Launching

an RTD Beverage
So you want to launch an RTD: What do you need to know?

The ready-to-drink (RTD) market has grown significantly in recent years, largely due to global trends like
convenience, all-in-one nutrition, and the desire to lead a healthier life. When preparing for an RTD launch, as
with any product, there are a lot of variables to consider. As a starting point, you will need to ask yourself the
following questions: What kind of RTD do you want to make? What makes launching an RTD different? How
do you design an RTD? What should you look for in a co-manufacturer? What does a pilot trial look like? What
about stability and shelf life testing? What are the costs and concerns of the first production run? With so many
items on your checklist, here is a helpful breakdown from three RTD experts; Emily Ross, Account Manager-
Beverage, Agropur US Custom Solutions, David Shea, Director of Key Accounts, Agropur Natrel USA, and
Jennifer Roberts, M.F.S., Food Technologist, Agropur US Custom Solutions.

Marketing: How do you choose what kind of RTD to make?

There are a wide variety of RTD options including: dairy-based, vegan, coffee or tea-based, high protein, high
fiber, organic, non-GMO, neutral flavors vs. acidic flavors, and gluten free to name a few; so the type of RTD
you decide to launch predominantly depends on the goal of your company. Each category comes with its own set
of pros and cons. A positive attribute to formulating with dairy proteins, for example, is that there are years of
research behind what happens to them during processing, how long they remain stable, what they will taste like,
and how to ensure a successful product run. Products containing a dairy allergen, however, will not meet the
dietary needs of consumers affected by a dairy sensitivity or intolerance. Plant-based proteins, while eliminating
the dairy allergen, do not have the same kind of detailed research available. This alone can play a large role
in increasing risk; at least as far as product development is concerned. Working with a good research and
development team can help you understand all of the different options before you make a final decision.
A New Outlook: What is different about making an RTD?
Emily Ross
If you are working on your first RTD it is important to keep in Account Manager-Beverage
mind that you are entering a high risk industry, beginning with
initial capital investment. RTD’s have a large minimum order
quantity and while beverage powders may be able to be reworked
if an issue occurs, this is not often the case for an RTD. If the
RTD fails during processing or destabilizes a week after the
production run, it is highly unlikely anything can be salvaged,
making the run a total loss.

In addition, RTD beverages typically have an extended shelf

life ranging from six to 18 months, which makes shelf life
testing more complicated. Ultimately, if you choose to use UHT
processing, you are putting food on a shelf for a year while
removing the typical safeguards like low water activity and, in
some cases, pH. While this is possible, it will require a very
specific set of skills during formulation and testing to predict the
chemical process that will occur in this environment.
Formula Development: How do you design an RTD?
Before contacting potential co-manufacturers, you will want your
formula fully developed. Not all co-manufacturers offer product
formulation assistance or services so they will not be able to
provide pricing, lead times, or answer questions until they have
all of the product details. However, some vertically integrated
companies offer Innovation services for formula development
and co-manufacturing capabilities.
That said, the first step in developing an RTD is to formally
define your finished product; specifically, determining the macro
and micronutrient targets prior to formulation. At this point you
must also consider any necessary or desired certifications and
label claims. Does the beverage need to be certified Organic?
Vegan? Kosher? NSF Sport? Knowing the required certifications
before development begins lets the product formulator know
which ingredients are essential and which ingredients are off
limits.
Once your beverage has been defined, a “paper formula”
is created. This essentially means the food scientist will
use software to create a formula that matches your desired
specification. The formula may be developed from scratch or,
the ingredient declaration and Nutrition Facts Panel (NFP) of an
existing product may be used to reverse engineer a formula. The
“paper formula” will help determine the overall feasibility of the
project and the pricing; taking into consideration raw materials,
packaging costs, labor costs, and other potential fees.
Education background
University of Wisconsin – La Crosse B.S.
in Biochemistry and Microbiology
University of Wisconsin – MBA
(December 2018)
What is the funniest experience you’ve
had making beverages?
The first RTD I formulated by myself was
a chocolate milk base. At this point I did
not have a great understanding of how
flavors worked. I saw my coworker use
vanillin and it made the product taste
so much better and I thought “more is
always better!” The milk ended up being
so over-flavored peoples’ mouths went
numb and tingled for a portion of the day.
Why do you like working in the RTD
world?
I enjoy the balance of finding ways to
make trends and new ingredients work
in an RTD. There are always two sides
– using the ingredients you want while
making sure no undesired chemistry
is occurring. It’s so exciting to try new
things, learn new lessons, and help
our customers find solutions to new
problems.
2

