functionaldrinks zenithinternational newsletter This issue at a glance...
Page seven Popular summer tastes in Sweden
Page six Yogurt designed to battle US bulge
Issue 183
energy drinks/packaging
United Kingdom
Changing attitudes, naturally Energizer Brands, producer of the drink Attitude, a natural energy beverage, has completed the reformulation of its flagship product as well as announced its relaunch in an eco-friendly can. Attitude was first launched in the UK in September 2008 (see Issue 154), positioned as a healthy, wholesome and natural alternative to energy drinks. Since then, the company has been concentrating on building distribution and sales whilst also searching for ways to improve its formulation in line with Energizer Brands' desire to provide natural functionality through an environmentally-friendly medium.
pick-me-up and even young people. The reformulated version of Attitude has been available for purchase since 22 November 2009 and is available not only in the UK but also in France, Ireland, Slovenia, Spain and the Netherlands.The markets of Greece and the Far East are soon to be added to the distribution network, beginning with a launch in Hong Kong and Malaysia. Alongside the reformulation changes, Energizer Brands continued to collaborate with its can supplier Rexam, which developed what is currently viewed as the world's thinnest can with a thickness of just 25mm, thinner than a strand of hair. According to Rexam, the new can is more efficient on several fronts: it cuts down on dead space between crates; weighs less that steel cans; decreases the energy needed during transport; and can be chilled in as quickly as 100 seconds, without compromising strength. This is not the only occasion where Attitude has premiered a packaging innovation by Rexam. Upon its initial unveiling, the drink was reportedly the first to feature the packaging giant's latest printing technology, in the form of a 5-colour printed end on two piece beverage cans.
In its quest for development, the firm reportedly came across a rare herbal adaptogen called rhodiola rosea, capable of providing the energising effect of yerba maté but without the caffeine, and promptly applied for a patent on a new formula featuring this ingredient. As a result, Attitude became the first natural energy drink without caffeine or taurine, according to the company. Page four Quickly slowing down the UK
Page five Seasonal action in Germany
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Rhodiola rosea extract is believed to sustain energy levels without the peaks and troughs associated with caffeine consumption. This, in addition to Attitude's already healthy credentials, has helped broaden the drink's appeal to a wider audience which now spans sportspeople, those intolerant to caffeine or with diabetes, consumers simply looking for a healthy
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In terms of marketing, Energizer Brands affiliated with the Make a Wish Foundation and sponsored the Notting Hill Carnival in 2009, in line with its aim to inspire positive socialenvironmental attitudes and reverse negative ones. In the UK, Attitude retails for between £1-£1.29 and can be found at Waitrose, Holland and Barrett, John Lewis and through independent retailers. In France, the drink is sold in Monop, Bon Marché and Collette stores and soon will be available in in 84 El Corte Inglés stores in Spain. www.attitudedrink.com X
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functionaldrinks zenithinternational newsletter Page 2 Issue 183 28 April 2010
editorial comment Welcome to the 183rd issue of functionaldrinks. In recent news, Malaysian sweetener manufacturer PureCircle has signed an agreement with Michigan State University for further research into, and breeding of, the stevia plant. Meanwhile the number of beverage companies turning towards natural sweetener solutions continues to increase. In this issue we look at a number of such products, from Kraft Foods' Crystal Light Pure Fitness beverage mix and Glacéau's vitaminwater zero (see below and Page 7), both using the Truvia brand of sweetener, to Old Food Homes' nutritionally-rich functional yogurt (see Page 6), all in the US.
enhanced water portfolio (see Page 7), whilst in Germany, juice specialist Merziger has introduced new POS material for retailers highlighting the vitamin-rich credentials of its offerings (see Page 4). With the seasonal boost in energy have come further developments in the ever active energy drinks category. In the UK, Sterling Distributions has brought Tonino Lamborghini's eponymous brand to market (see Page 3), whilst Energizer Brands has reformulated its Attitude offering (see Page 1). Elsewhere in Europe, French retailer Système U has entered the growing own-label energy drink market (see Page 6), and in Germany mineral water company Mineralbrunnen Überkingen-Teinach has expanded its cult afri-cola portfolio (see Page 5). Also in this issue, Viva Beverages keeps energy under control with two relaxation-oriented propositions in the UK (see Page 4), with major companies Nestlé and General Mills having made respective efforts to target nutrition in for elderly (see Page 5) and to hone an already healthy functional dairy product (see Page 3).
