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Start-up Beverage Company

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  • Start-up Beverage Company

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

  • #2
    r u from Atlanta?
    The Choice Is Yours!


    • #3
      r u from Atlanta?
      The Choice Is Yours!


      • #4
        I may be able to offer some insight, as I have recently started my own beverage company. Respond if you want to chat.


        • #5
          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.


          • #6
            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.


            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 ]


            • #7
              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?


              • #8

                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.


                • #9
                  Hi Atlantis and 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?


                  • #10
                    Dear Sirs!
                    We would like to introduce our company as a manufacturer of pomegranate products. We produce - 100% natural pomegranate juice, 65 Brix pomegranate concentrate and pomegranate sauce.
                    POMEGRANATE JUICE
                    Our juice is fresh squeezed, not from concentrate, no sugar added, no flavors and pasteurized juice in a glass bottle. Our natural pomegranate juice is enriched with antioxidants called polyphenols, which is big benefit for health. We bottle this great product to 330 ml and 1.0 L glass bottles.
                    Our concentrate has the best characteristics: 65 Brix, acidity 7.5%, frozen in 250 kg steel drum in aseptic bag. The concentrate is made from integral pomegranate fruit without using of any preservatives or other additives (colors or flavours) and can be used in juice manufacturing and manufacturing of medicines.
                    One more of our product is pomegranate sauce. Great product for using with meat, fish, pasta as salad dressing.
                    We have good experience with exporting goods to the USA, Canada, Israel, France, Germany.

                    More information about our products you can find on our website

                    We value personality and can make all products under your own trademark with your private label.
                    Waiting for your fast response and hope to cooperate.
                    Please, consider our offer and let us know of your decision.

                    Export Manager
                    Aynur Nasrullayeva
                    ANCO INDUSTRIES
                    Basti Bagirova str. block 615,
                    Kermur Plaza 2nd floor, AZ 1000
                    Baku Azerbaijan
                    Direct Phone: (+99450) 6738883
                    Fax: (+99412) 4367047


                    • #11
                      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 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: ]


                      • #12
                        new to the beverage game!

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


                        • #13
                          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!!


                          • #14
                            Starting a beverage company

                            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.


                            • #15
                              Start ups are Risky

                              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.