Start A Beverage Company - Business Ideas

Start A Beverage Company - Business Ideas
Start A Beverage Company

Are you thinking of starting a beverage or drink business?

Starting a beverage company can be a great way to combine your love of food and drink with a passion for entrepreneurship.

Beverage companies can make all sorts of different drinks, from juice to soda to beer. They can also sell other types of food products, like bottled water or snacks.

There are more and more drink options available today than ever before—and that means that beverage companies are constantly trying new things in order to stay competitive in this space! The more innovative they can be with their offerings, the better they'll be able to compete with one another

Starting a beverage company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell beverages, or selling beverages online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a beverage company ➜

Key Stats

revenue (monthly)
$36.3K
starting costs
$34.8K
gross margin
54%
avg product price
$10
time to build
360 days
growth
Direct sales
business model
E-Commerce
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $151 $352
Website Costs $223 $7,215
Business Formation Fees $5,600 $20,400
Equipment & Supply Expenses $63 $200
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $4,786
Total Startup Costs $7,874 $69,447

Successful Businesses

Business URL Rank
Drizly drizly.com #8,898
The Coca-Cola Company https://www.coca-colacompany.com/ #34,979
BrüMate brumate.com #46,812
BeerAdvocate beeradvocate.com #48,875
More Beer morebeer.com #75,397
Craft Beer & Brewing beerandbrewing.com #108,628
Beer52 - Discover the Best Craft Beer Delivered to Your Door beer52.com #114,076
Beer Factory moderntimesbeer.com #115,405
RateBeer ratebeer.com #132,486
Drinkworks drinkworks.com #166,222
Brewers Association brewersassociation.org #177,077

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a beverage company. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your beverage company are typically around 54%, which is considerably high and allows you to grow your business and manage costs easily.
Easy to encourage "impulse buy" In the beverage company, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A beverage company can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
High employee turnover In the beverage company, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
High overhead expenses With starting a beverage company, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

Pat Walls,  Founder of Starter Story
Want to start your own business?

Hey! 👋I'm Pat Walls, the founder of Starter Story.

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