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How to Write a Winning Cocktail Bar Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be beneficial for cocktail bar s who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the critical elements that every cocktail bar business owner should include in their business plan.

Download the Ultimate Bar Business Plan Template

What is a cocktail bar business plan.

A cocktail bar business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Cocktail Bar Business Plan?

A cocktail bar business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Cocktail Bar Business Plan

The following are the critical components of a successful cocktail bar business plan:

Executive Summary

The executive summary of a cocktail bar business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your cocktail bar  
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company began and provide a timeline of milestones your company has achieved.

You may not have a long company history if you are just starting your cocktail bar. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your cocktail bar company, mention this.

You will also include information about your chosen cocktail bar business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a cocktail bar business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the cocktail bar industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a cocktail bar business’ customers may include:

• People who live or work near the bar
• People who frequent the area where the bar is located
• People who are looking for a specific type of bar (e.g., a sports bar, dive bar, etc.)
• Business professionals

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or cocktail bar services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your cocktail offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your cocktails and any food items, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your bar business via word-of-mouth marketing or by hosting events.

Operations Plan

This part of your cocktail bar business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a cocktail bar include reaching $X in sales. Other examples include increasing the number of regular customers by a certain amount or adding new menu items.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific cocktail bar industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Cocktail Bar

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Cocktail Bar

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup cocktail bar .

Sample Cash Flow Statement for a Startup Cocktail Bar  

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your cocktail bar . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written cocktail bar business plan is a must for any new business owner. It’s a great tool for attracting investors and keeping the company focused.  

Finish Your Cocktail Bar Business Plan in 1 Day!

How to Start a Cocktail Bar: 6 Keys to Building a Business

Whether you’re a budding bar owner or someone who is curious about cocktail bars, you may be thinking about how to start a cocktail bar-similar to an old-fashioned speakeasy . Opening up a bar takes a lot of work, cocktail or not. The process of how to open a bar includes:

• Creating a business plan and learning how much do bars make
• Finding a location
• Raising funds (the cost to open a bar is high, it includes the bar manager salary )
• Choosing a theme and bar equipment layout

… and much more! Luckily, there are plenty of resources available, from the best bar books to guides on bar planning. 

Outside of opening a cocktail bar for commercial use, you may be interested in how to make a home cocktail bar to make use of your many collected types of rum . That’s a far easier endeavor, with fewer steps and more personal choices. 

You may be looking to open a cocktail bar to bring in customers. You may just want to create a cocktail space in your own home to enjoy some vegan drinks , gluten-free cocktails , or regular drinks with alcohol and tonic water . Either way, there’s a lot to learn about creating a spot for cocktail fans.

Knowing how to start a cocktail bar goes beyond great cocktail recipes and garnishes to stock up on. It's about so much more than knowing your cocktail ingredients . It may seem daunting at first, but with this guide, you’ll be entertaining your guests of choice in no time.

Opening Up A Bar

There are many aspects of how to start a cocktail bar that are part of how to open up a bar in general. We have several guides and templates to help you open up a bar, including a how to open a bar checklist and a bar inventory spreadsheet . Within those resources, you’ll find the ultimate guide to everything you need as you open up your own cocktail bar. 

For now, we’ll give you a full list of everything you’ll need. Your cocktail bar opening checklist includes:

• A bar business plan
• A location that suits your bar plan
• A liquor license–whichever one(s) you may need
• A funding plan
• A hiring plan
• Inventory–and a bar inventory app (or even a barcode scanner app for inventory )
• A budget and accounting overview
• A marketing plan
• POS software
• A bar design plan
• A plan for how to price your food menu

Depending on your location and your exact bar plan, there will be other things you need to consider. You can do research for your own location by visiting the site of The Alcohol and Tobacco Tax and Trade Bureau (TTB). The TTB is a good place to learn about rules and regulations surrounding alcohol sales and service.

How to Make A Home Cocktail Bar

If your plan for opening up a bar is only for personal enjoyment, you’ll find the road ahead to be much simpler. The question of how to make a home cocktail bar can be as elaborate or as simple as you like. You can make your home cocktail bar feel like a true cocktail lounge, with:

• Soft lighting
• Decked-out bar design
• Booth seating

You could also go for a simple home bar setup that just happens to be your own cocktail space. For either a simple home bar or something a bit fancier, the items you’ll need are:

• A bar cart, shelving, or display cabinets
• Drink mixing tools, like a shaker, jigger, and a variety of glassware
• Liquor options, including the basics for most cocktails, and any liquors you personally love
• Garnishes for your favorite drinks, plus bar snacks 
• Great cocktail books to mix up new drinks whenever you want something different
• Seating options, with room to spare for any home-bar patrons you may have

Creating a home cocktail bar gives you all the fun of designing a bar without the work of opening a bar as a business. 

4 Things Every Cocktail Bar Needs

A lot of what goes into opening up a bar is the same for any bar–cocktail or otherwise. The specifics of a cocktail bar are less about the business aspect and more about the aesthetics of the bar. Any bar can serve cocktails, but the term cocktail bar generally refers to a place that has an atmosphere of cozy sophistication. Of course, for a cocktail bar you’ll need everything you need for any bar, but here are your specific needs:

• Bartenders who know how to mix up some great drinks
• Some of the best cocktail recipe books of all time, to help your bartenders learn even more
• A bar equipment layout and design plan that suits the mood
• A prominently displayed liquor collection

If you can strike the balance between a practical bar and a space that embodies everything people love about cocktails, you have done well. An extra tip is, a lot of cocktail bars do well with a menu fitting the a la carte meaning , as individual bites go well with drinks.

The Best Cocktail Bars

If you’re looking for inspiration on how to set up your cocktail bar, you can always look to current successful cocktail bars. There are several cocktail bars across the world, taking numerous actions to stand out and draw in the crowds.

While this competition is daunting for new bar owners, it’s also helpful. While you may have plenty of ideas on what you want for your bar design, it never hurts to see what others are up to. 

There are cocktail bars out there covering a range of options. The question “What is a cocktail bar?” generally conjures up images of a smoky lounge. That said, a cocktail bar can be any type of bar. You can search for inspiration in:

• Themed bars
• Live music bars
• Nostalgia bars

You can also draw from your favorite bars, or look into the best bars in the country to see what is already working. When it comes to finding inspiration for your cocktail bar, the list is endless.

The Best Cocktail Bars NYC

New York City is a good place to start looking at the most diverse cocktail bars. The bar scene in New York is often in flux, as new places open and marketing approaches change old spots. Eater NY took a look at the best cocktail bars NYC has to offer for 2022, and their list stands as follows:

• Bar Chrystie
• Philomena's
• Sunken Harbor Club
• All Night Skate
• El Pingüino

If you live in New York, you may have your own locations to add to that list. Overall, the list shows that there are plenty of options for inspiration out in the Big Apple.

Cocktail Bars Chicago

New York is consistently hailed as a place with everything you could want when it comes to places to visit. However, there are lots of interesting spots in the US that offer just as much diversity in cocktail bars.

One such place is Chicago. Chicago is known for its variety of places and people, and that is reflected in the Chicago cocktail bar scene. Eater Chicago has their own list of the best cocktail bars in the Windy City. That list includes:

• Billy Sunday
• Todos Santos
• The Whistler
• Weegee's Lounge
• The Violet Hour
• Sportsman's Club
• The Matchbox
• The Drifter
• Sable Kitchen & Bar
• Three Dots and a Dash

This list of Chicago’s best cocktail spots showcases the personality you find on the streets of Chicago. When it comes to your own cocktail bar, it’s a good idea to consider the personality of your location.

From there you can choose some bar design elements that suit your city. Your theme can be based on the history of your city, or on small design details that only locals would notice. Whatever you choose, showing some locational personality will suit any cocktail bar. 

Frequently Asked Questions About How to Start A Cocktail Bar

Starting a bar is a lot of work in general, and that applies to cocktail bars as well. A lot of what you need to know has already been answered in this article, but you may have more questions. A few commonly asked questions include:

What Makes A Cocktail Bar?

A cocktail bar is made great by excellent customer service, great cocktails for a great price, and a cozy atmosphere. Excellent customer service includes the standard for customer service, as well as bartenders who are knowledgeable about cocktails.

Great cocktails for a great price? That’s an easy one. That said, make sure you invest in your cocktail development at the beginning to impress patrons right off the bat.

A cozy atmosphere is the best feeling for a cocktail bar. It makes people want to hang out and have a few drinks in a comfortable environment. Creating a great bar layout should be one of your top priorities.

What Equipment Do You Need for A Cocktail Bar?

The equipment you need for a cocktail bar includes drink-making equipment and general bar tools. We have a free bar equipment list that tells you everything you need for a good bar. Some of the basic needs specific to a cocktail bar are:

• Glassware for the cocktails you serve
• Drink-making equipment, like shakers, jiggers, and cocktail spoons
• Garnish trays and items like toothpicks and tiny umbrellas

Our bar equipment list includes the rest of the items you should obtain. 

How Profitable Is Owning A Bar?

Owning a bar is profitable, as the average gross profit margin for a bar is between 70 and 80%. When people start to plan their bar, one of the most common questions asked is “ Are bars profitable ?” The answer is yes.

The potential to make money on alcohol sales is huge. This is because the cost of liquor for a bar is so low compared to the average cost of a drink. On average, the annual profit of a bar comes out to about $39,600 after all costs have been factored in. Of course, there are always ways to increase bar profits beyond drink sales.

How to Start a Cocktail Bar: Time To Put The Lime In The Coconut

Now you know how to start a cocktail bar, but there will always be more to learn as you open and operate your bar. From learning about well liquor to mastering popular cocktail names , come back to the BinWise blog whenever you find yourself needing to learn more. Don't forget to spend some time studying up on great bartender cover letter options, as hiring great staff should be top of mind as well.

Working With An Alcohol Distributor: A Beginner's Guide

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Creating a successful beverage business involves more than a great idea. The reality is you'll need a few key partners to bring your dream drink to the masses.

You've worked with a beverage developer to create your custom formulation, secured your ingredients and packaging, and found a manufacturer to produce your drink-the next step is mapping out your route to market. So, how do you get there?

Whether you've got an alcoholic or non-alcoholic product, you'll want to find a distributor. Distributors are partners that help brands connect and sell their products to the right retailers-that's everyone from convenience and grocery stores to restaurants and bars.

Though each has their relevance in the beverage industry, not every distributor is the same. Finding the right distributor means understanding the distribution landscape, knowing what to look for, and how to set yourself up for success.

In this guide, we'll explore the nuances involved in working with an alcohol distributor, specifically. Alcohol distribution is a complex and highly regulated space, so we hope that this expert piece gives you a head start in working through some of the many considerations involved in launching an alcohol product.

Understanding Distribution: What Is It?

Distribution is all about relationships. From a topline view, a distributor (or wholesaler) serves as an extension of the sales arm of beverage brands (called suppliers). When a partnership agreement is reached between a supplier and wholesaler, the distributor takes on the responsibility of introducing and selling products to retailers. At the same time, a wholesaler works with the supplier to build a brand consumers return to time and time again.

In addition to being a steward of the brand, a distributor serves as tax collector for the supplier side and pays state and local taxes on behalf of the brands they represent. This frees up the supplier from the role of ensuring the tax code is met in each specific state and locality in which their product is served.

Beyond that, large distributors like RNDC can also act as a full-scale resource to their supplier partners-this is where the brand-building element comes in. It's in a distributor's best interests to consult with suppliers on sales, marketing, and strategic planning and provide support to help them be successful.

Alcohol Vs. Non-Alcohol Wholesalers

The simplest way to summarize the differences between an alcohol and non-alcohol distributor is the product. But naturally, there are several associated legal limitations that go along with distributing alcohol versus non-alcohol products.

For one, alcohol distributors experience a degree of federal oversight that non-alcohol wholesalers aren't necessarily subjected to. Unlike non-alcohol distributors, federal oversight of alcohol wholesalers extends beyond the product development phase, affecting everything from funding and label creation to compliance within the nuances of state and local laws.

Another key difference based on the nature of the product is that non-alcohol distributors can serve most retailers, whereas an alcohol distributor can only sell to licensed premises. Of course, many alcohol wholesalers also carry a number of non-alcohol brands whose intention is to be sold with alcohol. This can be beneficial for cross-merchandising and planning programs for retailers to carry multiple complementary products from a distributor's portfolio.

Contacting An Alcohol Distributor

If you're reading this, you're either exploring the possibility of launching a beverage company or you're in the midst of developing your drink and brand-when should you contact an alcohol distributor?

Well, when you're ready.

Depending on who you ask, this can be defined in a few different ways; at the very least, you'll want to have a crystalized concept and viable business plan. A wholesaler needs to understand enough to be able to see how they would take your product to market and be successful doing so.

A supplier might feel ready to have these conversations as early as two years prior to releasing the product, or in as little as several months leading up to a launch. What matters isn't necessarily when the conversation happens, but whether the supplier is prepared.

First impressions are everything. The reality is that a distributor and supplier's first meeting together is the pitch. It's the interview where both parties have the opportunity to sell one another on why they would make great partners.

Acing Your First Alcohol Distributor Meeting

Okay, you've determined that you're officially ready to meet with a potential alcohol distributor-what should you bring with you?

This is a wholesaler's first experience with you and your brand, so you should bring a presentation. Make sure to include answers to questions like,

• What's your backstory?
• What got you involved in the brand? What's going to keep you involved in the brand?
• What is your brand vision and values?
• What plans or innovations do you have for future growth?
• And of course, what is your product and what makes it unique? How does your product fit in the market?

Remember-distribution is all about relationships. A wholesaler wants to know as much about you as they do about your brand and product. You are who they will be working with, and they want to make sure that you will be a good fit in a partnership-that everyone's values and expectations are in alignment so both parties can be successful.

