Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
Which insurance providers currently underwrite distilleries, and what are members experiencing with renewal challenges?
Distillery insurance has become increasingly difficult to secure, with many mainstream insurers withdrawing from the market. Members report that their existing insurers are refusing to renew terms, and brokers are warning of high rejection rates from their panels. Providers currently willing to underwrite distilleries include: - **NFU** — actively underwriting distilleries; members report switching to them despite higher premiums; praised for reliable claims payment and strong service - **Aviva** — still accepting distillery accounts - **Capsule Brokers** — recommended as a smaller, B Corp broker specialising in distillery placement - **The Clear Group** — brokerage confirmed to handle distillery insurance - **Gallaghers** — established broker (members' existing point of contact), though they are experiencing difficulty placing new renewals as their panel has largely withdrawn from distillery underwriting Current market context: Members note that perceived risk in the distillery sector has increased, with expectations of significant premium rises. One member speculated this may be linked to elevated claims activity in 2024. The market is tightening, and brokers are warning clients that even preliminary underwriting referrals may result in refusal. Members recommend contacting specialist brokers early rather than waiting until renewal deadlines.
What insurance providers specialize in coverage for micro breweries and distilleries?
Members recommend a small set of specialist providers for brewery and distillery insurance. - **NFU Mutual** — frequently recommended by the community as a go-to option for brewery and distillery coverage. - **Superscript** — used by at least one member; noted as suitable for operations without a physical site (e.g. online-only models). Members suggest checking both providers, as the right fit depends on your specific setup (e.g. whether you have a physical production facility). Several members indicated they had discussed additional options in earlier group conversations, so reviewing the full chat history may reveal other candidates.
Should the cost of transporting distilled product from the production facility to duty-suspended storage (like an LCB warehouse) be included in COGS?
Yes, members consistently include delivery costs from distillery to duty-suspended storage as part of COGS. This reflects the principle that all costs to get the product into a distribution-ready state — from production through to the point it's stored and ready to ship to customers — should be captured in COGS. Once the product leaves the warehouse/storage location and moves to customers, that freight is treated separately as a distribution cost. The rationale is that the journey to duty-suspended storage is part of the creation and preparation process, not the sales/distribution phase.
How do duty payments work when operating a brewery and distillery on the same site, particularly when producing duty-suspended whisky spirit?
When operating a brewery and distillery together, the key is maintaining clear separation and documentation. Members operating multi-site or multi-purpose facilities report that HMRC compliance requires: clear designation of areas on your site plans separating brewery from distillery operations; meticulous records distinguishing duty-suspended stock from duty-paid stock; and separate accounting for each operation. Members' practical experience: - **Designated warehouse areas** — Ensure your site plans clearly identify separate zones for beer production (duty-paid) and spirit production (duty-suspended). This prevents confusion with HMRC about which product is subject to which duty regime. - **Duty-suspended spirit sales** — Members are successfully selling whisky spirit duty-suspended to third-party partners who store it in warehouses under their WOWGR (Warehouse and Other Goods Regulations), without this affecting the duty calculations on concurrent beer production. The key is that duty suspension and duty-paid operations are treated independently if areas and records are properly designated. - **Meticulous stock records** — Maintain detailed records of what is held duty-suspended versus duty-paid. This documentation is critical for HMRC audits and compliance. **Caveat:** HMRC's guidance on this scenario is unclear and sometimes contradictory. One member noted that HMRC themselves "don't seem able to give a straight answer" on the implications. Get written confirmation from your local HMRC office on your specific site layout and product mix before scaling production.
What planning use class (B1 vs B2) should a small craft distillery with rectification and compounding operations be classified under?
Small craft distilleries that rectify and compound spirits can typically operate under **B1 (light industrial)** classification rather than B2 (general industrial), provided noise and emissions remain minimal. - **B1 classification is the norm** for small distilleries doing rectification and compounding, as long as operations don't generate excessive noise, dirt, or smoke - **Local authority interpretation varies** — councils don't always understand distillery operations well, so classification can be somewhat flexible depending on your specific local authority - The key factor is **whether your operations create significant nuisance** (noise, dirt, smoke); if not, B1 is usually the appropriate category **Caveat:** Given variable local authority understanding of distillery operations, it's worth engaging early with your specific council planning department to confirm their interpretation of your operation's classification before establishing premises.