110622_FD_Issue 212

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functionaldrinks zenithinternational newsletter This issue at a glance...

Page two Desert fruit boasts multiple benefits

Page three Energy drinks go small in Brazil

Page five Relaxation drink enters Mexico

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22 June 2011

functional dairy

Spain

Breakfast staple now features added benefits Central Lechera Asturiana (CAPSA) has expanded its portfolio of functional milks with a trio of offerings that target three distinct health problems.

Page four Peruvian dairy debuts yogurt

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The first variant is called Naturcol and is designed to help lower cholesterol as it contains plant sterols which have been approved by the European Food Safety Authority (EFSA) in addition to containing omega-3 which has been shown to help control blood cholesterol levels when 2g of the fatty acid are consumed on a daily basis.

The second milk is Jalea Vital which contains, as its name suggests, royal jelly, and vitamin B6. One glass of Jalea Vital provides 50% of the recommended daily intake (RDI) of vitamins A, B1, B5, B6, B12, D and E in addition to providing 50% of the RDI of selenium and zinc and 37% RDI of calcium. Jalea Vital is designed to boost the immune system. Research suggests that royal jelly stimulates the production of antibodies and is safe to be consumed by children and pregnant women alike. The third variant is Fibra, a fibre-enriched milk that aims to help consumers reach 40% of the RDI of dietary fibre. One 250ml glass of Fibra contains 10g of Regulaplus-branded fibre, a blend of inulin and digestion-resistant maltodextrin which supports the growth of good bacteria in the gut as well as stimulating digestion and improving the absorption of calcium and lipids. The line-up is packaged in the newly launched Tetra Pak Evero Aseptic bottle in 1 litre formats.

Naturcol is thus targeted at consumers who are simply looking to balance their cholesterol levels and can do so by drinking one 270ml glass a day, as well as those who are actively trying to lower bad cholesterol, which can be achieved by drinking two glasses of the milk per day. Naturcol is recommended by the Spanish Heart Foundation.

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The three functional milks have been available for sale since April 2011 and can be bought through a wide range of retail outlets where other CAPSA products are sold. www.naturcol.es www.jaleavital.es www.lecheconfibra.es X

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functionaldrinks zenithinternational newsletter Page 2 Issue 212 22 June 2011

editorial comment This 212th issue of functionaldrinks represents an exciting milestone for the newsletter because from next issue we will be going digital! Rest assured, you will still be receiving the same exciting collection of insightful and informative articles on ground-breaking functional drinks from around the world, but in a faster, securer and more convenient format. From issue 213, Zenith International will be handing over production of the newsletter to our sister company FoodBev (www.foodbev.com). So what does this mean for you? You will still receive the fortnightly email, which, rather than containing the newsletter as a pdf attachment, will contain a link from where a digital version of the newsletter can be accessed and downloaded.The functionaldrinks website (www.functionaldrinksnews.com) will continue to run unchanged, where you can access the

searchable archive of past pdf newsletters. From July, however, all new issues of the newsletter will be found in their digital formats on the FoodBev site and over the next few weeks, we will be converting all back copies into digital format and storing them on the FoodBev site also. As on the functionaldrinks website, you will retain full searchable access to all issues of functionaldrinks but in a much more convenient and usable format.To access the new digital archive, you simply need to create a new account on the FoodBev site (www.foodbev.com/register) or just contact FoodBev who will be more than happy to talk you through the process.We hope you enjoy this exciting upgrade to functionaldrinks and appreciate the added functionality it represents! Myself and Deputy Editor Cecilia Martinez have thoroughly enjoyed compiling the newsletter over the past few years and are confident that this marks the next step in its growth. As ever, we look forward to hearing about the latest developments within the functional drinks sphere, so please do keep in touch and keep sending us your functional drinks news! Anya Hembrough, Editor anyah@zenithinternational.com Cecilia Martínez Núùez, Deputy Editor cm@zenithinternational.com

wellness beverages

United States

Desert fruit does wonders for health TriVita, producer of nutritional supplements, has launched a beverage it claims can reduce inflammation and thus relieve pain. The beverage is called Nopalea as it is derived from the nopal cactus (Opuntia Ficus Indicsa). Nopal is said to contain a rare and powerful class of antioxidants called betalains which have been scientifically proven to reduce inflammation as well as help the body detoxify itself. According to the company, reducing inflammation is very important, as this and free radicals are the result of the body being overexposed to toxins, direct trauma, nutritional deficiencies and stress. As a result, a cell overwhelmed by inflammation may be damaged beyond repair, causing the cell to die prematurely. Damaged dead cells must be removed from the body or they will become