In addition to a presentation, it goes without saying that you should have samples, as well as the spec sheets for your product. A distributor should be able to experience your brand the same way a retailer or consumer would. Give them the opportunity to taste, touch, and see it-to use all of their senses to fully understand the product and your brand.

As a wholesaler assesses your product, they will also be determining its quality and quality-price ratios, in addition to benchmarking it against other products in their portfolio to determine whether it makes sense for the relationship. Keep this in mind as you prepare your presentation-your craft gin isn't just another gin, so, prove it. Leverage your story.

Picking The Right Alcohol Distributor

Wow, you've impressed your distributor. That's wonderful! Now, how do you determine that they are the right fit for you, too? There are three main elements that can help you make a decision.

First of all, find out if they are relevant in the market-specifically, your market. Go to your desired retailers and ask around. Find out who they enjoy working with and why. After all, you should want to partner with the distributor that retailers want to work with. That's already an easy way to set yourself up for success.

Second is route-to-market strategy. This is a primary responsibility of your alcohol distributor, so naturally, you'll want to make sure your expectations are in alignment. Are they receptive to the direction you've envisioned for your brand? What can they contribute to bringing that vision to reality?

A distributor should both be willing to work with you on where you want to go with the brand and be equipped with the resources and relationships necessary to do so. Not every brand makes sense for every distributor, and that's okay.

This third consideration goes back to understanding the distribution process. A great wholesaler manages to balance multiple brands within the same category and avoid conflicts of interest. It's a juggling act, but there is a place for most viable brands in the market.

That being said, while a retail establishment often has more space on the shelf for a given category, a bar or restaurant may be limited in that same real estate. Knowing what competitive products an alcohol distributor carries can help you determine how often your product might be put aside in favor of another, competing product in those circumstances.

Building A Successful Partnership

A relationship between a wholesaler and a supplier is like a marriage-it's a true partnership. This is also why setting expectations together is an important part of building a successful relationship.

An alcohol distributor is there primarily to break down a supplier's barriers to market. Often that involves working with each retailer and assessing what makes sense for them to carry, providing good data for them around a product, and helping them successfully build a product into their store.

On the supplier's side, a great partner is expected to be engaged with their distributor. That means picking up a phone and checking in, planning business together, walking through marketing strategies, and utilizing the wholesaler's resource teams. It also means having reviews to follow up and ensure plans are coming to fruition as expected.

RNDC utilizes a "work-with" schedule, where suppliers have the opportunity to venture into the market to present that product with the sales team to retailers and customers. Not only does this educate the sales team, but it also creates a personal relationship between the supplier and retailer. This is incredibly valuable because the best suppliers are those that are engaged with their market and their wholesaler relationships. 

Beyond engaging with a distributor so they can be effective stewards of the product to retailers, a supplier is responsible for the consumer side of brand building. As a supplier, you should know the answers to questions like,

• How do you plan to market your product and brand?
• What kind of digital presence will you have? What about events? Where else can you reach your target consumer?
• How will you drive people to the store to buy your product?

Once a product has been placed with a retailer, how do you make sure consumers know that, or even care to seek it out? That's your job, as the supplier.

Of course, passion for your dream is what got you into this industry, so sharing your story with the world should come as second nature. While the other aspects of creating a beverage may be a challenge, the good news is that you don't have to do it alone. Take the time to educate yourself and find the right partners, and you'll discover the flavor of success-your drink.

When you're ready to talk about developing your beverage idea with Flavorman, fill out  this web form  or give us a call at (502) 273-5214. Let's change what the world is drinking, together. If you want to learn more about RNDC, visit rndc-usa.com .

About Republic National Distributing Company (RNDC): RNDC is one of the nation's leading wholesale beverage alcohol distributors, specializing in wine and spirits. RNDC serves as a brand-building and product expert liaison between suppliers and those who sell or serve alcoholic beverages. Customer service, product expertise, and executional excellence are the hallmarks of RNDC's enduring success. Visit rndc-usa.com to learn more.

About Casey Cline: Casey Cline is the Division Manager over the Portfolio Management Team at Republic National Distributing Company, Kentucky. He has served with RNDC for 15 years, managing each element of the business, including off- and on-premise sales. He now manages all brand teams.

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How to start a beverage business

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Fever Tree, Brewdog, Innocent Smoothies – the UK beverage market has seen its fair share of disruptors and innovative brands emerge in recent years – and it’s big business.

But the jury is still out on whether the sector’s glass is half full of half empty. Inflationary pressures, and incoming tax changes , for food and beverage (F&B) manufacturers continue to intensify. Prices of food and non-alcoholic beverages rose by 10.1% in the year to October 2023 according to the latest Consumer Prices Index (CPI).

Opportunities for niche markets definitely exist, however. The trend for non-alcoholic drinks have helped to prop up dwindling manufacturing figures, while the push for healthier products feeds consumer demand for low-cal, sugar free drinks.

Clearly there is space on the shelf for your own brand of drink to sit alongside the above names. But it will take some careful planning to launch a beverage line. From sourcing the right ingredients at competitive costs, to nailing that all-important branding and setting up stocking agreements with bars and supermarkets, there’s a huge amount to consider.

This guide is here to help, answering common questions and hearing from those who’ve trod the path before, to help you understand all you need to know.

Things to think about when starting a drinks business are:

• Opportunities and inspiration
• Business plan
• Rules and regulations
• Potential earnings
• Industry contacts

What drinks business opportunities are there?

The UK beverage market has plenty of established players but that’s not to say that it’s immune to innovation and change, which is why there’s a great opportunity to be had if you want to start a drinks brand.

In fact, many businesses have launched recently with unique business models, new approaches and some downright crazy ideas for drinks which are going some way to transforming the way we see the sector.

Take pioneering beverage developer Brainwave Drinks Ltd. for example. Founded by Richard Baister, named a Young Gun in 2012 as the creator of calorie burning drinks brand SUMO Drinks, Brainwave Drinks has two distinct offerings: Brainwave ; claimed to be the world’s first drink to combat cognitive decline and ProWater ; a high protein water brand.

However, your beverage business doesn’t have to be at the cutting edge of science to stand out as Startups Awards 2016 finalist Pinkster Gin demonstrates. Pinkster is an artisan gin brand made with British raspberries to give it unique pink colouring and taste.

Founder of Pinkster Gin, Will Holt, explains: “Over 95% of traditional gins are clear. Ours is pink because it’s produced with fresh raspberries. This disruptive approach and quirky branding has given us colossal stand-out in a highly competitive marketplace”.

Or, as in the case of Ken Graham, founder of Soda Folk, it might be the case that you launch a beverage business inspired by travel. Graham started his business for a taste of home: “If you can find a “problem” to solve within the business, then you might be suited to being a beverage entrepreneur. In my case, I wasn’t able to find good American-style root beer when I moved to London from the USA, a problem I managed to solve by starting Soda Folk”.

The beverage market is “highly competitive” warns founder of Virtue Energy Water Rahi Daneshmand. His range of “positive energy” drinks contains zero sugar, calories and sweeteners and only uses natural sources of energy from yerba maté, guarana and ginseng.

Daneshmand adds that while “it will involve a lot of persistence and determination to break” into the drinks sector, “a beverage business is suited to anyone who is passionate about creating new drinks and improving consumer’s lifestyles through the development of their brand”.

If this sounds like you, read on to find out how to create the perfect business plan for your beverage brand…

Create A Website To Advertise Your New Beverage Brand

What should you include in a beverage business plan?

As with any business, taking some time to create a thorough business plan which details everything from your ambitions to your financials and marketing strategy, will put you in good stead to succeed. Download your free business plan template here .

Brainwave’s COO Nik Hrstic offers up a checklist of what to include in your business plan:

• Start with “a vision for the business”- “[Your business plan should be a] living, relevant document that management use to measure themselves against – and [it should] be updated to take into account actual performance and market conditions”
• You should also include profiles of your management team, with “their credentials and history in the sector and their empathy with the products sold”
• If you intend to grow your business successfully then funding is essential; a realistic business plan is a good tool for attracting investors. Hrstic says it’s not enough to include your sales revenues, margins, profit and loss and balance sheet for at least three to five years. Instead, the most important thing to explain is “how these numbers will be achieved in detail – because a bank lender or individual investor will hold management to account for them”.

Hrstic advises that you also include: “Products pipeline, sales & marketing, operations and everything that happens in the cycle between a customer ordering and the business collecting cash”, as well as “where the cash goes” and resources needed in the business such as the individuals with appropriate skills required to make the business plan achievable. This could be anything from accounting to legal professionals and everything in between.

Soda Folk’s Graham says a number of successful beverage businesses have published their business plans online, which you can access and use to guide and inform your own like this for example. In Graham’s case, reading available business plans alerted him to things he may have otherwise missed.

Most significantly it was that “large customers such as grocery multiples and major distributors might have listing fees and compulsory promotions that can run into the thousands of pounds. If you’re hoping to land those kinds of customers, you’d better account for those expenses beforehand”.

Virtue Energy Water’s Daneshmand gives a concise overview of what a beverage business plan should look like, saying it should include: “the uniqueness of your beverage, the current market offerings, your plan to market your drinks, your sales strategy and the team you will hire”.

Holt’s advice is to include “the kitchen sink”and he says that, for Pinkster Gin, it was essential to detail the company’s export strategy as 70% of UK gin is exported. Holt’s three year-old brand already exports to Australia, the USA and Ireland and has recently raised a £1m crowdfunding round to expand into Germany.

While you will certainly discover some useful information by researching other business plans and including the essentials above, a business plan is a document that is unique to every enterprise – every path to success will be different and there’s no one size fits all strategy.

Draft a clear and compelling mission statement for your beverage business that you and your team can get behind and work towards and you won’t go far wrong.

So you’ve written a fool-proof business plan for your exciting new drinks brand and you’re ready to start brewing, mixing and testing your wonderful beverages. But wait – there’s another hurdle to contend with: red tape…

Rules and regulations for starting a beverage business

If you choose to start an alcoholic drinks business then you’re going to be at the mercy of far more rules and regulations than if you started a non-alcoholic drinks brand as Holt can attest to: “Given we’re dealing with alcohol there are all sort of excise complications and we spend a considerable amount of time dealing with HMRC, so finding a competent tax adviser is essential. Also, there’s no shortage of health and safety issues to contend with.”

However, even drinks in the health sector aren’t immune to the burden of legislation – especially when the brand is trading on a health-giving property. Brainwave Drinks’ Baister explains: “A lot of healthier drinks wish to make a claim about their function.

“In that case it’s very important to be aware of the laws concerning which claims can and cannot be made and how these have to be expressed, both on packaging and in other marketing materials.”

Soda Folk’s Graham echoes Baister’s comments and says it’s important to remember to comply with the rules established by the Food Standards Agency “which has numerous guidelines about labelling, ingredient safety, and health claims”.

According to Virtue Energy Water’s Daneshmand, starting a beverage business will expose you to no more rules and regulations than the “vast majority of businesses”. However, it’s the manufacture and sale of your products where you’ll find “a whole host of rules and regulations” including “ensuring your manufacturing site has all the correct health & safety legislation and making sure your drinks are safe for human consumption”.

Once you’ve got legislation out of the way, it’s time to start thinking about the costs of starting your own drinks brand. Read on to find out how to budget wisely…

How much does it cost to start a beverage business?

Once you’ve created your business plan, you should have a relative idea of what your start-up costs are going to be – although costs are going to vary wildly for different businesses. When establishing initial costs, you can afford to be thrifty and make sure to budget for unforeseen circumstances.

To avoid spiralling costs and unnecessary expenditure at the start, take it slow. Soda Folk’s Graham asserts that it’s possible to get started with “very little capital” and that you can start out from home.

After experimenting with recipes and ideas in the safety of your kitchen, make use of “friends, co-workers and any adventurous soul whom you think will give you honest feedback”.

Once you’ve canvased views and get “rave reviews”, Graham says that’s when it’s time to test the product on a broader audience by “setting up a stall at a food festival or farmers market and selling your drinks directly to the public”. You can also start to target local shops and restaurants “whose invoices can help you finance your first commercial batch”.

“At this stage, you’ve probably not yet spent more than a couple of hundred pounds for ingredients and bottles”, suggests Graham, “and you’re already well on your way to success”. Whatever you do, Graham concludes: do not spend a bunch of money canning or bottling a large batch before you have some good-sized customers who have committed to buying your product!”

As Virtue Energy Water’s Daneshmand points out, your start-up costs will largely “vary on your plans” – which will have been carefully laid out in your business plan – and “how quickly you intend to pick up momentum and your overall business ambitions”.

In contrast to Graham, Daneshmand suggests that an initial outlay of £200,000 “would be sufficient” to launch a business in the beverages sector, but points out that “many businesses raise more than this and some launch with less”.

Daneshmand adds that the costs associated with starting a beverage business are different to starting a tech businesss as “minimum production runs are relatively high for most packaging formats, so it is difficult to test with a lean start-up methodology”. On a brighter note however, he says that “nowadays there are more options in manufacturing where you can do smaller runs to test your concept before going into a full scale production run”.

Whatever you budget for your drinks brand, remember to only spend on the absolute essentials at the beginning and carefully manage your cash flow to successfully manage your growth.

So you’ve tested your product and you think it’s got great commercial potential – but how much money is your drinks brand going to make?

How much can you earn running your own beverage business?

The amount you earn from your beverage business is going to ultimately come down to your own ambitions, drive and imagination. More niche products and ideas have a smaller market appeal, while others can grow to become globally recognised brands.

“It helps if your brand has a great story” says Soda Folk’s Graham: “In the early days of Soda Folk, I managed to get attention from buyers and the press because I was a homesick American who started a company to satisfy my root beer cravings. A delicious recipe, great packaging, and a creative product idea are all important, but your story is what will really help set you apart” and drive sales.

