functionaldrinks zenithinternational newsletter This issue at a glance...
Issue 175
enriched beverages
Australia
Alphabetically inspired additions Page seven Football sensation scores new drink
Pages three to six Innovation Awards announced
Page seven Seasonal near water supply
Page six Costa Rican omega-3 milk
enhanced
Leading Australian enhanced water company NutrientWater has added a new variant to its existing range of functional waters as well as launching a new low calorie range. The new variant D-Stress, which joins the existing six (Antioxidant, Energy, Immunity, Multi Vitamin, Endurance, Rehab), is flavoured with Blackberry and Goji berries. It was unveiled in September upon NutrientWater's identification of a gap in the market for stress-busting beverages, stress being the most common cause of anxiety, irritability and fatigue for those leading a busy lifestyle, according to the company's own research. Enhanced with vitamin D and Ltyrosine, D-Stress is said to help the brain produce more neurotransmitters, thereby regulating emotions and controlling stress levels.
version of NutrientWater that is naturally sweetened with Stevia plant extract. Each bottle of NutrientWaterX contains just 23 calories, equivalent to only one teaspoon of sugar, and is currently available in two different functional varieties: Refocus, with brahmi and ginkgo; and AGame with vitamins A-E. Both are naturally flavoured - Refocus with Fuji apple and lime, and A-Game with strawberry and guava. NutrientWater undertook a comprehensive integrated summer marketing campaign for NutrientWater and NutrientWaterX, including wide-spread national sampling, sponsorship of the Stereosonic Music Festival and Melbourne Spring Fashion Week, magazine advertising, outdoor billboard advertising, radio advertising, trade print advertising in C-Store Magazine and print adverts in Virgin Blue on-flight media, an extensive PR campaign, as well as an in-store point-of-sale and merchandising programme. Each 575ml bottle of NutrientWater and NutrientWaterX has a recommended retail price (RRP) of AU$3.80. NutrientWater is available in Australia and now also in New Zealand where it was the first enhanced water product of its kind when it entered the market in mid2008. www.nutrientwater.com
Last month saw the launch of NutrientWaterX, a super-low calorie X
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functionaldrinks zenithinternational newsletter Page 2 Issue 175 17 December 2009
editorial comment Welcome to the 175th issue of functionaldrinks and the final one for 2009. Contrary to what some expected, this has been a very busy year that has seen continued innovation across the functional arena as well as an ever-increasing amount of product launches and line extensions. This issue is no exception and features the new variant and new low calorie range of Australian NutrientWater to join its enriched beverage portfolio (see Page 1). Back in Europe, German mineral water company Rhรถnsprudel has also expanded its portfolio with an enhanced drink that aims to optimise the body's uptake of oxygen (see Page 7). Here in the UK, we home in on sports formula company Leppin and Portuguese footballer Christiano Ronaldo who have been making considerable noise with their respective sports drinks, with the latter geared up to tackle the industry heavyweights for a share of this burgeoning sector (see Page 6).
sports/energy drink hybrid developed by Go Fast Sports & Beverage Company, which should trigger further innovation and further blur the distinction between the sports and energy categories (see below). We also cover the launch of a breakthrough UHT milk enriched with omega-3 and iron, which results from the cooperation between Costa Rican dairy company Dos Pinos and Austrian microencapsulation specialist GAT Food Essentials (see Pages 7 and 8). Finally, as is tradition, this issue brings you our long-awaited Innovation Awards, which highlight just some of our favourite developments throughout the year and across most categories covered.This year we have nine winners from various functional categories, in addition to the top contender in our outrageous category that we could not ignore (see Pages 3 to 6). We hope you have enjoyed this year's collection of functional developments and we look forward to sharing another year full of exciting new functional drinks with you in 2010. In the meantime, Happy Holidays and best wishes for the New Year from the functionaldrinks team! Cecilia Martinez-Nunez Deputy Editor cmartinez@zenithinternational.com
Across the Atlantic we see the new hydrating
sports/energy drinks
United States
Industry fast goes nutty for coconuts Following the recent buzz around coconut water, Go Fast Sports & Beverage Company has announced plans to expand its energy drink range with a seemingly unrivalled offering. The company's new energy drink, to be based on coconut water and scheduled for launch in the first half of 2010, will apparently deliver all the nutritional benefits of coconut water in addition to Go Fast's regular energy-boosting ingredient list. As with all other Go Fast Sports and Beverage energy drinks, the coconut variant will be free from high fructose corn syrup,
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aspartame, and preservatives. And to further its healthy credentials, the drink also uses the up and coming stevia, which Americans apparently are already familiar with despite its relatively recent appearance in the market. The resulting beverage will, according to its producer, not only help revive body and mind, but will also help replenish fluids and minerals lost through sweat, all in a low-calorie and lowcarbohydrate format. Go Fast Sports and Beverage President, Jody Shepherd, commented on the decision to create a coconut water-based energy drink, "Coconut water is full of electrolytes, calcium, potassium, magnesium; all of which have proven health benefits. We are excited to bring coconut water to the energy drink industry. Go Fast chose stevia as a sweetener supplement for the new Go Fast Coconut Energy Drink because of the consumer demand for lowcarbohydrate and low-sugar alternatives."
