A winery building is not the business. The wine, brand, customers, inventory, decisions and records are. Federal regulators accommodate commercial wine businesses without a standalone production facility through true custom crush and alternating proprietor models. Those models are not interchangeable. TTB application guidance
On this page
- What is a custom crush facility?
- Custom crush vs alternating proprietor
- Why most new wineries should not build first
- Services usually included
- What you still own and control
- Who handles what
- Licensing and compliance basics
- Grape sourcing and crush logistics
- Fermentation, barrels and bottling
- Startup cost comparison
- Production sizes
- Pros and cons
- Who should use custom crush?
- Common mistakes
- Questions to ask a facility
- Why relationships matter
- When to build your own winery
- California recommendation
- Frequently asked questions
- Official sources and references
What is a Custom Crush Facility?
In plain English, a custom crush facility is an operating winery that makes wine for someone else under contract. You bring or source the grapes, define the wine you want to make and pay the facility to perform some or all of the production work.
TTB describes a typical arrangement this way: a grape grower or another person with winemaking materials contracts with a bonded winery proprietor to process those materials into wine. The client can retain title to the grapes and have the wine made to its specifications, while the bonded winery remains the federally responsible producer. TTB Wine FAQ W11
That creates a useful division. You can build the brand and make real wine decisions without buying a crusher-destemmer, press, tanks, pumps, glycol system, barrel racks, lab equipment, bottling line and production building before your first commercial vintage.
Custom crush lets you prove the winery as a business before you prove you can own a winery as a piece of real estate.
Facilities differ. Some offer full "grape to bottle" service. Others are closer to shared industrial space, charging separately for receiving, crushing, fermentation work, storage, filtration, lab analysis and bottling. Pacific Wine Services, for example, publicly lists fruit receiving, sorting, destemming, fermentation, pressing, barrel storage, case storage, filtration and bottling among its services. Sonoma County Winegrowers' marketplace shows facilities offering everything from crush-and-go work to full production and technical support. Pacific Wine Services Sonoma County Winegrowers
Custom Crush Is Not the Same as an Alternating Proprietor
This is the most important regulatory distinction in this guide.
| Question | True custom crush client | Alternating proprietor (AP) |
|---|---|---|
| Who legally produces the wine? | The contracted bonded winery. | The AP itself while its approved premises are alternated to it. |
| Bonded winery qualification | Client is not qualified as producer merely by being a custom crush client. | Each proprietor independently qualifies as a bonded winery. |
| Federal Basic Permit | Client commonly needs a wholesaler's permit if it markets to dealers; facts control. | AP obtains the appropriate producer permit. |
| Production records and TTB operations reports | Bonded producer is responsible for winery production records and reports. | Each AP maintains and files its own. |
| COLA | The bottler obtains any required COLA. | The AP that bottles its wine obtains its COLA. |
| Federal wine excise tax | The wine premises removing the wine from bond handles the tax; cost can be passed through contractually. | Each AP is responsible for its own taxable removals unless wine is properly transferred in bond. |
| Operational control | Client specifies the desired wine, but the bonded producer remains responsible for lawful production. | AP independently directs its winery operations. |
TTB says directly that a custom crush arrangement is not an alternating proprietorship. Each AP must qualify independently, and an existing winery cannot lend its federal qualification to another company. TTB Industry Circular 2008-4
Why Most New Wineries Should Not Build a Winery First
There are exceptions. If you already control a suitable permitted site, have reliable scale, possess the operating team and need proprietary equipment or estate hospitality, an owned facility can be rational from day one. But for a first vintage, custom crush usually deserves to be the default comparison case.
| Reason | Why it matters |
|---|---|
| Lower upfront capital | You avoid buying most core production infrastructure before proving the brand, preserving cash for grapes, packaging, sales and inventory. |
| Faster launch | An operating facility already exists, although your own required permits must still be approved before the relevant business begins. TTB |
| Experienced staff | Good facilities provide access to cellar, lab, quality, bottling and sanitation experience without requiring a startup to staff every role. UC Davis |
| Shared equipment | You pay for access to presses, tanks, pumps and other capacity instead of owning equipment that may be used only briefly each vintage. |
| Learning before building | Your first vintages reveal the fermenter sizes, storage, lab, finishing and bottling capabilities your eventual winery actually needs. |
| Gradual scaling | Current California listings span boutique lots under 10 tons through production brands around 100 tons, showing that outsourced production is not limited to one scale. Sonoma County Winegrowers |
What Services Are Usually Included?
