Functional beverages are leveling up with multiple benefits, unique branding and better on-the-go capabilities, according to drink manufacturers showcasing at the 2025 Private Label Trade Show this week in Rosemont, Ill.
Drink manufacturers said private-label is following the same trends as the overall market, emphasizing beverages with low sugar, electrolytes, probiotics and more.
Several of the drink makers noted that they started out as beverage makers and continue to manufacture and promote their own brands, but they grew their business by pivoting to become consultants to others entering the market.
FedUp Foods layers multiple benefits in one beverage
FedUp Foods started out in the Kombucha business in 2008, according to Andreas Schneider, co-founder and VP of sales, who noted the company released its first cold brew coffee at the show.
In addition to building its own brands, FedUp works with startups and retailers to bring their own products to market, Schneider said.
“We wanted to figure out how to produce high-quality, functionally dense beverages and then work with retailers to get them to the market in the most affordable and accessible way possible,” he said.
Ravi Jhala, VP of commercialization at FedUp, said the company uses the foundation of an organic, fermented, live and active base for its probiotic drinks and then builds other functional aspects of the beverages on top.
“That’s what differentiates us,” he said, adding that there’s only so much space in the stomach for functional benefits. “It’s important that you try to get multiple benefits from the same beverage.”
FrshBev guides market to better-for-you
FrshBev similarly started out as an entrepreneurial drink operation, with its Kimchi-derived probiotic line of Tulua drinks, according to Zeyad Moussa, founder and COO.
Now the company works with independent drink makers and retailers developing their own private-label brands.
Moussa said he launched his own manufacturing business and as the company grew, he realized his operation has excess line capacity that could be used by a similar operation.
“We were able to leverage that experience on the contract manufacturing side and help guide folks in the space as well, offering products that are uniquely positioned for the market,” he said.
FrshBev specializes in companies that offer better-for-you, clean label and clean ingredient products, he said.
“Retailers are recognizing that their in-house brand is gaining brand equity with customers, and they’re developing trust behind the label, and so they are treating their in-house brands as they would any other brand, and looking to bring product innovation,” he said.
HTT Packaging and Design promotes portable drink mixes
Ready-to-drink beverages aren’t the only ones getting in the private-label business. HTT Packaging and Design specializes in single-serve drink mix packs.
“The focus we see right now in the market is on nutraceuticals, energy drinks, dietary supplements, workout, pre-workout, post-workout – all kinds of new ideas customers bring us for their own products and formulations,” said Chris McDivit, HTT Packaging and Design vice president.
He said the company not only helps guide companies looking to develop new products, it also helps formulate the products in some cases.
McDivit said consumers increasingly seek single-serve packets for drink mixes rather than scooping mixes out of a bag or canister.
“Now, with people’s active lifestyles and going out to the gym and traveling, the single-serve portion has become more cost effective,” he said. “The mixing and dosage capabilities have come down in price, so we’re able to produce these for smaller companies, so it’s not just a giant behemoth who can afford to do single-serve products.”