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functionaldrinks zenithinternational newsletter Page 3 Issue 175 17 December 2009
The functionaldrinks Innovation Awards 2009
Among the 250 or so products featured in functionaldrinks in 2009, here are our favourites from each beverage category‌. nutraceuticals
wellness beverages
Winner: Mary Jane’s Relaxing Soda
Winner: Maca Loca Swiss-based Vivadis' Maca Loca was the undisputed category winner for us due to the impressively wide-ranging wellness benefits afforded by its main ingredient, maca root. Maca, the 'secret' plant of the Peruvian Andes, grows at high altitude, in cold temperatures and in poor soil, which all help to render the root naturally rich in nutrients including proteins, vitamins and trace elements. The consumption of maca has been a long-standing tradition amongst the Incas due to the multitude of purported benefits associated with the root, from its high nutritional content and ability to boost strength and endurance, to its energy- and libido-enhancing properties, as well as its alleged regenerating effect and alleviation of menopausal symptoms. In addition to its general wellness benefits, it is believed that warriors also consumed maca prior to battles for its adrenaline-boosting properties. www.vivadis.net
Of the ever-increasing number of relaxation drinks that have recently appeared in the US, and indeed further afield, we felt the namesake offering by Mary Jane's Soda Inc deserved a winning status in the nutraceutical category. A cola-based drink, it is seemingly a first in its home market to combine stress-busting properties with a familiar flavour. Launched during a period of declining consumption within regular carbonated soft drinks, the relaxing cola drink is targeted at adults who enjoy the cola flavour and experience but are looking for a healthy, allnatural option that also delivers added benefits, in this case a way to relax and unwind through the use of the herbs kava and passion flower. www.relaxingsoda.com
functional dairy
Winner: Galaxy Probiotic Although this year has seen numerous innovative launches within the functional dairy category, we felt confectionery giant Mars' new milk drink, whose marketing message focuses on indulgence - an arguably increasing consideration for consumers - rather than the 'usual bug message', deserved a special mention. With the potential to revolutionise the UK's dairy shot market, Galaxy Probiotic, which combines the well-loved flavour of Galaxy chocolate with the benefits of probiotics, is the first such offering in the UK to combine indulgence and health, adding an element of luxury to the somewhat ailing market and hopefully fresh impetus. Given the success achieved with its other milk drinks, and provided it achieves the desired level of success with its indulgent but healthy proposition, Mars may consider also launching similar probiotic shot-sized versions of its other popular brands. www.mars.co.uk
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The functionaldrinks Innovation Awards 2009
zenithinternational newsletter
enriched beverages
Page 4 Issue 175 17 December 2009
Winner: Bravo Friscus A relaxation in Swedish laws pertaining to the use of added active ingredients and the collaboration between leading Nordic juice producer Sk책nemejerier and probiotic specialist Probi allowed for the successful creation of Bravo Friscus earlier in the year. A refreshing change in terms of origin, its bright and breezy packaging and its effective combination of the most popular juice flavours with probiotics without compromising on taste or shelf life, have all helped to secure the two-strong range of juice drinks top place within our enriched category. The particular strains of probiotic bacteria used within the unique orange- or apple-flavoured drinks have been specially selected to target the immune system. As has been demonstrated in clinical trials, the combination of bacterial strains used provides real benefits for consumers with proven effects on common colds, including a reduction in their duration, and not just on immune markers. www.probi.com
sports drinks
ingredients
Winner:Teisseire
Winner: SoLeau - Lepticil The proprietary patented ingredient contained in US-based TriPharma LLC's SoLeau weight loss water, Lepticil, is viewed as an industry first and has been clinically-proven to increase the feeling of satiety and aid weight loss in human trials. Lepticil works by regulating the hormones leptin and adiponectin.These are responsible for fat storage and appetite and are represented in too high quantities in overweight people, reducing their effect on the brain. By regaining control of these hormone levels, people tend to eat less and shed excess body fat.
