Terpenes usually have a low water solubility because they are mostly made up of non-polar compounds. Therefore, terpenes have a much higher solubility in alcoholic and non-alcoholic solvents as well as oils. The reason terrace based flavorings often require an emulsifier when added to a water-based beverage is that if the terpenes are not mixed correctly with the other ingredient(s) in the beverage, they will separate.
