functionaldrinks zenithinternational newsletter This issue at a glance...
Page three France approves a relaxation drink
Page four Slovenians get aid to stay young
Page five Benefits of sunlight in a bottle
Page six Relaxation market insight
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Issue 206
23 March 2011
sports drinks
United Kingdom
Sports drink brand caters to all tastes GlaxoSmithKline (GSK) has recently expanded its sports drinks portfolio with two new beverages. The two new sports drinks fall under the popular Lucozade brand, which covers two subranges: Refuel which comprises isotonic sports drinks; and Rehydrate which includes lowcalorie hypotonic drinks. The first new drink is cherry flavoured and is now part of the five-strong Lucozade range (Orange, Mixed Citrus, Raspberry, Tropical and now Cherry). The second drink is Orange flavoured and joins the existing Lemon-Lime and Summer Berries Lucozade Sport Lite. Shona Hughes, Lucozade Sport Lite Senior Brand Manager, said, "Lucozade Sport Lite has been a fantastic success story. It particularly appeals to everyday exercisers and social sports participants who do not purchase or consume a sports drink because of calorie content, each 500ml bottle has only 50 calories. It was developed alongside top athletes and sports scientists to overcome this barrier and ensure quality. We are hoping to fuel continued success with the launch of this fabulous new Orange flavour." Meanwhile, Alex Saunders, Lucozade Sport Senior Brand Manager, commented, "Lucozade Sport is a trusted brand which is committed to fuelling great performances for consumers. To support the launch and drive awareness we are investing ÂŁ4 million in Lucozade
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Sport, which includes a nationwide Cherry sampling campaign. We encourage retailers to stock up now and put a cherry on top of their sales." To support the launch and drive awareness of Lucozade Sport Lite Orange among consumers, a fully integrated multi-million pound marketing communications campaign including TV, outdoor and press will start in April 2011. Point of sale (POS) materials will also be provided to allow retailers to take advantage of the marketing push. GSK is confident about the potential success of both beverages, as Lucozade Sport Lite, which was launched one year ago, reputedly already commands a 9.4% share having driven incremental category growth. Moreover, GSK claims that after it launched Lucozade Energy Cherry the company saw an increase of 68% in incremental sales for its energy drink. Lucozade Sport Lite Orange and Lucozade Sport Cherry are available in 500ml single and fourpacks. Both Orange and Cherry variants have been available since the end of February 2011. www.lucozade.com
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functionaldrinks zenithinternational newsletter Page 2 Issue 206 23 March 2011
editorial comment Welcome to the 206th issue of functionaldrinks.The emerging segment of alertness and relaxation drinks continues to grow as existing companies widen distribution and new ones enter the segment. This issue we report on the launch of a new relaxation drink that helps promote the onset of sleep by Bayswater Beverages LLC in the US (see below).We also cover the imminent launch in France of US-born Koma Unwind relaxation drink following approval by the French Ministry of Health (see Page 3). In the sports arena, we look at the introduction in Germany of two sports waters by Adelholzener Alpenquellen which are enriched with essential minerals (see Page 3). In the UK, GlaxoSmithKline (GSK) has launched two new variants under its sports umbrella brand Lucozade to better cater to all tastes (see Page 1).
Still in the UK, we look at the ever-growing energy arena, with the launch of SoBe Pure Rush energy drink, distributed in the country by Britvic (see Page 5). In France Space Spice has recently launched its first energy drink in the market with the intention of eventually expanding to sports gear and cosmetics (see Page 4). In Slovenia we look at Ljubljanske Mlekarne's new functional drinking yogurt designed to keep body and mind young (see Page 4). Back in the US, functionaldrinks spoke to Simply Originals about the re-vamp and extension of its beverage range (see Pages 6 and 7).We also report on the latest addition to Neuro Drinks' portfolio with a drink aimed at easing winter blues and boosting immunity (see Page 5). Finally, we cover Zenith's latest Alertness and Relaxation drinks report which highlights the growing popularity of the segment as well as the challenges and obstacles that lie ahead (see Page 6).
Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com
functional dairy
United States
No more counting sheep! Chicago-based Bayswater Beverages LLC has introduced Sleepyhead, a fluid dietary supplement to help people relax and to promote the onset of sleep. Sleepyhead is designed for anyone experiencing occasional difficulties falling asleep, and may also particularly appeal to frequent flyers and shift workers. Eli Galayda, Bayswater Beverages Director of Operations, said, "Unfortunately, life often gets in the way of getting valuable
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sleep, Sleepyhead is formulated to be a refreshing solution for the average person who is tired of tossing and turning all night." The toffee/caramel flavoured drink is all-natural and contains both milk and soy. The key active ingredients of Sleepyhead are melatonin, valerian root, gamma aminiobutyric acid (GABA), calcium and magnesium. Melatonin has been shown to help induce sleep and improve overall sleep quality whereas valerian root is known to improve sleep quality without morning grogginess. GABA is valued for having a relaxing and calming effect on the body, calcium aids the natural sleep cycle and magnesium can help relax muscles. The product is available in 5.5oz cans and is designed to be consumed 15 to 30 minutes before bed, either warm or cold. Each can contains 80 calories and the drink is sweetened with sucralose. Initially launched in retail stores in Chicago at the end of August last year, the recommended retail price per can is US$2.59. Sleepyhead can also be purchased from the company's website, priced at US$24.50 for an eight-pack.
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functionaldrinks zenithinternational newsletter Page 3 Issue 206 23 March 2011
nutraceuticals
France
Relaxation brand comes to France
to receive approval from the French Ministry of Health. Brian Weber, CEO of BeBevCo, has said the drink will have the same positioning in France as it does in the US, namely as an "anti-energy" beverage to help relax the mind and body after a long day at work or as an antidote to restless nights.
Bebida Beverage Company (BeBevCo) has just announced the imminent launch of its relaxation drink in France, marking a first for the country.
Weber also revealed that this is the company's first major roll-out in Europe and it has only just begun its full international marketing efforts, country by country.
According to BeBevCo, the company has received a letter of intent for the distribution of its Koma Unwind relaxation drink.The distributor will set up distribution channels across the country whilst BeBevCo develops French labels and continues its marketing efforts abroad.
Weber stated, "We have sent samples to numerous distributors around Europe and Asia, and we expect to receive many more letters of intent in the coming months."
Koma Unwind is reportedly the first such drink
Koma Unwind was first launched in the US in mid-2009. www.bebidabeverages.net
sports waters
Germany
Active start for mineral water firm As well as communicating news of a 1.7% increase in overall volume sales in 2010, Bayern's longest-standing mineral water company, Adelholzener Alpenquellen, has announced various new additions to its growing portfolio. Having witnessed growth of 5.7% for its returnable PET packaging format, the hundred year old business also unveiled an innovative 750ml individual glass bottle format at the start of the year for its Classic, Sanft and Naturell mineral water
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lines in the Bayern region. Around the same time the company also added a lemon variant to its successful line of oxygenated waters, Active O2, bringing the flavour count to eight (Lemon, Raspberry, Peach-White Tea, Orange-Lemon, Iced Berry, Apple-Kiwi, Cherry and Original). Also joining the mineral water firm's portfolio in 2011 is a dedicated 'functional' line to the Active O2 brand - Active O2 Function - which has been initiated with two variants - one enriched with magnesium and the other with calcium. Active O2 Apple Lemon Mg reportedly contains a third of the recommended daily allowance (RDA) of magnesium per 750ml bottle (100mg of the mineral), with the words 'Muscle Function' clearly displayed on the product label as per agreement with the EU Health Claims regulators. Similarly, Active O2 Cherry Blackcurrant contains a third of the RDA of calcium and has EFSA approval to promote the mineral's bone health or 'Bone Structure' properties on the product packaging.
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functionaldrinks zenithinternational newsletter Page 4 Issue 206 23 March 2011
energy drinks
France
Energy drink is the 'spice' of life Space Spice, a recently established French company, has launched its first product in the form of an energy drink.
The company explained that its name was inspired by its philosophy that all consumers are different but equal at the same time. According to the company, consumers are different and this adds 'spice' to life, whereas the word 'space' indicates a place where consumers get together to share their differences and similarities, such as the Internet and social networking sites. As part of its plans for the future, the company has revealed that it aims to launch a range of sportswear as well as a line of cosmetics under the same brand.
Featuring the same name, the energy drink is targeted at young adults aged 15 to 25 and was designed to provide them with the necessary energy for everyday life. Space Spice energy drink features energising ingredients such as caffeine and taurine. Its taste, which could be expected to have a hint of spice given its name, is actually described by the company as being sweet and similar to that of other energy drinks.