There is no standard custom crush package. Full-service facilities can cover most of the production chain, but the contract controls. Ask whether each item below is included, separately charged, subcontracted or unavailable.
| Stage | Services you may find | Questions that change cost or quality |
|---|---|---|
| Grape receiving | Scale tickets, sampling, fruit inspection, bin handling, sorting | Delivery window, after-hours fruit, refrigerated fruit, MOG sorting, wait time |
| Crushing and destemming | Destemming, crushing, whole-berry or whole-cluster handling | Equipment style, minimum lot, cleaning between lots |
| White/rosé pressing | Whole-cluster or crushed-fruit pressing, juice settling | Press cycle, fractions, yields, press availability |
| Fermentation | Tank/bin assignment, inoculation, temperature control, monitoring | Small-bin surcharge, native fermentation, heating/cooling, nutrient protocol |
| Extraction | Punch downs, pump overs, rack-and-return, pressing reds | Frequency, labor windows, special protocols |
| Lab | Brix, temperature, pH, TA and other analytical work | What is onsite, what is sent out, turnaround and per-test charges |
| Barrel program | Barrel filling, topping, SO2 work, racking, storage | Who buys barrels, topping frequency, barrel rent, long aging, humidity |
| Blending and finishing | Trial support, wine movements, filtration, stabilization | Bench trials, analysis, extra tank time, specialty processing |
| Bottling | Onsite or coordinated bottling, filtration, line setup | Minimum run, glass/closure compatibility, changeovers, dry goods, date access |
| Storage | Bulk tank, barrel, dry-goods and case-goods storage | Monthly rate, minimums, pallet moves, long-term storage |
| Compliance support | Producer records, reports and label workflow where applicable | Custom crush vs AP, COLA applicant, state reporting, what is advisory vs included |
Published service menus support this range, but they also prove the larger point: every facility is different. Pacific Wine Services Sonoma County Winegrowers marketplace
What You Still Own
Outsourcing production does not mean outsourcing the winery business.
- Your brand: trademarks, story, positioning and customer promise remain business assets you control, subject to your contracts.
- Your wine: title, custody and risk of loss should be stated explicitly in the agreement. TTB's typical example contemplates a client retaining title to grapes, but regulatory responsibility still sits with the producer.
- Your decisions: style goals, grape source, harvest preferences, oak, blends and finishing choices can remain yours to the extent the written protocol gives you those rights and the producer can lawfully execute them.
- Your labels: you control the brand artwork and claims, but the bottler is the party responsible for obtaining any required COLA.
- Your customers: distributors, club members, tasting-room guests and DTC buyers belong to the commercial side of your business, subject to applicable privacy and alcohol laws.
What the Facility Handles, and What You Still Have to Run
In a true custom crush arrangement, the bonded winery carries the federal responsibility for production operations, winery records, TTB operations reports, labeling as the bottler and tax removal. TTB's current application guidance summarizes a custom crush client as having minimal federal recordkeeping and no winery production, labeling, excise-tax or operations-report responsibility. TTB
The client is not administratively invisible. TTB says clients performing wholesale-type functions such as setting price, choosing dealers and controlling advertising need the appropriate wholesaler permit and related records. TTB Wine FAQ W11
You also need your own management record for fruit source, requested work, finished inventory, cost, location, label version and sales.
That is where a winery system remains useful even when someone else owns the tanks. Vineyard operations, production records, inventory, compliance workflows, bottling, wine club, DTC and reporting still have to connect at the brand level. The federal record of production and your management record can overlap, but they are not the same thing.
