Why Are Energy Drinks & New Age Beverages The New Hot Companies?

Energy Drinks and new age beverages are theI get a lot of calls from entrepreneurs starting
hot topics not only in products and sales or in thetheir energy drinks and many more from
beverage industry but also in the investmentinvestors looking to invest in companies or
community.performing due diligence. At the moment I have
Many energy drinks and new age beverageat least 100 people contacting me every month
companies are appearing every day and gettingwanting to know about the New Age Beverage
funded to launch their projects.Industry, Energy Drinks, how to get distribution,
Now more than ever, with the sale of Vitaminhow to export, how to bottle drinks or to go
Water for 4.1 Billion Dollars, individuals, investorsover business plans or other information. The
and companies want to go into the "new ageindustry is growing and the category is growing
beverages".even faster.
So what exactly are new age beverages? Well,Why are these drinks growing at 50% per year
this is a new category within the beverageor more? Why do we see so many waters,
industry that covers the new style of beverages.energy drinks, hydrating products, etc. on the
This new "category" is growing and changing.market today? The answer is easy. Consumers
Before only energy drinks and really neware demanding more and more drinks. They want
innovative beverages where part of the category.drinks for every occasion or part of the day.
Now the category has evolved and you canThey want organic drinks, sugary drinks, healthy
include enhanced water, tea's, diet drinks, iceddrinks and every type of drink to fit their
coffee and really, any new drink. Every beveragepersonality, and style.
company want's to be associated with the "newEntrepreneurs and Investors are going into new
age" category because not just because it'sage beverages because the demand is there and
sexier but because the category is growingthe profits are very high, very high. This is one of
quicker and investors are looking at it up close.the characteristics that are shared all beverages,
You have to realize that Vitaminwater is not thethey all have high profit margins. How high are the
first company to get big cash for their brand.margins? Well, you can make up to $24 gross
There are beverage companies being fundedprofit per case. Yes, this is for one case. Imagine
every day, and more being bought and sold fromselling just one truckload of beverages or around
large companies. Many companies that you now1,600 cases with this profit. Now imagine selling a
think as the market leaders started not long agotruck a week!
as start-ups.Some advice before you start your venture:
Some of the companies that you see on the-Don't just focus on the drink, focus on the whole
news are Fuze, which sold to Coca Cola, Sobe,package (I get a lot of phone calls and emails
that sold to Pepsi Cola or Fiji Water that sold astelling me they have a better tasting drink than
well.Rockstar, Red Bull and Monster Energy Drink).
Other companies like Reeds Beverage, Who's-No Promotion before distribution. Don't fall into
Your Daddy, Jones Soda and Hensen withthe energy drink promotion trap. Sales and
Monster Energy Drink access funding through thedistribution are first.
public markets. These and many others are public-Learn your financials. Figure out how much it
companies traded in the New York Stocktakes to start and sell your new drink before you
Exchange, the Nasdaq or the otc(Over thego and product 5,000 cases.
Counter).