Tuesday, August 05, 2008

Build a Marketing Plan or a Business Plan for a Beverage Company

Whether you're a seasoned beverage industry professional or an entrepreneur with an idea for a beverage company you will need a business plan or a marketing plan for the advancement of your go to market strategy.

The distinct differences of the two are, mainly:
-Business plans are for banks, lenders, and borrowing money.
-Marketing plans are for suppliers, retailers, and making more money.


These plans are also fundamentally different, in that:
-Business plans should be based on factual data that embody your entire business architecture or conception yielding precise information about your company or proposition.
-Marketing plans should pertain to certain areas of focus of an existing brand or package, new product agreements and rollouts, and new ideas to help secure business alliances.


But, they both contain similar and essential components:
1.Pre-planning...information and fact gathering time.
2.You, your skills, and your company...remember you are selling yourself.
3.Historical data...anything pertinent to past performance.
4.Sales figures, projections, and trends...everyone wants to know what you've done, what you think you are going to do, and how you think you're going to do it.
4.Geographics...know the territory and the accounts inside and out.
5.Competition...the more you know about them the better.
6.Demographics...what the population looks like in detail.
7.Estimates...tell them how much money you are going to make them.
8.Responsibilities...who is charge of what.
9.Organizational...job titles and functions.
10.Funds...everyone is all about cash flow.
11.References...throw some names around.

Now you know the difference about beverage company business plans and beverage company marketing plans.

I've been getting many emails about starting new beverage companies and beer distributors lately, so I wrote down some new ideas about business plans for some of you budding beverage entrepreneurs out there. I've helped a few guys and gals get started in the beverage business, so if you want to pick my brain feel free to send me an email.

If you need some business plan and marketing plan examples about starting your own beverage business, please take a look at the Total Beverage Package.




Wednesday, July 30, 2008

Whew...What a Summer.

The dog days are upon us. I've been so busy I haven't had time to post much. There are so many new brands and products flooding the beverage market that I really don't know which ones will miss and which ones will hit. I haven't added any new brands recently because of the opportunities I'm missing with the brands I have. I am planning an all out distribution-space war with the competition in August, just to get some new packages on the shelf.

Heard at all the malt beverage conventions this summer: "space is running out, buyers are hiding from me, employees are saying they don't get paid enough, prices are going up, diesel is killing me, excise taxes are due, I'm ready to get out".

I'm thinking about buying one of those new .me domain names. How does distribute.me sound. Or beverage.me, beer.me, drink.me, sell.me. Anyway, they just started selling them at GoDaddy if you want to get a great name since all the .com's seem to be taken. Let me know if you come up with any good ones.

Do we still have a major brewery that is American owned anymore? The answer is no. What if the Yankees were owned by the French or the Cowboys were owned by a group from Asia. How about Ford and GM to the Swiss. Coke and Pepsi to Saudi Arabia. My advice if you are confused on which beer to purchase...drink Shiner because I love Carlos and he sings very well.

Adios, mi amigos.




Monday, June 09, 2008

Protecting Your New Beverage Company Idea

I love to think of new beverage company ideas daily. I have developed hundreds of new beverages and drinks...in my mind of course. When starting your own beverage company you must first think of protecting your trademarks and intellectual property. I was fascinated to learn of an upcoming live chat sponsored by Bevnet.com entitled "Learn to Protect Your Beverage through Trademarks." It is being hosted by Gregg Sultan, a trademarks attorney and columnist for Bevnet Innovations, on Tuesday, June 24, 2008 at 11:00 a.m. EST.

Sultan is an associate at Dreier Stein Kahan Browne Woods George LLP. and has strong experience in the trademarks field. He recently contributed a piece to Bevnet Innovation on the process of selecting, clearing and protecting trademarks for beverage names. You can view this story here.

You can sign up for the live web chat with Gregg Sultan here.

Protecting your trademark is one of the ultimate responsibilities of anyone in the process of designing or starting to develop your own energy drink, soft drink, beer or alcohol drink, isotonic, tea, or juice drink. Personally, I can't wait to listen in on the presentation.