After what seemed like an exceptionally drawnout winter, the long-awaited seasonal changes are bringing with them new developments. In Sweden, Carlsberg Sverige has added the popular summer flavours of strawberry and rhubarb to its
Jenny Foulds Editor jfoulds@zenithinternational.com
sports drinks
United States
Lighter way to hydrate
and contains only 15 calories per serving.
Kraft Foods has extended its range of low calorie powdered beverage mixes into the sports drinks category with the launch of Crystal Light Pure Fitness. It is claimed to be the first nationally available low calorie fitness beverage mix containing no artificial flavours, colours, preservatives or sweeteners. Instead it is naturally sweetened with evaporated cane juice and Truvia, a sweetener brand derived from the stevia plant. In addition, Crystal Light Pure Fitness, available in Lemon Lime, Strawberry Kiwi and Grape flavours, is caffeine and gluten free,
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Roxanne Bernstein, Kraft marketing director, commented: "The new beverage is targeted towards people who are very health minded, and are looking to avoid artificial sweeteners as much as possible". To enable its fitness positioning, the powder has been enriched with sodium and potassium electrolytes to aid hydration when consumed during light physical activity. The advertising campaign is designed to appeal to the physically active consumer, and depicts women running, swimming or boxing and consuming Pure Fitness, with the tagline: "New Crystal Light. Water your body." Crystal Light Pure Fitness is available in grocery stores across the country, retailing for around US$2.50 per box. A box contains seven sachets, which each make a 16.9oz (two servings) drink when diluted in water.
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functionaldrinks zenithinternational newsletter Page 3 Issue 183 28 April 2010
functional dairy
United States
Added plus for nutrient-rich yogurt General Mills has reformulated its digestive health yogurt Yoplait YoPlus to include the antioxidant vitamins A and E. Both the standard and light variants of the yogurt have been fortified to give consumers 20% of their recommended daily allowance (RDA) of vitamins A and E in each 4oz pot.This is in addition to the digestive and bone health benefits provided by the
probiotic cultures, prebiotic fibres, calcium and vitamin D already contained in YoPlus. Antioxidant vitamins such as A and E are said to help keep the body healthy by protecting cells from oxidation and decay. By making YoPlus a source of these key vitamins, the yogurt is "perfect for individuals who are proactive about making nutritious food choices", according to Christina Meyer-Jax, registered dietician and nutrition communicator for the General Mills Bell Institute of Health and Nutrition. Yoplait YoPlus is available in six flavours, Strawberry,Vanilla, Cherry, Peach, Blackberry Pomegranate and Blueberry AçaĂ, whilst YoPlus Light comes in Honey Vanilla, Strawberry Banana and Key Lime Pie variants. The yogurts can be found in supermarkets and other grocery outlets across the US with a retail price of US$2.79 per four pack. www.yoplus.com
energy drinks
United Kingdom
Speeding onto UK market The premium energy drink to which luxury goods brand Tonino Lamborghini has put its name has been brought to the UK by Sterling Distributions. Originally launched in 2008 and available in several countries worldwide,Tonino Lamborghini Energy Drink is produced under licence by Danish company Innovators ApS. Available in four variants - Original, Light, Apple and Fruits, the carbonated, taurine-free formulation derives its energy-giving properties from caffeine and vitamins B6 and B12. It is designed to provide an instant and sustained boost that can improve performance, sharpen reaction times and prolong concentration during times of
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intense mental and physical exertion. Each 250ml can is clearly branded with the iconic bull found on the badges of Lamborghini cars, whilst the name Tonino Lamborghini is written in the original Lamborghini font. Marketing is centred around the slogan "Power of the Myth". According to James Hammond, MD of Sterling Distributions, "Tonino Lamborghini Energy Drink will appeal to millions of consumers, from carcrazy Top Gear fans to those simply looking for a premium and high-performance energy drink". The UK launch is being supported by promotional activities including branded Smart Cars being driven around the country by representatives who will be handing out Tonino Lamborghini emblazoned merchandise. Carrying a recommend retail price of ÂŁ1.29 per can, the drink is being distributed through independents, cash and carry wholesalers and the on trade.
