Energy Drinks Business
The first step to start energy drinks business is learning the trade. According to recent survey majority of energy drink consumers are in the age range of 25 – 40 years of age. Domestic market for energy drinks in the United States of America is approximately 15 billion dollars industry in 2019.
Once you have determined the type of business next invest in a business plan. You need to register the business name and incorporate to make it an approved business entity. Here are simple steps guide to planning an energy drink business.
The business plan should include startup costs, target market, cost of product, brand name. Average cost of a small enterprise is $120,000 dollars which includes cost of small line plant, lease, cost of raw materials, labor. Target market are people in the age range of 25 – 40.
What are energy drinks?
Energy drinks are soft drinks that contain high percentage of sugar, stimulants or caffeine. Typically consume by sport or fitness persons after excision activities.
They are drank to overcome the natural process of tiredness by invigorating the body. Although they boost energy, increases concentration or alertness however frequent consumption might have harmful health consequences.
Popular energy drinks
The primary ingredient of energy drinks is caffeine. Popular energy drinks are Jolt, red bull 80mg caffeine, full throttle 160mg , monster 160mg,NOS. others include AMP 142mg, 5-Hour Energy 200mg, Rockstar 160mg to mention a few.
- red bull 80mg caffeine
- full throttle 160mg
- monster 160mg
- AMP 142mg
- 5-Hour Energy 200mg
- Rockstar 160mg
Steps to start an energy drinks business
Define the brand/learn the trade
It is important to define the brand with effective promotion and marketing. Hire professionals with education in chemistry of energy drinks including machine operators.
Learn the trade through mentorship, become an apprentice, trade school. Other resources include online tutelage or gain working experience in an energy drink company.
Learn the trade
- become an apprentice
- go to trade school
- online tutelage
- gain working experience
The business is capital intensive and requires good amount of money. To raise funds approach a commercial bank or trade bank for loans. Make sure the business loan is long termed low interest.
Ingredients in energy drinks
Manufacturers of energy need to source quality ingredients for the manufacturer. Common ingredients in energy drinks are caffeine the primary ingredient and sugar.
Others are herbal extracts like Guarana, ginseng, amino acid derivatives and vitamin B. More include artificial flavors, preservatives like potassium sorbate, sodium benzoate, and vitamin C/E.
We have mild acids like phosphoric acid while herbal extracts are used to add more caffeine in the mix. There are however some energy drinks that don’t contain sugar and are low in carbohydrate.
- Food additives
- Preservatives -potassium benzoate
- Amino acid derivatives
- Vitamin B
- Artificial flavors
- Vitamin C/E
- Colorant- allure red
- Aciduants-lactic acid
Energy drink making machine
Aluminum beverage cans energy drink filling machine is the main production line equipment used in making energy drinks. It is used to make vitamin drinks, beverage drinks, sports drinks or non-carbonated drinks.
The production line energy drink filling machine is automated has complete control system and compact structure. It has capacity to change bottles shape is easily cleaned has high speed filling valve system. It uses magnetic torque device for capping, production counting system including bottle block with advanced touch screen. Bottle making equipment is blow moulding machine, labelling, packaging.
- energy drink filling machine
- complete control system
- high speed filling valve system
- magnetic torque device for capping
- production counting system
- advanced touch screen
- bottle making equipment
- blow moulding machine
How energy drinks business makes money
The primary source of income for energy drinks companies is the sale of the products. Chargers depends on cost of production with profit estimates at 5%.
Form a limited liability company including Doing business license. Then register for taxes apply for EIN, open a business account separate from personal account. Makes sure to get a business credit card, setup business accounting, obtain necessary permits and licensing.
Another requirement is federal business license, state license, sales tax and join a business association related to your industry. If you are operating from your own premises you need a certificate of occupancy and fall local health department regulations.
Don’t forget business insurance like general liability insurance, workers compensation insurance.
Legal requirements for energy drink business
- Form a limited liability company
- Doing business license
- Apply for EIN
- Open a business account
- Get a business credit card
- Obtain necessary permits and licensing.
- Join a business association
- Certificate of occupancy
- Don’t forget general liability insurance
- Workers compensation insurance
More on energy drink business
Energy drink business is very challenging because of many brands in the market. Large corporations have already cornered the market therefore small hold companies face an uphill task. Apart from high net worth operators the business is highly saturated.
However demand for the product is high giving room for middle to small companies. To differentiate the drink use effective brand, produce quality product with lots of marketing. it is better to carve a niche and focus on local market.
Things to consider
Things to consider in energy drink business is adequate funding, proper equipment, product research and development.
Most Popular Energy Drink Brands
Energy drinks are filled with sugar, caffeine 80mg -300mg of caffeine- and soda. They are meant to boost energy throughout the day. Although there are energy drinks with different ingredients most contain lots of coffee. Most popular energy drinks are red bull, monster, rockstar, Nos, Xylence,Amp,
Energy Drink Line Machine
The type of production line energy drink machine to consider should be fully automatic. Common type is volumetric filling machine for liquid. Use multi-head filling valve head with feed cylinder or single room feeder. Make sure the dosing device is rotor.
- Volumetric filling machine
- Fully automatic grade
- Liquid material
- Filling valve multi-head
- Feed Cylinder Structure Single-Room Feeding
- Dosing Device Rotor type
The market is highly competitive therefore effective marketing strategy is applied. Use clever marketing strategies, network with nationwide distributors and use appropriate branding. Make sure the brand name is catchy easy to remember and add visually appealing can-packaging.
Advertise on television, radio, print media and online. Focus the campaign towards young adults from 25 years to 45 years of age. Other potential customers are sports people, health/fitness enthusiasts.