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Side Hustle Case Study: Turning Craft Syrups into Wholesale Revenue

ffreelancing

2026-01-31

10 min read

How Liber & Co. scaled from a stove-top batch to 1,500-gallon tanks — a step-by-step wholesale playbook for makers ready to scale.

From a Pot on the Stove to 1,500-Gallon Tanks: A Practical Playbook for Makers

Hook: You launched a side hustle making craft syrups, jams, or pantry products—now restaurant buyers are asking for MOQ pricing and a certificate of insurance. You don’t have a supply chain playbook. That’s normal. This case study breaks down how Liber & Co. moved from kitchen experiments to global wholesale distribution and gives you the concrete steps to scale a food-side hustle into a stable B2B revenue stream in 2026.

Why this matters in 2026

By late 2025 and into 2026, food buyers expect three things: reliable supply, clean labeling, and predictable margins. Marketplaces and distributors now integrate AI demand forecasting and embedded payments, which accelerates onboarding but raises expectations for professional data (UPC, nutrition panels, pallets per SKU). That means a maker who knows how to translate kitchen craft into operational metrics—cost per unit, lead time, minimum order quantity (MOQ), and distributor-friendly packaging—wins first.

Quick snapshot: Liber & Co.’s path (the headline milestones)

2011: First test-batch on a stove with three co-founders in Austin, TX.
Early years: DIY operations—insourcing manufacturing, packaging, and marketing.
Growth: Shift from home-batched to commercial equipment and 1,500-gallon tanks.
Channels: Direct-to-consumer (DTC), bars & restaurants, national distributors, and international buyers.
Culture: Hands-on, learn-by-doing approach—kept vertical control over flavor and quality to protect brand equity.

Action Plan: 10 Steps to Turn a Craft Syrup Side Hustle into Wholesale Revenue

The following steps are drawn from how Liber & Co. scaled, adapted for affordable execution by makers and small teams in 2026. Each step includes actionable sub-steps, pricing templates, and KPIs to track.

1. Validate product-market fit with targeted B2B pilots

Run 10-15 targeted trials with local bars, coffee shops, and a few restaurants. Offer a consignment or low-MOQ introductory pack (e.g., 6 × 750ml bottles) in exchange for feedback and usage data. Consider micro-incentives to recruit trial participants and speed feedback loops (see case studies on micro-incentives).
Measure: percentage of trial customers who reorder within 30–60 days, average units used per week, and feedback on flavor & packaging.
Use results to document a Wholesale Use Case—how many cocktails per bottle, cost per drink, suggested pour rate. Buyers love straightforward math.

2. Lock down product specs and shelf-stability

Professional buyers won’t accept “it’s like my grandma’s recipe” as a supply guarantee.

Get a lab-run shelf-stability or accelerated shelf-life test. For syrups, pH and preservative efficacy matter.
Create an ingredient and allergen declaration, and prepare a basic nutrition facts panel—by 2026 buyers expect this for volume purchase.
Cost: Many food labs offer SMB packages under $1,000 for essential tests; factor this into early capex.

3. Build simple but durable operations: co-packing vs. in-house

When Liber & Co. scaled they kept much in-house to protect craft quality. That’s not always feasible. Evaluate three models:

In-house—best for tight quality control; higher capital and regulatory overhead.
Co-packer—faster scale, less capital, but requires strong specs and QC procedures.
Hybrid—retain lab and R&D in-house, outsource fill/pack to co-packer.

Checklist before contracting a co-packer: verify food safety certifications (SQF/BRC or equivalent), get references, confirm MOQ flexibility, and run a pilot production batch.

4. Professionalize your pricing—three formulas that work

Buyers need transparent pricing that fits their margin math. Use these formulas as starting points.

Cost-Plus (baseline)

Calculate total landed cost per unit (ingredients, labor per minute of run, packaging, labeling, co-packer fee, shipping, and overhead allocation). Then add your target margin.

Example: Total landed cost = $3.00 per 750ml. Target manufacturer margin = 40% → Wholesale price = $5.00.