Space Spice is already being distributed to hyper and supermarkets, convenience stores and through horeca channels. Space Spice is sold in 250ml cans retailing for approximately â‚Ź1.35 apiece. www.spacespice.fr
functional dairy
Slovenia
Stay youthful with new yogurt drink Slovenian dairy company Ljubljanske Mlekarne has extended its probiotic yogurt range Ego to include a new drinking yogurt, Ego Age Protect. Launched in October 2010, Ego Age Protect claims to be the first yogurt drink that helps keep the body and mind young.The product is primarily targeted at active and health-conscious women and men aged 35 to 45 who are facing the first signs of ageing. The drink contains three key ingredients: Q10, choline and pantothenic acid. Q10 protects from the harmful effects of free radicals and therefore helps prevent premature ageing. Choline is an essential ingredient in the synthesis of acetylcholine, which has an important effect on the functioning of the nervous system, therefore helping
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with memory and cognitive function. Pantothenic acid also plays a key role in the creation of acetylcholine and it is also essential in energy metabolism, normal brain activity and the functioning of the nervous system. Ljubljanske Mlekarne has an advertising campaign planned to promote the product in the Slovenian market during 2011 which includes TV, radio and print advertising, outdoor advertising, POS promotions and product sampling in venues such as wellness/fitness centres. Ego Age Protect is available in three flavours: Natural, Strawberry and Raspberry & Lemon, in 125g bottle three-packs. Available for purchase in Slovenian retail stores, the dairy drink has a recommended retail price of â‚Ź1.49 per pack.
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functionaldrinks zenithinternational newsletter Page 5 Issue 206 23 March 2011
energy drinks
United Kingdom
New energy drink launch brings Miami sunshine British soft drinks giant Britvic is launching an energy drink originating from Miami on to the UK market. SoBe Pure Rush, one of the PepsiCo-owned SoBe brand range comprising flavoured waters and RTD iced teas in the US, contains a range of energising ingredients such as caffeine, ginseng and guarana, and is free from artificial colours and flavours. The product line will be available in two variants: Apple Berry Burst and Tropical Twist.
portfolio in the UK, aim to build on the success of the SoBe brand in the countries where it is available where it has reached sales of £570 million. Head of Seed Brands at Britvic, Jon Evans, commented, "SoBe Pure Rush is a great-tasting energy drink that will offer consumers something completely different. Research shows that the number of people buying stimulant drinks is in decline recently, because people don't like how they taste and because they're full of artificial ingredients. Pure Rush has been designed to address this. We are confident it will bring new shoppers into the category and help grow sales in the stimulant drink segment, which is now worth £399 million." Britvic also revealed that it had commissioned brand design agency Blue Marlin to re-design PepsiCo's SoBe Pure Rush energy drink ahead of its launch in the UK. Distribution of the energy drinks will be focused around convenience stores including WHS Travel, BP and select cafés and delis. SoBe Pure Rush carries a recommended retail price of £1.39 for a 250ml can.
Both PepsiCo and Britvic, which bottles and distributes PepsiCo's
www.britvic.co.uk
enriched beverages
United States
Drink offers a ray of sun to consumers
drink provides only 35 calories per serving.
Neuro Drinks has recently expanded its line-up of functional drinks with a variant that claims to help consumers beat the winter blues. The new drink is called Neuro Sun and was designed to help consumers obtain the full recommended daily value of vitamin D. Each 14.5oz bottle provides 1,000 International Units (IU) of the vitamin; which is the recommended intake to help maintain a healthy immune system, bones and heart, and improve mood.
Neuro Drinks cites recent research which suggests that 53% of women in the US have insufficient levels of vitamin D in their bodies, putting them at risk of developing health problems such as osteoporosis and depression. The company has been busy promoting the new drink through various social networking sites such as Twitter. It has also appeared in online magazines and blogs to further increase product awareness. Neuro Sun is available online through the company's website as well as through select cafés, convenience stores and pharmacies in the North East region of the US. Neuro Sun retails for US$36.99 for a pack of 12 bottles online.
Neuro Sun is tropical-flavoured made using natural flavours and colours. In addition, the
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functionaldrinks zenithinternational newsletter Page 6 Issue 206 23 March 2011
nutraceuticals
World
Helping consumers stay on top of their game
aminobutyric acid).This market has now matured, but it influenced an explosion of innovation in the US. In Europe the market is just beginning to emerge, but it is hampered by a changing regulatory environment and the full impact of imminent legislation is yet to be seen.
The new phenomenon of alertness and relaxation drinks, which has developed out of the energy drinks category, has risen in less than five years to a retail value of US$521 million.
"Alertness and relaxation drinks serve a different consumer need to energy drinks," added Cecilia Martinez. "They allow stressed consumers to purchase products over the counter that can help them unwind and focus better or sleep better."
