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This Marketer & Distributor of Custom Labeled Beverages (MDCLB) (not the real name of the company) is in the business of helping small and medium size companies enhance their business’ brand name by offering them the option of selling to their retail customers soft drinks (e.g. Root Beer, Special Flavor Sodas, etc.) and spring water having their own brand name. Further, MDCLB is offering this to corporations who wish to use privately labeled spring water and soft drinks during corporate meetings and promotional events. Another target market is consumers who wish to offer custom labeled spring water and soft drinks at family events such as weddings, birthday parties, etc.
This is a niche business with no direct geographic competition within its state and contiguous states. As a result it has significant growth potential especially when one takes into consideration that only an estimated 5% of its potential market has been tapped within it chosen territory. The company’s pro-forma estimate annual sales for 2011 are estimated to be over $500,000. About 52% of these sales are delivered locally within an approximately 2-hour radius from the company’s offices. The remaining 48% are shipped out LTL.
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