Starting a Beverage Company

What you should do before starting a beverage company?

Functional DrinksA lot of beverage entrepreneurs tend to make similar mistakes when starting their beverage business. Often they have not analyzed their market well enough, determined their positioning strategy, or have enough financing yet. It’s important to understand that before starting a beverage company a lot of research and analysis should be done. So what you should do before starting a beverage company?

Market analysis

It is critical to know your market. Is your market size increasing or decreasing? Is it a fragmented market or not? Why not? Buy market reports to get in-depth analyses of your market segment or use online tools to conduct your own market research. Only when you will know and understand your market you can move to the second step, answering these questions:


What’s your product?
How does it differentiate from competitors?
What’s the competitive advantage?
What value does your competitive advantage give your brand?
Is there a need in the market for your product?
What is your merchandising strategy?
Do you have a market entrance strategy?
What are your main sales channels? What is your sales strategy? Are you planning to use distributor services?
Do you have a target consumer? Who are they? How are you planning to reach him?


Do you have a recipe/formulation? Are you planning to use the services of a beverage development company?
Do you know what kind of ingredients you will be using? How well known are they to the general public?
Are you planning to bottle/manufacture the product by yourself or are you planning to use co-packer?
What kind of packaging will your product come in?
How much product you are willing to produce and start with?


Do you have enough capital to launch your product into the market?
Are you planning to raise money from investors? How do you plan to do that?
Do you know your break-even point?

There are always many more questions to answer, but this is a good starting point.

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