How to start a beverage brand
So, how do you start a drinks business?
There are typically two ways people approach asking this question. The first is when they have a specific recipe or drink in mind that they want to bring to market. The second is when they see a business opportunity, and the formulation becomes secondary. We'll consider these as two distinct paths: one business context-based and the other technically based.
If you have a formulation and recipe idea you wish to market, the next questions involve ensuring your product's preservation in the bottle, manufacturing processes, packaging, and labelling. Conversely, if you're approaching from a broader business perspective, you might need someone to develop the overall recipe and manage part of the workload to ensure everything is done correctly.
Regardless of the approach, some foundational elements are non-negotiable. For instance, if you plan to set up a limited company, you'll need company bank accounts and likely an accountant at some point. Insurance is also essential; public liability insurance is a must. In the UK, NFU Mutual is recommended as an insurance provider because they offer advised insurance, meaning they ensure you are covered based on what you do. This contrasts with non-advised insurance companies that may refuse coverage if they disagree with the category you've selected.
To get a product to market, you need a consistent and scalable formulation and an appropriate preservation method. It's essential to align your processes with industry standards; for example, ask ing a beverage co-packer to boil herbs and spices for 30 minutes isn't feasible. You can't simply transfer kitchen methods directly into beverage manufacturing.
Begin by establishing non-negotiables that define your brand and business from the outset. These include determining which processes and preservation methods you'll use based on commercial considerations, shelf life decisions, and risk-reward ratios. Once these foundations are set, select ingredients that match your co-packing partner's capabilities or what you have available if you're doing it yourself.
Extensive testing is crucial; every change in ingredient, supplier, specification, process, or preservation method requires retesting to ensure consistent results. There are numerous interdependencies: preservation methods depend on packaging; flavour profiles depend on preservation methods; ingredients dictate shelf life and flavour possibilities.
After establishing these elements, work with a co-packer to create control samples and quality assurance metrics. Obtain pricing and proceed to market accordingly.