Is anyone aware of any helpful information on starting a beverage company?

r u from Atlanta?

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r u from Atlanta?

__________________
The Choice Is Yours!

I may be able to offer some insight, as I have recently started my own beverage company. Respond if you want to chat.

Thanks southern entrepreneur -
My first question would be about financing - let's say I want to start out as small as possible and build from there. Roughly how much capital do I need to start? Were you able to get a bank loan or did your money come from investors / personal?
Secondly, how much of the beginning process is outsourcable? i.e., can the entire manufacturing process take place in a third-party bottler's? Also, please let me know about your experience with distribution / distributors.

Southeast Entrepeneur~

Found your post interesting, as I recently started a beverage company in the southeast as well. Would love to hear more about a fellow Southerner who is in a similar situation as myself.

Jessewaugh/RSBell:

As an individual who has been in the food/beverage industry for over 5 years, I began my venture last summer with a fair yet still limited understanding of what I what I was entering into. I would definitely say that RESEARCH is key. I spent hours upon hours a week researching the entire industry for months, even though I was anxious to get everything off the ground.

Regarding the finance matters, it is very tough to say how much capital you will need, depending on your exact product/situation. Our company's line of products had to be developed by a manufacturer, yet I know of other entrepeneurs who were able to start a business with beverages they had produced themselves. Also, it is tough to get investors when you do not have a finished product, therefore the bank loan route would be ideal, of course family and friends often are very helpful in these situations. At the point that expansion is necessary, then is the time to go to investors.

Of course all this info is fairly condensed but hope it is helpful!

[ 02-16-2006, 02:14 PM: Message edited by: Atlantis5 ]

Thank Atlantis5!

When you write: "Our company's line of products had to be developed by a manufacturer" - does this entitle the manufacturer to part ownership or did you pay them for their aid in development? Did you or the manufacturer come up with the name, flavors, logo?

Also, it's very hard to get straight answers from people regarding a rough estimate as to how much it costs to start up. Obviously this is variable, but let's say I want to start as cheap as possible: $50,000, $150,000, $250,000?

Thanks again - do you have a website with images / info about your new product?

jessewaugh.com~

Once the formulation is complete, the product is ours. We have complete rights, the money we paid the manufacturer was to develop the formula. Our company developed our own name, logo, and flavors, and simply provided the manufacturer with our "vision" of the flavors/product as a whole. We had specifically chosen 5 flavors, and have been very descriptive in exactly how we see the final product. Formulation will conclude next month, and we already have a couple major southeastern promotions lined up for early spring/summer. Website will be up and running in a couple weeks, it's currently under construction, but will definitely get back to you when it is completed.

You should be able to start up for under 50k, considering you make cost-effective choices. Packaging and production is a major cost component as well, considering you may want to begin with a run of 10,000 + bottles/cans of your product, but these are of course choices you will have to make based on your product and marketing strategy.

Hi Atlantis and JesseWaugh.com....I found your entrys very interesting. Starting a new beverage is definately challenging. Like Atlantis said, a lot of research is involved. You must have a firm grasp on what you want your product to be and represent, as well as a knowledge of the industry and its trends.
JesseWaugh: I'm curious....what are your endeavors? Is your future product unique? What type of beverage are you envisioning? This distinction will help in your research. My business partner and I have spent hours researching other companies, competition, and the market in general. I am always excited to hear of others interested in this business.
Atlantis: I am also in the Southeast. Where are you located? and what type of beverage are you soon to be releasing?

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