Private Label Beverage Manufacturing: A Complete Guide
Learn how private label beverage manufacturing works, from formulation to packaging, cost, and choosing the right partners to launch your own brand.
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Starting a drink brand does not necessarily require million-dollar investments, bespoke factories, or an army of food scientists. Private label beverage production today offers you a direct route from idea to shelf, without doing it all yourself. Whether you are a business leader, a health brand, a retailer, or simply someone with a good drink idea, this guide demystifies it all. You will discover how private label beverages are manufactured, who makes them, what type of costs and risks are involved, and how to choose a manufacturer that really understands what you're trying to create.
This isn't about following trends or buzzword-fueled bandwagons. It's about practical actions: how to make, package, and market beverages that people desire, be it energy beverages, teas, sodas, or something innovative. If you're dead serious about entering the world of beverage companies without throwing money out the window, this is where you begin.
Private Label Beverage Industry Overview
The private label beverage industry is experiencing rapid growth as retailers develop their own branded drinks to meet consumer demand for quality and affordability. Private label beverages include bottled water, juices, soft drinks, functional beverages, and even alcoholic options like wine and beer.
Valued at over $80 billion globally, the industry is growing at a CAGR of 4–6%, driven by consumer trust in store brands, demand for healthier options, and the rise of eco-friendly packaging. Retailers like Costco (Kirkland Signature), Walmart, and Aldi partner with manufacturers such as Refresco and Niagara Bottling to offer high-quality alternatives to national brands.
Key trends include growth in plant-based, low-sugar, and functional drinks with added benefits like energy or immunity support. As e-commerce and private label marketing expand, store-brand beverages are poised to gain even more shelf space and consumer loyalty.
The future of the private label beverage sector lies in innovation, sustainability, and premium positioning—all at a competitive price point.
What Is Private Label Beverage Manufacturing?
Private label beverage manufacturing is the process where a third-party company produces beverages that are sold under another company’s brand name—usually a retailer, distributor, or startup. Instead of creating their own production facilities, brand owners partner with contract beverage manufacturers who handle formulation, sourcing, production, packaging, and sometimes even distribution.
This model allows retailers and entrepreneurs to launch custom-branded drinks—such as juices, energy drinks, bottled water, cold brew, or alcoholic beverages—without heavy upfront investment. The manufacturer works behind the scenes while the brand focuses on marketing, retail distribution, and customer experience.
Who Uses Private Label Beverage Manufacturing?
Private label beverage manufacturing is used by a wide range of businesses looking to create custom-branded drinks without owning production facilities. Common users include:
🏬 Retailers & Supermarkets: Chains like Tesco, Aldi, Target, and Lidl use private label manufacturing to offer store-brand beverages—such as bottled water, juices, or sparkling drinks—at competitive prices.
🚀 Startups & Entrepreneurs: New beverage brands leverage private label manufacturers to quickly launch niche products like functional drinks, kombucha, or plant-based beverages without high upfront costs.
🥤 Cafés, Restaurants & Hospitality Brands: Food service businesses often create custom-label beverages to reinforce branding—like house-brand iced teas, sodas, or bottled water.
🏢 Corporate & Promotional Brands: Companies use private label drinks as branded giveaways or promotional items for marketing events, often featuring custom logos and packaging.
🌿 Health & Wellness Brands: Brands focused on organic, vegan, or low-calorie beverages rely on private label manufacturing to develop clean-label, functional drinks tailored to health-conscious consumers.
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The Private Label Beverage Manufacturing Process
Here’s how a private label beverage actually gets made. You’ve got the vision, now it’s about turning it into something people can hold, taste, and buy. From recipe development to packaging to shipping it out the door, this is where your beverage brand becomes real.
1. Ideation & Formulation
Each beverage begins with an idea. It might be a gut-friendly soda, a double-shot of caffeine energy drink, or an iced tea that's sugar-free. This is where you work out what that beverage actually is—taste, ingredients, perks, and where it distinguishes itself in the marketplace.
With bespoke drink formulation, you collaborate with experts who know about beverage product development from the inside out. They assist in refining your flavor profile, getting your sweetness level just right, tweaking carbonation, and ensuring it passes shelf life testing and food law. If you're creating something in particular like functional beverages with adaptogens or low-calorie colas, that's where it comes together.
