How to start a soft drink and juice distribution business in Nigeria

Drinks is a composite name for edible liquids but as it relates to this business idea and model, I am making special reference to drinks like malts, soft drinks and minerals, beers, wines, canned juice, canned beverage drinks and the likes of them. You can really make money beyond your reasoning and imaginations if you go into this business with the right plans and management skills too. Know what your customers want and provide it for them at high profit margins that will always put smiles on your face even when every other person beside you is sad or frowning.

Some popular brands of drinks which you can decide to deal in included Malta Guiness, Amstel malt, Viju Milk, Bobo drinks, Nutrimilk, Fanta, Coca-cola, Sprite, 7-Up, Five Alive, Hollandia Yoghurt, Grand malt and many other too. Thus, supplying soft drinks, wines, juices etc in bulk quantities to these target customers like bar owners, hotels, shops, restaurants, schools and event/ceremony centres will surely make money for you like an oil well owner.

Things to consider

Let’s have a look at them

To become a soft drink and juice distributor, you need to consider some basic things such as the choice of a target market. This is crucial to the success of your business.

When choosing your target market, you need to pay close attention to soft drinks attracting the highest demand. Selecting rightly can make an immense impact on your business. You are likely to realize higher patronage leading to increased sales.

However, there are other equally important considerations to make. Such include your choice of a suitable location.

When choosing a location, you should factor in access roads, transport options available to you as well as holding or warehousing facilities in for your business among others.

Step 1: Decide what level you want to operate as a distributor. Be it as one-way dealer, minor or major dealer.

There are several distributorship levels which most soft drink and juice companies’ offer.

a. For major distributors, substantial amount of capital may be required which may run into millions. 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 a 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 will be provided to you.

b.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.

Step 2: Decide how much you want to start as a dealer. (here you can ask the sales rep of the company the various price starting options)

Step 3: Decide where you want to operate from

Step 4: Work your plan meticulously.

Step 5: Choose what type of shop you want to store your product stocks. Be it small shop, be it steel big shop or warehouse, depending on what you want.

But remember you must have bigger warehouse or space with heavy human traffic or vehicle traffic if you are going to become a major distributor.

Step 6: Go to any sales representative you want to operate with.

Step 7: Apply for a distributorship form. Let the sales representative know what you want, what package you want to order, where you operate etc

. You do not need to start from scratch as this may require substantial capital. To become a distributor, all you need to do is simply apply for distributorship rights from any soft drink company of your choice. However, one thing you need to look out for is to make sure the company has a solid brand with a wide acceptance of its products among Nigerians.

. To become a soft drink and juice distributor in Nigeria, certain procedures need to be followed. One of such considerations is the choice of a reliable partner. In choosing a partner or company, you will be spoiled for choice.

This is so because 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.

How much do i need to start wholesales of soft drink and juice business

The quantity and the type of soft drink you wish to sell on wholesale will determine your capital start-up. With N500,000 – N1,000,000; you can start a wholesale soft drink business on a small scale

How To Get Your Stocks

Most soft drinks companies have their sales representatives anywhere in cities such as Lagos, Ibadan, Kano, Ogun, Abuja, Port Harcourt, etc you can deal with dealers attached to by in different zones or areas. They will readily work with you anywhere you reside, if you order them to supply your stocks.

a. Get a shop in a busy location or operate from a busy area.

Buy different types of drinks in bulk quantities from the producers (the producing companies) and stock them in your store. You do not necessarily need to transport yourself to and fro these companies to buy their products, place your orders through phone calls or text messages and their distributors will supply the products directly to your store according to your specifications at reduced prices. Sell off the drinks in bulk quantities and cartons to your customers and smile as your bank account heats up with money. Expand your business as you make more profits and establish new depots in order to make more money having a nice time in the business.

b. Become a Wholesaler of Soft Drinks and Share Profit Daily

One of the easiest lucrative businesses you can start (with N50, 000 or more) and smile to the bank is for example the coca cola distribution business opportunity. I know that starting a coca cola distribution business request you some few millions of naira. But You can become a distributor for the coca cola company in Nigeria with a minimum of N50,000. That is called one- way package business. You can receive your own share of wealth from the thousands of festive season spenders daily. Consumers can make you smile to the bank daily if you know what you are doing. You must know how to market so well. Starting one-way pack business as a dealer or distributor is much cheaper than Coke bottles business.

How Much Can You Make As A Distributor in Nigeria?

It depends on your environment where you operate and how well you market your product. You make more or less profit, replying on the environment you sell. You sell fast or slow, depending on the environment you choose yourself.

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 or Juice 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.

How To Generate Money From Soft Drinks and Juice Business

(1) Make Money Running A Bar

Being the owner of a bar is one way to generate cool money from the business of selling drinks. Generally, bars sell alcoholics, but soft drinks and juices are also sold as supplementary drinks.

So, if you wish to run soft drink business in a bar, understand that it comes as an additional aspect of the business. This means you must already be running a bar. It does not make sense to open a bar solely for the purpose of selling soft drinks. If you do, you may have very low patronage as the majority of people coming to a bar are in search of alcoholics, and not necessarily soft drinks. The exception to this is if you make it clear that your bar sells majorly Soft drinks, and not necessarily alcohol.

So, if that is the case, go ahead and rent a little store and make it comfortable for relaxation by people. Make the drinks available to those who come around to relax. Your bar, of course, should have a television set with access to cable stations which keeps your customers relaxed while having their drink. Chances are that they are likely to come around for another good treat.

(2) Make Money Selling/Distributing Soft Drinks and juices In Bulk

The other aspect of this business is the bulk sales and/or distribution. If you must run it successfully, then it is recommended that you get a deep freezer, different brands of drinks and a generator set.

Chilled drinks will surely attract lots of customers. This business is very viable because of the hot nature of Nigeria’s weather. Passers-by and people in your locality will always come around to get cold drinks because of the hot weather.

(3) Make Money Setting Up A Soft Drink Depot

If you have a drink depot too you can get lots of drinks which you would retail to customers in need of them. This aspect of the business entails that the drinks are supplied by companies to your depot and from there to your customers/clients.

When you become a major distributor, you are entitled to any rebate structure from 3% to above 7% you make your purchase in bulk. It depends on the type of volume you buy in bulk. If you buy 300 packs or crates, you are entitled to 3% on your purchase. If you buy 800 crates or packs, you are entitled to 4% on your investment. And each time you buy in bulk, you are entitled to any rebate of the volumes. What a profit!.

Starting a soft drink and juice distribution business in Nigeria is lucrative if you know what you are doing. Buying and selling assorted soft drinks too can make you rich because spenders can not stop drinking. Therefore, starting a soft drink business can make or mar your profit, depending on your location and marketing skills.

Get our training guide on how to start a soft drink and juice distribution business in Nigeria. Soft drinks like Coca-Cola, Fanta, Pepsi, 7UP, Mirinda, Fanta, Malt, Schweppes, and Big Cola are fast-selling in Nigeria. In fact, Nigerian bottling companies like 7up, Nigerian Bottling Company (NBC), and AJE Group are looking for distributors nationwide. You can make at least ₦2.5m monthly doing this business anywhere in the country. Understanding how to become a soft drink distributor in Nigeria is crucial for anyone looking to venture into this business.

Venturing into the soft drink business is viable anywhere in Nigeria. Despite its rising costs, its demand is high at all times of the year, and you can start with as little as four million Naira. Ensure you develop a solid business plan and set up your business in an ideal location, as implementing both can help drive sales. 

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