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the focus of infection and illness. The betalains contained in Nopalea thus help prevent illness by helping 'unhealthy' cells drain themselves of toxic substances and return to a healthy state. Nopalea is sweetened with agave nectar and is free from artificial sweeteners, flavours, colours and preservatives. TriVita suggests consuming 3 to 6oz of Nopalea for the first 30 days, followed by a 'maintenance' dose of between 1 to 3oz depending on individual needs. Nopalea can be bought online through the company's website at www.trivita.com, and to encourage trials, the company is offering first time buyers a free 32oz bottle which is accompanied by the Nopalea Challenge Form that consumers fill throughout their first bottle to help them track their progress. A four-pack of 32oz bottles retails for US$139.99.

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functionaldrinks zenithinternational newsletter Page 3 Issue 212 22 June 2011

wellness beverages

Germany

Encapsulating fruit drink design In an interesting diversification from its existing product portfolio, water filter specialist BRITA GmbH has introduced a new capsule system for fruit drinks that takes its inspiration from the coffee industry. Providing a freshly prepared and unique taste experience at the touch of a button, BRITA's

capsule technology, with its simple yet sophisticated design, is positioned as a handsome addition to any household. Delivering filtered water in nine 100% natural

flavours and across three product lines - yource Kapsel fruits, yource Kapsel plus and yource Kapsel balance - BRITA's latest concept combines its leading Maxtra filtration technology with various tastes to give an individual drink experience. Each yource capsule results in a 500ml water-based beverage with a different dimension. yource Kapsel fruits is available in peach-passion fruit, lemon-guava and forest fruit variants, whilst yource Kapsel plus comes in strawberry, redcurrant and peach versions, the first two of which are enhanced with calcium and B vitamins and the latter containing added vitamin C. yource Kapsel balance meanwhile has a herbal angle for the health conscious and more adventurous consumer.Available in applepassion fruit-lotus berry, pear-melissa balm and orange-lemon-green tea flavour variants, this last product line is designed to deliver a harmonious balance of ingredients. As well as representing an interesting flavour extension to otherwise plain filtered water, BRITA's new machine is dishwasher-safe and equipped with LED displays to indicate when a filter needs changing.And in the event that capsules are used up at a greater rate than consumers re-stock them, the machine works perfectly well alone, delivering the filtered water taste to which BRITA enthusiasts have become accustomed. Available across Germany via Media Markt and Saturn from the end of May 2011, the BRITA yource system can be purchased for €179, with a pack of eight capsules priced at €5.99. www.yource.de

energy drinks

Brazil

New shots provide energy as fast as a bullet Grupo Pétropolis, Brazilian producer of beer and spirits, has unveiled what appears to be the country's first energy shot. Grupo Pétropolis first entered the functional arena with an energy drink called TNT back in 2009, which was then followed by a sugar free variant.The latest addition is aptly called TNT Energy Drink Bullet and has the same formulation as its 'long' counterparts, namely

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carbohydrates, caffeine and taurine. TNT Energy Drink Bullet is designed to be consumed on-the-go as it is highly portable thanks to its size and shape as well as not requiring refrigeration as it is not carbonated. It is available in regular and sugar-free variants. The launch will be supported by adding the shot to the brand's sponsorship activities which include Brazilian motorsports drivers and athletes from sports such as synchronised swimming, football, surf, skate, jiu-jitsu, wakeboard, mixed martial arts and parachuting. The 60ml energy shot is sold nationwide for R4-6 alongside TNT Energy Drink which is packaged in 269ml slim cans.

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functionaldrinks zenithinternational newsletter Page 4 Issue 212 22 June 2011

energy drinks

United States

Caffeine or no caffeine?

the leading energy drink brands at 195mg of caffeine and 50mg of yerba maté per bottle. HYDRIVE Extra Strength also provides just 30 calories per bottle and is available in Black Cherry flavour.

HYDRIVE Energy has introduced two eponymously branded offerings to cater to distinct consumer segments. The inspiration for the new offerings came from extensive sampling of the company's other energy drinks. Mike Weinstein, Chairman and 'Energy Czar', explained, "25% of consumers don't drink caffeine and whenever we sampled our products, we always said, 'We wish we had something to give these people’. So when we decided to extend the product line, instead of adding another flavour, we decided to simultaneously come out with a product that had more caffeine [than our regular line] and then another with none at all." HYDRIVE Decaf is thus caffeine and taurine-free and provides vitamins B3, B5, B6 and B12, dribose and choline.The variant contains only 30 calories per bottle and is available in Wild Peach flavour.

