In Australia, the contract beverage manufacturing sector is worth around $4 to $8 billion, with growth fuelled by ready-to-drink (RTDs), non-alcoholic, and functional beverages. Melbourne-based company, Gypsy Hub, is intent on redefining contract beverage manufacturing and advocating for its scope and skills.
Gypsy Hub CEO, Paul Baggio, says it is estimated to account for roughly 15-20 per cent of the $30 billion-plus beverage manufacturing sector.
Source: Gypsy Hub
Baggio says enabling brands to outsource production to specialised facilities like Gypsy Hub, means they can focus on innovation without investing in costly infrastructure.
“We take care of recipe development, production, packaging and logistics, offering a one-stop shop for innovative, sustainable and scalable beverage production to empowers brands, startups, and not-for-profits,” he says.
Reputation reset
Baggio adds that what was once viewed sceptically for perceived compromises in control, contract manufacturing is now a cornerstone of innovation.
“Advances in processing and packaging technologies have levelled the playing field. Contracting is not a dirty word anymore; it’s a powerful tool for smaller and medium-sized brands to compete with industry leaders. Consumer demand for unique, purpose-driven beverages and accessible production solutions are driving the change,” he says.
Since Gypsy Hub launched in 2018, it has won more than 100 local and international awards for products made with contract partners.
“These collaborations with our contract partners are an amplified concentration of multiple skills and disciplines necessary in developing a great product,” he says.
One-stop shop
The founders of purpose-led startup, Wonki, came to Gypsy Hub with the goal to scale quickly. In two years, it has achieved nationwide ranging.
The brand was founded in 2022 by three university friends who developed an idea of rescuing waste bound fruit and turning it into alcoholic drinks.
In 2024, it was awarded Sustainability Supplier of the Year by Endeavour Group and Best in Category at the Good Design Awards.
Wonki co-founder, Max Moolman, says, “Gypsy Hub allowed us to validate our concept and make the first batch, significantly de-risking the business for us. They had all the right equipment and gave us the flexibility to be hands on as much as we could.”
Baggio adds demand is not just for alcohol.
“We’re seeing a huge influx of concepts across health RTDs, seltzers, spritzes, sodas, alt milks, NoLo, coffees, teas, yerba maté, cordials, functional beverages and water.”
Gypsy Hub partnered with OzHarvest Ventures on its collaborative project, Conscious Drink, (winner of The Hive Awards Gamechanger award in 2024). OzHarvest Ventures head, Louise Tran, says Gypsy Hub shows commitment to its mission and purpose.
“Their passion, knowledge and willingness to go above and beyond means we can grow our innovative purposeful products in a considered way to meet demand, without compromising the quality of our products or commitment to using upcycled, ethically sourced, sustainable ingredients,” Tran says.
The companies are also collaborating on the production of OzHarvest’s Oh! LemonAid.
Baggio says, “The bottom line is, we’re now the forefront of innovative, sustainable beverage making along with local visionaries that may have been left out in the past due to the smaller-scale nature of their enterprise. We have unmatched versatility with commercial distilling, brewing, blending, R&D, canning, bottling, bladder/BIB/pouch, pasteuriser, kegging bonded warehouse and logistics capabilities in one location.”
The company recognises the importance of sustainability targets and processes for its own operations but also for its customers emissions targets. It has a ESG commitment in place and runs initiatives including water reclamation via crossflow filtration and CO2 reuse trials for decarbonisation.
This article first appeared in the August/September 2025 edition of Food & Drink Business magazine.
