This report discusses the importance of innovation and commercialisation in Essence Drinks. It explains the difference between innovation and invention, types of innovation, and ways to embed innovation in organizational vision, leadership, culture, and teamwork. It also covers sources of innovation, 4Ps of innovation, and the use of the innovation funnel. The report offers recommendations for deriving a new and innovative drink and discusses the significance of the commercial funnel and New Product Development for commercialisation of innovation.