Understanding Distilled Spirits Plants: What You Need to Know

Barrels. Unsplash licensed. Photo Credit: Reiseuhu

Have you ever wondered how whiskey or vodka is made? In the United States, it’s a process that can only happen in a special place called a Distilled Spirits Plant, or DSP for short. Let’s dive into what a DSP is all about!

What is DSP?

A Distilled Spirits Plant is a licensed establishment where the magic of distilling happens. It’s the only place where making liquor, like whiskey or vodka, is allowed under federal law. But it’s not just about making drinks – a DSP also handles storing and processing distilled spirits safely and legally.

Why are DSPs Important?

DSPs play a crucial role in ensuring that distilled spirits are made and handled the right way. Federal regulations are in place to make sure everything is done safely and legally. This helps prevent any unauthorized or improper activities from happening within the DSP.

Can Anyone Have a DSP?

Nope, not just anyone can have a DSP. Individuals aren’t allowed to make their own distilled spirits at home for personal use. Instead, if someone wants to produce distilled spirits, they need to operate a licensed facility – a DSP – registered with the Alcohol and Tobacco Tax and Trade Bureau (TTB).

Where Can’t You Put a DSP?

When setting up a DSP, there are specific rules about where it can’t be located. You can’t have a DSP in places like private homes, sheds, or even on boats! It also can’t be where beer or wine is made or sold, or where any unrelated businesses operate.

Parts of a DSP

A DSP can have two parts: bonded premises and general premises. Bonded premises are where the actual distilling and storing of spirits happen, while general premises are for things like offices and ingredient storage.

Other Businesses at a DSP

Sometimes, businesses other than making and storing spirits can operate at a DSP. But there are rules to follow, like making sure it doesn’t interfere with laws or revenue. If someone wants to run another business at a DSP, they need approval from the TTB.

Retail Stores at DSPs

Ever seen a distillery with a store where you can buy drinks? That’s not against the rules – as long as the retail area is completely separate from where the spirits are made. There have to be walls, doors, and exits that keep the two areas apart.

So, the next time you enjoy a sip of whiskey or a cocktail, remember the important role of Distilled Spirits Plants in making it all possible!

Do you have any questions about distilled spirit plants? Contact us to schedule a consultation with a beverage attorney.

Because we’re attorneys: Disclaimer. Originally posted 04/07/2024.