Energy Drink Business: How to Start Energy Drink Manufacturing Business


energy drink
An energy drink is a non-alcoholic beverage that boosts the consumer. It is a caffeinated drink that provides physical and mental stimulation.
The drinks major ingredient includes caffeine, herbal mix and sugars. The addition of stimulants in energy drinks provides the beverages cognitive effect.
Despite its popularity the drink is associated with many health related risks.  Some notable effects of the drink is hyper activity, endurance and increased muscle strength.
However there is little scientific evidence alluding to the claim. Common reactions to the drink are nervousness, dyspepsia and headaches.
Other reactions include sleeplessness, abnormal heart beat, and frequent urination. Caffeinated energy drinks have a huge market and attract good prices.
There is a proliferation of different energy drinks in the market making the business highly competitive. To start your energy drink business you need adequate capital, permits and certification.
Major players in the energy drink business are soft drink manufacturers such as Pepsi and Coca Cola.
How to Start Energy Drink Manufacturing Business
Create a Competitive Drink.
The consumer is king in the energy drink market. Common ingredients in energy drinks are phosphoric acid, citric acid, fructose and vitamin B complex.
Other ingredients in the carbonated drink include caffeine, herbal extracts like ginseng. Taste is very important when producing a winning product.
There are many flavor to choose from such as orange, lemon, lime, berries, pineapple, grape fruit and citrus flavors. The sugar content should be delicately balanced between sweet and moderate.
The manufacturer needs to experiment and develop a good product.
Composition of Energy Drinks
The contain sugars, vitamin B2,B6,B3, B12, corn syrup, carbonated water, sodium and taurine. More ingredients are ginseng, riboflavin, sucralose and energy blend. The energy blend consists of the delicious Guarana, Glucuronolactone, glucose,maltodextrin and caffeine.
Age Group of Customers
Although both men and women indulge in a drink of energy products it attracts a certain age group. The age groups that are more likely to buy an energy drink are 17 to 35. College students and young adults consume about 60% of the market.
Regulations and Permits
There are strict regulations guiding the consumption, content and production of energy drinks. A few countries have banned the beverage because of health related concerns.
It is strictly prohibited to sell the drinks to minors or pregnant women. Many Muslim dominated countries have banned the drinks. Make sure the drink is allowed in your country before investing in the enterprise.
Marketing the Energy Drink
The manufacturer’s target young adults and women. The typical packaging is thin aluminum cans or bottles.
Major consumers are athletes, health conscious individuals, fitness and sports enthusiast. Manufacturers use colorful names, energetic advertisements to push the brand.
The four cardinal rules are clever marketing, brand recognition, memorable name and attractive packaging. You need too partner with other beverage distributors and develop a nationwide distribution network.
Financing the Business
The business is capital intensive therefore you need bank loans. Apply for bank loans and present your business plan and collateral.
You might have to come up with 1/3rd of the money before they execute the loan. Other sources to raise capital is finding a core investor or selling equity in your startup business.
The funds will go into purchasing equipment, leasing or buying a property. You need lots of fixed and working capital to run a successful non-alcoholic energy drink business.
Conclusion
Learn the manufacturing process and hire an expert in the business. The number of staff you need depends on the size and scope of your business.
 Don’t forget to write a business plan and carry out a feasibility study before launching the enterprise.
Make sure the cost price of the product is competitive and the quality high.  You need aggressive marketing strategy to compete with established brands.

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