Functional beverages continue to surge, but as the experts from formulator dsm-firmenich emphasized at BevNET Live, long-term winners depend on far more than ingredient trends. The conversation outlined the strategic and technical decisions that separate fleeting hype from scalable brands.
A trend isn’t a strategy
Natalie Taak, Director of Beverage Marketing, opened with a blunt truth: a compelling story doesn’t guarantee a viable product. A brand can ride a trend only if it finds a distinctive angle within it. Poppi’s early success was offered as an example of doing this well: finding whitespace inside a macro movement rather than simply following it.
Hype vs. commercial viability
For William McCormack, Business Development Manager, evaluating a product starts with technical and economic feasibility. Is the functional ingredient system affordable and stable? Is the minimally effective dose actually being delivered? With consumers “increasingly carrying AI in their pockets,” he noted, credibility erodes quickly if claims aren’t backed by sound formulation.
What makes a product “sticky”?
Viewing development through a marketing lens, Taak argued that traction depends on three elements:
- Pain point: are you clearly communicating how you solve a real need?
- Product: taste can no longer be traded off for functionality. The old belief that “bad taste equals benefits” is dead.
- Process: founders often overlook this, but early alignment with manufacturing partners is essential for maintaining momentum.
Technical reality checks
At dsm-firmenich’s Anaheim facility, Nicole Wong, Senior Manager of Beverage Product Development, sees many early-stage brands underestimate the importance of format and process decisions. Functionality often dictates whether a powder stick pack or a liquid format is appropriate. Delaying this decision can force an entire restart.
Navigating the claims landscape
With supermarket shelves overflowing with functional promises, Cam Parris, Health Benefits Solutions Manager, cautioned founders to be intentional. Why add cost to a product unless a front-of-pack claim is clear and compelling? Conservative claims like “supports immunity” are simpler; bolder ones like “supports mood” require deeper clinical support. Everything must be GRAS-approved and backed by credible science: both for consumer trust and regulatory safety.
He pushed founders to think strategically: “The now is energy, hydration. What’s next? Where do you want to shoot in the supermarket? There’s crowding but there’s also opportunity.”
Playability and taste science
Srini Subramanian, Director of Taste Development, underscored a foundational rule: “This is not medicine. It’s a beverage. Playability is essential.”
Advances in taste modulation today allow teams to design ingredients that influence sweetness, umami, or bitterness. He recommended evaluating:
- Sweetness level based on target audience (Gen Z prefers less sweetness; GLP-1 users form a new segment with evolving needs).
- Natural vs. artificial: the cost savings of artificial sweeteners are real but must fit the brand.
- Global compliance: for brands with international ambitions.
Delivering benefits without sacrificing taste
Consumers want functionality without off-notes, and Wong explained how teams achieve this:
- Flavor pairing to complement bitterness or astringency
- Attention to texture and mouthfeel, especially with sugar reduction
- Visual cues such as color, since “people drink first with their eyes”
- Strategic masking of off-notes from active ingredients
Taak added that flavors also carry perceived functional benefits (lavender for calming, dragonfruit for energy, etc.). These reinforce positioning when used appropriately.
The takeaway
Discipline is the throughline here. Winning functional beverages are built through hard, early decisions. Trend awareness matters, but execution decides viability. That means choosing the right format, delivering a meaningful dose, substantiating claims, and engineering taste that drives repeat purchase.
In a category crowded with promises, investability comes down to durability. Can the product withstand scrutiny from regulators, retailers, and increasingly informed consumers? Function may attract attention. Rigor determines whether a brand lasts.
