NAICS 312140 Quarterly Industry Report
Distilleries
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 312140Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 312140 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the distillery sector, drawing on data from the U.S. Census Bureau[5] and SBA lending records. Additional data is drawn from Bureau of Labor Statistics[8].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 312140 establishments, supporting buy-sell agreements, partnership dissolutions, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the distilleries industry.
Industry Definition & Overview
Distilleries (NAICS 312140) encompasses establishments primarily engaged in distilling potable liquors, distilling and blending liquors, or mixing liquors and other ingredients. Products include whiskey, bourbon, vodka, gin, rum, tequila, and other distilled spirits, but exclude brandy production which falls under NAICS 312130. According to the U.S. Census Bureau[5], approximately 1,000 active distillery establishments operate in the United States, with the craft spirits segment driving rapid growth in establishment counts over the past decade.
The craft distillery movement has paralleled the earlier craft beer revolution, with small producers emphasizing artisanal methods, local ingredients, and tasting room experiences to differentiate from major spirits brands. Many SBA Office of Advocacy[6] notes that craft distilleries represent the majority of establishment counts despite accounting for a small fraction of total spirits volume, with most qualifying as small businesses under SBA size standards. Aged spirits like whiskey and bourbon require multi-year barrel inventory investments that create unique working capital demands and valuation complexities.
Federal regulation through the Alcohol and Tobacco Tax and Trade Bureau (TTB)[7] governs distillery permits, formula approvals, excise tax compliance, and labeling standards. State alcohol control boards impose additional requirements covering production licensing, tasting room operations, and distribution arrangements. The excise tax burden on distilled spirits significantly exceeds taxes on beer and wine, making federal tax policy a material factor in distillery economics and competitive positioning.
What's Included in This Industry
- Valuation multiples benchmarked to distilleries and craft spirits producers
- Revenue and EBITDA trends for craft and large-scale distillery operations
- SBA lending data and financing terms for NAICS 312140
- Comparable transaction data from recent distillery M&A activity
- Industry risk factors including barrel aging inventory and excise tax exposure
- Workforce composition and labor cost benchmarks for distilling operations
- Regional market analysis across major distilling regions
- Revenue channel analysis covering wholesale, tasting room, and direct sales
- Growth projections tied to craft spirits and premium product trends
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Beverage and Tobacco Product Manufacturing | 312 |
| Industry Group | Beverage Manufacturing | 3121 |
| NAICS Industry | Distilleries | 31214 |
| National Industry | Distilleries | 312140 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 312130 | Wineries | Wineries sharing three-tier distribution requirements, similar TTB licensing frameworks, and competing for premium alcoholic beverage market share at retail |
| 312120 | Breweries | Breweries using comparable fermentation processes, sharing TTB regulatory structures, and competing for tasting room tourism spending in overlapping markets |
| 424820 | Wine and Distilled Alcoholic Beverage Merchant Wholesalers | Wine and distilled alcoholic beverage wholesalers serving as the primary distribution channel for distilleries under state alcohol distribution regulations |
| 311930 | Flavoring Syrup and Concentrate Manufacturing | Flavoring syrup and concentrate producers supplying botanical extracts, flavoring agents, and infusion ingredients used in spirits production |
| 312111 | Soft Drink Manufacturing | Soft drink manufacturers producing mixer products commonly paired with distilled spirits and sharing overlapping glass bottle packaging suppliers |
| 424590 | Other Farm Product Raw Material Merchant Wholesalers | Other farm product raw material wholesalers supplying grain, corn, and botanical ingredients used as base materials in distilled spirits production |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 7.7% | 98 |
| 2 | New York | 7.3% | 93 |
| 3 | Texas | 7.0% | 90 |
| 4 | Pennsylvania | 5.9% | 75 |
| 5 | Colorado | 5.6% | 71 |
| 6 | Kentucky | 5.1% | 65 |
| 7 | Washington | 4.5% | 58 |
| 8 | Tennessee | 4.0% | 51 |
| 9 | Florida | 3.3% | 42 |
| 10 | Oregon | 3.2% | 41 |
% Of Establishments
0%
8%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
392
Total SBA Loans
$226.4M
Total Loan Volume
$578K
Average Loan Size
11 yrs
Average Loan Term
10.14%
Average Interest Rate
4,792
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Distilleries seeking SBA financing typically qualify under the SBA size standards[9] for NAICS 312140, which set the threshold at 1,100 employees for small business classification. The SBA 7(a) loan program[10] provides up to $5 million for business acquisitions, still equipment purchases, and tasting room buildouts. Several CDC/504 loan program[11] offers long-term fixed-rate financing for production facility construction and barrel warehousing expansion. Lenders evaluate barrel inventory valuations, TTB licensing transferability, and distributor contract terms when underwriting distillery transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Milestone Bank | 8 | $40.0M | $5.0M |
| 2 | Southwestern National Bank | 8 | $34.5M | $4.3M |
| 3 | Live Oak Banking Company | 16 | $30.4M | $1.9M |
| 4 | Newtek Bank, National Association | 24 | $17.9M | $744K |
| 5 | Celtic Bank Corporation | 8 | $15.2M | $1.9M |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a distillery?
