Abstract: The inventive process allows the solubilization of flavor oil in water to produce clear beverages. The amount of emulsifier required for oil solubilization is less than that of oil, and a typical oil to emulsifier ratio is 2:1. A crude emulsion is first generated by high shear mixing of the emulsifier solution and flavor oil. The crude emulsion is then fed into a homogenizer to produce a finer emulsion. The resulting flavor concentrate can then be diluted to produce clear beverages. This process also simplifies the introduction of normally insoluble nutraceuticals, particularly lipophilic ones, into beverages. Compared to microemulsion formulations, this process provides an easy way of formulation customization to different flavors and nutraceuticals.