Sparkling drinks are one of the most consumed commodities in the world. The carbonated drink market has been expanding more and more in recent years. To set up a carbonated drink company, businesses or investors need to understand the conditions of the carbonated drinks business and the process of building and planning to develop a company. “How to start a sparkling water business?”, “What are effective operation marketing strategies?”, etc. Let’s find the answers to the above problems with Tan Do Beverage through the following article!
It is highly recommended for new companies to ponder the steps to start a sparkling drink company
A quick guide to sparkling water
Sparkling water is water that manufacturers put in carbon dioxide gas. Drinking sparkling water feels like drinking soda without the extra calories and sugar. Most manufacturers flavor sparkling water using natural flavors. You may find sparkling water sold under names like:
- Carbonated water
- Soda water
- Club soda
- Fizzy water
- Seltzer water
Should know: Carbonated soft drinks – What is it and which flavor is the most sold in the market?
Although carbonated water is becoming more and more popular, many people still wonder about the benefits and harms of drinking this beverage to human health.
Potential health benefits
Many people often have the habit of drinking carbonated water in meals containing many sources of indigestible food. It’s well-founded that carbonated water can offer several digestive health benefits in several ways.
Carbonated water can prolong the feeling of fullness after meals more than regular filtered water. It can help food stay longer in the stomach. This is what triggers the feeling of fullness for you. Therefore, after each meal, if you drink carbonated water, you often find no cravings for hours after.
Some studies have shown that sparkling water can help improve swallowing function in both adults and children. The combination of carbonation and cold temperatures stimulates the nerves that control the ability to swallow. In sparkling water, carbon dioxide and water will react to produce carbonic acid. This substance stimulates the arteries and lining of the throat, thereby improving swallowing function, especially in people with dysphagia.
In addition, sparkling water has long been considered a popular therapy to relieve symptoms of indigestion. A study of 20 constipated patients (divided into two groups, 1 group used carbonated water and 1 group only used plain water) showed that: Those who use carbonated water can improve their symptoms with better indigestion and constipation. Therefore, in case of constipation, you can use carbonated water as a temporary remedy.
Potential health risks
Besides a few benefits, the habit of drinking sparkling water regularly will cause much harm to health. The following are the harmful effects that drinking a lot of sparkling water causes.
Sparkling waters contain carbon dioxide and sodium, acids, sweeteners, and many other additives. These substances can damage your teeth. In particular, the more carbonated water contains, the higher the sugar content, and the more likely it is to cause tooth decay. Sugar-free carbonated drinks are usually less harmful to oral health.
Gas and bloating
Although sparkling water can improve symptoms of constipation, too much can make you gassy. This problem is thought to be one of the side effects when the body takes in too much carbon dioxide. Frequent flatulence will lead to many consequences. Especially the adverse effects on the digestive system, you may experience IBS. When you are suffering from stomach problems, it is best not to drink sparkling drinks because they can worsen the condition.
All kinds of carbonated drinks bring benefits as well as potential risks to human health if abused.
How to establish a sparkling water company
Many people think that starting a business is a “twisted” process. Although they are aware that they want to start a beverage company, they do not know where to start. So this part will guide you on how to come up with a business idea for a sparkling water business – helping you figure out what you really want to do and how to execute it.
Stage 1 – Ideal brainstorming
Customer segment and targeted markets
Target customers are the group of customers in the target market segment of the business. The characteristics of the target customer are that there must be a need for the products and services that your business provides and that can afford to pay for those products and services. To determine what the target customer is, and know precisely who the target customer is, businesses need to rely on the following factors:
- Demographics: Age, gender, marital status,…
- Geographical location
- Psychological factors with an individual’s behavior, interests, personality, values, opinions, and lifestyle.
- Customer behaviors: Each customer has different knowledge, attitudes, conceptions, and ways of using or reacting to products/services.
Types of products and conveyed meaning
Currently, on the market, there are three popular sparkling drinks that businesses can choose from:
Carbonated mineral water
- Features: This type of water is acidic. Its composition includes water, minerals, and moderate CO2 (natural or added when bottled). The world’s leading brand of naturally carbonated mineral water is Perrius.
- Benefits: This type of water adds trace minerals (zinc, magnesium, calcium, etc.), stimulates digestion, improves appearance, and can be used to prepare other drinks.
- Limitations: Drinking a lot can cause a feeling of fullness in the stomach.
Carbonated soft drinks (Coca-Cola, Sprite, Pepsi, etc.)
- Features: Main ingredients are water, saturated CO2, sweeteners, and flavorings.
- Benefits: Helps to quench thirst, and increases appetite when used with food.
- Limitations: Causes obesity, tooth decay, diabetes, and can affect the reproductive system.
- Features: This type of water is rich in minerals, especially Citrate salts, and CO2, with sugar or without sugar.
