1. (a) Use of brewery in production of beer or cereal beverage. A brewery may be used only for the following purposes involving the production of beer or cereal beverages:

   1. (1) For producing, packaging and storing beer, cereal beverages, vitamins, ice, malt, malt syrup, and other by-products of the brewing process, or soft drinks and other nonalcoholic beverages;
   2. (2) For processing spent grain, carbon dioxide, and yeast; and
   3. (3) For storing packages and supplies necessary or connected to brewery operations.

2. (b) Other authorized uses. A brewer may use a brewery for other purposes, not involving the production of beer or cereal beverage, upon approval from the appropriate TTB officer, if the purposes:

   1. (1) Require the use of by-products or waste from the production of beer;
   2. (2) Utilize buildings, rooms, areas, or equipment not fully employed in the production or packaging of beer;
   3. (3) Are reasonably necessary to realize the maximum benefit from the premises and equipment and reduce the overhead of the brewery;
   4. (4) Are in the public interest because of emergency conditions;
   5. (5) Involve experiments or research projects related to equipment, materials, processes, products, by-products, or waste of the brewery; or
   6. (6) Involve operation of a tavern on brewery premises in accordance with § 25.25.

3. (c) Application. Except as provided in § 25.25 for operation of a tavern on brewery premises, a brewer desiring to use a brewery for other purposes shall submit to the appropriate TTB officer , an application listing the purposes. The appropriate TTB officer will approve the application if the use for other purposes will not jeopardize the revenue or impede the effective administration of this part and is not contrary to specific provisions of law.

   (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-268, 53 FR 8628, Mar. 16, 1988]