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.
I’m seeing many new companies and new products every single day; and those are the ones that call me. Imagine all the ones all over 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 go into the “New Age Beverages”.
So what exactly are New Age Beverages? New Age Beverages is a new way of seeing “modern beverages” including functional beverages and fashionable drinks. 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 enhanced water, tea’s, diet drinks, iced coffee and really, any new drink. Every beverage company want’s to be associated with the “New Age” category because not just because it’s sexier but because the category is growing quicker and investors are looking at it up close.
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. Use the “big boys” as examples. Most of them started out with very small companies and a big idea.
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. I get hundreds of calls every month from Energy Drink or other beverage companies or just people wanting to start their beverage. 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. People now idendify with their drinks. They are fashion accesories, they are lifestile accesories. 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. Could you see selling truckloads and truckloads per month!
++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. Remember, you have to concentrate on your Distributor and Retail Packages. Sell first, then push product off the shelves.
-Learn your Financials. Figure out how much it takes to start and sell your new drink before you go and produce 5,000 cases.