Start A Cocktail Ingredient Business - Business Ideas

Updated: September 15th, 2022
Start A Cocktail Ingredient Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

A cocktail ingredient business is a profitable venture that focuses on sourcing, manufacturing, and supplying high-quality ingredients used in creating cocktails.

This business caters to bars, restaurants, and home enthusiasts by providing them with a diverse range of essential elements like syrups, bitters, garnishes, and mixers.

By offering premium and unique ingredients, a cocktail ingredient business taps into the growing trend of mixology, which aims to enhance the overall drinking experience by providing consumers with a wide range of flavors.

This lucrative business opportunity capitalizes on the increasing demand for craft cocktails, allowing entrepreneurs to provide their customers with premium and distinctive flavors that elevate their cocktail creations.

Starting a cocktail ingredient business requires a great deal of effort, dedication, and most importantly passion.

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

Key Stats

revenue (monthly)
$45K
starting costs
$53.8K
gross margin
70%
avg product price
$30
time to build
240 days
growth
Email marketing
business model
E-Commerce
time investment
Side project

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

$66

$700

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Food Business Expenses

$2,425

$37,400

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$75

$4,786

Total Startup Costs

$10,302

$107,347

Successful Businesses

Business URL Rank

VinePair

vinepair.com

32,731

BigOven

bigoven.com

80,950

Bartesian

bartesian.com

192,655

Bar Supplies

barsupplies.com

316,758

Cocktail Builder

cocktailbuilder.com

385,753

Uncle Nearest Premium Whiskey

unclenearest.com

387,705

A Bar Above

abarabove.com

420,221

WithCo Cocktails

withcococktails.com

443,016

Ingredion Incorporated

ingredion.com

445,043

Buzzballz

buzzballz.com

490,287

Darling Ingredients

darlingii.com

559,297

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 cocktail ingredient business. 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 cocktail ingredient business are typically around 70%, which is considerably high and allows you to grow your business and manage costs easily.

Unlimited income potential

With starting a cocktail ingredient business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

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.

High employee turnover

In the cocktail ingredient business, 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.

Taxes

As a cocktail ingredient business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

High overhead expenses

With starting a cocktail ingredient business, 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

Marketing Ideas

  • 1

    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.

    Learn more about direct sales ➜

  • 2

    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.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