Microdistillery

While the term is most commonly used in the United States, micro-distilleries have been established in Europe for many years, either as small cognac distilleries supplying the larger cognac houses, or as distilleries of single malt whisky originally produced for the blended Scotch whisky market, but whose products are now sold as niche single malt brands.

Most microdistilleries in South Africa ceased to exist when legislation was introduced in 1964 that made it almost impossible for small, private distilleries to operate viably.

[11] In the 1990s the liquor industry established the notion of super premium spirits offering a higher-quality (and usually more elaborately packaged) product at a higher price.

The higher prices created an opportunity for small distilleries to profitably produce niche brands of exotic spirits.

The growth of craft distilleries and breweries was partly driven by consumer interest in greater variety, perceived quality, and support for locally owned businesses.

[17] This marked a sharp downturn in the previously steady growth of microdistilleries in the United States, in a phenomenon compared to the impact of Prohibition.

A number of states, such as California, Illinois, Indiana, Iowa, Kansas, Michigan, Utah, Washington, West Virginia, and Wisconsin have passed legislation reducing the stringent regulations for small distilleries that were a holdover from prohibition.

The American Craft Spirits Association defines a "craft distillery" as a distillery that produces fewer than 750,000 gallons per year; is independently owned and operated (with a greater than 75% equity stake, plus operational control), and is transparent regarding its ingredients, its distilling and bottling location; its distilling and bottling process, and its aging process.