In this article, you’ll learn:
- What private label beverage manufacturing is
- What kind of drinks you can make with a private label partner
- How private labelling speeds up your time to market
- Why private label solutions are so popular for FMCG businesses
To compete in the constantly evolving FMCG market, businesses need to be agile. With consumer tastes always changing and developing, you can no longer rely on a static range of core products to establish yourself as an industry leader. However, launching a new product – such as a ready-to-drink (RTD) beverage – can be time-consuming and expensive.
Fortunately, there are plenty of options for businesses to streamline their time to market. The leading choice is private label beverage manufacturing, where FMCG businesses partner with third-party manufacturers to develop and produce beverages. This strategy is increasingly recognised as one of the most effective FMCG strategies.
To learn more about private label beverage manufacturing and its benefits, I spoke to Prajackta Parab. She is a food technologist and the founder and CEO of Spectrum Food Solutions, a global food safety consultation and new product development organisation. She is also a founder of Leafy Crave, a manufacturer of moringa and millet-based value-added products. Read on for her insights.
What is private label beverage manufacturing and why is it so popular?
Put simply, private label beverage manufacturing is a process where businesses work with partners to launch a drink product.
As a product development leader, Prajackta has plenty of experience with private label manufacturing. “It is when a company produces food or drink that is branded and sold under another retailer or company’s name, rather than the manufacturer’s own brand.”
In essence, it is a long-term partnership where FMCG businesses, such as coffee chains or drinks brands, can outsource the production of new products. Doing so often comes with a lower upfront cost and potential risk than managing the process in-house.
Working with a private label partner, you can lean on their expertise and formulations for the product. “The manufacturing company produces the food or drink according to a standardised recipe,” she explains. This limits the burden of research and testing, speeding up your time to market.
Some private label partners are more flexible with these services. “Recipes can either be fully customised or developed for the brand as per the respective brand’s requirements. Or, it can be manufactured from the manufacturer’s existing formulation.” This flexibility means you can react to trends fast – for example, adding a matcha latte to your RTD lineup in weeks, not months.
For drinks businesses, you can also work with private label partners to prepare a drink from scratch. It means adding trending drinks like functional beverages and cold brew to your existing RTD coffee range, for example, without needing to undertake market research and formulation.
You will need to choose a private label manufacturer with the experience and infrastructure required for your products. Hardtank’s private label services focus on canned RTDs, spanning anything from black coffees to cold lattes and clean energy drinks. For FMCG businesses that already have a line of RTDs, private labelling makes it easier to expand and experiment with new products.
Which drinks can you make with a private label partner?
Alongside your speed and agility in getting a new product to market, private label partners can help you diversify your existing product line. If you specialise in a certain type of drink or form factor, you can work with third parties to target new demographics or experiment with new SKUs.
Coffee-based RTDs
One common private label drink is iced and cold coffee, usually in RTD formats. The options are vast here. “Common categories include caffeinated blends, cold coffee, fruit-based cold brews, RTD lattes, and matcha lattes,” Prajackta says.
RTD coffee is a particularly popular form factor for younger coffee consumers. They demand formats that are convenient to pick up and consume, with the drink inside also providing health benefits. Cold coffee, such as cold brew, is often considered a healthier alternative to hot coffee, so you can market your new RTD coffees to Gen Z and Millennials.
Functional beverages
However, the range of drinks you can produce doesn’t stop there. Prajackta also recommends flavoured and sparkling waters, soft drinks, energy drinks, and functional beverages. The latter is one of the fastest-growing food and beverage trends, with consumers looking for products that do good as well as taste good. “You can offer vitamin-enhanced or adaptogen-infused drinks,” Prajackta says.
Other drinks
For more traditional manufacturers, you can also work with some private label manufacturers to produce juices, sports drinks, beers, seltzers, or RTD cocktails. Geared towards the health sector, you can also offer meal replacement shakes, herbal drinks, or collagen water through private labelling.
“With private label beverages, retailers have greater flexibility to respond to changing consumer preferences or market trends,” she adds. “They can quickly adapt their product offerings or introduce new flavours or variations based on customer demand.”
While there’s a vast array of drinks you can offer, you also need to consider how to package your RTD drinks. The most common form factors are plastic bottles with resealable lids or cans, typically made from aluminium.
Hardtank uses cans for its private label beverage manufacturing. It is a packaging solution that is durable, lightweight, and 100% recyclable at home. Compared to plastic bottles, which may need to be melted down or separated before recycling, cans are more eco-friendly. As modern consumers increasingly base their purchasing decisions on sustainability, it’s an appealing solution.
Going to market with private label beverage manufacturers
Once you know which drinks to offer and how to package them, you can work with a third-party manufacturer to bring them to market. “Partnering with a reputable and experienced beverage manufacturer is essential for producing high-quality private label beverages,” Prajackta adds.
“Look for manufacturers with a proven track record, industry certifications, and the ability to meet your production capacity and quality standards.”
In this sense, choosing a manufacturer already specialised in your target market is the most convenient and efficient option. “Beverage production and labelling are subject to strict regulations,” she adds. “Work closely with your manufacturer to ensure compliance with all applicable food safety and labelling requirements. That includes ingredient lists, nutritional information, and allergen statements.”
By choosing a partner instead of handling these logistics in-house, you can save your business a lot of time and money. It means you can focus on marketing your new products instead of starting with formulation and production from scratch. For FMCG businesses looking to tap into 2025’s rapidly evolving consumer tastes, it’s the most streamlined – and fruitful – route to market.
Key takeaways
- Private label beverage manufacturing allows FMCG businesses to launch new beverages faster.
- It outsources formulation and development of drinks to third-party companies with experience in the sector.
- This reduces upfront costs and generally speeds up the time to market, which is why it’s such a popular option for FMCG businesses in 2025.
Ready to explore Hardtank’s private label beverage manufacturing? Visit our website to learn more or schedule a free consultation.
FAQ
What is private label beverage manufacturing?
It is when a third-party manufacturer produces drinks on another company’s behalf, using custom or pre-determined formulations.
Why is private labelling popular for FMCG brands?
It speeds up your time to market because manufacturers already have the equipment, processes, and compliance knowledge required to launch a product. This can also save FMCG businesses a lot of money.
What types of drinks can I produce with a private label partner?
The options depend on which manufacturer you work with, but you can produce anything from canned cold brew to functional beverages and energy drinks.
