Startup Assistance

Part of the Brewers Association of Maryland’s mission is to help new breweries through the licensing and startup process. We encourage startups to join BAM and begin networking with the industry, benefit from the legal and regulatory advice and BAM’s marketing programs.

Federal & State License Info

Before any commercial production begins, a startup brewery must either obtain federal and state licensing (if they wish to brew the beer themselves), or contract with an existing brewery to produce beer. Beer brewed prior to the issuance of a state license cannot be sold (i.e., everything prior to licensure is non-commercial). All breweries must have the following before producing their first beer:

• Approval from local zoning/planning office to brew at the location;
• Federal Brewery Permit. Details can be found on the TTB’s website;
• State of Maryland manufacturing license.

This article from an attorney who works almost exclusively with craft beverage producers also offers good tips on navigating the TTB application process.

BAM can be very helpful for member startups by assisting in the planning/zoning process. Click on the sections below to reveal the details of each State of Maryland manufacturing license. Contact BAM if you have questions about the laws.

Class 5M - Production Brewery

The Class 5 Brewery license is meant to be predominantly a brewing facility, with limited accommodation of the public on-site. The M5 (= manufacturer Class 5) is allowed to brew an unlimited amount of beer, and has the following restrictions/allowances:

• §2–207. IN EFFECT (a) In this section, “affiliate” means a person that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with a holder of a Class 5 brewery license. (b) There is a Class 5 brewery license. (c) A license holder may: (1) establish and operate a plant for brewing and bottling malt beverages at the location described in the license; (2) import beer from a holder of a nonresident dealer’s permit; (3) contract to brew and bottle beer with and on behalf of the holder of a Class 2 rectifying license, Class 5 brewery license, Class 7 micro–brewery license, Class 8 farm brewery license, or a nonresident dealer’s permit; (4) sell and deliver beer to: (i) a holder of a wholesaler’s license that is authorized to acquire beer; or (ii) a person outside of the State that is authorized to acquire beer; (5) subject to subsection (i) of this section, serve, at no charge, samples of beer, consisting of a total of not more than 18 ounces of beer per visit, to an individual who: (i) has attained the legal drinking age; and (ii) is participating in a guided tour of the brewery or attends a scheduled promotional event or other organized activity at the brewery; (6) subject to subsections (d) and (i) of this section, sell beer for off–premises consumption at retail in a container other than a keg to an individual participating in a guided tour of the brewery or attending a scheduled promotional event or other organized activity at the brewery; and (7) subject to subsection (f) of this section, sell beer at the location described in the license for on–premises consumption. (d) An individual may purchase beer under subsection (c)(6) of this section if the individual: (1) purchases not more than 288 ounces of beer per visit; and (2) has attained the legal drinking age. (e) The annual license fee is $1,500. (f) (1) A local licensing board may grant an on–site consumption permit to an applicant that holds a Class 5 brewery license and, subject to paragraph (6) of this subsection, a Class D beer license. (2) Subject to the maximum volume limit under paragraph (4) of this subsection, a Class D beer license or an equivalent license under paragraph (6) of this subsection entitles the holder to sell to an individual who has attained the legal drinking age, for on–premises consumption at the brewery: (i) beer: 1. of which the holder of the Class 5 license is the brand owner; and 2. that is fermented and brewed entirely at the brewery of the license holder; (ii) beer that is fermented and brewed entirely at the brewery under contract with a brand owner who does not possess a Class 5 license; and (iii) subject to paragraph (3) of this subsection, beer brewed at a location other than the Class 5 brewery if: 1. the brand owner of the beer is the holder of the Class 5 license or an affiliate of the holder of the Class 5 license; 2. the number of barrels of the beer sold for on–premises consumption under the Class D beer license or an equivalent license or an on–site consumption permit in a calendar year does not exceed the greater of: A. 25% of the total number of barrels of beer sold for on–premises consumption under the Class D license or an equivalent license or an on–site consumption permit in that calendar year; or B. 1.2% of total finished production under the Class 5 brewery license; and 3. A. the license holder contracts with or on behalf of a holder of a manufacturer’s license or nonresident dealer’s permit; or B. the beer is manufactured by an affiliate of the license holder. (3) (i) This paragraph applies to a Class 5 brewery with more than 1,000,000 barrels of finished production annually, alone or in combination with its affiliates. (ii) Beer