How To Get Into The Beverage Industry

    Soft drinks are on the list of essential consumer goods.  The reason is that the daily sales of these products are extensive. Therefore, many big brands in the beverage market have had a foothold with consumers for a long time. However, with an increasing population, the beverage market still has great potential. This is especially for newbies with unique products and the ability to capture a significant market share. The following article will share a helpful approach to how to get into the beverage industry successfully.

    build a successful brand in the beverage industry

    Almost every new beverage company considers significant ways to build a successful brand in this market

    Stage 1:  Building ideas for your beverage product

    What and who are beverage products for? 

    The first factor you need to determine before embarking on the beverage branding process is what you will sell. According to a recent report by Vietnam’s Competition Administration Department, there are about 300 types in the world market with many different features and effects such as cooling, recovering skin, slimming, healing, and promoting healthy function. In general, there are three groups of beverage products in the world market:

    • Carbonated soft drinks: a drink usually contains saturated carbon dioxide water, and sweeteners and often has added flavoring.
    • Non-carbonated soft drinks such as fruit juice, soy milk, non-degree green tea, bird’s nest water, canned coffee, energy drinks, etc.
    • Mineral water and bottled purified water.

    More than that, before you even think about joining the beverage business, you need to determine which customer segment is for your beverage of choice. For example, customers who are mainly adults tend to choose drink types that help improve resistance and enhance productivity during the day. At the beginning stage, choose to enter a niche. Most products cannot satisfy all people’s needs or tastes of all ages, genders, or professions. It would be helpful if you learned how to classify the market, group your customers according to specific criteria, and direct your products to that customer group.

    Formulations of beverage products 

    Every day, dozens of new drinks are introduced to the market. So, before launching your product, you must formulate your drink recipe, develop and test it in the lab, and find the best raw material suppliers to make it. However, this process is relatively complicated, requiring a lot of gray matter as well as creative ideas in the framework to create a delicious and nutritious taste. Furthermore, beverage products need to meet a range of standards related to health and food safety, and hygiene.

    Therefore, if it is a limited weakness that affects the first step of your whole process of jumping into the beverage business. Then, you need to solve this problem first so that you can move on to phase two smoothly. The solution here is to find a company that specializes in beverage production to solve this problem for you. No matter if you only have a rough idea or even don’t have any notion about the concept of a drink recipe, this kind of enterprise will also be able to help you deal with it.

    Tan Do Beverage Co., Ltd. with more than 30 years of experience in the beverage industry specializing in providing beverage manufacturing services, ODM, and OEM will help you produce your drinks. It is accompanied by the freedom to choose from ready-made recipes or develop your recipe concept. They will bring your ideas to life with unlimited prototypes until reaching your satisfaction through in-depth research and consultancy of our professional team.

    Finally, with standard recipes, you will prioritize choosing recipes with delicious flavors, especially suitable for the taste of your target customers.

    Unique beverage recipes

    Unique drink recipes are the main contributor to effective methods of building a drink company

    Stage 2: Drafting your beverage company business plan

    External and internal factors always influence the business activities of enterprises. Therefore, a business plan helps companies orient their operations and be ready to jump into the beverage industry in the future by analyzing and forecasting the business environment. Should know: 7 easy steps to create a comprehensive beverage company business plan

    Beverage Industry Overviews and Objectives Set-up

    You should start with basic factors:

    • Identify your industry: The number of retail, wholesale, services, manufacturing, etc is the critical information you should collect. Besides, clearly defining your type of business is necessary. As it will affect your beverage company’s operating way and later legal issues.
    • Identify the problems you need to solve: Successful businesses create customer value by solving problems. For example, many customers want a beverage product that has both a delicious taste, high nutrient content, and good health. Or for customers who are prone to allergies to certain ingredients in soft drinks, businesses need to find a solution to that problem.
    • Prepare scenarios to solve the above problems: After identifying the issues that may arise when entering the market, you need to create a plan to deal with them. What resources you use, the partners you can consult, how you deal with it, etc.

    Next, define specific goals when entering the market. You can use specific numbers to illustrate your ideals. For example, as a beverage business whose primary products are fruit juices, your particular goals for the first three years are:

    • Accounting for the largest market share in the industry of fruit juices in country X.
    • Generating a net income of $…. at the end of the first year of operation.
    • Minimizing rental inventory replacement costs by maintaining a 7% attrition rate on existing equipment.

    Beverage Market Analysis 

    The SWOT model is a well-known business analysis model (or matrix) for all businesses that want to improve their business situation in the right direction and build solid development foundations. In short, a business SWOT analysis includes the following aspects:

    • Strengths: The characteristics of the business or project that give it a competitive advantage over competitors.
    • Weaknesses: The characteristics of the business or project make the business or project weaker than the competition.
    • Opportunities: Environmental factors can be exploited to take advantage.
    • Challenges: Environmental factors can negatively impact the business or project.