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functionaldrinks zenithinternational newsletter Page 4 Issue 183 28 April 2010
nutraceuticals
United Kingdom
Good snooze for insomniacs
passion flower and hops, all known to reduce stress, relieve tension and promote relaxation. In addition, Quick to Sleep contains valerian root, noted for its sedative properties.
After finding success in the UK with energy shot Quick Energy, US manufacturer Viva Beverages has rolled out its latest compact ready-to-drink (RTD) innovations, with an entirely different proposition. Quick Relax and Quick to Sleep have been created by Viva to drive incremental sales in an increasingly crowded energy shot market. Quick Relax, as the name suggests, has been designed to "take the edge off" after a day's work, whilst Quick to Sleep is specially formulated to provide a peaceful night's sleep.
Quick Relax is sugar free and contains just 5 calories per bottle, whilst Quick to Sleep is both sugar and calorie free. According to Scott Lutz, Director of Marketing at Viva Beverages, "Consumers are looking for quick, convenient solutions to help them unwind, particularly towards the end of the day. The launch of these two ground-breaking products heralds a major new opportunity for retailers as it will introduce liquid shots to a completely new group of customers". The company is in discussion with various multiple retailers and convenience chains with a view to listing the shot drinks. Quick Relax is expected to retail for £1.99 per bottle, and Quick to Sleep for £2.49.
Both 59ml shots contain a fast-acting formula incorporating chamomile, rosehip, lemon balm,
www.quickenergy.co.uk
enriched beverages
Germany
Vitamin offensive through retail
vitamin-rich credentials of its enriched juice range. Centred around a new 1/4 Chep point of sale display palette for retailers, the campaign is designed to give the company's four healthy juice classics a push. Entitled "Vitamin-rich in the spring", this includes the following variants: ACE Apple Orange Carrot; Power-Mix ACE Apple Pineapple Carrot; ACE Apple Orange Mango; and Apple Orange Nectarine with biotin (B vitamin) and folic acid.
