew their own product in the host's space, or the host brewery may assume responsibility for the production. 

Commissioning

This involves a business that commissions the entire beer-making process (including recipe development) to a brewery, and labels and sells the beer as its own. For example, a bar or restaurant may commission a signature beer.

Food and drink tourism

Craft beer is an important part of Northern Ireland's food and drink tourism landscape. Trying locally-produced beer can be a key part of an authentic visitor experience. Tours, tastings, and special events can showcase the region's local beer offering. See food tourism opportunities.

Licensing

Breweries, cideries and distilleries with a licence for off sales may sell their own products directly from their production premises and in certain circumstances, from other licensed and unlicensed premises on an off-sales basis. Once a licence for off sales has been granted, a local producer may also apply for a suitability order and authorisation to allow sales for consumption on the premises in certain circumstances.

See how to apply for a licence to sell alcohol in Northern Ireland.

Northern Ireland has a history in distilling spirits and has traditionally produced Irish whiskey. However, in recent years, there has been a surge in locally produced gins.

What are craft spirits?

Spirits are alcoholic drinks made by distilling fermented grains, fruit or vegetables. Examples include vodka, whiskey, rum and gin. They have a higher alcohol content than beer or wine as the distilling process removes water. This is normally over 30% alcohol by volume (ABV).

Spirits may be flavoured in some way. Whiskey is flavoured by being aged in wooden casks. Botanicals such as juniper add flavour to gin. Distilled drinks with added sugar are known as liqueurs. For example, Irish cream or honey liqueurs.

'Craft spirit' and 'craft distilling' are subjective terms. They usually refer to products made in small batches with a particular focus on quality. A craft gin product may use unique or local botanicals for flavour.

Irish whiskey

The term 'Irish whiskey' is protected. It may only refer to spirits distilled and matured on the island of Ireland, including Northern Ireland. Irish whiskey is famous around the world. Distilleries are a major attraction for whiskey enthusiasts and can offer great food tourism opportunities.

Whiskey can be a challenging product for a new distiller. Whiskey must be aged for a minimum of three years (and often longer) in wooden casks before bottling. This means it will be years before the product can be sold to generate revenue.

Gin

Gin has experienced a recent increase in popularity. Gin sales grew by 184% between 2014-2020 on the island of Ireland, with at least 37 distilleries on the island now producing Irish Gin. The Irish Gin Strategy 2022-2026 aims to maintain market share, grow sales and ensure the quality and standards of Irish Gin are protected.

Gin can be produced relatively quickly, making it appealing to start-up distillers. An aspiring whiskey distiller may decide to also produce gin to bring income to the business during the first years.

Irish poitín

Poitín, also known as poteen, is a strong alcoholic spirit that was traditionally distilled illicitly in small batches. Since it's legalisation in the Republic of Ireland, it has gained popularity as a legitimate product. Like gin, it does not need to be aged. The term 'Irish poitín' is protected and may only refer to a spirit distilled on the island of Ireland, including Northern Ireland.

Licensing

Distilleries, who have been granted a licence under Article 5(1)(m) of the Licensing (NI) Order 1996, may sell their own products directly from their production premises and in certain circumstances, from other licensed and unlicensed premises, on an off-sales basis. Once a licence for off-sales has been granted, a local producer may also apply for a suitability order and authorisation to allow sales for consumption on the premises in certain circumstances.

Northern Ireland has a long history of cider making. Armagh in particular is well known as an orchard county, and has grown apples for over 3,000 years. There are currently around 250 commercial apple growers in Armagh.

Several independent craft cider producers are operating in Northern Ireland. Many of these have opened in recent years, as interest in local artisan drinks is on the rise.

What is craft cider?

Cider is an alcoholic drink made from fermented apples. Perry is a similar drink, made from fermented pears. To be defined as cider or perry for tax purposes, the drink must have 1.2-8.5% alcohol by volume (ABV). At a higher ABV, the drink is classed as a made-wine or spirit.

There are certain limitations on the ingredients that you can add to cider and perry.

The terms 'craft cider' and 'real cider' usually refer to cider that:

• is produced in small batches
• is made using traditional methods
• is made with fresh apple juice (as opposed to from-concentrate)
• is not pasteurised or artificially carbonated
• has no added colours, preservatives or flavourings (except natural flavourings such as fruit and spices)
• has no or minimal added sugar
• has no or less than 10% added water

Many craft ciders are made on small or family farms to diversify the business, using the producer's own apples.

