9 min read

How to Start a Beverage Company

Quick answer

How to start a beverage company begins with one question: what kind of drink is it? That decides the rulebook. A drink with juice brings FDA's juice HACCP rule (21 CFR 120). A low-acid drink heat-treated to sit on a shelf in a sealed can or bottle brings FDA's canning registration and process filing. A drink sold as a dietary supplement follows supplement rules, and a kombucha that reaches 0.5% alcohol becomes a TTB matter. Then register your facility with FDA, check your state's licensing, and print a label with Nutrition Facts, net contents in fluid ounces and, where juice is involved, the percent juice.

How to start a beverage company: a pH meter, a test batch of iced tea and a row of labeled 16 fl oz bottles on a production table
Recipe, process, paperwork, then the bottle
01

Which rulebook your drink falls under

Your drinkExtra federal rulesPanel
Contains fruit or vegetable juiceJuice HACCP plan, 21 CFR 120Nutrition Facts
Low-acid (pH above 4.6), heat-treated and sealed to be shelf-stableCanning registration and process filing, 21 CFR 108.35 and 113Nutrition Facts
Low-acid ingredients brought to pH 4.6 or below with acid, not carbonated and not kept coldAcidified food rules, 21 CFR 108.25 and 114Nutrition Facts
Sold in measured doses to supplement the dietDietary supplement rules, 21 CFR 111Supplement Facts
Kombucha that hits 0.5% alcohol by volume at any stageTTB rulesTTB labeling and the alcohol health warning
Every drink sold as a food, including the juice, low-acid and acidified ones aboveFood cGMP, 21 CFR 117, and FDA facility registrationNutrition Facts
21 CFR 113.3(n) · 114.3(d)Low-acid foods means any foods, other than alcoholic beverages, with a finished equilibrium pH greater than 4.6 and a water activity (aw) greater than 0.85.
02

Drinks with juice: the HACCP rule

The juice rule is wider than most founders expect. It covers juice used as an ingredient in a beverage, not only bottles of straight juice. So pressing your own lemons for a bottled lemonade or tea brings part 120 with it.

21 CFR 120.1(a)Any juice sold as such or used as an ingredient in beverages shall be processed in accordance with the requirements of this part.
  • A written hazard analysis, and a HACCP plan for each location and each type of juice when a hazard is reasonably likely
  • A process that cuts the most resistant harmful microorganism by at least 5 log (100,000-fold), for the whole shelf life
  • Treatment applied to the juice itself; only citrus processors may treat the fruit surface instead
  • Treatment and final packaging in one facility operating under cGMP
  • Sanitation procedures, records, and a trained person to write and review the plan; that person does not have to be your employee

A juice bar that only sells to its own customers is a retail establishment and sits outside part 120. The moment you also sell bottles to cafes or stores, you are a processor.

21 CFR 120.3(j), (l) · 120.6 · 120.7 · 120.8 · 120.13 · 120.24Retail establishment is an operation that provides juice directly to the consumers and does not include an establishment that sells or distributes juice to other business entities as well as directly to consumers.
Juice Label Requirements →
03

Shelf-stable cans and bottles

Want your drink on an unrefrigerated shelf? Then the pH decides the paperwork. A low-acid drink that is heat-treated in a hermetically sealed container is a low-acid canned food in FDA terms. Its processor has 10 days from the first production run to register on Form FDA 2541. A scheduled process for every product and container size follows, no later than 60 days after registration and always before a new product is packed.

Juice processors already under part 113 or part 114, or that use one thermal step that makes the juice shelf-stable, are exempt from the separate 5-log rule, as long as the thermal process is in their hazard analysis. The scheduled process must be set by qualified people with expert knowledge of thermal processing, usually called a process authority.

21 CFR 108.35(c)(1), (c)(2) · 113.3(j) · 113.83 · 120.24(a)(1), (a)(2)Hermetically sealed container means a container that is designed and intended to be secure against the entry of microorganisms and thereby to maintain the commercial sterility of its contents after processing.
Process Authority →
04

Beverage or liquid supplement: decide before you design

Wellness shots, vitamin waters and powdered drink mixes can be either a food or a dietary supplement. The choice changes your panel, your allowed ingredients and your claims, so make it before the label artwork. FDA's guidance on liquid supplements adds some points that catch founders out:

  • Powders and liquid concentrates you stir into water can be dietary supplements, as long as they are not presented as a beverage or an alternative to one
  • A powdered lemonade mix stays a food, because lemonade is a beverage
  • Adding a botanical to a familiar drink does not turn it into a supplement: FDA's examples are ginkgo in a powdered drink mix or in non-alcoholic eggnog
  • Lawful in a capsule does not mean lawful in a soda: every substance added to a beverage needs GRAS status for that use, an additive approval or another exception
  • The supplement disclaimer does not belong on a beverage label
FDA guidance: Distinguishing Liquid Dietary Supplements from Beverages, sections III.B to III.EIn addition, a product labeled as a powdered lemonade mix would be considered to be a conventional food because lemonade is a beverage.
Beverage Labeling Requirements →
05

When alcohol enters the picture

Fermented drinks need a close eye. TTB treats kombucha as an alcohol beverage once it hits 0.5% alcohol by volume, whether that happens in the tank, at bottling or later in the bottle. That means production on TTB-qualified premises, TTB labeling, tax rules and the alcohol health warning. Below that line at every stage, FDA rules apply.

