How To Start A Bottled Water Business

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Bottled Water

Contrary to popular assumptions, you do not need to be a billionaire to start a bottled water business. The biggest challenge that your business strategy should address is the fierceness of the competition since you will most likely be fighting with the industry’s giants. Fortunately, such a venture can still be launched effectively. We’ll provide you with a tutorial that should help you get started quickly.

There are certain stages to starting a bottled water business. Water is one of the most precious resources available to humanity. Its commoditization potential may not be ideal, but its rarity as an essential resource necessitates it to be considered as a rare element. Without a defined structure or strategy to follow, entering the bottled water industry may be a daunting task.

The articles that follow will guide you through bottled water testing, source development, licensing, and labelling.

How To Start A Bottled Water Business :

1. Examine the Bottled Water Market

The first step to starting a bottled water business is to do market research in order to discover opportunities and potential threats. Market research may also give details about your competition and target market. The worldwide bottled water business will be worth $319.8 billion by 2020, according to Allied Market Research. Its expansion is spurred, among other things, by increased customer demand for healthier products.

Bottled water now comes in more tastes and variations than ever before. Premium-quality bottled still water, sparkling water, vitamin water, flavoured water, and everything in between are available to consumers. Mountain Valley Spring Company, Danone, Natural Waters of Viti, and other significant industry competitors are revolutionizing this market by developing unique goods employing cutting-edge technology. The industry has a compound annual growth rate of more than 7%, which is much higher than in other areas. Bottled water is being preferred over soda, energy drinks, and other beverages by consumers. Water contains important elements that promote health and well-being and has no calories. The demand for bottled water is heavily influenced by external variables such as the local economy. As a result, it tends to fall as consumer income falls.

2. How Water Bottling Businesses Operate

In 2015, Americans used a record 11.7 billion gallons of bottled water. This beverage has no pollutants or microorganisms. In comparison, only 2% of tap water is safe to drink. If you want to start a bottled water business, you’ll need the necessary equipment to filter and bottle the water. A more straightforward solution is to collaborate with private-label bottled water suppliers and delegate the heavy lifting to them.

Private-label agreements are ideal for new and small businesses with limited resources. Starting your own bottled water business demands an initial investment of $10,000 to $50,000. Rent, utilities, staff compensation, and other continuing expenditures should also be considered. Using a private-label bottled water supplier can help you save time and money.

Premium Waters, for example, provides these services to companies of different sizes, ranging from local convenience stores to big merchants. Customers may choose between spring water and reverse osmosis water in 10-ounce, 16.9-ounce, 20-ounce, or 33.8-ounce bottles. The firm works with big water brands such as Glacier Clear, Water Joe, and Nicolet Natural, and each bottle can be customized with your brand and logo. Similar services are offered by Bottled Events, Private Spring Water, and Bottle Your Brand.

3. How Do You Get Funding For Your Bottled Water Business?

How much money do you need to start a bottled water business? Bottled water firms that own water bottling equipment are now soliciting cash for their initiatives. What is the most effective strategy to raise funds for your new venture, small business, or startup? Consider asking for grants or borrowing money from friends or family members.

To generate cash quickly, you may also use crowdfunding services such as Kickstarter, Indiegogo, GoFundMe, and others. However, in order for each to be effective, you must first understand the process of building marketing campaigns. You might also consider purchasing an existing bottled water business. In this manner, you may learn from the errors or accomplishments of another business owner.

Owners of bottled water businesses that have solid financials, such as high income and cash flow, may be eligible for bank loans. You can also seek assistance from angel investors, venture capitalists, or financial grants. All of the foregoing carries the danger that if your bottled water business fails, a bank or investor may seize your company’s assets. There are several well-known firms that began with simply a concept and little to no finance.

Even when they may not have enough funds to completely fund their ideas, smart entrepreneurs know how to use their financial resources. They also hunt for finance partners and innovative marketing options to help them advertise their company.

The FDA regulates bottled water as a food product. While it is true that vitamin water, flavoured water, and tonic water can be sold, these items are considered soft drinks. Except for antimicrobial agents and fluoride, bottled water cannot include any additional substances, according to the FDA. Bottled water firms are legally permitted to sell the following items:

  • Mineral water is water that originates from underground and contains naturally existing trace minerals.
  • Springwater
  • Water from a well
  • Water from an artesian well

Before being bottled, purified water or tap water is processed using distillation, reverse osmosis, ozonation, and other processes.