Thursday, May 15, 2008

Alcohol Content, Calories, and Carbs in Beer

I get asked the following questions a hundred times a day:

"How much alcohol is in my beer?"
"What is the alcohol content of different beers?"
"How many calories are in beer?"
"How many carbs do I have in my beer?"

I usually answer, "Who cares....doesn't it taste good, don't you enjoy it, don't you have more important things to worry about? But today I will give you the correct answer to your questions about the alcohol content in different beers, the calories in these beers, and the total carbs for each beer.

There are some very nice tables on the internet you can use. My two favorites are found at RealBeer.com and Beer100.com. These tables list different beers, the alcohol content, the calories in each beer, and the carbs for the beers. The following example chart is from Beer100.com :

Brand

Brewery

% AlcoholCalories/12 oz Carbs
Anchor PorterAnchor5.6209*
Anchor SteamAnchor 4.915316.0
Anheuser Busch Natural Light Anheuser Busch4.2953.2
Anheuser Busch Natural IceAnheuser Busch5.91578.9
Aspen EdgeAdolph Coors4.1942.6
Blatz Beer Pabst4.8153 12.5
Blatz LightPabst**8.5
Blue MoonAdolph Coors5.417113.7
Bud DryAnheuser Busch5.01307.8
Bud IceAnheuser Busch5.51488.9
Bud Ice LightAnheuser Busch4.11106.5
Bud LightAnheuser Busch4.21106.6
BudweiserAnheuser Busch5.014510.6
Budweiser SelectAnheuser Busch4.3993.1
Busch Beer Anheuser Busch4.613310.2
Busch IceAnheuser Busch5.916912.5
Busch LightAnheuser Busch4.21106.7
Carling Black LabelG. Heileman4.313812.5
Colt 45 Malt LiquorG. Heileman6.117411.1
Coors Banquet Beer Adolph Coors5.014210.6
Coors LightAdolph Coors4.21025.0
Genesee BeerHigh Falls Brewing4.514813.5
Genesee Cream AleHigh Falls Brewing5.116215.0
Genesee IceHigh Falls Brewing5.915614.5
Genesee RedHigh Falls Brewing4.914814.0
George Killian's Irish RedAdolph Coors4.916313.8
IcehouseMiller51328.7
IcehouseMiller5.51499.8
Hamm's BeerMiller4.714412.1
Hamm's Golden DraftMiller4.714412.1
Hamm's Special LightMiller4.11107.3
Keystone PremiumAdolph Coors4.41085.0
Keystone LightAdolph Coors4.21045.1
Keystone IceAdolph Coors5.91436.6
Leinenkugel Honey WeissLeinenkugel4.9214912.0
Leinenkugel Northwoods LagerLeinenkugel4.9416315.3
Leinenkugel OriginalLeinenkugel4.6715213.9
Leinenkugel Creamy DarkLeinenkugel4.9417016.8
Leinenkugel Red Leinenkugel4.9416616.2
Leinenkugel LightLeinenkugel4.191055.7
Leinenkugel Amber LightLeinenkugel4.141107.4
Lowenbrau Dark5.0160
Lowenbrau Special Beer5.2160
Magnum Malt LiquorMiller5.615711.2
Michael Shea'sHigh Falls Brewing4.6214513.0
Michelob Amber BochAnheuser Busch5.216615.0
Michelob BeerAnheuser Busch5.015513.3
Michelob Golden DraftAnheuser Busch4.715214.1
Michelob Golden Draft LightAnheuser Busch4.11107.0
Michelob Honey LagerAnheuser Busch4.917517.9
Michelob LightAnheuser Busch4.31136.7
Michelob UltraAnheuser Busch4.1952.6
Mickey's Fine Malt Liquor Miller5.615711.2
Miller Genuine DraftMiller4.714313.1
Miller Genuine Draft LightMiller4.21107
Miller High LifeMiller4.714313.1
Miller High Life LightMiller4.21107
Miller LiteMiller4.2963.2
Milwaukee's BestMiller4.512811.4
Milwaukee's Best LightMiller4.5983.5
Milwaukee's Best IceMiller5.91447.3
O'Doul'sAnheuser Busch0.47013.3
Old Milwaukee LightStroh3.81148.3
Old Milwaukee BeerStroh4.514612.9
Olde English 800 Malt LiquorMiller5.9 16010.5
Olympia Premium LagerPabst4.714611.9
Pabst Blue RibbonPabst5.015312.01
Pabst Extra Light Low AlcoholPabst2.567*
Pete's Wicked Ale5.317417.7
Red Hook ESBRed Hook5.7717914.15
Red Hook IPARed Hook6.518812.66
Rolling Rock Extra PaleLatrobe4.6142
Rolling Rock Premium Beer Latrobe4.512010.0
Sam Adams Boston Lager Boston Beer4.7516018.0
Sam Adams Boston AleBoston Beer4.9416019.9
Sam Adams Cherry WheatBoston Beer5.216616.86
Sam Adams Cream StoutBoston Beer4.6919523.94
Sam Adams IPABoston Beer5.93175
Sam Adams LightBoston Beer1249.7
Sam Adams Pale AleBoston Beer5.25145

