Tho former core investor Emigrant Capital proved stalwart supporter of SF-based Zola Fruits of

the World thru numerous rounds of financing, acquisition by KarpReilly has provided significantly larger chunk

of resources that should enable it to beef up sales, marketing and innovation efforts, its founder told BBI.

In chat today, day after announcement of deal, founder Chris Cuvelier described great initial synergy with

KarpReilly, citing approach and longer-term horizon of Conn private-equity shop whose other investments

include flock of restaurant chains as well as bev plays KeVita and Spindrift. “They came in and bought the entire

company and put in a nice chunk of capital” that will fuel investments in staff on sales and marketing side and

support stepped-up innovation pace, said Chris. Deal was structured so that Cuvelier retains some equity and can

earn more if brand prospers in coming years. “Now we’re properly capitalized and we have a good strategy,” he

said. “I want to take this to be a $100 million brand.”

In making acquisition, KarpReilly has taken out Emigrant Bank’s Emigrant Capital arm, which had been known

over past few years to have lost its appetite for private-equity game after misfires with brands like Detour and

Jolt, tho it appears to be faring well with its remaining bev holding, Boylan Bottling, under mgmt of Emigrant

chief Howard Milstein’s son, Stephen. In interview, Cuvelier commended Emigrant for acting as patient steward,

often coming to table with new infusions of capital several times a year, tho not on magnitude of capital just put

on books by KarpReilly, which he didn’t disclose. “I’m very appreciative of the support from Emigrant and the

Milstein family,” Cuvelier said. Still, treasury was never flush, and Chris acknowledged that ongoing uncertainty

over past 6 months had taken toll, including departure of right-hand exec, coo Matt Collins, to Forager Project,

also based in SF. In resolving uncertainty, arrival of KarpReilly has left everyone in co excited about months

ahead, Chris emphasized.

Part of Collins’ duties have been picked up by 4-year Zola vet Ben Winter, who’s been serving as operations dir.

John Weber, vp of brand experience, will get help in recruitment of marketing vp, search that’s scheduled to

begin next week. Tho Cuvelier will keep a hand in major sales calls and broker relations, he’ll be adding sales

resources, too.

In its 12 years of existence, Zola has taken significant course corrections, seguing from pure play in acai to

broader realm of tropical fruits, as well as participating in coconut water boom and adding snacks line. Last year,

for first time, coconut water leapfrogged superfruit side of biz; it now accounts for roughly 60% of sales. And

while acai category has been flat to down, Zola is exploiting pockets of strength, such as foodservice, supplying

Robeks and other makers of acai bowls and smoothies with its aseptically processed, shelf-stable purees. Co

recently partnered with Dot Foods to deepen penetration of that channel. And it continues to mix it up in product

range, most recently balancing berry-heavy acai portfolio with Acai Mango with Chia sku. It doesn’t hurt that

KarpReilly has investments in 13 modest-size foodservice plays, one of which soon will roll out Zola’s coconut

water after brief test.

Call it another step by energy segment into mainstream: Rockstar Energy is rolling out nationally

as freeze item at 6,500 or so of nation’s Taco Bell restaurants. After tinkering with both Rockstar Original core

sku and its Punched extension, eatery operator has opted for Punched, luminescent-pink concoction which

performed well enough in 50-store test in Nashville, Tenn, to get accelerated national rollout that’s seeing it

entering stores in early Feb, well ahead of earlier-planned Apr/May timeframe. Rockstar’s evp marketing, Jason

May, said that as far as he could tell, it’s broadest energy initiative in quick-serve restaurant environment, which

has been slow to embrace energy brands for fountain items. Rockstar Punched Freeze takes place as 1 of 3

Freeze offerings, mandated for acceptance at all Taco Bell units with Freeze offering, roughly 6,500 stores. In

stores that have been quickest to pick it up past week or so, it seems to be backed by extensive POP at entry, soda

area and grab-and- go cooler. Up to now the Freeze program has mainly been province of CSD brands, such as

Pepsi’s Mountain Dew brand and its Kickstart juice extension. Pepsi, of course, has had longstanding alliance

with Taco Bell (and in fact once owned chain).

