Energy drinks, vitamin waters, infused waters, all New Age drinks, are the focus of attention of consumers, entrepreneurs and even investors.
I see many new companies and new products every day; and those are the ones who call me. Imagine everyone from around the world.
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 get into the “new age drinks”.
So what exactly are New Age drinks? Well, this is a new category within the beverage industry that covers the new style of beverages. This new “category” is growing and changing. Some time ago, you only found Red Bull, Monster, Rockstar, and maybe Vitaminwater as part of New Age Beverage. Now it has gone global and crazy.
Now the category has evolved and you can include improved water, tea, diet drinks, iced coffee, and actually any new beverage. All beverage companies want to be associated with the “New Age” category because not only is it sexier, but because the category is growing faster and investors are watching it closely.
You must realize that Vitamin Water is not the first company to make a lot of money for its brand. Every day beverage companies are financed and more are bought and sold to large companies. Many companies that you now think are market leaders started not long ago as start-ups.
Some of the companies you see on the news are Fuze, which sold to Coca Cola, Sobe, which sold to Pepsi Cola or Fiji Water, which also sold.
Other companies such as Reeds Beverage, Who’s Your Daddy, Jones Soda and Hensen with Monster Energy Drink access financing through public markets. These and many others are public companies listed on the New York Stock Exchange, the NASDAQ or the OTC (Over the Counter).
My company receives hundreds of calls from entrepreneurs and investment firms looking to start or invest in these beverages. Right now I have at least 100 people contacting me every month to find out about the industry, Energy Drinks, how to get distribution, how to export, how to bottle drinks or review 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 simple. Consumers are demanding more and more beverages. They want drinks for every occasion or part of the day. They want organic, sugary, healthy drinks and all kinds of drinks that suit their personality and style.
Entrepreneurs and investors are getting into New Age drinks because the demand is there and the profits are very high, very high. This is one of the characteristics that are shared, they all have high profit margins. How high are the margins? Well, you can get up to $ 24 of gross profit per case. Yes, this is for one case. Imagine selling just a truckload of drinks or about 1,600 cases with this profit. Now imagine selling a truck a week!
++ Some tips before starting your business: ++
-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).
-No promotion before distribution. Don’t fall into the trap of promoting energy drinks. Remember, you need to focus on your Distributor and Retailer Packages. Sell first, then take the product off the shelves.
-Learn your finances. Find out how much it takes to get started and sell your new drink before you go off producing 5,000 cases.
