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How To Start A Soft Drink Business In Nigeria (Complete Guide)

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How To Start Soft A Drink Business In Nigeria (Complete Guide). Are you searching for tips on how to start a soft drink business? Does this article aim at answering other related questions? Yes. These questions include: How much does it cost to start a soft drink company? How do I start a wholesale drink in Nigeria? How do I start a small soft drink company?

How To Start A Soft Drink Business In Nigeria

Table Of Contents

Soft Drink Business

The soft drink business is a firm that is simple to establish and that generates income on a continuous basis. The use of alcoholic beverages in Nigeria is very considerable. Previously, in order to establish a soft drink distribution company, you needed a minimum of N500,000 in cash, but this is no longer the case. Essentially, one may become a sub-distributor for any product, or for many of the labels. It may be tough to begin from the beginning, which is why you must look for merchants with whom you can collaborate.

You must submit an application for product distribution rights from any soft drink companies in which you have an interest. Make certain that the business has brands that are well-known in the industry; this will assist you in increasing turnover earnings since the demand for the goods will be strong. If you’ve ever questioned how many businesses like this operate in Nigeria, you won’t have to wonder any longer since we’ll list a few of them below for you.

The first thing to mention is that there are soft drink businesses with a worldwide reach, as well as others that exclusively operate in Nigeria. The Pepsi Corporation is one of these businesses, and it is probably the largest soft drink business in the world. In addition to having subsidiaries in almost every nation in the globe, it is also one of the most well-known brands in the world.

See also: Ways to start a frozen food business and make a profit

Requirements to start a soft drink business

If you want to work as a soft drink dealer, you must examine a few important factors. They include:

1. Capital

The amount of money necessary to initiate a soft drink company is dependent on whether you choose to operate on a big or small scale. It is very useful in the sense that you may begin with as little as N70,000, however, the more capital you put into it, the more revenue you will earn. For example, if you already have #700,000, you will be able to purchase all of the brands in a reasonable amount of time. While developing your soft drink company plan, remember to include funds for rent, a trolley, or other transportation equipment.

2. Rent

Choose a nice site that seems to be readily accessible and available. Hire a spot with adequate parking for vehicles or make a purchase. People commonly stop by on their way to or from work. Some vendors sell on the edge of the freeway. Hawkers are the next group of individuals that frequent the establishment, so make sure they notice you quickly.

3. Location 

Choose visible locations where people can easily locate your shop. Make your store appear lovely. The manner you organize your beverages may really attract a large number of customers. Examine how others organize and mimic the best technique of organization. Some individuals organize a few drinks in such a manner that they seem to be a large quantity owing to the way they are placed.

How lucrative is the business?

Among these benefits are the profitability provided by the soft drink business. In this case, owners gain from the profitability of each commodity that is sold. Every commodity has a permitted profit that belongs to you when you offer at the company’s approved pricing. It’s something that consumers purchase on a daily basis, and so there is no way you will not drive revenues. The gain in a handful is little, but the advantage is in the reversal.

If you want to earn more money than retail, you’ll need a large refrigerator. It’s also true. Retail profits are higher, particularly during the dry season. Depending on the brand, you may earn N150 from a single bottle of drink.

See also: How to open a business bank account (requirement and guide)

Steps to start a soft drink business

1. Know about the business

First and foremost, you would need to learn the basics of the business. Before starting the business, you may need to apply for training for some weeks in companies and firms that are into this particular business. Although this may take a while before starting your business, however, it is better to start well. You can also learn from people who have experience and have become successful through the business. Learn how the channel of distribution is done and some other necessary things attached to the business.

2. Market feasibility study

The next step is to make proper research about the business. Know the brands of drinks in the market and their order of preference. You’d also need to know their price lists and the highest consumed drinks. Having the right information will boost the sales of these drinks when you stock up.

3.  Register your business

Registration of your business is very essential in other to avoid disturbance from government agencies. This may seem not so important but your business needs to be registered. The name you give to your business makes it unique and this differentiates it from other competitors. Big companies would not want to work with an unregistered business.

4. Create a category of drinks

There are varieties of drinks in the market which would make selection very difficult. You may need to consider selecting drinks that have high demand, are less expensive (affordable) and drinks enjoyed by young people.

5. Get a store

You would need a store when starting a soft drink business. Try as much as possible to get a large store which is located in a place you can reach customers. If you are renting a store, do that based on your capital. Do not rent a store which you wouldn’t be able to pay for years to come. Before getting a store, ensure that the place is secure and safe, accessible by consumers (busy location), and tidy environment.

5. Get a car

You will agree with me that getting the drinks to your customers is best to boost your sales. Some customers would prefer the goods to be delivered to their doorsteps. A trustworthy driver would also be needed but if you can’t afford this, you might want to take up this responsibility. If your capital isn’t enough to finance transportation, you can hire a logistics company.

6. Apply for a wholesale distributor

You will have to apply to become a distributor but if you do not know how to apply, you can buy from a wholesale distributor you know. As stated earlier, most companies would want to partner with a registered enterprise.

7. Employee Recruitment

If you want to operate at a largescale level you may need to hire some workers who will make activities run smoothly and also to help in sensitive jobs. For a start, you can hire 1 or 2 staff people depending on the size of the store.  But as time goes on, you may need to hire more personnel.

8. Marketing

Customers won’t buy from you until they are aware of the new establishment. It is very important that you advertise your business to various consumers. You may want to use social media, personal contact which involves face-to-face interaction, online ads, giving out business cards to consumers, and also printing and distribution of flyers.

See also: How to target your audience on Instagram as a business


Soft drink companies are extremely simple to startup, it may be in the store, container, etc. Many individuals can afford the funds to start. The profit is promising. The profit is extremely positive. It requires no certification for anyone to ensure a successful outcome. You may choose to distribute soft drinks.

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Comments (3)

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  1. Yahya says:

    Am interested

  2. Anduje Hawa Blessing says:

    Am interested

  3. Abiodun says:

    I am really interested

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