Targeted at the one in every five French consumers who typically turn to syrups for refreshment, Teisseire identified and tapped a latent need in the sports drinks arena for such a dilutable offering, widening both the consumption occasions for syrups and the audience for sports drinks. Its isotonic syrups not only provide essential minerals such as sodium and potassium, but also contain a mix of simple and complex carbohydrates to provide instant yet long lasting energy. In addition, the new formula features vitamin B1 which aids in the conversion of glucides into energy. www.teisseire.com www.teisseirepourlesport.com
To date, SoLeau is reportedly the first and only such beverage product to feature the revolutionary ingredient, with a stick pack format soon to join the RTD variant. www.soleauwater.com
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The functionaldrinks Innovation Awards 2009
zenithinternational newsletter
near waters
Page 5 Issue 175 17 December 2009
Winner: Formas Luso Natural Although not a new concept, the Natural variant of Central de Cervejas e Bebidas' Formas Luso ranks high in the innovation stakes given that at the time of launch back in January, it was positioned as the first unflavoured fibre-enriched water in both Portugal and reportedly the world. Formas Luso Natural features, like its flavoured forerunners, 10g of soluble and satiety-boosting fibre, the motivation for which was based on research revealing that approximately 50% of Portuguese are overweight and that approximately two thirds of people with obesity problems do not consume flavoured waters. www.agualuso.pt www.centralcervejasbebidas.pt
energy drinks
packaging
Winner: NutraLife caps
Winner: Steaz Energy Shot
NutraLife Inc's eponymous caps get our vote on a number of levels. Not only do they allow consumers to easily add functionality to their plain water, their innovative technology also enables individuals to choose the strength of their nutrient dose.
Amongst the raft of energy shot drinks appearing on the market, Healthy Beverage Company's Steaz Energy Shot not only taps into the growing trends toward healthier ingredients in energy drinks, but also broadens the range of shot style drinks available in its capacity as the first such organic shot in the US.
Launched in the US in September, the cap concept, unveiled in Boost, Skinny, Nite, Immune and Luv variants, was born out of a realisation of how difficult it can be for children and adults alike to swallow vitamins. After much testing, NutraLife developed a reusable, refillable and biodegradable cap with three partitions, allowing consumers full customisation by inserting their own supplements and "deciding their water's mood". The supplied supplements are designed to dissolve slowly as the consumer drinks a 16oz bottle of water, enabling efficient hydration and ensuring that the ingredients' maximum benefits are achieved.
Created as a mini-me version of the 12oz Steaz energy drink, the shot packs the same amount of ingredients as its fullsize counterpart, delivering the same energy and with the same 'clean' label.The berry flavoured shot derives its energy giving properties from 150mg of naturally occurring caffeine combined with green tea, açaĂ, juice, yerba matĂŠ and guarana. Rich in antioxidants such as vitamin C, Steaz Energy Shot is also fortified with B vitamins. www.steaz.com www.steazenergy.com
www.nutralifeinc.com
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functionaldrinks zenithinternational newsletter Page 6 Issue 175 17 December 2009
The functionaldrinks Innovation Awards 2009
As well as our usual award categories, the newer ‘outrageous’ category had to be included again…. most outrageous
Winner: Blood Energy Potion
body temperature! - may spark interest amongst the more daring of consumers. Blood Energy Potion, bright red in colour and packaged in a hospital drip like pouch, contains the more typical of energy drink ingredients such as caffeine and glucose, but also features protein, electrolytes and iron to further increase its similarity to the composition of blood.
