Sydney RTD startup Quips has established what it says is Australia's first alcohol pouch-filling operation, investing in specialised manufacturing capability after finding no local contract packer able to produce alcoholic beverages in a resealable spouted pouch format.
Established by Joe McGaffin and Calvin Koder, the company has introduced a range of 11 per cent ABV cocktails packaged in flexible pouches, a format well established across categories such as yoghurt, baby food and sports nutrition, but still relatively uncommon in alcoholic beverages.
The founders say the decision to build their own manufacturing capability stemmed from a lack of local infrastructure and expertise capable of supporting the format.
“We initially explored the traditional co-packing route and had discussions with several Australian manufacturers about producing the product. However, because alcohol pouches were effectively a non-existent category at the time, there was very little existing infrastructure or expertise available locally.
The pouch format has also been registered within container refund schemes across Australia and carries the relevant CDS markings, a consideration the founders say influenced packaging development decisions from an early stage.
“While there was plenty of interest, getting someone to fully commit to the required equipment and process changes proved difficult.”
Rather than alter the concept or wait for the market to develop, the pair sourced a pouch-filling line from Korea and established a production operation on the NSW Central Coast.
According to the company, the highly automated multi-lane filling and sealing system was selected for its ability to deliver consistent seal integrity and product quality in centre-spout pouches.
Developing the format
The Quips pouch uses a high-barrier multilayer structure designed to maintain flavour, freshness and product stability, with the company reporting a shelf life of approximately 18 months under normal storage conditions.
Preserving flavour and shelf stability presented a number of technical considerations, particularly given the higher alcohol content and the use of a flexible package format.
“The machine nitrogen flushes each pouch to minimise oxygen exposure and steam sterilises the spout prior to sealing, helping ensure product quality and shelf stability.
“We also worked closely with our packaging supplier to validate that the pouch materials could withstand higher alcohol concentrations while maintaining the barrier properties required to protect flavour and freshness.”
The current range includes Tommy's Margarita, Raspberry Passionfruit Martini and Mango Daiquiri.
Balancing innovation and recovery
While the current pouch format has been approved for participation in Australia's container refund schemes, the founders say future packaging development is being shaped by the challenge of aligning material innovation with existing regulatory frameworks.
“We're closely monitoring developments in recyclable mono-material structures, recycled content and other advances in flexible packaging.
“We've evaluated a number of alternative materials that offered sustainability benefits but faced challenges gaining recognition within existing CDS frameworks, which is required to be registered in to sell beverages in Australia.
“As a result, we're continuing to work with packaging suppliers, industry bodies and regulators to understand what solutions will be viable long term.”
Market response
The company believes the pouch format is creating a distinct proposition within the RTD category, with portability, resealability and reduced package weight cited among its key advantages.
“The resealable nature of the pouch is one of the biggest benefits for consumers. It makes the product highly portable – you can have a sip and put it back in your pocket or handbag.
“The flexible packaging also reduces the risk of breakage at venues because there is no glass involved. Combined with the resealable cap, this has made the format particularly attractive to large-scale events, festivals and hospitality venues looking for safer and more practical beverage options.”
The founders also point to transport and material-efficiency benefits compared with glass packaging.
“From a sustainability perspective, the pouch also has a number of advantages. It uses significantly less material than a glass bottle and is much lighter to transport, reducing freight emissions throughout the supply chain.”
Quips reports sales of more than 250,000 pouches within its first year, a 13-fold increase in monthly revenue since launch, and distribution through approximately 100 independent retailers nationally.
Interest in the format is also emerging beyond the RTD category.
“We've had many inbound enquiries from both domestic and international alcohol companies, including some major players.
“We are open to working with brands outside of alcohol. We've already run products such as sports drinks and juices through the machine and the format has proven to be incredibly versatile.”
Looking ahead, the company sees opportunities for both packaging and manufacturing capability to evolve as the category develops.
“Longer term, we could see contract manufacturing becoming an additional revenue stream for the business, particularly as awareness of the format grows.”