TTB: KombuchaTTB regulations on alcohol beverages DO APPLY to any kombucha that has less than 0.5% alcohol by volume when bottled BUT the alcohol content increases to 0.5% or more alcohol by volume at any point afterwards as a result of continued fermentation in the bottle.
Kombucha Label Requirements →
06

Your facility, registration and state licenses

  • Register the bottling facility with FDA before production starts, and renew every other year. Get a DUNS number first
  • Make every batch under food cGMP, 21 CFR 117
  • Keep records of where each ingredient came from and where each case went
  • Ask your state health or agriculture department about a food processor license, and your city about a business license
Food Processor License →

Starting from home? Cottage food laws differ a lot on drinks. New York, Connecticut and Mississippi list beverages among the foods you cannot sell from a home kitchen. Idaho's law goes the other way and includes drinks like coffee, lemonade, tea and soda. Georgia's definition of a cottage food item names nonalcoholic beverages. Check your state before you bottle anything:

FDA: How to Start a Food Business · 21 CFR 1.230(a), (b) · 21 CFR 117Facilities that manufacture, process, pack, or hold food that is intended for human or animal consumption in the United States must register with FDA before beginning these activities.
07

Example: honey lemon iced tea, 16 fl oz bottle

Ingredients: Brewed tea (water, tea), honey, lemon juice.

  • Sweetened tea has a reference amount of 12 fl oz (360 mL). A 16 fl oz bottle holds less than twice that, so the whole bottle is one serving: "1 bottle (473mL)"
  • Honey counts as added sugar here: 24 g, which is 48% of the Daily Value
  • The ingredient list names lemon juice, so the label needs a percent juice statement. Percent juice is counted against the whole drink: 1/2 cup (about 120 mL) of lemon juice in a finished batch of about 4,200 mL (tea plus honey plus juice) is 2.8%, declared as "Contains 2% lemon juice", a whole number not above the real figure
  • If you squeeze those lemons yourself, the juice falls under the juice HACCP rule
  • "16 FL OZ (473 mL)" as the net contents, placed in the lower 30% of the front panel
  • Tea, honey and lemon juice contain none of the 9 major allergens, so there is no Contains line
21 CFR 101.30(a), (b)(1), (j)For example, a soft drink (soda) that does not represent or suggest by its physical characteristics, name, labeling, ingredient statement, or advertising that it contains fruit or vegetable juice does not purport to contain juice and therefore does not require a percent juice declaration.
21 CFR 101.12(b) Table 2 · 101.9(b)(6)A product that is packaged and sold individually that contains less than 200 percent of the applicable reference amount must be considered to be a single-serving container, and the entire content of the product must be labeled as one serving.
Nutrition Facts
1 serving per container
Serving size1 bottle (473mL)
Amount per serving
Calories90
% Daily Value*
Total Fat 0g0%
Saturated Fat 0g0%
Trans Fat 0g
Cholesterol 0mg0%
Sodium 15mg1%
Total Carbohydrate 26g9%
Dietary Fiber 0g0%
Total Sugars 24g
Includes 24g Added Sugars48%
Protein 0g
Vitamin D 0mcg0%
Calcium 0mg0%
Iron 0.2mg0%
Potassium 190mg4%
*The % Daily Value (DV) tells you how much a nutrient in a serving of food contributes to a daily diet. 2,000 calories a day is used for general nutrition advice.
Example: honey lemon iced tea, 16 fl oz bottle
08

Make the label for your first run

Enter your batch in our label maker, tick Liquid, and set the serving as a volume or as one bottle with its mL. You get Nutrition Facts with FDA rounding, the serving in mL, the ingredient list in order by weight and the allergen statement. Need Supplement Facts for a shot instead? That mode is built in.

  • Juice, tea, coffee, milk, plant milks, coconut water and sweeteners are in our USDA-matched library
  • Using a flavor, an extract or a bought-in syrup? Copy the values off the supplier's panel by hand, or upload a photo and check what we read
  • PDF at actual size and print sheets for Avery labels, for a test run before you order printed rolls
  • A calculation report that shows the co-packer or store buyer where each number came from
Make your beverage label →
09

Beverage company launch checklist

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Questions

Questions

Usually yes, from your state or local health or agriculture department, plus a city or county business license. FDA does not issue a license, but a bottling facility registers with FDA before it starts production.

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