How To Start A Drink Company

How To Start A Drink Company: The Ultimate Guide For 2022

Pranav Hooda
By Pranav Hooda 18 Min Read

Our society has progressively adopted a new wave of entrepreneurship for the time being. Starting a new business has never been more accessible to ordinary individuals. This article will talk about how to start a drink company and act as a guide for the same. 

The beverage industry has always been fast-paced and competitive. With millions of various types of drinks on the market, it’s challenging for new and smaller firms to grow and prosper over time.

Assume you’re developing a drink startup concept. This article will show you How to start a drink company in only a few strategic stages.


The drink industry (sometimes known as the beverage industry) encompasses many beverages, notably ready-to-drink. The liquid refreshment might be canned or bottled (plastic or glass), hot-fill or cold-fill, natural or conventional.

Manufacturing, distributing, retailing, wholesaling, exporting, OEM, and marketing are vital industries in the beverage industry.

Assume you’ve already developed a fantastic beverage recipe or a novel drink concept. The next step is to take your items on the road to entrepreneurship and build your own beverage company!

Doing business in the beverage industry is likely to yield many lucrative chances. However, only those entrepreneurs who can gain in-depth product expertise and client insights would be able to succeed.

1. Research the market

The first step in starting a drink company is researching the market. Many businesses begin without conducting a thorough market analysis, and the results are not so good, and it can also hamper the company’s management. 

To avoid a terrible scenario like this, you must first understand the market size, type of market, market share, niche, market rivals, etc.

What are the sources of this invaluable data? Purchasing market reports are the most dependable choice. If you don’t want to spend a lot of money, online tools (Google Keyword Planner, Google Trends, Google Surveys) are a better option.

You can only start your firm when thoroughly researching and comprehending your market.

You begin with your first product concept, but you must also evaluate all aspects of the beverage sector. 

2. Assemble a strong field team

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Your mobile staff is critical to your success since they will be the face of your product and company in the field. To put together a good field squad, you must first select the correct representatives. 

When you’re interviewing, seek people who share your excitement and commitment to your goals. You want to develop a positive culture inside your team once you’ve located the proper people to make up your team. 

Because mobile salespeople typically work alone, it’s critical that everyone feels linked to one another and the firm. 

Mobile CRM or food distribution software is an excellent tool for keeping reps and management in touch. Remote team tracking software can also help your team develop a culture of accountability and excellence.

3. Take the time to write your business plan.

The value of a business plan should not be underestimated. This plan will not only help you with marketing and sales after the product is out, but it may also help you decide whether the procedure is worthwhile. 

When working through the various aspects of a business plan, you must be able to answer critical business questions and essential research facts. You may realize during the process that your business is more expensive than you thought or that it will take a little longer than you anticipated. 

You will have a strong foundation for success if you can see your firm plan through to completion.

You’ll be able to see your company’s overall picture. This will allow you to make better decisions, position you for growth as your business expands, and help you in How to start a drink company.

4. Recipes being tested

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The foremost step in how to start a drink company would be recipes because this is the initial important thing. While you may be known for a specific drink that all of your friends enjoy, it is worthwhile to devote time to developing your recipe for your first product concept and other possible items. 

To get feedback, have sampling parties with your friends and the family. Bring your product to the public eye to obtain more feedback. 

Ask a local grocery store for permission to conduct a Saturday morning taste test with its customers. The more feedback you have about your customers’ opinions of your items, the better product you can create. 

Listen to them and make a list of all the things they suggest. Talk to the people to better understand what your product needs to succeed.

The character and individuality of your product should be reflected in your logo. If you aren’t a graphic designer, hire someone who is to create your logo and other visuals, so they seem professional and tidy. 

You could want to build a primary corporate logo and separate logos for each product. Make your selection early, so you don’t have to change your mind once the product is on the market.

Creating bottle designs

Creating bottle designs is the next step of how to start a drink company. Some well-known beverage brands can be identified merely by the bottle design. 

Please don’t overlook the process of selecting the perfect bottle for your product, as it may become a signature appearance for you. Juice bottles, soda bottles, and water bottles all have a similar look, but now is the time to mold and choose a distinctive bottle design to draw in more customers. 

Create an instantly recognizable signature appearance, and the look will sell itself.

Create fantastic packaging

The way your product looks is crucial to its identity. Spend time creating a high-quality product with a pleasing appearance and feel. Check out these suggestions for current packaging trends. 

But don’t forget about the practical aspects of packing. Consider how your product will fit on a shelf or display and whether the form and size are appropriate.

6. Understanding Your Financial Situation

The next major step of how to start a drink company is to understand your financial situation and work accordingly. Any new company’s financial performance is critical. It’s crucial to know how much time and money it takes to manufacture and sell your products. 

For many entrepreneurs, the initial launch expenditures are a deal-breaker. If you go over your business plan and fill in all of the blanks, you’ll know exactly how much money you’ll need to invest upfront and during the sales process.

How much money do you have to put down? Determine how much money you have to invest if you wish to bootstrap your firm. Make careful to factor in your expenses, especially if you intend to sell your beverage product full-time and have no other revenue.

Will you require outside funding? You’ll need to look into investing options if you don’t have the finances to get started and keep going. To discuss receiving a business loan, you may need to meet with a bank representative. You might need the help of seasoned investors searching for a good return on their money. 

You might also begin by asking friends and family members to invest in your company as soon as feasible. To avoid issues later on when your product sales take off, whatever technique you decide to gather funds, make sure it’s done professionally, and legally. 

