Do you want to start a soft drink production company? If YES, here is a sample soft drink manufacturing business plan template & FREE feasibility report. If you are considering starting a soft drink production business, the good news is that you can’t get it wrong because various types of soft drinks are consumed by almost everybody in the globe.
It is important to state that starting a soft drink production business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. Especially if you locate the business in good location and you know how to source for raw materials that will be used in the production of your soft drink.
A Sample Soft Drink Manufacturing Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Companies in the Soda Production industry manufacture soft drinks by blending various ingredients with artificially carbonated water. This industry also includes energy beverages. Producers of bottled water, ready-to-drink teas and coffees, as well as juice manufacturers are excluded from this industry.
Research conducted by IBIS World shows that in the united states of America, the level of concentration in the Soda Production industry is modest, as the top four players are expected to generate 65.5 percent of revenue. Given the heavy bulk weight of industry products and the relatively low value per unit sold, soft drink production is generally taken on by large companies with major economies of scale and heavy investments in transportation.
While the majority of soda production is performed as one of many activities within the corporate portfolios of international food and beverage companies, the remaining portion of the industry’s production is performed through small-sized local players.
The report shows that over the five years to 2019, falling per capita soft drink consumption significantly affected industry performance. Demand for both regular and diet carbonated soft drinks has declined as more consumers turn to healthier beverages to quench their thirst.
However, robust growth of energy drink brands has benefitted the industry. Nonetheless, media coverage on the adverse effects of sugary beverages ultimately burst producers’ bubble. Overall, IBISWorld estimates industry revenue will decline at an annualized 1.2 percent to $44.6 billion over the five years to 2019, despite a 1.2 percent increase in 2019 as the industry rebounds.
The Soda Production industry is a thriving sector of the economy of the United States of America and they over $45 billion annually from more than 536 registered and licensed companies. The industry is responsible for the employment of over 54,460 people.
Experts project the industry to grow at a -1.0 percent annual rate between 2014 and 2019. PepsiCo Inc., The Coca-Cola Bottling Company UNITED Inc., Monster Beverage Corporation and Keurig Dr Pepper Inc., they have the lion market share in the United States of America and in most countries of the world.
The soda production industry is a profitable industry and it is open for any investor to come in and establish his or her business but you must be ready to compete with the leading brands in the industry.
2. Executive Summary
Blue Zest© Soft Drink Company, Inc. is a licensed soft drink production company that will be located in an industrial area in East Rutherford, New Jersey. We have been able to secure a long – term lease for a facility in a strategic location with an option of a long – term renewal on terms and conditions that are favorable to us.
The facility has government approval for the kind of business we want to run and it is easily accessible and we are deliberate about that to facilitate easy movement of raw materials and finished products.
We are in the soft drinks production business to engage in the production of different flavors of soft drinks. We are also in the business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our soft drinks the opportunity to be part of the success story of Blue Zest© Soft Drink Company, Inc.
We are aware that there are several soft drinks production companies in the United States, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.
We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around East Rutherford – New Jersey and the United States of America. Much more than producing different flavors of healthy and well packaged soft drinks, our customer care is going to be second to none.
We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our soft drinks. Blue Zest© Soft Drink Company, Inc. will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our Depot/Plant.
We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
Blue Zest© Soft Drink Company, Inc. is owned by Derrick Jones Clay. Mr. Jones Clay who is the Chief Executive Officer of the Company is Graduate of Micro Biology (B.Sc.) and he holds a Master’s Degree in Business Management (MBA). He has over 15 years’ experience working in related industry as a senior manager prior to starting Blue Zest© Soft Drink Company, Inc.
3. Our Products and Services
Blue Zest© Soft Drink Company, Inc. is going to operate a standard and licensed soft drink production company whose products will not only be sold in East Rutherford – New Jersey but also throughout the United States of America. We are in the soda production industry to produce different flavors of soft drinks and of course to make profits and also to give our customers value for their money.
4. Our Mission and Vision Statement
- Our vision is to establish standard soft drink production company whose products will be not only be sold in East Rutherford – New Jersey, but also throughout the United States of America and Canada, and in other parts of the world.