that is delivered to the Class 5 brewery in finished form may be sold for on–premises consumption under paragraph (2)(iii)2 of this subsection only if it is purchased from a licensed wholesaler. (4) Except as provided in paragraph (5) of this subsection, the total amount of beer sold each year for on–premises consumption under this subsection may not exceed 2,000 barrels. (5) (i) If, in a single year, the license holder reaches 80% of the volume authorized to be sold for on–premises consumption under paragraph (4) of this subsection, the license holder may file a request with the Comptroller for permission to sell up to an additional 1,000 barrels for on–premises consumption in that year. (ii) The maximum volume that a license holder may sell for on–premises consumption in a single year is 3,000 barrels. (iii) Any beer that the license holder sells for on–premises consumption in excess of the 2,000–barrel limit under paragraph (4) of this subsection shall be purchased from a licensed wholesaler. (6) Before a local licensing board that does not issue a Class D beer license may grant an on–site consumption permit, the local licensing board shall: (i) establish an equivalent license; and (ii) require the applicant to obtain that equivalent license. (7) A local licensing board may charge a fee for granting an on–site consumption permit. (8) A local licensing board shall require the holder of an on–site consumption permit or a Class D beer license or an equivalent license under paragraph (6) of this subsection to: (i) comply with the alcohol awareness requirements under § 4–505 of this article; and (ii) abide by all applicable trade practice restrictions. (g) (1) The Comptroller may issue a brewery promotional event permit to a holder of a Class 5 brewery license. (2) Subject to subsection (i) of this section, the permit authorizes the holder to conduct on the premises of the brewery a promotional event at which the holder may, with respect to individuals who have attained the legal drinking age: (i) provide samples consisting of a total of not more than 18 fluid ounces to a consumer; and (ii) sell beer to individuals who participate in the event. (3) Subject to subsection (i) of this section, the beer at the event shall be sold by the glass for on–premises consumption only. (4) To obtain a permit, an applicant, at least 15 days before the event, shall file with the Comptroller an application that the Comptroller provides. (5) A holder of a Class 5 brewery license may not be issued more than 12 permits in a calendar year. (6) A single promotional event may not exceed 3 consecutive days. (7) The permit fee is $25 per event. (h) (1) This subsection does not apply to: (i) the holder of a Class 5 brewery license that held an on–site consumption permit and a Class D license or an equivalent license on or before April 1, 2017; (ii) an individual who held a minority interest in an on–site consumption permit and a Class D license or an equivalent license on or before April 1, 2017, and then obtains by transfer a majority interest in the same license or permit; (iii) a location in the State for which a completed brewer’s notice form was filed with the U. S. Department of Treasury on or before April 1, 2017; (iv) a promotional event conducted under subsection (g) of this section; and (v) a guided tour during which: 1. samples of beer are served under subsection (c)(5) of this section; or 2. beer is sold for off–premises consumption under subsection (c)(6) of this section. (2) This subsection applies to: (i) a holder of a Class 5 brewery license who: 1. after April 1, 2017, obtains an on–site consumption permit and a Class D beer license or equivalent license for on–premises consumption; or 2. not holding a minority interest in an on–site consumption permit and a Class D license or an equivalent license on or before April 1, 2017, obtains a majority interest by transfer in an on–site consumption permit and a Class D license or an equivalent license; and (ii) notwithstanding paragraph (1)(iii) of this subsection, a manufacturer of beer with more than 1,000,000 barrels of finished production annually alone or in combination with its affiliates. (3) Notwithstanding any provision in Division II of this article, the sales and serving privileges of an on–site consumption permit and a Class D license or an equivalent license may be exercised only from 10 a.m. to 10 p.m. Monday through Sunday. (i) All beer offered, served, or sold to a consumer under subsection (c)(5) or (6) or (g) of this section shall be: (1) fermented and brewed entirely at the Class 5 brewery; or (2) beer of which the license holder or an affiliate of the license holder is the brand owner. (j) (1) (i) The Comptroller may issue a refillable container permit for draft beer under § 4–1104 or Subtitle 11 of the various titles in Division II of this article to a holder of a Class 5 brewery license: 1. on completion of an application form that the Comptroller provides; and 2. at no cost to the holder of the Class 5 brewery license. (ii) A refillable container permit may be renewed each year concurrently with the renewal of the Class 5 brewery license. (2) The hours of sale for a refillable container permit issued under this subsection are the same as the