2. Sourcing Ingredients
Once your formula is solid, it's time to decide what goes in the bottle. How good your ingredients are will make or break your drink, so pay attention.
A good private label beverage maker will understand how to find you clean, dependable ingredients without breaking the bank. Need plant-based caffeine? Natural fruit essences? Non-GMO sweeteners? They'll know where to get it. Some manufacturers allow you to provide your own ingredients, but most provide fully integrated solutions. This keeps things smooth and consistent, two things you need a lot of when scaling.
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3. Beverage Packaging & Label Design
Your packaging is not all about aesthetics. It's about functionality, durability, cost, and how people perceive it in the market. Do you go with bottles, cans, or something else? Will it be stored in a fridge, on a shelf, or shipped in bulk?
Private label beverage services may employ professional pack designers to design something that really stands out on the shelf and meets all food and beverage laws. From selecting materials that are recyclable to having your label design accepted for production, this is where your brand moves from concept to something consumers actually grab.
4. Beverage Manufacturing & Co-Packing
That is the point where your beverage is finally manufactured in volume. Contract manufacturing crews for beverages use commercial machinery to fill, cap, and package your product. That means everything from blending to pasteurizing to carbonating to finding the perfect level of fizz in each can.
If you're dealing with a low MOQ beverage manufacturer, you won't have to lock up huge runs. That provides opportunities for startups and small companies to get going without investing a whole lot of capital in inventory. Find co-packers who have clean facilities, accommodate flexible production, and warehouse space for your finished product if necessary.
5. Distribution & Fulfillment
Now you have pallets of finished beverages. Where do they go? Some private label beverage firms provide built-in distribution, allowing you to ship directly to retailers, warehouses, or even your clients. This eliminates the necessity of third-party logistics and gets your beverages out the door quicker.
Whether stocking shelves or shipping ecommerce orders, being able to rely on a supply chain partner who takes care of warehousing and delivery keeps things streamlined. Plan carefully here. One of the biggest ways to shield your margins is by avoiding delays and added distribution costs.
Benefits of Private Labeling Beverages
Private label is your way out if you're committed to starting a drink business but not wanting to spend money or time on making it. You remain in full command of your product but without the hassle of constructing a facility or dealing with a staff of chemists and bottle techs. Here's why it's a wise idea.
Faster Time to Market
When you partner with a private label beverage manufacturing company, the difficult part (equipment, personnel, certifications) is done. You're not starting at ground zero. This implies your product can go from idea to store in a quarter of the time. Rather than take a year or so getting everything up and running, you can be shipping in months.
Lower Initial Investment
Creating a drink brand doesn't have to break the bank. With private label beverages, you avoid the huge expenses such as purchasing industrial mixers, bottling equipment, or renting a warehouse. You're investing only in what you make. No overhead, no surprise invoices, no wasteful expenses.
Brand Customization
This isn't attaching your logo to a generic bottle. You're the master of your domain with private label. You decide the recipe, label, packaging, taste, it's all you. It's ideal for companies that wish to create one brand with authentic identity, not a copy-paste product.
Focus on Marketing and Sales, Not Production
When production is handled by experts, you’re free to focus on what actually drives growth, getting customers, building your brand, and scaling sales. Instead of worrying about facility downtime or ingredient delays, your energy goes where it counts: building a business that sells.
Challenges in Beverage Manufacturing
Building a drink brand is all fun and games until you get to the real-world aspects. Regulations, supply problems, and unnecessary costs can be the downfall if you're not prepared. Even with a private label company, you want to understand what you're getting yourself into. These are some of the bumps you'll encounter (and how to deal with them wisely).
MOQ and Cost Thresholds
One of the first obstacles? Minimum order quantities (MOQs). Some companies will not even discuss with you unless you're prepared to order tens of thousands of bottles. That's not great if you are dipping your toes in the water. On the plus side? There are low MOQ food and beverage manufacturers who deal in smaller quantities. Just be aware: lower volume typically means a greater cost per unit. It's a sacrifice between risk and price.
Beverage Regulatory Compliance
You can't simply mix some ingredients together and begin selling beverages. The beverage business is heavily regulated, and there are various rules in each market (whether you're in the U.S., EU, or Asia). Everything from labeling to shelf life claims to nutritional details must be nailed down. A quality private label beverage service will keep you out of legal trouble by taking this side of things in a professional manner.
