by Kiwi Beverages
last updated 22/07/2019
Kick Start Your Own Business
by Kiwi Beverages
last updated 22/07/2019
Kiwi Beverages franchisees gain additional bonus as more brands and supermarket chains sign up
Kiwi Beverages is growing fast. Just five months after the home-grown drinks franchise was launched, the first 10 franchisees are on the road and the first distinctive fridges have been installed in retail outlets. Another four franchisees are already in training, so around half the available territories are already taken. ‘Move fast if you want to be part of our future,’ advises franchisor David Thexton.
David is the founder of Kiwi Beverages, a new distribution franchise which sells and delivers New Zealand-made non-alcoholic beverages to the retail and hospitality trade. David knows the market – he founded the Rio Beverages business, which had almost $100 million in sales before he sold it to Coca-Cola in 2002 – and he’s confident because he knows franchising. After Rio, he turned the consulting firm he founded next into an international business with over 150 franchisees.
‘The New Zealand non-alcoholic beverages market is currently worth some $1.2 billion,’ David explains. ‘It’s dominated by a couple of big names, but by offering something different – locally-produced fruit juices, energy drinks, sports drinks and waters – I’m confident we can take at least 10 percent of a growing market. We’re putting 10,000 sign-written fridges into shops, convenience stores and hospitality outlets around the country, and offering a great opportunity for sales-driven franchisees who can find outlets and service them.
‘The ingoings are really low (the average territory costs just $72,000 +gst) but the potential rewards are considerable. With 20 percent margins and relatively low expenses, a top-performing franchisee could be making $600-700,000 per annum and own a business worth much more than that when the time comes to sell. I know from my Rio days that some people will genuinely achieve that, so if you’re prepared to back yourself, call me now!’
More good news
In the last three months, there has been more good news for Kiwi Beverages franchisees. First, the exclusive product range is being extended to include four new brands offering iced coffee, iced tea, flavoured milk and protein drinks on top of the 52 product lines already stocked. ‘Retailers love the fact that our range is all New Zealand-owned, New Zealand-made,’ says David. ‘There’s something for everyone to get passionate about and we’re getting very high uptake.’
Secondly, a just-signed arrangement will see Kiwi Beverages products going into over 200 Pak’nSave and New World supermarkets all over the country. ‘That’s a big deal for us which will provide franchisees with an instant sales boost as well as valuable awareness of the new brand in their territories,’ David explains.
‘And we’re just appointing a highly-experienced National Sales Manager whose first job will be to go to the head offices of over 40 national retail and food chains to build distribution there, too. It’s all very positive stuff.’
Focus on sales
Kiwi Beverages franchisees are expected to focus on sales while also managing the distribution network in their territory with a delivery driver. With a tablet-based ordering system, overnight delivery and fast turn-around, they won’t need to carry much stock – all most franchisees will need is an electric/hybrid car and a 5-tonne van, along with space for sorting orders, all of which can be leased.
‘You don’t need to buy the retail fridges, either, keeping ingoings to a minimum,’ David explains. ‘We have a range available to suit different outlets, from countertop and slimline right up to triple door fridges, all branded. Each fridge is a shop-in-a-shop, earning for you and the retailer every opening hour. Once installed, all you have to do is keep it stocked.
‘Investment levels range from as little as $40,000 in the smaller areas, up to $105,000 in the big ones. Areas still available include Auckland (7 areas), Taranaki, Central North Island, Manawatu, Hawkes Bay, West Coast, Southland, and Otago.’
Make it happen
Franchisees are expected to have excellent sales skills and considerable energy. ‘If you have the determination to build a successful business in your own territory, we can provide you with the training and support to make it happen,’ David promises. ‘There are specially-designed systems for managing the business and the route trade, marketing materials (including a 16-page brochure), uniforms and the sign-written Prius cars and Iveco vans, as well as the fridges.
‘As well as the national distribution deals, we will teach you to negotiate with local retailers and food outlets so that you are in control of your own business. We run trainings every two months for new franchisees and their delivery drivers, too. By doing these in group sessions, it helps build friendships and creates an atmosphere of support, then there’s a mini-conference for franchisees every three months to discuss what’s happening, share ideas and solve any problems.
‘We have so much experience in this industry that we’re able to kick start new franchisees right away. To learn more about opportunities with Kiwi Beverages, contact me now!’
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