Licensing, Labels and Compliance: The Basics
Federal: true custom crush
The custom wine producer must be fully qualified as a bonded winery. In most cases, TTB says the custom crush client that markets the wine needs a Federal Wholesaler's Basic Permit. TTB describes a limited exception when the customer merely receives proceeds from a sale carried out by the winery rather than conducting wholesale-type marketing activity itself. TTB
Federal: alternating proprietor
Each AP independently qualifies its winery operations. The AP is not borrowing the host's permit. It is responsible for its own production, records, reports, labels and taxes while using the shared premises under the approved alternation. TTB
What "bonded winery" actually means
TTB defines a bonded winery as bonded wine premises where wine is produced. Do not read the word "bonded" as proof that every small winery must post a surety bond today. TTB's current winery application tutorial explains that a wine bond is required under specified circumstances, including when the EIN's wine tax liability exceeds the federal threshold, while eligible smaller taxpayers can be exempt from the bond requirement. TTB Permits Online tutorial
COLAs and label responsibility
TTB's June 2026 investigator guidance is unusually direct: the bottler gets the COLA. If your custom crush producer bottles the wine, it submits any required Certificate of Label Approval. If you are an AP and bottle the wine under your own qualification, you are the applicant. A certificate of exemption can apply in qualifying intrastate-only situations, so "COLA where applicable" is the precise rule. TTB, updated June 25, 2026
Labels themselves can require brand name, class/type, alcohol content, name/address, net contents, health warning and a sulfite declaration when total sulfur dioxide reaches the regulatory threshold, plus appellation or other information when particular claims are used. Specialty products can require formula approval before COLA submission. TTB Wine Labeling
Federal winery records
If you choose the AP or owned-winery route, the recordkeeping load becomes yours. Current 27 CFR Part 24 requires bonded wine premises proprietors to maintain wine transaction and supporting source records. Section 24.300 generally sets at least a three-year retention period, with authority for TTB to require additional retention in specified circumstances. TTB F 5120.17 operations reporting can be monthly, quarterly or annual when the proprietor meets the applicable criteria. 27 CFR Part 24, Subpart O
California licensing
California ABC's Type 02 Winegrower license authorizes wine production and sale by wineries. ABC explicitly recognizes alternating proprietorships and states that separate licenses are issued to each legal entity manufacturing wine under its own bonded winery permit. California ABC License Types
A true custom crush client's California license path depends on what it actually does. ABC's current application materials expressly recognize a Type 17/20 combination, but that does not make it the automatic answer for every virtual brand. Type 17 is a beer and wine wholesaler license and Type 20 is an off-sale beer and wine retail license. Premises, wholesale activity, DTC, tasting and other privileges all matter. ABC also instructs applicants to work with local planning authorities for zoning and conditional-use requirements when applicable. California ABC application requirements
Grape Sourcing and Crush Logistics
Custom crush works best when the grape contract and the production contract speak to each other.
Before harvest, establish the vineyard/block, variety and clone where relevant, expected tonnage range, pricing basis, quality specifications, farming or sampling access, who monitors maturity, who can call the pick, picking method, bins or gondolas, trucking, delivery address and what happens when the crop is materially above or below estimate.
Do not budget fruit from a single statewide average. The USDA NASS/CDFA final 2025 California Grape Crush Report put statewide average white wine grape pricing at $706.10 per ton and red wine grapes at $1,280.66 per ton, but the same report breaks pricing down by district and variety because the market varies enormously by location and grape. Use the final report as a benchmarking dataset, then price your actual fruit from a real grower contract. USDA NASS/CDFA 2025 Final Grape Crush Report
Then give the custom crush facility enough information to reserve the right physical capacity. A winery does not process "five tons sometime in September." It processes a specific fruit load on a day that may move, into a fermenter that has to fit the lot, with a press and crew that other clients also need. Ask what happens if your harvest date shifts three days, your crop comes in 20 percent heavy or a heat event compresses every client's pick window.
Fermentation Management, Barrel Programs and Bottling
A good custom crush relationship turns winemaking intent into a repeatable written protocol.
Fermentation management
Define who approves inoculation, nutrients and additions; target fermentation temperature; monitoring cadence; punch-down or pump-over frequency; pressing decision; and escalation triggers for a fermentation that departs from plan. UC Davis winemaking materials emphasize that fermentation work crosses microbiology, chemistry, analysis and production, which is why the people and communication system matter as much as the tanks. UC Davis Viticulture and Enology research resources
Lab testing
Ask which analyses are included, which are charged separately and which go to an outside laboratory. Agree on who sees results, how quickly exceptions are escalated and who can authorize corrective work. "Lab included" is not a protocol.
Barrels
Specify who purchases and owns cooperage, new versus used barrels, forest/cooper/toast if important, barrel identification, filling and topping, SO2 management, racking schedule, storage duration, barrel rent and disposition. A barrel program can be one of the largest variables in both cost and cellar footprint.
Blending and finishing
Reserve time for bench trials and decisions before bottling. Clarify whether fining, cold stability, filtration or other finishing work is included. If you need a special process, confirm the facility can execute it before signing, not two weeks before bottling.
