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written by | October 11, 2021

Step by Step Guide to Start a Beverage Business in India

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Table of Content


As the temperature rises in summer, so does the sales of cold drinks in shops. Cold beverages are among the most sought-after items, and every major cold drink manufacturer provides lacs of servings of their drinks every day.

If you're looking to establish an online retail company, you can be one of their retail stores that will allow you to sell their products at your workplace. But an ambitious mind will plan something bigger. 

Did you know?

On April 23, 1985, the Coca Cola company launched the "New Coke" formula in response to decreasing sales because of the increasing competition in the competitive cola market. However, this new recipe was a total failure, and Coca-Cola fans had a negative reaction to this new recipe.

Recognising this failure, everybody's beloved original cola returned to the market within three months. This old version comes with the fresh branding - "Coca-Cola Classic."

Easy and Quick Steps to Start Your Beverage Business

How to Start Your Beverages Business?

Beginning a beverages business doesn't require massive capital, considering that you can manufacture drinks in small quantities. However, it doesn't sound that nice, but it will pay off hugely if it's a success.

1) Different Types of Soft Drinks

Cold drinks are extremely popular with people of all different ages, and they are sold in canteens, restaurants and even hotels. In general, cold drinks come in various packaging.

The most commonly used packaging is tetra packs, pouches, glass bottles and cans. These can be purchased as a flavoured soft drink or a juice-based one.

The juice comprises nutritious concentrates of fruit, sugar and carbonated water. These soft drink pouches target active, busy adults and youngsters since the pouch doesn't require straws.

2) Conduct Market Research

Many entrepreneurs do not carry out thorough market research, and the outcome is clear. They end up going bankrupt. It is essential to be aware of the size of the market, the type of market, segments, shares, competitors and so on. What is the source of this important information? The most reliable choice is to buy market reports.

Internet-based applications (Google Keyword Planner, Google Surveys, Google Trends, etc.) are better choices if you don't want to invest too much. After clearly understanding your market beverages business, you begin to set up your own company. First, it is to answer these questions:

  • What makes it different from other competitors? What's your competitive advantage? Have you got it?
  • What's your brand's product?
  • Are there any needs to use your item? When? Why? And Who?
  • Are you looking to get investors' money? What are your plans for going about it?
  • What is the value it brings?
  • Do you have the capital to put your product on the market?
  • Have you got an idea for a recipe? Are you considering using the assistance of companies for beverage development?

Also Read: Guide to Starting a Soft Drink Business In India

3) Analysis of Recipes

Try recipes from other brands and attempt making them at home. Test different kinds of drinks to discover how they taste. You can host tasting events with family and friends to get feedback. Meet with local stores of groceries or small cafes for additional feedback. Find out more and more details about beverages and then analyse the results. It will help you create your drink.

4) Keep Changing

It's a reality that the F & B market is constantly expanding and responding to consumers' demands. For instance, trends such as energy drinks or health drinks are constantly changing.

So, to stay relevant and grow, your drinks business must constantly adapt its techniques and products to give customers the best they desire. Your business can only be successful and prosper if founded on long-term relationships with clients.

 Customer feedback could be an invaluable resource since feedback from your customers can help you make the next decisions. What will you develop? What new ideas are you planning to implement?

When you make decisions based on customer wants, you can guarantee that your products will be successful.

5) Registration of the Company

When you're looking for the best way to begin a beverage business, you first consider how to start it. Online company registration is the most important initial step to establishing an alcohol-related drinks business.

  • ES Ior Employee State Insurance Registration: All businesses in India for all companies with at least ten employees must get the Employee State Insurance ESI Registration.
  • EPF/Employees' Provident Fund Registration: All manufacturing companies with more than twenty employees should have EPF Registration. The scheme offers pension benefits to employees.
  • GST or GST/ Service Tax Registration: It is mandatory for all businesses engaged in the taxable delivery of services or goods to register for GST registration and obtain the GST number.

Tip: While running a drinks business, there are chances that you might face QR code scams while your customers pay. So, it's better to know about it and be safe.

