Yep, you can ferment and consume beverages, but you can't sell them.
You can't "artificially" raise the alcohol content by distilling or "jacking" (freezing the water out of) a fermented beverage. Better not leave that beer in the freezer
I've heard that as a farmer it is possible to get a license to distill for off road fuel purposes, but I don't know anyone who has tried to obtain one.
Probably best to keep your mouth shut, the stills in the woods and the cider in the deep freezer...oops
Back OT, I would have to agree on the smoking thing. Too much nasty smoke out of the OWB. I like to use just a few handfulls of wet sawdust in my grill for smoking. Cherry and apple are my favorite.