It’s also advisable to “pay yourself as little as possible” in the early stages of running a beverages business. “To help your business grow quickly, invest any early profit back into the company. If you’re expecting to make a mint in a few short years, you’re likely to be disappointed” continues Graham.

To get the word out about your brand and make some early sales, “go to where you think your customers might be and give them the chance to taste your products”. This could be a more formal event such as pouring samples for a stockist’s shoppers or handing out bottles to your friends at a house party.

Doing this, Graham explains, “gives you the chance to get to know your customers personally, share your story, and build a real connection. If you find a small, devoted following, they’ll help you grow your customer base via social media and word of mouth, and before long, you’ll have a whole army of passionate fans”.

Pinkster’s Holt agrees. Holt recommends that if you want to build your customer base and grow revenues “seize any cost-effective marketing approach, be visible on social media, forge brand partnerships and be fleet-of-foot”. He adds that this is “not always as simple as it sounds…”.

In the opinion of Virtue Energy Water founder Daneshmand, any returns “will depend on your financial situation and whether you need, or would like to pay yourself, a significant wage”. He shares Graham’s view about reinvesting instead of taking a salary: “If you are focusing on growth and momentum you will not be able to pay yourself an attractive salary unless you are hitting significant revenue levels”.

We’ll let Pinkster’s Holt have the last word on the earning potential of setting up a beverages business: “Get it right and the world’s your oyster. Look at the phenomenal success of the team at Fever Tree with their range of premium tonics and mixers. A modern day success story of some significance”.

Useful contacts

• The Food Standards Agency (FSA) : The UK government body responsible for protecting public health in relation to food
• The British Soft Drinks Association (BSDA) : Represents UK producers of soft drinks, including carbonated drinks, still and dilutable drinks, fruit juices and bottled waters including the majority of Britain’s soft drinks manufacturers as well as franchisors, importers and suppliers
• Ampulla: Manufactures and sells a variety of plastic, glass and aluminium packaging
• The beverages market is heavily saturated – Stand out with a quirky idea, unique branding, or a great story
• When writing your business plan, it’s not enough to detail your financials, establish how you are going to achieve them
• Make sure your product complies with the FSA’s guidelines on labelling, ingredient safety and health claim
• Ask friends, co-workers and family for honest feedback on your product before blowing a load of your budget on a large batch
• Reinvest all your initial profits into growing the business and have a long-term view; don’t expect to make a lot of money overnight

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

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How to Start a Profitable Drink Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a drink business plan., 3. develop a drink brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for drink., 6. open a business bank account and secure funding as needed., 7. set pricing for drink services., 8. acquire drink equipment and supplies., 9. obtain business insurance for drink, if required., 10. begin marketing your drink services., 11. expand your drink business..

Starting a drink business requires a thorough understanding of the market landscape, consumer preferences, and competitive dynamics. An insightful market analysis is the foundation for making informed decisions about product development, marketing strategies, and sales tactics. Here are some key steps to guide you through the process:

• Identify your target market by considering demographics, lifestyle, and consumption habits to ensure your drink appeals to the right audience.
• Analyze current market trends, such as the popularity of organic ingredients or low-calorie options, to align your product with consumer demands.
• Examine your competitors, their product offerings, pricing, and market positioning to identify gaps and opportunities for differentiation.
• Understand the regulatory environment for your drink product, including health standards and labeling requirements, to ensure compliance.
• Assess the supply chain for raw materials and production needs, identifying potential suppliers and cost implications for your business model.
• Conduct primary research, such as surveys or focus groups, to gather first-hand consumer insights and validate your product concept.
• Review sales channels and distribution networks to determine the most effective way to reach your audience and deliver your product.

Are Drink businesses profitable?

Yes, drink businesses can be profitable. The success of a business depends on factors such as the type of drink, the pricing, marketing, and promotion tactics, the target market, and the location. Businesses that produce and sell a popular drink can be very successful, especially if they can tap into a niche market or specialize in a certain type of drink. They can also make money from selling drinks online or at events.

Creating a detailed business plan is crucial to the success of your drink business. It will serve as a roadmap for your venture, helping you to navigate through each stage of establishment and growth. Here's what you need to include in your draft:

• Executive Summary: Briefly summarize your business concept, the drink products you'll offer, your unique selling points, and financial projections.
• Company Description: Outline your business's mission, vision, and the market needs it will fulfill. Include information about your target demographic and location.
• Market Analysis: Research the drink industry and your competitors. Understand trends, customer preferences, and market size.
• Organization and Management: Describe the structure of your business, your team, and the roles each member will play.
• Product Line: Detail the drinks you plan to sell, their ingredients, pricing, and how they stand out from competitors.
• Marketing and Sales: Explain your strategies for branding, marketing, sales, and customer retention.
• Funding Request: If seeking funding, specify the amount needed, how it will be used, and long-term financial strategies.
• Financial Projections: Provide an overview of projected income, cash flow, and balance sheet forecasts.
• Appendix: Include any additional documents or data that support your business plan, such as resumes, permits, and legal documentation.

How does a Drink business make money?

A drink business can make money by selling beverages, such as soda, tea, coffee, beer, or wine, to customers. They can also make money by selling food items that pair well with their drinks, such as snacks, sandwiches, or desserts. Additionally, drink businesses can generate revenue through promotional activities, such as happy hour specials, loyalty programs, and discounts.

Developing a drink brand is a crucial step in establishing your presence in the beverage market. It involves creating a brand identity that resonates with your target audience and differentiates your product from competitors. Here are some key points to consider in the brand development process:

• Define Your Brand Identity: Determine the personality, values, and message you want your brand to convey. This includes selecting a brand name, logo, and color scheme that align with your brand's character.
• Understand Your Target Audience: Conduct market research to understand the preferences, behaviors, and demographics of your potential customers. Tailor your branding to appeal to this audience.
• Develop a Unique Selling Proposition (USP): Identify what makes your drink different and better than the others. Highlight these unique features in your branding and marketing efforts.
• Create Compelling Packaging: Design packaging that not only protects your product but also grabs attention on the shelf. It should be reflective of your brand identity and appeal to your target audience.
• Build a Strong Online Presence: Use social media, a brand website, and online marketing strategies to build brand recognition and connect with consumers and retailers.
• Consistency is Key: Ensure that every aspect of your brand, from your product to customer service, consistently reflects your brand identity and values.

How to come up with a name for your Drink business?

When coming up with a name for a drink business, it’s important to think of something unique and memorable. Consider using a play on words or alliteration to make the name stand out. Brainstorm different words that represent your brand and the type of drinks you offer. Finally, make sure to do a quick internet search to ensure your name isn’t already taken and that the domain name is available.

Starting a drink business requires not only a delicious product but also the right legal structure to ensure it operates smoothly and within the law. Formalizing your business registration is a crucial step that will affect your liability, taxes, and ability to raise capital. Below are key points to consider when registering your business:

• Choose a Business Structure: Decide whether you'll operate as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each has different legal and tax implications.
• Register Your Business Name: Once you've chosen a unique name, register it with your state government. If you're operating under a trade name, you may need to file a Doing Business As (DBA).
• Obtain Necessary Licenses and Permits: Depending on your location and the nature of your drink business, you may need various permits, including a business license, health department permit, and a liquor license if applicable.
• Apply for an EIN: An Employer Identification Number (EIN) is necessary for tax purposes and to open a business bank account. You can apply for an EIN through the IRS website.
• Register for State Taxes: If your state collects sales tax or has state-specific business taxes, register with your state's taxation authority.
• Comply with Additional Regulations: If you're selling alcoholic beverages, you'll need to comply with federal regulations and obtain approval from the Alcohol and Tobacco Tax and Trade Bureau (TTB).

Resources to help get you started:

Explore crucial resources designed for drink entrepreneurs to gain insights on market trends, operational best practices, and strategies for business expansion:

• Beverage Industry Magazine: Offering comprehensive coverage on market trends, new products, and industry news. https://www.bevindustry.com/
• The Drinks Business: A leading international publication in the beverage sector, providing insights on wine, beer, and spirits. https://www.thedrinksbusiness.com/
• Beverage Trade Network: A platform for connecting with global beverage industry professionals, along with articles and reports. https://beveragetradenetwork.com/
• Imbibe Magazine: A premier source for drink trends, from cocktails to coffee, plus recipes and industry news. https://imbibemagazine.com/
• RaboResearch Food & Agribusiness: Reports and analysis focused on global beverage markets, offering forecasts and strategic advice. https://research.rabobank.com/

Starting a drink business requires careful attention to legal requirements. To ensure you're operating within the law, acquiring the right licenses and permits is critical. Here’s a guide to help you through Step 5 of the process:

• Research Local Regulations: Each city and state has its own requirements for beverage businesses. Check with your local city hall or business bureau to understand what specific licenses and permits you need.
• Health Department Permit: Since you're dealing with consumables, you’ll likely need a permit from the health department, ensuring that your products meet health and safety standards.
• Business License: Apply for a general business license which gives you the legal right to operate your business within your locality.
• Liquor License: If your drinks contain alcohol, you'll need a liquor license, which can be one of the more complex licenses to obtain due to various local and state laws.
• Food Establishment Permit: If you plan to serve food along with your drinks, this permit is generally required.
• Inspections: Be prepared for health and safety inspections by local authorities to ensure your establishment meets all regulations.
• Trademark Protection: If your drink has a unique name or recipe, consider getting it trademarked to protect your brand.

What licenses and permits are needed to run a drink business?

Licenses and permits needed to run a drink business will vary depending on the type of drink business and location. Generally, businesses will require a business license or permit from the city or state, a liquor license, health permits, and any additional permits for operations such as cooking, serving alcohol, wholesaling, and serving special events.

Opening a business bank account is a critical step in establishing your drink business's financial foundation. It helps you manage your company's finances effectively and is essential for receiving funding from investors or loans from financial institutions. Here are key points to guide you through this process:

• Research different banks to find one that offers business accounts with the features you need, such as low fees, easy access to funds, and good customer service.
• Prepare the necessary documentation, which typically includes your business registration papers, EIN (Employer Identification Number), ownership agreements, and a business license.
• Choose the right type of business account, whether it's a checking account, savings account, or both, based on your business's operating needs.
• Consider applying for a business credit card to help with initial purchases and build your company’s credit history.
• Explore funding options if needed, such as small business loans, lines of credit, venture capital, crowdfunding, or angel investors, to ensure you have the capital to grow your business.
• Keep your business and personal finances separate to simplify accounting and tax processes.

Setting the right price for your drink services is crucial for the success of your business. It needs to be competitive yet profitable, reflecting the quality of your offerings and covering all costs. Here are some guidelines to help you establish your pricing strategy:

• Analyze your costs: Calculate the cost of ingredients, labor, overhead, and any other expenses to ensure each drink price covers these costs and contributes to profit.
• Understand your market: Research competitors' pricing and consider your target demographic's spending habits to set prices that are attractive and competitive.
• Value-based pricing: Price drinks based on the perceived value to the customer, factoring in the quality of ingredients, brand reputation, and the overall experience you provide.
• Consider pricing tiers: Offer a range of prices to cater to different customer segments, from budget-friendly options to premium drinks.
• Adjust for profit margin: Determine your desired profit margin and apply it to the cost of your drinks to arrive at the final selling price.
• Regularly review prices: Keep an eye on market trends, cost fluctuations, and sales performance to adjust prices as necessary over time.

What does it cost to start a Drink business?

Initiating a drink business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $95000 for launching such an business. Please note, not all of these costs may be necessary to start up your drink business.

To ensure the success of your drink business, it's crucial to acquire the right equipment and supplies. This will not only enhance the quality of your beverages but also improve the efficiency of your operation. Here are the essential items to consider:

• Blenders and Mixers: For smoothies, cocktails, and other blended drinks, high-quality blenders and mixers are indispensable.
• Coffee Makers/Espresso Machines: If your menu includes coffee-based beverages, invest in commercial-grade coffee makers or espresso machines.
• Refrigeration: Commercial refrigerators and freezers to keep your ingredients fresh and drinks chilled.
• Ice Machines: For drinks requiring ice, an ice machine is necessary to provide a consistent supply of clean ice.
• Glassware: Have a variety of glasses to serve different types of drinks, from cocktail glasses to mugs.
• Utensils and Accessories: Straws, stirrers, napkins, and other accessories should be stocked for customer convenience.
• Disposable Cups: If you're offering takeaway services, you'll need a variety of disposable cups and lids.
• Cleaning Supplies: Keep your equipment in top condition with the right cleaning agents and tools.
• Syrups and Mixers: Stock a range of syrups, mixers, and garnishes to create a wide menu of drink options.

List of Software, Tools and Supplies Needed to Start a Drink Business:

• Business Licenses and Permits
• Point-Of-Sale (POS) System
• Inventory Management System
• Bar Supplies and Equipment
• Refrigeration and Storage Equipment
• Filtration and Water Treatment Systems
• Cleaning and Sanitation Supplies
• Office Supplies
• Accounting Software
• Marketing Software

When starting a drink business, it is essential to protect your venture with the appropriate insurance coverage. Obtaining business insurance can safeguard against potential losses and liability, ensuring that your business thrives in the face of unforeseen challenges. Here are the steps to follow to secure the right insurance for your drink business:

• Research different types of business insurance such as general liability, product liability, and property insurance to determine which coverages are relevant for your drink business.
• Consult with a licensed insurance agent or broker who specializes in food and beverage businesses to get professional advice tailored to your specific needs.
• Compare quotes from multiple insurance providers to find the most comprehensive coverage at a competitive price.
• Consider any specific risks associated with your drink products, such as spoilage or contamination, and ensure these are covered in your policy.
• Review your business insurance policies annually or whenever there are significant changes to your operations to ensure your coverage remains adequate and up to date.
• Keep all insurance documents organized and accessible in case you need to file a claim or provide proof of insurance to vendors or retail partners.