6) Certificates and Licences

  • Licence for Drugs and Pharmaceutical Licence: If you're manufacturing beverages containing caffeine, the business's administrator needs to seek permission or a licence through the Food and Drug Department regarding the amount of caffeine included. Also, you may apply for private limited company registration.
  • Trademark Registration to Protect Your Brand: Have your company's logo and name registered through trademark registration online. It will ensure your brand's image and establish a brand name. Also, look for the food products trademark classes when seeking out trademarks available to prevent conflicts.
  • FSSAI Food Safety and Standards Authority India Licence: Every beverage company in India must adhere to safety standards for healthy beverages.
  • No Objection Certificate issued by the Pollution Control Board: All companies operating in India need to obtain a NOC at the State Pollution Control Board before conducting business. It is also an essential aspect to remember when looking for ways to begin a soft drinks business.

7) Promote Your Drinks Business

Promotion is a crucial component in distributing the benefits of your product/services to your customers. A well-designed marketing/promotional strategy ensures long-term success and brings in more customers and profit.

There are a variety of methods for advertising, including:

  • Email marketing
  • Digital presence
  • Blogging
  • Brand positioning
  • Hosting events
  • Social media marketing
  • Offer coupons, discounts, etc.

8) Infrastructure and the Location

The right place is vital to establish the factory. The majority of factories are situated in the suburbs of cities to avoid environmental hazards. Your factory should be located near an area with transport and reliable electricity and water services. Keep it close to the city so that you can contact for assistance in case of an emergency. It is among the primary factors to consider when establishing beverage companies in India.

9) Equipment and Raw Materials

Making beverages requires a lot of raw materials and equipment that are controlled by the type of beverage you're making. Make sure you locate a place where you can conveniently avail the important raw material and equipment (stay close to the city). It has been discovered that the owners tend to purchase cheap equipment to cut costs for manufacturing companies.

When you purchase a machine, it is essential to ensure the machinery's quality must be modern and high-quality. Equipment such as mixers, fridges, carbo coolers, compressors, refrigerator mixing systems, etc., are typically used in factories.

Also Read: Learn About Starting a Tea Stall Business in India

10) Processing and Packaging

The packaging determines the quality and appearance of the beverage. The quality packaging will protect your product, and perfect packaging can save your brand.

Create your packaging keeping two factors in mind: firstly, it should be attractive and convenient to draw the attention of buyers, and, secondly, it must not alter the formula or the taste of the drink. Other aspects that affect the making of the packaging include the expiry date, amount of beverage and hygiene, and taste variation is also a factor.

11) Merchandising

Finally, a well-designed sales strategy is essential in every beverage company. Therefore, it is important to think about certain sales strategies when looking for ways to begin a beverages business.

Based on the nature of your business and the sort of drinks you offer, you should be aware that you have to link up your business in the correct types of deals through wholesalers or direct sales or even on e-commerce websites.

Pricing is another crucial element of extreme importance and must be picked with care. When putting the price tag on the product, remember to consider margins in the manufacturing and selling costs since the overhead and marketing expenses are quite high.

Conclusion

The Indian climate's heat and the fast-food culture have made it a viable source of cold beverages. Starting a distributorship for cold drinks can be a profitable business, and we are hoping that this article will help you do that. Be aware that you must come up with high-quality products since customers will not take any interest in purchasing your products if they are not of good quality.

Make your payment methods online if possible. It will help increase sales since everybody has wallets active online on Paytm, Gpay, PhonePe, etc.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What's the cost of making one soda bottle?

Ans:

You can't set up your beverages business without making soda bottles. Making one soda bottle can be as low as ₹5.

Q: Is the cold drinks business profitable?

Ans:

There is no straight answer to that. Whether your beverages business will succeed or not entirely depends upon your product and its marketing. If you're offering something low quality or at a higher price than normal, then the chances of success will be low. Also, if you're selling your beverages at a higher cost than your competition, people will avoid buying them.

Q: What's the cost of developing a beverage business?

Ans:

If you want to formulate a new beverage professionally, you may have to spend ₹15 lakhs for machinery, ingredients, place, workforce, resources, marketing, etc. Rest depends upon what scale you want to start your drinks business.

Q: How to start a beverage business?

Ans:

Here are the steps:

  • Do in-depth market research and measure the level of competition
  • Build a solid field team
  • Have a retail execution plan
  • Design great packaging
  • Advertise
  • Keep changing

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.