If you have a clear and specific business strategy, you will have a higher chance of attracting interested partners to your company.

7. Legalities

To start a drink company, you should ensure that your facts and statistics are correct and lawful and contact an expert attorney and accountant while drafting your company’s strategy. You’ll need to consider a few legal considerations before your product hits the market.

Do you run your business on your own? Considering forming a partnership or a corporation? If this is your sole source of income, you can make your judgments. It’s critical to establish your firm appropriately, whether you’re working on beverage items and brands with one or more individuals. A lawyer or accountant can assist you in determining your legal choices for starting a business.

As you are starting a company, you have to make financial and legal decisions related to the drinking company.

The first decision you’ll have to make is whether to form an LLC, a limited liability business (S-Corp), or a corporation (C-Corp).

When starting a small business, these three options are the most common and get profits as dividends. They preserve your assets while also providing you with tax benefits.

  • LLC: The LLC personal income tax return is used to disclose all business revenue and costs.
  • S corporation: Owners pay themselves salaries and get profits as dividends. You can learn more regarding S Corporation here.
  • C Corporation: C Corporations are legal entities that file their tax returns. There is no income tax paid at the corporate level, and any tax owed is paid at the owners’ expense individually.

Depending on where you’re doing business, you’ll also want to think about getting the proper permits, licenses, and liability insurance.

8. Ensure that licenses and permits are transparent

The next step of how to start a drink company is to obtain licenses and permits. An operating permit is required for any firm, not simply those in the beverage industry. 

Permitting can take a lot longer than you expect. As a result, many firms find themselves in the dilemma of not having an official operating license when the management agency does a check. On the other hand, this issue should be a top priority for new businesses.

The application process for a federal license in the United States might take many months. The necessary permits will differ depending on the type of business. 

When a corporation needs to give specifics about the production process, product materials, and other excise tax issues, the documentation and procedures for license registration become significantly more demanding for an alcoholic beverage maker.

 Here are some licenses which will help you open a drinking company.

Obtain a Business Licence

You may need to apply for licences and permits from the state, county, and municipal agencies, such as a state sales tax permit, health permits from a health department, and planning permits from the city.

Look for information from your state or the SBA office in your area that compiles. In one place, you’ll get all of the information you need. Step-by-step guides in your form may walk you through the process and provide links to the applications you’ll need on various websites.

Obtain an Employer Tax Identification Number (ETIN)

Your federal tax ID number may be required on your business license application, depending on how your state handles company licensing.

For this, you’ll need a federal employer identification number. Sole proprietors without employees can use their Social Security numbers instead of a tax ID number, but all other businesses require a national employer ID number or EIN.

The IRS allows you to apply for an EIN online. It’s a simple process, and you’ll get your number right away.

Federal Licences

Various industries, such as alcohol, are regulated by the U.S. government and require a national licence or permit from The Small Business Administration, which lists where to apply to get one of those licences or permits if your business falls into specific categories listed on their website.

These are a few licences which would help in starting up a drinking company.

Change and evolve

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The food and beverage sector is ever-changing and adapting to consumer demand. Health beverages and energy drinks are examples of trends that come and go. You ensure the success of your product by basing decisions on client input. 

It would be best to create opportunities for customers to interact with you. You must improve and adjust your product over time in response to customer input. Customer feedback will steer you to your next steps – what will you build on? What are you going to cut back on?

A few examples of drinking companies

Here are a few examples of drinking companies that would help you in how to start a drink company.

Dr. Pepper Keurig Inc.


Keurig Dr. Pepper is a beverage corporation that operates in four United States and overseas sectors. Single-serve brewing systems and specialty coffee are available from The Coffee Systems in homes, businesses, and restaurants.

Packaged Beverages manufactures and distributes packaged beverages under its own and private label brands.

Beverage Concentrates is a company that makes and sells concentrated drinks. Bottled water, vegetable juice, carbonated mineral water, and flavored carbonated soft drinks are available in the Latin America Beverages market (CSD).

Nestlé SA is a food and beverage company based in France



Nestlé is a firm that focuses on nutrition, health, and wellness. Prepared dishes and culinary tools, infant foods and cereals, milk-based products, medications, ophthalmic goods, and other items are among the company’s many offerings.

Powdered and liquid beverages, water, milk products, ice cream, nutrition and health research, prepared foods and culinary assistance, confectionery, and pet care are all part of the company’s product portfolio.

Tan Do Refreshing Water Co., Ltd.

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It is a company that produces refreshing water. Tan Do is a significant beverage production company in Vietnam, founded in 1996. By providing nutrient-dense product lines created with high-quality components, Tan Do improves consumers’ living standards.

Tan Do is well-known for its private-label (OEM) services for customers worldwide.

Last Thoughts

To conclude, newcomers and established enterprises confront numerous obstacles in trading this particular beverage product. Although the beverage sector is fiercely competitive, you can succeed as an entrepreneur if you have the right product and a great business strategy

You have numerous opportunities to convert a decent concept into a goldmine with research and hard work. Read the backstories of today’s most popular goods for motivation to keep following your ambition.

We hope you enjoyed reading how to start a drink company and found this article helpful and entertaining. 

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Posted by Pranav Hooda
Pranav is a serial explorer of new ideas and internal thought, a visionary and a transformational thinker. He launched his first business at the age of 21, while still learning about it in college. He hustled from the bottom and worked hard to build his company Orento Group. He has been on the forefront of transforming innovation in various industries such as marketing, finance, education and social entrepreneurship. Today he’s an investor, mentor, and speaker who has helped many entrepreneurs to find their vision and start their journey.
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