And now, after the announcement of Vitaminwater selling for $4.1 billion dollars everyone wants a peace of the action.
Everyone can start their own Energy Drink or New Age Beverage. The barrier of entry to get into the market is not very high. You don't need to have millions of dollars to start your own energy drink. You do need some money but you need more vision and work.
Why passion and elbow grease? Well, just because you bottle your Energy Drink does not mean you'll sell it. Distributors get hundreds of calls per month from new energy drinks, or "JAED" (Just Another Energy Drink). Do something different! Target new people, create a new package, not jus another energy drink. Don't just say "I have the best flavor" or "it tastes better than red bull". Having a better tasting energy drink is not the basis for a new company. It is very easy to have a better tasting energy drink.
You need passion and elbow grease. You need to believe in your products and that you will succeed. You need to see the project through. You also need to put the work in. Just because you have some cases made of energy drinks it does not mean you'll sell them. You need something else. You need to make calls, visit people, make it happen.
. You have to realize that Vitamin Water is not the first company to get big cash for their brand. The energy drink and beverage industry is super hot. New companies are started every day. We have gotten at least 2,000 phone calls or emails from new ventures. Many companies that you now think as the market leaders started not long ago as start-ups.
Besides the big news companies like Vitaminwater you can find many companies getting funding, selling or going public. Not to mention many more companies that received funding or went public.
Other companies like Reeds Beverage, Who's Your Daddy, Jones Soda and Hensen with Monster Energy Drink access funding through the public markets. There are many companies going public, getting funding, selling, starting energy drinks.
I get a lot of calls from entrepreneurs starting their energy drinks and many more from investors looking to invest in companies or performing due diligence. At the moment I have at least 100 people contacting me every month wanting to know about the New Age Beverage Industry, Energy Drinks, how to get distribution, how to export, how to bottle drinks or to go over business plans or other information. The industry is growing and the category is growing even faster
Now let me tell you a bit about Energy Drinks. Energy Drinks are the new Super Profitable products. Everybody makes money, the manufacturer, the distributor and the retailer. You see, Energy Drinks sell for $1.99 to $2.40 at the stores for 8 to 16 ounces. This is incredible if you consider that you can buy a soda that's the same size for $0.50 to $0.75. Even a 20 ounce soda runs you about $1.25.
Distributors love the product because they make about $8 per every case they sell compared with about $2 to $4 for their other products. Retailers love it because they can make from $16 to $20 per case.
This business is work, but there is a lot of profit in it and even more fun. You have special events, parties, promotions, and you can spin and position your products the way you want, having fun in the process.
If you haven't already seen the latest beverages on your local store shelves, you've been missing out on a profitable opportunity. Once limited to health food stores and fitness supplement retailers, energy drinks are becoming the latest way to quickly and easily make a profit as an Energy Drink Brand, distributor or wholesaler.
The industry has grown 700% in the last 5 years and still growing at up to 72% every single year.
The energy drink industry is booming because of the current attention to new brands, non-coffee drinkers, health and fitness and the help of Red Bull, Monster Energy Drink and Rock star Energy Drink. As people have become more interested in making their bodies feel healthier, more aware and happier, the beverage industry has looked for a way to bottle these intentions and create a portable way for people to be more energetic and profits have been bigger than ever.
It used to be that energy drinks were limited to those with caffeine ? coffee, tea, and caffeinated carbonated beverages. However, this was a limited scope to the beverage industry and often created sagging profits for retailers. People just wanted more choices to their beverages and were becoming bored with what they already knew. But some manufacturers realized that supplement use was growing and wondered how they might be able to use that interest to their advantage.
By adding certain vitamins and minerals to traditional beverages, manufacturers saw exponential growth in their drink sales. Not only were people drawn to the enhanced products, but they were also willing to pay top dollar for the added benefits. Drinks that would normally cost a customer a dollar were now able to be sold for three and four dollars. Coffee houses have been doing this for years, but the bottled drink industry now realized how profitable it could be.
Adding more caffeine wasn't the only option either. Manufacturers found that adding things like guarnine and taurine gave drinks the appeal of helping with endurance and energy, while things like artificial sweeteners could help to be advertised as diet enhancing drinks. With fruity flavors, they could also be marketed to younger age groups as well.
What's more interesting is the fact that the energy drink industry continues to expand without slowing down in sales. Even with the many choices that are available, people are still buying energy drinks in large quantities. You can also find these drinks in a number of places, which adds to their overall profit capability. Gas stations, grocery stores, and even schools are now carrying the energy drinks as they seem to be ?healthier' than sodas and much more appealing.
The energy drink trend is also becoming stylish among the younger age groups. Instead of carrying around a typical soda bottle, people feel much more hip carrying around a nicely labeled energy drink. The sleek look creates interest in the drink and even helps to advertise it as the drinker carries it around. Bars are even stocking energy drinks and creating new mixed cocktails with the drink as a main ingredient.
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