Guidebook - FINAL VERSION

Hard Cider
GUIDEBOOK
A producers guide
to developing a
hard cider business in
Pennsylvania.

This project was supported by a
USDA Specialty Crop Block grant and
the PA Apple Marketing Program

TABLE of CONTENTS
PLANNING 1-2
LOCAL REGULATIONS 3
REGISTER YOUR BUSINESS WITH PA 4-6
APPLYING WITH THE FEDS 7-9
APPLYING WITH THE STATE 10-16
PA DEPARTMENT OF AGRICULTURE 17
LABELING 18-23
TAXES 24

PLANNING
A bit of careful planning can save you a
headache in the end. Before embarking into
a sea of forms, take time to carefully consider
the following as you plan your burgeoning
hard cider business.
Business Planning
Developing a business plan is the primary step for any new
endeavor. Please consider this guide to provide specific hard
cider business planning steps to be taken in addition to
writing your business plan.
Resources on business planning to help you along the way:
http://bit.ly/1GvOrCr
https://www.agplan.umn.edu/
Marketing
What is the target market for your product? Have you considered
what age group, income level and geographic boundaries make up
your most likely customer base?
Looking to do a bit of market research on your area?
Branding
Nursery + Cider
Business
Business
Will your envisioned hard
cider label design integrate
with your existing business
brand, if applicable? How will
your brand compare to others
in the marketplace?
1

Building Design
Does your planned facility meet all
local building code requirements?
Will your design fulfill requirements
that your PA Department of
Agriculture food sanitarian will look
for when obtaining your Wholesale
Food Processing Manufacturing and
Distribution license?
Location
Is your proposed location ideal for your
future business growth?
Have you considered how your site
location’s region will develop and change
during the lifetime of your business?
Does your desired site location allow for
diversification of your business such as
expansion to a tasting room, agritourism
educational experience or large retail or
entertainment space?
Is your desired site location situated close
to distribution outlets that are scaled
appropriately with your intended target
market?
2

LOCAL REGULATIONS
. . . a c r u c i a l f i r s t s t e p
Zoning regulations in Pennsylvania are governed by municipality,
each with their own unique rules and regulations regarding the
manufacture and commercial sale of products within its
boundaries.
It is recommended that you contact your local municipality as
your first step in embarking on your hard cider business to be sure
Contact Your
Local Municipality for:
Required building permits
Manufacturing zoning
requirements for future
production of your hard
cider
Commercial zoning
requirements for future
sales of your hard cider
3

REGISTER YOUR BIZ
This section covers steps you will need
to take with the Commonwealth of
Pennsylvania to register your business.
After this step you can apply to produce
hard cider with federal and state
agencies.
Steps
1 Selecting a Business
Name
2 Registering Your
Business Name
3 Business Structure
4 Register Your Business
Overview Articles on
each step in this process
can be found here:
http://1.usa.gov/1L0c8qc
4

START HERE
Develop Your Business Name
https://www.sba.gov/content/how-name-business
Is Your Business Name Available in PA?
https://www.corporations.state.pa.us/corp/soskb/csearch.asp
Before You Register Your Biz
Consider This
Fictitious Name
Do you need one?
The Business Structure Chart on the following
page will help you determine this!
Still unsure if you need a fictitious name?
http://1.usa.gov/1KuCXmT
If the answer is yes, you’ll need this form:
http://bit.ly/208PNAl
Determine Your Business Structure
http://bit.ly/1S81ORc
LAST STEP
Register Your Business with PA
http://1.usa.gov/1O5Pvq9
http://bit.ly/1LAoS8Q
5

Still Confused About What Forms You Need?
When considering your business structure it is
recommended to speak with insurance, accounting
and legal professionals to be sure you understand all
tax and legal ramifications of your desired structure.
1
Entrepreneur’s Guide: Starting and Growing a Business in Pennsylvania. Pennsylvania Department of Community and Economic Development. February
2015. http://www.pabizonline.com/Documents/EntGuide.pdf
Questions related to business structure, fictitious name registration, etc. can be
directed to the PA Department of State Customer Service at: 717-787-1057
6

