Thirsty for a beverage distribution business?

Whether you are looking to start or buy a beverage distribution business for sale, we will break down everything you need to know to help you make the right decision, Being that the beverage distribution industry is so massive you need all the knowledge you can get…and we hope this article helps! Let us begin, you wanna get yourself a beverage for this one? 

1. How to pick which beverage distribution industry to get into? 

 Ok so you Got some money to invest and you chose investment in buying a beverage distribution business for sale, But with so many brands on the market like Snapple routes to Pepsi routes for sale, how about buying a wine distribution business for sale …  how to determine which one to acquire? Here are 3 options to help you decide:

Option 1:  Being passionate about the product and knowing the history of the brand 

Option 2:  Picking do you want to be independent or work under a brand name… ( i will discuss below the difference between being independent and working under a brand ) 

Option 3:  Focusing on just the money, some owner-absentee buyers look at just earnings, EBITDA, and net profit being that they will not be doing the labor, if you are buying this business to have it earn additional income without having to work, then looking at the financials will help you decide to buy it or not.

2. What do beverage distributors do?

You probably have known what beverage distributors do, but what do they do like what is the work required, and how hard is the business? We uncovered some details and let me share them with you… An average beverage case can weigh about 75 pounds, now whether you are going to buy a soda distributorship business for sale or purchase a beer distributorship for sale the cases are pretty heavy, but don't worry you will hire helpers for that maybe even two in the summer time when it gets busy! 

You will start your day by loading your truck, some do it after they finish their delivery route, which gives you a head start in the morning, you will have your orders in hand, taking orders can be done in 3 ways, over the phone ( customers don't really like this) option two having a salesperson go to the store taking orders or option 3 this will work if you are buying a niche product like Tropicana routes for sale, you can do drive by’s once a week and take the order then offload the beverages right from your beverage truck collect a C.O.D. and move to the next customer.

3. Types of beverage distribution customers

When it comes to finding beverage distribution customers sky the limit, If you are starting a business from the ground up (step-by-step plan below ) Your customers can be the following: 

• Supermarkets 

• Gas stations with C-Stores 

• Grocery stores 

• Coffee shops 

• Fast food shops 

• Restaurants 

• Deli’s

• Wholesalers open to the public

Now when buying an established beverage distribution business for sale, you will get a list of customers these can be from a mix of the above, there are many benefits of buying an established business and I will explain them in the next section.

4. Types of beverage distribution businesses for sale 

This is where you brainstorm and decide what the beverage distribution industry is, Are you looking for a branded route, are you looking to sell a mix of beverages ( that will be an independent beverage distribution let me line them up so you have a better outlook on each one! 

Beverage distribution business for sale: This will be your soda, juices, and water products some examples are Snapple routes, vitamin water routes, simply orange routes, or even Pepsi routes for sale

wine distribution business for sale: In this business, you will deliver wine to mostly liquor stores, bars, and clubs, this market is highly dominated by the bigger prominent years, contact your state office for information regarding licenses and how to become a licensed wine distributor

Beer distributorship for sale: Distributing beer is alot similar to beverage distribution but it comes with more regulations like obtaining a C license and registering with the IRS if you are from new york here are some helpful links to learn more 

Register IRS 

Beer distributor license 

liquor distributor for sale: Same goes for any liquor, your business will need to be approved, and once approved you can distribute to bars, clubs, and any business licensed to sell liquor 

5. Buying a beverage distribution business vs starting one?

When it comes to comparing the two we can't say its the saving money starting one, getting into the beverage distribution industry is hard, it can be done but will be a slow uphill race, your average beverage truck will run you around 50K and that is not brand new, you will need to hire a helper from day one, some customers request you deliver the soda down into the basement…not picture having to deliver 30-100 cases a location alone! So the comparison is being able to start making a return on your investment from the first month…here is what you will get when buying a beverage business for sale!

• An established route and what I mean by this is a scheduling software that tells you where to go each day stop by stop, this makes any owner transfers easier 

• List of accounts 

• A trained helper or helpers

• A working truck 

• Weekly sales 

• Net profit 

6.  Naaaah  I rather start a beverage distribution route business 

Fine, if you say so! The question comes down to How much do you need to start your own beverage distribution business? Here is a list of steps that may give you a better idea: 

Step 1: Decide what you want to distribute 

Step 2: Finding a wholesaler to buy your inventory from is second, you don't want to go spending money until you lock have ed in your source

Step 3:  Once you are locked in a wholesale, you want to get all your legal stuff in order, this will include your business name, all business licenses, Tax ID number, and anything else your state requires you to distribute beverages.

Step 4:  Step 3 is fully done? Truck shoppingggg is the fun part but also the expensive part, this will be your biggest investment you can find used ones on many online websites, or depending on your credit you can lease one

Step 5: Stop spending, Find customers you will need to start bringing in orders to maintain a weekly cash flow, as bills will start to come in.

Step 6:  KEEP WORKING !! 

Step 7: Once the business is starting to pick up, make yourself a free website and start to promote your business, open social media accounts and have your customers @ your business

Step 8: Add your business to every local directory like manta, yellow pages the more the better 

Step 9: Create a referral program for your customers here is an example, for every new customer they refer you get a 10% off your next order.

7.  Conclusion:  Selling a brand or being independent? 

So we listed how a beverage distributor works who are the customers and even wrote how to start one from scratch, but one thing is the difference between selling under a brand like Tropicana vs selling independently, 

Brand : 

• Follow guidelines

• Receiving  leads

• Having a protected area

• Not having to spend money on marketing 

Independent : 

• Making your hours 

• Selling anything you want 

• Making your prices 

• Grow as you want 

So would you rather buy a beverage distribution business for sale or start one?

To the best of our knowledge, the information provided on this website is not intended to be taken as professional financial advice. Consult a business broker, or professional financial or tax expert if you require this advice.