The Supper Drinks Company - Description and SWOT Analysis

Company Description 

Supper Drinks is a NAB company that engages in the production as well as the provision of frozen drinks. They include a variety of beverages such as the smoothies and the milkshakes. These drinks are all time fresh ingredients that get sourced from the local farmers. Some of the commodities that the company offers includes the take home smoothie ingredients. The company also engages in the production and sale of frozen yogurts. The motivation behind the company name is the unique frozen beverage option that enables the customer to prepare it at home and can be mixed with various varieties of flavors ranging from might to cinnamon. It is the magic behind the beverage hence a supper drink. 

The Company’s Mission Statement

Supper Drinks is an imaginative food company that deals in frozen edible products. The company through its products not only encourages a healthy lifestyle but also provides products with healthy concoctions obtained from the ever farm fresh ingredients. The company mission is to provide beverages that are entirely composed of healthy ingredients which include not only fresh fruits but also a variety of milk, vegetable as well as juices. We aim at nurturing local business by obtaining our products from the local farmers as a way of giving back to the society. Our products majorly comprise of concoctions derived from the local ingredients and further blended to give it an irresistible taste and beckoning flavors. We are looking forward to becoming the most sought-after company providing healthy desert beverages both locally and internationally. Our primary goal is to consistently grow and expand our services while maintaining low prices and high quality with low operational costs. 

The business is presently a startup and operational in several local markets. Relating to the entire industry, the aim of the company is to expand its operations to other regions through the franchising business model. Since the recipe of the products is readily available locally, it will make it easy for other investors to buy into our business model regarding the franchising concept. 

Trends in the Non-Alcoholic Beverage Industry 

Several reasons drove me to choose the smoothie industry. Among them are the three main ones. Namely, the health benefits brought by the products, their easy substitution for meals finally, their easy portability as well as quick to make procedure. The smoothies can conveniently get prepared anywhere as long as the right tool to ensure they are well prepared is available. 

The increasing tight schedules in workplace settings has made it difficult for individuals to have enough time to consume balanced diet meals. Considering the healthy components used in the making of smoothies, it presents healthy meal options to these working individuals as compared to the consumption of snacks between the lunch breaks. Considering the increased market penetration and the growing popularity of smoothies, the market growth is estimated to be at 10-13% in the next three years. By looking at the lower market entry barriers regarding the smoothies business, it is definite that there is the likelihood of increased competition soon from other firms investing in the same industry. It is therefore notable that the company will invest in product quality as well as increased marketing to increase the company brand awareness. 

The smoothie market in the united stated has considerably grown over the last five years. The American eating culture that has popularized the consumption of snack foods during lunch breaks as opposed to consuming full meals has made smoothies serve as a perfect substitute. According to the Mintel survey, it got established that about 56% of consumers between the periods of April 2013-june2014 had drunk smoothies. The statistics are closely followed up by the young millennials. Consumers with an age bracket of 23-34 made up for the 65% of the annual smoothies sale in the United States. Based on the Mintel segment performance report, it got established that smoothies have recorded a steadily growing performance. Its performance has considerably shot from $279 million in 2009 to about $ 790 million the year 2014. The constant evolution of the market has made the smoothies develop a splitting positioning. The fruity frozen drinks are highly infiltrating the quick service restaurants as well as the c- stores in a move to satisfying the frozen beverage preferences. To the individuals who are in search of vitamin boosted meals, smoothies are the best alternative for them. The beverage comprises of high-end premium product range primarily in the Non-Carbonated Soft Drinks (NCSD) sector. Smoothies have not only gotten seen as growing in the emerging markets but also noted to be flourishing in the developed markets. Over the recent past, the fruit-based smoothies have gained considerable popularity in both the United States and the UK, and they presently get considered as among the significant segments regarding the soft drink market. 

Strategic Position 

The objective of supper drinks is to become the leading company producing smoothies as well as frozen drinks in Virginia. To successfully achieve our goal, the company has come up with a strategic position that emphasizes three primary areas. They include:

• Products made from locally sourced ingredients 

• Provision of options to customers 

• Dietary menu selection 

To fully understand the smoothie operations, it is essential to understand the company strategic position. The factors include:

• The trends of the industry 

• The company target market 

• The product environment 

• The company strengths 

Our primary target is individuals who are seeking for healthy drinks as we well as meal options. The continuous growth of the market alongside the changes in customer taste regarding lunch meals requires a c5reative alternative for meals. It is through this that supper drinks come in handy. 

There exist several competitors within Virginia though none of them engages in the provi9sion of the smoothies to-go kits. Considering the existence of a couple of big companies participating in the production of smoothies, the company anticipates stiff competition in the market. Overview of company’s distribution channels. 

The mode of distribution that the company will adopt is direct selling to customers. Since the products get made within the stores and the ingredients obtained locally, there will be no shipping. The go-to smoothie kits, as well as the ice creams, are the sole products will get distributed. It will get conducted through online ordering in the company website. To make sure that the clients receive the products in good shape and the best quality possible, the company uses Fed Ex services. The courier service has temperature-controlled packaging vital for the transportation of ice relat4d products. 

Types of Risks 

There exist three kinds of risks that our business encounters. They include product, regulatory finally competitive risks. The products which are getting exposed to risks are those that the company is getting from the local farmers. Products such as honey and not limited to vegetable significantly rely on the climate. They, therefore, get exposed to risks such as poor climate hence translating to significant risks for the company. Regulatory risks come into play in situations whereby the ingredients turn not to meet the required quality standards set by FDA. The results would dent the company image. The competitive risk, in this case, is where the firm struggles to establish market penetration of its smoothies in a market built by its competitors. 

SWOT Analysis 

There is a high demand for organic food in the United States with retail sales recording about $26.7 billion. The juice and smoothies business formed part of the overall beverage industry with a market valuation of about $23 billion as at 2013. A considerable increase in the purchase of the away from home smoothies got recorded. There was a record high of the juice and smoothie sales to $827.9 million which was equivalent to a 6.4% rise.