Thanks again Atlantis5 and southeast entrepreneur. I can't tell you how encouraging it is to get a solid (rough) cost estimate. Once the product is manufactured, is the next step selling it to a distributor? Are distributors generally interested in new beverage products or are they hard to get / sell to?

In response to southeast entrepreneur's question: I'm in the beginning stages trying to figure out if and how I can afford to start up a soda company. I've been researching other companies too - I was just looking at the izze.com website - they made a good chunk of change riding the health food wagon with Wild Oats, Starbucks, and now Whole Foods is probably making them rich.

Is your website up yet Atlantis?

To Alondra: Thanks - I'll consider pomegranate as a flavor-

[ 03-08-2006, 03:05 PM: Message edited by: jessewaugh.com ]

I was wondering if anyone could give me any information about starting a beverage company from scratch. It would be greatly appreciated!

This is really helpful--- I'd like to start a bev company one of these days. my family has been in the food service industry for years and Im interested in getting further into scalable business models- i think bottling, distributing and marketing beverages is a great business!!

From what I seen and heard, its not that hard to start a company. BUT, how much is enough depends on what your trying to do. 250k will get you the product and some left over for operating cash. What about staffing up, marketing, deals to get into the selves, trade shows and all the other small things. Its all adds up. Then all of a sudden, you need to reproduce to keep going. Don't think your first loads will sell like hot cakes and you'll get paid right away because you need to give terms, beg for distributors to carry it or the product may sit at the production plant because you couldn't sell it as fast as you thought. Next thing you know "capital call time". The bank is what everybody looks for but you have to put up you house, car, kids for collateral. If your business fails? no money, no house, no wife. Not being negative but thats the truth. There are a few exceptions but most of the time, companies having good ideas need a good connection to get it going.

If anyone tells you 50K, 100K, 250k is enough, don't do it. You need at aleast enough to cover two-three solid years of being in the red. Just to be safe.
Take a look at the energy drink category-everyone who gets a few hundred grand starts one up. A year later? "CAPITAL CALL" and thats when they belly up. Lightning in a bottle can happen, but don't build a business looking for that. You need time and patience. Get alot of money to start but spend it like its your last.
Just my thoughts, I could be wrong but after seeing 15 companies do the same, it becomes a patern.

My advice to you is to be very careful. Unless you have some very deep pockets, patience and a tolerance for pain I advise that you start by being a distributor first, or a supplier of a beverage component.

Try to acquire distribution rights to a few known products that are not available in your area. Make sure your agreement is irrevocable so that it doesn’t get jerked back once you start making the product move off of the shelves. There are hundreds of companies in the market that are waiting for you to call to represent their product. Send me a message and I will tell you which ones are hot.

There are also bottlers out there that source glass, PET, caps, labels etc. Get to know this part of the game thoroughly. A high percentage of beverage production cost is in these items. Your expertise on these items will be a deciding factor in whether you make it or not.

I assume that you know business and the rigors of waiting to get paid, not getting paid, and discounting invoices to get paid. You had better be well versed in the payables department as well. When you pay your vendors and how you will pay them will be best figured out before you produce or purchase a bottle of beverage.

This is only advice. My experience is 20 years in the bottling business and nearly 10 in the transportation/trucking business. When you contact me, (and if you give a crap) I will tell you what I do now.

Modrink was correct when he said "If anyone tells you 50K, 100K, 250k is enough, don't do it. You need at least enough to cover two-three solid years of being in the red. Just to be safe."

Finally, taking on a partner or joining a company already trying it for themselves is perhaps not what an entrepreneur wants to hear. But, it won't take long to figure out the game once involved first hand.

Good stuff Depot7. Alot of folks don't realize how important getting paid is and how that can ruin your business.

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Originally Posted by macmike4142

I was wondering if anyone could give me any information about starting a beverage company from scratch. It would be greatly appreciated!

I can tell you the very first thing you need to do is invest in developing a differntiated brand. Set your partnerships, promotions & premium incentives in place before you manufacture. Critical error many bevpreneurs make.

Make it a diet one!