4 Strategies for Expanding Multi-Segment Production

As the age of the omnibibulous consumer reigns, it’s on us to lead the next era of the beverage industry.

March 25, 2024

As the age of the omnibibulous consumer reigns, it’s on us to lead the next era of the beverage industry. 

Producers seeking profitability are held back by the inability to adapt to shifting consumer habits. It’s become more challenging each year to meet consumers with the right beverages at the right time in the right place for the right occasion. 

Multi-segment production enables producers to tap into new markets and enhance revenue streams. Entering or expanding your multi-segment operation can take many forms. 

Here are the four most common strategies in the modern beverage industry: 

1. Add Equipment Within Your Existing Space

Expanding your production capabilities doesn’t always require a complete overhaul. Equipment upgrades allow you to expand your product portfolio without disrupting your existing operations. You’re building on what you already have, rather than starting from scratch.

2. Expand Your Facility Footprint

Sometimes, physical space is the limiting factor in pursuing multi-segment production. If your current facility lacks the necessary space, explore options for expansion. Whether it’s building an extension or leasing nearby warehouse space, more square footage allows you to scale up production. 

3. Co-Packing in New Segments

Co-packing involves partnering with other producers to create new products. Identify segments where you want to expand but lack the necessary equipment or expertise. By co-packing, you benefit from their knowledge and equipment while introducing a new product to your portfolio.

4. Mergers and Acquisitions

Merging with or acquiring companies in complementary segments instantly expands your footprint. You gain access to their facilities, equipment, and skilled personnel. Collaborate with business advisors to develop a customized strategy that aligns with your growth goals.


Encompass put together a guide to help you gain deeper insight into your strategic path forward as a multi-segment producer. 

Download the guide to future-proofing your business with multi-segment beverage production to evaluate these options, assess your business needs, and take deliberate steps toward diversification. The modern beverage industry awaits! 


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