Co-Package & Permit Q

[Rambling1]

Hi,

I am always interested in how businesses and permitting works.

My question is, if someone was going to work with a co-packager to produce their product for them what federal permit would that business need to accept the finished product from the co-packager and then sell it? I know the co-packager needs to be licensed as a brewery. I do some legal work for breweries and I can see this being a question I get asked sometime in the future, but I can't seem to find any guidance online. I'm also wondering about how a State would regulate it, but I know it'll be different in each state.

Thanks.

[eulielee]

Hi,

I am always interested in how businesses and permitting works.

My question is, if someone was going to work with a co-packager to produce their product for them what federal permit would that business need to accept the finished product from the co-packager and then sell it? I know the co-packager needs to be licensed as a brewery. I do some legal work for breweries and I can see this being a question I get asked sometime in the future, but I can't seem to find any guidance online. I'm also wondering about how a State would regulate it, but I know it'll be different in each state.

Thanks.

I'm not sure if I follow, but this is how SC works.

Federal will allow what you call a dual proprietorship/co-op brewery, meaning two,3,4 brewers could potentially share the same address. As long as each one is insured, and has all the correct paperwork filled its cool (they just want their tax money).
SC on the other hand, does not allow this. They want to see different addresses for each brewery.

Our work around (I'm the second brewery) is that technically I'm a contract brewer, but I also work for the other brewery - as a brewer. So I brew our beer and contract thru brewery A, and they take their cut for expenses and I take mine for profits. The only reason this model works is I actually have a lot of fermentor space here, so I bring a lot to the table (i own 3X five bbl fvs and they use 2 while i use one).

Hope this helps