Channel-Market Pricing (for distributors and retailers)

Apply channel multipliers to ensure all parties can earn:

Manufacturer to distributor: wholesale price where distributor margin ~20–30%.
Distributor to retailer: add ~25–40% markup.
Retail shelf (on-premise pricing for cocktails): typical pour cost math is cost per cocktail ≤ 15–20% of menu price.

Rule of thumb in 2026: expect distributors to want 20–30% margin and retailers/ bars to price final drink such that syrup cost per pour is 5–15% of drink price.

Subscription & DTC Premium

Reserve a margin buffer for DTC and subscription channels—DTC can justify a 2–3× retail multiplier because of brand connection, but remember shipping and customer acquisition costs.

5. Create a B2B sales kit that buys credibility

Liber & Co. succeeded because they packaged craft authenticity with operational data. Your B2B sales kit should include:

One-page product spec sheet (UPC, case pack, dimensions, weight, lead time)
Sample pour math: how many cocktails per bottle at the suggested pour
Pricing tiers and MOQ (e.g., 24 bottles MOQ for direct wholesale; pallet pricing at 480 bottles)
Food safety & insurance summary (COI available upon request)
Testimonials & a 30–60 day trial offer

6. Outreach templates: cold outreach and distributor intro

Short, metrics-driven outreach wins with busy buyers.

Cold Email Template (to a bar manager)
Hi [Name], we’re Liber-esque craft syrups made locally—one 750ml bottle yields ~25 cocktails at our suggested pour. Would you trial a 6-bottle kit on consignment for 30 days? I’ll provide pour math, POS cards, and staff tasting. No upfront cost. If you like it, reorder MOQ is 24 bottles. —[Your name]

Distributor Intro (short)
Hi [Rep], we’re a specialty syrup brand with proven on-premise usage metrics: average weekly units per location in pilot = 8 bottles. We’re looking for distribution in [region]. Would you share your onboarding list and target margin requirements? Attached: spec sheet and 60-day sales pilot summary. —[Your name]

7. Distribution strategy: pick one primary channel, then scale

Paths to wholesale:

Direct wholesale—highest margin but greater sales effort and small-ticket orders.
Distributor model—lower margin but scale and reach; requires consistent fill rates.
B2B marketplaces (2026)—Faire-style platforms and specialized beverage marketplaces now offer faster onboarding and embedded payments; they shorten the sales cycle but charge fees and require professional data (high-resolution images, nutrition panel, KS1/KS2 packaging).

Practical sequence: start direct with local accounts → prove reorder and weekly pull-through → sign one regional distributor → use marketplace presence to attract national buyers.

8. Logistics, lead time, and MOQs—operational math

Buyers plan their menu and cash flow around reliable lead times. Tell them yours.

Standard small-batch MOQ for makers: 24–48 bottles to small bars; 480–1,000 bottles for pallet-level buyers.
Lead time: communicate realistic windows (e.g., 7–14 days for local, 21–45 days for national/distributor replenishment).
Buffer: keep safety stock equal to 2–4 weeks of combined forecasted demand to avoid stockouts—this was a core lesson for Liber & Co. as they moved to larger tanks.

9. Brand building & wholesale marketing

Craft credibility is a competitive moat. Liber & Co. invested in story-driven content while scaling operations. Prioritize these elements:

Trade-focused content: 1-page usage guides, recipes for house cocktails, and training videos for bar staff.
BRAND AS A SERVICE: Provide POS assets (menu cards, coasters, shelf talkers) to help accounts sell through.
Sustainability & provenance: by 2026, buyers increasingly choose suppliers with visible sourcing and lower packaging impact—consider recycled glass, refill programs, or bulk & refill SKUs for high-volume accounts.

10. Contracts, payments, and compliance

Make it easy for buyers to do business. Standardize three documents:

Net terms contract: 30/15 day net? Offer 2% 10 NET 30 as a discount to encourage faster payment.
Distributor agreement: outline territories, pricing ladders, returns policy, and promotional support.
Sales order and COA delivery: include certificate of analysis for each batch if buyers request it.