Jeff McKasson, PepsiCo’s vp for food/bev sales to Taco Bell, said program comprises another step in evolution

by fast-feeder from days when Freeze platform only employed Taco Bell’s in-house brand. It also seems to

reflect strengthened partnership between Rockstar and Pepsi, which distributes brand in most of US and has

helped put it on 20% growth jag in recent months.

Besides sporting appealing flavor profile, Punched has been among Rockstar’s best-performing sublines, growing

by double digits year after year. Tho Rockstar’s canned entries generally boast 10-15 mg of caffeine per oz,

partners have opted for Freeze spinoff that comes in at just 5.75 mg per oz, or 92 mg per 16-oz cup, in line with

numerous CSDs on offer at Taco Bell. Both partners will deploy their social media clout to back Punched Freeze

starting next week, with Rockstar mustering its array of models and athletes to get word out.

Whole Foods Markets

released more details of its lower-priced 365 banner, announcing 5 more store locations to follow first unit due to

open in LA in about 100 days. On earnings call, Jeff Turnas, who’s been assigned oversight role for 365 chain,

said co will open 10 stores by Oct 2017, with next locations due in Evergreen Park, Ill; Gainesville, Fla, and

Concord, Claremont and Los Alamitos, Calif. By now 13 leases have been signed. Friends of 365 program will

woo outside vendors – from record shops to tattoo parlors – to take space within new stores or on their patios.

New chain is widely believed to be aimed at millennial shoppers who frequent rival Trader Joe’s chain.

Fast-

expanding HPP players are racing to dial up value proposition as they scale up and enter greater share of

conventional retailers, whose customers may be less inclined to pay $8 or $10 or more for single-serve bottle, no

matter how nutritionally fortifying. So they’re knocking a buck off price of their core packages while adding to

mix smaller sizes sporting lower calorie counts and less sticker shock. As noted last week, Hain Celestial’s

BluePrint recently dropped price of its core 16-oz bottle to $7.99 (BBI, Feb 4) and is adding 10-oz size at $4.99

for conventional retailers. Now Austin-based Daily Greens and NY-based WTRMLN WTR are toying with same

matrix of size and price point.

In chat with BBI yesterday, Daily Greens founder Shauna Martin summed up dilemma: “There’s fierce

competition at this juncture. It’s a race to the bottom on price, which is upsetting. But if everybody had a green

juice every day, we would not be in a health crisis.” Thus, whatever gets juices distributed more broadly and

affordably should be viewed as affirmative step. Shauna noted that, fortunately, as Daily Greens builds out new

East Austin mfg site and ups volume, it’s garnering efficiencies to keep up with downward price curve. Here’s

what’s cooking on both brands:

Daily Greens: 3 Sizes Now in Mix Daily Greens has moved its core 16-oz bottle down to $6.99 at mainstay

retailers like Whole Foods and specialty grocers while inaugurating 12-oz bottle size that aims for $5.99 at

conventional retailers, founder Shauna Martin told BBI yesterday. That’s as co continues to build 8-oz Half Pint

pack that targets kids as well as adults who’re seeking smaller portion size and lower price. Half Pint will add

more flavors to mix, and also incorporate Ganeden 30 probiotics in all sku’s. Various innovations as well as

tweaks to look of brand will be highlighted at upcoming Natural Products Expo West in Anaheim next month.

Daily Greens, recall, was founded by former attorney and breast cancer survivor Martin, who’s drawn equity

investment from WhiteWave Foods as part of that co’s buildup of plant-based nutrition segment. Tho Shauna

declined to discuss financial developments, Form D filed Jan 12 indicates co recently raised another $3 mil in

equity capital, as it builds out hq plant in East Austin, where it installed Avure HPP unit last year (BBI, Apr 8),

and establishes seasoned sales teams in East, West and Central regions.

