Energy Drink Distributor Business Plan and SWOT Analysis

Energy Drink Distributor Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Energy Drink Distributor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Energy Drink Distributor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Energy drinks have exploded in popularity over the past 15 years. The growth of major brands including 5 Hour Energy, Monster Energy, Red Bull, and related products have taken the market by storm. In fact, the production of energy drinks is now a $10 billion your business. As such, a number of energy drink distributors have entered the market with products produced by third parties as well as proprietary early manufactured products. The demand for energy beverages is expected to continue as more and more people are turning away from coffee and tea in favor of a faster way of receiving a caffeinated beverage. One of the newest trends within this industry is to create energy drink shots rather than standard 12 ounce beverages. This trend is expected to continue in perpetuity.

The startup costs associated with the new energy drink distributor are relatively low but they typically range anywhere from $50,000 all the way to about $250,000. The amount of capital needed to commence operations is typically based on the amount of inventory that the individual needs to purchase. It should be noted that most energy drink distributors typically generate gross margins of 20% to 30% on each purchase order generated through the business. One of the things that most people who enter this industry need to be aware of immediately is that there are some pieces of legislation and regulation that could impact the way that energy drink manufacturers operate. While this is less of a concern for distributors, they are still going to need to comply with all of the laws that are set forth as a relates to the marketing and distribution of these beverages.

An energy drink distributor SWOT analysis is frequently produced in conjunction with both a business plan and marketing plan. As it relates to strengths, energy drink distributors are always able to remain profitable and cash flow positive given the continued and ongoing demand for these products. The pricing for an energy drink typically ranges from one dollar to three dollars depending on the size. The gross margins are strong, and the barriers to entry are considered to be moderately low.

As it pertains to weaknesses, energy drink companies do faces substantial amount competition from each other. As such, it is imperative that the distributor find ways in which they can remain cost-effective and appropriately differentiate themselves within this market. Many distributors will seek to carry a number of energy drink beverage lines in order to allow them to be the one stop shop for any retailers, third-party wholesalers, or grocery stores and they do business with.

As a relates to opportunities, energy drink distributors can continue to add new brands to their portfolio in order to boost sales. Additionally, another additional sales agents can be hired in order to solicit ongoing wholesale purchase orders with the numerous number of potential buyers including general food retailers, grocery stores, convenience stores, gas stations, hospitality businesses, vending machine companies, and related entities.

For threats, these businesses are going to face eventual regulation changes as it relates to the labeling and distribution of these products. However, once these regulations are in place there is very little is expected to change about this industry moving forward.

An energy drink distributor marketing plan should also be developed especially as it relates to securing ongoing purchase orders with retailers and wholesalers. Foremost, many of these companies maintain expansive independent networks of sales agents that produce and acquire purchase orders on behalf of the business. These agents typically receive a fee equal to 5% to 15% of the total purchase order. This is the quickest way to develop a market given the fact that sales agents will directly work with the entities described above in order to make sales. A presence on the Internet is of a moderate important to an energy drink distributor given that certain buying agents will want to conduct reviews and see if the business is legitimate.

A website should showcase the brands carried, hours of operation, minimal purchase order amounts, and how to place an order with the business. In some cases, a energy drink distributor website will feature e-commerce functionality that will allow individuals to place wholesale purchase orders directly through their online platform. A presence on social media, while the minor boost divisibility, is not completely needed for this type of business.

An energy drink distributor business plan is also going to be required especially in the event that capitals being sourced from private investors. This business plan should feature a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. As a relates industry research, again – this is a $10 billion your industry. A demographic analysis showcasing the anticipated characteristics of companies that will purchase energy drinks from the company should be included as well. This includes taking a look at annual revenues, amount of money they spend each month on wholesale purchase orders, annual profits, geographic location, and this type of business that is going to be doing the retailing.

The demand for energy drinks is tremendous, and as such distributors that operate within this field are in a strong position to continue to grow in every economic climate. This trend is expected continue in perpetuity, and individuals that have extensive experience with food and beverage distribution can develop this company as a highly lucrative enterprise from which to distribute a number of different products.