Schaefer BeerPabst4.614212.00
Schlitz BeerPabst4.714612.1
Schlitz LightPabst4.2110*
Schlitz Malt LiquorPabst6.2185*
Sierra Nevada Pale AleSierra Nevada5.620012.3
Sierra Nevada PorterSierra Nevada5.620015.7
Sierra Nevada StoutSierra Nevada5.821019.4
Signature Stroh BeerPabst4.8153*
Stroh's Beer Pabst4.6 14912.0
Stroh's LightPabst4.4 1137
Tuborg Deluxe Dark ExportG. Heileman5.1163
Tuborg Export QualityG. Heileman5.0 156
Weinhard's Private ReserveMiller4.81509.9
Weinhard's Amber LightMiller4.213511.5
Weinhard's HefeweizenMiller4.915112.2
Weinhard's Blonde LagerMiller5.116114.0
Weinhard's Pale AleMiller4.614713
Yuengling AleD.G. Yuengilng5.014510
Yuengling PorterD.G. Yuengilng4.515014
Yuengling Premium BeerD.G. Yuengling4.413512
Yuengling LightD.G. Yuengling3.8986.6
Yuengling LagerD.G. Yuengling4.413512




Do you like to make your own beer? Click here to gain access to 641 Home Brewing Recipes.




Wednesday, April 30, 2008

Freight Allowances and Fuel Surcharges for Beverage Distributors

Freight Allowance or Fuel Surcharge? I find these terms going through my head twenty-four hours a day. A freight allowance is usually passed down to beverage distributors from their suppliers to alleviate the financial burden of high freight rates. Freight Allowances are also used to equalize FOB’s for beverage distributors located long distances from where the products are produced and shipped. A fuel surcharge is an incremental charge added to the total invoice from a beverage distributor to a retail establishment. If your company is not receiving freight allowances or passing on a fuel surcharge to your customers, you need to ask yourself some serious questions.

Freight Allowances

Many beverage distributors receive freight allowances from their suppliers. If you are not receiving them, you need to demand an allowance from your suppliers. I have heard and seen instances of beverage distributors in California, Texas, and Florida receiving substantial freight allowances from many well-known suppliers. If your suppliers are doing this for one distributor, they should be doing it for all.

Fuel Surcharges

Some distributors, including myself, have added $1.00 and $2.00 fuel surcharges to retail invoices. There has been some backlash from the suppliers and major chains, but overall many retailers have come to expect a fuel surcharge. I am considering changing my surcharge to a percentage of the total invoice. It will probably be 2% to 2.5% of the total invoice cost.