By now, brand is national in Whole Foods except for Fla div, and it’s in about half of Safeway regions and all

Kroger stores in western US. It’s in all warehouses nationally of broadline distributor UNFI and soon will have

national status at KeHe too. (Its sole DSD house is Dora’s Naturals in NY.) Co also recently attained kosher

certification, which new labels will reflect.

WTRMLN WTR Adds 8-Oz Pack at 2 for $4; Growing Own Melons in Puerto Rico Tho fitness-oriented

WTRMLN WTR brand is remaining focused on East and West Coasts, where consumers are viewed as more

sophisticated and less price-sensitive, it’s scrambling like other cold-pressed juice players to move its prices into

greater affordability. It’s offering its core 12-oz bottle at $2.99 on promo these days, and is also debuting 8-oz

size, offering both portion control and lower price, promoted at 2 for $4. Also in mix is 1-liter bottle in NY, LA

and SF, tho for many athletically oriented consumers that’s not a multiserve pack but a single-serve size, much in

the way many users consume 32-oz bottles of Gatorade in one go.

Update was offered by founder Jody Levy and marketing chief Jeff Rubenstein in co’s offices in Chelsea nabe of

NY, having just come off Super Bowl win in which Denver Broncos team of brand loyalists Demaryius Thomas

and Andre Caldwell prevailed. WTRMLN WTR sponsored Rolling Stone party at Super Bowl and even was

invited to Broncos’ team dinner a few days before big game, Jody said.

Recall that key premise of the brilliantly pink-branded WTRMLN WTR is to employ blemished watermelons that

would otherwise be tilled back into ground, employing all parts of fruit (and bit of lemon) to create drink that’s

uncommonly restorative but isn’t burdened with artificial ingredients of Gatorade or taste barrier of coconut

water. Lately co has gotten into growing biz, working with Puerto Rico’s ag experts to grow their own during

winter months when land is otherwise fallow. (Watermelon growing cycle is just 90 days.) It’s got 2 mil lbs in

ground right now, Jeff said, maintaining co’s aim to source all fruit from US, even at time of year that mainland

growers aren’t producing.

By now brand is available in all Whole Foods regions except Mid-Atlantic, which comes aboard next month, as

well as Sprouts, Earth Fare, Mother’s and Central Market chains plus lotsa natural co-ops. It’s fully national in

both UNFI and KeHe and may be approaching 75% ACV in natural channel. On DSD side, it employs Dora’s

Naturals in NY, Dove in SF, Seacoast in San Diego and shortly will bring on Rock Island in Sacramento, Calif.

But conventional chains have been coming on strong too now: Stop & Shop, Shaw’s, Market Basket, Wegmans,

Vons, Ralph’s, Randalls, PCC. Some of these chains are served direct, with view to getting bev shelved not in

dairy section but right among watermelons in produce section, where velocity surges. Co has also made big push

into Costco, moving from pair of LA-area stores last May to 8 regions now, selling 6-packs and 1-liter bottles.

PepsiCo managed to skate

above global turmoil in Q4, scoring 10% profit gain despite higher marketing and R&D spending, and weathering

range of macroeconomic challenge such as slowing economies, terrorist attacks and currency swings in key

markets. “We are happy to report that we met or exceeded every financial goal we set for 2015, demonstrating

consistent performance in the face of volatile macros,” declared chmn/ceo Indra Nooyi this morning. Net

revenues in 4th qtr declined 7% to $18.59 bil, dragged by 8% currency impact, but operating profit surged 10% to

$2.24 bil despite increase in marketing spend. Net income surged 31% to $1.72 bil. For full year, revenues were

off 5% to $63.06 bil, dragged by 10% currency impact, and operating profit dropped 13% to $8.35 bil. Net

income dropped 16% to $5.45 bil.