APPLYING WITH THE FEDS
Production of hard cider requires that
you apply and be approved by the
Federal Alcohol and Tobacco Tax and
Trade Bureau before you begin the
production of alcohol and engage in
business.
Steps
1 Gather Your
Documents
2 Apply Online
The TTB Permit application is
accessible via online module.
3 Save Your
Tracking Number
This section will help you prepare for
and complete the online application.
Important!
Federal regulating agencies consider
hard cider a wine. Therefore for
applications with the TTB you must file as
a winery regardless of if you will apply to
produce under a brewery license or a
limited winery license with the
Commonwealth of Pennsylvania.
7

Gather Your Required Documents
The TTB Permit Application will require a specific list of
documents based on your business structure and desired
business type. Below are the baseline required documents.
However, this list may change based on your individual
business set-up. Details on the full list can be found in the
tutorial linked on the next page.
Diagram of your production facility
Bond Form
Your bonding documentation will be provided by your insurer however if you’re
interested in how it is calculated here’s a brief explanation of how a winery may
go about finding this magic number:
Bonding “is essentially taking out an insurance policy which will cover
[the winery’s] excise tax liability due to the feds. A winery has to calculate
out what their total tax liability will be in order to know what level of
bond coverage they need.
How do they calculate this?
They are basically taking a look at the total volume in gallons of wine that
they may potentially have stored on their site during any given month of
the year. This total volume must also be broken out by tax class, which is
determined by the wine’s alcohol content. They then multiply the gallons
of wine in each tax class by the excise tax rates and sum the totals
together to get what their potential tax liability would be. That total liability
dollar figure is then what determines the amount of bond coverage
the TTB would require them to maintain.”
http://winecompliancealliance.com/whats-bond-got-to-do-with-yourwinery
Lease agreement or documentation of property ownership
Documents of organization for your business structure (i.e. LLC articles of
organization or Incorporation documents)
Documents proving your source of funding
8

Apply for Your Permit Online
Now all required documents can be submitted online!
Permit application instructions can be found
here:
http://www.ttb.gov/applications/
index.shtml#Manufacturers
http://www.ttb.gov/industry-startup/
industry-startup.shtml
Ready to file your online permit
application?
http://www.ttb.gov/ponl/
permits-online.shtml
Need a quick and easy tutorial? Check out
this step by step guide! You can even keep
this window open as you work through the
online application.
Remember if you want to make hard cider,
you are a winery for this application!
http://www.ttb.gov/ponl/refguide/00010.html
Helpful Hint!
Do we need these extra forms included? A: Only if necessary for your business
http://www.ttb.gov/wine/forms.shtml
Save Your Tracking Number
Once your TTB permit application is complete it will generate an OOI Tracking Number
(beginning with OOI). The application is then sent to a specialist for further review
before approval.
If your application is incomplete you will receive an email indicating its status.
You must sign into Permits Online within 15 days to determine the issue and
amend your application otherwise your application status will change to
“Abandoned”.
Important!
In the permit application process, the system will
generate you an OOI Tracking Number
(formatted like this: OOI-2012-123456 ). Keep
this number handy to enter in next step, the
commodity application which can be completed
immediately after the permit application is
submitted! Your OOI Tracking number will be
formatted like this: OOI-2012-123456
9
You will receive an email when your
application has been accepted and
approved.

APPLYING WITH THE STATE
Decision Making Time!
In this section we will explore the
differences between a Brewery License
and a Limited Winery License with the
PA Liquor Control Board.
The license type you select will dictate
numerous aspects of your business
including how and when you may sell
your hard cider, the alcohol by volume
limitations of your cider and your
available methods of distribution.
Please be sure to fully investigate the
regulations associated with each type
of license.
Steps
Considerations
1 Considerations
ABV Limitations
State Tax Rate
Distribution
Tastings
Sales Hours
2 Applications
Brewery License
Limited Winery
License
In some cases, cideries have held both
licenses so their business can operate
in a way that best fits their individual
business plan.
10

ABV Limitations
Brewery License
Limited Winery License
0.5% ABV to 5.5% ABV 24% ABV or less
State Tax Rate
Brewery License
PA State Tax Rate = $0.08/gallon excise tax rate 8
Limited Winery License
PA State- $0.15/gallon ‘producer charge’
Please see additional information about Federal Tax rates at the end of this guide
11

