Former state prison to be holding a feature of alcohol production (8)
I believe the answer is:
bastille
'former state prison' is the definition.
'bastille' can be an answer for 'prison' (I've seen this before). I'm not sure about the 'former state' bit.
'be holding a feature of alcohol production' is the wordplay.
'holding' is an insertion indicator.
'feature of alcohol production' becomes 'still' (I am not sure about this - if you are sure you should believe this answer much more).
'a'+'still'='astill'
'be' enclosing 'astill' is 'BASTILLE'.
'to' acts as a link.
Can you help me to learn more?
(Other definitions for bastille that I've seen before include "Former Parisian prison" , "Old fortress" , "Fortress in Paris" , "Prison in Paris demolished in the Revolution" , "Parisian prison stormed on July fourteenth, seventeen eighty-nine" .)