Seizing Opportunity: Bottlers Making Private Label Beverages

We are in a time when most companies are trying to do more with their existing resources. Smart businesses are inventing ways to generate new streams of revenue, and a handful of progressive business owners are willing to take a little risk. Forward-thinking bottling operations and beverage distributors are realizing opportunity within their existing facilities. They are taking advantage of their excess factory capacity to make private label beverages or introduce their own beverage brands.

This emerging trend represents a unique business strategy focused on utilization of internal operational and capital resources for new growth. With the right resources and a good understanding of the formulation, flavoring, marketing and distribution of beverages, bottlers and distributors can make significantly more money. Their formula for success is straightforward: Leverage industry knowledge, experience and resources.

INDUSTRY KNOWLEDGE

First, by assessing the market and identifying the current and social trends, one can understand how emerging trends impact the product formulation and beverage success. For example, the market is highly focused on helping beverage marketers and manufacturers create sustainable products. Considering the key product attributes will help define the brand. Also important is identifying the target market for the product.

EXPERIENCE

Leveraging the hands-on, expert experience that already exists within an operation is key to creating a private label brand. It makes sense to utilize lab expertise to formulate a stable, balanced product that has good flavor and is cost-effective. And, it goes without saying, delivering outstanding customer service will help you win and retain customers.

RESOURCES

A successful product launch requires world-class partnerships. Partners like ingredient suppliers, branding gurus, investors, and distributors should aspire to serve your best interests. Expert partners are instrumental in helping to develop a market-ready product. These relationships are vital.

In creating a private label beverage, the advantages go beyond the ability bring in new dollars. As the entrepreneur, you are in control of the process, and don't have to question if the project will suddenly end. Also, it's cost-effective to launch your own brand, because you can keep the back-end costs down. Finally, since you own the brand, the opportunity for growth is in your own hands.

By: Troy Gooding, Vice President, Business Development, abelei flavors November 2010