Key licensing issues when vineyards expand into hospitality

The UK wine sector continues its upward trajectory. Valued at approximately US$26.3 billion in 2024, the market is forecast to grow to US$36.3 billion by 2033, driven by increasing domestic production, supportive government initiatives and sustained consumer demand.

Wine plays a central role in British drinking habits, with around 67% of adults consuming it. A WSTA‑commissioned study found that the wine and spirits industry generated £76.3 billion in economic activity in 2022 and contributed £22.6 billion in gross value added. These figures underline not only the sector’s economic importance, but also the growing commercial potential for vineyards that diversify into hospitality‑led activities.

As more vineyards enhance their offering with tours, guided tastings and small‑scale events, it is essential to understand the regulatory and licensing framework that applies to selling and supplying alcohol to the public.

Alcohol production and wholesale supply

Vineyards producing or supplying wine commercially must have the correct HMRC authorisations. This includes approval under the Alcohol Wholesaler Registration Scheme (AWRS) for any wholesale supply to trade buyers.

HMRC expects businesses to maintain clear duty records, robust audit trails and effective internal controls. Non‑compliance can result in the refusal or withdrawal of approval, financial penalties and interruption to supply arrangements. For vineyards seeking to expand distribution alongside visitor experiences, early consideration of HMRC requirements is important.

Retail sales to visitors

Once wine is sold directly to consumers, whether by the bottle or as part of a tasting experience, a premises licence under the Licensing Act 2003 is required.

Key issues to consider include:

Licensable areas

The licence must clearly define where alcohol sales, tastings and consumption will take place. Vineyards offering outdoor tastings, trails or guided tours should ensure that these areas are accurately identified, rather than relying on informal or flexible layouts.

Operating schedule

Applicants must explain how they will promote the four licensing objectives: the prevention of crime and disorder, public safety, the prevention of public nuisance and the protection of children from harm. For vineyards, this often involves addressing noise management, visitor dispersal, safe movement around agricultural land and vehicle access in rural settings.

Conditions

Licensing authorities may impose conditions relating to permitted hours, capacity limits, noise control measures or supervision of outdoor spaces. These conditions should be practical, proportionate and aligned with how the vineyard operates in practice.

Alignment with planning

Licensing and planning regimes operate separately. It is therefore important to ensure that any planning permission in place authorises hospitality‑related uses such as tastings, retail sales, events or on‑site dining.

Tastings, tours and events

Vineyards diversifying into hospitality often introduce structured tastings, educational tours and seasonal events. These activities may raise additional licensing considerations.

Temporary Event Notices (TENs): Useful for occasional events but are limited in number and scale. They are therefore not suitable for routine hospitality operations.

Public nuisance considerations: Rural locations can still attract objections relating to noise, traffic, light pollution and increased footfall. These issues can influence the outcome of a premises licence application.

Food and safety compliance: If food is provided, separate food business registration and hygiene requirements apply.

The Birketts view

Licensing is not merely a procedural requirement but a strategic component of a vineyard’s diversification into hospitality. Ensuring the correct authorisations are in place reduces operational risk and enhances investor and customer confidence. The growth of the UK wine sector, evidenced by significant increases in economic output and domestic production, provides a strong commercial basis for diversification. However, vineyards must approach licensing proactively to avoid enforcement action, delays or limitations on trading.

For advice on licensing requirements or support with diversifying your vineyard operations, please contact Birketts’ specialist licensing team, which sits under our regulatory and corporate defence team.