Beverage Due Diligence
Beverage due diligence for acquirers, investors and counsel. Examine product lines, co-packers, supply chains and margins with BDH Consultants.
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Beverage Commercialization / Deal Diligence / Est. By Two Operators
The Beverage Judgment Your Deal File Is Missing.
BDH Consultants is a beverage commercialization firm. Acquirers, investors, and counsel hire us to pressure-test beverage and restaurant deals before they close. Founders, co-packers, and operators hire us to source, build, and fix product lines, supply chains, and operations. Same judgment, both sides of the table, backed by 35+ years of combined beverage and hospitality expertise.
35+ Combined Years In Beverage
Twenty years for Billy and fifteen for Don, across tea, coffee, foodservice, and hospitality.
Built & Exited An Eight-Figure Beverage Business
A four-unit Southern California chain in tea and coffee. Fourteen consecutive quarters of growth, $10M+ in sales, exited in 2020.
One Principal Built The Products, One Spent 20 Years Practicing Law
Our combined skillset covers all aspects of a beverage business, from product development, sourcing, foodservice operations, and legal compliance.
Millions In Revenue Generated In Product Development
Billy spent nine years in research and development at DAVIDsTEA, where tea sales over that period approached $930 million.
Two Published Industry Books
Spill the Tea by Billy Dietz, and The Perfect Blend by Don Ho.
Find Your Starting Point
Beverage Expertise, Applied.
Product Development & Co-Packers
Build a beverage product line with a clear brief, realistic economics and a capable co-packer. BDH supports formulation, sourcing and commercialization.
Explore the Service →Tea Sourcing & Development
Tea sourcing and product development with BDH Consultants. Develop blends, evaluate suppliers and match tea products to production and channel requirements.
Explore the Service →What We Solve
You're Probably Here Because…
You're Diligencing A Beverage Deal.
You're acquiring a beverage brand, a restaurant group, or a co-packer — or advising someone who is — and the model, the lawyers, and the accountants are covered. What's not covered: whether the product line, the co-packer contracts, and the supply chain actually hold up. You need that box checked by someone who has run one. Defensibly, in writing, inside your exclusivity window.
You're Building Or Fixing A Product Line.
And you need it matched to a co-packer who can actually hit your volume, format, and budget — not just tell you what you want to hear.
Your Supply Chain Is Built On Hope.
One supplier, no backup, and a compliance or quality issue away from a scramble you didn't see coming.
You Run A Co-Packer, Blender, Or Wholesaler.
And you need your own team or your own line performing well enough to serve your clients better than your competitors do.
You're Entering A New Market Or Losing Ground On Price.
You need an outside, evidenced read on where you actually stand before you commit resources you can't easily unwind.
You Operate A Retail Or Foodservice Beverage Business.
And you need it profitable, well-built, and running on a supply chain that isn't quietly working against you.
For Deal Teams
Check The Box. Defensibly.
Every beverage deal has a moment when someone at the table asks: has anyone who's actually operated in this category looked at this? The QoE firm can't answer it. The expert-network calls don't leave anything behind for the file. We exist for that moment.
The Beverage Diligence File
A fixed-price operational and commercial diligence sprint on the beverage business you're buying — product line, co-packer, supply chain, margin stack, operations — delivered as a written findings memo and risk register built to sit in the deal file and stand up in front of an investment committee.
- Who Engages Us
- Private equity and venture deal teams, corporate development, M&A counsel, independent sponsors and search funds, lenders and family offices.
- What We Examine
- SKU-by-SKU line viability · co-packer capability, contracts, and concentration · supply chain fragility (single-source exposures, MOQ mismatches, quiet lead-time risk) · the margin stack, rebuilt with freight, slotting, spoilage, and distributor cuts included · operations and the team behind the numbers.
- What You Leave With
- A findings memo, a ranked risk register, and a 100-day priority sketch for post-close — signed by the principals who did the work.
- Format
- Fixed fee, quoted before you commit · two to three weeks, scoped to your exclusivity window · NDA signed within one business day · conflicts checked before engagement, like a law office, because one of us ran one.