North American Beverages unit scored 1% organic volume growth and 3% organic revenue growth, both for Q4

and for full year. With operating profit up 7% excluding currency issues, Q4 was best for region in 3 years, PEP

emphasized. Low commodity costs and productivity gains helped, offset somewhat by increased marketing

spending. Reported revenues were up 2% to $5.85 bil and reported operating profit up 13% to $639 mil.

As has often been case in recent qtrs, PEP brass shed little color on specific bev brands, not even Pepsi CSD

trademark, neither in 29-page earnings release nor in prepared remarks. Instead, ceo offered disquisition on co’s

cash allocation policies, in process restating her aversion to giant deals, preferring “responsible” tuck-in

acquisitions, generally under $500 mil, that are deemed to be value-creating, scalable and good cultural fit. One

analyst did lob in a question about Gatorade’s strong performance in 2015, which ceo Nooyi attributed to hotter-

than-usual weather, strong innovation (with significant contributions from Fierce and Frost sublines) and greater

athlete credibility, which enables brand to “far outdistance any emerging competitors who try to attack Gatorade

just on price.”

On call, Nooyi did boast of some foodservice wins: Disney’s China parks, Subway chain in several countries,

renewed deal with Yum Brands eateries in China. At time some eateries are looking to upgrade quality of

foods/bevs they offer, PEP has moved to offer “enhanced” (read that HFCS-free) platforms with Stubborn Soda

and Mtn Dew Black Label.

In interview with The Street, cfo Hugh Johnston talked up potential of organic version of Gatorade and also

hinted that PEP might get back into fast-growing sparkling water space.

PepsiCo managed to skate

above global turmoil in Q4, scoring 10% profit gain despite higher marketing and R&D spending, and weathering

range of macroeconomic challenge such as slowing economies, terrorist attacks and currency swings in key

markets. “We are happy to report that we met or exceeded every financial goal we set for 2015, demonstrating

consistent performance in the face of volatile macros,” declared chmn/ceo Indra Nooyi this morning. Net

revenues in 4th qtr declined 7% to $18.59 bil, dragged by 8% currency impact, but operating profit surged 10% to

$2.24 bil despite increase in marketing spend. Net income surged 31% to $1.72 bil. For full year, revenues were

off 5% to $63.06 bil, dragged by 10% currency impact, and operating profit dropped 13% to $8.35 bil. Net

income dropped 16% to $5.45 bil.

North American Beverages unit scored 1% organic volume growth and 3% organic revenue growth, both for Q4

and for full year. With operating profit up 7% excluding currency issues, Q4 was best for region in 3 years, PEP

emphasized. Low commodity costs and productivity gains helped, offset somewhat by increased marketing

spending. Reported revenues were up 2% to $5.85 bil and reported operating profit up 13% to $639 mil.

As has often been case in recent qtrs, PEP brass shed little color on specific bev brands, not even Pepsi CSD

trademark, neither in 29-page earnings release nor in prepared remarks. Instead, ceo offered disquisition on co’s

cash allocation policies, in process restating her aversion to giant deals, preferring “responsible” tuck-in

acquisitions, generally under $500 mil, that are deemed to be value-creating, scalable and good cultural fit. One

analyst did lob in a question about Gatorade’s strong performance in 2015, which ceo Nooyi attributed to hotter-

than-usual weather, strong innovation (with significant contributions from Fierce and Frost sublines) and greater

athlete credibility, which enables brand to “far outdistance any emerging competitors who try to attack Gatorade

just on price.”

On call, Nooyi did boast of some foodservice wins: Disney’s China parks, Subway chain in several countries,

renewed deal with Yum Brands eateries in China. At time some eateries are looking to upgrade quality of

foods/bevs they offer, PEP has moved to offer “enhanced” (read that HFCS-free) platforms with Stubborn Soda

and Mtn Dew Black Label.

In interview with The Street, cfo Hugh Johnston talked up potential of organic version of Gatorade and also

hinted that PEP might get back into fast-growing sparkling water space.

