Who owns your beverage formula? Custom development vs. a formula library

CraftCo offers two formula paths

CraftCo can develop a formula for the client to own. Alternatively, a client may use a pre-approved formula from CraftCo’s library, with CraftCo retaining ownership. The right starting point depends on your product direction and the scope you agree with the team.

Make the distinction explicit before sample work or production planning begins. Your brand appearing on the package does not, by itself, establish ownership of the formula inside it.

Custom development: define the work and deliverables

A custom project may begin with an idea, flavor direction, or recipe needing refinement. Discuss the audience, category, package direction, and target product characteristics. Then define the sample work, sourcing responsibilities, approvals, and deliverables included in the engagement.

CraftCo’s client-owned development path should be documented in the project agreement. Ask what formula information and supporting materials will be provided, when the handoff happens, and how later changes will be handled. Do not assume those details from the word “custom” alone.

Library formulas: understand what you are using

A pre-approved library formula gives the project an existing formula to discuss rather than assuming every engagement begins from a blank page. CraftCo retains ownership of these formulas. A library route should not be assumed to include exclusivity, transfer rights, or permission to produce elsewhere.

Availability, fit, and permitted use need to be confirmed for your project. Pre-approved also does not mean every package, processing approach, label, or sales plan is automatically approved. Review production readiness and necessary product requirements separately.

Ask these questions before choosing a path

Ownership is one part of the brief. A clear agreement also identifies what is being developed, what you receive, and which decisions remain open. These questions help the team discuss the commercial scope without guessing at the terms.

• Is this client-owned custom development or a CraftCo-owned library formula?
• What development, samples, and documentation are included?
• How are modifications and future versions handled?
• What permitted-use or exclusivity terms, if any, apply?
• Which ingredients and packaging must be procured, and by whom?
• What specifications, testing, and approvals remain before production?

Keep formula choice connected to manufacturing

A formula and package should be reviewed together. Carbonation, liquid characteristics, filling compatibility, and shelf-life needs can affect production fit. A sample that meets your flavor direction still needs an agreed path to a commercial run.

If you want an organic product, raise that goal during development and sourcing discussions. CraftCo’s Holland facility is certified organic through Oregon Tilth, but individual client products require their own organic approval. A facility certificate is not a substitute for that product review.

Start with your product direction

Bring the category, flavor idea, intended audience, formula stage, and packaging direction. Tell us whether client ownership is a priority or whether you want to explore the library route. The first conversation can establish which questions need answering before development is scoped.

This guide describes CraftCo’s two available approaches. Your project agreement establishes the specific deliverables and terms; it should be reviewed before work begins.