Now that you've perfected your drink offerings, it's time to attract customers and make your mark in the beverage industry. Effective marketing is crucial to get the word out and entice people to try your drinks. Follow these steps to begin marketing your drink services efficiently:

• Develop a brand identity: Create a memorable logo, choose an attractive color scheme, and establish a unique voice to make your drink business stand out.
• Build a professional website: Ensure your website is user-friendly, visually appealing, and includes all necessary information about your products and how to purchase them.
• Engage on social media: Use platforms like Instagram, Facebook, and Twitter to showcase your drinks, share customer testimonials, and interact with your audience.
• Offer promotions: Attract new customers with introductory offers, discounts, or bundle deals that provide added value to their purchase.
• Collaborate with local businesses: Partner with local cafes, restaurants, or events to feature your drinks, expanding your reach and building community relations.
• Invest in advertising: Consider paid ads on social media, search engines, or local media to target potential customers within your preferred demographic.

Growing your drink business requires strategic planning and a focus on scaling operations effectively. To expand your reach and increase revenue, consider the following steps tailored to the unique needs of your beverage enterprise.

• Explore New Markets: Research and target new demographics or geographic areas that may have a demand for your drinks.
• Enhance Distribution Networks: Partner with distributors, retailers, or utilize online platforms to widen your distribution channels.
• Product Diversification: Introduce new flavors, limited editions, or complementary products to attract a broader customer base.
• Marketing and Advertising: Invest in marketing campaigns, social media advertising, and collaborations with influencers to increase brand visibility.
• Customer Engagement: Foster a community around your brand through events, loyalty programs, and direct customer feedback channels.
• Improve Production Efficiency: Upgrade equipment or optimize production processes to handle increased volume while maintaining quality.
• Secure Financing: Obtain additional funding through investors, loans, or grants to support expansion activities.

Bottle POS » Latest Articles

Table of Contents

• Creating a Liquor Store Business Plan 101
• 1. Don't Forget to Include Insurance In Your Business Plan

2. Don't Start Your Business Plan Without Research

• 3. Do Develop A Financial Plan
• 4. Don't Be Consumed By Day-To-Day Operations

5. Do Spend Time on Choosing the Right POS System

• A Liquor Store Business Plan Designed For Success

Creating A Liquor Store Business Plan: 5 Do's And Don’ts

Opening a liquor store can be an exciting business venture, but creating your liquor store's business plan shouldn't be an afterthought.

The liquor industry can be an incredibly lucrative business opportunity, but only if you tackle it with a well-thought-out strategy and business plan. There are 40,612 liquor stores in America, so it's essential to put in the time to research the market so you can compete with established stores.

With over 20 years in the liquor industry, we're always happy to lend our expertise and knowledge to aspiring liquor store owners. If you're contemplating venturing into the liquor industry, here are six do’s and don'ts you should consider when creating your business plan.

Creating a Liquor Store Business Plan 101  

A liquor store business can be an incredibly exciting and prosperous investment opportunity. With a clear and definitive business plan, you can avoid missing essential factors or critical considerations in opening your store. 

A liquor store business plan will help you prepare for the challenges of operating your business and set you up for success in growing your store. Your business plan should provide an overview of your liquor store and a three- or five-year plan. 

It should also serve as a checklist to ensure you're getting all the proper licenses, technology, and resources to operate your business on a day-to-day basis.

Not all business plans are made equal, and there are a few do’s and don'ts when creating your plan.

1. Don't Forget to Include Insurance In Your Business Plan  

Every business requires insurance. Insurance protects all stakeholders involved with your business in the event of injury, theft, natural disaster, or sickness. 

With any operation, there is always some physical risk or opportunity for injury, and it's important to have liability insurance in case any accidents occur in the workplace.

Your store can also be subject to crimes like robbery, fraud, theft, and embezzlement. If you don't have coverage, you'll be bleeding money and paying out of pocket to correct any damages.

Property damage can come from theft, but it can also come from environmental factors, depending on where you live. It's essential to get coverage in case of things like floods, earthquakes, or any natural disaster.

Cyber attacks should also be considered, given the digital age we live in. They happen fast and under the radar, and you could face serious setbacks without coverage.

Temporary closure due to health issues or any emergency that leads to loss of income or revenue for the store can be a huge concern. It's important to get the right kind of insurance to protect yourself in any emergency.

Forgetting to cover all your bases when it comes to insurance leaves you with many risks, and you should only operate a business with all things covered.

Your research should include all opening and construction costs, operational costs, and potential profit margins. Liquor stores require a good amount of cash upfront, so you need to understand the size of your investment and line up financing to make it happen.

You also need to consider what products you'll offer. Some staples are basically required for every liquor store: big-name beer and wine brands, the most popular whisky, vodka, and the mixers to go with them. But there are also hundreds of different products that different segments of customers will purchase. From rare liquors and craft beer to seltzers and ready-to-drink (RTD) beverages, you’ll need to study up. 

You won't become an expert overnight, but knowing your products can help you figure out how to sell them.

This is why a solution like Bottle POS is a  great option for new liquor store business owners, as a pre-populated liquor database can make it easy for any new owner to fill their inventory with popular products. Bottle POS’ centralized database makes it easy to manage stock and helps you select products that are most likely to sell.

3. Do Develop A Financial Plan  

Once you've done substantial research, it's time to start documenting costs and developing a financial plan. You'll need to consider inventory, equipment, rent, building maintenance, security, and all the permit costs necessary for legal operation.

Besides labor costs and operational expenditures, inventory is one of the most significant financial considerations.

How much do you order, what should you order, and how often should you order?

Your POS system should give you insight into sales and inventory data for reordering. If your POS system has automatic restocking and autonomous receiving for inventory, you can save time and money and simplify an otherwise timely process.

Your POS insights will help you quickly identify the brands that drive your sales and the overstocked products that cost you. Think of it as the guide, partner, or sidekick to your store.

4. Don't Be Consumed By Day-To-Day Operations  

Your day-to-day operations include ordering alcohol, unloading deliveries, labeling liquor bottles, and accounting for any shrinkage.

The right POS system can help you optimize your day-to-day processes, so you spend less time processing and more time automating your functions. Invoicing can take tons of time. With automation, you can save hours on manual data entry every week.

There are so many things to account for, and working with a modern liquor store POS system can help optimize your store's efficiency.

A cloud-based liquor POS system can take your liquor store business to the next level.

Using a secure network, you can access all the data surrounding your inventory management from a simplified user interface in the comfort of your own space,  or on location.

A cloud-based POS system will help you quickly identify which brands drive your sales and which are overstocked or dead stock.

This can help you determine what products to bring in and what to avoid.

Sales trends can also show you when people buy the most product, and other data points to help you develop promotional campaigns or sales. With the right POS system, you can see important data to guide your business decisions.

With key sales and product data, you can create forecasts and document revenue trends, ultimately enabling you to plan and create long-term goals designed to see your business grow.

A Liquor Store Business Plan Designed For Success  

Opening a liquor store starts with creating a solid business plan, but putting together a business plan is more complex than just documenting the steps you need to take before you can open your doors.

It's important to consider things like liquor licenses, business insurance, and other operational necessities that ensure you run your business compliantly and with protection. 

On top of that, it's important to conduct market research, become a product expert, and consider your day-to-day operations before and after you open. Regularly analyzing store data and revenue trends are key to developing long-term goals and growth plans.

Many factors go into creating a business plan to set you and your store up for success, and it's easy to miss or overlook something important. However, the right POS system can make your job significantly easier.

Inventory management, databases, stock replenishment, secure technology, robust data analysis, and reporting are just a few ways a point of sale system like Bottle POS can help optimize your processes so you can focus on your customers and grow your business.

If you're ready to venture into the liquor industry and want to work with a POS system that can help take your business off the ground, get in touch with our team.

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From Concept to Can: How to Launch a Successful RTD Brand in 2020

words: Tim McKirdy

illustration: Danielle Grinberg

Convenience is key in today’s drinking landscape. Even before the coronavirus pandemic forced widespread bar closures, consumers were increasingly reaching for ready-to-drink (RTD) alcoholic beverages. The RTD category grew 80 percent in 2019 and ended the year with a total value of more than $100 million, according to consumer analytics firm Nielsen.

This year’s unique circumstances have only fueled further growth, with conveniently packaged RTDs offering the ideal solution for socially distanced drinking occasions. According to global analytics firm IWSR, RTDs now hold a 6 percent volume share of total beverage alcohol in the U.S. Over the next five years, IWSR forecasts that RTDs’ volume share will overtake that of the entire spirits category stateside.

This staggering prediction comes with the not insignificant caveat that IWSR includes hard seltzers as a type of RTD, while other firms such as Nielsen do not. Though hard seltzers account for 50 percent of the RTD category (per IWSR tracking), Brandy Rand, COO of the Americas at IWSR, says there is still significant opportunity within the space for canned cocktail brands and other seltzer-like products. “Demand for higher-quality, pre-mixed beverages in a convenient format, coupled with overall U.S. trends toward health and wellness, shows no signs of slowing down over the coming years,” Rand says.

This continued demand will no doubt spur innovators wishing to enter the RTD space. But along with that opportunity comes inherent challenges and considerations — particularly for start-up brands. From developing a base recipe for the product to getting to market and growing distribution, entering the RTD space can take years. Here, we outline how existing brands within the category have been able to do so, and share the challenges they report from their journeys.

Crafting an RTD Recipe

Many of the lengthy list of tasks to complete and boxes to check before launching an RTD brand overlap with taking a wine or beer to market; think TTB applications and branding concepts. One major challenge that’s unique to RTDs, however, is developing a recipe for the product and connecting with manufacturers that will be able to execute it.

Earlier this year, prominent New York City bartenders Tom Macy and Julie Reiner launched Social Hour Cocktails . The RTD brand debuted with three flavors: Gin and Tonic, Whiskey Mule, and Pacific Spritz. While the launch came during the pandemic, a period that’s proven lucrative for canned cocktails, Reiner insists Social Hour is not a “pandemic creation.” Macy played around with the notion of launching an RTD cocktail brand for years and first started working on the project seriously in 2018.

One of the lengthiest aspects of the process was recipe development, Macy says. From day one, the goal was to create a product that was “as good or better” than anything they could make behind the bar, which took longer than he expected and was a stark departure from developing recipes for a bar. “There’s no silver bullet; you’ve just got to do the work to make the recipes perfect,” Macy says.

That hard work revolves around tasting recipes with different base ingredients and proportions, and in the case of drinks like the G&T, with varying levels of carbonation. Only then is it possible to determine what each component is contributing and how it affects other ingredients, Macy explains. And only then can improvements be made.

Still, Macy suggests that those looking to enter the space now should find some aspects of recipe development easier than when he began. When Macy and Reiner were developing the recipes for Social Hour’s cocktails, the manufacturers and flavor suppliers didn’t have a frame of reference for what they were trying to create. Given the rapid expansion of the category in those intervening years, Macy expects this is no longer the case.

One vital consideration during recipe creation is the base alcohol for the RTD. While the alcohol laws for all 50 states are unique, opting for a malt- or cane-based brewed alcohol (the same used in most hard seltzers) will generally allow that product to be sold in grocery stores. This offers a much broader range of retail opportunities than just wine and liquor stores, but crafting an authentic tasting G&T without the gin can prove extremely difficult. For those thinking of launching cocktails with a citrus element — such as the lime in a Margarita — there’s a range of other complications to navigate.

The Importance of Packaging

Recipe secured, the next hurdle comes in the form of packaging. While RTDs have become somewhat synonymous with cans, by no means are they the only option. And within the aluminum can space, there are multiple options to consider, each with its own positives and negatives.

Texas-based Aimy Steadman co-founded BeatBox Beverages in 2011, along with Justin Fenchel and Brad Schultz. BeatBox packages its six flavored wines, or “Party Punches,” in 500-milliliter Tetra Pak cartons. Steadman says they chose the packaging for its environmental benefits and the convenience it offers.

At 11.1 percent ABV, each container holds the alcohol equivalent of four light beers. The half-liter volume makes it a great option to share, but the fact that the containers are resealable means consumers don’t have to finish the beverage in one sitting if they’re drinking alone, Steadman says.

Working with Tetra Pak has had other unexpected advantages in recent years. In 2020, alcohol producers have had to contend with widespread aluminum can shortages. “For small companies, trying to get time with a co-packer or trying to get cans [relies on] finding good partners that will help you punch above your weight,” Steadman says.

Those who do go down the aluminum can route should carefully consider container sizes. Five Drinks Co. launched its line of craft RTD cocktails in 2019. The Miami-based brand packages its line of drinks in 6.8-ounce cans, which are designed to serve the exact same pour one would receive when ordering a Margarita or Paloma (over ice) in a bar.

It’s an option that once again offers the benefit of convenience but also has inherent obstacles, as this can size is not as widely produced as standard 12- or 16-ounce containers. “On the supply side, the biggest challenge is thinking ahead,” says Felipe Szpigel, one of the brand’s five co-founders. “As we expand we have to look many months down the road and guarantee that we have supply options.”

Distribution: The Biggest Hurdle of All

When recipes and packaging are taken care of, then the hard work begins. Perhaps the biggest challenge facing all alcohol producers in the U.S. is building a distribution network, and the still-nascent RTD category is no different.

Chicago-based hospitality duo Charles Joly and Matt Lindner launched Crafthouse Cocktails in 2013. By the end of this year, the brand’s cocktails, which arrive in a range of packaging formats and sizes, will be available in 20 states. By the end of Q1 next year, Lindner projects that Crafthouse’s products will retail in about 35 states.

