How to Start a Seltzer Company

A Seltzer company is a business that produces and sells seltzer water, which is carbonated water that may be plain or flavored. Seltzer companies typically bottle or can their products and distribute them to retailers or consumers through various channels, such as grocery stores, convenience stores, online stores, and direct-to-consumer delivery.

Some seltzer companies also offer other types of carbonated beverages, such as soda or energy drinks, but their primary focus is usually on seltzer water. Seltzer companies may vary in size, from small, local operations to large, multinational corporations.

The Seltzer company belongs to the bottled water industry, which is a subset of the non-alcoholic beverage industry. Available statistics show that the global non-alcoholic beverages market size was valued at USD 919.13 billion in 2019 and is projected to reach USD 1,257.77 billion by 2027.

Steps on How to Start a Seltzer Company

1. Conduct Market Research

Conducting market research is an essential step when starting a Seltzer company to help identify potential customers and understand their needs and preferences. First, you are expected to determine who your ideal customers are. This may include people who are health-conscious, athletes, or those who are concerned about the quality of their tap water.

Thereafter, you should carry out research on other Seltzer companies in your area and analyze their pricing, marketing strategies, and product offerings. This will help you understand how you can differentiate your business from the competition.

Conduct surveys and focus groups to gather feedback from potential customers about their interest in Seltzer water and what they look for in a product. This will help you understand your target market’s needs and preferences.

You will also be required to evaluate the demand for Seltzer water in your area by analyzing sales data for bottled water and researching the market size for Seltzer water. Research the regulations and requirements for selling bottled water in your area to ensure that you are compliant with all legal requirements.

Research industry data and reports to gain insights into the trends and opportunities in the Seltzer water industry. Lastly, based on your research, you should develop a marketing plan that targets your ideal customers and highlights your unique selling points.

a. Who is the Target Market for Seltzer Company?

The target market for Seltzer company can vary depending on the brand and its positioning. However, the target market for Seltzer water is health-conscious individuals who are looking for a healthier alternative to regular tap or bottled water.

b. Is Seltzer company a Profitable Business?

Yes, the Seltzer company is considered a profitable business. The market is expected to grow annually by 4.56 percent (CAGR 2023-2027).

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to Seltzer company because Seltzer company is a subset of the non-alcoholic beverage industry.

d. Who are the Major Competitors?

• LaCroix
• Polar
• Spindrift
• Topo Chico
• Bubly
• Perrier
• Schweppes
• San Pellegrino
• Canada Dry
• Vintage
• AHA
• Waterloo
• Hal’s New York
• Zephyrhills
• Ozarka
• Arrowhead
• Cascade Ice
• HINT
• Klarbrunn
• Mountain Valley.

e. Are There County or State Regulations or Zoning Laws for Seltzer Companies?

Yes, there may be county or state regulations and zoning laws that apply to the operation of a Seltzer company in the United States. These regulations and laws can vary depending on the location of the business and the type of operation it entails.

For example, a business that involves the bottling or distribution of Seltzer water may be subject to regulations related to food safety, labeling, and packaging standards. Additionally, businesses that operate in commercial or industrial areas may need to comply with zoning laws and obtain permits for their facilities.

f. Is There a Franchise for Seltzer Company?

As far as I know, there are currently no franchise opportunities for Seltzer companies.

g. What Do You Need to Start a Seltzer Company?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• Production facility
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Equipment, Machines, and Supplies
• Distribution Trucks
• Employees
• Startup and Working Capital

2. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a seltzer business are;

Creative Seltzer Business Name ideas

• Liquid Nest® Seltzer Water Company, Inc.
• Life Aqua® Seltzer Water Company, Inc.
• Aqua Mania® Seltzer Water Company, Inc.
• Ken Brown® Seltzer Water Company, Inc.
• Braxy Othniel® Seltzer Water Company, Inc.
• Chloe White® Seltzer Water Company, Inc.
• Muller Hills® Seltzer Water Company, LLC.
• Aden Smith® Seltzer Water Company, Inc.
• Jeppe Max® Seltzer Water Company, LLC
• Shaun Peral™ Seltzer Water Company, Inc.
• Albert Rhodes® Seltzer Water Company
• Dennis Webb® Seltzer Water Company, Inc.
• Happy Times™ Seltzer Water Company, Inc.
• Tandy Garand® Seltzer Water Company, Inc.
• Blue Rave® Seltzer Water Company, LLC
• Green Spring® Seltzer Water Company, Inc.
• Andrew Livermore® Seltzer Water Company, Inc.
• Thirst Cure™ Seltzer Water Company, Inc.
• Sporty Joe® Seltzer Water Company, Inc.
• Mountain Top® Seltzer Water Company, Inc.