hours when a guided tour, a promotional event, or other organized activity at the licensed premises authorized under subsection (c) of this section may be conducted. (k) (1) On or before October 1 each year, the Comptroller shall report to the Senate Education, Health, and Environmental Affairs Committee and the House Economic Matters Committee, in accordance with § 2–1246 of the State Government Article, on the following, identified by jurisdiction and Class 5 license holder: (i) the total beer production of the license holder in the preceding fiscal year; (ii) the total sales of the license holder for on–site consumption under an on–site consumption permit, a Class D beer license, or an equivalent license in the preceding fiscal year; (iii) whether the license holder has requested permission to sell additional beer under subsection (f)(5)(i) of this section, and whether the Comptroller granted that permission, for the preceding fiscal year; and (iv) the total sales of the license holder of additional beer under subsection (f)(5)(i) of this section in the preceding fiscal year. (2) Each holder of a Class 5 license shall report to the Comptroller the information needed to prepare the annual report under this subsection. (3) The Comptroller may include the information reported under this subsection in the annual report submitted under § 1–306 of this article. §2–207. // EFFECTIVE JUNE 30, 2022 PER CHAPTER 813 OF 2017 // (a) In this section, “affiliate” means a person that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with a holder of a Class 5 brewery license. (b) There is a Class 5 brewery license. (c) A license holder may: (1) establish and operate a plant for brewing and bottling malt beverages at the location described in the license; (2) import beer from a holder of a nonresident dealer’s permit; (3) contract to brew and bottle beer with and on behalf of the holder of a Class 2 rectifying license, Class 5 brewery license, Class 7 micro–brewery license, Class 8 farm brewery license, or a nonresident dealer’s permit; (4) sell and deliver beer to: (i) a holder of a wholesaler’s license that is authorized to acquire beer; or (ii) a person outside of the State that is authorized to acquire beer; (5) subject to subsection (i) of this section, serve, at no charge, samples of beer, consisting of a total of not more than 18 ounces of beer per visit, to an individual who: (i) has attained the legal drinking age; and (ii) is participating in a guided tour of the brewery or attends a scheduled promotional event or other organized activity at the brewery; (6) subject to subsections (d) and (i) of this section, sell beer for off–premises consumption at retail in a container other than a keg to an individual participating in a guided tour of the brewery or attending a scheduled promotional event or other organized activity at the brewery; and (7) subject to subsection (f) of this section, sell beer at the location described in the license for on–premises consumption. (d) An individual may purchase beer under subsection (c)(6) of this section if the individual: (1) purchases not more than 288 ounces of beer per visit; and (2) has attained the legal drinking age. (e) The annual license fee is $1,500. (f) (1) A local licensing board may grant an on–site consumption permit to an applicant that holds a Class 5 brewery license and, subject to paragraph (6) of this subsection, a Class D beer license. (2) Subject to the maximum volume limit under paragraph (4) of this subsection, a Class D beer license or an equivalent license under paragraph (6) of this subsection entitles the holder to sell to an individual who has attained the legal drinking age, for on–premises consumption at the brewery: (i) beer: 1. of which the holder of the Class 5 license is the brand owner; and 2. that is fermented and brewed entirely at the brewery of the license holder; (ii) beer that is fermented and brewed entirely at the brewery under contract with a brand owner who does not possess a Class 5 license; and (iii) subject to paragraph (3) of this subsection, beer brewed at a location other than the Class 5 brewery if: 1. the brand owner of the beer is the holder of the Class 5 license or an affiliate of the holder of the Class 5 license; 2. the number of barrels of the beer sold for on–premises consumption under the Class D beer license or an equivalent license or an on–site consumption permit in a calendar year does not exceed the greater of: A. 25% of the total number of barrels of beer sold for on–premises consumption under the Class D license or an equivalent license or an on–site consumption permit in that calendar year; or B. 1.2% of total finished production under the Class 5 brewery license; and 3. A. the license holder contracts with or on behalf of a holder of a manufacturer’s license or nonresident dealer’s permit; or B. the beer is manufactured by an affiliate of the license holder. (3) (i) This paragraph applies to a Class 5 brewery with more than 1,000,000 barrels of finished production annually, alone or in combination with its affiliates. (ii) Beer that is delivered to the Class 5 brewery in finished form may be sold for on–premises consumption under paragraph (2)(iii)2 of this subsection only if it is purchased