What Good Herb Soda’s international recognition reveals about the future of functional beverages

When two entrepreneurs in New Zealand decided to create cannabis-inspired beverages without the cannabis, they faced a challenge that’s stumping beverage makers worldwide: How do you deliver consistent functional effects while maintaining great taste?

Their solution recently earned them the NZ Inspire+ Artisan Award in the Craft THC Beverage category, and their journey offers valuable insights for anyone navigating the rapidly evolving functional beverage landscape.

The Functional Beverage Challenge

Arjun Bhargava and Arjun Narayanan launched Good Herb Soda in 2019 with a clear mission: create beverages that deliver specific experiences through botanical compounds. But like many beverage innovators, they quickly discovered that working with terpenes and other functional ingredients presents unique formulation challenges:

• Bitter or off-putting flavors from active compounds
• Stability issues in water-based systems
• Inconsistent effects between batches
• Complex regulatory requirements

These aren’t just startup problems. Major beverage brands entering the functional space face the same hurdles.

A Different Approach to Formulation

Good Herb Soda’s breakthrough came from partnering with a flavor supplier that specialized in beverage-specific terpene solutions. This collaboration resulted in two distinct products:

• UnWind: A fruity blend designed to promote relaxation
• InZone: An earthy ginger flavor formulated for focus

What set these beverages apart wasn’t just the flavor profiles, but the consistency of the experience they delivered.

“Our mission to create healthy non-alcoholic functional drinks that enhance consumers’ experience would not be possible without True Terpenes and the company’s commitment to safety and innovation.”

-Arjun Bhargava, Co-Founder of Good Herb Soda

What the Award Judges Recognized

The NZ Inspire+ Artisan Awards evaluate products across multiple criteria:

• Degree of innovation
• Taste profile
• Visual appeal
• Price point
• Shelf stability

Good Herb Soda’s success across all these categories highlights an important trend: consumers are looking for functional beverages that don’t compromise on taste or quality.

Key Learnings for Beverage Innovation

The Good Herb Soda story illustrates several important considerations for functional beverage development:

1. Water Solubility Matters

Traditional terpenes are oil-based, which creates obvious challenges in water-based beverages. Modern solutions use specialized emulsification techniques to create water-soluble versions that maintain clarity and stability without separation or “ringing” effects.

2. Addressing Taste Challenges

Many functional compounds, particularly those derived from hemp or cannabis, have inherently bitter flavors. Advanced formulation techniques now exist to mask these flavors without compromising the functional benefits.

3. The Importance of Standards

Good Herb Soda specifically chose to work with GMP/ISO/FSSC certified suppliers. This decision reflects a growing trend where beverage brands prioritize partners with pharmaceutical-level quality controls.

“True Terpenes has set the standard of excellence in their industry, which was integral to our decision in partnering with the company.”

-Arjun Narayanan, Co-Founder of Good Herb Soda

4. Scientific Validation

The functional beverage market is maturing beyond marketing claims. Brands that succeed are those backing their products with real research into bioavailability, onset times, and consistent effects delivery.

The Broader Market Context

Good Herb Soda’s success comes at an interesting time. The global hemp beverage market is projected to reach $117 billion by 2032, driven by consumers seeking alcohol alternatives and functional benefits. This growth is creating opportunities for brands willing to invest in proper formulation and quality.

Currently, Good Herb Soda is available throughout New Zealand at retailers like IE Produce in Auckland, demonstrating that well-formulated functional beverages can achieve mainstream distribution.

Looking Forward: Trends in Functional Beverages

The Good Herb Soda case study points to several emerging trends:

• Effects-based positioning: Beverages marketed for specific experiences (relaxation, focus, energy)
• Natural ingredients: Botanical-derived compounds over synthetic alternatives
• Sophisticated formulation: Investment in proper emulsification and flavor masking
• Quality certifications: Partnership with certified suppliers becoming standard

Conclusion

Good Herb Soda’s award-winning success demonstrates that the functional beverage market rewards innovation backed by science and quality. As more brands enter this space, those that prioritize proper formulation, consistent effects, and great taste will likely follow a similar path to recognition.

For beverage developers exploring functional ingredients, the key takeaway is clear: success requires more than adding terpenes to water. It demands thoughtful formulation, quality partnerships, and a commitment to delivering consistent consumer experiences.

True Terpenes specializes in beverage-grade terpene solutions and works with brands developing functional beverages. For more information about terpene applications in beverages, visit our technical resources section.

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