Weinstein also said that the company worked with a group of students from Harvard Business School to develop a novel digital marketing programme that would use Quick Response (QR) codes on the packaging of the new variants. When the codes are scanned, consumers are taken to a mobile site offering a constantly changing array of wacky fitness trivia, contests, free prizes and product information. Charly-Ann Oddo, HYDRIVE Director of Marketing and Digital Media, added, "By developing a mobile site that delivers changing content on every scan, we digitally replicated the "under-the-cap" promotional experience often used in traditional soft drink marketing." The low calorie, non-carbonated energy drinks are sold through over 30,000 stores across the country. As with the rest of the variants, Decaf and Extra Strength are packaged in 460ml bottles.They retail for between US$1.49 to US$1.79 apiece or US$2.25 if bought online through the company's website.

On the other side of the spectrum, HYDRIVE Extra Strength contains 20% more caffeine than

www.hydriveenergy.com

functional dairy

Peru

New yogurts launched for smart children Peruvian dairy company Gloria, wholly-owned subsidiary of Grupo Gloria, has recently introduced a drinking yogurt for children.

research suggests that babies who are fed diets higher in DHA have better mental and visual function. Meanwhile, choline is a member of the B vitamin family and is essential for brain health and development as well as for nervous system health. Choline is important during foetal brain development, where it can influence lifelong memory and learning.The nutrient has also been linked to heart health, breast cancer prevention and lowering rates of dementia. Niños appears to be the first functional drinking yogurt targeted at infant brain health and development and is currently available in two variants: Banana and Granadilla (a fruit similar to passion fruit).

The new yogurt, simply called Niños, is enriched with DHA and choline. DHA has been identified as critical for the optimal development and function of the brain, eyes, and central nervous system during infancy and childhood. DHA makes up a large portion of the brain and the retinas of the eyes, which means the requirements of DHA are high during this period of growth. In addition,

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The yogurts are sold through retail outlets and are packaged in 1kg and 200g bottles. www.gloria.com.pe

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functionaldrinks zenithinternational newsletter Page 5 Issue 212 22 June 2011

nutraceuticals

Mexico

Soda-loving nation gets healthy options Funktional Beverages, producer of My Purple Stuff nutraceuticals, has announced the imminent launch of its range in Mexico. The company has partnered with distributor Apache Brands, formed by former Coca-Cola FEMSA executives as a brand incubator, builder and distributor.The distributor's non-alcoholic portfolio includes Zico coconut water, Muscle Milk, Sweet Leaf teas, Adina,Voss waters, 28 Black, Pop Chips and GNU sticks. Apache Brands recently completed test marketing Superliminal Purple Stuff, Funktional Beverages' relaxation drink, and so far the brand has performed well in the 30 stores where it is sold in Mexico City. Fernando Gomez Pimienta, one of the owners of Apache Brands stated,

"The product immediately started rotating at 2-3 cases per week of each of the three flavours per store without any advertising; other than mentioning it once on the Texas Facebook site of mypurplestuff.com.We are extremely selective in the brands that we decide to build and distribute in our market.We have followed the relaxation category for the past year and have been waiting for a brand to separate from the pack and that had a message that would resonate with the youth in Mexico that drink so much soda with HFCS [high fructose corn syrup], high calories and no nutrition." Pimienta added, "The Mexican government has stricter regulations than the FDA, and the fact that Purple Stuff uses only 100% FDA GRAS ingredients and did not cause drowsiness but calmed kids down allowed us to import this wonderful brand which is healthier than other sodas into our beautiful country.The fact that it makes children smile and laugh is just another blessing for us." Superliminal Purple Stuff is a range of relaxation drinks formulated with vitamins B3, B5, B6, B12 in addition to calming ingredients like rosehips, valerian root extract and L-theanine. Superliminal Purple Stuff is available in three variants: Classic Lemon-Lime, Classic Grape and Berry Calming.The carbonated relaxation drinks are packaged in 16oz cans. The drinks will be sold through major supermarket chains like Superama and Wal-Mart as well as a large number of independent stores. www.mypurplestuff.com

nutraceuticals

United States

Alcoholic drinks join the fight against ageing Skinnygirl Cocktails, producer of Skinny Margarita pre-mixed cocktail, has partnered with Scott Vincent Borba of Borba, which produces an eponymous range of cosmetics and beauty drinks.