Supply Chain Logistics
This is where things get screwy quickly. Delays in ingredients, shipping problems, blown timelines, it all mounts up. An underperformed supply chain drains cash and kills velocity. That's why having robust beverage contract manufacturing partners counts. They have developed systems to keep the factory going and deliveries on schedule. You need speed, not surprises.
Connect with the Best Private Label Beverage Manufacturers
Your private label beverage manufacturer can either make or break your beverage brand. You don't just need someone who can fill bottles, you need an ally that shares your vision, is attuned to the market, and can really get it done.
1. Slumberjack Coffee – United Kingdom
Slumberjack Coffee is a private label beverages producer supplying more than the common assortment. They specialize in high-quality instant drinks such as specialty coffee, milk powders, and powdered drink mixes. Their area of expertise is customization and quality, supplying both retailers and brands looking to expand their offerings beyond liquid-filled cans or bottles.
2. Opre' Brothers – Slovakia
Opre' Brothers seeks to specialize in natural and health-focused beverage products. Their private label options range from clean-label ciders, honey-infused lemonades, and ginger shots that are perfect for brands seeking wellness-focused consumer bases. They prioritize sustainability and genuine ingredients, making them an excellent partner for beverage companies prioritizing transparency, taste, and eco-friendliness.
3. Royal Beverage – Kosovo
Royal Beverage is an older private label soda and soft drink producer, having a diverse portfolio of products that's been in business since 1994 with production dating back to 1905. Featuring brands such as RC Cola and Red Rain energy drink, they produce private label beverages also for regional markets. With large capacity for production and steady output, they are a trusted option for companies looking for an experienced producer of energy and carbonated drinks.
4. Can Global – Bulgaria
Can Global marries in-house know-how with vast infrastructure to provide scalable private label beverage manufacturing services. With their own spring water source, R&D staff, and production of over 20 million units per month, they assist both startups and well-established firms. They provide end-to-end services such as formulation, canning, bottling (PET/glass), and logistics, and therefore are a first choice for custom drink manufacturing at scale.
5. Brasserie Champigneulles / TCB Beverages – Germany
TCB Beverages, which is owned by TCB Beteiligungsgesellschaft, is among the biggest private label makers of drinks in Europe. Supported by three large breweries, they control more than 10 million hectolitres of production each year. TCB is best suited for big buyers such as foodservice and retail customers because they provide velocity, volume, and consistency for companies that require reliable high-volume runs of beer and other drink categories.
Trends in Private Label Beverages
The drink aisle doesn’t look like it did five years ago and that’s a good thing. The shift toward smarter, cleaner, and more creative beverage products is opening up space for new private label brands to stand out. If you’re planning to enter the market, here’s what’s trending and why it matters for your business.
Health-First Beverages Are Winning
Consumers are scanning labels. They're avoiding the sugar bombs and seeking out beverages that do more than satisfy their taste buds. That translates to drinks with zero sugar, plant-based ingredients, adaptogens, and vitamin boosts that are gaining traction quickly. Private label beverage manufacturing partners now frequently provide assistance for customized health-focused formulas, from collagen teas to keto sodas.
Functional Is the New Normal
Ditch bland refreshments, beverages now need to do good. Whether it's to increase energy, maintain digestive health, or enable consumers to concentrate without the crash, functional drinks are in full boom. If you're formulating something with intent, such as nootropic energy drinks or probiotic soft drinks, private label services can assist you in building the correct formula from ground-up.
Packaging That Doesn’t Kill the Planet
Sustainability is no longer an afterthought, it's a given. Compost packaging, recyclable aluminum cans, and green printing options are on trend. Consumers are concerned about what goes into and onto the bottle. A private label beverage company that provides sustainable packaging solutions gets your brand ahead of the game.
Flavors That Get People Talking
Forget the same old cola or lemon iced tea. Distinct flavors are where it's at, consider hibiscus rose, lychee mint, or cucumber lime. Drink companies that provide private label business are now venturing into international taste trends to assist brands in creating a flavor roster that really makes a statement (and sells).
Direct-to-Consumer is Exploding
Increasing numbers of drinks brands are bypassing traditional off-trade and selling direct-to-consumer. Whether Shopify sites, Amazon stores, or subscription models, DTC channels allow you to own your brand, harvest data, and maintain margin control. Private label manufacturers which take on fulfillment and logistics enable this path to be scalable and less painful.
