Extracts vs. Essences: What Every Beverage Formulator Needs to Know

If you’ve ever formulated a ready-to-drink tea or coffee and wondered why it tastes flat — or why some RTDs feel so much more authentic than others — the answer likely comes down to two things: extracts and essences. And if you’re not sure what the difference is, you’re not alone.

That’s exactly what Bill Hayes, Director of R&D Applications at Vibrant Ingredients, sat down to clear up in a new mini episode of the Startup CPG Podcast with host Daniel Scharff.

“Together, extracts and essences are what separate a great tea beverage from a flat one.”

Think about that rush of aroma when hot water hits a tea bag — that’s the essence. It’s the volatile aromatic compounds that create a tea’s first impression, and Vibrant actually captures and concentrates those compounds to bring them back into finished beverages. The body, color, and astringency that makes an RTD taste like real, brewed tea? That comes from the extract. Used together, they recreate the full sensory experience of a proper cup — aroma, flavor, body, and color in harmony.

The episode goes well beyond tea. Bill also walks through cold brew coffee extracts, the role of natural flavors in formulation, and the functional ingredients gaining the most traction right now — including L-theanine, EGCG, and natural caffeine. He also gets into what brands should think about when selecting an ingredient supplier, from locking in your non-negotiables early to understanding the extraction process behind what you’re buying.

Vibrant uses pure water extraction across their entire portfolio — a process that keeps ingredients clean, label-friendly, and consumer-ready. As the world’s largest private equity-owned natural ingredients provider, they bring both the scale and the science to help brands get to market fast without compromising on quality.

Whether you’re developing your first RTD or refining an existing formula, this episode is a helpful, practical listen for anyone working in tea, coffee, or functional beverages.

Listen here: https://lnkd.in/e7Q7V_vV