3. Register Your Business

a. What Type of Business Structure is Best for Seltzer Company?

The ideal business structure for a Seltzer water company is determined by a variety of factors, including the size of the company, the number of owners, the level of personal liability the owners are ready to accept, and the tax consequences of the various business structures.

However, we normally advocate coming with minimal liability. An LLC is a hybrid corporate form that provides the flexibility of a partnership while also providing its owners with limited liability protection. An LLC can have one or more owners, and the owners are not personally accountable for the debts or liabilities of the business. This business form is frequently used for small to medium-sized organizations.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Seltzer Company?

• General Business License
• Food Establishment Permit
• Bottled water permit
• Sales Tax Permit
• Environmental Permit
• Building Permit
• Zonal Permit
• Signage Permit

d. What Type of Certification is Needed to Open a Seltzer Company?

You don’t need any certifications to open a Seltzer company, it is a business that is open to all and sundry as long as you have the business expertise and finance.

e. What Documents are Needed to Open a Seltzer Company?

• DBA
• EIN
• Business and liability insurance
• Federal Tax Payer’s ID
• Certificate of Incorporation
• Business License
• Business Plan
• Operating Agreement for LLCs
• Insurance Policy
• Food Establishment Permit
• Bottled water permit
• Sales Tax Permit
• Environmental Permit
• Building Permit
• Zonal Permit
• Signage Permit

f. Do You Need a Trademark, Copyright, or Patent?

Whether a Seltzer company needs a trademark, copyright, or patent will depend on the specific products, services, and branding associated with the business. Be that as it may, a Seltzer company may want to consider obtaining a trademark for its business name or logo to prevent others from using similar names or logos that could cause confusion in the marketplace.

4. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Seltzer Company?

The cost to start a Seltzer company can vary widely depending on factors such as the size of the business, location, equipment, and supplies needed, staffing costs, marketing expenses, and more. However, a rough estimate could range from $250,000 to $1 million or more, depending on the size and scope of the business.

b. What are the Costs Involved in Starting a Seltzer Company

• Legal and administrative costs (the cost of obtaining business licenses and permits, registering the business, and consulting with attorneys and accountants): $7,500
• Equipment and supplies (Bottling equipment, water pumps, filters, packaging materials, alkaline, and more): $150,000
• Staffing costs: $75,000
• Rent/lease: $150,000
• Marketing and advertising costs: $8,000
• Insurance costs: $8,800
• Miscellaneous Expenses: $5,000.

c. What Factors Determine the Cost of Opening a Seltzer Company?

• The size of the Seltzer company
• The choice of location
• The required licenses and permits
• The cost of hiring and paying a business consultant and attorney
• The cost of branding, promotion, and marketing of the Seltzer company
• The cost of furnishing and equipping the Seltzer water production facility
• The cost of the insurance policy covers
• The cost of registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost of the grand opening of the Seltzer company.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your Seltzer company, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a production facility for your Seltzer company will give you the opportunity to come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Seltzer Company?

• Rent or mortgage payments for the space where the business operates.
• Utility bills, including electricity, gas, and water.
• Equipment maintenance and repair costs
• Supplies such as filters, bottles, caps, labels, and packaging materials.
• Payroll expenses for employees, including wages, taxes, and benefits.
• Marketing and advertising expenses to promote the business and attract new customers.
• Insurance premiums for liability, property, and workers’ compensation.
• Accounting and bookkeeping expenses, including software, taxes, and professional fees.
• Renting or leasing a vehicle for deliveries, if applicable.
• Licenses and permits required to operate the business.
• Bank fees and payment processing fees.
• Inventory expenses to maintain an adequate supply of Seltzer water and related products.

f. What is the Average Salary of your Staff?