Fast-growing

WhiteWave reported its 2d consecutive billion-dollar qtr today even as it gave indications that it’s ready to dial up

DSD push to better tap impulse channels like delis and c-stores.

For Q4, sales rose 13% to $1.03 bil and operating profit rose 27% to $92 mil. For full year, sales were up similar

13%, to $3.87 bil, and operating profit was up 25% to $332 mil. Co said strong growth in Americas Foods &

Beverages (Silk, So Delicious, Horizon Organic, Int’l Delight) and Europe Foods & Beverages (Alpro) segments

was partly offset by declines in Americas Fresh Foods as Earthbound Farms suffered disruptions from tortuous

SAP transition and couldn’t meet robust demand.

Recall, WWAV launched twin tests last year in San Diego and New England of shelf-stable, single-serve versions

of its Silk cashewmilk and almondmilk, tapping Worcester, Mass-based Polar to test whether DSD might be

effective way of getting new format to impulse channels (BBI, Sep 25). Since then, BBI has heard co has been

approaching other DSD houses on picking up RTD entries, and on conference call this morning chmn/ceo Gregg

Engles listed as priority for 2016 to “build the away-from- home channel.” He noted Silk and Horizon single-

serve formats as holding particular long-term potential. WWAV brass suggested they may have more details to

offer on innovation side at next week’s presentation before Consumer Analyst Group of NY (CAGNY), just

weeks ahead of Natural Products Expo West, major launch platform for natural/organic cos like WhiteWave.

One new brand that may be approaching launch day: cold-brewed iced coffee called Stok, for which WWAV

applied for trademark in 2014 and was granted extension last Oct. Motif, with retro-style lettering and lightning

bolts, would appear to target urban millennials in dairy-alternative cold-brew space that’s been adeptly plied by

upstart Califia Farms.

Recent Innovations Include Nutchello Nut Blends Among new items hitting market is Silk-branded Nutchello

nut-blend line that mixes and matches among different nut categories. Out in 48-oz PET bottles and positioned as

mid-afternoon alternative to coffee that’s meant to be served over ice, Nutchello is debuting in Rich Dark

Chocolate + Walnuts, Caramel Almonds + Cashews and Toasted Coconut + Cashews flavors, each containing 90

calories or fewer per serving and a gram of protein. It’s Non-GMO- verified. Marketing slogans present

consumption occasions as “Step away from the daily grind” or “Pour a big glass of break time,” apparently

positing indulgent break as getting job done as well as stimulant like coffee or energy drink. TV spot dubbed

“It’s 3 O’Clock Somewhere” depicts women whose energy and focus has flagged during afternoon – they’re

“hazy, useless, confused,” female voiceover states as one pours wine rather than detergent into her washer while

another, at dinner table, unveils roasted basketball as the entrée, realizing at that moment that she switched it with

the uncooked turkey she put in her son’s knapsack. “Take back your afternoon,” ad exhorts. Info and product

imagery at Silk.com/Nutchello. It’s not clear yet whether single-serve versions may also be on way.

As Acquirers’ Multiples Ease Down, Will It Be Harder to Get Deals Done? On this morning’s call, analyst

wondered whether recently declining multiples at natural-food consolidators like WhiteWave and Hain Celestial

are likely to squelch deal flow, given reliance on shares as currency. WWAV exec (we believe it was Engles)

allowed that they likely will, at least in short term. Underlying consumer interest in better-for- you, clean-label

brands will insure that interest in deals remains strong, but “a significant change in the valuation of public

markets almost inevitably flows through to valuations in the private marketplace, but not instantaneously, and it

takes time for people to adjust, particularly when multiples are moving down,” exec said. In other words,

privately held acquisition targets may bridle at accepting offers in early days until their valuation expectations

adjust. “But deals will be made . . . I don’t think the deal environment will come to a screeching halt.”

