How to Start a Functional Beverage Brand: Mushroom Coffee, Matcha, Lattes

Why functional beverages appeal

A functional beverage does not ask consumers to change their habits: it replaces their morning coffee, tea or hot chocolate. That explains the success of mushroom coffee, matcha lattes and botanical lattes. For a brand, it is a product with a strong identity, suited to a lifestyle universe and daily use, which means regular reorders. The category is still young in Europe: there is room for brands that get taste, ingredient transparency and regulatory compliance right at the same time.

We explore these trends in mushroom coffee: lion's mane, reishi, cordyceps and the functional latte and matcha market.

Beverage families to launch

Building a ritual brand

Functional beverages are bought for the moment they create as much as for their ingredients. Successful brands design the whole ritual: when the drink is taken (morning, afternoon break, evening), how it is prepared (hot water, plant milk, frother), what it replaces (coffee, tea, a sugary snack) and how it looks in the cup. These choices shape the formula: solubility in hot or cold liquids, sweetness level, caffeine content and foam. Defining the ritual before the formula avoids costly reformulations and gives your marketing a clear story to tell.

Choosing the format

Resealable doypacks and tubs are the everyday formats: consumers scoop their cup each morning, and a larger pack rewards loyal customers. Single-serve stick packs enable discovery sets, travel formats and samples. The same formula can be packed in both formats at our site, so you can start with one and add the other later.

Formula choices

• The base: type of coffee, matcha grade, plant milk powder, cocoa; it carries most of the taste.
• The extracts: mushroom species, extraction ratio, botanicals; their quality and origin set you apart.
• Taste and texture: bitterness of extracts, solubility, foam; a functional drink must taste good first.
• Caffeine: controlled content, mandatory statements where applicable, decaf versions possible.
• Added vitamins: they unlock authorized claims, such as "vitamin B12 contributes to the reduction of tiredness and fatigue".

What to check on the regulatory side

This is the product type where regulations demand the most attention:

• Novel Food: each mushroom species and each part used (fruiting body or mycelium) must have a history of consumption in the EU or an authorization under Regulation (EU) 2015/2283.
• Product status: depending on composition and presentation, the drink is a food supplement or a regular food; in France, a supplement is notified to the DGCCRF on the Compl'Alim platform, which replaced Teleicare.
• Claims: no health claim is currently authorized for functional mushrooms, and botanical claims are still pending EU evaluation. Promises like "brain booster" are off limits, on the pack as well as on social media, websites and influencer content.
• Labeling: ingredient list, allergens, caffeine statements where applicable, supplement particulars if that status applies. For the US, labeling follows FDA rules.

Our regulatory support team checks every ingredient before the first batch is made.

Concrete steps to launch your beverage

• 1. The brief: target drink, consumption moment, audience, sales channel, brand universe.
• 2. Ingredient selection: base, extracts, Novel Food and specification checks.
• 3. Flavor trials: extract dosage, sweetness, texture and foam, prepared with water and milk.
• 4. Status and label: regulatory status, mandatory particulars, possible claims.
• 5. Placing on the market: notification to the DGCCRF if the product is a food supplement.
• 6. Production and logistics: blending, packing, testing, storage or shipping.

Mistakes to avoid

• Promising unauthorized effects: "focus", "anti-stress" or "immunity" linked to mushrooms are not authorized claims in the EU.
• Choosing an extract without checking its status: an unauthorized species or part blocks market access.
• Sacrificing taste: a daily drink that does not taste good is not reordered.
• Ignoring moisture: coffee and plant milk powders are sensitive to it; packaging must be suitable.

What the manufacturer handles, what the brand handles

• Irati Production: sourcing of extracts and base, Novel Food checks, formulation and flavor trials, blending, packing into doypacks, tubs or stick packs, quality control.
• Your brand: universe and design, label sign-off, placing on the market, communication.
• Optional: storage in Allonnes and direct shipping to your end customers.

Why make your beverage in France

Functional beverages run on trust: consumers want to know where the extracts come from and how the product is tested. Manufacturing in France, at an ISO 22000 and HACCP certified, FDA-registered site, lets you document every batch, answer your distributors' questions and showcase a clear origin. It also makes recipe adjustments between batches easier, in direct dialogue with the formulation team.

Start with a standard formula

Small batches are available on our standard white label functional beverage formulas: test a mushroom coffee or a matcha latte with your community, then expand the range with a second flavor, a caffeine-free version or a discovery box of stick packs. Customer feedback on taste and preparation is the best guide for your next product, and a small first run lets you act on it quickly. For a custom formula, the minimum depends on the development.

Explore our functional drinks manufacturer page and the full method in our guide on how to start your own supplement brand.