• Chief Executive Officer – $70,000 per year
• Production Manager – $60,000 per year
• Plant Engineer – $58,000 per year
• Quality Control Manager – $55,000 per year
• Distribution Manager – $45,000 per year
• Sales and Marketing Manager – $35,000 per year
• Administrative Assistant – $33,000 per year
• Customer Service Representative – $32,000 per year
• Delivery Driver -$30,000 per year

g. How Do You Get Funding to Start a Seltzer Company?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

5. Write a Business Plan

a. Executive Summary

Aqua Mania® Seltzer Water Company, Inc. is a startup seltzer water company based in Nashville, Tennessee. We believe that seltzer water can be just as refreshing and flavorful as traditional soft drinks, without the added calories and artificial ingredients.

Our seltzer waters are sold in recyclable aluminum cans, making them a more sustainable option than plastic bottles. Our target market is health-conscious consumers who are looking for a low-calorie, hydrating beverage option that still delivers on taste.

We plan to initially sell our products in local grocery stores, health food stores, and online through our e-commerce website. As we grow, we hope to expand our distribution to national retailers and potentially partner with restaurants and bars to offer our seltzer waters as a mixer for cocktails.

Our team consists of experienced entrepreneurs with a passion for health and wellness. Our CEO has over 10 years of experience in the food and beverage industry, and our head of product development has a background in chemistry and culinary arts.

We are committed to using only the highest-quality ingredients in our products and ensuring that our production processes are environmentally friendly.

b. Products and Service

Our flagship product is a line of premium seltzer waters, made with natural flavors and no added sugars or sweeteners. We offer a range of flavors, including classic lemon-lime, grapefruit, raspberry, and cucumber-mint.

c. Mission Statement

Our mission is to provide consumers with a healthier and more refreshing alternative to sugary sodas and other carbonated drinks.

We are committed to creating premium seltzer waters made with natural flavors and no added sugars or sweeteners, while also minimizing our environmental impact through sustainable production and packaging practices. We aim to inspire healthier lifestyles and make a positive impact on our communities.

Vision Statement

Our vision is to become the leading seltzer water brand in the United States, known for our commitment to quality, innovation, and sustainability. We aspire to create a more health-conscious culture by promoting the benefits of hydration and providing a delicious and guilt-free beverage option.

d. Goals and Objectives

The goals and objectives of a Seltzer company are to create a world where people can enjoy their favorite beverages without compromising their health or the health of the planet.

e. Organizational Structure

• Chief Executive Officer
• Production Manager
• Plant Engineer
• Quality Control Manager
• Distribution Manager
• Sales and Marketing Manager
• Administrative Assistant
• Customer Service Representative
• Delivery Driver.

Marketing Plan

a. SWOT Analysis

Strength

• A seltzer water line made with natural flavors and no added sugars or sweeteners sets us apart from traditional soft drinks.
• Consumers are increasingly looking for healthier beverage options, and our brand message aligns with this trend.
• Our team includes experienced entrepreneurs with a passion for health and wellness and a head of product development with expertise in chemistry and culinary arts.
• Our aluminum cans are more sustainable than plastic bottles and appeal to environmentally conscious consumers.

Weakness

• As a startup, we do not have the brand recognition of established competitors like LaCroix or Polar.
• Limited product line: While we offer a variety of flavors, we do not have as extensive a product line as some competitors.
• Limited distribution: Initially, we will only be selling our products in local grocery stores and health food stores, limiting our reach to a wider consumer base.

Opportunities

• Growing demand for healthier beverage options; consumers are increasingly seeking out healthier alternatives to traditional soft drinks, creating a growing market opportunity for seltzer water.
• The popularity of seltzer water has grown in recent years, with many consumers now choosing it as their go-to drink over soda or juice.
• There may be opportunities to partner with restaurants and bars to offer our seltzer waters as a mixer for cocktails, expanding our reach and brand recognition.

Threats

• Established competitors like LaCroix, Polar, and Perrier already have significant market share and brand recognition.
• The cost of natural ingredients and aluminum packaging can fluctuate, impacting our profitability.
• Changes to regulations around ingredients or packaging could impact our ability to produce and sell our seltzer waters.

b. How Does Seltzer Company Make Money?