German fruit juice producer Merziger has sprung into seasonally-inspired action. The company’s latest promotional activity highlights the
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functionaldrinks zenithinternational newsletter Page 5 Issue 183 28 April 2010
energy drinks/wellness beverages
Cult brand sees red Mineralbrunnen ÜberkingenTeinach (MinAG), owner of the iconic soft drink brand afri-cola, has introduced a caffeine intense limited edition variant to the line. Unveiled at the recent horeca industry conference Internorga in Hamburg, the new afrired joins the existing afri-cola and afri-white offerings.With powerful promotional material, the new redheaded version claims to power consumers to 132% with a 'coffitamine' combination of vitamins B6 and B12,
Germany taurine and 32mg of caffeine per 100ml. MinAG, connected through the social networking sites Facebook and Twitter, offered the first 132 suppliers one free case of the drink, and retailers 5+1 cases until the 31 March 2010, with afri-red available in various clubs, bars and other such locations across Germany. In other limited edition news, the young German fruit smoothie company True Fruits GmbH, although its premium positioned products are not functional in the strictest sense - rather healthy, and indulgent, alternatives to carbonated soft drinks, has unveiled its first short term addition in the form of an interesting pink dragonfruit-pear-banana-grape-lime mix. With 50,000 units available, the new True Fruits limited edition will be available at department store Galeria Kaufhof as well as through Rewe and Edeka supermarkets for €2.99 per bottle, and various clubs and bars. www.afri-cola.com www.truefruits.de
nutraceuticals
Europe
Active nutrition for senior consumers Nestlé Nutrition, subsidiary of Swiss food giant Nestlé, has launched a nutrient-rich beverage targeted at the elderly as part of its range of oral supplements. The new drink, designed to fight malnutrition amongst the elderly, is part of the Resource brand which currently includes Resource Protein, Resource Fibre and now Resource SeniorActiv. The latter has been designed to address not only issues of malnutrition, but also weight loss and loss of muscle mass as a result of poor nutrition and/or exercise, recuperation after illness or surgery, or to help regress muscular atrophy. To this effect, Resource SeniorActiv contains Acti3, a unique combination of 20g of protein per serving, 480mg of calcium per serving and 500 International Units (IU) of vitamin D in doses that have been clinically proven to reduce the risk of falls by 19% and fractures by 20%, which are a leading cause of hospitalisation for older people. Other ingredients include Prebio1, a proprietary prebiotic fibre blend of FOS (fructo-
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oligosaccharide) and inulin that helps promote digestive health.The beverage also provides omega3 and high amounts of B vitamins to support cognitive health and antioxidant zinc and selenium to address the oxidative stress and chronic inflammation that are part of normal ageing. In addition, Resource SeniorActiv is high in calories to stop weight loss and promote weight gain.The recommended dosage is two servings or two 200ml bottles per day. Richard Laube, CEO of Nestlé Nutrition commented on the launch, "Older people are generally vulnerable to malnutrition and can slip into a spiral of muscle and weight loss resulting in fatigue and loss of independence.Targeted nutrition can make a big difference and screening for malnutrition is vital to getting a grip on the issue as a whole." Resource SeniorActiv was first launched in midJanuary 2010 in Switzerland and was followed by launches in Austria, Belgium, Finland, Sweden, Italy and the Netherlands. As with the rest of Nestlé Nutrition products, Resource SeniorActiv is sold through pharmacies. The beverage is available in three flavours: Creamy Vanilla, Caramel-Toffee and StrawberryBiscuit, sold in four packs of 200ml bottles.
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functionaldrinks zenithinternational newsletter Page 6 Issue 183 28 April 2010
functional dairy
United States
Power-ful way to manage weight Minnesota-based dairy producer Old Home Foods has launched Safflower Power yogurt, the first yogurt in the US to be enhanced with conjugated linoleic acid (CLA), a naturally occurring fatty acid. Safflower Power yogurt contains Clarinol CLA from Lipid Nutrition, which is derived from natural safflower oil and has been clinically shown to help increase muscle tone and reduce body fat. Dr Marianne O'Shea, Director in North America for Lipid Nutrition said, "Safflower Power Yogurt was developed to provide a great tasting and uniquely nutritious yogurt to females and males that is highly differentiated from all the rest of the yogurts in the marketplace."
A substantial number of published clinical studies showing CLA and its positive effect on weight management and body composition led to it recently being determined as GRAS (Generally Recognized As Safe) by the FDA, and approved as an ingredient in certain food categories, including milk, yogurt, fruit juice, and meal replacement bars. The yogurt is packaged in 170g pots, with each pot containing 1.5g of CLA. If consuming 3g of CLA per day (equivalent to two pots of Safflower Power yogurt), along with a healthy diet and regular exercise, individuals can reportedly start to see improved body shape and tone in 8-12 weeks. Safflower Power yogurt is naturally sweetened, gluten-free and contains no high-fructose corn syrup.The product also contains active yogurt cultures with Lactobacillus acidophilus, Bifidobacterium lactis, Lactobacillus casei and probiotics. Launched on 1 March 2010, Safflower Power yogurt can be purchased in grocery stores in Minnesota, with a suggested retail price of US$0.83, and is available in eight flavours Strawberry, Blueberry, Marionberry, Red Raspberry, Black Cherry, Banana-Mango, Peach, and Pomegranate-Blueberry. www.safflowerpower.com www.oldhomefoods.com www.clarinol.com
energy drinks
France
U-turn towards own-label?