Earlier in the deal? The Red-Flag Review is a three-to-five-day screen of the data room that tells you whether the beverage story survives first contact — and the fee credits toward the full Diligence File if you proceed.
After the close? The risk register becomes the 100-day plan. We can stay to run it down.
The Problem, Named
The Operator's Gap
/ n. / — the distance between how a business runs in an owner's mind, and how it actually runs.
A supply chain nobody's questioned in years. A team that looks productive but isn't driving profit. A pricing strategy no one's benchmarked. A risk that only shows up if you know where to look.
Most beverage businesses don't fail because an owner wasn't good at their job. They fail in the gap between what an owner believes is true about their business and what's actually true — a gap that's invisible from inside and obvious from outside.
Every blind spot looks obvious in hindsight and almost none of them are visible in advance, unless you've already crossed one. We have. Many times, in our own businesses first. Closing that gap in yours is our entire business.
And if you're the buyer: the Operator's Gap doesn't disappear at closing. It transfers — at the multiple you paid.
A Note On AI
You've Already Asked AI. Good. So Have We.
We are not AI skeptics. Don works with these systems daily, at the edge of what they can currently do, and we use them here for research coverage, for first drafts, for speed. Used well, they let a two-principal firm move like a ten-person one, and we would rather our clients have that leverage than pay for its absence.
Which is exactly why we can tell you where the machines stop. AI is trained on what has been published. This industry runs on what has not: the co-packer minimum that moves when you know how to ask, the supplier whose paperwork is immaculate and whose lead times are not, the ingredient broker who picks up during a shortage. None of that is on the internet, so none of it is in the model. AI also gives you the average answer, and deals do not fail on averages. They fail on this formulation, on that line, at this volume, under that contract.
Then there is accountability. When the investment committee asks who stands behind the diligence, a chatbot is not an answer. A signed memo is.
How We Work
Closing The Operator's Gap
Five ways the gap shows up. One method for closing it: find where the business runs on assumption instead of evidence, and replace the assumption with a verified answer, fast.
01
Diligence And Competitive Positioning
Before you commit resources, know exactly where you stand. We ran a 270-data-point competitive analysis for a multi-million dollar international beverage supplier to inform a new portfolio launch. Separately, we corrected an undervalued pricing position for a regional foodservice chain, optimizing their profit margin by low double digits. For acquirers, this same discipline becomes the Beverage Diligence File.
02
Sourcing And Product Development
We build product lines and match them to the right co-packer, fast. One recent build came in over fifteen percent under budget, in under four months, with preferential R&D terms secured on top. When a client's supplier lost organic certification, we replaced them without disrupting their sourcing story or their timeline.
03
Supply-Side Capability
We work directly with co-packers, blenders, and wholesalers to strengthen what they offer their own clients. We trained the R&D function at a $10 million private-label beverage co-packer to operate as a profit center instead of a cost center. Separately, we sourced first-to-market raw materials for a leading North American co-packer to fuel their fastest-growing segment, powders.
04
Retail And Foodservice Operations
Run jointly by both founders. Over a decade of personal operational experience in the foodservice/beverage industry. Proven track record of achieving profitability for several clients in less time than industry standard.
Principals
The People You Meet Do The Work.
A two-principal firm. Principals do the work. There is no B-team to hand you to.
Billy Dietz
Co-Founder · Sourcing & Product Development
A seasoned tea professional with over twenty years in the industry. At seventeen he became the youngest Certified Tea Specialist in North America through the Specialty Tea Institute, and later a certified STI instructor. He continued his education with McCormick FONA and the Specialty Coffee Association of Europe, and has traveled extensively to study how beverages and food are woven into the cultures of each region. Billy spent nine years in research and development at DAVIDsTEA, pushing the boundaries of tea innovation across teabag, loose leaf, and powder formats. In 2023 he published Spill the Tea: Unveiling the Mysteries of Blended, Flavored, and Herbal Teas, a working guide for industry professionals, entrepreneurs, and enthusiasts.
