Business Idea

Start A Beverage Company

About

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

market size
$1.68T
revenue (monthly)
$24.2K
starting costs
$43.8K
gross margin
54%
avg product price
$10
time to build
12 months
growth
Word of mouth
business model
E-Commerce
time investment
Full time
work from home?
Yes

About

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

market size
$1.68T
revenue (monthly)
$24.2K
starting costs
$43.8K
gross margin
54%
avg product price
$10

 

time to build
12 months
growth
Word of mouth
business model
E-Commerce
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $525 $5,500
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Retail Business Expenses $0 $16,150
Inventory Expenses $350 $14,750
Software Expenses $150 $3,044
Advertising & Marketing Costs $75 $4,786
Other Expenses $0 $800
Total Startup Costs $6,967 $80,680

Successful Businesses

Business URL Rank
Drizly drizly.com #8,898
Pathable pathable.co #25,784
BeerAdvocate beeradvocate.com #48,875
Red Lobster Seafood Restaurants redlobster.com #53,973
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
Homepage | Modern Times Beer moderntimesbeer.com #115,405
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

    Word of mouth

    The most tried and true way to grow a beverage company is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to beverage company.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