The beverage business can make you the big bucks entering 2024. Did you know that the global beverage industry is expected to be worth over $2 trillion by 2025?
If you have always been interested in food and beverage companies, you might be wondering how you can become a part of this profitable industry. The good news is that anyone can create a successful drinks business with enough planning.
The challenge of creating a beverage company is taking on the big companies that already have shelf space, scale, and distribution like Coca-Cola, Pepsi, Molson Coors, Keurig Dr Pepper, Anbev, and Inbev. To have a chance at success with your beverage business, it really helps to have a beverage development company in your corner like SHFoodie https://shfoodie.com/drink-development/. They can give you the consulting guidance needed to take on big soda and other drink conglomerates for market share.
All that being said, there are steps you can take to build a successful drinks company. Are you ready to take the leap and start your own beverage company? Keep reading for 5 tips that will help your beverage business sales boom in your drinks startup biz.
5 Steps To Starting A Drink Company
1. Make Plans to Fund Your Product
The most important step in figuring out how to start a beverage company is creating a business plan that will keep you afloat during the first few years where you won't see any profits. It is important to identify all of your startup costs, such as a drink canning machine, the price of ingredients, shipping, and more. Once you have an estimate, you can plan how you will fund your product.
2. Consider Different Beverage Niches
Starting a beverage company is a lot easier when you know who your target customer is. Do you want to create a product that will help give people energy, cater to specific lifestyles, or create a wide range for every palate? Are you only making water, sparkling beverages, sodas, coffees, teas, or smoothies?
The more niche your drinks startup product is, the more potential success you could have, but the narrower your market gets. Weigh the pros and cons of how wide or narrow your beverage company niche will be.
3. Weigh Options for Ingredients and Costs
Lots of the largest beverage companies have mastered how to source the cheapest ingredients to hike up their profits. However, you don't have to follow this exact business model. One way your company can stand out is by sourcing the finest ingredients for more mindful consumers, such as people who buy organic, avoid GMOs, or are plant-based.
You need to consider all ingredients and processes involved with creating beverages to be a successful drinks company. You will need to invest in labels, co2 canisters, filtered water, flavoring, bottles, cans, caps, and much more. You need to stay on budget for your beverage startup without cutting corners on quality, or that will cost you even more in the long term.
Once you know how much it will cost to produce your product, you can figure out what a fair price is that will guarantee long-term profits for your beverage business.
4. Create Your Unique Brand
In order to thrive as an independent beverage company, you need to make sure your brand is memorable. Your brand is an umbrella term for your company name, logo, packaging, and more. Not only does unique branding lead to more repeat customers, but you will also be able to entice new shoppers to give you a try. Build your brand in-store and online as well to deliver with your drinking startup.
5. Secure Your Beverage Distribution
Another important step for your business is to solve how you can get your product on more shelves. To do this, you will have to negotiate with different distribution companies (including other big beverage businesses) and choose one that you believe will get you the greatest returns. It is important to consider if you want to test your local market or take your company nationwide to compete with other big names in the beverages space.
Starting a Beverage Company Isn't as Hard as You May Think
Investing in your own drinks business can be intimidating, but anyone can thrive with enough research and planning. If you follow this guide, you'll be able to get your beverage company off the ground in no time.