Distribution
12

Tastings—Who can offer tastings and at what amount?
Brewery License
Tastings can be conducted by…
Licensed brokers
Limited Winery License
Tastings can be...
Conducted on a licensed or unlicensed premises
Distributors
Allowed at no more than 1 ounce
Importing Distributors
At the Brewery or by your employees
Tasting may be sold or given away for free
All allowable on a licensed or unlicensed premises.
Tastings must not exceed 1 standard size portion
(12oz) to each participant. Must be offered with no
purchase required.
13

Sales Hours—When can I sell my cider?
Brewery License 7 Brewpub license 7 Limited Winery License 6
10am and midnight Monday
through
7am - 2am Monday through
Saturday
7am - 2am Monday through
Saturday
Sunday (with your Sunday Sales
Permit)
Only sales of product brewed
under your brewery license and
owned by you are permitted
Must have seating for at least 10
patrons
Must offer food (at minimum,
can be chips, pretzels or
prepared by a third party)
Sunday Sales
11:00am - 2am (9:00am if food is
sold at the location)
Sales of your hard cider produced
under your brewery license and
owned by you are
allowed
Sales of wine and hard cider
producer by any holder of a PA
limited winery license are
also allowed
Sunday Sales
11:00am - 2am (9:00am if food is
sold at the location)
Need more information?
6 http://www.lcb.state.pa.us/
cons/groups/licensing/
documents/form/002130.pdf
No happy hour restrictions
Happy Hour Restrictions apply
Not subject to Wet/Dry
restrictions for your local
municipality
Cannot obtain an off premise
catering permit
Wet/Dry restrictions for your
municipality apply
Can obtain an off premise
catering permit
Must obtain an Amusement
Permit to have music
14

Ready to Apply—State License
Ok now that you’ve seen the main differences, choose
one or both licenses and walk through the application
process outlined below.
Brewery License
Apply with the PA Liquor Control Board (PLCB) to obtain
a Brewer, Brewery or Brewpub license.
At the time of p you must file for your Brewer license via postal mail with the
forms below. Online application for new applicants are in development under
the PLCB.
Required application forms:
Apply for a License for Manufacture, Storage or Transportation
Application for License
Fill out your Tax Certification Statement
Tax Certification Statement
Request a Criminal Records Check
Request for Criminal Record Check
Submit Social Security Information
Social Security Information
Optional Sunday Sales Permit Application
Application for Sunday Sales Permit (Wholesale Licenses)
Submit blueprints of the plant, property and apparatus. 9
15

Limited Winery License
Apply with the PA Liquor Control Board (PLCB) to obtain
a Limited Winery License.
At the time of publication of this document you must file for your new Limited
Winery License via postal mail with the forms below. Online applications for
new applicants are in development with the PLCB. You may use the PLCB’s
online portal to renew your application each year at www.lcb.state.ps.us.
Required application forms:
Apply for a Limited Winery License
Application for License
Request a Criminal Records Check
Request for Criminal Record Check
Submit Social Security Information
Social Security Information
Recent individual photographs of each applicant, partner, member,
manager and of each of the principal officers. 1.5” x 1.5” in size,
identified with the individual’s name and applicant’s name and address
of the premise on the reverse. Photographs must have a matte finish. 9
Recent premises photographs, 4” x 6” in size, of the exterior of the
premises showing the main entrance and the main interior serving/sales
area with the applicant’s name and address of the premise on the
reverse. Photographs must have a matte finish. 9
16

PA DEPT of AGRICULTURE
You’ll need these approvals to produce
and sell your food product to the public
under State regulations.
Apply to Manufacture your Hard Cider
Steps
1 Apply to Manufacture
2 Apply for Retail Food
Facilities License
Application for Food Establishment Registration
If you are operating a retail outlet where you will sell or
serve your cider or foods to consumers you must also
begin the Retail Food Facilities License application process
for each location where you intend to sell or serve.
This application will start the process for the PDA to
evaluate if you are exempt or if you require a license for
your desired sales and activities. This evaluation will also
assist you in determining the type of equipment or food
safety measures necessary for the types of food and beverages
you wish to serve or sell.
Apply for a Retail Food Facilities License
Retail Food Facilities Application
17