Payments: adopt B2B-friendly payment rails in 2026—ACH for domestic buyers, embedded card payments via marketplaces, and net terms managed through fintech partners that offer invoice financing to reduce cash flow strain.

Metrics & KPIs to track while scaling (operational dashboard)

Set a concise dashboard—Liber & Co. scaled with visibility into these metrics:

Fill rate: % of orders shipped complete on time (target 95%+ for distributor relationships)
Average order value (AOV) by channel
Days Sales Outstanding (DSO) for wholesale invoices
Units per account per month—useful to forecast production runs
Gross margin by channel after distribution fees

Real-world decisions Liber & Co. made—and what you can borrow

From the Practical Ecommerce profile and founder interviews, several operational themes stand out:

Control early: They handled R&D and key production steps in-house to protect flavor profile and brand identity. Your takeaway: keep quality-critical steps internal until you have documented SOPs.
Iterate publicly: Pilots with bars validated recipes and created product evangelists—use the same pilot-to-referral model.
Gradual capital intensity: Liber & Co. moved from pots to tanks as demand required. You don’t need a 1,500-gallon tank on day one—scale equipment in step with validated demand to minimize risk.
Vertical integration supports margin: Owning manufacturing and warehousing allows better margin control once you reach consistent volumes. See cross-industry scaling lessons for context: From Cocktail Syrups to CNC Tanks.

2026 Trends to Lean Into

To compete through 2026 and beyond, prioritize:

Data-driven replenishment: integrate simple demand forecasting tools (even spreadsheets using historical weekly pull-through) or low-cost AI forecasting to reduce stockouts.
Embedded B2B payments and dynamic net terms: buyers expect flexible payment options, including line-of-credit fintech integrations on marketplaces.
Bulk & refill SKUs: sustainability options and lower per-unit costs for high-volume bar accounts.
Digital assets for trade: high-resolution photos, pour-rate videos, and recipe PDF that your sales team can send instantly—marketplaces elevate brands that are “sales-ready.”

Common Scaling Pitfalls (and how to avoid them)

Underestimating working capital: Plan for 60–90 days of cash to cover production, raw materials, and receivables as you onboard distributors. Model this into your cash forecast and operational playbook (operations playbook).
Loose specs: Without documented SOPs you lose quality when you scale—create step-by-step batch records before increasing volume.
Overcomplicating SKUs: Too many flavors at once dilutes forecasting and increases inventory costs—scale one hero SKU then add variants.
Ignoring buyer math: If your syrup costs too much per cocktail for typical menu pricing, buyers won’t adopt—even if it tastes great.

A Practical 90-Day Launch Checklist

Validate 10 local pilots and collect reorder and pour-rate data (Days 1–30).
Run basic lab tests and create ingredient/ allergen declarations (Days 15–45).
Decide co-packer vs. in-house; run a pilot production batch (Days 30–60).
Produce a one-page B2B sales kit and outreach templates (Day 45).
Secure a distributor conversation and 1–2 local accounts with signed reorder intent (Days 60–90).

Final Takeaways: What Separates Makers Who Scale

Liber & Co.’s journey shows that craft sensibility plus operational discipline scale. The brand preserved recipe integrity while layering the professional scaffolding buyers require: clear pricing, lead times, QC data, and trade assets. In 2026, the margin for error is smaller because more buyers seek predictability—so pair your kitchen credibility with production-grade documentation and a simple, repeatable sales process.

"Start with the smallest professional step that reduces buyer friction." — practical advice distilled from Liber & Co.'s scale-up story.

Resources & Next Steps

Download the free one-page wholesale spec template and the 90-day launch checklist (links available on our site). If you want direct feedback on costs or a distributor intro checklist, book a 15-minute roadmap call with our team.

Call to action: Ready to move from test batch to repeat wholesale orders? Download the wholesale starter kit or schedule a 15-minute scale audit to get a custom cost-plus price model and MOQ plan tailored to your syrups or pantry products.

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