One of the primary reasons it’s taken seven years to arrive at this point is the complex nature of alcohol distribution in the United States. “The three-tier system is a mess. It’s very difficult to navigate at a national level,” Joly says.

Though national distribution may seem like the holy grail for alcohol brands, Joly cautions against expanding too rapidly.

“Being in the business for a long time, I’ve worked with a lot of start-up brands, helping them with R&D, recipes, and promotion,” he says. Many of those brands have had substantial start-up budgets and use them to go national as soon as possible, Joly says, because they think they should be in all 50 states. “Two years later, they tank because they spread themselves so thin,” he adds.

Rather than merely focusing on off-premise channels to fuel growth, Crafthouse has found success via partnerships with Mariott and Amtrak and will soon be available on Virgin Voyages. The convenience of RTDs makes them ideal for retail, but Crafthouse proves that potential brands should not overlook on-premise opportunities (when they return).

Standing Out In the Crowd

As ever more established, large-scale brands release RTD product extensions, start-ups must get creative to attract consumer attention and compete against heavyweight marketing budgets.

Earlier this year, Five Drinks launched three new cocktails that it created in collaboration with New York cocktail bar Dante, which was crowned World’s Best Bar at the 2019 World’s 50 Best Bars awards. “Collaborating with the best bar in the world and getting some of their recipes in a can is a great way of telling consumers we’re different, and shows our pride for real ingredients and quality cocktails,” Szpigel says.

BeatBox has aimed to connect with drinkers both online and in person. The brand has more than 40,000 followers on Instagram; its feed feels authentic and doesn’t come across as overly curated or polished. “We listen to our customers and hang out with them at music festivals — hopefully we will be able to do that again soon,” Steadman says. “I think that’s what differentiates us from the millions of innovations we’ve seen since we launched in 2013.”

Crafthouse’s Joly and Lindner also stress the importance of connecting with consumers on a grassroots level. “We’re on the streets all the time, talking to people, giving a taste of our products, and letting them know what we’re about,” Lindner says.

“You can have liquid gold in a bottle,” Joly adds. “But if people don’t know about it, it doesn’t matter.”

This story is a part of VP Pro , our free platform and newsletter for drinks industry professionals, covering wine, beer, liquor, and beyond. Sign up for VP Pro now!

Published: October 27, 2020

• From Concept to Can: How to Launch a Successful RTD Brand in 2020 | VinePair
• https://vinepair.com/articles/how-to-launch-rtd-brand-2020/
• wbs_cat Spirit, wbs_brand Beatbox Beverages, wbs_brand Crafthouse Cocktails, wbs_brand Five Drinks Co., wbs_brand Social Hour Cocktails, business, canned cocktails, RTD
• It’s Aperitivo Time With One of NYC’s Best Bartenders, Mario Firmani | VinePair
• https://vinepair.com/articles/its-aperitivo-time-with-one-of-nycs-best-bartenders-mario-firmani/
• wbs_cat Wine, wbs_type Prosecco, wbs_brand La Marca Prosecco, cocktail, prosecco, spritz

Starting a Ready-to-Drink Alcoholic Beverage Business: A Brief Guide

If there’s one global industry that continues to thrive worldwide, it’s the beverage industry . Despite increasing competition, people continue to develop innovative drinks to meet consumer demands. One of such developments is a ready-to-drink alcoholic beverage. If you think you have the perfect recipe to start a beverage business, here’s a quick guide to help you get started.

Create a Business Plan

Regardless of the nature and scope of your brand new alcoholic beverage business, you first must create a comprehensive and practical business plan. This plan will serve as a manual for you to run your business as efficiently as possible and will allow you to predict your business’s future with a realistic perspective.

Some of the key features of your business plan should be the goals for your beverage business, the capital you need, the sales you intend to make by the end of the year, the target market and demand for your product, your marketing strategy, and projections for the next five years.

Seek Funding & Investments

Once you have a solid business plan at your disposal, it’ll become easier for you to accumulate capital through investors and venture capitalists. It’s crucial to frame your business around the factors most investors look for when funding businesses. These include advanced R&D, the use of technological resources, the product’s ability to create an impact, and its likelihood to benefit the economy.

A sufficient amount of resources and capital will help you throughout the production and distribution process. Therefore, it’s critical to be as prepared as you can be when gathering capital for your business.

Begin Operations

Once you have the money and a roadmap to run your beverage business, you can easily begin operations by appointing labour and employees, marketing your product, and making it accessible for as many people to buy as possible.

Remember to track your entrepreneurial journey using your professional business plan and make adjustments where necessary. Meeting the designated milestones as planned will ensure success at all times.

alocoholic beverage business , business plan writer , professional business plans , Starting a beverage business

As a freelance business plan writer, Kapil Munjal offers a customized business plan writing service for clients worldwide. He works with individuals and businesses to create professional business plans for bank loans, investors, landlords (retail property), government grants, and Canadian & US immigration. He has been writing business plans since 2011. Kapil holds an MBA from the University of British Columbia.

How to Start a Liquor Brand

Starting a liquor brand can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful liquor brand.

Importantly, a critical step in starting a liquor brand is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

How To Start A Liquor Brand?

14 Steps To Start a Liquor Brand:   Step 1: Choose the Name for Your Liquor Brand Step 2: Develop Your Liquor Brand Business Plan Step 3: Choose the Legal Structure for Your Liquor Brand Step 4: Secure Startup Funding for Your Liquor Brand (If Needed) Step 5: Secure a Location for Your Business Step 6: Register Your Liquor Brand with the IRS Step 7: Open a Business Bank Account Step 8: Get a Business Credit Card Step 9: Get the Required Business Licenses and Permits Step 10: Get Business Insurance for Your Liquor Brand Step 11: Buy or Lease the Right Liquor Brand Equipment Step 12: Develop Your Liquor Brand Marketing Materials Step 13: Purchase and Setup the Software Needed to Run Your Liquor Brand Step 14: Open for Business

Step 1: Choose the Name for Your Liquor Brand

The first step to starting your own liquor brand is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your liquor brand:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your liquor brand.

Step 2: Develop Your Liquor Brand Business Plan

One of the most important steps in starting a liquor brand is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your liquor brand.
• Company Overview – this section tells the reader about the history of your liquor brand and what type of liquor brand you operate. For example, are you a vodka, rum, whiskey, tequila, gin, or brandy brand?
• Industry Analysis – here you will document key information about the alcohol beverage industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your solid marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your liquor brand? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your liquor brand make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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Step 3: choose the legal structure for your liquor brand.

Next you need to choose a legal structure for your liquor brand and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the liquor brand and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a liquor brand together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the brand owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a liquor brand include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a liquor brand is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your liquor brand, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

Step 4: Secure Startup Funding for Your Liquor Brand (If Needed)

In developing your liquor brand business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a liquor brand to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a liquor brand that they believe has high potential for growth.

Step 5: Secure a Location for Your Business

There are a few things you need to take into account when looking for a physical location for your liquor brand. You’ll want to find a place that is accessible and visible to your target market, and that has the right zoning laws for liquor sales. You’ll also need to make sure that you have the financial resources to purchase or lease a property in the desired location.

Step 6: Register Your Liquor Brand with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

Step 7: Open a Business Bank Account

It is important to establish a bank account in your liquor brand’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

Step 8: Get a Business Credit Card

You should get a business credit card for your liquor brand to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

Step 9: Get the Required Business Licenses and Permits

There are a number of licenses and permits you will need in order to start a liquor brand. The most important license is a manufacturing license from the Alcohol and Tobacco Tax and Trade Bureau (TTB), which allows you to produce alcoholic beverages. You will also need to get a license from the state in which you plan to do business, as well as a permit to sell alcohol. There may be other licenses and permits required depending on your location.

Step 10: Get Business Insurance for Your Liquor Brand

There are various types of insurance that are necessary to operate a liquor brand.

Some business insurance policies you should consider for your liquor brand include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

Step 11: Buy or Lease the Right Liquor Brand Equipment

To start a liquor brand, you will need some distillery equipment, bottles, and labels. You may also want to invest in some marketing materials to help get your brand started.

Step 12: Develop Your Liquor Brand Marketing Materials

Marketing materials will be required to attract and retain customers to your liquor brand.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your liquor brand. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your new brand.
• Website : Likewise, a professional liquor brand website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your liquor brand.

Step 13: Purchase and Setup the Software Needed to Run Your Liquor Brand

To run a liquor brand, you need a point-of-sale (POS) system to manage your inventory, purchasing, and sales. You also need a customer relationship management (CRM) system to keep track of customers, and marketing software to help you advertise your product.

Step 14: Open for Business

You are now ready to open your liquor brand. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Liquor Brand FAQs

Is it hard to start a liquor brand.

No, it is not hard to start a liquor brand. With proper planning and preparation, starting a liquor brand can be successful. Make sure that you also have a good understanding and knowledge of the liquor industry.

How can I start a liquor brand with no experience?

There are a few things you can do in order to start a liquor brand with no experience. You can first research the industry and learn as much as possible about it. This will help you understand the basics of how the industry works, what products are popular, and what marketing strategy is most successful. You can also look for experienced professionals in the industry who can help guide you.

What type of liquor brand is most profitable?

The most popular and, therefore, the most profitable liquor is vodka. However, profitability can vary depending on the quality of the liquor, the location of the business, and the preferences of the customers in the area. 

How much does it cost to start a liquor brand?

It can cost anywhere from $10,000 to $100,000 to start a liquor brand. The amount of money you'll need to start a liquor brand depends on the type of liquor you want to produce, the distribution method you choose, and how much marketing you do.

What are the ongoing expenses for a liquor brand?

There are a few main expenses for a liquor brand. The first expense is the cost of the liquor itself. The second expense is the cost of production, which includes things like the cost of the bottles, labels, and shipping. The third expense is marketing and advertising.

How does a liquor brand make money?

There are a couple of ways that liquor brands can make money. The most common way is through the sale of their products to retailers. Liquor companies can also make money by forming partnerships with restaurants and bars. In addition, liquor brands can make money by selling their products to distributors.

Is owning a liquor brand profitable?

Yes, because liquor is considered a premium product the margins tend to be higher than those other types of beverages. It is also typically consumed in social settings, so brands can benefit from word-of-mouth marketing. Additionally, like other types of consumables, demand for liquor tends to be relatively recession-proof.

Why do liquor brands fail?

There are a variety of reasons liquor brands can fail. Poor marketing, a lack of innovation, and an inability to capture the imaginations of consumers are just a few possible explanations. Many liquor brands also tend to be expensive, and in an era where consumers are increasingly looking for value-for-money deals, that can be a major stumbling block.

Other Helpful Business Plan Articles & Templates

How To Launch a Beverage Product

A fantastic idea is the first and most important step toward launching your own drink company, but developing your brand can be tricky. Once you have an idea for a tasty new beverage, you'll still need to know how to start a drink brand and get your product off the ground. 

You'll need to consider various factors in your beverage startup business plan, including market research, beverage creation, sourcing and distribution. While launching a drink brand requires a great deal of effort, dedication and passion, knowing the steps to follow can help aid the process.

Our guide covers each step of the process, from developing your idea to launching your business. Keep reading to learn how to create a beverage product, including tips and strategies to help turn your vision into reality. 

Step One: Research, Development and Planning

Launching a beverage company begins with the research and development stage. Your formula is the foundation, but understanding the beverage industry and market is crucial to developing a beverage startup business plan to see it to fruition. In development, follow these critical steps to launch your beverage product: 

1. Brainstorm Ideas

Before you develop your initial drink idea, it's essential to consider the ins and outs of the beverage industry itself. It helps to think about the big picture when creating a drink product to decide whether you want to focus on selling one product or multiple types.

The beverage industry includes several types of drinks, including:

• Health drinks
• Energy drinks
• Sparking waters
• Alcoholic beverages

As you're brainstorming ideas, consider the product category your beverage fits into so you can research and analyze your competition effectively. 

2. Conduct Market Research

Conducting an in-depth market analysis is a critical step for creating a drink product and launching a beverage company. Factors to consider include potential competitors and the market size, type, niche and share. This analysis will help ensure you have the resources to help your company flourish. 

You can find several reliable online market tools to help you gain a complete picture of the beverage market. Once you understand your market, you can set up your business by asking yourself the following questions that will help bring your beverage vision to life: 

• What's my product?
• What differentiates my beverage from competitors' products? 
• What's my competitive advantage?
• What value does my product give?
• Do I have a recipe or a beverage development company to collaborate with?
• Do I have enough capital to launch my product on the market? 

3. Formulate a Beverage Startup Business Plan

Creating a business plan is essential in the development stage and beyond. Doing so helps you determine whether your venture will be too expensive or require more time than you can offer. 

To develop your business plan, you'll need to identify several key components, including: 

• Product costs: You'll need to determine the costs of your beverage at each stage. Consider partnering with experts to help you figure out how to reduce costs and determine a competitive price for your product that still allows you to make a profit. 
• Your target audience: It's essential to consider your target audience and which demographics you'll market to based on the type of drink you're producing. For example, you may want to start your own soda company for a younger audience. Or perhaps you're hoping to launch an adult-only beverage or a health drink for the fitness market. Determining your market segment can help you identify the best way to advertise your product to appeal to that audience. 
• How your product differs from competitors: When you're producing a new drink, you must be able to identify how it differs from other drinks of its type on the market. If you can't determine the difference, consumers probably won't be able to tell either. Identifying your beverage's unique selling point and formulating a competitive business strategy will help you demonstrate why people should buy it versus brands already on the market. 
• How you will enter the market: Part of your business plan should include how you'll enter the beverage market and a timeline for growth and expansion. Determine whether you'll start locally or need distribution deals on a national level. You'll also want to determine whether you'll sell your products online. You should create a visual timeline of how you'll enter the market to determine how to reach your target market effectively. 
• Your sales strategies: Consider how you will sell your beverages. For example, you may want to sell them yourself or employ sales personnel to cold call potential markets. Your sales strategy will determine what you can do to increase sales in a specific period. Factor in advertisement costs at this stage as well. 
• Accompanying merchandise: You might consider including merchandise to generate interest and attract attention. Merchandise possibilities include shirts, free giveaways or other special offers to reach a larger audience. 

