Oatly, a super cool oat milk brand, was considered an innovation when launched in the US in 2016. But in reality, the brand had existed since 1990 in Sweden. To navigate this global path, the company used important strategies, such as co-manufacturing. And today, that’s our topic: how to find the ideal beverage co-manufacturer in the market that will enable the expansion of your brand’s presence.
Co-manufacturing on the path to success
To enter the United States market, ensuring quality and becoming competitive, it was crucial for Oatly to have partnerships with beverage co-manufacturers while also investing in their own factories. Partnerships in the US were essential, especially in having aseptic packaging capabilities (shelf-stable), indispensable for storing and distributing oat milk.
Oatly faced some challenges on this journey, such as scaling production to meet public needs (and, I must say, in this market, it must be done quickly); consistently ensuring product quality — being a different, plant-based product, ensuring the same texture in all manufacturing units is a huge challenge; and ensuring brand integrity in relation to sustainability, as it is part of the brand’s premise in production and supply.
The perfect beverage co-manufacturer
In this market, quality, scalability, and sustainability are checkpoints for a successful launch: the taste, texture, and overall quality of a beverage define the position it will reach in the market. A good co-manufacturing partner will provide quality control measures, ensuring consistency in production. A failure at this stage can tarnish the entire reputation and consumer trust.
While demand is fluctuating and uncertain, especially for hyped or seasonal beverages, ensuring scalability is essential. A co-manufacturing partner will quickly increase your production, bringing your product to market efficiently.Agility ensures a difference in time-to-market, by gaining more time and space on the shelves. In the same logic, there is cost efficiency, helping to reallocate financial resources to marketing and good branding, for example.
Using co-manufacturing can also elevate your brand’s expertise in innovation. If you find a partnership with the right capabilities and experience in delivering new formats and ingredient substitutions, your brand will go further and even into new market paths.
Sustainability is also a crucial factor in the beverage industry. In 2021, the sector was responsible for emitting approximately 1.5 billion tons of CO₂ equivalent — about 3.8% of global emissions. To meet the 2030 and 2050 targets, the industry needs to accelerate its reduction rate by up to 11 times. Beyond compliance issues, consumer habits are becoming more sustainable: 49% of global consumers consider sustainability when making their purchases.
By finding a beverage co-manufacturer that prioritizes sustainability — with waste reduction, use of renewable energy, and responsible sourcing — your brand will be more aligned with demand. Additionally, if your brand operates in different regions, having a partner experienced in sustainable production makes it easier to comply with local environmental standards.
Self-knowledge is everything. Even in the CPG industry!
Now that we understand why it’s important to find a co-manufacturing partner, let’s focus on your brand. Self-knowledge is fundamental to understanding your goals and needs. Start by defining your non-negotiable specificities:formula, ideal characteristics, volume, and storage requirements.
Next, consider your scalability and flexibilities in your process. Being overly rigid can limit your options, which can hinder growth. For example, consider packaging alternatives — this already demonstrates flexibility when looking for a partner.
Finally, identify the certifications that meet regulatory and safety requirements, such as SQF and BRCGS. These certifications are crucial to ensure the quality and compliance of your product.
Know everything about your future beverage co-manufacturer
After self-analysis, it’s essential to understand the key points to consider when choosing a beverage co-manufacturing partner. When evaluating a potential partner, analyze:
Expertise in your product category: Just as a square block doesn’t fit into a triangle, your co-manufacturing partner should have specific experience in your category, whether it’s carbonated beverages, functional drinks, or alcoholic beverages.
Investigate the equipment, facilities, and factories. Check if the potential partner has bottling, canning, and aseptic processing capabilities. Define together the logistics of manufacturing, transport, and distribution at points of sale.
Don’t forget to evaluate waste management practices, water use, and sustainable packaging options.
The evaluations don’t stop there. In RFPs (Requests for Proposal), be thorough: request details on delivery times, minimum production batch sizes, and flexibilities. Visit the facilities and carefully examine quality standards. After all, you’re entrusting the future of your product to this partner, so it’s crucial to be sure of your choices.
Additionally, seek industry references and reviews about the potential partner. Request initial production tests to assess the co-manufacturer’s ability to meet established quality standards and schedules.
Count on GrowinCo. in the search for the perfect partner
For Oatly, the results of co-manufacturing were excellent: partnerships boosted demand and avoided shortages, ensuring presence on shelves. The company expanded its product line, including an oat milk for baristas that became a success in the coffee industry. This allowed them to experiment and launch innovative products without large investments. As a result, they built a brand based on consumer trust and loyalty, who don’t worry about where or when they buy the products, as they know the quality will be consistent.
Finding a good co-manufacturing partner may seem challenging, but the benefits outweigh the efforts, bringing greater resilience to your supply chain. In this process, GrowinCo. is here to make it more efficient and agile.
With us, you have access to a specialized team that understands the complexity of the beverage industry and the nuances of the CPG market. Our platform works side by side with you to find the beverage co-manufacturer that best meets your needs, from quality criteria to sustainability commitments.
Our experience in the CPG market allows us to quickly identify ideal partners for your product development. With GrowinCo., you’ll receive full support at every step — from defining your specifications and criteria to the RFP process and contract negotiation.
Our goal is to ensure that you have a reliable partner that allows your brand to grow with agility and efficiency, without compromising product quality and integrity. With GrowinCo. by your side, you can focus on what you do best: innovating and expanding your market presence.
Count on us to make this journey easier and more strategic!