to follow suit.Whilst this was initially with new branded offerings, several retail chains are seeking to tap the potential, with already four of the top five hypermarket chains boasting an own-label energy drink.
Major French retailer Système U has entered the energy drinks market with an own-label offering.
In terms of design, Système U's Energy Drink distances itself from the leading energy drink brands Red Bull, Burn, Dark Dog and Monster by featuring colourful arrows and circles to appeal to teenagers and young adults of the so-called "Tektonik" generation.
Following in the footsteps of Carrefour and more recently Casino and Leclerc, the retailer's energy drink, modestly named Energy Drink unlike Leclerc's own-brand energy offering X-tense, is manufactured in the Netherlands.
Système U's Energy Drink, retailing for €0.81, is packaged in 250ml slim cans which are currently only sold individually.
Since Red Bull entered France, category growth has risen spectacularly and naturally led others
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functionaldrinks zenithinternational newsletter Page 7 Issue 183 28 April 2010
enhanced waters
Sweden
Seasonal flavour additions
for its sweetness and the latter for its fresh acidity.
Last month, March 2010, Carlsberg Sverige added two new variants to its functional water line. Joining the company's existing two Ramlösa Balans offerings, the latest summer-inspired and flavours are strawberry and rhubarb, the first
Both already popular summer tastes amongst Swedes, their combination with Ramlösa sourced mineral water is designed to bring multiple benefits to consumers. Packaged in 500ml bottles, the Ramlösa Balans enhanced waters retail for around SEK 17 through horeca outlets and for around SEK 10 in retail. www.carlsbergsverige.se
enriched beverages
United States
Once on the lips, no longer on the hips
offering spans seven flavours: XXX (açaíblueberry-pomegranate); Squeezed (lemonade); Rise (orange); Mega-C (grape-raspberry); Go-Go (mixed berry); Recoup (peach-mandarin); and Revitalize (green tea).
Coca-Cola Companyowned Glacéau has released its vitaminwater zero line of functional waters.
The new brand extension was to be available from March 2010. Packaged in 20oz bottles, the vitaminwater zero variants carry a suggested retail price of US$1.49 apiece. Four packs of 16oz bottles will retail for US$3.99 to US$4.99.
Sweetened with Truvia, a stevia leaf extract, and containing usual vitamin combinations, the calorie-free
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functionaldrinks in brief
Europe
France: Through the trade press, Refresco France is announcing the impending addition of a summer variant of its Lapin Pin-Pin energy drink.This will be sold between May and August and will carry a recommended retail price of €3.96 per four pack. According to French trade publication Rayon Boissons, the French energy drinks market has been characterised by being extremely competitive and consolidated, with Red Bull, Burn, Monster and Drak Dog commanding 90% of the market. Of all the challenger brands launched so far, only French-born Truc de Fou by Société MBM has secured any measurable success, posting impressive sales growth of 59% through large retailers in 2009. UK: PacificHealth Laboratories (PHLI) has
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partnered with Saddleback for the distribution of its Accelerade sports drink, Endurox R4 recovery drink and other sports nutrition products. Fred Duffner, President of PHLI commented, "Since the introduction of PHLI to the UK in 2009, we have been focused on endurance athletes and premier dealers who support them.We are partnered with a number of these athletes who have now become our brand ambassadors." Britvic is to launch PepsiCo's soft drink brand Mountain Dew in the UK in April 2010, reformulated and positioned as an energy drink . The Forum of Private Business has spoken out against Coca-Cola's Glacéau vitaminwater advert, which includes wording: "If you've had to use sick days because you've actually been sick, then you're seriously missing out.The trick is to stay perky and use sick days to just, not go in".The business organisation said it was "unacceptable to encourage
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functionaldrinks in brief workers to throw 'sickies' in order to sell a soft drink". Coca-Cola stated that the advert was in no way meant as a serious recommendation.