4. Develop a Winning Recipe 

At this stage, you may be unsure how to formulate your beverage for your drink startup idea. Or perhaps you have a few ingredient ideas, but you're unsure how to narrow them down or ensure they're financially viable. You'll optimize these ideas to create a successful product at the beverage creation stage. Partnering with drink industry experts can aid the process. 

Partnering with beverage formulation experts at this stage brings the following benefits: 

• Creating your formula: Industry experts will first review your vision for your beverage, including any claim or certifications you want to make, and develop a formula based on your drink's type and unique characteristics. They'll work with you to make adjustments and finalize your recipe to make it commercially viable for a contract manufacturer to produce. 
• Reviewing ingredient specifications: Industry experts can also review any ingredients you already have in mind to identify the most cost-effective suppliers for your beverage. They'll help ensure your product delivers the taste and consumer experience you envision. 

Developing your drink startup in collaboration with industry experts will help you optimize your formulation and make the right operational choices early on. With their help, you can launch your brand with a solid foundation and ensure a more enjoyable, less stressful process. Working with experts to create your own beverage also helps you take control of the financial side of your beverage startup business plan. 

Step Two: Concept Validation and Pilot Testing

In the concept validation and pilot testing stage, beverage industry experts can help you reduce risks and bring your drink startup idea to life faster. Feasibility assessment and pilot testing provide data and support analysis to determine when to adjust your startup plan and when to stay on course. These validation services are strategically designed for your product's success : 

• Feasibility assessment: During your feasibility analysis , beverage industry navigators will identify areas to improve or new opportunities for your formula. They'll also provide a detailed overview of the risks and hurdles you might face and a timeline for getting your drinks on shelves. 
• Pilot testing: Pilot testing allows you to test your product in the early stages of development to see what potential users think of it. This feedback helps you create a product that real users want to purchase and consume. For example, you may ask users what they like about your product compared to others or if there's anything they find unappealing about it so you can make changes.

Consider a Small Batch Pilot Run of Your Beverage 

Doing a small batch pilot run gives you a small quantity of your beverage with its finished look to get impressions from consumers and distributors. A pilot run gives you the opportunity to gather product and production data that can make a great first impression with investors, distributors and retailers. It can also help you prepare for full-scale manufacturing.

Doing a pilot run of your beverage will allow you to: 

• Optimize your investment by starting with small-scale production.
• Reduce risks by ensuring your drink is ready for full-scale manufacturing.
• Fine-tune your beverage by refining the recipe and process. 
• Look professional to stakeholders.
• Validate your brand to co-packers.

Step Three: Sourcing Beverage Ingredients and Packaging

People recognize many popular beverages solely by their branding. Choosing the right packaging for your beverage is crucial to make it part of your signature look. 

Making your beverage easily recognizable can entice consumers to reach for your product rather than competitors. It's also important to create packaging practical in shape and size, so they fit on shelves and store displays. 

While branding can be similar for many types of packaging, drink industry experts can advise you on how to design yours to make it unique. They can also help you choose the best packaging for your product and your target market — for example, you might use slim cans if you're developing low-calorie drinks. At the same time, they might help you decide if your beverage would sell better in packs of four or six based on your product and target market. 

Using the freshest ingredients in their products is also vital for most beverage makers. You may want to use local fruits to produce your juice or need large quantities of ingredients to produce large batches of your product. At BevSource, we can help you source and procure the best ingredients and determine the cost-effectiveness of your options.

"GLOBAL" network of pre-screened/qualified/vetted ingredient and packaging suppliers?

BevSource partners with a global network of pre-screened, qualified and vetted ingredient and packaging suppliers to help you:

• Navigate supply chain challenges.
• Gain insight into purchasing efficiencies.
• Procure a reliable supply of ingredients and packaging.
• Get access to innovative and difficult-to-procure ingredients.

Step Four: Marketing Your Beverage and Brand

Marketing is the next stage of launching your beverage company and getting your product into the market. 

1. Design Your Brand Logo

Having a logo before you launch your products is an essential part of building your brand. Whether you only create a primary company logo or opt for individual product logos as well, make the decision early on so you won't have to alter anything after your product is already on the shelves. 

Your logo design should be unique and represent the personality of your product and brand. It can help to hire a graphic design expert to create a professional and clean logo. 

2. Create an Online Presence

Whether you sell your products online or not, having an online presence is essential. Ensure your website is professionally designed and easy for people to navigate. Include your logo, products, company history and contact information so people can easily reach you. Include the same information on your social media pages, and be sure to update these pages frequently for more exposure. 

When you commit to creating and maintaining your brand online, you can benefit from ongoing marketing and positive interactions with your target market. With a social media or online presence, consumers might be more likely to trust your brand and product.

3. Promote Yourself

Promotion is essential now that you're advancing to the later stages of your drink startup journey. A well-designed marketing strategy will ensure long-term success as you bring in more customers and profit.

Consider pursuing several advertising methods, such as: 

• Website and blogging.
• Email marketing.
• Social media channels.
• Events and in-store sampling.
• Discounts and coupons.

Step Five: Production and Distribution

It's finally time to get your beverages on shelves! As you launch your drink startup, consider the following steps for success:

1. Find a Beverage Co-Packer

Before launching your drink startup, consider choosing a beverage manufacturer. While it can be challenging to find a co-packer that can make your product to your specifications, budget and scale, we can help. 

At BevSource, we can provide access to the largest co-packer network in North America to help guide you through the manufacturing process. Strategic brands leverage our expertise and relationships to meet your production needs and provide top-quality products consumers will purchase and enjoy. 

Partnering with BevSource can be extremely helpful in producing and delivering your products. We'll help you ensure the quality, consistency and efficiency you desire as you scale your beverage, ensuring your product deliveries are on time, on budget and in compliance. We can even provide scheduling and on-site management to supervise product runs. 

2. Distribute Your Products

Whether you're planning to distribute your beverage yourself or seek larger deals, it's crucial to consider your options and their associated costs. 

Distributing products on your own may seem easier at first, but you'll need to factor in the cost of gas, mileage, staff, vehicle maintenance and insurance. It's also crucial to remember that the three-tier system mandates using distributors for alcoholic beverages . 

At BevSource, we have contacts and resources to help guide you through the distribution process, whether you're working with alcoholic or non-alcoholic beverages. 

Step Six: Ongoing Adjustments

Now that your beverages are on the shelves, it's essential to maintain and adjust your business goals as needed. As your business grows, you may need to add some or all of the following to your ongoing operations: 

• Accounting 
• Contracting with vendors
• Inventory management
• Imports and exports
• Gathering customer feedback 

While managing your beverage business can be time-consuming, BevSource can support you in this process. You'll need a team on your side who will help you grow and adapt your products , keeping trends and your target audience in mind. 

Partner With BevSource for Beverage Industry Expertise

The beverage industry is highly competitive, but you can create your own beverage and venture toward success with the right tools and strategies. As you begin your drink startup journey, consider partnering with the industry experts at BevSource. Both new and established drink visionaries turn to us for development, sourcing and production solutions. 

When you're ready to meet your beverage business goals, we'll bring in industry expertise and insights to help you strategize, problem-solve and plan for your drink's success. We'll help you scale your product with beverage creation, validation, sourcing, production and post-production services to help you reduce risk and work toward growth and profitability.

To learn more, contact us and speak to a beverage specialist today!

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How to Write Beverage Company Business Plan?

So you have read my latest blog post Why You Shouldn’t Start a Beverage Company ….and you are still keen to do it? Ok, but never complain that I didn’t warn you.

The most important step before making any serious decisions is to prepare a beverage company business plan. The business plan preparation will help you to have a better picture where you are going, what you want to reach and how you will reach it.

Moreover, beverage business plan is a document which you will be introducing to your potential investors, so it is important to do your homework and do it in a right manner. You have to show that you understand the topic and have a clear strategy to reach your goals.

Let’s start with the structure of your business plan. There is no ideal structure, however, in the majority of cases it includes these elements:

Executive Summary

• Business History
• Vision and/or Mission
• Ownership Structure
• People Involved

Industry Overview

Marketing strategy, operational plan.

• Financial Planing

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Executive summary shouldn’t be longer than one page. It’s a short introduction of your business idea (product offering, target market, unique selling proposition), business concept, key objectives of your business plan, ownership structure and management team. Actually, Executive Summary should be written last, after you’ve written the rest of your beverage business plan. So don’t hurry with it.

Business Overview

Introduce your business history, if it’s a startup then talk more about your team and your experience. Your business vision and mission. Be really clear about that, it’s very important to understand where you want to go. Especially if you are planning to introduce your business plan to the investor. They have to understand your business objectives and goals. Then it will be easier for them to build a full picture.

The industry overview is your opportunity to demonstrate industry know-how. You need to introduce the current market situation, size and growth rate of your industry. You need to identify where is actually the opportunity in your market and discuss it. Which market will you be targeting and why? Why do you believe there is an opportunity?

Here you describe your target market segments, your competition, your differentiation (USP) and your strategy. Usually, our list includes these topics

• Target consumer analysis and Consumer profile. Who is buying your product?
• Strategic Positioning, USP. Why your product should be bought? Why it‘s unique?
• Marketing Goals & Objectives, Expected results
• Marketing Mix
• Trade Marketing
• Promotional Strategic & Operational plan
• Communication planning
• Evaluation / Measurement

This is the most important part of your beverage business plan. You have to show that you know who is your consumer and you know how you will be selling your product to him.

You need to provide a detailed plan which will show how your business will be managed on daily basis. It should include your human resource plan, business location and facilities, production plan etc.

• Human Resource Plan . What team members you will require? What expertise do you need? Who will do what?
• Business Location and Facilities . Where do you plan to produce your product? Where you administration is located?
• Supply and Inventory Management . Who will your suppliers be? Are you buying raw material separately and delivering to the factory, or are you buying a final product from a manufacturer? Where will you store your product? What are the payment terms?
• Production and Distribution . Do you plan to outsource manufacturing, build your own facilities or buy a beverage manufacturer? What type of machinery do you need? What beverage manufacturing technology are you planning to use?

Financial Planning

Some believe it’s the most important section of your business plan, especially investors. So you shouldn’t look carelessly to it. You need to show at least three years worth of financial statements which will include income statements, balance sheets, monthly/yearly cash flow statements.

To sum up, it’s not a short or easy process. Sometimes companies are hiring professionals to do it for them. But it might be even more useful if you can do it yourself.

Adomas Pranevicius is the co-founder and former CEO of MyDrink Beverages. Adomas specialized in beverage concept development, start-up beverage projects, business development and brand building. His insights and ideas have been quoted in BeverageDaily.com, Soft Drinks International, Beverage World and other media sources.

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Airline CEO wants airports to cap passengers at 2 alcoholic drinks to limit on-board disruptions

Ryanair ceo suggested 'record high' flight delays have contributed to the issue.

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Ryanair CEO Michael O’Leary said airports should institute a two-drink limit on alcoholic beverages for flyers.

O’Leary believes that airports need to limit "the amount of alcohol that can be sold to any passenger to two alcoholic drinks" to help reduce instances of airline passengers becoming disruptive on flights, according to the Independent .

Ryanair is an Irish ultra low-cost carrier. (Nicolas Economou/NurPhoto via Getty Images / Getty Images)

"In the same way that you have to show your boarding pass when you go through Duty Free to buy cigarettes or alcohol, we believe you should show your boarding pass to buy an alcoholic drink at a bar at an airport, and you shouldn’t be served more than two alcoholic drinks, particularly when flights are delayed," he said.

Ryanair, an Irish ultra low-cost carrier, and other European airlines have seen a "spike" in disruptive passengers onboard planes "particularly this summer," O'Leary said in an interview with the Independent.

‘MASS BRAWL’ FORCES RYANAIR ‘FLIGHT FROM HELL’ TO MAKE EMERGENCY LANDING AFTER JUST 36 MINUTES

O’Leary suggested "record high" flight delays this summer have contributed to the issue, as some travelers visit airport bars to pass time. Air traffic control delays have contributed to flights not leaving on-time this summer, according to the Ryanair executive.

Ryanair CEO Michael O'Leary talks to media in Brussels on Tuesday. (Thierry Monasse/Getty Images / Getty Images)

Ryanair has flown 58.4 million passengers over May, June and July of this year.

Ryanair CEO Michael O’Leary suggested "record high" flight delays this summer have contributed to the issue, as some travelers visit airport bars to pass time. (Nicolas Economou/NurPhoto via Getty Images / Getty Images)

The Ryanair CEO also said he wanted to see "more effective" local fines for travelers who are removed from flights due to their disruptive behavior, according to The Independent.

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The airline has been in touch with some European governments about the issue of disruptive passengers, O’Leary said.

A fact sheet published by the International Air Transport Association reported an annual "increase in the rate of reported unruly passenger incidents."

RYANAIR FLIGHT DIVERTED AFTER MID-AIR BRAWL CREATES CHAOS: REPORTS

The rate for 2023 was one incident per 480 flights, according to the IATA. In 2022, it was one for every 568 flights.

Full of Life Nonalcoholic Beverages: Business Plan Essay

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Full of Life Company Description

Coming up with a name for a company is one of the most critical components of a successful business plan; the name has to not only attract customers but also be representative of the entire business itself and for what it stands. The business plan included in this paper relates to a non-alcoholic beverage company.