'Keg' cider is a commonly mass-produced version of cider. It typically uses fruit concentrates and is carbonated artificially.

Licensing

Cideries, who have been granted a licence under Article 5(1)(m) of the Licensing (NI) Order 1996, may sell their own products directly from their production premises and in certain circumstances, from other licensed and unlicensed premises, on an off-sales basis. Once a licence for off-sales has been granted, a local producer may also apply for a suitability order and authorisation to allow sales for consumption on the premises in certain circumstances.

Starting a brewery, cidery or distillery can be a rewarding experience for someone who is passionate about creating craft beer, cider or spirits. It is a business that benefits from creative and innovative thinking.

It is important to carefully consider factors like marketing, licensing and finance, and plan thoroughly before you start.

Market research

Craft alcohol is a competitive market. To succeed, your product will need to stand out from competitors. Market research and customer-focused product development are vital.

Research products that are already available and consider how yours is different. This is your unique selling point. For example, are you offering innovative flavours or does your product relate to local history?

The following guides will help you position your product:

• researching new product and service ideas
• create your marketing strategy
• write a marketing plan
• understand your customers' needs
• market research and market reports

Business plan

One of the first things you should do for any business is to write a business plan. This is a written document that will outline your objectives, strategies, the market and your financial forecasts. A business plan can be crucial to securing funding. Your local council may be able to help you with developing a business plan.

Licensing

There are many ways to sell your products directly to the public; however, you will need a licence. Always follow the rules for selling alcohol and, where necessary, apply for a licence to sell alcohol.

Read more about selling craft beer, cider and spirits.

Costs and funding

There are significant set-up costs when starting a brewery, cidery or distillery. This includes your premises, equipment and ingredients. Work out how much money you need to start your business.

Some new businesses choose to work on contract with an existing facility to use their premises and equipment, or have the product made on their behalf. Other ways to cut costs include using second-hand equipment.

There are a number of ways to raise finance for new businesses. One option that may be effective for a new brewery, cidery or distillery is crowdfunding. This involves asking a large number of people to each invest a small amount of money.

You will also need to consider cashflow management when planning your business.

All businesses have a duty of care for business waste. It is your responsibility to deal with the waste your business produces without harming the environment. 

Types of brewery, distillery and cidery waste

Distilleries, cideries and breweries generate waste such as:

• spent grain, malt and potato (draff)
• trub (solids from liquid wort)
• malting by-products
• waste yeast 
• spent hops
• apple waste
• pot ale (liquid distillation residue)
• spent lees (liquid distillation residue)
• used kieselguhr (filter material)
• used carbon

Options for brewery, cidery and distillery waste

Much of this waste can be re-used for other purposes. Some waste options will require a licence or an exemption. You may need to adhere to certain requirements. Consider the following options for your business waste:

• Use as animal feed - feed spent grains, malt, yeast and pot ale to cattle, sheep, pigs and poultry.
• Landspreading - use pot ale, spent lees, spent hops and trub as a crop fertiliser. You can apply for an exemption so you don't need a licence to do this. 
• Composting - compost draff, spent grains, yeast, used kieselgur from beer filters, spent hops and the dust, small grains and culms from malting. You will need a waste management licence. 
• Burning for heat or power - you will need an exemption for appliances with a net thermal input of less than 0.4 Mw. 
• Discharge to sewer - you will need trade effluent consent from the sewer provider and authorisation from the Northern Ireland Environment Agency (NIEA).
• Discharge to water after treatment - you may need to put in your own adequate effluent treatment system before you will be approved by NIEA.
• Anaerobic digestion - you can use materials from distilling and brewing such as draff, spent grain, pot ale and spent lees in an anaerobic digestion plant to generate biogas and materials suitable for soil improvement. You will need a waste management licence or a pollution prevention and control permit depending on how much waste you have the capacity to process. 
• Having waste collected by a contractor - you can dispose of waste off-site, using a registered waste carrier that takes it to a licenced site. Most waste companies will be able to take organic materials to composting sites or anaerobic digestion plants. None of the waste products listed above need to be landfilled. 

Brewery water and effluent 

Breweries can use significant amounts of water and produce large quantities of effluent. Read our guide on brewery water efficiency for advice on reducing water use and disposing of effluent.

There are several legal considerations for running a brewery, cidery or distillery. This includes taxes, and rules around promoting alcohol products.

