Crafting is the final step of a three-part process to create usable items, after Gathering / Farms and Refining / Pastures. The great majority of equipment and consumable items in Albion Online are made via crafting.
Crafting is developed separately from both Gathering and Refining on the Destiny Board. In addition, Crafting is divided thoroughly into very specific specialties. Some crafting costs may be reduced by using Crafting Focus.
Alchemy is a skill/proficiency a craftsman can choose in the world of Albion. Alchemy entails the brewing of potions, as well as a variety of cooking ingredients. This skill is developed and trained at an Alchemist's Lab.
The crafting of potions & other various concoctions is unlocked through Farming, much like the cooking & breeding skills.
Potato Schnapps (Cooking ingredient)
Corn Hooch (Cooking ingredient)
Pumpkin Moonshine (Cooking ingredient)
Potions can be enchanted through the addition of Arcane Essences. The essence has to match the tier of the base potion in order to be able to enchant it. (e.g.: a tier 4 potion needs tier 4 essence to be enchanted, a tier 8 potion needs tier 8 arcane essence.)