from a licensed wholesaler. (4) Except as provided in paragraph (5) of this subsection, the total amount of beer sold each year for on–premises consumption under this subsection may not exceed 2,000 barrels. (5) (i) If, in a single year, the license holder reaches 80% of the volume authorized to be sold for on–premises consumption under paragraph (4) of this subsection, the license holder may file a request with the Comptroller for permission to sell up to an additional 1,000 barrels for on–premises consumption in that year. (ii) The maximum volume that a license holder may sell for on–premises consumption in a single year is 3,000 barrels. (iii) Any beer that the license holder sells for on–premises consumption in excess of the 2,000–barrel limit under paragraph (4) of this subsection shall be purchased from a licensed wholesaler. (6) Before a local licensing board that does not issue a Class D beer license may grant an on–site consumption permit, the local licensing board shall: (i) establish an equivalent license; and (ii) require the applicant to obtain that equivalent license. (7) A local licensing board may charge a fee for granting an on–site consumption permit. (8) A local licensing board shall require the holder of an on–site consumption permit or a Class D beer license or an equivalent license under paragraph (6) of this subsection to: (i) comply with the alcohol awareness requirements under § 4–505 of this article; and (ii) abide by all applicable trade practice restrictions. (g) (1) The Comptroller may issue a brewery promotional event permit to a holder of a Class 5 brewery license. (2) Subject to subsection (i) of this section, the permit authorizes the holder to conduct on the premises of the brewery a promotional event at which the holder may, with respect to individuals who have attained the legal drinking age: (i) provide samples consisting of a total of not more than 18 fluid ounces to a consumer; and (ii) sell beer to individuals who participate in the event. (3) Subject to subsection (i) of this section, the beer at the event shall be sold by the glass for on–premises consumption only. (4) To obtain a permit, an applicant, at least 15 days before the event, shall file with the Comptroller an application that the Comptroller provides. (5) A holder of a Class 5 brewery license may not be issued more than 12 permits in a calendar year. (6) A single promotional event may not exceed 3 consecutive days. (7) The permit fee is $25 per event. (h) (1) This subsection does not apply to: (i) the holder of a Class 5 brewery license that held an on–site consumption permit and a Class D license or an equivalent license on or before April 1, 2017; (ii) an individual who held a minority interest in an on–site consumption permit and a Class D license or an equivalent license on or before April 1, 2017, and then obtains by transfer a majority interest in the same license or permit; (iii) a location in the State for which a completed brewer’s notice form was filed with the U. S. Department of Treasury on or before April 1, 2017; (iv) a promotional event conducted under subsection (g) of this section; and (v) a guided tour during which: 1. samples of beer are served under subsection (c)(5) of this section; or 2. beer is sold for off–premises consumption under subsection (c)(6) of this section. (2) This subsection applies to: (i) a holder of a Class 5 brewery license who: 1. after April 1, 2017, obtains an on–site consumption permit and a Class D beer license or equivalent license for on–premises consumption; or 2. not holding a minority interest in an on–site consumption permit and a Class D license or an equivalent license on or before April 1, 2017, obtains a majority interest by transfer in an on–site consumption permit and a Class D license or an equivalent license; and (ii) notwithstanding paragraph (1)(iii) of this subsection, a manufacturer of beer with more than 1,000,000 barrels of finished production annually alone or in combination with its affiliates. (3) Notwithstanding any provision in Division II of this article, the sales and serving privileges of an on–site consumption permit and a Class D license or an equivalent license may be exercised only from 10 a.m. to 10 p.m. Monday through Sunday. (i) All beer offered, served, or sold to a consumer under subsection (c)(5) or (6) or (g) of this section shall be: (1) fermented and brewed entirely at the Class 5 brewery; or (2) beer of which the license holder or an affiliate of the license holder is the brand owner. (j) (1) (i) The Comptroller may issue a refillable container permit for draft beer under § 4–1104 or Subtitle 11 of the various titles in Division II of this article to a holder of a Class 5 brewery license: 1. on completion of an application form that the Comptroller provides; and 2. at no cost to the holder of the Class 5 brewery license. (ii) A refillable container permit may be renewed each year concurrently with the renewal of the Class 5 brewery license. (2) The hours of sale for a refillable container permit issued under this subsection are the same as the hours when a guided tour, a promotional event, or other organized activity at the licensed premises authorized under subsection (c) of this section may be conducted.