With rising diesel and gasoline costs to beverage distributors, make sure you start asking for freight allowances and adding fuel surcharges now. Fuel for our trucks will never be cheaper than it is now. And that causes many sleepless nights for me.




Wednesday, April 02, 2008

Struggling with Convenience Store Cooler Box Sets?

Why do we lose sleep over cooler resets? How come my company never gets enough cooler space? Will there ever be a time when I can expect fair market share in a beverage cooler? Space management is more important to your beverage business than anything else. When building your beverage business, building a space management plan will deliver added market share and cash flow. Some key characteristics to a good space management plan include:

1. Take time to analyze your current space in all accounts.
2. Take more time to analyze the space allocated to the competition.
3. Note the brands and packages that are selling.
4. Watch for out of stocks.
5. Definitely check code dates…they are time bombs sitting on the shelves.
6. See which packages are over spaced and under spaced.
7. Make sure there are no gaping holes in the set or underutilized space.
8. Discuss your products strengths and your competitors’ weaknesses with account decision makers.
9. Keep your space clean! Doors, shelves, products, deep well…your customers appreciate this more than you know.
10. For incremental sales, think outside the cooler. Use racks, suction cups, displays, hot shelves, ice downs, etc.
11. Refuse to lose space…find alternatives, beg, and whine. Remember in the beverage business you can go from first to worst any given day.

Your space management plan should revolve around these key characteristics. You will enjoy the benefits of increased sales from more packages on the shelves, less out of stocks, more cash flow, and a buyer impressed with your knowledge and interest in his business.




Monday, March 10, 2008

100 Resources Needed to Start Your Own Soft Drink Beverage Company

I am compiling a checklist for aspiring beverage company distributors. Included in the checklist is everything you will need, in the form of resources, to start your own soft drink, new age, beer, or energy drink beverage distributorship:

1. Warehouse/Storage              51. Cell Phone
2. Van/Delivery Truck             52. Voice Mail
3. Uniforms             53. Route Book
4. Two Wheeler             54. Distribution Channels
5. First Aid Kit             55. Company Policy
6. Route Accounting             56. Employee Policy
7. Point of Sale             57. Fuel Supplier
8. Route Sheets             58. Electricity
9. Tape Gun             59. Gas/Water
10. Build To Lists             60. Blade Cutter
11. Pricing/Label Gun             61. Tape Strips
12. Products             62. Cleaning Supplies
13. Shelf Strips             63. Breakeven Analysis
14. Customers             64. Receiving
15. Insurance             65. Legal Ownership
16. Cash Flow             66. Organizational Chart
17. Glide Racks             67. Filing Cabinet
18. Imagination             68. Stapler
19. Patience             69. Security
20. Health             70. Inventory Controls
21. Banker             71. CMA Programs
22. Calculator             72. Discounting
23. Invoices             73. Rebate/Return Policy
24. Fork Lift             74. Promotions
25. Static Stickers             75. Damaged Product Procedure
26. Pallet Jack             76. Forecasting
27. Computer             77. Ledger
28. Suppliers             78. Petty Cash
29. Street Sheets             79. Budget
30. Presentations             80. Long Term Plan
31. Wallet Chain             81. Margins
32. Honesty             82. Laid Ins
33. Internet             83. FOB’s
34. Pen/Pencil             84. Order Staging
35. Notepad             85. UPC’s
36. Printer             86. COD or Credit Terms
37. Humor             87. Rotation
38. Mission Statement             88. OSHA Guidelines
39. Goals             89. CDL
40. Business Plan             90. Balance Sheet
41. Excel Spreadsheet             91. Franchise/Contract
42. Fire Extinguisher             92. Brand Programming
43. EDI Capabilities             93. Merchandising skills and Tools
44. Word             94. Dependability
45. Power Point             95. Versatility
46. Space Management             96. Laptop Computer
47. Enthusiasm             97. Briefcase
48. Comfortable Shoes             98. Business Cards
49. Samples             99. Back Brace
50. Dealer Loaders             100. TIME

Please let me know what I've left out!