LABELING
Determine your brand, follow the rules,
make it fun!
Do yourself a favor and apply for your
Federal label approvals first!
You will need the resulting information to
complete your state labeling forms if
applicable.
Steps
1 Apply with TTB
2 Check FDA
requirements
3 Check State
requirements
18

Not sure where to start?
Follow this handy chart to find out what agency regulations govern the labeling of
your product. For the federal requirements, it’s all based on your ABV.
TTB under Internal
TTB under Alcohol
FDA
TTB under Federal Alcohol
Revenue Code
Beverage Labeling Act of
Administration Act
1988
Applies to ALL Domestic
Cider
Applies to ALL Cider Applies to all cider below 7
percent ABV
(FDA does not regulate
labeling of ciders at or
above 7 percent ABV)
Small cideries may apply for
Applies to all cider at or
above 7 percent ABV
Name and address of
Government warning
Name and place of business
Name and address of
premises where bottled
statement
of manufacturer, packer, or
premises where bottled
(e.g. “ABC Winery,
distributor (e.g. “ABC
(e.g. “ABC Winery,
Missoula, MT”)
Winery, Missoula, MT
Missoula, MT”)
59801”)
Net contents in milliliters
Net contents by the largest
Net contents in milliliters
(e.g. “331mL”)
whole units (e.g. qts., pts.)
(e.g. “750mL”)
with any remainder in fluid
ounces or fraction of the
whole unit (e.g. “12 fl. oz.”)
Class and type of product
Statement of identity (e.g.
Class and type of product
(e.g. “hard cider”)
“hard cider”)
(e.g. “cider”)
Alcohol content as a
Nutrition facts box (e.g.
Alcohol content as a
percentage of alcohol by
serving size, calories, fat,
percentage of alcohol by
volume (e.g. “alc. 5.5% by
vol.”)
sodium, carbohydrates, and
protein content)
volume (e.g. “alc. 8.0% by
vol.”)
List of ingredients in
Sulfites declaration (if
descending order of
applicable)
predominance by weight
(e.g. “cider, carbonated
water, dextrose, fructose,”
etc)
Food allergen labeling (e.g.
Brand name of product
“contains soybeans”)
19

Regulations require a Nutrition Facts
Box (e.g. serving size, calories, fat,
sodium, carbohydrates, and protein
content). *Please note this cidery is
exempt from Nutrition Fact Box
labeling.
Labeling—Example 1
Domestic Cider below 7% ABV
List of ingredients in
descending order of
predominance by weight
(e.g. “cider, carbonated
water, dextrose, fructose,”
etc.)
Name and address of premises
where bottled
(e.g. “ABC Winery, Missoula, MT”)
Net contents by
the largest whole
units (e.g. qts.,
pts.) with any
remainder in fluid
ounces or fraction
of the whole unit
(e.g. “12 fl. oz.”)
Alcohol content as
a percentage of
alcohol by volume
(e.g. “alc. 5.5% by
vol.”)
Statement of identity
(e.g. “hard cider”)
Name and place of business
of manufacturer, packer, or
distributor (e.g. “ABC Winery,
Missoula, MT 59801”)
Government
warning statement
20

Labeling—Example 1
Domestic Cider above 7% ABV
Sulfites declaration (if applicable)
Brand name of
product
Class and type
of product (e.g.
“hard cider”)
Alcohol content as a
percentage of alcohol by
volume (e.g. “alc. 5.5%
by vol.”)
Net contents in
milliliters (e.g. “331mL”)
Name and address of
premises where
bottled (e.g. “ABC
Winery, Missoula, MT”)
Government
warning
statement
21

Apply with the TTB
Think you have everything you need on your label?
Apply with the Federal Alcohol Tobacco Tax and Trade Bureau (TTB)
Apply for your Certification of Label Approval with the TTB
https://www.ttbonline.gov/COLA Application
At the time of publication of this document processing time for this application was
approximately 22 days.
Check with the FDA
Food and Drug Administration (FDA) requirements for labels
Unlike the TTB, FDA does not require an application and approval process for
labeling but rather provides their requirements that must be on labels for all
cider below 7% ABV.
Specific requirements are outlined in the labeling chart on page 19.
22