David Shea
Director of Key Accounts
Education background
Western Michigan University B.S. in
Communication and Marketing
What is the funniest experience
you’ve had making beverages?
I had a customer come to visit our plant
in Grand Rapids. I laid out all of the
GMP garments for them to put on in
order to walk out onto the plant floor
to watch their beverage being made. I
left the room for a moment and when
I returned the customer had placed the
shoe cover over his head thinking it was
the hair net.
Why do you like working in the RTD
world?
I like working in the RTD world because
it is competitive and seems to be an
ever changing platform. Whether it be
in flavors, packaging, ingredients, etc.,
it is exciting to be a part of an industry
where finding the next big sought after
formula is always being worked on and
sometimes just one ingredient away
from being the next beverage “Big Hit”.
I’ve had great experiences with current
customers and potential customers
and appreciate the opportunities to
help them and learn from them. It is
very gratifying for me to form those
partnerships and find out how I can help
contribute to their path of success.
From here, the bench work begins. If the formula requires any
new or novel ingredients samples are requested and small batch
testing begins (about 500 mL). Using equipment in the lab
the formulator mimics the large-scale production as closely as
possible. Once the viscosity, flavor, and stability look good on a
small scale, pilot plant work begins.
Finding a Co-Manufacturer: What should you look for?
When deciding on a co-manufacturer for your RTD beverage
there are some critical items to consider. First off, look at the
packaging capabilities and the pros and cons of each. Look for
a co-manufacturer who is also willing to be a partner with an
understanding of your goals, who offers a clean plant, quality
output of product, and is SQF level three certified.
It is also important to consider trust and transparency with your
co-manufacturer. Everyone you work with (plant employees,
Innovation, Sales, etc.) should have a clear understanding of your
expectations and offer effective communication, even when the
news is not what you want to hear. Again, you may choose to look
at a company offering vertical integration who controls their own
supply chain.
Pilot Trials: What does a pilot trial look like?
A pilot plant can process batches of around 5 liters, 75-250
gallons, or up to around 3,000 gallons. These batches are
typically run through equipment capable of HTST, UHT, up or
downstream homogenization, and cooling coils. The pilot plant
process more closely mimics the plant to be used for the full scale
production run. Once the product is processed and bottled it can
be monitored and evaluated for flavor and/or stability issues.
Depending on the trial size and end goal, different measurements
including: total solids, pH, viscosity, and product consumption
are tested in pre-and post-processing. Typically products are
put on a 10 day micro hold before they can leave the production
facility. Products may also be held over the intended shelf life
and evaluated for any changes. If no significant changes or major
mishaps occur, the beverage trial may be deemed a success.
Stability and Shelf Life Testing: Why is it a big deal?
Shelf life testing is essential to know when a product will start to
deviate from its original and intended state. The end of a shelf life
is generally denoted by organoleptic reasons (how it tastes), not
microbial or food safety factors. Shelf life testing will look at
viscosity, pH, flavor, color, and stability over a given time. These
factors will indicate a wide range of considerations including
but not limited to: protein aggregation (gelling), particle
sedimentation (settling), microbial issues, loss of sweetness,
dull or undesired color changes, and product separation.
The First Production Run: What does 25,000 gallons really
look like?
You will need to provide clear specifications for finished goods
and precise directions for the blending of your product. A good
co-manufacturer will walk you through this process, offering
suggestions and will help you to understand the ‘norm’ for your
particular type of product.
It is a must to have a representative on site for the first
production run and, if possible, to have a contingency plan in
place if things don’t go according to plan (extra ingredients
for last minute changes, processing aids like anti-foam or pH
adjusters, etc.).
Having a pre-blend of dry ingredients, whenever possible,
can also be a great thing. Liquid processors are equipped to
handle dry weigh ups but if your formula contains a lot of
minor ingredients it becomes easier for errors or issues with
consistency to occur. Having a pre-blend of dry ingredients not
only reduces the risk for error but it can also make the run more
efficient and can save money.
We’ve touched on many topics and hopefully
helped you generate some additional thoughts and
ideas about launching your own RTD. Ultimately,
there is no one-size-fits-all approach to introducing
any kind of new and innovative product. With
RTD’s, production methods continue to shift; from
retort processing, to aseptic packaging, and now
high pressure processing, and beyond. As these
shifts occur innovators have room to discover
fresh ways to leverage the technology that results
in industry disruption. As you pursue your future
formulations and projects keep these elements in
mind and always remember, the Agropur team is
here to help.
Jen Roberts
Food Technologist
Education background
University of Wisconsin - Madison B.S.
in Food Science
Kansas State – M.S. in Food Science
What is the funniest experience you’ve
had making beverages?
While doing a blend validation we
sifted through hundreds of pounds of
cocoa powder with chocolate chips in
it to verify that the correct amount of
chips were being distributed equally
throughout the blend. After two days
of this, we were covered head-to-toe
in cocoa powder and when our eyes
watered, chocolate tears ran down our
faces!
Why do you like working in the RTD
world?
RTDs are fun because they can present
different challenges such as figuring out
beverage stability and prolonging shelf
life, using various maskers and flavors
to create a great tasting beverage, and
trying unique combinations of proteins/
carbs/fat to make a satisfying mouthfeel
- the possibilities in the RTD world are
endless!
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Agropur
At Agropur US, we are continuously investing in our world class facilities, quality and innovation
programs, and our people to provide an exceptional customer experience. All Agropur
US facilities are SQF certified and our customers can be confident in our rigorous quality
certification guidelines, customer service standard of excellence, industry relationships, market
insights, and sourcing and delivery processes. With five solutions providers available including:
Custom Solutions, Nutrition Solutions, Dairy Solutions, US Cheese, and Natrel USA, Agropur US
can partner with you every step of the way.

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