- Benefits: Soda helps support digestion, is used in beauty, or is used to make drinks.
- Limitations: Using soda a lot can cause bloating and discomfort.
You can choose from a variety of carbonated soft drinks to sell in your business.
SWOT analysis of your company and competitors
Analysis of competitors by SWOT is one of the most basic methods to help businesses assess their competitors, thereby setting up an effective competitive plan.
SWOT analysis is a primary method to help evaluate competitors
SWOT stands for the first letters of English words such as Strengths, Weakness, Opportunities, and Threats:
- Strengths: Internal factors are the advantages of the business.
- Weaknesses: Internal factors are the things that the business does not do well and needs to improve.
- Opportunities: External environmental factors are to promote business development.
- Threats: External environmental factors are to hinder and cause difficulties in business development.
Some aspects that businesses need to pay attention to when analyzing competitors in the SWOT model are:
- Products: Quality, price, design, etc.
- Production process: Technology, time, etc.
- Customer: Customer segments, Customer service before and after purchase.
- Distribution: Online and offline retail distribution system of competitors.
- Management: Management system, management capacity, etc.
- Finance: Financial statements, profits, debt, etc.
Stage 2 – Planning
If you’ve considered what a business plan is and why you need it, it’s time to delve into the process of creating a real business plan and the necessary software to develop and support it.
Tips: 7 steps to create a beverage company business plan
- Step 1: Build unique business ideas
The idea is like the soul of any business plan. It is the foundation for your success, the goal that you want to build. Therefore, the first step is to make yourself a unique idea. Don’t be afraid it’s crazy or fanciful.
- Step 2: Set specific goals and results
Of course, to draw a path, you must have a starting point and an endpoint. Goals and achievements are the motivation for your business to try. Listing goals will help you plan in more detailedly and accurately.
- Step 3: Determine the business organization model
The business organization model is all the directions a business owner sets out to develop: target customers, core values, essential resources, revenue streams, etc. From there, all company members will share the same thought, purpose, and actions to make the company much more robust.
- Step 4: Make a human resource management plan
Your business will expand, and employees will increase to tens, even hundreds of people. Therefore, you cannot directly manage each of them. There should be a system of expertise to help you plan to organize, train, guide, and develop skills for your employees.
- Step 5: Make a financial plan
Cash flow management in a business is essential. If you don’t know how to allocate your finances properly, the chances are that your profits won’t cover your losses. “What fees does my business need? When does my business need to spend money? When can my business collect money?” etc. All of these questions should be included in a specific plan.
Businesses often develop a marketing mix strategy in the preparation phase of development. The marketing mix is a set of marketing strategies in each department that a company can control to influence the target market to realize marketing objectives.
- Product Strategy: Includes defining product portfolio, product range, name, brand, packaging, features, and customer services.
- Pricing strategy: Includes determining the goal of the pricing strategy, determining the pricing method, and determining the pricing strategy.
- Distribution strategy: Includes the establishment of distribution channels, selection of intermediaries in the pipeline, choice of transportation methods, etc.
- Promotion Strategy (or Marketing Communication): Determine the objectives of the communication strategy and select the media.
Production and Logistics
With a start-up, you have the choice of doing all the shipping yourself or looking for more prominent distributors. However, it would help if you considered all the options as well as the costs involved. Initially, you can distribute the product yourself. Factors to be managed include money for gas, mileage, vehicle maintenance, staff, and insurance. However, as your business expands at a later stage, you may consider bringing your products into broader distribution channels. You should consult many other companies in the area to find the right distributor.
If you plan to manufacture your product, your initial investment should be used to purchase or rent the right equipment. Your company thoroughly investigates opportunities to buy these devices in new as well as used condition. In addition, you also need to determine the location of the equipment during production. New businesses should consider the cost of buying equipment to operate themselves compared to the cost of outsourcing to manufacturers.
Businesses should thoroughly research the costs and legalities of doing production on their own or outsourcing to a certified manufacturing business. It’s a good idea to tour different manufacturers in person to see which is best for your company and product. 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 relatively valuable services, especially for newbies in the beverage market.
Outsourcing a manufacturing business can help you maximize costs and resources.
In summary, the above article has given readers a specific look at building a carbonated beverage business. To achieve positive business results, it is essential for your business to be detailed and precise in every step, even the smallest. In addition, not only in the early stages, every business needs to develop a perfect plan for the later stages of development, primarily when products become popular. At Tan Do Beverage, we also provide ODM (Beverage Private Label) and OEM (Beverage Co-Packer) services to support newbies from the ideation, preparation, and business stages.
Tan Do is a global beverage ODM/OEM manufacturer and supplier located in Vietnam. Since 1996, we have built trust and credibility not only throughout Vietnam but also in many parts of the world. Leveraging state-of-the-art technology, we have crafted thousands of products that align with ISO, HACCP, HALAL, FDA, and many other standards.