The Hot New Companies are in Beverage: Learn about the new New Age Beverages including Energy Drinks
Posted: Thursday, June 28, 2007
by Jorge Olson
Distribution Business
Energy Drinks and New Age Beverages are the hot topics not only in products and sales or in the beverage industry but also in the Investment Community.
Many Energy Drinks and New Age Beverage companies are appearing every day and getting funded to launch their projects.
Vitamin Water sold for a few Billion dollars, 4.1 to be precise. Now everyone is jumping into the industry.1 Billion Dollars, individuals, investors and companies want to go into the "New Age Beverages".
You have to realize that Vitamin Water is not the first company to get big cash for their brand. There are beverage companies being funded every day, and more being bought and sold from large companies. Many companies that you now think as the market leaders started not long ago as start-ups.
You see many companies in the news being funded, many new entrepreneurs, investors, actors, signers, sports stars launching products.
Other companies like Reeds Beverage, Who's Your Daddy, Jones Soda and Hensen with Monster Energy Drink access funding through the public markets. These and many others are public companies traded in the New York Stock Exchange, the NASDAQ or the OTC (Over the Counter).
My company gets hundreds of call from business people and investment companies looking to eather start or invest in New Age Beverages. At the moment I have at least 100 people contacting me every month wanting to know about the New Age Beverage Industry, Energy Drinks, how to get distribution, how to export, how to bottle drinks or to go over business plans or other information. The industry is growing and the category is growing even faster.
Why are these drinks growing at 50% per year or more? Why do we see so many waters, energy drinks, hydrating products, etc. on the market today? The answer is easy. Consumers are demanding more and more drinks. They want drinks for every occasion or part of the day. They want organic drinks, sugary drinks, healthy drinks and every type of drink to fit their personality, and style.
Why is everyone going into this new segment? Simple, there is money to be made. This is one of the characteristics that are shared all New Age Beverages, they all have high profit margins. How high are the margins? Well, you can make up to $24 Gross Profit per case. Yes, this is for one case. Imagine selling just one truckload of beverages or around 1,600 cases with this profit. Now imagine selling a truck a week!
++Some advice before you start your venture:++
-Don't just focus on the drink, focus on the whole package (I get a lot of phone calls and emails telling me they have a better tasting drink than Rockstar, Red Bull and Monster Energy Drink).
Don't forget, get distribution first and promotion second. Don't fall into spending money with no sales. What is the No. mistake I hear Energy Drink companies make? Promotions before Distribution. Sales and Distribution are first.
-Learn your Financials. Figure out how much it takes to start and sell your new drink before you go and produce 5,000 cases.
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Learn how to Start your beverages with the help of the leading Beverage Consultant Jorge Olson. Don’t forget to subscribe to the Energy Drink Sales newsletter to find how to start your Energy Drink or Beverage from scratch.
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