Beverage Operations and R&D: A ‘Healthy’ Partnership
Key Takeaways
- Major beverage companies are acquiring or launching healthy product lines to capitalize on consumer demand for better-for-you options.
- Scaling clean ingredients while managing costs and complexity remains a key challenge, with companies focusing on efficient, high-quality production methods.
- Digital transformation, including AI-driven planning, is set to improve demand forecasting, operational efficiency and overall supply chain responsiveness.
Whether manufactured by mega beverage companies or small ones, drinks that boast healthy attributes continue to gain traction with consumers. Enough that many processors are paying close attention to the segment, launching their own varieties or acquiring brands to meet demand.
PepsiCo acquired Poppi in May 2025, for example, and then also launched its own prebiotic colas earlier this year. Meanwhile, The Coca-Cola Co. reported significant success in its healthy options in its latest quarterly earnings report, launched forward by an uptick in volume sales for Coca-Cola Zero Sugar.
As the movement to participate in the better-for-you category continues to roll along, processors are finding it critical to maintain a culture of teamwork when it comes to producing new flavors, varieties and sizes at a fast enough pace to meet constantly changing consumer preferences.
Implementing and maintaining flexibility throughout the supply chain is critical, and Talking Rain Beverage Co. makes that approach a standard practice, explains Oscar Mayorquín, COO of the company.
“Using an agile stage gate process, teams collaborate to meet changing consumer needs and keep our brands relevant while maintaining our highest quality standards,” he says. “This approach allows for quick evaluation, iterative development and swift adaptation to market shifts.”
That swift adaptation has been evident through the product launch results Talking Rain has produced in the past two years. Mayorquin points to various launches by the company as evidence of the flexibility needed. Talking Rain launched Popwell, the company’s cold-crafted prebiotic soda, in early 2025. Additionally, its Sparkling Ice brand has been busy with new 6-packs, as well as collaborative new Starburst and Life Savers lines, and Cuties Mini Cans.
“Supporting ongoing innovation, including seasonal or limited-edition flavors like Sparkling Ice Life Savers Green Apple, requires an adaptable operational framework,” he says. “Adaptability is central to operations; proactive communication and planning ensure minimal disruption and continued excellence.”
This is just as critical for brands and businesses that work with co-manufacturers, as noted by Steve Beck, CEO of Blue Monkey Beverage (and recently acquired Local Weather). Blue Monkey keeps operations and product development fully integrated throughout the process.
“If you can’t scale it, you shouldn’t launch it,” Beck says. “Our advantage comes from building clean, great-tasting products designed from day one to work efficiently in production, allowing us to grow the portfolio without compromising quality.”
Scaling clean, high-quality ingredients and still managing supply chain complexity and cost, while operating in a co-manufacturing production model, stands as one of the biggest challenges for beverage companies like Blue Monkey. Beck says the future of beverages belongs to companies that can combine the integrity of their ingredients with the agility of manufacturing, and Blue Monkey continues to push that approach.
“We’re investing in smarter supply chains, strong manufacturing partnerships and better data to move faster, reduce complexity and deliver quality at scale,” he says. Talking Rain’s product reputation centers around that ingredient integrity, and Mayorquin says all the colors and flavors used for its products are derived from fruits, vegetables and botanicals. That includes the new varieties of Sparkling Ice Life Savers: Green Apple and the upcoming Blue Raspberry.
“These products mark important industry advancements, as, to our knowledge, there haven’t been any shelf-stable blue or green sparkling waters in clear bottles that don't use artificial dyes,” he adds. Even so, with new products, Talking Rain faces unpredictable demand, an increasing number of SKUs, rapid changes in consumer preferences, and rising costs due to inflation as challenges to forecasting and inventory control.
Moving forward, as Talking Rain turns 40 years old, it has begun its digital transformation process, which Mayorquin says has him most excited for what that ultimately means for the operations side. The beverage maker plans to leverage AI through an integrated business planning program, which will unify financial, commercial, supply chain and customer service functions.
“We are confident that these efforts will elevate the maturity of our operations, enable more accurate demand sensing and forecasting, and advance supply and materials planning, resulting in superior execution across manufacturing and logistics,” Mayorquin says.
About the Author
Andy Hanacek
Senior Editor
Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.