It is proposed to call the company “Full of Life.” This name instantly shows the customer that the brand is oriented on providing high-quality drinks that will not take their energy away and will not be harmful to their health (e.g. like Pepsi or Coca Cola). On the contrary, “Full of Life” is a brand name that represents a response of business to care for their customers’ health and provide them with a high-quality product.

Moreover, the name was chosen to fit the criteria of a successful brand name, which include simplicity, familiar sound, distinction, and vivid imagery (Hague, 2016). It is noteworthy to mention that Full of Life will position itself as a “green” brand that focuses on spreading awareness of the environmental issues and engaging the public into a conversation about the harmful effects of unhealthy beverages as well as the adverse impact the food and beverage industry has on the surroundings.

Mission Statement and Rationale

The mission statement for “Full of Life” will be “Creating the best product that will differ from any other on the market for bringing you energy, inspiration, and a moment to refresh your day.” The mission statement was chosen for communicating to customers that the company has the best intentions in mind when it comes to providing a product to consumers. The product will be different from any others on the market because of the unique combination of high-quality ingredients and reasonable pricing.

Moreover, it is important to mention that the mission statement does not place a focus on the “energy” component since the product is not an energy drink but a blend of locally sourced ingredients. The notion of energy will also be incorporated into the vision of the company is a somewhat different meaning – Full of Life will implement its Social Responsibility efforts to discuss the topics of the natural resource use as well as the incorporation of renewable energy for the production of refreshing beverages.

Strategic Management of Full of Life

Strategic management refers to the operation of an organization through using all available resources for meeting the set goals and objectives; it involves setting aims, analyzing the competition, evaluating the internal processes within an organization, exploring possible strategies and making sure that the management of an organization puts in all efforts necessary for successful operation. When developing the business plan for Full of Life, the mixed approach to strategic management will be implemented: both prescriptive and descriptive ways to develop a brand strategy will be used.

The purpose of the business plan is to develop a strategy to reach a large customer base that will be interested in purchasing non-alcoholic beverages that do not contain harmful ingredients. The potential for the company’s growth is vast, with more and more customers realizing the need to choose healthier beverage options over sugar-packed drinks that only harm them. Another important point to mention is that Full of Life will include the message of environmental sustainability into the strategic management of the company. The choice of packaging, ingredients, marketing, and public outreach efforts will align with the awareness of the company about the adverse impact of manufacturing on the environment.

Industry Analysis and Trends

The non-alcoholic beverage industry is among the largest and the most dynamic industries, with new trends appearing and old ones disappearing. With products being launched every day, it is imperative for a NAB business to keep up with trends and convince customers that their beverages are the best. In 2017, the NAB industry was expected to see an increase of beverages infused with plant-based proteins, sparkling water, non-alcoholic adult drinks, cold brew coffee, and cold brew tea (Kazonaite, 2016).

Non-alcoholic drinks are available in the market in a variety of forms like fruit juices, carbonated beverages, ready-to-drink teas and coffees, bottled mineral water, energy drinks, and many other variations. The concern of the global public with their health has led many consumers to review their attitudes towards alcoholic drinks and switch to non-alcoholic ones. Therefore, drinks made from natural ingredients present a great opportunity. This type of non-alcoholic beverage was chosen for the following three reasons:

• Healthy drinks were gaining momentum in 2017;
• The product will be suitable for both kids and adults;
• Opportunities for expanding the product line are endless.

The NAB industry is continually expanding, with healthy drinks becoming a priority for many consumers, as evidenced by the trends in the industry. Leading beverage manufacturers are currently working on new product launches to cater to the changing needs of consumers that are concerned with their health. The market size of NABs used to be approximately $1545 billion in 2015 and is expected to rise to $2026 billion in 2022, growing by 4.3% each year (“Global non-alcoholic beverage market,” 2017).

As to market dynamics, the NAB market is largely influenced by the changing lifestyle and preferences of the majority of consumers, as well as the demand associated with the growing population and the rise of disposable income. Awareness of customers regarding the adverse effect of artificially sweetened drinks is steadily growing, while governmental regulations for the use of potentially harmful ingredients in drinks drastically constrain the growth of the market.

For this reason, the global industry of non-alcoholic beverages has open opportunities for brands that produce “alternative” and innovative products that contain zero or low amounts of artificial sweeteners. The NAB market can be loosely divided into product types, distributions, and sales channels, as well as geography. Regarding product types, the market can be differentiated into carbonated and non-carbonated drinks. While carbonated beverages contain cola-like beverages that contain carbonated water, non-carbonated beverages include juices, tea, coffee, energy drinks, bottled water, etc. By types of sales and distribution channels, the market of NAB drinks can be differentiated into hypermarket, supermarket, specialty store, convenience store, department store, and online purchase.

Strategic Position and Risk Assessment

A company’s strategic positioning refers to the efforts of the management to create a certain kind of value as well as how that value could be created differently in comparison to the rivals. In the case of Full of Life beverages, benefit positioning is the most appropriate choice. The company will focus on communicating the unique benefits of the Full of Life drinks by highlighting the most powerful attributes that consumers value. Among such benefits are high quality, health benefits, ethical sourcing, and the home-made approach. While the majority of NAB companies focus on price positioning to stand out among competitors, Full of Life will take a unique approach and will place emphasis on the benefits of its drinks.

Risks and Their Management

The three types of risks Full of Life may face when entering the market and expanding the operations are associated with:

• Competition;
• Business plans and management strategies;
• Supply chains.

To address risks related to competition, Full of Life will focus on its brand positioning as a health-oriented company that puts customers (rather than competitors) first. To address risks associated with management and business plans, Full of Life will create a strategy to involve skilled staff, managers, and investors to develop an action plan for eliminating any issues. As to the mitigation of supply chain risks, the company will have to collaborate with only responsible parties.

SWOT Analysis

SWOT analysis is a technique businesses use for understanding their strengths, weaknesses, and identifying open opportunities and threats. The SWOT analysis for the Full of Life non-alcoholic beverages is presented in the matrix worksheet below:

Overall, it is expected that Full of Life non-alcoholic beverages will position itself as a consumer-oriented brand that produces high-quality products from natural ingredients. Starting as a small family brand, the company has an opportunity to capture new audiences and attract customers that are concerned with their health. Moreover, the ideas of environmental sustainability will be high on the agenda for the brand, so the company will invest time, efforts, and funds into educating the public and promoting healthy beverages. On the other hand, competition in the sector is rising, so it is imperative for Full of Life to develop a strategy to address the identified weaknesses and threats.

Target Market

Fry (2015) found that the market of non-alcoholic drinks was dominated by carbonated soft drinks ($70.6 billion); however, as some brands of fizzy drinks decline, the emerging “better-for-you” segments face tremendous opportunities to take a significant share of the market. Despite the skepticism around healthy drinks, the market is overflowing with opportunities (Moloughney, 2016), which points to the need for developing a high-quality product and offering it to consumers.

The market for health and wellness beverages and foods is driven by the growing recognition among scientists, consumers, and the government that diet and lifestyle play exceptional roles in addressing an extensive range of health conditions. Importantly, diseases associated with unhealthy consumption habits such as heart disease, stroke, some cancer types, diabetes, and high blood pressure are among the leading causes of mortality in the US. Moreover, the risk of developing such diseases is higher as the population ages, which points to the need to prompt this consumer segment to seek innovative and alternative products that will not hurt their health.

The key facts that need to be taken into consideration when defining the target market for Full of Life beverages are the following:

• Approximately two-thirds of American grocery shoppers have bought a beverage or a food product in order to address one or more of the many wellness and health issues. In particular, concerns associated with the management of cholesterol and poor digestion are high on the agenda of the health-aware population.
• With regards to many foods and drinks categories, “targeted health and wellness,” consumers show increased willingness to pay more for high-quality products that are better for their health.
• The reputation of ingredients used in foods and beverages is a highly significant factor to which consumers pay attention when making purchase decisions. Therefore, there is a need for health-oriented food and beverage brands to communicate the benefits of ingredients they use in a consistent, frequent, and clear manner.
• Health providers are the key sources of information for many shoppers with regards to nutrients found in food and beverages. Recommendations made by healthcare professionals are essential for consumers with specific health concerns.
• Consumers show an increased interest in conducting research about the positive and negative effects of certain ingredients in products of consumption. Websites concerned with health, nutrition, wellness, and exercising are all valuable resources for modern consumers; this also presents an opportunity for Full of Life to advertise beverages on such platforms.
• Generally, shoppers that take care of their health tend to visit a larger variety of grocery stores than the “average” consumer.

At the forefront of emerging opportunities for selling healthy drinks, there are three health-conscious demographics at which the company can target its product. These three customer segments include millennials, baby boomers, and overall health-conscious consumers (which make in total 64% of the customer demographic in the nearest areas), as found in the press release of the Packaged Facts (2014) division of MarketResearch.com. 83% of millennials see their wellness and physical health as essential components of their daily life (Goldman Sachs, 2016), which makes them highly likely to purchase Full of Life beverages that do not contain harmful ingredients. Similar to millennials, baby boomers are also exceptionally aware of their health.

Competition

The competition in the global market of non-alcoholic beverages is reported to be severe mostly in developed countries of regions such as Europe and North America. Markets in these regions tend to exhibit slow rates of growth and steady demand for innovative non-alcoholic beverages. Opportunities for growth tend to be less promising in developing regions such as the Asia-Pacific (“Global non-alcoholic beverage market,” 2017).

It is noteworthy that India and China are the two fastest growing markets for NABs since the vast population of these countries has had a positive impact on encouraging the demand. With multiple new products being launched each month and large marketing campaigns filling the media, smaller level players are challenged by the giant corporations to capture the public’s attention. For this reason, smart business strategies are high on the agenda for brands such as Full of Life.

The overall NAB marketplace is dominated by a handful of top players such as Coca-Cola Company, Danone, Nestle S.A., PepsiCo Inc., San Benedetto, and Dr. Pepper Snapple Group Inc. (“Global non-alcoholic beverage market,” 2017).

As to the market competition for Full of Life beverages, it is important to investigate brands that produce healthy beverages and market them to the similar demographic. Among the popular brands that are similar to the ideology of Full of Life, Feel Good, Infinite Health, Viva, Naked, Vitamin Water, Nomi, Kevita, and others are currently dominating the market of healthy beverages that do not include water.

Overall, the market of healthy beverages is considered a niche market within the non-alcoholic beverage sector, which is generally dominated by soft drinks such as Pepsi and Coke. In order to differentiate Full of Life beverages from competition, it is important to determine the ways in which the product stands out regarding its benefits, design, price, quality, and customer service. As to the benefits, Full of Life beverages do not contain any harmful ingredients such as preservatives and thus are beneficial for consumers’ health.

Regarding the design, Full of Live beverage bottles are made of sustainable materials such as recycled glass or cardboard, which contributes to the lower price compared to the competitors that use plastic for packaging. The quality of Full of Life beverages is the focus of the differentiation strategy because the drinks are made from locally sourced ingredients with a unique recipe developed by a small family business. Lastly, customer service is especially important for differentiating Full of Life drinks from competitors – the company will provide the round-the-clock customer support for complaints, feedback, and recommendations in order to reduce the gap between the customer and the company.

Marketing Plan & Sales Strategy

First, it is important to understand the definition of marketing vehicles and how they could help Full of Life succeed on the market. A marketing vehicle is a tool used for delivering an advertisement to the target audience (Lake, 2017). Marketing vehicles can be in print (e.g. newspapers, magazines) and digital (e.g. Google AdWords) forms. To cater to baby boomers and millennials at the same time, Full of Life should use both digital and print vehicles for conveying the message of a healthy lifestyle to all generations. The second step is the identification of specific marketing tactics to promote the brand (“The strategic marketing process: A complete guide,” 2015).

Among the key tactics is the establishment of the social media presence (a website, Facebook, Twitter, and Instagram accounts). Direct interactions with potential customers are the second tactic for brand promotion, which includes offering samples in grocery stores such as Whole Foods and Trader Joe’s. After tasting beverage samples, customers will be encouraged to give their feedback on the quality and taste of their drinks.

In order to arrange such tastings for consumers, Full of Life should collaborate with the resellers (grocery stores) of both general and health-oriented specialization. Reaching resellers will be possible with the help of online communication since the majority of modern grocery stores have a strong online presence. As to the direct sales and promotion of Full of Life beverages, in the first two months of the product launching, the company will have a hundred bottles of the beverage sent to random customers in exchange for reviews and feedback (Muldoon, 2016). Exposure is the key component of promoting Full of Life beverages, and the example of Amazon shows that providing consumers with products to get an honest review can potentially bring successful results.

As to brand exposure, social media presents an opportunity for the company to reach health-oriented “influencers” to collaborate with them for promoting Full of Life drinks. Since a large target segment of potential consumers includes millennials that follow bloggers on different social media platforms, reaching people with a large following is a smart strategy that not many beverage producers use.

Health-oriented “influencers” may include fitness trainers that post workout videos on YouTube, vegan and non-vegan bloggers that post healthy recipes of meals and drinks on their Instagram, dieticians with a large following, and other creators that put out health-positive content. Such an advertisement tool will allow Full of Life to target its products with the help of the vision of different people and how they choose to communicate the message of the brand. At the end of each campaign of working with influencers, it is crucial for the company to measure the outcomes to determine whether the audience received the advertisement positively.

Because Full of Life is a “green brand,” a lot of the marketing efforts will be associated with engaging the public in the conversation about the environment and what the company does to reduce the negative impact of the beverages’ production.

Full of Life will take part or organize charity and other social events associated with the issues of environmental sustainability and will promote the brand through communicating its values and ideas to the public. Such activities a more likely to increase awareness of the brand and position Full of Life beverages as products that spread a positive message of the environmentalist identity and healthy lifestyle choices.