North America
US: According to research recently conducted at the University at Buffalo - a premier researchintensive public university, eating or drinking foods high in flavonoids alongside a high-fat, highcarbohydrate meal neutralises the oxidative and inflammatory stress generated by the unhealthy food. In a study, participants who drank orange juice along with a 900-calorie breakfast demonstrated a lower increase in free radicals as well as in blood components responsible for inflammation, obesity and insulin resistance among others.The researchers noted that the results do not mean that consumers can consume foods high in fat and carbohydrates and avoid health problems later in life. Sarah Robb O'Hagan, Gatorade Marketing Chief at PepsiCo said that the company re-branded its sport drink as G in an effort to appeal to 13-17 year old athletes who thought the brand was dated. PepsiCo expects to increase prices and raise sales by as much as 6% when unemployment subsides. DNA Beverage Corporation has announced that vending and direct sale delivery (DSD) distributor Baltimore Beverage will distribute the company's eponymous energy drink across the mid-Atlantic region of the US. Vita Coco has debuted Cocohead, the brand's coconut character that wears sunglasses and has a straw protruding from its head. Cocohead will infuse Vita Coco's latest campaign, which started in mid-March 2010 and will aim to differentiate the water from other brands of coconut water as well as from sports and energy drinks. According to Beverage Marketing Corporation, enriched waters and sports drinks experienced steep volume declines in 2009. Of these, CocaCola's vitaminwater saw a 13% decline compared
functionaldrinks zenithinternational newsletter
Editor: Jenny Foulds Deputy Editor: Cecilia Martínez Núñez Contributors: Charmaine Holmes, Laura Knight Market Intelligence Director: Esther Renfrew functionaldrinks is issued 25 times a year and is only available by subscription: electronic PDF format only £495; hard copy and PDF £595* *VAT chargeable on electronic format to UK companies and EC companies not registered for VAT
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to volume declines of 12.5% and 12.3% in enriched waters and sports drinks respectively.The only major brand to have posted volume growth was PepsiCo's SoBe Lifewater, jumping 63%. Soft drinks, meanwhile, saw sales drop 3.1% in 2009, with energy drinks and RTD tea the only subsectors to witness growth of 0.2% and 1.2% respectively. Bottled water declined in volume terms by 2.7%, with lower priced private label bottled water and Nestlé Pure Life boosting the sub-sector's volume through an increase of 14.6%.
World
The Coca-Cola Company (TCCC) has announced that it will launch a global campaign for Powerade, entitled "Keep Playing".This is the first global marketing campaign for the sports drink and will commence in time for the FIFA World Cup in South Africa in June. Powerade will be available at each game throughout the tournament.The brand activation efforts will be conducted in the top 20 markets where Powerade is sold, which account for 95% the brand's volume. In other TTTC campaign-related news, the company has launched a new television advert named 'epic night' for its Glacéau vitaminwater revive, asking consumers 'Have you ever woken up in the wrong side of the bed, minus the bed?' The advert states that the potassium and B vitamins in the beverage help to rehydrate.There is another advert named 'strong man' for the power-C variant.The advert states that the variant contains zinc and vitamin C 'to help support a healthy body' and highlights the need to replenish fluids, vitamins and minerals. According to other analyst research, the North American and European soft drinks markets have reached saturation point, hence the low growth in the category and why it is unlikely that the industry will see healthy growth once these economies recover. Companies were instead advised to turn their attention to niche drinks.
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