Bottling
Work backward from bottling to secure dry goods, filtration, analysis and label paperwork. Some facilities bottle onsite, others use scheduled or mobile lines. The responsible bottler must obtain the appropriate COLA before bottling when a COLA is required. TTB
Startup Cost Comparison: Custom Crush vs Building a Winery
The honest answer is not one magic number. Wine style, location, land, wastewater, utility capacity, construction, equipment, volume, barrel program, storage time and packaging can move a startup budget by multiples. The useful comparison separates fixed production capital from per-vintage working capital.
| Planning item | Custom crush | Owned production winery |
|---|---|---|
| Production building and core equipment | Normally provided through the service arrangement; client avoids buying the producer's core premises/equipment. | Owner funds site, building, utilities and production equipment. |
| Evidence-backed planning benchmark | A 2025 industry presentation cited about $45-$90/case for small-volume North Coast crush-to-bottle service above 1,000 cases. | WSU Extension's historical study modeled $560,894-$2,339,108 total investment for 2,000-20,000 case wineries in its study-era dollars. |
| 2026 purchasing-power illustration | At 1,000 cases, the cited service range is $45,000-$90,000 before stated exclusions. | Applying U.S. CPI-U only as an inflation illustration puts the WSU range around $0.99M-$4.14M at June 2026 CPI. |
| Important exclusions | The 2025 source says taxes, barrels, bottles, labels, corks/capsules and consulting winemaking are not included in its $45-$90/case range. | Modern California land, permits, local construction, wastewater, utility upgrades, financing and equipment bids can differ materially from an inflation-adjusted historical study. |
| Grapes | Separate unless the contract specifically includes sourcing/bulk wine. | Separate unless estate fruit economics are modeled elsewhere. |
| Storage and long aging | Often a recurring charge and a major variable for red wines. | Requires owned/rented footprint and working capital; facility carrying costs continue even when tanks or barrels are idle. |
| Labor | Core cellar labor can be bundled or charged by task. | Owner hires/schedules staff and absorbs payroll even when utilization is uneven. |
| Maintenance and breakdowns | Core facility equipment risk largely sits with provider, subject to contract. | Owner funds repairs, spares, maintenance and replacement. |
How the $0.99M-$4.14M illustration was calculated: WSU Extension reported $560,894 to $2,339,108 of investment across the study's 2,000 to 20,000 case winery models. U.S. CPI-U averaged 188.9 in 2004 and was 333.952 in June 2026, a ratio of about 1.768. Multiplying the historical figures by that ratio gives about $991,600 to $4.14 million. CPI is a consumer price index, not a winery construction index, so these are purchasing-power equivalents only. Get current local bids. WSU Extension BLS historical CPI BLS 2026 CPI
The custom crush service benchmark comes from a February 2025 industry presentation by winemaker Alison Crowe. It also cited bottling service around $5 to $16 per case and showed separate charges for storage and processing steps, reinforcing why a per-ton headline price is not enough. 2025 Custom Crush presentation
What Production Size Works for Custom Crush?
There is no regulatory "typical" production size, and facilities vary too much for a meaningful universal minimum.
At the small end, Camarillo Custom Crush currently states a minimum of 60 gallons, approximately one barrel or 25 twelve-bottle cases. Its service page should be confirmed directly because it also contains old season-specific text. At the other end, current Sonoma County Winegrowers listings describe facilities working with boutique lots under 10 tons and production brands around 100 tons. Camarillo Custom Crush Sonoma County Winegrowers
Instead of asking, "Am I big enough for custom crush?" ask four better questions: Does the facility accept my lot size? Does its equipment fit that lot efficiently? Will my volume get the service level I expect during harvest? Does the pricing still work at my scale?
Custom Crush Pros and Cons
Pros
- Much lower upfront production infrastructure commitment
- Faster path to a first commercial vintage
- Access to experienced cellar and lab teams
- Shared use of equipment that would otherwise sit idle
- Ability to test varieties, styles and volume before building
- Easier expansion or overflow for existing wineries
- Real-world learning before designing an owned facility
Cons
- Harvest and bottling schedules are shared with other clients
- Special protocols may carry surcharges or be unavailable
- Storage and long aging can become expensive
- Communication failures can become production failures
- You depend on someone else's sanitation, maintenance and staffing
- You may have less spontaneous cellar access
- At sustained scale, service fees can eventually justify owned capacity
A 2025 custom crush strategy presentation identifies the same tradeoff in practical terms: third-party handling, scheduling, flexibility, sanitation and communication are risks, while shared specialized equipment, lab capability, quality control and lower economic commitment are benefits. Industry presentation
Who Should Use Custom Crush?
- First commercial vintage: learn production, compliance, packaging and sales without adding construction to the list.
- Boutique winery: access professional equipment and staff that are hard to justify at low utilization.
- Vineyard owner: turn estate fruit into commercial wine without first constructing a production winery. TTB's own example contemplates a grape grower as the client. TTB
- Side business: reduce year-round production staffing and maintenance, while still accepting that the brand itself is not passive.
