How to Become a Soft drink Distributor in Nigeria

There are a lot of products that can be supplied to start a business and one of such products is softdrinks which the rate of consumption in Nigeria is very high thereby making the business a very lucrative one. So if you are have been looking for a business that you can do that guarantees you substantial income with low start up capital,then you can start the business of supplying drinks to people and organizations for their various uses.

There are several soft drink companies doing business in Nigeria. Most of these companies have multiple products. However, it is advisable that you choose those with products that have wide acceptance among Nigerians. Doing this enables your business move faster as the demand for such products is high.

Some Soft Drink Companies in Nigeria

If you have ever wondered how many such companies do business in Nigeria, wonder no more as we will list some of these companies. First of all, there are soft drink companies with a global spread as well as those operating only within Nigeria.

Some of these companies include; Coca Cola which is arguably the biggest soft drink company in the world. It has subsidiaries in almost every country in the world, and is one of the most recognized brands worldwide.

Others include:

the Nigerian Bottling Company

7 Up Bottling Company

Limca Bottlers PLC

Crown Drinks Limited and Vitamalt PLC

The list goes on and on as these are just a few out of many.

What this Business needs

The business involves you buying drinks at wholesale prices from producers, depots, distributors and major sellers of the product and supplying to people at a price to make some profit.

The business involves you having a bit of money to spare especially if you are willing to supply a lot of people including private individuals and organizations and events.

If you do not have such money to spare, you can start little by concentrating on supplying people in your neighborhood or around your area like to retailers who will then sell to the final consumer.

Key Requirement to Start this Business
Learn the Business

The business may sound easy for you to start or do but to avoid entering any problem it will be better you take time out to properly learn the business.

You will need to learn where to buy the drinks or if possible to find out if you can be supplied by the various depots for little or no fee at all.

You can also learn the fast moving products in the market and what people demand more for and the quantities you can buy to make good money.

You can get some one who has been in the business to show you the way around the business as well as the things you will need to avoid.

Requirements to set up Soft Drink Business

Capital

The capital to start soft drink business depends on how you want to start either large or small scale. It s very flexible so much that you can start with #50,000 but the more money you put into it so also the more profit you make. For instance if you have #500,000 that means you can buy all the brands in a good number. When drawing your soft drink business plan, factor in the money for rent, wheelbarrow or mobility.

Rent
Get a good location that is accessible, can easily be located or seen. Rent a place with enough space for cars to park or stop to buy. Most times people stop by when coming from work or are passing. Some traders sell by the road side. Hawkers are the next set of people that patronizes the business most, so let them see you quick.

Setting

Make your shop look beautiful. The way you arrange your drinks can actually attract lots of buyers. Look at the way others arrange and copy the best method of arrangement. Some people arrange few drinks and it appears plenty due to the way they are arranged.

Choose a Niche

There are many drinks to choose from for sales, soft drinks only, alcohol, wine , bottle water etc. While some people concentrate on a particular brand others sell all or mixed brands. Your customers can determine which products to go for. Sell the one that moves market most, I must tell you soft drink sells in volumes. Decide whether to sell only bottles or plastics or both.

The Application Process

Although each of these companies may have their requirements, there is a general procedure for applying for distributorship rights. Being a distributor means that you are given the privilege of operating under the brand name of the company. You will need to meet the company’s requirements. Most distributorship requirements demand that you own certain equipment such as:

warehouse

delivery vans or trucks

as well as the money needed for your initial products

All you need to do is walk into any soft drink company of your choice. A detailed guide on the application process is provided.

Another way to learn about becoming a distributor is through existing distributors. Although some may see you as a threat to their business, you can avoid this by telling them you will not be doing business anywhere around their business. It is important that you be truthful in this.

Importance of Doing This Business

High Demand for Drinks

People drink a lot which makes the demand for any type of drink high. We see drinks every where as people consume it a lot. It is taken to “cool off” especially when it is cold and people are relaxing, it is taken when people want to eat and do not necessary want to have water. Generally people take drinks a lot which makes the business a good one to start.

Also with drinks it is open to every one as there are drinks for children and adults depending on what they will like to take.

There are Lots of Event and Ceremonies

A lot of events take place on a daily basis. For example in Nigeria, people are fun loving and like to celebrate a lot and like marking a milestone achieved. For this reason we have a lot of events taking place in a lot places around the country on a regular basis. We see events like birthday parties, wedding ceremonies, naming ceremonies, anniversaries, graduation parties, engagement parties and lots more where people celebrate a lot.

At such events people have a lot of drinks, which is a major item at such events. Also apart from private individuals having their own parties and events the business world is not left out as they also have events they organize. We see companies and organizations hold various events like seminars, forums, launching and lot more with different type of drinks served at these events making the product to be high in demand.

Variety of Drinks To Supply

Another good thing of this business is that there are a variety of drinks you can supply as there are a lot of choices and options available when you want to start the business.

You can choose to supply soft drinks or minerals, alcoholic or non alcoholic drinks, wine, fruit drinks, juices and lots more.

You can also decide to supply all types of drinks if you feel you can cope and manage the business well as this will help you increase your customer base as well as the money you will make.

How Profitable is the Business

If you qualify to become a distributor of the company of your choice, there are advantages attached. These advantages include the profit margins offered by the soft drink company. Here, you benefit from this profit margin from every product you sell. Each product as an allowed margin which goes to you while selling at the official rate allowed by the company.

Although this business is a good business to do, it is important that you understand the cost implications involved. There are several distributorship levels which most soft drink companies offer. For major distributors, substantial amount of capital may be required which may run into millions.
List of Soft Drinks in Nigeria

Pepsi

Coca cola

Sprit

Fanta

Lacasera

Bigi

Schweppes

Teem

Choco drink

Smoov chapman

Energy monster

Maltina

Malt

Materials Needed for Soft drink business

Refrigerator

Show glass

Opener

Distribution vehicle such as; truck, keke, wheelbarrow etc.

Other Businesses you can add to wholesale soft drinks Business

Yorgurt business

Gala

Milk drinks

Beverages etc.

How to do this Business

Before starting, you will map out your strategy of how you want to run the business including the people and market you want to serve. Will you cater to people around your neighborhood and sell to retailers who in turn sell to people to consume or will you focus on supplying drinks to people and organizations that have intentions of hosting various events.

The profitability of drink distribution business depend on the customers you will get to supply the drinks. All you need is to make sure you contact customers that will need the products such as bars, restaurants, sitouts, event cetres and more. After building your customer list, you can go ahead to place your order with the supply companies.

Staffing Strategies

As the business grows, you will need to employ people that will assist you in supplying the drinks especially when you have lot of customers and events to supply. Ensure they have some level of experience and are hard working and if they have no experience, they should be willing to learn on the job. They should be neat and presentable with good customer service skills.

Transportation

When supplying the drinks you will need a vehicle to transport them. If you do not have enough money to buy a vehicle you can hire a vehicle to help you carry the drinks to their location until you are able to buy your own vehicle. Before starting the business, make sure you do a feasibility study, register the business and fulfill on requirements needed by the authorities.

You can advertise the business by networking with people around you at meetings and events among other places and tell them about your business. Create business cards to give to people and you can also promote your business online.

Conclusion

Soft drink dostribution business is a very lucrative amd cheap business to venture into
The profit is very encouraging. Anybody can do the business, it doesn’t require any qualification. You can decide to do soft drink distribution business,

Soft drink wholesale prices can be gotten from the closest dealer.

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