Premises and environment

If you are setting up your own premises, you first need to seek planning permission. If you plan on selling alcohol to the public, you will need to apply for a licence to sell alcohol.

Local producer's licence

A local producer's licence will allow you to sell your own products from your own premises for consumption off the premises. It will also allow you to sell your own products from other licensed and unlicensed premises in certain circumstances. You will need to place a notice on the premises detailing the conditions under which alcohol can be sold.

If you hold a local producer's licence, you may also apply for a suitability order and authorisation to permit consumption on the premises under certain circumstances. You will be required to place a notice on the premises detailing the conditions under which alcohol can be sold and consumed.

If you plan on providing samples of your alcohol products to guests on a tour of your production premises or at an event being held on unlicensed premises, there is a limit to the sample measures you can provide, which must not be exceeded. You can find further information on this in the Department for Communities' guide to the Licensing and Registration of Clubs (Amendment) Act (Northern Ireland) 2021 (PDF, 313K).

Water and effluent charges

Producing beer and spirits uses large amounts of water, and there are charges to pay. You should consider saving water to cutt costs and other brewery water efficiency measures.

You will need consent from Northern Ireland Water if you will be discharging trade effluent. You will be charged depending on how much effluent you discharge.

You also have a duty of care for business waste.

Health and safety

There are certain risks that come with manufacturing alcohol products - these include dust, manual handling, slips, falls and chemical irritants. You have a responsibility to protect yourself, your staff and the public from harm. See health and safety basics for business.

If you are producing drinks for sale and consumption, you must comply with food safety laws. You also need to register with Food Standards Agency as a food business.

Beer duty

If you produce beer for commercial reasons, you must pay beer duty. The duty applies to all types of beer over 1.2% alcohol by volume (ABV), including ale, porter and stout. To do this, you must register as a brewer with HM Revenue & Customs (HMRC).

Commercial beer becomes liable for duty as soon as it is made. HMRC provides information on how to calculate how much duty is owed at the end of the accounting period.

You can delay paying the duty immediately by applying for beer duty suspension. This can be used when beer is being held at registered premises, sent to an excise warehouse or sent for packaging.

The small breweries rate relief scheme offers reductions if you produce less than 60,000 hectolitres of beer per year.

Spirit duty

There are certain licences required to manufacture spirits:

• to produce spirits by distillation or other methods, you need a distiller's licence
• to redistill or mix spirits in a still, you require a rectifier's licence
• if you mix spirits with anything except water, without using a still, you need a compounder's licence

You will also need to get approval on your plant and process from HMRC.

You must pay spirits duty on all spirits or mixed spirit drinks over 1.2% ABV. To do so, you must complete a quarterly production return for each spirit you produce. Like beer, spirits can also be held in duty suspension.

Cider duty

Cider and perry with an ABV between 1.2 and 8.5% ABV are liable for cider duty. Drinks made with fermented apples or pears are considered made-wine or spirits for tax purposes if they have a higher ABV or if they have certain additives.

You must register as a cider maker if you make cider for sale or if you make more than 70 hectolitres of cider per year. As a registered cider maker, you must:

• keep certain records
• calculate and pay your cider duty
• comply with cider production laws

Advertising rules

There are strict rules you must follow when promoting and advertising alcohol products. Advertising for alcohol must not be directed at or appeal to people under 18 years old. This means that alcohol advertising must not:

• reflect youth culture
• feature individuals who appear under 25
• appear around programmes targeted at or appealing to audiences under 18

There are additional rules to protect consumers of all ages. Advertising should not link alcohol with:

• increased popularity
• sexual success
• confidence
• sporting achievements
• mental performance
• tough or daring behaviour
• therapeutic qualities
• overcoming problems

You must not encourage people to drink in an unsafe way, such as binge drinking.

Packaging and labelling

There are rules you must comply with when packaging and labelling alcoholic drinks for sale. As well as the standard food labelling rules, when a drink is stronger than 1.2% ABV:

• you must declare the alcoholic strength on the label
• you don't need to include an ingredients list

See alcohol labelling rules.

Alcohol products such as beer, cider and spirits, must comply with food labelling and packaging rules. 