- New variety or wine style: test a program and specialized equipment before buying permanent capacity.
- Expanding winery: add overflow production, storage or specialty capability without immediate construction.
Common Mistakes New Wineries Make
Choosing the cheapest facility
A low per-ton rate can lose quickly to surcharges, long-distance trucking, storage, inflexible bottling dates or poor communication. Compare total grape-to-bottle scope.
Not visiting during harvest
You do not need to hover over every pump-over, but harvest is when you learn how the team actually works. Visit before signing, understand the receiving flow and agree on when your physical presence is useful.
Ignoring the contract
TTB itself describes custom crush as an agreement or formal contract. Read the service schedule. Define who can approve work, what happens when fruit is late or heavy, how wine is released, storage charges, payment defaults, ownership and risk of loss. TTB
Not understanding compliance
"The facility handles compliance" can mean producer reports only. It does not automatically cover your wholesaler permit, ABC licensing, sales tax, DTC shipping or every state where you sell.
Poor communication
Harvest decisions arrive at bad hours and on inconvenient days. Name one authorized client decision-maker and one backup. Define how urgent questions are escalated and how work orders are documented.
Waiting on packaging
Wine can be ready while labels, glass or closures are not. Work backward from bottling and submit label materials early enough to resolve compliance issues.
Keeping no independent record
Even when the producer owns the federal recordkeeping obligation, you still need your own lot, cost and inventory history. Otherwise you cannot reliably calculate COGS, reconcile cases or reproduce the next vintage.
Questions to Ask Before Choosing a Custom Crush Facility
- Are you offering true custom crush, alternating proprietorship, or both?
- What is your minimum client volume and minimum individual lot size?
- What fermenter and press sizes are available for my program?
- How do you schedule fruit when several clients want to pick on the same day?
- What happens if my tonnage is materially over or under forecast?
- Which grape receiving, sorting, crushing, destemming and pressing steps are included?
- What is the standard fermentation monitoring cadence?
- How are punch downs, pump overs and special extraction protocols priced?
- Which lab tests are onsite, included or sent out?
- Who can authorize additions or corrective work?
- How are lots physically identified and segregated?
- Who owns barrels and who pays for topping, storage and replacement?
- What storage is included, and when do monthly fees begin?
- Do you bottle onsite? If so, how often and at what minimum run?
- Which bottling costs exclude glass, closures, labels, capsules or cartons?
- Who is the bottler of record and who submits any required COLA?
- For a custom crush client, what compliance work do you perform and what remains mine?
- For an AP, what records, premises alternation and reporting support do you provide?
- Can I see a sample invoice or rate sheet showing common surcharges?
- How are wine losses, contamination, equipment failures and rework handled contractually?
- What insurance do you carry, and what coverage do you require from clients?
- Who bears risk of loss for grapes, bulk wine, barrels, dry goods and finished cases?
- Can I be physically involved in cellar work, and under what regulatory and safety structure?
- Who is my day-to-day contact during harvest?
- How quickly should I expect a response to a time-sensitive production decision?
- How are lab results, work orders and production records shared?
- What happens to my wine if our agreement terminates before bottling?
- Can you support my expected volume two or three vintages from now?
- Can I speak with current clients whose programs resemble mine?
Insurance Considerations
A custom crush arrangement changes where the wine is made. It does not make business risk disappear.
Have an insurance broker who understands beverage alcohol review the actual contract. Depending on your business and what you own, the conversation can include commercial general liability, product liability, wine or stock/inventory coverage, transit or cargo, recall exposure, DTC operations, property you store at the facility and any limits or additional-insured language the provider requires.
The contract should answer the adjacent legal questions: When does title transfer? Who bears risk if fruit is damaged before processing? Who is responsible for a contaminated lot? What happens after an equipment failure? Who insures barrels owned by the client but stored on the facility's premises? How are indemnity and consequential losses treated?
Why Relationships Matter More Than the Rate Sheet
Wine creates context-heavy decisions: fruit arrives differently than expected, fermentation slows, a press fraction tastes wrong or packaging moves. An experienced team has seen versions of those problems before. That experience accelerates learning only when questions are welcomed and decisions are communicated clearly.
At the right facility, you are buying more than stainless steel. You are accessing people who know how to organize harvest, maintain sanitation, interpret results, schedule bottling and recover when plans change. That is why the cheapest quote is a poor primary filter.
When Should You Build Your Own Winery?
Custom crush is a launch strategy, a long-term operating strategy or a bridge. It does not have to be a permanent identity.