How to Launch a Private Label Beverage
So, you’ve got a drink idea. Great. Now what? Here’s how to take it from “random thought” to “bottled and sold”, without wasting time or money. This isn’t just theory. This is the real stuff beverage founders actually do.
1. Know Who You’re Making It For
Before even considering ingredients or labels, define your audience. Are you peddling protein-packed teas to fitness enthusiasts? All-natural juices to parents? Everything else, your flavor, branding, even packaging, hangs on this choice.
2. Get the Recipe Right
This is where you bring the flavor to life. Need something sugar-free, plant-based, or functional? Go flavour deep on flavor, texture, and nutrition. Partner with beverage formulators who can assist in balancing quality and shelf life while keeping your product unique.
3. Select the proper manufacturer
Shop around and find a private label drink manufacturer that will suit your requirements, not the largest name. Think about MOQs, packaging capabilities, lead times, and the level of involvement they have with recipe development. If budget is a concern, opt for a low MOQ drink manufacturer to minimize risk in the first place.
4. Create Packaging That Performs
Don't stick a logo on a can. Your packaging should attract attention, comply with legal regulations, and guard your product. Use cans, PET bottles, or glass, but ensure the label matches your aura while effectively conveying the beverage's advantages.
5. Sample, Test, Tweak
Don't hurry to go to the market. Obtain samples. Taste test with actual people. Make adjustments that are necessary, whether it's the taste, carbonation, or even labeling clarity. Sampling is the least expensive method of preventing costly errors.
6. Establish Distribution Channels
Decide how you’ll sell: DTC via your site? On Amazon? In stores? Through foodservice? Each one needs a plan for storage, shipping, and scaling. Many private label beverage services include help with warehousing and fulfillment, huge if you’re new to the game.
7. Push the Brand Like Crazy
Taste alone won’t carry you. Your drink needs visibility. That means smart marketing, clean storytelling, and a brand that connects. Paid ads, influencer seeding, sampling events, whatever it takes. Make noise, build trust, and keep showing up.
How Much Does It Cost to Start a Private Label Drink Brand?
Launching a private label beverage brand isn't only for high-budget players anymore. With the correct private label beverage manufacturing partner, you can get launched for as low as $5,000 to $15,000. That usually includes beverage formulation, packaging, filling, and production for a mini-production batch, normally 1,000 to 2,000 pieces.
If premium ingredients, in-house drink production, or specialty packaging (such as glass bottles or embossed cans) are your goals, be prepared for the prices to increase. Branding, label creation, and initial distribution will also contribute to your startup costs.
Collaborating with low MOQ beverage producers can assist in keeping initial investment to a minimum while making professional facilities and services available to you. From beginning with a single SKU or establishing an entire product line, each expense is based on how much customization you'll require and how rapidly you need to scale.
What’s the Profit Margin in Private Label Beverages?
Profit margins in private label beverages usually sit between 30% and 60%. It really depends on what you’re selling and how you’re selling it. Premium energy drinks or functional teas tend to bring in more because people are willing to pay for benefits like clean ingredients or added nutrients.
Larger runs bring your cost per-unit down, so the larger you go, the better your margins are. Just don't forget to include everything, marketing, shipping, returns, even warehousing.
The real money comes from building a brand people trust, pricing it right, and keeping your supply chain tight. Cut unnecessary costs, work with the right private label beverage manufacturer, and you’ll have a business that’s not just moving drinks, but actually making money.
Conclusion
You don't have to have an access to factory, a huge team, or an enormous budget to start a legitimate drink brand anymore. Private label beverage production provides you with the equipment to produce genuine products (teas, sodas, coffee, whatever) with pro-grade quality and packaging, without the burden.
It's your concept, your taste, your brand. The proper private label partner enables you to bypass the guesswork, avoid unnecessary expenses, and get to market quickly. You concentrate on selling and developing the brand. They take care of the formulation, manufacturing, and supply chain in the background.
Whether you're creating one product or an entire line, private label beverages simplify standing out in a busy marketplace. What is important today isn't how big or small you are, it's what you're working on, what you like, and whether you can get things moving. So create something bold. Sign your name on it. And bet the farm.