The three-strong range consists of Watermelon Kiss which is made with vodka and is designed to help even out skin tone; Sweet Enchantment also contains vodka in addition to vitamins and minerals that help clam down overactive oil glands. Finally, Dollhouse Love is made with Grey Goose-branded vodka and has added cucumber, lemon and black pepper to give it a refreshing flavour as well as walnut husk which is known to help un-clog pores as well as pomegranate and green tea extract to delay the signs of ageing. Skinnygirl has not made public through which channels the cocktails will be sold, however, it has said that each pre-mixed cocktail will have a suggested retail price of US$22.

Under the partnership, Skinnygirl and Borba developed a line of cocktails enriched with skin boosting ingredients, each with a different formulation to tackle distinct skin issues.

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functionaldrinks zenithinternational newsletter Page 6 Issue 212 22 June 2011

sports waters

United States

Mineral replacement made easy and tasty! elete Electrolyte, producer of electrolyte concentrate sourced from Salt Lake in Utah, has launched a new electrolyte concentrate in the US targeted at athletes and workers alike. The new elete CitriLyte AddIn is a patentpending electrolyte concentrate formulated to re-hydrate, support muscle function, heat tolerance, energy conversion and replace a complete balance of electrolytes lost in sweat without providing calories, sugars or artificial ingredients. CitriLyte contains zinc and citric acid, which participate in the Krebs cycle (also known as the citric acid cycle) for energy conversion. The company claims that elete CitriLyte Add-In is more efficient than water alone, and is less expensive and requires less clean up than sports drinks.

Similar to the original elete Electrolyte Add-In, CitriLyte can be used in hydration packs, bottles and coolers without staining or leaving a lingering colour or flavour residue. CitriLyte is available in a range of pack sizes: 2oz refillable bottle that makes 20 servings/5 gallons for US$7.50, 4oz refillable bottle that makes 40 servings/10 gallons for US$12.50, 250ml refillable bottle that makes 83 servings/20 gallons for US$18.50, 32oz 'Team Size' that makes 320 servings/80 gallons for US$48 and a one gallon container that makes 320 gallons for US$154. In addition to CitriLyte's convenience and portability, Anderson also stressed the concentrate's environmentally friendly credentials. Anderson stated, "Both original elete Electrolyte Add-In and elete CitriLyte Add-In are electrolyte concentrates, which means consumers aren't paying for a sports drink or electrolyte-replacement product that they're going to drink once and then throw away. Even if an athlete just purchases the smallest refill bottle, the 2 oz, that little bottle makes twenty, 8 oz servings, which goes a long ways on the trail, road, court, and fairway." CitriLyte has been available since April 2011 and can be bought online through a range of specialist sports stores.

Val John Anderson, Director of Sales and Marketing for elete, commented, "We are very excited to release the new elete CitriLyte AddIn as it is the culmination of a product development effort that has spanned more than seven years. Our plan was to introduce this product in late spring to a limited number of markets, but those who have already had a chance to try it have applied a sufficient amount of pressure for us to launch earlier than anticipated and across markets. It has been a very happy problem in that it has been difficult to keep samples of the product in stock. Even some people who have been avid supporters of the original elete Electrolyte Add-In and who didn't think that such a subtle difference as a very light, tart flavour would be a very big deal, have already come back to excitedly share that their usage has gone up significantly with the new CitriLyte Add-In."

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functionaldrinks zenithinternational newsletter Page 7 Issue 212 22 June 2011

functional dairy

United Kingdom

Tasty one-a-day solution for reducing cholesterol Raisio, Finnish manufacturer of the cholesterol lowering ingredient Benecol, has added a new variant to its range of yogurt drinks. The new yogurt drink is raspberry flavoured and is designed to be consumed once daily, helping consumers incorporate foods and beverages that can lower bad cholesterol levels without having to make drastic lifestyle or dietary changes. The new variant provides just 36 calories per 67.5g

bottle as well as 30% of the recommended daily allowance (RDA) of vitamins B6 and folic acid. Other variants in the one-a-day range include Pineapple, Peach & Apricot, Strawberry, Original and Light. Esther van Onselen, Associate Franchise Director Benecol Europe, commented, "Our goal is to develop foods that consumers will love whilst helping them to lower their cholesterol. Our consumer research has revealed that there was a real desire for a raspberry flavour yogurt drink and our consumer testing trial revealed that the flavour was an instant hit. Consumers are paying more attention to simpler ways to lower their cholesterol and Benecol's one-a-day Raspberry Yogurt Drink fits perfectly with this need." According to Raisio, Benecol has a 70% share of the UK cholesterol-lowering drinks market, representing 17% value share, or ÂŁ38 million, of the total ÂŁ224 million yogurt drinks market. www.benecol.co.uk

energy drinks

Germany

German market experiences surge in energy Since last year and carrying on into 2011, the German energy drinks market is reported to have been undergoing changes of both a dramatic and long-awaited nature. With the arrival of Coca-Cola and PepsiCo in the sector, it is pricing within the category in particular that has been the subject of considerable focus in the face of market leading Red Bull. "The German