Looking to spur probiotic innovation,

Cleveland-based Ganeden is offering $25K to help marketers devise new food/bev concepts employing its BC30

ingredient. Dubbed Probiotic Innovation Jumpstart, contest invites contestants to submit concepts by May 6 to

GanedenProbiotics.com/Jumpstart Web site, with trio of finalists to be chosen to present their ideas in person to

panel of judges on Jul 16 at this year’s Institute of Food Technologists (IFT) show in Chicago. Judges will

include Boulder Farm Team’s Mark Retzloff and Nomva cofounder/ceo Caroline Beckman. Winner gets the

$25K as well as advice from experts on how to move forward with commercialization. Recall BBI recently

profiled, by coincidence, pair of new products that happened to employ Ganeden BC30: Garden of Flavor

guayusa-based cold-pressed energy line and Jus by Julie cold-brewed coffee (BBI, Jan 28).

PE shop KarpReilly has been moving quickly to build broad portfolio in bevs, today announcing

acquisition of acai play Zola. Deals for undisclosed terms calls for Zola founder Chris Cuvelier to stay aboard

building co that was early mainstream entrant into acai space but has pivoted to significant coconut water biz as

that segment outran acai in consumer and retailer acceptance. KarpReilly, based in Greenwich, Conn, already is

investor in bev space via fruit-based soda brand Spindrift and KeVita probiotic bevs and kombuchas. Deal

apparently takes out early investor Emigrant Capital, whose interest in PE space has waned, tho it remains owner

of boutique soda brand Boylan and other cos. KarpReilly’s other interests include apparel/lifestyle brands like

Tommy Bahama, Charlotte Russe and Adrianna Papell, restaurant chains like Miller’s Ale House, Mimi’s Café,

Burger Lounge and Habit Burger Grill, and computer bag maker Targus. Zola was advised by Whipstitch

Capital, which also advised Spindrift and KeVita in their deals.

Recall that about a decade ago acai was viewed as ingredient du jour vying for acceptance vs another tropical

item, coconut water, with each segment drawing trio of contenders. As it happened, acai remains niche item

today even as coconut water has raced to broader availability and participation by strategic players Coke and

Pepsi. Of initial 3 players, LA-based Bossa Nova was sold to Sunny Delight, which found it a poor fit and

eventually discontinued brand, while Sambazon remains independent, with core investor the family fund

Verlinvest, also an investors in winning coconut water play Vita Coco and Hint essence waters. While

Sambazon has remained overwhelmingly committed to acai, Zola has considerably diversified, adding both other

tropical fruits as well as coconut water to portfolio and, more recently, chocolate-covered fruit line that only

includes acai in some sku’s. Zola founder/ceo Cuvelier couldn’t immediately be reached for comment, but in

statement he termed KarpReilly perfect partner given its long-term approach and solid track record. Said

KarpReilly cofouner Allan Karp: “Chris and the Zola team have done a fantastic job creating an amazing brand

and a loyal following leveraging their great-tasting products and the unique Fruits of the World brand platform.

The team has some great ideas in the pipeline and we look forward to supporting them as they take the company

to the next level.”

This is the first of 4 essays on bringing your new beverage to market by Joe Plasha, a more than 20-year

production veteran at Frito-Lay, Lipton, Ziegler’s Apple Cider and Li Destri, where he oversaw the installation

of aseptic and hotfill production lines. Joe now operates Beverage Operations Consulting (Beverage-

Solution.com). Subsequent essays will deal with packaging, processes and working with copackers.

Where to begin? You, as a beverage inventor, may be asking yourself this very question as you strategize how to

build your new idea for a beverage into a thriving business. The logical place to begin is with your formula, but,

remember, this is just one piece of a very large puzzle. You may not know what the other pieces even look like or

you may not have the experience to work your way through the process. This is why having someone in your

court, looking out for your best interests and asking the question that you are not thinking of may be crucial to

your success. This series of articles is offered as a navigation guide that takes your product from an idea to a

bottle and sets you on the road to beverage stardom.

