Who this is for
Beverage founders and established brands, private-label operators, co-packers, blenders and wholesalers building or improving a product line.
Start with a brief the supplier can use
Define the concept, flavor profile, base, price target and certification requirements before development starts. A useful brief gives a supplier enough information to identify constraints and propose a relevant first sample.
Price should follow the intended channel and required margin. The formula that tastes right in a sample still has to fit the cost structure and the production format.
- Define the buyer and the role of the product in the portfolio.
- Rank the dominant flavor notes and identify the base.
- Set a commercial cost target for the intended channel.
- Document certification and ingredient restrictions upfront.
Select the co-packer on capability and fit
Some partners formulate from their own ingredient portfolios. Others provide production and packaging while the brand supplies the ingredients. Clarify the operating model before comparing proposals.
BDH evaluates whether the partner can produce the required format, document its specifications, support the order size and work within appropriate commercial terms. Minimum orders need to fit realistic sell-through, not an optimistic launch forecast.
- Production format, volume and geographic fit.
- Specifications, tolerances and documentation.
- Minimum-order quantities and inventory exposure.
- Development fees, revision rounds and payment terms.
Manage samples through an approval process
Keep a record of each sample, tasting observation and decision. Feedback should tell the developer what to change and what to preserve. A locked specification is the handoff from development to repeatable production.
Agree what is included at approval: the specification sheet, applicable testing and the certification documentation. Clarify formula ownership and access in the commercial agreement before the first development round.
Experience across the supply chain
Billy Dietz spent nine years in research and development at DAVIDsTEA. BDH’s work also includes product-line development, co-packer matching, replacement sourcing and strengthening the R&D capability of supply-side businesses.
In one published BDH engagement, a product line built for third-party distribution came in more than 15% under budget and in under four months. That is one engagement’s result; scope, timing and economics are assessed for each new project.
Agree the work before committing to development
The first conversation establishes the product stage, intended channel, format, volume and the constraint that needs resolving. The Operator’s Gap Review is a fixed-price diagnostic with a working session and written findings over two weeks. A development engagement is scoped separately around the product and supplier requirements.
Frequently asked questions
Who is beverage product development for?
BDH works with beverage founders and established brands, private-label operators, co-packers, blenders and wholesalers that are building or improving a product line.
What does BDH help with during beverage product development?
BDH helps develop product lines and match them to co-packers suited to the required volume, format and geography. The work connects formulation, suppliers, production format and economics so the concept can become a commercial product.
What should a beverage product development brief include?
A useful brief defines the concept, buyer, role in the portfolio, flavor profile, base, intended channel, commercial cost target, certification requirements and ingredient restrictions. It should rank the dominant flavor notes and document constraints before development begins.
How should a co-packer be selected?
A co-packer should be evaluated for capability and fit, including production format, volume, geography, specifications, documentation, order size and commercial terms. The operating model should also be clear: some partners formulate from their own ingredient portfolios, while others produce and package ingredients supplied by the brand. Minimum orders should fit realistic sell-through.
How are samples managed through approval?
Record each sample, tasting observation and decision, with feedback that identifies what to change and what to preserve. Approval should establish a locked specification and clarify the included specification sheet, testing and certification documentation. Formula ownership and access should be agreed before the first development round.
What product development experience does BDH bring?
Billy Dietz spent nine years in research and development at DAVIDsTEA. BDH’s work includes product-line development, co-packer matching, replacement sourcing and strengthening the R&D capability of supply-side businesses. In one published engagement, a product line for third-party distribution came in more than 15% under budget and in under four months; each new project’s scope, timing and economics are assessed separately.
How do we start a beverage product development engagement?
The first conversation establishes the product stage, intended channel, format, volume and the constraint to resolve. The Operator’s Gap Review is a fixed-price diagnostic with a working session and written findings over two weeks, while a development engagement is scoped separately. Share the format, stage, channel, expected order volume and any fixed deadline or supplier constraint.
The principals do the work
Learn about Billy Dietz’s sourcing and product-development experience and Don Ho’s operations and diligence background.
Related frameworks
Start with the operating question
Share the beverage format, development stage, intended channel and expected order volume. Include any fixed deadline or supplier constraint.
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