A new report by Zenith International on the five key country opportunities of the United States and Canada, Germany, the United Kingdom and Japan estimates that sales volumes have trebled since 2007 to 133 million litres in 2010, with the US becoming by far the largest national market. "Consumers are now looking for products to help them deal with pressure and to perform effectively without the use of stimulants," commented Zenith Market Analyst Cecilia Martinez. "Alertness drinks are designed to reduce stress and focus the mind. Relaxation drinks usually contain ingredients solely to assist relaxation and in some cases to aid sleep." The concept of alertness and relaxation drinks started in Japan in 2005 with a flurry of products enriched with GABA (gamma
Active ingredients in alertness and relaxation drinks include: vitamin, mineral or plant-based; amino acids such as Ltheanine; or hormones, mainly melatonin. Most drinks contain a combination of active ingredients. One particular challenge is to educate and reassure the consumer of their safety and benefit. Zenith's report includes over 25 brand profiles, with a commentary on the consumer positioning of each and the market's potential for the future. Alertness and relaxation drinks are forecast to see continuing annual growth of over 20% to 2013. The new Zenith Report on Alertness and Relaxation Drinks contains 81 pages of market commentary, charts and tables together with brand profiles. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail mi@zenithinternational.com.
enriched beverages
United States
US beverage has it all! Having entered the US functional drinks market in May 2008 with two Andean-inspired functional beverages, Simply Originals has been working hard on maintaining the momentum by bringing its range bang up to date and adding two new line extensions. The range has been given a new lease of life with
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updated labelling, following feedback from customers. functionaldrinks spoke to Simply Originals' Meghan Varas about the changes and what the company hopes to achieve. She commented, "We hope to increase brand recognition as well as delivering a clearer overall communication to the consumer about what's inside the bottle. For instance, instead of just referring to our drink as 'Purple Corn beverage,' we are now first and foremost bringing forward the true traditional name of the beverage, Chicha Morada, with secondary identifier as 'A Purple Maize Infusion.'" Similar changes have been made to the Flaxseed beverage, with a secondary identifier, 'An Herbal Infusion', whilst the labels on both products have been rejigged with contrasting colours to make it easier for the end
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functionaldrinks zenithinternational newsletter Page 7 Issue 206 23 March 2011
enriched beverages
United States
(continued from Page 6) consumer to read the label. In addition to these changes to the existing lineup, the company has also been working on two new line extensions of the original Flaxseed Herbal Infusion: Simply Originals Flaxseed Green Tea Infusion and Simply Originals Flaxseed Green Tea Mandarin Infusion.Varas commented, "It was a common sense next move, as many consumers already know what our original Flaxseed Infusion tastes like and/or enjoy flaxseed as a natural additive to their daily diet.We've been testing the Flaxseed line extensions in local markets with a
soft launch, and are now getting ready to roll them out to our main distributor to reach our customers like Whole Foods Market." Ensuring that the company has a clear understanding of consumer requirements and that consumers have a clear understanding of the range itself is paramount to Simply Originals, as Varas added, "We will have more extensive feedback following our full roll-out throughout the Northeast of course, but preliminary feedback supports our decision as being the right next move for our Brand." Varas concluded, "We still hold true to our original premise that good for you can also taste good. Surprisingly, Simply Originals' line of beverages is one of the few brands in the US that offer this.The American consumer is still largely under the misconception that good taste and good for you cannot be one in the same; we disagree." Purple maize has higher antioxidant levels than other 'purple' super fruits thanks to its anthocyanin C3G content, one of the most potent antioxidants in existence, whilst flaxseed is valued for its plant derived omega3, fibre and antioxidant content. www.simply-originals.com
functionaldrinks in brief
Europe
France: According to SymphonyIRI data, the turnover for energy drinks increased 8.5% in the year to the end of November 2010 through hyper and supermarkets. Moreover, volume sales rose by 13.2% whilst the number of offerings grew by 10.1%.The category was the strongest within the soft drinks market followed by cola drinks and RTD tea. UK: PepsiCo has said it will relaunch Gatorade as a sports performance brand for athletes and amateur fitness fans. Communications that have been successful in the US, where the brand commands about 75% of the category, will be tailored to the UK, where it has just over 1% share. GlaxoSmithKline (GSK) has teamed up with digital music service Spotify, through Lucozade Energy, to launch an on-pack promotion. Consumers can win unlimited music by voting for their favourites songs; other prizes include concert tickets.The promotion will appear on all Lucozade Energy pack sizes and multi-packs and will run until the end of May.
