How to Start a Spirits Brand in South Africa
Updated: 3 hours ago
Launching a spirits brand in South Africa is less about distilling than most people expect. A large share of South African gin, vodka and whisky brands never own a still. They register the right licence, source the liquid, and put their name on the bottle.
What follows is the path as the regulations actually set it out, and where the liquid usually comes from.
Decide what you are: manufacturer or distributor
This is the first decision and it sets everything else. A manufacturer produces liquor. A distributor sells it on to licensed traders, not to the public. A brand owner who buys spirit in bulk, has it bottled and sells to retailers is usually registering as a distributor, not a manufacturer.
The two sit under different authorities:
The National Liquor Authority (NLA) handles macro manufacturers and distributors, nationally
Provincial liquor authorities handle micro-manufacturing and retail licences
The volume thresholds that decide which one you need
You are a macro manufacturer, and therefore an NLA matter, once annual production passes the prescribed volume. For spirits that line sits at two million litres a year. Below it, manufacturing is a provincial micro-manufacturing licence.
Distribution works differently. There is no prescribed volume threshold for distributors, so a distributor registers with the NLA regardless of size. For most new brands, that is the relevant route.
What the NLA application requires
Registration is applied for on Form NLA 1, through the NLA online system at thenla.thedti.gov.za or at the dtic walk-in centre. Alongside the form you will need:
A zoning certificate or municipal consent letter for the premises
Certified copy of ID or passport
SAPS police clearance, issued within the last three months
CIPC company registration documents
Tax clearance certificate from SARS
B-BBEE verification certificate
Shareholder details and disclosure of any other financial interests held in the liquor industry
Projected annual turnover
A business impact statement covering competition, job creation and industry efficiency
Proposals on preventing alcohol abuse
The last two surprise most applicants. The NLA is not only checking that the business is legitimate; it is assessing what the business will contribute and how it will handle the social side of selling alcohol. Thin answers there slow applications down.
What it costs
NLA fees scale with projected annual turnover rather than being fixed. The application fee runs from R500 to R25,000, and registration itself from R2,000 to R15,000. A small new brand sits at the bottom of both ranges. The application fee is non-refundable unless the NLA turns out to have no jurisdiction over the application.
Budget separately for the liquid, bottling, labels and, if importing, duty and excise.
Where the liquid comes from
Three routes are common, and they differ mainly in how distinctive the end product can be.
Buy local neutral alcohol and flavour or compound it. Fastest and cheapest, but the base is the same one competitors use
Contract-distil with a South African craft distillery. More character, limited capacity, higher unit cost
Import bulk spirit. Opens up liquid that is not produced locally, at volume, with import paperwork to handle
The third route matters most for whisky. Matured malt spirit is not produced in South Africa at commercial volume, so a South African whisky brand either imports it or does without. Indian distilleries have become a common source: the warmer climate matures spirit faster, so a three-year Indian malt carries depth that a cooler climate takes considerably longer to build.
If you import, there is a second set of approvals
An NLA registration lets you distribute. It does not let you import. Importing liquor brings in two further authorities: SARS, for the customs and excise licence and the DA185 application, and the Department of Agriculture, for the import certificate issued by the Division Liquor Products. Liquor is not released from the port without that certificate, and alcohol is not released under bond, so duty and VAT are paid before the goods move.
Labelling and product composition sit under the Liquor Products Act 60 of 1989, which governs what a spirit may be called and what the label must carry.
The order that works
Register the company with CIPC and get tax clearance in place
Decide manufacturer or distributor, and apply to the NLA on Form NLA 1
If importing, start the SARS and import certificate registrations in parallel, not after
Source and sample the liquid while the licensing runs
Finalise the recipe, bottle and label
Bottle, clear and launch
The usual mistake is running these in sequence. Licensing and import registration both take time and neither depends on the other, so starting them together removes months from the launch.
How long it takes, and when you can start trading
Applications can be submitted at any time through the NLA online system. The dtic does not publish a guaranteed turnaround, and in practice the timeline depends far more on how complete the submission is than on how busy the queue is. Incomplete zoning documents, a police clearance older than three months, or thin answers on the social responsibility questions are the usual causes of delay.
One rule matters more than the timeline itself: you may not trade on an acknowledgement letter or on form NLA 6. Trading begins only once the registration fee is paid and the NLA 9 registration certificate is in hand. Plan the first shipment and the first invoice around that date, not around the date you applied.
Keeping the registration current
Registration is not permanent. Renewal is applied for on form NLA 28, with supporting documents and the annual renewal fee, and the dtic asks for it a month before expiry. Miss that date and a two month grace period applies with penalties; after that the registration is cancelled and you start again.
Two other forms are worth knowing early. Transferring a registration uses NLA 1 together with NLA 14, and relocating uses NLA 14, each carrying a minimum fee of R1,500. Registrants must also keep invoices for every entity they sell liquor to.
Frequently asked questions
Does a brand owner need to own a distillery?
No. A brand owner who buys spirit in bulk, has it bottled under contract and sells to licensed traders registers as a distributor. Manufacturing registration is only needed if you produce the liquor yourself.
Can one business hold both manufacturing and distribution registration?
Yes. A dual registration is allowed, provided it is stated on the application.
What are the macro manufacturer volume thresholds?
Spirits two million litres a year, wine four million litres, beer one hundred million litres and sorghum beer fifty million litres. Produce below the relevant line and you are a micro manufacturer, which is a provincial licence rather than an NLA registration.
Is there a volume threshold for distributors?
No. No distribution thresholds are prescribed, so a distributor registers with the NLA regardless of size.
What does it cost to apply?
An initial application fee of R500 is payable on submission. Registration itself starts at a minimum of R2,000 and scales with volume and projected turnover. Transfers and relocations carry a minimum fee of R1,500 each. The initial fee is not refunded if the application is refused, unless the NLA turns out to have no jurisdiction over it.
Do I need premises before I apply?
Yes, in effect. The application requires a zoning document tied to a specific address: an industrial business zoning certificate, or a consent letter from the municipality or the traditional authority. That means the premises question comes before the application, not after it.
Can I start selling while the application is being processed?
No. Trading without registration is an offence, and neither an acknowledgement letter nor form NLA 6 permits trading.
Does NLA registration let me import?
No. Importing brings in two further authorities: SARS for the customs and excise licence, and the Department of Agriculture for the import certificate issued by the Division Liquor Products.
How are the fees paid?
By cash, bank guaranteed funds or electronic transfer to the dtic's Standard Bank account, referenced with the application number and the trading name.
Who do I contact at the NLA?
nationalliquorauthority@thedtic.gov.za, or the dtic call centre on 0861 843 384.
Related reading
Sourcing the spirit
VKM Liquor supplies matured malt spirit, wheat vodka, aged rum and custom gin in bulk from our distillery in Himachal Pradesh, India, with the export document set South African customs requires provided on every consignment.
Information correct as at the date of publication. Licensing requirements, fees and import procedures change, and applicants should confirm current requirements with the National Liquor Authority, SARS and the Department of Agriculture.
Comments