- Our mission is to establish a standard and world class soft drink production company that in our own capacity will favorably compete with leaders in the industry such as PepsiCo Inc., The Coca-Cola Bottling Company UNITED Inc., Monster Beverage Corporation and Keurig Dr Pepper Inc et al.
- We want to build a soft drinks production business that will be listed amongst the top 20 soft drinks brands in the United States of America.
Our Business Structure
Blue Zest© Soft Drink Company, Inc. is established with the aim of competing favorably with other leading soft drinks brands in the industry. We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Plant Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Information Technologist
- Distribution Truck Drivers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of the soft drinks production plant
- Part of the team that determines the quantity of soft drinks that are to be produced
- Map out strategies that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the plant meets the expected safety and health standard at all times.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversee the smooth running of the daily office and factory activities.
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Help to ensure consistent quality of soft drinks
- Responsible for the purchase of raw materials and packaging materials (cans, bottles, and plastics et al)
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the store manager in an effective and timely manner
- Consistently stays abreast of any new information on Blue Zest© Soft Drink Company, Inc. products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Production Workers/Machine Operators:
- Responsible for purifying and bottling soft drinks
- Handle labeling of soft drinks products
- Assist in packaging and loading soft drinks into distribution trucks
- Any other duty as assigned by the restaurant manager.
Distribution Truck Drivers
- Assist in loading and unloading of soft drinks.
- Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assist the transport and logistics manager in planning their route according to a delivery schedule.
- Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
- Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collect and verify delivery instructions
- Report defects, accidents or violations
6. SWOT Analysis
We are quite aware that there are several soft drink production companies in the United States of America which is why we are following the due process of establishing a business so as to compete favorable with them.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Blue Zest© Soft Drink Company, Inc. employed the services of an expert HR and Business Analyst with bias in startup business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Blue Zest© Soft Drink Company, Inc.;
Part of what is going to count as positives for Blue Zest© Soft Drink Company, Inc. is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also, the wide varieties of soft drinks in terms of flavor, packaging and size et al that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new soft drink production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like PepsiCo Inc., The Coca-Cola Bottling Company UNITED Inc., Monster Beverage Corporation and Keurig Dr Pepper Inc et al are already determining the direction of the market.
The opportunities for soft drinks production companies are enormous. This is due to the fact that almost all Americans can afford soft drinks and they drink it regularly. As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market. We know that it is going to requires hard work, and we are determined to achieve it.
As per capita soft drink consumption declines, demand from downstream markets, such as wholesalers and retailers, will decline, negatively affecting industry revenue. Furthermore, price-based competition intensifies in response to weakened demand, which can negatively affect producers’ revenue and profitability. Per capita soft drink consumption is expected to slightly increase in the coming year, posing a potential threat to industry operators.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the trend in the soft drinks production industry, you will quite agree that there are competitions in different stages of the industry. That is competitions amongst bigger corporations such as PepsiCo Inc., Coca-Cola Bottling Company, UNITED Inc., Monster Beverage Corporation and Keurig Dr Pepper Inc et al and also amongst smaller and medium scale soft drink production companies.
Most soft drink companies are leveraging on creativity in terms of packaging and marketing to continue to stay afloat in the industry. One creativity approach that is common is ensuring that their soft drinks conforms to the appropriate sugar level.
While some consumers drink soda, energy drinks and sports drinks regularly, these beverages represent discretionary items for most consumers.
Consequently, as disposable income levels rise, consumers are able to continue purchasing industry goods with their other grocery items as well as trade up to craft varieties which carry higher price tags. Per capita disposable income is anticipated to rise in the coming year, presenting a potential opportunity for the industry.
Another trend in the soft drinks production industry is the adoption of eco – friendly approach towards the production and packaging of soft drinks. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
8. Our Target Market
When it comes to selling soft drinks, there is indeed a wide range of available customers. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in wholesale distribution and to retail soft drinks to the following groups of people;
- Restaurants and Canteens
- Event Planners, Parties and Corporate Functions
- Corporate Executives
- Business People
- Sports Men and Women
- Everybody in our target market location
A close study of the soft drinks production industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other soft drinks production companies in East Rutherford – New Jersey and throughout the United States.