The economics begin to favor owned production when your sustained volume makes the avoidable portion of custom crush fees larger than the annualized cost of owning and operating the capacity yourself, after accounting for labor, utilities, repairs, compliance, financing and the opportunity cost of capital.
A useful decision model is:
Do not use a generic "cases per year" threshold. Two wineries at 5,000 cases can have completely different economics. One may age wine two years in expensive barrel storage and need specialized small-lot equipment. Another may turn wine quickly and receive an excellent high-volume crush rate. One may already own suitable industrial property. Another may face years of local permitting and utility upgrades.
Strong signals that it is time to model an owned facility include:
- Your annual volume has been stable enough to forecast several vintages.
- Custom crush scheduling repeatedly constrains quality or harvest decisions.
- You need equipment or processes the local custom crush market cannot provide economically.
- Storage charges and long aging have become a major recurring cost.
- You have the management depth to run a facility, not only make wine.
- The site itself creates strategic value through estate identity, hospitality or logistics.
- Current bids and financing show an acceptable return under conservative volume scenarios.
WSU Extension's historical study found economies of size as winery volume increased, which supports the basic logic that capital-intensive winery assets become easier to justify when more cases share the fixed investment. The exact crossover must be recalculated with current local numbers. WSU Extension
Looking for a California Custom Crush Facility?
If you’re looking for a professional custom crush partner in California, Solera recommends Camarillo Custom Crush.
The facility has helped numerous wineries produce commercial wines and offers an experienced team capable of supporting wineries from their first vintage through ongoing production. A 2023 Visit Camarillo feature reported a portfolio spanning more than 130 brands and 250 to 300 wines, while the facility's current site identifies custom crush as an active service. Visit Camarillo Camarillo Custom Crush
Founder Kevin Nesgoda completed multiple harvests there while producing his own award-winning commercial Albariño, giving him firsthand experience with the operation and its people. The 2025 Orange County Fair Commercial Wine Competition award book lists Bodegas Colibri's 2021 Ruth's Garden Albariño as a Silver medal wine. The harvest-history statement is Kevin's disclosed firsthand account. OCWS award book
For wineries seeking an experienced California partner, Solera confidently recommends reaching out to:
This recommendation is based on firsthand experience rather than sponsorship.
Verification note: Camarillo Custom Crush's current home page identifies Shaun Frohn as its winemaker and lists custom crush service hours. Its custom-crush subpage also lists Shaun as the contact and describes a one-barrel minimum, but that subpage contains old "upcoming 2019 season" text. Confirm current capacity, pricing and contract terms directly before making a production commitment.
Your Winery Still Needs One Operating Record
Custom crush changes where production happens. It does not change the need to manage the winery from end to end.
You still have vineyard or grape-source information, production decisions, lab data, inventory, compliance work, bottling, customers, wine club, DTC and reporting. If those records live in separate spreadsheets, inboxes and portals, outsourcing the physical cellar can make the information problem more fragmented rather than less.
Solera provides one platform to manage the winery from vine to bottle to doorstep, whether the tanks are at a custom crush facility or in a building you own. It can remain the brand's operating system while the facility performs the physical production work and maintains the regulatory records that legally belong to the producer.
Related reading: Winery startup guide, winery compliance guides, winery inventory guide, TTB winery guide, and wine club guide.
Frequently Asked Questions About Custom Crush Wineries
1. Should I use a custom crush facility?
For many first-time commercial wine brands, yes. Custom crush converts much of the production infrastructure from a large upfront capital project into contracted production services. It also gives you access to working winery equipment and experienced cellar staff. The right choice depends on your volume, desired control, licensing structure, service contract, sales plan and long-term economics.
2. Can I start a winery without building a winery?
Yes. TTB recognizes both true custom crush and alternating proprietorships. In true custom crush, a bonded winery produces the wine for the client. Under an AP, each proprietor is independently qualified as a bonded winery while sharing approved premises and equipment. TTB
3. Is custom crush cheaper than owning a winery?
It is usually far less capital intensive at startup because the client does not buy the production building and core winery equipment. Whether it is cheaper over the full life of a mature winery depends on volume, service rates, labor, financing, land, utilities, maintenance and how highly the business values control of its production schedule.
