With increasing awareness of the impact of what we eat and drink on our health and wellbeing, consumption trends are changing, fast! In beverages, traditional, sugar-laden carbonated soft drinks are being ditched by millions of customers every year, especially in developed markets, in favour of drinks that offer health benefits or have functional properties.
While taste remains the key driver for purchase, people are demanding ‘drinks with benefits’ and are voting with their wallets – US carbonated soft drink consumption per capita is down almost 10% since 2019 - and set to fall further! Functional Beverages on the other hand are slated to continue the stellar performance of recent years with the guys at Future Markets predicting category growth of more than $100 billion over the next decade. That’s a lot of zeros!
So, you see how consumer trends are changing what people are buying and drinking, the opportunities that come from these changes and are thinking “I want a piece of that!” The brilliant thing is that in the world of functional beverages, there are countless ways to craft a product that truly resonates with your audience. But with so many options, it can feel a bit overwhelming and it’s sometimes difficult to know where to start. Don’t worry we’ve got your back; let’s break it down step by step.
A roadmap for success
First, understand your audience (deeply) – ask questions; lots of them. Who are they? What is important to them? What brands are they currently consuming and what are they not getting from these products that they want to see? Are they looking for something to consume at home or on the go? Are they purchasing for themselves or for other members of their household? The quantity and quality of your questions at this stage will give you the answers and insights you need to shape your concept and give it the best chance of success further down the line. The key thing to do here is to talk to your potential audience to understand them as well as possibly can – focus groups, social media questionnaires, interviews in the street, office, gym, it doesn’t matter how you go about it. You’ll be amazed how open people can be when they’re asked questions and have the chance to contribute to a new idea.
Having done this, it’s now time to start clarifying what your product should look like in order to gain preference versus your competition (basically, what will drive someone to pick your product over someone else’s?). Perhaps even before you’ve started mixing ingredients, you need to understand what kind of functional beverage will appeal to your target audience? Think about taste profiles, flavours, nutritional content, and the ingredients they care about and expect to see (and not see) in a product they’ll buy. Are they looking for a low-sugar option? A bold, tangy flavour? Or perhaps a health-focused drink, like kombucha, packed with probiotics to support gut health? By answering these early on, you’ll build an understanding of your audience’s preferences and these will guide many of your decisions, from flavour to packaging format to price point and again give you a greater chance of success.
Next, it’s time to start thinking about how you’re going to produce your product. Will you manufacture in-house or work with a co-manufacturer or co-packer? This is a big decision, as it impacts not only cost but also control over the production process. If you go the co-manufacturer route, consider where they’re located and how their operations align with your market needs. What are their minimum order quantities (MOQs)? What packaging format options do they offer? Are they GFSI (Global Food Safety Initiative – a globally recognised safety assurance scheme expected from most retailers) accredited? Do they give you the confidence that they’re going to look after your products and business to the level you expect?
Once you’ve nailed down these basics, it’s time to focus on product development. Do you have a team capable of creating the perfect recipe? If not, you might need a flavour developer to help bring your vision to life. There are a lot of great companies and consultants out there who can help you here but it pays to do your research to find the best option for you. What experience do they have developing the type of product you’re trying to create? Do they have any case studies of prior projects they can share?
You should now have a knock-out product recipe that you’re confident will win with your target audience as you’ve probably produced and tested samples with them. It’s now time to start sourcing reliable, high-quality ingredients. Like finding a co-packer, try to stick with GFSI certified suppliers to mitigate risks. In addition, are their any claims you want to make on your packaging and marketing communications – Organic? Halal? Vegan? Fairtrade? The potential suppliers you’ll be speaking to should be able to provide you product specifications which outline whether an ingredient complies with a particular certifying body’s requirements, as well as nutritional information and other key quality and safety data.
A Brand = Product + Compelling Story
Finally, you’ll want to think about your brand story. How will you package all of these decisions into a narrative that sets your product apart from the competition? Your story will be the foundation of your marketing efforts, helping you connect with your audience and persuade them to choose your brand and product range over others. From what you’ve learned about your target audience, you’ll be able to brief your designer with confidence about what your brand is and what it isn’t and how best to engage them through your brand identity and packaging design. If you think about your favourite brands, what sets them apart? How do they make you feel? Chances are they will all be unique and consistent in what they say and how they say it. What does that mean for you and your brand?
Good Culture – Your Ideal Partner
Clearly, everyone will be in a different position and come at this from different perspectives. You may already have a clear view of your brand and your target audience but are looking for solutions to bring your concept to market. Alternatively, you may already be a beverage manufacturer but looking for ways to take advantage of the opportunities an entry into functional beverages offer.
Wherever you are on your particular journey, Good Culture is here to support and guide you. At heart, we are passionate about drinks, quality, innovation and the creative pursuit of entrepreneurship. Our mission is to inspire, empower and support you to build thriving, profitable & sustainable businesses. We have built years of experience and expertise by helping companies all around the world create, develop, commercialise and grow their businesses with the supply of the highest quality fermented beverage ingredients, unparalleled commercial and technical support and access to our amazing network of co-packers and flavor developers.
So, are you interested in taking advantage of the opportunities functional beverages offers or have an existing brand and need help taking it to the next level? The team at Good Culture can help with anything you need.
Want to hear how we can help you do kombucha better? Contact us today.