Should I contract distillation with a co-packer or build in-house production capacity?

The choice between co-packing and in-house distillation depends on your priorities around cost, brand story, and market focus.

**Cost and efficiency**: Co-packing is typically significantly cheaper than in-house production. Members report paying around **£5 per bottle** for contracted distillation, making it the more cost-effective route if your primary goal is scaling sales and marketing.

**Origin and storytelling**: In-house or local production adds meaningful value if your brand narrative depends on provenance. Members noted that **origin stories are a genuine sales driver**—particularly if you can claim local/regional production. This justifies the higher in-house costs and can differentiate you in a crowded market.

**Testing and iteration**: In-house production (or local co-packing) can be a low-commitment way to test new products and validate demand before committing to larger production runs or national distribution.

**Market positioning**: Members cautioned against letting legislation changes alone drive the decision. The choice should reflect your actual market strategy—e.g., whether you're targeting local markets with strong origin narratives or pursuing national distribution where cost efficiency matters more.

**Caveats**: Recent market shifts (e.g., gin market saturation, consumer preference for rum) suggest the category itself matters as much as the production method. Focus on market demand and your brand story first; the production model should support that, not drive it.