    SWOT matrix

    The SWOT matrix is usually presented in the form of a list

    Beverage Marketing Strategy 

    A systematic and scientific marketing strategy makes it easier for you to manage marketing activities and turn business goals into reality. 

    Not miss: Sampling marketing strategy-must try steps to extend your brand 

    • Step 1: Writing a goal according to the SMART principle 

    A SMART goal is a specific (S-Specific), measurable (M-Measurable), achievable (A-Achievable), realistic (R-Realistic), and limited time limit (T-Timetable) goal. It means all of your goals need to be clear, achievable, and not far from reality and include the timeframe you want to accomplish them. For example, a specific, measurable, and time-bound goal are to increase your business’s Facebook fan page followers by 15% within three months. 

    • Step 2: Building your strategy 

    At this point, you have written down goals based on your target audience and current situation. Now, you have to figure out which tactics will help you achieve those goals. In addition, you need to choose the proper channels and action categories to focus on. For example, suppose your goal is to increase your business Facebook page followers by 15% in three months. In that case, your tactics might include hosting minigames, actively responding to comments, and posting at least three times on Facebook per week. 

    • Step 3: Set your budget 

    Before you start implementing any of the ideas above, you have to know how much money you’ll be spending. For example, your tactics include running ads on social networking sites. However, if the company’s budget is not enough, you will not achieve the goal you set. While you write down your strategy, estimate the costs required for those activities and ensure it stays within your budget.

    marketing strategy

    Marketing tools help businesses dominate the market, increase market share, and accelerate product consumption

    Adaptive Organization Structure/Operation to Beverage Industry

    An effectively structured organization will help your business be stable enough to execute its strategy. In addition, it also maintains its current competitive advantage and is flexible enough to develop competitive advantages for its future system in the beverage industry. An organizational chart defines an organization, giving people an overview of how a business is organized, whether it’s an office, a start-up, a manufacturing plant, or something else. Features of an organizational structure:

    • Allocation of decision power: Who has decision-making power in the organization? Businesses will know what kind of structure their organization belongs to. If decision-making power is concentrated in the hands of only one individual, the organization will be in a centralized structure. If the power is divided among many people, it is a manifestation of the hierarchy.
    • Department division (also known as departmental specialization): The higher the specialization, the more the business benefits because it allows employees to master each specific area. However, low specialization offers flexibility because employees can easily handle various tasks.
    • Sector division: This involves the process of working between departments. The interaction between departments will be limited if the organization has rigid divisions. There are five methods of dividing business segments a drink company can apply by:

              – Function

              – Product

              – Region

              – Process

              – Customer

    Production, Delivery, and Logistics of Beverage Industry Products  

    A production plan is a plan for manufacturing that shows the methods, resources, and cost of manufacturing products. There are many different production methods: producing one type of item, mass production, regular frequency production, etc.

    • The number of products to be manufactured: Beverage businesses need to determine the amount of product to be produced in each specific period. It affects not only the end goal but also the marketing plan and inventory of the business.
    • Materials and other resources: it is necessary to determine the value and quantity of inventories of supplies, product distributors, substitute materials, etc., and forecast possible hazards and threats during the production of beverages.
    • Production methods: The business needs to decide how to manufacture its products: stages in the production process, techniques to satisfy the product, which part or process is self-manufactured/outsourced, etc. If you are a new entrant to the beverage industry and starting your own business, choosing a professional manufacturing business for your beverage product as Tan Do Beverage will be one of the best and most viable options. Instead of having to focus essential resources on devising a formula for drink products, purchasing machinery, building factories, operating and managing production, applying for drink safety certificates and licensing papers from the government,… You can focus strongly on sales and marketing or even experiment on a small scale to avoid the potential risks of entering a competitive new market as the beverage industry would be a great solution.

    beverage product production process

    An effective product production process must ensure the factors of equipment, technique as well as production costs


    In summary, the above article has detailed the specific stages to get into the beverage industry successfully. Companies need to invest time and effort to complete tasks perfectly, from defining the market to creating an idea or producing a product. However, operations management is not easy, even for businesses that already have a foothold in the market. At Tan Do Beverage, we provide Beverage Private Label (ODM) and Beverage Co-Packer (OEM) services. Customers will be supported from ideation and planning until the product is produced and launched into the market. These are valuable services, especially for newbies in the beverage market.

    The more information you provide, the more we can understand your need and provide the best support.

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      Hi readers, I'm Richard, F&B marketing executive for Tan Do Beverage - a leading private label manufacturer in the beverage industry. The articles that I write have all been consulted with our professional R&D and Quality Control staff, so that all knowledge shared will be accurate and helpful. Our Blog is designed to provide the best industry insights about general beverage trends, manufacturing knowledge and guides for beverage business operations.

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