The information on drinks packaging must be accurate and help consumers make an informed choice. Falsely describing food products is a criminal offence. Your labelling should include:

• name of the drink
• ingredients or processing aids causing allergies or intolerances
• warnings if the drink contains certain ingredients, eg liquorice and aspartame
• net quantity of the drink
• a date of minimum durability, eg a 'best before' date
• any special storage conditions 
• instructions for use if necessary 
• name or business name and address of the producer 
• country of origin or place of provenance (if required)
• the alcohol strength by volume for drinks with more than 1.2% alcohol by volume (ABV)

Normally pre-packaged food products must include an ingredients list. This is not required for drinks over 1.2% ABV. Alcoholic drinks over 1.2% ABV also do not require a nutrition declaration. However, you may choose to voluntarily include an energy declaration in kJ (kilojoules) and kcal (kilocalories), and on a per 100ml basis. You may additionally provide the energy information per portion. 

Alternatively, you can provide a full ("back of pack") nutrition declaration on a voluntary basis on alcoholic drinks. This must be expressed per 100ml. You may additionally provide this information per portion.

Health advice

The UK Chief Medical Officer provides guidelines to the public for reducing the risks of drinking alcohol. The Department of Health recommends that these guidelines are communicated to consumers on alcohol packaging.

Download information on communicating the low risk drinking guidelines to the public (PDF, 218KB). 

Marketing rules 

Your product packaging must not promote drinking alcohol irresponsibly or appeal to children. Find out more about advertising rules for alcohol products.  

Several organisations provide support, advice and assistance to craft beer, cider and spirit producers in Northern Ireland.

Invest Northern Ireland (Invest NI) has a dedicated food and drink team supporting businesses. They can help with exporting, intellectual property protection, product development and design. Their buynifood.com website offers guidance on local suppliers. Invest NI can also help with market research and reports through their Business Information Centre.

Northern Ireland Food and Drink Association (NIFDA) works to bring local food and drink industry stakeholders together.

Tourism NI offers food and drink tourism advice and support.

Food NI works to promote Northern Ireland's food and drink offering through events, guides and the NI Good Food website.

Campaign for Real Ale (CAMRA) - The Northern Ireland branch of CAMRA promotes and supports local breweries producing 'real ale'. According to CAMRA, real ale is defined as cask-conditioned beer made with traditional ingredients.

Craft beer, cider and spirit producers can get help to create a tourism offering by becoming an ÉCONOMUSÉE - a 'working museum' where visitors can learn about your craft and buy your products.

The British Beer and Pub Association is an industry body representing brewers and pubs in the UK.

For more information, read about food and drink support and funding or watch our case study below to see how Shortcross Gin got help to develop and export their craft gin.

The craft drinks market is highly competitive. You will be up against big international brands as well as local competitors. It is important that your craft beer, cider or spirit stands out.

Ensure that a well-researched unique selling point is part of your business plan and marketing strategy. See how to start a craft brewery, cidery or distillery.

Channels to market

There are several ways you can sell your craft beer, cider or spirit product:

• directly to consumers - eg at a tap room or in your own restaurant or brewpub.
• online - sell directly to consumers through a website
• through retailers - sell your product to off-licences and supermarkets, who will in turn sell to consumers
• through hospitality businesses - sell to restaurants, pubs and hotels, who will then sell to consumers
• through a wholesaler - who will sell to retailers and hospitality businesses, who will then sell to consumers

There are pros and cons to each sales channel. Selling directly will result in the highest profit margins. Selling through a supermarket chain could help you sell a high volume. Working with acclaimed local restaurants can enhance your reputation. It is important that your business has the necessary skills to negotiate the sales process and work with the businesses you supply to.

Many local craft alcohol producers see great success by exporting their products and entering overseas markets.

You must meet your legal requirements and have the necessary licence to sell your craft beer, cider or spirits from your own premises, and in certain circumstances, from other licensed and unlicensed premises on an off-sales basis. Read about the rules for selling alcohol.

Promoting your product

As a luxury product, a strong brand is vital to promoting craft beer, cider and spirits. There are many marketing tactics you could consider:

• promoting craft alcohol products through advertising
• using content marketing and social media to communicate your brand to your target audience
• running, sponsoring and taking part in farmers' markets, fairs and tastings to raise your profile
• getting people to notice your brand through public relations (PR) activities, such as winning awards and new product launches

See more on branding for your business.

Food tourism

Craft alcohol products are an important part of Northern Ireland's food and drink tourism offering. There are plenty of food tourism opportunities for producers of craft beer, cider and spirits. For example, working with local restaurants and hotels or offering tours of your facilities.