How Much Does it Cost to Start a Drink Business in Nigeria – Rarely do you see a party that is without drinks. In Nigeria, a celebration is rather tagged as incomplete if people do not consume drinks whether alcoholic drinks or soft drinks. Apart from attending parties, when you pay visit to the houses of people, they search out for ways to offer drinks if they happen not to currently have them at home.
The high demand for these drinks has turned people into this area into real-time millionaires. We will be sharing this article with you to provide you with everything you need to start a successful drink business and the money you should have at hand.
Is Drink Business Lucrative?
Yes, drink business is lucrative whether you are beginning the business as a drink distributor or as a drink retailer in Nigeria. The drinks industry is so big that even though they are many Nigerian entrepreneurs who are going into it, everybody who knows what he is doing in the area is sure making his individual profits.
There is hardly any Nigerian party or even owambe, and concerts that you will attend and drinks will not have been shared to be consumed. Another reason behind the profitability of this business is that the drinks are consumed at home and you can choose to drink anywhere too. Drink is part of the daily living of Nigerians whether in traffic or at home or at parties, Nigerians definitely need to purchase drinks to relax.
How Much is Needed to Start a Drink Business in Nigeria
The capital needed to start your own drinks business in Nigeria hugely depends on the kind of of drink business you want to start. From every indications, because of the high cost of things in the country, if you want to start a drinks distributor business in Nigeria you are expected to have a capital of #2,000,000 . And if you are seeking to start drinks retailing business in Nigeria you can start with a lesser capital , say about #5,000 – #50,000. The capital that you need to start this your drink business in Nigeria also depends on the equipment that you have in hand to start. So the above budget is if you already have the equipment you will need so the capital will just be used to buy the drinks.
Some of the Soft Drinks Sold in Nigeria
If you wish to start soft drink business in Nigeria, there are many kinds of soft drink brands in Nigeria apart from them been presented in glass bottles, plastic bottles and disposable cans but the most famous soft drink to venture into include:
- Coca-cola (Coke)
- Mountain dew
- Big Cola
How to Start a Drink Business in Nigeria
Do you wish to start a profitable drinks business in Nigeria? Follow the step by step guide.
1. Decide the kind of Drink Business you are going into
Yes, the first thing to do when you want to start a drink business in Nigeria is to first make up your mind on the kind of soft drinks business you want to start. Do you wish to go into the business as a drink distributor or as a drink retailer? You need to make up your mind and of cause, this your decision will be reliant on the capital at your disposal.
If you do happen not to have the capital to start , maybe because you are not financially stable at the moment, you can seek for financial support from your family and friends or you can start saving ahead of starting the business.
2. Rent a Shop (size depending on the capital at hand) or Container
After you have prepared the capital you will need to begin the drink business, the next vital thing to do is to rent a shop or you can either buy or rent a container where you fix in the drinks and sell. How much do I have, how much can I afford, how big
do i want to start-up my business? All these plays critical role in whether you will be renting a shop or container. Likewise, Your location also plays significant role in which of these you will be finally settling for. But it is advised that you rent a container if you are starting the business as a distributor and you can rent a shop if you are going into the drink business as a full-time retailer.
When you are renting this shop or the container (as the case may be) make sure the money you are dedicating for it is not more than 30% to 40% of the capital at hand initially.
3. Purchase all the Necessary Equipment Needed
The equipment that you need to start soft drinks business in Nigeria are important, they shouldn’t be ignored especially if you are planning to base on cold drinks. The kind of drinks business is grouped under the soft drinks retailing business.
And the necessary equipment you will need to begin cold drinks business is just refrigerators and generators. But there are other equipments you can buy to make the business more comfortable for you and for your staff. They include:
4. Get Registered as a Drink Distributor
Registering your business as a distributor is very crucial if you want to be a distributor for the soft drinks companies you want to work for. Doing this keeps them in tract to knowing you and trusting you. There are also many other benefits to gain when you get registered and they can even sell drinks on credit to you, selling some of the bulk drinks to you at the lowest prices, including financial support.
Which implies that they will be able to lend you money to expand your drinks business . When you are a soft drink distributor, the registration puts you at the top of the drinks business after the role of the soft drinks manufacturers. One other thing you should also bear in mind is that getting yourself registered as a distributor to any of these soft drinks companies is not free of charge. This is actually where the #2,000,000 required as a capital which was mentioned earlier in this article can be applied.
5. Start Selling Soft Drinks
You can start selling and creating awareness by telling your family and friends about your drink business . Also, you can sell drinks to people who hawk in traffic or you can just employ some guys that will sell for you and then you can pay them on Commission bases.
6. Make Profits in Your Drink Business
You will surely make cool profits with time in your drink business, make sure to keep good records.
Drink business is profitable whether you are beginning the business as a drink distributor or as a drink retailer in Nigeria. The drinks industry is so big that even though they are many Nigerian entrepreneurs who are going into it, everybody who knows what he is doing in the area is sure making his individual profits.
Frequently Asked Questions
Why are profits so high in soft drink market?
Because of their significant purchasing power, which allows it to negotiate lower prices for raw materials, packaging, and other inputs.
Is selling of drinks profitable?
Drink business is lucrative whether you are beginning the business as a drink distributor or as a drink retailer in Nigeria
What drinks should I sell?
Drink mixers (non-alcoholic)
How profitable is soft drinks business in Nigeria?
Depending on the number of soft drinks or crates of drinks you sell you can be able to earn as much as #1,000 – #5,000 as your business profit per day
How profitable is a beer business in Nigeria?
For each bottle of beer you sell, you can make over N50 profit. If you sell up to 300 bottles in a day, you will make N50 x 300 bottles that is N15, 000 in revenue.
- Proguide.ng – How to Start Drinks Business
- Theinfoworth.com – How to Start Soft Drinks Business in Nigeria (2023)
- Nairarush.com.ng – Soft Drinks Business in Nigeria: How to Start as a Distributor or Retailer
- Enibest.com.ng – How To Start Soft Drink Business In Nigeria. Detailed Guide
- Bizweal.com – How Much Does It Cost to Start a Drink Business: Detailed Breakdown
- Starterstory.com – How Much Does It Cost To Start A Beverage Company? (In 2023)