Drinks Chinese black tea
Don Ho
Co-Founder · Operations, Diligence & Scale
Twenty years an attorney before selling his law firm to operate. He built an eight-figure foodservice and retail beverage business from zero, with fourteen consecutive quarters of growth, more than $10M in sales, and four locations, before exiting in 2020. He has sat on all three sides of the deal table: as counsel, as founder, and as seller. Don works with AI systems daily at the edge of what they can currently do, which shapes how BDH runs research and diligence. He is a certified Bloom Growth coach and mentors founders through Entrepreneurs’ Organization and ACE Next Gen. In 2024 he published The Perfect Blend, a practical guide to building and scaling a beverage business.
Drinks Taiwanese oolong
35+ years of experience between us. One of us built the products. The other built the business around them.
Work
Proof, With Numbers Attached.
A multi-million dollar international beverage supplier needed an evidenced read on the competitive landscape before launching a new portfolio.
Outcome270 Data Points · One Portfolio Launch De-Risked
A regional retail chain needed to know how far below market its pricing had drifted. Our analysis showed the client was ~15% under market rate and our recommendations helped increase revenue by 15.4% within one quarter.
OutcomeGross Revenues Increased >15% Within Three Months
A brand needed a product line built for third-party distribution, matched to a co-packer fit for their volume, format, and geography.
Outcome15%+ Under Budget · Under 4 Months To Delivery
A $10 million private-label beverage co-packer needed its R&D function repositioned as a profit driver rather than a cost center.
Outcome8 Months · R&D Repositioned As A Profit Center
A leading North American co-packer needed first-to-market raw materials to fuel its fastest-growing segment, powders.
OutcomeFastest-Growing Segment · New Supply Partner Secured
Startup foodservice business bootstrapped by owners and needing to reach profitability as quickly as possible.
OutcomeConsistent Profitability Within 6 Months Of Launch
These are examples of range, not the extent of it.
The Library
We Publish What Others Protect.
Product Development Brief Standard
The five inputs every beverage brief needs before a co-packer sees it: concept, flavor profile, base, price target reverse-engineered from margin, and compliance envelope. Includes the iteration cycle and the IP terms to settle before Round 1.
Read the Framework →Download The Sheet ↓Choosing A Co-Packer: Capability And Fit
What a co-packer actually sells you is consistency at scale. Four evaluation criteria in order, the diligence questions a sales call avoids, and the single most expensive early-stage sourcing error.
Read the Framework →Download The Sheet ↓The Daily Operations SOP Framework
A documentation and checklist standard for beverage retail and foodservice. Opening, closing, shift handover, maintenance tiers, and the quality-control layer. For acquirers: documented SOPs de-risk key-person dependency in an owner-operated target.
Read the Framework →Download The Sheet ↓Know Your Numbers: A Retail KPI Framework
The metrics stack that separates a defensible operator from one running on instinct. Sales, gross margin, COGS, labor as a percentage of sales, and break-even discipline. A target that cannot produce these is asking a buyer to underwrite an unmeasured gap.
Read the Framework →Download The Sheet ↓Everything in the Library is free to download, and more frameworks are in development. The judgment to apply them is what we sell.
Also From BDH
Bloom Growth Coaching
As a certified Bloom Growth coach, Don implements the Bloom Growth Operating System with hospitality and F&B leadership teams — a communication and execution system built on prioritization and simplification. For acquirers: this is also how a post-close leadership team learns to run the plan you just paid for.
The First Step
Two Ways In.
The Red-Flag Review
A three-to-five-day screen of the target’s data room: product line, co-packer, supply chain, margin story. You leave with a flag memo and a clear read on whether the beverage thesis survives first contact. Fixed fee, quoted before you commit, credited toward the full Beverage Diligence File.
- Format
- Data-Room Screen + Flag Memo
- Timeline
- 3–5 Business Days
- NDA
- Signed Within One Business Day
The Operator's Gap Review
A fixed-price diagnostic of exactly where your business stands — sourcing, supply chain, product line, pricing, or operations — with a written roadmap of what to close first. Useful on its own, whether or not you ever hire us again.
- Format
- Working Session + Written Findings
- Timeline
- Two Weeks
- You Leave With
- Findings Memo & Sequenced Roadmap
We are a two-principal firm and take a limited number of engagements each quarter.