Bottling factories are subject to FDA inspection and are governed by FDA rules. In some states, these establishments must be licensed on a yearly basis. Bottled water companies must adhere to current good manufacturing practice laws to guarantee that their goods are safe and do not exceed the maximum limits of physical, microbiological, and chemical pollutants.

If you decide to deal with a private-label bottled water supplier, be sure they satisfy these requirements and employ FDA-approved production facilities. Ideally, look for businesses that offer water in BPA-free bottles. Bisphenol A, or BPA, is a chemical that is extensively used in plastic containers and can leach into food and beverages, influencing blood pressure, endocrine function, prenatal development, and other factors. Using BPA-free bottles can provide you with a competitive advantage and demonstrate that you care about the health of your consumers.

5. Create a Business Plan

Write a business plan for your water firm next. Determine your legal entity and company strategy, as well as your target audience and objectives. Include a detailed explanation of your market, ideal clients, and competition. From company license to marketing, every step of the process is covered.

Do you intend to start a small water bottling plant? Perhaps you’d want to provide water bottle refilling services. You may also open a retail water store. Choose a company model and then develop a strategy around it. Make sure you address the financial issues as well. Determine your initial expenditures and, if required, ask for a loan or seek out investors. Consider how many staff you’ll require, who will be in charge of what, what distribution methods you’ll utilize, and how you’ll advertise your company. Take into account the specific needs of your bottled water business, whether it’s a franchise or a mineral water bottling factory. Make a list of everything and devise a strategy to achieve your objectives.

6. Request Business Licenses

As with any other business, you must select a name for your firm and register it with the state. Choose a business structure, such as a limited liability company (LLC) or a partnership. After you’ve completed these procedures, go to IRS.gov and apply for a tax ID number online.

Open a bank account for your business and apply for a loan if you want to fund it. The type of company will determine the licensing needs. A water bottling factory, for example, is governed differently from a retail water shop. A water bottling plant license, in addition to a regular business license, may be required depending on your area. This is a requirement in the state of California, for example. The following information should be included in your application:

  • Name of the company, address, type of ownership, and other pertinent information
  • Bottled water product types
  • Gallons per week on average
  • Brand names of products bottled at your facility
  • source of water
  • Name and location of the source or water district

In California, the licensing price is $1,335. To renew it, you must pay an additional $473 (for firms generating fewer than 5,000 gallons per week) to $1,335 (for enterprises producing more than 5,000 gallons per week) (for companies producing over 5,000 gallons of water weekly). The specific criteria and fees for a water bottling facility license vary by state. Permits from your local fire and health agencies may also be required.

7. Promote Your Bottled Water Business 

Bottled water may be found at almost every retailer, from petrol stations to supermarkets. The only way to stand out from the crowd is to have a sound marketing plan in place and to remain up to date on the market and industry trends.

Define your one-of-a-kind selling offer and utilize it to reach out to more customers.

For example, if you offer water in BPA-free bottles, market it as a healthy option for youngsters and expectant mothers. If your brand specializes in mineral water, stress its nutritional content and the benefits it provides athletes. Explain how it can hydrate the body after a strenuous workout. Consider public initiatives to urge people to use bottled water instead of sugary beverages.

Look at your competition for ideas. In 2016, Nestlé Waters Mexico, for example, initiated an educational initiative to promote awareness about the significance of appropriate hydration. Even if you have a little budget as a startup, you may still hold local events, competitions, and online contests to attract clients and promote your brand.

Collaborate with gym chains, schools, and other local companies, support your local Little League team and have a strong web presence.

If you want to start a bottled water business, you need to conduct your homework first. Before making any decisions about how to distribute your goods, you’ll need to know which merchants are the greatest match for your firm and what sorts of demographics they target. It will also assist if you maintain track of sales so that you may modify prices or invest more actively in marketing efforts as needed. Make sensible decisions as part of running this sort of business since not every decision is simple but each one has an impact on future success!

So there you have it, a detailed guide to start a bottled water business. I hope you found the article interesting.