![How to plan and track the budget of your beverage brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_acec544d-eb72-42a8-bf8d-ce2c55361411.png?v=1715856407&width=1100)
If you don’t plan and track your beverage brand's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for beverage brand owners, we saw a lot of entrepreneurs struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your beverage brand's finances around and set you on the path to success!
Get the budget tracker tailored for beverage brands
Most beverage brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for beverage brands
Here is an example of a (very) detailed budget for a beverage brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for production facility | $4,000 | $48,000 |
| Electricity | Power consumption for production equipment | $1,000 | $12,000 |
| Water | Water usage for production | $300 | $3,600 |
| Gas | Gas for heating and production processes | $200 | $2,400 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $500 | $6,000 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Production Manager | 1 | $4,500 | $4,500 | $54,000 |
| Quality Control Specialist | 1 | $3,500 | $3,500 | $42,000 |
| Production Workers | 3 | $2,500 | $7,500 | $90,000 |
| Warehouse Staff | 2 | $2,000 | $4,000 | $48,000 |
| Sales Representatives | 2 | $3,000 | $6,000 | $72,000 |
| Marketing Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Production & Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Raw Ingredients | Fruits, herbs, sweeteners, etc. | $8,000 | $96,000 |
| Packaging Materials | Bottles, labels, caps, etc. | $4,000 | $48,000 |
| Cleaning Supplies | Sanitizers, detergents, etc. | $300 | $3,600 |
| Production Equipment | Maintenance and small tools | $500 | $6,000 |
| Storage Costs | Warehouse rental and utilities | $1,000 | $12,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, magazine ads | $300 | $3,600 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and tastings | $400 | $4,800 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of production equipment | $400 | $4,800 |
| Uniforms | Staff uniforms and safety gear | $150 | $1,800 |
| Licenses & Permits | Health permits, business licenses, etc. | $200 | $2,400 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $300 | $3,600 |
Some beverage brands make 5x more profit than you!
We have studied the strategies of the best beverage brands in the world. Replicate them now!
What are the biggest expenses for a beverage brand?
Be mindful of these pitfalls. Here are five major costs every beverage brand owner needs to consider, along with some tips on how to manage them effectively.
- Raw material costsThese can take a significant portion of your budget. You're dealing with ingredients that can be seasonal, subject to supply chain disruptions, and vary in quality. To keep these costs under control, focus on bulk purchasing, negotiate better deals with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium ingredients that don't add enough value.
- Staffing for your beverage brandYour team is essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a dedicated team to ensure quality production and customer service. You can optimize labor costs by efficient scheduling, cross-training employees, and monitoring productivity. However, be cautious not to underpay or overwork your staff, as this can lead to high turnover and poor morale.
- Production facility rent and utilitiesPrime locations come with high rent, but they can enhance your brand's visibility. Utilities like electricity, water, and gas are necessary but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient machinery and lighting. Overspending often occurs when you choose a facility that's too large or too luxurious for your needs.
- Marketing and advertisingGetting the word out about your beverage brand is crucial, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from bottling machines to storage facilities. These are expensive because quality equipment and regular maintenance are essential for smooth operations and product quality. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don't really need.
How to spend less with your beverage brand?
Here are practical tips to help you, as a beverage brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Ingredients | Source ingredients from local suppliers to reduce transportation costs and ensure freshness. |
| Labor Costs | Utilize scheduling software to manage shifts efficiently and minimize overtime. |
| Utilities | Invest in energy-efficient brewing and refrigeration equipment. |
| Marketing | Run social media campaigns for your beverage brand and collaborate with local influencers for organic reach. |
| Packaging | Opt for eco-friendly, cost-effective packaging solutions and offer incentives for customers who return bottles for reuse. |
| Equipment Maintenance | Maintain a regular servicing schedule for brewing and bottling equipment to prevent costly breakdowns. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider relocating to a more cost-effective facility. |
| Insurance | Review your insurance policies annually to ensure they meet your current needs and compare rates for the best deal. |
| Distribution | Optimize delivery routes and partner with efficient logistics companies to reduce transportation costs. |
| POS System | Choose a POS system that integrates with your inventory management and offers low transaction fees. |
| Staff Training | Provide regular training sessions and utilize free online resources to keep your team updated on best practices. |
| Waste Management | Implement a waste tracking system to minimize ingredient waste and explore recycling options for by-products. |
| Technology | Invest in multi-functional brewing equipment and use software for inventory and order management. |
| Office Supplies | Buy supplies in bulk and transition to digital systems to reduce paper usage. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Licensing and Permits | Stay current with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local musicians during off-peak times. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best beverage brands in the world!
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Expenses that are just useless for a beverage brand
Yes, some expenses for your beverage brand are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Beverage Brand Expense | Reason It's Useless |
|---|---|
| Luxury Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| Premium Ingredients | Unless you are targeting a niche market, most customers are satisfied with high-quality but reasonably priced ingredients. |
| Excessive Product Lines | A large variety of products increases inventory costs and can lead to more waste. |
| High-End Production Equipment | Top-of-the-line production equipment is not always necessary and can be cost-prohibitive. |
| Traditional Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your beverage brand. |
| Multiple Label Designs | Having various label designs increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving production quality. |
| Premium Subscription Services | Expensive subscriptions for industry reports or magazines often go unnoticed by customers. |
| Exclusive Flavors | Using rare flavors can inflate costs and complicate supply chains. |
| Costly Office Furniture | High-end office furniture is not always appreciated by employees and can be a significant expense. |
| Custom Printed Bottles | Personalized bottles are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Sources | Most customers are content with high-quality filtered water, making expensive water sources unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Rebranding | Constantly updating branding and packaging can be costly and disrupt operations. |
| Expensive Promotional Items | Elaborate promotional items are often ignored by customers and add to the cost. |
| High-End Glassware | Luxury glassware is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Label Designs | Frequently redesigning labels is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Event Equipment | Specialized event equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your beverage brand!
Managing a budget for a beverage brand when funds are tight can feel like an uphill battle. It's like being stuck in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth initiatives, leaving you perpetually focused on just staying afloat. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more resources to invest back into your brand.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of beverage brands just like yours. Get them now!
Make your beverage brand more profitable
We have studied the strategies of the best beverage brands in the world. All their tactics are explained in our pack!