Regarding the 5Fs (function, finances, freedom, feelings, and future), Full of Life drinks will include beneficial ingredients such as fresh spring water and locally sourced fruit that will act as refreshers during the day (function), will cost less compared to competitors (finances); the product will be available both online and in physical stores (freedom) to allow consumers embrace a healthy lifestyle (feelings). Full of Life is looking to stay in business and expand for promoting the message of positivity and health (future).

Marketing Plan Budget

The spreadsheet presented below includes the year-long budget for Full of Life beverages divided by month. What is important to mention is that December will be the focus of the marketing efforts for the company due to holidays, which means more families are getting together to watch TV and go shopping. July, October, and December will be important for marketing the product to customers directly (during tastings and sample sharing) since these months are associated with holidays as well.

Ethics and Social Responsibility Plan

First, it is important to mention that ethics and social responsibility are essential components of any business endeavor; moreover, they influence companies’ organizational identities. In the area of economic marketplaces, companies are responsible for the ethical and socially responsible operation. On the other hand, ethics are not included in the plan for achieving specific goals; rather, it is a component of the logic that a company uses to take action.

In the case of Full of Life, a company that operates on the principles of using locally sourced ingredients, collaborating with small farmers, and producing beverages that only have a positive influence on customers’ wellbeing, ethics, and social responsibility play even a larger role. The ethics and social responsibility plan for Full of Life will incorporate such strategies as voluntary hazard elimination, community development, philanthropy, social education and awareness, as well as social education and awareness regarding environment issues. Regarding the public, the plan will include strategies such as creating jobs, fair and honest treatment of employees, and nondiscriminatory practices.

Voluntary Hazard Elimination

The strategy of voluntary hazard elimination implies businesses taking action to reduce and eliminate practices of manufacturing that may have an adverse impact on the public regardless of whether or not such practices are considered harmful by law. Since Full of Life can be regarded as a “greener” business compared to others (e.g., the packaging is made from the recycled and recyclable material, the beverage does not contain any harmful ingredients, etc.), the issue of waste disposal is not as high on the agenda.

However, the problem of energy use remains. It is expected that Full of Life will use renewable energy sources such as solar energy for production. Such choice aligns with the values of the company to remain environmentally sustainable while it also relieves the burden of using natural resources that cannot be renewed.

Community Development

The operation of Full of Life will also be associated with collaborating with appropriate institutions to create a better local environment for work and life. Such institutions can include local environmental organizations, worker cooperatives, educational institutions, and other local businesses that share the same values. Full of Life will also participate in educating the public on the importance of a healthy lifestyle, environmental sustainability, and ethical sourcing.

Philanthropy

This strategy is associated with making monetary contributions to help local educational, charitable, health- and work-related organizations for assisting the under-served communities in the area. The beginning stages of the company’s development are likely not to allow make generous monetary donations to help those in need. For this reason, Full of Life may provide education for the public and create jobs for the unemployed.

Social Education and Awareness

The strategy of social education and awareness implies the implementation of use positioning for exerting pressure on other business to adopt socially responsible practices. Full of Life is considered a “green” company that has knowledge of the most useful and sustainable practices a business could use. For example, Full of Life may use social media for demonstrating the sustainable practices the company uses for exposing companies with potentially harmful activities. This will encourage the public to engage in a dialogue for the development of social community awareness. Consequently, social community awareness is expected to have a positive influence on reaching social education and awareness goals.

Creating Jobs

According to Hoffman (2013), employment should be considered a pillar of Corporate Social Responsibility since lack of jobs for the community have a devastating economic effect. For this reason, as the operations of Full of Life grow, the company will invest in creating jobs for the local community to address the issue of unemployment.

Fair and Honest Treatment of Employees

For ensuring smooth performance in the workplace and making employees productive and satisfied, Full of Life will implement fair and honest treatment strategies. Fairness in the workplace implies developing trust from employees for them to be more effective when working towards individual or group goals. Fairness practices may include “the golden rule” (treating everyone as one would like to be treated), not choosing favorite employees, not taking advantage, modeling appropriate rules and behaviors, changing the existing rules to ensure fair treatment, and being honest. The management of Full of Life will be instructed to tell employees how to do things and why they should be done, why a specific procedure should be put into place, and so on. Being honest with workers equals to treating them fairly and respectfully.

As to the more specific actions targeted at making the workplace fair, the management at Full of Life is expected to establish common rules for all workers (e.g., criteria for performance reviews, bonuses, promotions, raises, disciplinary action, and qualification for various benefits). Moreover, it is important to introduce equal footing, which means that employees with similar skills and abilities should be treated uniformly.

Other beneficial practice for ensuring fair treatment of employees will include giving workers opportunities to express their opinions, sharing new ideas and grievances, and appeal decisions or actions they see as unfair. Lastly, giving credit to the smart ideas of employees is another fair practice that Full of Life is expected to implement.

Non-Discriminatory Practices

As an ethical employer, Full of Life will introduce non-discriminatory practices to make sure that workers of all genders, cultural backgrounds, religions, races, and physical capabilities are included in the workplace and are valued for their skills and potential rather than any other characteristics.

Full of Life will be devoted to basing employment relationships on the principles of fairness and equal opportunities without discriminating with regards to all aspects of the employment relationships, such as recruitment and hiring, compensation, work conditions and terms of employment, training, promotion, discipline, and others (EBRD, n.d.). It is also important to mention that the management will pay attention to the discriminatory moods within relationships between employees to make sure that no discrimination is accepted or tolerated.

Following the topic of discriminatory practices, Full of Life will make sure to increase the diversity of the work force. While there is no perfect practice to do so without unintentionally developing “reverse discrimination,” it is crucial for the management of the company to focus on recruiting employees that are skillful regardless of their diverse background.

Following Jurisdiction Laws and the Impact of Full of Life Beverages

As to the compliance of Full of Life with the laws of every jurisdiction it operates, it is expected that a business supplying food or drinks obtains the appropriate health permits and undergoes initial and periodic inspections. Furthermore, it is recommended to pay attention to land usage laws regardless of the business type to make sure that the production plant is not affecting the local area.

While many beverage products can have an adverse effect on the health of both children and adults, the message that Full of Life beverages spread is opposite. As mentioned previously, Full of Life focuses on producing beverages that are made from high-quality local ingredients through cooperating with farmers and producers. The beverages contain minimum amounts of sugar and other substances in order to enhance the natural flavors of fruit and vegetables.

Furthermore, the range of the beverages available for purchase will depend on the selection of seasonal products; for example, apple or pumpkin drinks will be sold during the fall season while peach or berry drinks will be sold during the summer months. This allows the company to have more variety in the range of beverages and prove to the customers that locally sourced ingredients make the best drinks. Therefore, it is expected that the impact of Full of Life beverages will be predominantly positive due to smart brand positioning and attention to environmental sustainability, which many food or beverage brands tend to overlook.

It is noteworthy that no potential negative effects of Full of Life beverages have been identified yet. The company promotes a healthy lifestyle to the public and encourages other beverage brands to join the “green” movement and pay more attention to what they produce and what impact the production has on the environment. The usage of energy resources for manufacturing could be considered an adverse effect; however, the next investment into solar energy batteries will be a solution to this issue.

Concluding Remarks

The business plan presented in this paper focused on exploring vast opportunities for a non-alcoholic beverage brand that uses natural ingredients that have a positive influence on consumers’ health. It has been identified that the possibilities for Full of Life beverages are extensive, especially with the rising awareness of many shoppers to choose healthier options of consumable products in grocery stores.

Millennials and baby boomers have shown to be the most prospective target demographics for the company: while baby boomers opt for healthy beverages due to rising health concerns, millennials tend to follow healthy lifestyle trends, especially when they are heavily advertised in the media. Both traditional and alternative marketing efforts will be used to promote the beverages: TV and magazine ads will predominantly target the older generation of the audience while social media ads and collaborations with influencers will be aimed at millennials.

Lastly, the ethics and social responsibility efforts outlined in the business plan will be very prominent for Full of Life – the company will invest into spreading the message of health positivity and environmental sustainability while creating jobs for locals and educating the public. It is expected that the brand will continue expanding its product line, reach broader audiences, and hire professionals to extend the business.

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IvyPanda. (2020, August 31). Full of Life Nonalcoholic Beverages: Business Plan. https://ivypanda.com/essays/full-of-life-nonalcoholic-beverages-business-plan/

"Full of Life Nonalcoholic Beverages: Business Plan." IvyPanda , 31 Aug. 2020, ivypanda.com/essays/full-of-life-nonalcoholic-beverages-business-plan/.

IvyPanda . (2020) 'Full of Life Nonalcoholic Beverages: Business Plan'. 31 August.

IvyPanda . 2020. "Full of Life Nonalcoholic Beverages: Business Plan." August 31, 2020. https://ivypanda.com/essays/full-of-life-nonalcoholic-beverages-business-plan/.

1. IvyPanda . "Full of Life Nonalcoholic Beverages: Business Plan." August 31, 2020. https://ivypanda.com/essays/full-of-life-nonalcoholic-beverages-business-plan/.

Bibliography

IvyPanda . "Full of Life Nonalcoholic Beverages: Business Plan." August 31, 2020. https://ivypanda.com/essays/full-of-life-nonalcoholic-beverages-business-plan/.

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American Airlines will resume alcohol sales on flights starting April 18

American Airlines  said Thursday it will resume sales of alcoholic beverages on domestic and short-haul international flights next month, a plan it delayed almost a year ago because of a surge in  unruly passengers  and attacks on crew members.

Airlines stopped selling alcohol and paused food sales and service in March 2020, when the pandemic started and travel demand plunged. Carriers have been steadily bringing back many of those services over the past year as travelers  returned  in droves.

American is the last major U.S. carrier to bring back sales of beer, wine and spirits, which it will sell in its domestic coach cabins starting April 18, the date the current federal mask mandate expires. It isn’t clear whether the Biden administration will extend or end the requirement.  Southwest Airlines  restarted alcohol sales last month.

Drinking and disputes over the mask mandate have contributed to unruly behavior on flights, flight attendant unions have said.

Sales will be available on American flights longer than 250 miles. Alcoholic beverages are complimentary on American’s long-haul international flights and in first class, as it is on other major airlines.

American and Southwest last May scrapped plans to start selling alcohol again after a surge in disruptive passengers and attacks on crew, including a Southwest traveler who punched a flight attendant.

American isn’t raising prices compared with the before the pandemic, a spokeswoman told CNBC. Spirits such as new arrival Aviation Gin, rum, vodka and whiskey will be $9. Wine servings are also $9. Beer is $8.

American is also bringing back buy-on-board food, which will start with flights longer than 1,500 miles, about three-and-a-half hours, starting with chips and almonds. The airline says it will start offering touchless ordering later this year.

Last month, American and  Delta Air Lines  announced the return of hot meals to first class on many domestic flights.

Restaurants, Food and Drink | Owners of Hampden’s Bluebird Cocktail Room plan…

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Restaurants, food and drink, restaurants, food and drink | owners of hampden’s bluebird cocktail room plan 20-seat restaurant on the eastern shore.

Though not quite on that frenzied scale, Benkert, the co-owner of Hampden’s Bluebird Cocktail Room, knows a thing or two about a mad rush. On busy nights at the Bluebird, when there’s a wait out the door, there’s no time for chatting with customers or basking in the bar’s low-lit ambiance.

For his next project, a new and intimate restaurant on the Eastern Shore, he intends to take it slow.

“It’s a zen kitchen: there’s no ticket printer, no chaos,” he said. “I want to have a conversation with people. It’s just one meal, one night.”

Benkert and his wife and business partner, Caroline, plan to open Sassafras in Kent County next spring. The restaurant takes its name from the Sassafras River, which merges with the Chesapeake Bay nearby.

Sassafras will take over a cottage-shaped building in Betterton that used to belong to a restaurant called Barbara’s on the Bay. The Benkerts, who moved to the Eastern Shore a year and a half ago with their daughters in search of a slower life, have purchased the restaurant space and are planning to outfit it with a second kitchen, a wood-burning oven and a chef’s counter.

They plan to offer just one dinner service, limited to 20 people, per night. The 12-course menu will be set at a fixed price of about $150 per person.

Paul Benkert, who will serve as the restaurant’s chef, says the focus will be “fine Chesapeake cookery”: seafood from the Bay, local waterfowl during hunting season and produce foraged or grown by area farmers. The only non-local ingredient on his list, so far, is wild-caught caviar from the Mississippi River.

The couple are taking inspiration for the restaurant from The Lost Kitchen, a rustic, 40-seat fine dining spot in Freedom, Maine.

“We really like that style — an intimate dinner party that is sustainable for our lives,” Paul said.

To fund improvements and open inventory for Sassafras, they’ve launched a campaign on Honeycomb Credit, a crowd-sourced investment platform. Investors earn an interest rate of 13.75% under the agreement.

The Benkerts are looking to raise between $60,000 and $124,000; as of Wednesday, 24 investors had pledged a total of $24,600 to the project.

The couple will continue to operate The Bluebird Cocktail Room in addition to Sassafras. They previously owned a pizzeria in Urbana called Manina, but it shut down in January 2023.

The closure was primarily due to slow traffic, Paul said, “We’ve wracked our brains endlessly for the reason. There’s many, many reasons, but I think it all comes down to location. From the start, we just didn’t have people walking through the door.”

Though he sometimes worries about a similar fate befalling Sassafras, which is set in an even more remote spot, he said he and Caroline are in a better position to control expenses as owners of the building. In addition to the Benkerts, the restaurant will only employ a handful of other staff.

As the Eastern Shore’s culinary scene starts to garner more attention — chef Harley Peet of Bas Rouge in Easton won a James Beard Award earlier this summer, for instance — Paul Benkert said he hopes Sassafras will find an audience.

“After having successes and failures, we just want to tell an amazing story in a small way,” he said.

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