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In other company news, GSK has recalled all bottles of Lucozade Sport Lite Summer Berries due to an unpleasant smell and taste from the product caused by mould growth. All 500ml bottles and multipacks were affected and have been withdrawn. According to retail sales data, sales of sports and energy drinks outsold sales of cola drinks through the impulse channel. In 2010, value sales of sports and energy drinks have been estimated to have risen by 16% across all retail channels and by 16.3% through impulse. Red Bull has earmarked ÂŁ1.5 million to activate the "Workplace" campaign that will aim to educate employees about the benefits of consuming Red Bull at work.The campaign targets consumers on their commute to work and will be focused at rail stations and forecourts. In other company news, Red Bull has unveiled three new ads to be shown in cinemas and on TV; two of which will be shown in 3D at cinemas.
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functionaldrinks zenithinternational newsletter Page 8 Issue 206 23 March 2011
functionaldrinks in brief Thirsty Drinks, producer and distributor of White Tiger organic energy drink, has been promoting its eponymous energy drink in the trade press.The company is highlighting the characteristics of White Tiger as well as the company's plans to widen its distribution. Rockstar Inc has signed a multi-year sponsorship agreement with MotoGP world champion Jorge Lorenzo. Adrian Troy, Head of Marketing for AG Barr, which distributes the drink in the UK, commented, "We will be celebrating the sponsorship with a host of special activities and promotions across all channels, including offering retailers and consumers the chance to win VIP weekends and the chance to meet Jorge Lorenzo at the Great Britain MotoGP on June 12 at Silverstone."
North America
Canada: Archer Daniels Midland (ADM) has licensed the rights to produce, market and sell Clarisoy soy protein from Burcon NutraScience.The agreement is for 20 years and covers all geographic regions and all product applications. US: Innovative Beverage Group has added Adam's Beverage, an independent distributor in the Carolina markets, for the distribution of Drank relaxation drink across North and South Carolina. Recent estimates suggest that the energy drinks category saw growth of 11.1% in volume in 2010 whereas sports drinks volume sales rose 12.3%. Both categories saw stronger growth thanks to a more dynamic economy. The Food and Drug Administration (FDA) has sent a letter to Lifeway Foods requesting it to change the wording of its website as the company makes claims that are contrary to the provisions of the Food, Drug and Cosmetic Act.
functionaldrinks zenithinternational newsletter
Editor: Anya Hembrough Deputy Editor: Cecilia Martínez Núñez Contributors: Jenny Foulds, Laura Knight Commercial Consultant: Matt Wilton 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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Dr Pepper Snapple Group (DPSG) has announced its energy drink Venom will continue to sponsor NASCAR driver Marco Andretti, part of the Andretti Autosport team. Bebida Beverage Company has partnered with Sunny Wholesale for the distribution of its energy and relaxation drinks in the state of Georgia. According to retail sales data, Coca-Cola's Powerade outperformed PepsiCo's Gatorade during the fourth quarter 2010. Powerade volume sales for the period increased 20%, whereas Gatorade saw sales increase by 11%. Neuro Drinks has been named the official 'Hydration Partner' of the 2011 Amica 19.7 Sprint Triathlon Series. According to the triathlon organisers, the Neuro range provides athletes with much needed nutrients to help them perform at their best. NOHO has been promoting its anti-hangover drink in the trade press. According to the company, its eponymous shot is currently the only such drink in the market to be sold in shot format that provides safe and effective hangover protection. NOHO is sold through Circle K, AmPm and 7Eleven convenience stores. Dream Water, producer of the eponymous relaxation drink, is promoting its nutraceutical in a bid to increase distribution. Dream Water is already distributed by Polar Beverages in the New England region, Geyser Beverage in San Francisco and Sunshine State in South Florida. Xyience has signed an agreement with Circle K to expand distribution of its Xenergy drink to national level, making it available in all 4,200 locations of the convenience store chain. Xyience has recently completed another agreement with Couche Tard in Canada for the national distribution of Xenergy through the chain.
7 Kingsmead Square Bath BA1 2AB United Kingdom t +44 (0)1225 327900 f +44 (0)1225 327901 e functionaldrinks@zenithinternational.com www.functionaldrinksnews.com No part of this periodical may be reproduced in any form, copied or stored electronically without prior permission in writing from the publisher. Every effort is made to verify all information published, but Zenith International cannot accept responsibility for any errors or omissions or for any losses that may arise as a result.
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