4. How much does custom crush cost?
There is no universal rate. A 2025 industry presentation cited roughly $45 to $90 per case for small-volume North Coast crush-to-bottle services above 1,000 cases, excluding taxes, barrels, packaging and consulting winemaking. Facility, region, lot size, wine style, storage and protocol can change the quote substantially. 2025 industry benchmark
5. What is an alternating proprietor?
An AP is an independently qualified bonded winery operator that takes turns using shared winery premises and equipment. Each proprietor is responsible for its own production, records, TTB reports, labels and taxes. It is not the same as being a custom crush client. TTB
6. What is a bonded winery?
TTB uses bonded winery for bonded wine premises where wine is produced. The proprietor qualifies the premises and, when required, holds the appropriate Federal Basic Permit. "Bonded" is a regulatory status. It does not mean every small winery must currently post a surety bond because federal bond exemptions can apply. TTB
7. Can I make commercial wine through a custom crush facility?
Yes. TTB expressly recognizes custom crush production. The bonded winery produces the wine and the client can market the finished product when the required federal, state and local licenses and permits for the client's activities are in place. Production at someone else's facility does not make the finished product noncommercial.
8. Who gets the COLA in a custom crush arrangement?
The bottler gets any required Certificate of Label Approval. If the custom crush producer bottles the wine, the producer applies for the COLA, not the custom crush client. In an AP arrangement, the proprietor that bottles the wine is responsible for its COLA. TTB, June 2026
9. Do I need a federal permit as a custom crush client?
Often. TTB says a client engaging in wholesale-type marketing activities will generally need a Federal Wholesaler's Basic Permit. TTB identifies an exception when the client merely receives proceeds from sales made by the producing winery. Your exact activities control the answer. TTB W11
10. Does the custom crush facility handle TTB production reports?
In a true custom crush arrangement, the bonded producer handles winery production records and operational reports for the wine it produces. In an AP, each proprietor handles its own records and reports. Do not let a contract use "compliance included" without defining which model and which filings it means.
11. Do I still own my wine at a custom crush facility?
Commercial title and risk of loss should be stated in the contract. TTB's typical example says the client retains title to the grapes and wine is made to the client's specifications, but federal compliance responsibility still rests with the bonded producer and bottler. Do not confuse commercial ownership with regulatory responsibility.
12. Can I choose my own grapes?
Usually, yes, if the facility accepts the source and delivery plan. Some clients own vineyards, some contract with growers and some use sourcing help. The grape contract and custom crush agreement should line up on expected tonnage, harvest timing, delivery format, fruit condition and who has authority to call the pick.
13. How small can a custom crush lot be?
There is no universal minimum. Camarillo Custom Crush currently lists a 60-gallon, one-barrel minimum, while other California facilities list minimums in tons. Confirm minimum lot size, tank or fermenter fit and small-lot surcharges before committing fruit. Camarillo Custom Crush
14. Can I make the winemaking decisions?
You can often specify style and protocol, but the degree of control is contractual. A true custom crush producer remains responsible for lawful production on its bonded premises. Spell out decision authority for harvest, additions, fermentation, extraction, oak, blending, filtration, stabilization and bottling rather than assuming unlimited access or control.
15. Can I work in the cellar myself?
Do not assume you can. TTB distinguishes a customer directing business preferences from an AP independently conducting winery operations. Facility rules, worker safety, insurance, employment status and the approved regulatory structure matter. Put hands-on participation in writing and make sure it is consistent with the facility's approved operating model.
16. Are barrels included in custom crush pricing?
Sometimes, but often not. Published industry planning material specifically warns that barrels can be excluded from crush-to-bottle service estimates. Confirm who buys and owns barrels, cooperage specifications, new-versus-neutral oak, storage, topping, sanitation, loss, disposal and what happens to barrels when the contract ends.
17. Is bottling usually included?
It varies. Some facilities have onsite lines, some schedule bottling only on certain dates and some coordinate outside or mobile bottling. Confirm bottling labor, filtration, line setup, changeovers, glass, closures, labels, cartons, case storage, minimum runs and responsibility for the COLA.
18. Who pays federal wine excise tax?
For true custom crush, the wine premises that removes the wine from bond for consumption or sale is responsible for the federal excise tax. TTB states that custom crush clients receive wine after the federal tax has been paid. Contract pricing may pass that economic cost through to the client. TTB
19. What insurance should a custom crush brand carry?
There is no single universal package. Have a broker familiar with alcoholic beverages review product liability, commercial general liability, owned inventory or stock, transit or cargo exposure, recall exposure, DTC operations and any facility-required limits or additional-insured terms. The contract should also state risk of loss and indemnity.
20. What should a custom crush contract cover?
At minimum, define services, production protocol and decision rights, pricing and surcharges, payment timing, grape delivery, title and risk of loss, storage, barrels and dry goods, expected losses, lab work, compliance responsibilities, labels, bottling, insurance, confidentiality, termination, wine removal and dispute procedures.
