ENERGY DRINK

Introduction to Accounting and Finance

Introduction to Accounting and Finance

Introduction

This report will focus on “Speed-star” that is going to be one of its kind milk based energy drink with exciting and mouth watering flavors such as Banana and strawberry and other natural energy supplements with further flavors being introduced later as a part of line extension. Report will mainly focus on the financial feasibility of this product, which will mainly include the income statement, cash budget and balance sheet. Further ARR and payback of this investment is going to be compared with other market investments, to find whether the energy drink project worth investment.

Discussion

The “Speed-star” which is going to be one of its kind milk based energy drink with exciting and mouth watering flavors such as Banana and strawberry and other natural energy supplements with further flavors being introduced later as a part of line extension. Considering the dynamics of local market, we came to this conclusion that segment of energy drink in the beverage industry has huge unexplored potentials. While we have a few renowned brand names already existing the market that position themselves as energy drinks, the focus has mainly been on carbonated beverages, the charm of which is likely to fizzle out in the future eventually as people become more and more aware of the considerable health hazards that the carbonated energy boosters are likely to cause.

Energy is something that most of us find ourselves as wanting more since the kind of work that we are involved in drains out every bit of energy from our bodies. At the school work, the game of cricket, the traffic jam, the scorching heat and the non exhausting list of other energy vampires leave us starving for strength. Unscientifically speaking, every other person that you come across would admit that he/she feels exhausted and drained out by the afternoon. For every person who experiences such unpleasant feeling of lack of energy, Speed-star provides a solution that is a ready to drink pack of instant energy and electric strength.

This change in the market conditions as well as the growing availability of information available at the consumers' disposal has led them to make much more informed and rational decisions as compared to the situation in the past. While this might be a threat to many, we have identified an opportunity out of it to introduce Milk based energy drinks that are healthy and loaded with energy at the same time. Unlike the need to add artificial energy supplements in energy drinks, Speed-star uses Milk as its base which is a perfect mesh for energy boosters because of its known natural nutritional benefits. Further the added fruit ingredient provides classes of food (such as carbohydrates, proteins and vitamins) that are instant suppliers of energy and add wonderful flavor to the products at the same time. Next section will discuss the financial feasibility of this product.

Total investment required by the Milk based energy drink is ...