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View Full Version : How much in start up $$$ would you need....



lildaddy
01-17-2005, 02:15 PM
Hello everyone,

I am wondering what kind of start up capital would one need to manufacture and market and energy drink. The reason I am asking is with the amount of energy drinks on the market today it seems every joe blow can put out a drink. If I wanted to make an impact regionally at first what would you suggest. As much searching as I have done, you guys and gals have the most knowledge and understanding of the industry. I worked for Pepsi for 7 years so I am not blind to the way the industry works.

I look forward to hearing what you have to say...

lildaddy
01-19-2005, 11:13 AM
Man, I guess I was hoping for a little better response than this. Has anyone on this board put an energy drink on the market or does everyone just distribute them.

I am trying to do a marketing project, and thought this would be a viable source for information.

Startup Dude
01-19-2005, 06:24 PM
Your question is very vague.

My vague answer: from $500 to $5 million.

lildaddy
01-19-2005, 07:41 PM
I am sorry, I you are right.

Would anyone happen to know what it took Rockstar to start up. One could have a decent soft launch with 1-2 million capital.

What do you think the next generation of energy drinks is going to offer the consumers... What are people looking for

Christian Prickett
01-20-2005, 08:46 AM
I figure this much. One could spend nearly $20,000 on bottles to make a 2 chaber private mold in PET, you could save money using a stock bottle or can, but to make your own PET bottle, your looking at around $20,000 and that is not considering the run of 50,000 bottles, the minimum ammount that any blow molding company would want to run a mold, and that's a low ammount. Some companies want 100,000 piece run to put your mold on their machine. A private mold in glass would run you about $50,000 and couldn't be as unique, but it would be glass, not plastic.

Next is the acutal formula. I can cook, but I've never made a unique formula. I figure to make a large batch of a drink you could spend anywhere from $5,000 to $50,000 on supplies, machines to mix in, and to rent time at a filler.

All in all, I see a low estimate of $100,000 for a small run of 240,000 ounces (20,000 twelve ounce bottles), and at that cost you would loose money on your first run. You also would need to find places that would agree to sell your product. Some of the bigger companies take up all the shelf space so you would have to supply your own coolers, (more $$$ you have to spend.) To be safe and actually make yourself a profit, I'd suggest $500,000 before you see a return.

lildaddy
01-20-2005, 10:37 AM
Christian,

thank you very much for all of your detailed information. It was very helpful. The package I was thinking about using is the 8oz aluminum can with a twist cap. I would imagine that would be a little more costly. I am figuring to make a strong run I would need about 1-1.5 million.

antenna_ball
01-22-2005, 07:39 AM
Your competition is quite tough you have to compete with 35 to 50 other brands. I know you want alot of money and you eyes are glazed over with dollar signs, but you might be a little to late as whenever something is hot!!!!, the hords and flocks of greedy CEO's overtake it.

lildaddy
01-22-2005, 10:55 PM
Yeah, I am not saying it would be a cake walk but the reasoning behind the $ figure so high. Most of these energy drinks that are not a part of some large corp it seems that they try to do it with the least amount of money possible, understandable. The problem I see is that they make one huge push on the rollout and kinda blow there wad, and dont have anything to reinforce there product.

Say I could do it for less than 500K great, more money for advertising, marketing, product placement and be able to do events and other things like that. At least that way you wont be out of money waiting on revenue to push the product forward.

Then I think a controled and specified soft launch is the best way, Use the markets you have connections in. After all this is the beverage industry no one gets rich overnight. Sh*t I work for Pepsi and see how the run there organization.

marshall
01-26-2005, 10:31 PM
Cost of production is one thing. But remember people have to be informed about a product, so do not over look the cost of promotion.