Distillery valuations typically range from 5x to 10x EBITDA for established operations with aged inventory and recognized brands, while smaller craft distilleries may trade at 3x to 5x seller's discretionary earnings. Barrel inventory valuations often constitute a distinct asset category evaluated separately from operating business multiples. Per U.S. Census Bureau[5] data, the craft spirits segment shows wider valuation ranges reflecting differences in brand maturity and inventory depth.
What SBA loan options are available for acquiring a distillery?
The SBA 7(a) loan program[10] provides up to $5 million for distillery acquisitions and equipment purchases, while the CDC/504 program[11] finances production facilities and barrel warehousing. Lenders require TTB license transferability confirmation, barrel inventory appraisals, and distributor agreement documentation for distillery loan approvals.
How does barrel inventory affect distillery valuation?
Aged spirits inventory represents a unique asset class that appreciates over time as the product matures. Barrel inventory valuations consider spirit type, age, warehouse conditions, and projected market value at maturity. For whiskey and bourbon distilleries, aging inventory may represent 30-60% of total business value, requiring specialized appraisers familiar with spirits aging economics.
What regulatory requirements affect NAICS 312140 businesses?
Distilleries must obtain federal permits from the Alcohol and Tobacco Tax and Trade Bureau (TTB)[7] and comply with excise tax reporting, formula registration, and label approval requirements. State alcohol control boards impose additional production, distribution, and tasting room licenses. Per FDA[12] oversight, allergen disclosure and ingredient transparency requirements are increasingly applied to distilled spirits products.
What equipment is needed for a distillery?
Core distilling equipment includes fermentation tanks, copper or stainless steel stills, condensers, spirit safes, storage tanks, barrel filling stations, and bottling lines. A craft distillery producing 5,000-20,000 proof gallons annually typically requires $500,000 to $2 million in equipment investment. Barrel procurement adds ongoing capital requirements, with new American oak barrels costing $200-$300 each and used bourbon barrels available at lower price points.
How do excise taxes affect distillery economics?
Federal excise taxes on distilled spirits are $13.50 per proof gallon, with a reduced rate of $2.70 per proof gallon on the first 100,000 proof gallons for eligible small distillers under the Craft Beverage Modernization Act. Per TTB[7] data, excise tax savings for qualifying craft distillers can exceed $1 million annually, making tax classification a material factor in distillery profitability and valuation.
What trends are driving growth in the distillery industry?
Growth drivers include premiumization toward aged and single-barrel expressions, ready-to-drink cocktail products, American whiskey export demand, and craft distillery tourism. The TTB[7] has reported continued growth in new distillery permit applications, particularly in states with favorable direct-to-consumer shipping laws and lower regulatory barriers for small producers.
What workforce challenges do distilleries face?
Key challenges include recruiting experienced distillers and blenders, staffing tasting rooms in competitive hospitality labor markets, and managing seasonal production demands. Per Bureau of Labor Statistics[13] data, beverage manufacturing wages have risen alongside broader manufacturing increases, with craft distillers competing against larger producers and hospitality businesses for talent.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]Alcohol and Tobacco Tax and Trade Bureau (TTB) ttb.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA size standards sba.gov
- [10]SBA 7(a) loan program sba.gov
- [11]CDC/504 loan program sba.gov
- [12]FDA fda.gov
- [13]Bureau of Labor Statistics bls.gov
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