Class 6M - Pub-Brewery

It is worth noting that most of what are casually referred to as “Brew-Pubs” in the State of Maryland, are actually registered under Class 7 licenses.

The Class 6 Pub-Brewery license may only be issued to the holder of a Class B beer/wine/liquor on-sale license (essentially, a restaurant), and has the provisions:

• $500 fee;
• May brew up to 2,000;
• May not sell its product to retailers or other restaurants;
• May sell its beer in sealed/refillable containers for off-premise consumption (kegs);
• Is not available in all jurisdictions.

Class 7M - Micro-Brewery

The Class 7 Micro-Brewery license is meant to be an adjunct to a restaurant, and has the following provisions:

• $500 fee, annual;
• Issued to the holder of a Class B (restaurant) license, or a Class D (tavern) in some jurisdictions;
• May brew and bottle up to 22,500 barrels annually, except in Wicomico Co. where it can brew 45,000 barrels annually;
• May contract with a Class 2, 5 or 8 to brew its beer;
• If the brewery is located in Frederick or Allegany Co, may hold a second license in either of these jurisdictions;
• May sell up to 4,ooo barrels of beer annually for on-premise consumption;
• May sell growlers to go;
• May sell packaged beer to go;
• May sell to a wholesale for resale to restaurants and retailers.

Class 8M - Farm Brewery

“Class 8 Farm Brewery License – Effective July 1, 2014”

(a) There is a Class 8 farm brewery license.

(b) (1) Subject to paragraph (2) of this subsection, a license holder may sell and deliver beer manufactured in a facility on the licensed farm or in a facility other than one on the licensed farm to:

(i) a wholesaler licensed to sell and deliver beer in the State; or

(ii) a person in another state authorized to acquire beer.

(2) The beer to be sold and delivered under paragraph (1) of this subsection shall be manufactured with an ingredient from a Maryland agricultural product, including hops, grain, and fruit, produced on the licensed farm.

(c) A license holder may:

(1) (i) sell beer produced by the license holder for on–premises consumption;

(ii) in an amount not exceeding 6 fluid ounces per brand, provide samples of beer that the license holder produces to a consumer:

1. at no charge; or

(iii) sell or serve:

1. bread and other baked goods;

6. fruits (whole and cut);

7. hard and soft cheese (whole and cut);

8. salads and vegetables (whole and cut);

14. prepackaged sandwiches and other prepackaged foods ready to be eaten;

16. condiments; and

(iv) subject to subsection (e)(2) of this section, sell or serve any food if the license holder is licensed to operate a food establishment under Title 21, Subtitle 3 of the Health – General Article;

(2) store on its licensed farm, in a segregated area approved by the Comptroller, beer produced at the licensed farm for sale and delivery to a wholesaler licensed in the State or a person outside the State authorized to acquire the beer;

(3) brew, bottle, or contract for not more than 15,000 barrels of beer each calendar year;

(4) contract with the holder of a Class 2 rectifying license, a Class 5 brewery license, or a Class 7 micro–brewery license to brew and bottle beer from ingredients produced on the licensed farm;

(5) import, export, and transport its beer in accordance with this section;

(6) store beer at a warehouse for which the license holder has been issued an individual storage permit, for sale and delivery to a wholesaler licensed in the State or a person outside the State authorized to acquire the beer, or shipment back to the licensed farm, if:

(i) the license holder does not serve or sell beer at the warehouse; and

(ii) the Comptroller has full access at all times to the warehouse to enforce this article; and

(7) enter into a temporary delivery agreement with a distributor only for delivery of beer to a beer festival or a wine and beer festival, and the return of any unused beer, if:

(i) the festival is in a sales territory for which the license holder does not have a franchise with a distributor under the Beer Franchise Fair Dealing Act in Title 5, Subtitle 1 of this article; and

(ii) the temporary delivery agreement is in writing.

