According to Ryne O’Donnell in my most recent podcast 40% of retail price goes to retailer and 25% of wholesale price goes to distributor. So you have to work backwards from your end price.
At a retail price of $8.00:
Retail price: $8
Price to retailer: $4.80
Price to distributor: $3.60
So you have to make it cheap enough to sell at a profit for $3.60. And that’s at $8.00 final price…
Food cost in juice is extremely high compared to other beverages. Most of the beverages at the grocery store are made up of mostly water. Juices from concentrate, soda, energy drinks, teas are all basically water in pretty packaging. That’s what makes real juice unique. It actually costs a lot to make.
The nation-wide HPP juice lines now contain a lot of water, sugar, purees, and even powdered vegetable ingredients in order to cut down on costs so they can price it at $4 - $5. Go to the website of evolution fresh or suja and see how many juices you can find that don’t include water or puree. (Tea as an ingredient is a great way to add water).
I guess my point is that margins are really thin / non existent unless you can charge a premium for the product, like $8 - $9 and even then it can be tough. If charging a premium, somehow customers need to choose yours when it’s sitting next to Suja on the shelf for $4.
Not an easy business!