So what are those other pieces? What are the questions you need to ask yourself? Everyone wants to be different

because it sets you apart and adds to your brand identity but “different” comes at a cost. “Different” affects the

number of co-packers capable of running your product. “Different” affects the number of co-packers willing to

run your product. “Different” can cost money in the form of needed capital for equipment. Ingredients and

ingredient availability are key factors. The type of package and the method of shipping you choose are also

important factors to your success. Even where you hope to launch your beverage will play a part in your

decision-making.

Let’s start with the formula. Know what is in your formula. Be careful of proprietary ingredients, ingredients

known only to the formulator, and know what impact they will have on your costs and availability. Individual

ingredients have minimum order quantities and they, too, have a shelf life. Knowing this information will impact

how ingredients are ordered. You do not want to buy 50 pounds of an ingredient that has a shelf life of 6 months

only to realize you only need 10 pounds during that time period and you will, therefore, have to dispose of the

balance. Unique ingredients are great to help separate your product from others but be sure to know the

availability of those ingredients. Ingredients that are seasonal can present challenges. A formula calling for, let’s

say, cherry concentrate, will require planning and coordination of your purchasing habits since it may only be

available for a short period of time during the year. If you have an ingredient that is straight from a fruit or

vegetable, you must remember, that like all fruits and vegetables, their flavor changes with various varieties, from

season to season, farm to farm and even plant to plant. Expect and understand that variability. By knowing

what’s in your formula and the ordering patterns of that ingredient, you will be able to insure a consistent flow of

ingredients to your co-packer and a consistent flow of your finished product.

The number of ingredients is something to consider, as it will impact the co-packer’s tolling fee. The more a co-

packer has to measure and the more time it takes to make your beverage, then the greater the chance for error.

Co-packers have procedures in place to insure ingredients are weighed and measured correctly, and errors are rare

but they do happen. I personally know of co-packers that will not even look at producing a beverage that has an

extraordinarily large number of ingredients, and, if they do take on the business, charge a higher tolling fee.

Additionally, ingredients that need a pre-production step like brewing, pre-mixing or heating will not only add to

your cost but also will add to the complexity of the formula, the cost to produce that formula and the number of

available producers that match your needs.

Ask questions about the ability of each ingredient supplier to provide the documentation and certifications that

you require to be able to claim that your product is organic, non-GMO, vegan, gluten-free, allergen-free or any

other compliance-oriented claim. Asking for certification from a small supplier that makes your specific

ingredient in their kitchen or small production facility can be difficult, if not impossible. Most larger formulation

houses address this for you when they select suppliers and should be able to provide the documentation you need.

I also recommend that you keep an eye to the future. If you are making a formula that is not organic but you wish

to switch it over to be organic in the future as your sales grow, be sure you are using ingredients that have an

organic alternative.

Know what your pH is, how it is achieved and understand why it matters. This information, along with your

desired shelf life, will dictate what you do next. A process authority is a great resource to help you with this and

it will help you navigate the complex world of the FDA. The pH information will impact the process you use to

help provide shelf stability and will affect the pool of co-packers available to you who are capable of running

your product. You need to remember that each decision you make narrows down the number of potential co-

packers available to you. I have seen beverage entrepreneurs develop a formula that only 3 or 4 co-packing

companies in the entire U.S. could run and were disheartened to realize that, due to volume constraints, those 3 or

4 were not interested in producing the product.

There are a great number of things to keep in mind as you build your product and your business. Don’t be afraid

to reach out to an industry expert for help. What that will cost you in the short term will more than pay for itself

in the future through cost avoidance, improved cost of goods or speed to market. A good industry advisor will

help you understand the implications of the decisions you make today on your path to the store shelf. I’ve listed

here only some of the things to keep in mind when it comes to the formula and ingredients. There is much more

to think about with these topics as well as other areas like packaging and copackers that you must have

knowledge of to move along in the process. I’ll address these subjects in follow-up articles. My goal is to help

give you the knowledge to make smart, cost-effective choices as you bring your product to market.