(d) (1) A Class 8 farm brewery may be located only at the place stated on the license.

(2) The place listed on the license shall be in compliance with § 1–405(b) of this article.

(e) (1) Except as provided in paragraph (2) of this subsection and notwithstanding any local law, a license holder may exercise the privileges of a Class 8 farm brewery license.

(2) A license holder who sells foods under subsection (c)(1)(iv) of this section shall meet the same ratio of gross receipts between food and alcoholic beverages sales as a holder of a Class D beer and wine license or an equivalent license in the jurisdiction, as the local licensing board determines.

(f) Subject to subsections (i) and (j) of this section, a license holder may exercise the privileges of the license each day:

(1) from 10 a.m. to 6 p.m., for consumption of beer and sales and service of food at the licensed farm; and

(2) from 10 a.m. to 10 p.m., for:

(i) sampling of beer;

(ii) consumption of beer off the licensed farm if the beer is packaged in sealed or resealable containers, such as growlers; and

(iii) guests who attend a planned promotional event or other organized activity at the licensed farm.

(g) Except as provided in Division II of this article, a Class 8 farm brewery license allows the license holder to operate 7 days a week.

(h) Nothing in this section limits the application of relevant provisions of Title 21 of the Health – General Article, and regulations adopted under that title, to a license holder.

(i) (1) A license holder may sponsor a multibrewery activity at the licensed farm that:

(i) includes the products of other Maryland breweries; and

(ii) provides for the sale of beer by the glass for on–premises consumption only.

(2) In a segregated area approved by the Comptroller on the licensed farm, a license holder may store the products of other Maryland breweries for the multibrewery activity.

(3) The multibrewery activity:

(i) may be held from 10 a.m. to 10 p.m. each day; and

(ii) may not exceed 3 consecutive days.

(j) (1) The Comptroller may issue a brewery promotional event permit to a license holder.

(2) At least 15 days before holding a planned promotional event, the license holder shall obtain a permit from the Comptroller by filing a notice of the promotional event on the form that the Comptroller provides.

(3) The permit authorizes the license holder to conduct at the licensed farm a promotional event at which the license holder may:

(i) provide samples of not more than 6 fluid ounces per brand to consumers; and

(ii) sell beer produced by the license holder to persons who participate in the event.

(4) The beer at the event shall be sold by the glass and for on–premises consumption only.

(5) The license holder may not be issued more than 12 permits in a calendar year.

(6) A single promotional event:

(i) may be held from 10 a.m. to 10 p.m. each day; and

(ii) may not exceed 3 consecutive days.

(7) The permit fee is $25 per event.

(k) The annual license fee is $200.

Class 7W - Limited Beer Wholesaler License

(a) There is a Class 7 limited beer wholesaler’s license.

(b) The license may be issued only to a person that:

(1) holds a Class 5 manufacturer’s license, a Class 7 micro–brewery license, or a Class 8 farm brewery license; and

(2) produces in the aggregate from all of its locations not more than 22,500 barrels of beer annually.

(c) The license authorizes the license holder to:

(1) sell and deliver its own beer produced at the license holder’s premises to:

(i) a holder of a retail license that is authorized to acquire beer from a wholesaler; and

(ii) a holder of a permit that is authorized to acquire beer from a wholesaler; and

(2) distribute not more than 3,000 barrels of its own beer annually.

(d) The annual license fee is $50.

(e) The license holder may use an additional location for the warehousing, sale, and delivery of beer:

(1) if approved by the Comptroller following submission of a separate application for each location; and

(2) on the payment of a $50 fee for each additional location.

MD Franchise Law

Maryland’s Franchise law was revised in 2019 with beneficial provisions for breweries that produce 20,000 barrels or fewer.