How to Stand Out in a Crowded Beverage Set

Part 1: Composition and Taste

The beverage industry is a harshly competitive landscape. It is vast and varied. The fast and cutthroat nature is not for the faint of heart. There are break-out start-up brands, longstanding category dominators, and heavily backed fast trackers whose connections and cash flow make their road to the shelf and into consumers' hands much more accessible. Nepotism is a genuine factor as well. The longstanding relationships and a deep Rolodex will surely get you in the door. But will it keep you there? The quick answer is no. However, there is a recipe that works time and time again. If you want to stand out and stay on the coveted beverage shelves in key retail locations across the country, there are no shortcuts. The beverage composition, superior taste, proper pricing and positioning, stellar branding, building connections, and a huge heaping dose of hustle will keep you stocked and moving off shelves. Let's break it down, starting with composition and taste. 

First and foremost, the makeup of your beverage, from a micro and macro standpoint, is critical. The world of beverage is not a place for emotions to cloud judgment. Research, deep knowledge of your competition and a phenomenal flavorist on board is the foundation that will set you up for big wins. Start out right with a clear strategy and a centered attitude. Rushing rarely produces desired results. So block out the frenzy of the beverage market and focus on your defined goals. 

This foundation does not need to be an expensive endeavor. It will take time and planning. You or a valued team member can be the flavor expert with a nuanced palette and an open mind. The three main areas of focus when creating a beverage primed for success are; a balanced taste that is approachable for your target demographic and beyond, a well-thought-out nutritional panel, and knowledge of your cost of goods and their availability.  

It is essential to love the way your beverage tastes. It is equally important for others to love the way your beverage tastes. How do you test this without attachment? It isn't easy, but it will pay off down the road. Once you have a solid formulation, a reliable first step is to reach out to friends and family whose brutal honesty you value and ask them to try it blind. You may even omit all details and set parameters for as blind a taste test as possible. This is an excellent way to get initial feedback. If you are already in the start-up phase and have a farmers' market stand or hyper-local accounts with minimum requirements, put these avenues to good use. Farmers' markets are fabulous for demoing product. Customers want to taste everything and are not shy to express exactly how they feel. Take notes and be gracious. The due diligence of this phase will save time and potential backtracking later. 

Some beverage brands are formed by making a seriously yummy beverage in their garage and feel it is destined for the big leagues. Maybe this is the case, but get an accurate read on the nutrition panel first. This is not a step you want to rush past. Your beverage may taste delicious, but if it has 50 grams of sugar, you will lose a large percentage of prospective buyers who don't want to consume that amount of sugar in one drink. A nutrition panel is invaluable at this stage. There are many ways to get an accurate nutrition panel. I recommend sending a sample to a dedicated lab if you can afford it. An online calculator can give you a decent read, but human error and ingredient intricacy are factors to consider. According to ESHA, the cost of having a single unit lab tested is approximately $800. 

Once you get results, evaluate your nutrition panel as it may surprise you. This is common. If you feel satisfied that it hits the desired mark, bravo! If any of the big items on the panel don't sit well with you, take a breath and know it can be reworked with a little effort. Calories, sugar, carbohydrates, and fat are the most important components to get right for your beverage style and category. If you are making a lite iced tea and your top competitors have a count of 100 calories per bottle, a huge selling point is coming in under that, for example. Low sugar content will be critical if you are a healthy juice brand. If you are making a milk alternative, additional items like protein count could be the piece that sets you apart in the eyes of not only the consumer but store buyers. 

The final area on the nutrition label to pay attention to is your ingredients list. Vague terms like "natural flavors" can be a deterrent, while an overly long list can also work against your goals. A general rule of thumb here is to keep it short and clean. An eighth grader should be able to pick up your beverage, read the nutrition panel and ingredient list, and understand it easily. 

Lastly, it is beneficial in innumerable ways to know how to source every ingredient in your beverage, including the packaging, and run the math on cost per unit at various scale rates. This practice isn't as common in early-stage businesses. It is a bird's eye perspective tactic that sometimes gets lost in the excitement of the various other hats you have to wear as a new beverage founder. However, if you take a little extra time researching your prospective suppliers, running the costs, and knowing bulk rates and shipping logistics, you are way ahead of the pack. Many suppliers are eager to enter into a contract that locks in a set price in uncertain economic times and ensures priority availability. This will give you an extra edge and peace of mind knowing how scalable your brand is and what your profit margins will look like at various stages of growth.

I cannot emphasize enough the importance of beverage composition, taste, and foresight. Nailing it and knowing your terrain from the start will set you on an upward trajectory with confidence and limitless possibilities. 

Part 2: Stellar Branding, Pricing, and Positioning are up next. Stay tuned and get after it!