How to successfully negotiate with drinks manufacturer

Every company involved in beverage development knows the key elements that are required to get a good deal when negotiating with beverage manufacturing companies. These elements require careful preparation and knowledge in order to be useful in negotiation. In this article we will try to cover the basics in what you should know when contacting and negotiating with manufacturers.

First you need the idea of what your drink will be, how it will look like, what purpose it will serve. It is crucial to visualise your drink in various consumption situations and adapt it and its attributes to match the specific situation. For example if you want to produce a sports drink it is important to consider various bottling solutions for the more convenient use during sport activities. When you envision the concept of the drink you will need to consult beverages developers about the formula of the drink. There are many variables in drinks formula, and the slight difference and adjustment of one of them will greatly impact your drinks taste, price, and validity. It is advised that your formula gets tested in the laboratories so that no health issues arise for your clients. Also it may be required to get the necessary certification in your country.

All previously mentioned aspects rest on your financial strengths. You have to value your capabilities very carefully. The overoptimistic evaluation of your financial capabilities may result in the total fiasco of your new product before it even got released. To do this properly it is required to do a full project financial analysis. This takes time and needs careful calculations to evaluate the real costs. Furthermore it may be hard to correctly evaluate all the cost factors of the beverage manufacturing when doing this for the first time, therefore we recommend consulting with beverage development agencies which have the required know-how.

Other important activities when developing drinks and preparing for the negotiations with manufacturers is the knowledge about the bottling and labelling processes. You will have to determine how your drink has to be bottled. So the list of the bottle or/and cans manufacturers will be needed. Your chosen bottling solution has to fit the capabilities of the manufacturer to fill such bottles. It is important to take logistics into account. Furthermore you need to know how your drink will be labelled. In most situations direct print at manufacturer is available only when placing high quantity order or it will be very expensive. Therefore you will need to have the designer which will design our label, the manufacturer of label and also the labeller.

Furthermore you have to determine the demand for your drink in the market. It is important that the manufacturer is able to produce the required quantity of your beverages at the right time. All of the manufacturers have minimum order quantity which is different in every factory. Also while some manufacturers will offer storage of your drinks after manufacturing, in some cases you will need to arrange warehouses to store your drink.

It is important to have a big list of manufacturers to be able to compare their prices and the manufacturing capacities. However you have to take into account the other services the factory may provide you. Sometimes a more expensive drink manufacturing may result in the cheaper overall drink cost because the manufacturer offers additional services such as storage, labelling and you do not need to spend money on it and you also save on logistics.

For more information about beverage development please contact MyDrink Consulting

Author - Adomas Pranevičius

Adomas Pranevicius is the co-founder and CEO of MyDrink Beverages, a premier supplier of functional ingredient solutions to beverage industry . Adomas specializes in beverage concept development, start-up beverage projects, business development and brand building. During his career he co-founded NapNock energy shot, Dragoon vitamin drink, HighVit functional vitamin drinks and Simply Umai beauty drink. He enjoys developing new beverage concepts and generating marketing ideas for them. Currently he is focusing on international expansion of MyDrink Beverages. Adomas is also writing a blog about latest beverage trends and innovations. His insights and ideas have been quoted in, Soft Drinks International, Beverage World and other media sources.