Seltzer company makes money by selling its seltzer water products through various distribution channels, such as grocery stores, health food stores, online sales, and potentially even bars and restaurants. The price of each product will generate revenue for the company, which will ideally cover the cost of production and leave a profit margin.

c. Payment Options

• Credit and debit cards
• PayPal
• Apple Pay and Google Wallet
• Gift cards and store credit
• Installment payments
• Cash on delivery.

d. Sales & Advertising Strategies

• Identify and target specific demographics, such as health-conscious individuals, athletes, and those with certain health conditions that could benefit from Seltzer water.
• Utilize social media platforms like Facebook, Instagram, and Twitter to promote the brand and its products. Running targeted ads and creating engaging content that can help build brand awareness and attract new customers.
• Collaborate with influencers in the health and wellness space to promote the brand and its products.
• Target local customers through billboard advertising, flyers, and community events. Sponsoring local events and participating in trade shows and expos can also help promote the brand and its products.
• Encourage current customers to refer new customers through referral programs. Offering incentives like discounts or free products to those who refer others is a great way to increase sales and build brand loyalty.
• Establish strategic partnerships with retailers and distributors to expand the brand’s reach and increase sales. Partnering with grocery stores, health food stores, and online retailers can help us reach new customers and increase brand visibility.
• Offering promotions and discounts is an effective way to attract new customers and increase sales.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

The price of a can of seltzer water in the US can vary depending on the brand, the size of the can, and the retailer. On average, a single 12-ounce can of seltzer water can range from $0.50 to $2.00, with the average price being around $1.00.

Some premium or specialty seltzer waters may be priced higher, while store-brand or generic options may be priced lower.

b. How Much Profit Do Seltzer Company Owners Make a Year?

The amount of profit that seltzer company owners make each year can vary widely depending on factors such as the size of the company, its revenue, its expenses, and its profit margins.

As a startup company, it may take some time before a seltzer water company generates significant profits. In the early stages, most of the revenue generated may need to be reinvested into the business to cover expenses such as production costs, marketing, and distribution.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the Seltzer company and their sales volume
• The location of the Seltzer company
• The management style of the Seltzer company
• The business approach of the Seltzer company
• The advertising and marketing strategies adopted by the Seltzer company.
• The number of years the Seltzer company has been in business

d. What is the Profit Margin of a Seltzer Company Product/Service?

On average, the profit margin for a seltzer water company product is around 10-20 percent.

e. What is the Sales Forecast?

• First Fiscal Year (FY1): $420,000
• Second Fiscal Year (FY2): $590,000
• Third Fiscal Year (FY3): $600,000

6. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for a Seltzer Company?

• The demography of the location
• The demand for Seltzer water in the location
• The purchasing power of businesses and residents of the location
• Accessibility of the location
• The number of Seltzer water production companies and related companies in the location
• The local laws and regulations in the community/state
• Traffic, parking, and security et al

b. What State and City is Best to Open a Seltzer Company?

• Silver Spring, Maryland
• Washington, D.C.
• San Francisco, California.
• Los Angeles, California
• Las Vegas, Nevada.
• New York City, New York
• Nashville, Tennessee
• Portland, Oregon
• Seattle, Washington
• Miami, Florida
• Chicago, Illinois

c. What Equipment is Needed to Operate a Seltzer Company?

• Water Purification System
• Carbonation Equipment
• Water Storage Tanks
• Bottling or Canning Equipment such as bottles, caps, and labeling machines.
• Delivery Vehicles
• Cooling Equipment
• Testing Equipment
• Maintenance Equipment.

7. Hire Employees

If you are looking to start a Seltzer water production business, then you should make plans to hire employees, because a Seltzer water production business cannot be run by an individual.

8. Launch the Business Proper

Launching a new business is key to how successfully the business can gain traction in the market space. So, you must make sure you organize a launch party that will attract key players such as health-conscious individuals, athletes, and those with certain health conditions that could benefit from your Seltzer Water.

a. What Makes a Seltzer Company Successful?

• Choose a good location to launch the business
• Make sure your Seltzer water is top-notch
• Throw an open house grand party before officially opening the Seltzer company
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your Seltzer company
• Leverage all available online and offline platforms to promote your Seltzer company

b. What Happens During a Typical Day at a Seltzer Company?

A typical day at a seltzer company involves a mix of production, quality control, shipping, and maintenance activities to ensure that high-quality seltzer is consistently produced and delivered to consumers.

c. What Skills and Experience Do You Need to Build a Seltzer Company?

• Excellent quality control skills
• Excellent customer services skills
• Interpersonal skill
• Health and safety knowledge
• Accounting and bookkeeping skills
• Business management skills
• Bargaining and bidding skill
• Work experience in a seltzer water production business environment or in the non-alcoholic beverage industry
• Experience in managing people.