21. How do I choose a custom crush partner?
Start with fit, not the lowest quote. Visit the facility, meet the people who will touch your wine, confirm capacity for your harvest window and lot size, inspect equipment and cellar organization, discuss sanitation and lab practices, review communication cadence and compare written scopes line by line.
22. What records should I keep if the facility handles federal production records?
Keep your own business and quality record even when the producer carries the federal winery record obligation. Track grape source, lot identity, work requests, lab results, additions, barrel assignments, volumes, losses, blending, bottling, finished inventory, costs, label versions and sales inventory. If you are an AP, those operational records also support your direct TTB obligations.
23. When should I build my own winery?
Build when sustained volume and strategy make the annualized cost of owned space, equipment, labor, utilities, maintenance, compliance and financing competitive with outsourced production, and when the value of schedule control, specialized equipment, hospitality or estate identity justifies the capital. Model the decision with your real quotes rather than a generic case threshold.
24. Can an existing winery use custom crush?
Yes. Existing wineries use outside facilities for overflow capacity, special equipment, geographic logistics, bottling, storage or experimental lots. The regulatory path depends on whether the wine is custom produced, transferred in bond between qualified premises or produced under an alternating arrangement.
25. Can a vineyard owner use custom crush to launch a brand?
Yes. TTB specifically contemplates a grape grower or other person with winemaking materials contracting with a bonded winery. The vineyard owner still needs the licensing, production contract, packaging, route to market and working capital required for its own activities.
Official Sources and References
Regulatory claims were checked against current TTB, eCFR and California ABC material. Cost examples are labeled separately from legal requirements.
- TTB, Wine FAQs. Custom crush duties and permit triggers. Accessed August 5, 2026.
- TTB, Federal Application Process for Wine. Winery, AP and custom crush comparison. Updated January 12, 2026.
- TTB Industry Circular 2008-4. Custom crush vs AP. Superseded tax-credit figures were not used.
- TTB, Top Tips from TTB Investigators. COLA responsibility. Updated June 25, 2026.
- 27 CFR Part 24 Subpart O. Winery records and reports. Current through August 3, 2026.
- TTB G 2023-14. Eligibility for annual wine tax returns and operations reports.
- TTB, Wine Labeling. Current wine labeling framework. Updated June 5, 2026.
- TTB Permits Online Tutorial, Wine. Current circumstances requiring a wine bond. Updated January 2, 2026.
- California ABC, License Types. Types 02, 17 and 20. Accessed August 5, 2026.
- California ABC, New License Application. Forms and zoning references. Accessed August 5, 2026.
- USDA NASS / California Department of Food and Agriculture, 2025 California Grape Crush Final Report. Released April 30, 2026.
- Washington State University Extension, Small Winery Investment and Operating Costs. Historical capital benchmark.
- BLS Historical CPI-U and current CPI-U. Purchasing-power illustration only.
- Sonoma County Winegrowers, Custom Crush Facilities marketplace. Current facility scale, service and price examples. Accessed August 5, 2026.
- Alison Crowe, "Custom Crush Curious? The Pros, Cons and Possible Pitfalls", February 21, 2025. Industry planning benchmarks for service, storage and bottling costs.
- Pacific Wine Services. Example of currently advertised custom crush service scope. Accessed August 5, 2026.
- Camarillo Custom Crush and Custom Crush Services. Contact and service details. Accessed August 5, 2026.
- Visit Camarillo, "How Camarillo Crushes California Wine", October 11, 2023. Secondary support for facility portfolio scale and Shaun Frohn's role.
- Orange County Wine Society, 2025 Commercial Wine Competition Award Book. Independent verification of the Silver medal for Bodegas Colibri's 2021 Ruth's Garden Albariño.
- UC Davis Continuing and Professional Education, Careers in Winemaking. Winery role and production-function context.
Scope, Disclaimer and Update Record
Scope: U.S. federal custom crush and alternating proprietor rules, with California examples. Other states can differ.
Disclaimer: This guide summarizes official information available as of August 5, 2026. Requirements vary by business, location and activity. Confirm material licensing, tax and filing decisions with the responsible authority or a qualified adviser. Contract and insurance checklists are educational guidance, not legal or insurance advice.
Change note: Version 1.0. The 2008 TTB circular supports the custom-crush/AP distinction, but its superseded tax-credit figures are not used. Current TTB guidance controls present-day label and qualification statements.
Next review: February 5, 2027, or after a material regulatory change.