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market is experiencing extreme change," commented a PepsiCo manager.With the entrance of the brands Rockstar (PepsiCo), Relentless (Coca-Cola) and Monster (Trend Beverages/Deutsche Si Si Werke) in early 2010, the following summer saw a 16% increase in energy drink volumes sold through supermarket and discount stores, petrol forecourts, warehouses and drug stores to reach 148 million litres. And the impetus afforded by the injection of new blood into the market has continued this year. The future still looks promising for long-standing category champion Red Bull, which is said to have enjoyed a weighted distribution of 92% last year, Rockstar around 37%, Relentless 25% and Trend Beverages' licensed brand Monster 18%, however market dynamics are in a phase of fluctuation. That said, the 'newcomers' are yet to stamp out their ground and command any real market share. Red Bull has a 30% hold of the market in volume terms, and double this in respect to value.The brands Relentless and Monster have a minimal less than 1% share of the market, with Rockstar also still similarly small. However, after barely a year in the market, Coca-Cola's Relentless brand, which has been successful in securing a following in many other countries, is said to have doubled its internal volume sales expectations. So watch this space for further changes in the market.

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functionaldrinks zenithinternational newsletter Page 8 Issue 212 22 June 2011

functionaldrinks in brief

Europe

UK: Coca-Cola has launched a cinema ad to promote its Relentless brand, entitled 'Virtues', as part of its summer campaign.The campaign also includes a competition via Facebook in which consumers have the opportunity to win a trip to Las Vegas. In other company news, it has emerged that record company Relentless Records has filed a writ for breach of trademark against CCE for the exclusivity of the Relentless brand name. Reportedly, the music company was established years before the energy drink was introduced. The company wants CCE to stop using the brand name and is also seeking damages for trademark infringement. In the UK, PepsiCo has appointed Hayley Stringfellow as Gatorade and Sports Nutrition Marketing Director. Stringfellow previously held a similar position in the Quaker Oats UK division and will now report to Andy Williams, Senior Vice President and General Manager, Franchise Centre of Excellence and Sports Nutrition.

US: Skinny Nutritional Corporation has publicised that its eponymous beverage is now available through all 75 Quality Food Centers in the metropolitan areas of Seattle and Portland. According to recently released retail data, sales of energy drinks in the US grew more strongly in 2010 than in 2009 thanks to improved economic conditions. Energy drink volume growth has been estimated to have reached 8.9% for 2010, compared to growth of only 0.1% the previous year.The top three performing brands are Rockstar whose volume rose by 19%, Red Bull with 13% and Monster with 10.7% growth. Ajinomoto AminoScience LLC has announced its Amino Vital range of sports nutrition products will be sold exclusively

functionaldrinks zenithinternational newsletter

Editor: Anya Hembrough Deputy Editor: Cecilia Martínez Núñez Contributors: Jenny Foulds 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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Joint Juice has entered into a partnership with former NFL player Joe Montana to launch the 'Do What You Love With Joe Montana' contest. To win, consumers can share how a healthy joint regimen has improved their life and can win allexpenses paid trip to spend an afternoon with Montana as well as winning US$5,000. Joint Juice CEO, David Ritterbush, commented, "As a company whose products were originally developed to help athletes, we're thrilled to join efforts with a football legend. Joe's healthy joint regimen coupled with his ongoing active lifestyle is a true inspiration." Celsius Holdings has announced it intends to deregister itself as a reporting company due to downsized operations. However, the company will continue to issue quarterly financial information and will continue to trade in the over-the-counter market.

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through the brand's website at www.aminovital.com. Previously the products had been sold through retail outlets and third party websites.

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According to a study recently published in the Journal of Agricultural and Food Chemistry, spray-dried yerba maté extract is rich in antioxidants and polyphenols and displays high antioxidant activity. According to the study, in addition to being used as a tea, yerba maté can be used as a food or supplement ingredient thanks to using the spray-drying method. Australia: Australia New Zealand Food Regulation Ministerial Council has announced it plans to ban pre-mixed alcoholic energy drinks and prohibit their sale as has already been the case in certain states in the US.The Ministerial Council will receive advice from the Ministerial Council on Drug Strategy which has been investigating the health risks of such beverages on young people.

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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