Beverage Manufacturing

Coordinating with a beverage manufacturing plant to process and bottle the product is not an easy task. Whether to choose a contract beverage manufacturer or filler (or both) will depend on a host of factors beginning with location. Ideally, it is preferable to have a beverage manufacturing plant that is in close proximity to the network of distributors. A distant location could adversely affect profit margins or ultimately the price, due to added shipping costs, storage fees, labor and other collateral expenses. Identifying a beverage manufacturing plant that has existing capabilities to meet the processing needs is another criterion. That allows for expediting the product development cycle. Other key components to beverage manufacturing are quality control and safety. This requires close monitoring of all established food safety procedures. The ramifications of choosing an inappropriate beverage manufacturing plant for the product could be disastrous. The beverage manufacturer should be able to provide quality and consistency during the manufacturing process in order to meet consumer expectations and adhere to regulatory guidelines. Once the product has gone to market, it is still important that product development cycles remain fast and adjustable. Meeting the demands of retailers and consumers is paramount at this stage. Delays in the manufacturing process can be costly. Lost orders due to lack of inventory, vacant storage facilities, and competitors lying in wait, can wreak havoc. Consumers can switch brands in an eye blink, paving the way for trial of a competing brand. Use manufacturing companies who use sophisticated, integrated systems and solutions to keep the production running smoothly. Collaborating with a reputable beverage industry expert will offer the best shot succeeding in this challenging sector and seek to establish rapport with this strategic partner.

Private Label Drinks

Consumers have an ever-growing array of choices in the beverage aisle, ranging from name brands like Coke and Pepsi, to private label drinks such as Safeway Select. A private label drink brand by producers who wish to participate in a robust category with their own line of beverages. Private label offerings have significantly improved in quality and consumer satisfaction. Private label has a presence in virtually every beverage category in the U.S. Store brands are private label products. They are in the largest and the smallest of beverage categories. Carbonated soft drinks, milk, bottled water and juices are prime categories for private label beverages. Although carbonated soft drinks remain popular, as the market has evolved and consumer tastes have shifted, private label has moved into the non-carbonated category which includes bottled water and fruit beverages, as chronicled in the ‘Private Label Beverages and Contract Packing in the U.S.' report, conducted by Beverage Marketing Corp. Branded products like Coke, Pepsi and Dr Pepper still dominate the industry, but the sheer size of the carbonated soft drink category has created an opportunity for private label brands. For the most part, the leading companies have done an effective job at blunting further inroads of private label through strong marketing of their products, leveraging their vast distribution network, and by pricing their products so that they are more in line with private label pricing schemes. The milk category boasts the largest and most developed private label activity. In 2007, private label account for more than 62% of U.S. fluid milk sales. Milk is the only category with more than half of its sales in private label. The greatest amount of private label milk sales are in non-fat, low fat and whole milk, while a smaller percentage of sales come from flavored milks and milkshakes. Consumers may not be as brand loyal with bottled water as with other categories. However, a large number of branded waters are experiencing success in the market, but this varies by water type. Waters that often serve as substitutes for tap water, such as so-called retail bulk water in large packages, tend to have the greatest amount of private label. Over 42% of retail bulk, water sales were private label a few years ago. Private label juice well represented within the US... This may provide an opportunity for private label because consumers may be less brand-loyal. In a recent sample, over 14% of shelf-stable fruit beverage sales in supermarkets were from private label. Once again, the category segment lacks significant differentiation that offers solid returns for private label. The branded leaders in this category have managed to withstand private label through strong branding and marketing, often revolving around package design and a promotional focus on the purity of their product. It is also notable that similar to milk, branded products have greater strength in the flavored segment of their categories. A private label brand can help retailers take advantage of a robust industry segment with a high quality product that suits customer needs.