How To Turn Your Idea Into a Ready To Drink (RTD) Beverage Product: Case Study - Jocko White Tea

Summary

In this video, the host interviews Pete Grega, VP of Sales at NorCal Beverage, discussing the process of turning a drink idea into a marketable beverage. They explore steps such as ideation, recipe formulation, packaging, regulatory requirements, and production scaling. Using the launch of Jocko White Tea as a case study, they highlight key considerations for emerging beverage brands, such as packaging decisions, manufacturing minimums, quality assurance, and sales strategies. Pete emphasizes the importance of branding, quality control, and adaptability when bringing a new beverage to market.

Takeaways

• 💡 Pete Grega is the VP of Sales at NorCal Beverage, a co-packer responsible for manufacturing large beverage brands.
• 🧃 The process of turning an idea into a beverage product starts with ideation, followed by recipe formulation, sourcing ingredients, and scaling up for commercial production.
• 🔬 Ensuring that the beverage is compliant with regulatory requirements, like pH control for acidified foods, is a crucial step in the production process.
• 🛑 Packaging is essential for both branding and functionality, with decisions made based on factors like target market, product type, and consumption habits (e.g., cans for single-serving drinks).
• 📦 Emerging brands need to be prepared for large minimum production runs due to the nature of commercial beverage manufacturing, which requires significant upfront investment.
• 💸 The cost of packaging varies by material (plastic, glass, or cans), with each option having pros and cons regarding minimum order quantities and branding impact.
• 🧑‍🔬 Quality assurance is a top priority, with stringent standards and audits in place to ensure food safety during large-scale production.
• 🚛 Efficient packaging and delivery are key, with brands needing to consider logistics and retail requirements when choosing packaging formats (e.g., trays, multipacks, palletization).
• 📊 Successful sales strategies often hinge on strong brand storytelling, clear market positioning, and ensuring product availability across retail and e-commerce channels.
• 🔄 Flexibility and adaptability are crucial for emerging beverage brands, as the industry can be challenging and requires constant adjustment to production, distribution, and sales processes.

Q & A

What is the first step in developing a beverage product according to Pete Grega?

The first step in developing a beverage product is ideation, where you come up with your idea, figure out the recipes, and determine what the beverage should taste like.

Why is it important to have reliable sources of ingredients when developing a beverage?

Having reliable sources of ingredients is key to ensuring the supply chain is sound and meets the highest quality standards, which is crucial for the product's success.

What is the significance of packaging in the beverage industry as discussed in the interview?

Packaging is significant because it defines the brand. It's about what the product tastes like and what it looks like, which are the two pieces that make up a product.

Why was a can chosen as the packaging for the discussed tea beverage?

A can was chosen for the tea beverage because it's likely to be consumed in one serving, it aligns with the brand's image, and it's convenient for single-use consumption.

What are the minimums one should expect when launching a beverage product?

The minimums for launching a beverage product can be quite high, often in the thousands of units, due to the infrastructure and process requirements of commercial production.

Why are there minimums in beverage production?

There are minimums in beverage production because of the need to sustain the infrastructure of tanks and process equipment, which requires a certain amount of product flow.

How important is quality control in beverage manufacturing?

Quality control is extremely important in beverage manufacturing as it ensures the product meets the highest standards and maintains consistency, which is vital for consumer safety and brand reputation.

What is the role of a co-packer in launching a beverage brand?

A co-packer plays a crucial role in launching a beverage brand by helping with product development, manufacturing, packaging, and ensuring regulatory compliance.

Why is it necessary to have a strong sales strategy when launching a beverage brand?

A strong sales strategy is necessary because even the best product will fail if it doesn't sell. It involves identifying distribution channels, pricing, and marketing efforts to create brand awareness and drive sales.

What advice does Pete Grega give to emerging brands looking to launch a beverage product?

Pete Grega advises emerging brands to be adaptable, understand the commitment required in terms of minimum production runs, and focus on creating a strong brand story that resonates with the target audience.