Check with State Requirements
In Pennsylvania, the PLCB rules
differ depending on your state
license.
PA Brewery License
Apply to Register your Malt or
Brewed Beverage Brand
Malt or Brewed Beverage
Registration Form
Important!
If you would like to ship your
hard cider to be sold in PA Wine
and Spirit Stores please follow
the requirements for case
labeling outlined by the PLCB.
Shipping and Labeling
Requirements for Shipping
to the PLCB
PA Limited Winery License
The PLCB does not regulate hard
cider or wine label requirements
therefore if you are licensed under
a PLCB Limited Winery License you
are only held to the federal
requirements outlined above 10 .
Warning!
Trademark Protection
Registering a name and checking the Pennsylvania database does not
give you federal trademark protection nor does it mean that others are
not using your name in other states. If you desire to trademark your
name or other applicable marks, you must apply to the United States
Patent and Trademark Office at www.uspto.gov.
23

State Taxes
TAXES
As a hard cider business you will have to pay state and federal
taxes amongst others.
Pennsylvania tax rates for hard cider are outlined below and differ
depending on the type of license you hold.
Brewery License
PA State Tax Rate = $0.08/gallon excise tax rate 8
Limited Winery License
PA State- $0.15/gallon ‘producer charge’
Federal Taxes
Please note that hard cider is subject to the ‘Hard Cider’ and ‘Naturally
Sparkling’ or ‘Artificially Carbonated’ tax rates.
PRODUCT TAX TAX PER PACKAGE (usually to
nearest cent)
Wine Wine Gallon 750ml bottle
14% Alcohol or Less $1.07 1 $0.21
Over 14 to 21% $1.57 1 $0.31
Over 21 to 24% $3.15 1 $0.62
Naturally Sparkling $3.40 $0.67
Artificially Carbonated $3.30 1 $0.65
Hard Cider $0.226 1 $0.04
( 1 $0.90 credit, or for hard cider $0.056, may be available for the first 100,000 gallons removed by a small
winery producing not more than 150,000 w.g. per year. Decreasing credit rates for a winery producing up to
250,000 w.g. per year.)
Alcohol and Tobacco Tax and Trade Bureau - U.S. Department of Treasury http://www.ttb.gov/tax_audit/atftaxes.shtml
24

References
1 https://govt.westlaw.com/pac/Document/NA79372D0F83C11E1A7BD881D24C963FA?
viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=
(sc.Default)
2 http://www.lcbapps.lcb.state.pa.us/webapp/legal/PublicAdvOpnDisplay.asp?
opinion_year=2013&opinion_sequence=335
3 http://www.lcb.state.pa.us/cons/groups/licensing/documents/form/002130.pdf
4 http://www.lcbapps.lcb.state.pa.us/webapp/legal/PublicAdvOpnDisplay.asp?
opinion_year=2005&opinion_sequence=236
5 http://www.lcbapps.lcb.state.pa.us/webapp/legal/PublicAdvOpnDisplay.asp?
opinion_year=2014&opinion_sequence=635
6 http://www.lcb.state.pa.us/cons/groups/licensing/documents/form/002130.pdf
7 http://spotidoc.com/doc/931727/plcb---pennsylvania-liquor-control-board
8 http://www.taxadmin.org/fta/rate/beer.pdf
9 http://www.lcb.state.pa.us/cons/groups/system_internet/documents/webasset/000664.pdf
10 http://www.lcbapps.lcb.state.pa.us/webapp/legal/PublicAdvOpnDisplay.asp?
opinion_year=2015&opinion_sequence=132
For more information contact:
Carla Snyder
Phone: (717) 334-6271
Email: snyder.carla@psu.edu
or
Erin Dugan
Phone: (717) 334-6271
Email: ekd5153@psu.edu
Information provided in this publication is intended for educational and illustrative purposes only.
Please check with local, state and federal agencies for the most up to date requirements and
information.
25

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Dr. Kenneth Lehrman III, Vice Provost for Affirmative Action, Affirmative Action Office, The Pennsylvania State University, 328
Boucke Building, University Park, PA 16802-5901, Email: kfl2@psu.edu, Tel (814) 863-0471.