Part of what is going to count as competitive advantage for Blue Zest© Soft Drink Company, Inc. is the vast experience of our management team, we have people on board who understand how to grow business from the scratch to becoming a national phenomenon.
So also, the wide varieties of soft drinks in terms of flavor, packaging and size et al that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the soft drinks industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Blue Zest© Soft Drink Company, Inc. is established with the aim of maximizing profits in the soft drinks production industry in the United States of America and we are going to ensure that we do all it takes to sell our products to a wide range of customers.
Blue Zest© Soft Drink Company, Inc. will generate income by selling the following products;
- Different flavors of soft drinks
10. Sales Forecast
One thing is certain when it comes to soft drinks production business, if your soft drinks are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in East Rutherford – New Jersey and every city where our soft drinks will be sold and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the soft drinks production industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below is the sales projection for Blue Zest© Soft Drink Company, Inc., it is based on the location of our business and other factors as it relates to small scale and medium scale soft drink production company startups in the United States;
- First Fiscal Year (FY1): $400,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.25 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Blue Zest© Soft Drink Company, Inc. and also the different flavors of soft drinks to produce, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market in our target market locations.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading brands in the United States of America.
We hired experts who have good understanding of the soft drinks production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in East Rutherford – New Jersey and other cities in the United States of America.
In summary, Blue Zest© Soft Drink Company, Inc. will adopt the following sales and marketing approach to sell our soft drinks;
- Introduce our soft drinks brand by sending introductory letters to residents, soft drinks merchants and other stakeholders in East Rutherford – New Jersey and other cities both in the United States of America and Canada.
- Open our soft drink production company with a party so as to capture the attention of residents who are our first targets
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our soft drinks brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our soft drinks production plant is a standard one with a wide range of soft drinks products that can favorably compete with other leading brands, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Blue Zest© Soft Drink Company, Inc.
Blue Zest© Soft Drink Company, Inc. has a long – term plan of distributing our soft drinks in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in East Rutherford, New Jersey before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Blue Zest© Soft Drink Company, Inc.;
- Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our soft drinks brand
- Run Instagram contests where customers can share their photos of our soft drinks. The photo that receives the most “Likes” can be rewarded with a discount or a free supply of soft drinks
- Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
- Engage in roadshow from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that our soft drinks are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
We are aware of the pricing trend in the soft drinks production industry which is why we have decided to produce various sizes of soft drinks.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various soft drinks production brands in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our soft drink brands.
- Payment Options
The payment policy adopted by Blue Zest© Soft Drink Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Blue Zest© Soft Drink Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment for product purchase without any stress on their part.
13. Startup Expenditure (Budget)
Starting a standard soft drink production company is indeed a capital intensive business. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing water purifying, bottling, and packaging equipment.
Aside from that, you are not expected to spend much except for purchase and servicing of distribution trucks, paying of your employees and utility bills. This is the key areas where we will spend our start – up capital;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Blue Zest© Soft Drink Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- The cost for construction of a standard soft drinks production plant – $200,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (raw materials, bottles and packaging materials et al) – $80,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for water purifying, bottling and packaging equipment – $100,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase of distribution vans – $100,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of seven hundred and fifty thousand dollars ($750,000) to successfully set up our soft drinks production plant in East Rutherford, New Jersey.
Generating Funding/Startup Capital for Blue Zest© Soft Drink Company, Inc.
Blue Zest© Soft Drink Company, Inc. is owned and financed by Derrick Jones Clay and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $200,000 (personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Blue Zest© Soft Drink Company, Inc. is to ensure that we continue to make available a wide range of flavors of soft drinks, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our production . We will not waste time in adopting new technology, best practices and diversifying our services.
Blue Zest© Soft Drink Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and construction of standard soft drinks plant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers/merchants of soft drinks: In Progress