Beginner’s Guide on Starting a Beverage Business in the United Kingdom
Back in the day, most people would have their coffee packed in a paper hot cup, ready to be consumed. Since then, rapid urbanization over the last few decades has expanded the word ‘beverage’ massively. Today, there are so just many types of drinks catered to a variety of customers.
People love beverages. For every occasion, there is always the perfect drink. Beverages cater to all sorts of audiences. As a result, the beverage industry is a lucrative, billion-pound field, and if you do homework right and execute your plan well, you might just be hitting the banks!
Just like any other setting up any business, opening a new company is no easy feat. First, you need to know what you’re getting yourself into. So it’s crucial to educate oneself as much as possible – you can start with reading this guide to company registration in the United Kingdom.
Wondering how to make your break in the beverage industry? Look no further. In this guide, we will be taking a look at what a beverage business is all about, how to get started, and where to find the right help. So, your notebook and jot down these tips on starting a beverage business in the United Kingdom!
What Is a Beverage Business?
By definition, a beverage refers to any type of drink aside from water. Therefore, if you commercialize beverages, you get a beverage business. The food and beverage industry is constantly enlarging and changing to accommodate its seven billion citizens.
The food and beverage industry is one of the biggest manufacturing exports in the UK, with a collective value of eight billion pounds per annum. A beverage business can be a fun and exciting venture. The best part is, the creativity aspect is entirely up to you! Every year, we see many types of new drinks and old ones resurfacing.
One drink that most of us probably tried during last year’s COVID-19 quarantine was the whipped Dalgona coffee, which took the world by storm. The coffee beverage originated in South Korea in the 1960s and became more popular than ever was, 60 years later after blowing up on social media. Today, shops and cafes came up with their own version of the Dalgona beverage and started selling it. This shows that even a simple drink with minimal ingredients can have a vast clientele base (if done right)!
Getting Into the Beverage Business
We go as far as to say that having a beverage is a part of our culture. All across the world, people enjoy going out for a drink – and no, we’re not necessarily talking about alcoholic beverages. A beverage business will always be in high demand as various types of beverages are always in demand.
From coffees, soft drinks to liquor and floats, the market is enormous and caters to all kinds of people. Many families set aside time for tea, whereas groups of friends have fun sipping on their customized boba drinks. Even business deals are conducted over a cup of coffee. With that said, when you’re starting a beverage business, having a blueprint is necessary. There are a few factors that you need to outline clearly:
- Developing the product.
It would help if you asked yourself a few vital questions, such as who your customers will be and whether or not your drink targets a niche market. Plus, you need to decide if you are going to be creating an original recipe or improving upon one.
- Creating the brand.
Create a brand you can stand behind. Do not underestimate the importance of brand awareness – it gives you a sense of individuality that helps establish your business apart from the rest. Besides, you can also leverage one brand to create more awareness for your beverage business. Remember, the proper branding (and marketing) makes or breaks the company!
- Finding a location.
If you’re setting up a physical location for your beverage business, like a store or a shop, you will have to study the area beforehand. Do your research on the area’s demography. The location also plays a paramount role in attracting your customers. Pick a place where your product is in high demand or a site with low competition.
With the right help, you can be part of this massive and growing industry. For that, you can refer to reliable corporate service providers to assist you on this entrepreneurial journey.
What You’ll Be Needing
Before starting a beverage business in the United Kingdom, there are a few licenses you must apply for, and they all depend on how you’re going to run your business. But first, you must determine the type of business, whether it’s a sole trader, partnership, limited liability partnership, or a limited company.
Moving on, after you have decided on a business type, you may need to register for the Soft Drinks Industry Levy. This is all the more important, especially if you plan to mass-produce your liable drink and rent a warehouse. Apart from that, if your beverage contains alcohol, you must obtain alcohol licensing. You can refer here for more information on what alcohol licensing you may need.
Remember, all food and beverage businesses must be registered with the local council in the UK before they are legally allowed to sell to the public. There are plenty of instances of people who get jittery at the thought of registering a business. Therefore, if you tend to get overwhelmed, you can always reach out to company incorporation services in the United Kingdom.
The Bottom Line
We understand that leaping into starting a beverage business in the United Kingdom is anything but easy hence why we offer our one-stop solutions for you! Our comprehensive team will swiftly help you to set up a beverage business in the United Kingdom from start to finish. In this way, you can let the professionals handle the technicalities, while you focus on the other aspects of your beverage business.
With more than a decade of experience, 3E Accounting has become a globally recognized accounting firm. Our team has assisted thousands of clients in setting up, managing, and expanding their businesses. For more information on our services and business solutions, contact 3E Accounting today!