Drinks Business

The drinks business can be very profitable. More than 3,000 companies in the United States manufacture and distribute drinks. While there is certainly a lot of competition in this business area, there are also great opportunities. While most consumers are familiar with the big names in the drinks business industry like Coca-Cola and PepsiCo, many regional drink makers and distributors have profitable drink endeavors of their own. The world of drinks is not limited to carbonated soft drinks; you can find great opportunities in sports drinks, energy drinks, flavored and vitamin infused waters, teas, hot beverages, and more, including beer, wine and distilled spirits. The large drink consuming public is always eager for the next big thing in refreshments and those wishing to start their own drink business in the U.S. have a distinct advantage. The drinks business is a mature category, which means that the necessary infrastructure is already in place. Sourcing of raw materials, transportation, processing capabilities, distribution networks, industry experts, business consultants, an ample workforce, and regulations that ensure a consistent application of standards for all companies—all contribute to making the drink business a vibrant industry.

Beverage Industries

There are several beverage industries depending on how drinks are viewed. The first differentiation ifs beverage consumed at the premise developed and comes in a package. Developed and consumed includes fresh coffee, tap water, soda from a fountain, freshly squeezed juice. Bottle water and beer can be examples of packaged beverages. These are divided into home developed and retail. Retail Beverage Sales Retailing consists of the sale of drinks from a very fixed location, such as a convience store, supermarket, or in a bar, in small or individual lots for direct consumption by the purchaser. A bar is an establishment that serves drinks, especially alcoholic beverages such as beer, liquor, and cocktails, for consumption on the premises. A supermarket, also called a grocery store, is a self-service store offering a wide variety of beverages, food and household merchandise, organized into departments. February 2010 estimated monthly sales for retail and food services, by kind of business: Food & beverage stores 49,888,000,000; Grocery stores 44,610,000,000; Beer, wine & liquor stores 3,473,000,000; Food services & drinking places 37,893,000,000. Water System One the biggest beverage industries are water systems for tap water. This water is part of indoor plumbing, which became available in the developed world in the late 19th century and common in the mid-20th century. The provision of tap water is a massive infrastructure of piping, pumps, and water purification works. Hoover Dam is a concrete arch-gravity dam in the Black Canyon of the Colorado River, on the border between the U.S. states of Arizona and Nevada. It is part of the tap water systems for several states. Note this water also supplies a component to many of the packaged beverages as well. Soda and Bottle Water Production The US beverage manufacture and bottling industry includes about 3,000 companies with combined annual revenue of $70 billion. Major companies include Coca-Cola, PepsiCo, and Dr Pepper Snapple Group. The industry includes manufacturers and distributors of soft drinks and bottled water. Bottled water wholesale dollar sales first exceeded $6 billion in 2000. By 2007, they topped $11.5 billion. Coffee Tea and Kool-Aid After water, tea is the most widely consumed beverage in the world. In many places, the use boiling of water for tea is reduces water bourn bacteria. Coffee is a brewed drink prepared from roasted seeds, commonly called coffee beans, of the coffee plant. They are seeds of coffee cherries that grow on trees in over 70 countries. There are many ways to flavor water from coco to coloring like Kool-Aid. Beverage Packing and Labels The beverage packaging industry in North America is estimated to be $22.8 billion in 2009. The most popular material at present and for the near future is plastic, with over 40 percent of the market. Bottles are the most popular packaging type with over 55 percent of the market. Plastic as a packaging material and bottles as a packaging type will provide the vast majority of incremental sales increases of beverage containers over the next 10 years. Milk part of the Diary Business Nearly 64% of the milk produced in 2007 was used to make either cheese (41%) or fluid milk, cream and related products (23%). Butter accounted for about 18% of the milk supply, and about 8% ended up in ice cream and other frozen dairy products. Wine and Beer Production Eleven billion pounds of grapes are grown in the USA. The industry is valued at $2.9 billion, making it the highest value fruit crop. There are 800,000 acres of grapes in production in California. The major grape producing states in order of production include California, Washington, New York, Michigan, and Pennsylvania. There are over 200 million barrels of beer consumed in the United States. Sprits like whiskey and brandy are also consumed. More Ingredients Coffee, hops, syrup, leamon juice are all ingredients in beverages. Many of the beverage industry's products, including bottled waters, juices, sports drinks, teas, milk and diet soft drinks can be catalysts to health and fitness. Some of the key ingredients in non-alcoholic beverages include low-calorie sweeteners, high fructose corn syrup (HFCS) and caffeine. The basic ingredients of beer are water, malt, hops, and yeast. The major variation in beer is the type of yeast used to ferment the product. Water comprises more than 90% of beer. In the past, the mineral content of water influenced greatly the flavor of the final beer and was specific to the region of the earth from which it came. Beverage Transportation and Storage Some beverage transportation is done on regular routes or for only one consignee per run. Other others transport goods from many different loading stations to various consignees. Beverages are store in all sorts of warehouses. Generally, beverages are shipped from the bottle plant to distribution warehouses by the truckload. Beverage Brands A brand is one of the most valuable elements in an advertising theme. It demonstrates what the brand owner is able to offer in the marketplace. Some of the top beverage brands include Coca-Cola, Pepsi, and Budweiser. Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. A legally protected brand name is called a proprietary name.

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