Good To Know
Frequently Asked Questions
Do You Work With Investors And Acquirers?
Yes. The Beverage Diligence File is a fixed-price operational and commercial diligence sprint for buyers of beverage brands, restaurant groups, and co-packers: a written findings memo and risk register, delivered in two to three weeks, built for the deal file. We run conflicts checks before every engagement and sign NDAs within one business day.
What Does Beverage Due Diligence From BDH Cover?
The parts the QoE report can't: SKU-by-SKU product-line viability, co-packer capability and contract risk, supply chain fragility, the real margin stack including freight, slotting, spoilage, and distributor cuts, and the operations behind the numbers. One principal built an eight-figure beverage business; the other built the product portfolios at one of North America's largest tea retailers.
How Is Commercial Due Diligence Different From A Quality Of Earnings Report?
A quality of earnings report tests whether the target company’s reported EBITDA is real: revenue recognition, working capital, add-backs, and normalization. Commercial due diligence tests whether the business behind those earnings holds up. We cover the operational half a QoE is not scoped to reach, including whether the product line is viable SKU by SKU, whether the co-packer can hold volume, and whether the gross margin survives freight, slotting, spoilage, and distributor cuts. We also read the CIM against what the operation can actually deliver, since projected synergies are usually where a beverage thesis is most optimistic. Most deals need both, and they answer different questions.
What Does Operational Due Diligence Cover On A Beverage Or Restaurant Target?
Product-line viability, co-packer capability and contract risk, supplier and customer concentration, single-source exposure, MOQ mismatches, quiet lead-time risk, food safety and compliance posture, the rebuilt margin stack, and the management team behind the numbers. We deliver it as a written findings memo and a ranked risk register sized to your exclusivity window.
How Fast Can You Turn Around Diligence Inside An Exclusivity Window?
The Red-Flag Review is a three-to-five-business-day screen of the data room that tells you whether the beverage thesis survives first contact. The full Beverage Diligence File runs two to three weeks and is scoped to your timeline. NDAs are signed within one business day and we run conflicts checks before every engagement, like a law office, because one of us ran one.
What Are The Most Common Red Flags In A Beverage Acquisition?
Customer and supplier concentration with no documented second source. A co-packer relationship selected on rapport rather than documented capability. A margin story that omits freight, slotting, spoilage, or trade spend. Formula ownership nobody at the table can document. The formula sitting with the co-packer is not automatically a problem; the problem is a target that cannot say who owns it, why, or what it would take to change. Key-person dependency in an owner-operated business with no documented SOPs. And a target that cannot produce basic unit economics on request, which is a business asking a buyer to underwrite a gap it has not measured itself. Our due diligence checklist runs each of these gates in sequence.
Do You Support Confirmatory Diligence And Post-Close Integration?
Yes. The risk register we deliver is built to become the 100-day plan after close, and we can stay on to run it down. For post-close leadership teams, Don is a certified Bloom Growth coach and implements the Bloom Growth Operating System, which is how a management team learns to execute the value creation plan you just paid for.
Who Hires BDH Consultants?
Private equity and venture deal teams, corporate development groups, M&A counsel, independent sponsors and search funds, lenders, and family offices on the buy side. On the operating side: founders and brands, co-packers, blenders, wholesalers, and retail and foodservice operators.
What Does BDH Consultants Do?
We are a beverage commercialization firm. We close the Operator's Gap — the distance between how a business runs in an owner's mind and how it actually runs — across diligence, sourcing, product development, supply-side capability, and operations.
What Kinds Of Beverages Do You Work With?
Tea, coffee, botanicals, and RTD or functional drinks. Our team holds over thirty-five years of combined experience across the beverage industry and hospitality, serving clients from first-time founders to established brands, the co-packers who supply them, and the investors who acquire them.
What Is The Operator's Gap?
The distance between how a business runs in an owner's mind and how it actually runs. It's invisible from inside, obvious from outside, and expensive either way. Closing it is our entire business.
How Do I Start Working With BDH?
Start a Red-Flag Review or an Operator's Gap Review, or send a message through the contact form. A principal reads every inquiry and replies within one business day.