Upon our recent discovery of this vampire-esque energy drink, it became clear that energy drink producer Harcos' quirky new offering in the US would prove to be the most outrageous launch of the year. Not a product for the fainthearted, the quirky new drink best microwaved and served at
www.livingwithbloodlust.com
sports drinks
United Kingdom
Ronaldo takes on industry heavyweights Portuguese football profressional Christiano Ronaldo is set to compete head to head with leading industry brands such as Lucozade with his new all-natural sports drink, Soccerade. The brand has been taking the grass roots football arena by storm and is now being backed by a multi-million pound national marketing programme to drive home Soccerade's natural and caffeine free credentials. The drink, designed for junior and senior sports enthusiasts alike, derives its sport-enhancing properties from over 30 years of science from sports formula parent company Leppin and is free from artificial flavourings, colourings and preservatives. Christiano Ronaldo, FIFA World Player of the Year, will feature on all POS and marketing material, with the product's national marketing programme lined up to use above- and below-the-line
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activity. An on/offline PR campaign with regional media partnerships will drive awareness and trial. Promotion also involves a national initiative using world champion freestyle footballer, John Farnworth, to search for the Soccerade Dream Team, winners of which will walk away with a minibus for their school team and numerous top flight personal spoils. Already available in Ronaldo's home market of Portugal where it gained a 9% share overnight following its launch, Soccerade also enjoys a growing share in Germany and has aspirations for an international rollout through a further 60 countries, with additional markets joining the list daily. Soccerade - to be available in Wild Berries, Cold Blue, Orange and Lemon Lime flavours - is due to debut to the UK independent and convenience retail audience through the Convenience Retail show in March 2010, and will appear on shelves shortly thereafter with a RRP of £1.30 per 500ml bottle. Along similar football lines, sports drinks stalwart GlaxoSmithKline has signed a deal with UK broadcaster ITV which will see its Lucozade Sport brand sponsor coverage of the World Cup 2010. Meanwhile in other celebrity-endorsed sports drink news, it transpires that PepsiCo is to overhaul the Gatorade brand, which will include the discontinuation of its Tiger Woodsbacked Gatorade Tiger Focus.
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functionaldrinks zenithinternational newsletter Page 7 Issue 175 17 December 2009
enhanced beverages/near waters
Ironing out the competition
Germany O2 and Austrian-imported Vöslauer Balance and Römerquelle Emotion.
German mineral water company Rhönsprudel has added an enhanced offering to its portfolio. Called Rhönsprudel Life, the new drink reportedly delivers all the benefits of locallysourced Rhön mineral water, in addition to its refreshing apple and grapefruit juice and extra source of iron, the latter to aid the development of red blood cells and ensure the body's organs receive sufficient oxygen to function. With this additional mineral content, a 200ml glass of Rhönsprudel's hybrid nectar/water apparently delivers 30% of the recommended daily allowance (RDA) of iron, as well as 30% of the RDA of antioxidant-rich vitamin C thanks to its fruit juice inclusion. Packaged in a 750ml PET format and priced at €1.29, Rhönsprudel Life will be promoted through in- and outdoor advertising, the Internet,TV, POS, consumer educational activities and sampling. And, launched regionally in Hessen, Rheinland-Pflaz, Saarland, Bayern, Berlin,Thüringen and Sachsen in October 2009, the iron-rich water joins other flavoured, functional waters available in Germany such as home-grown Adelholzener Alpenquellen's Active
Also in October, and its home market of Austria, Römerquelle added a new limited edition damson and cinnamon flavour variant for the winter months.This is available in 1 litre PET bottles for a recommended retail price of €1.19 and has been supported by a City Light campaign, retail advertising, neck labels and POS activities. The launch was on the back of the roaring success generated by Römerquelle's grapefruit flavoured summer edition, which accounted for 30% of the brand's first half growth, according to Nielsen data.Whilst the country's near water category grew by 6% during the period, the popular Emotion line witnessed an above average 7.4% increase. Back in Germany, Rhönsprudel Life will be available through supermarkets, drug and convenience stores, as well as through specialist beverage retailers. www.rhoensprudel-life.de www.roemerquelle.at
functional dairy
Costa Rica
Hearty addition to dairy industry
omega-3 and iron are difficult to combine, not to mention the fact that the milk is UHT treated which places additional, heat-related demands on the encapsulated ingredients.
Costa Rican dairy company Dos Pinos has announced the launch of an omega-3 and iron enriched milk. Called Cardilac, the development of the enriched milk took almost three years and is the result of the cooperation between Dos Pinos and Austrian microencapsulation specialist GAT Food Essentials. According to GAT General Manager Stefan Thueringer, the product's development proved somewhat challenging due to the fact that
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Cardilac features a total of 37.5mg of EPA and DHA omega-3 per 250ml serving, as well as iron, selenium and vitamins A, C, and E to help protect the cardiovascular system.The company recommends drinking two servings of Cardilac a day to obtain approximately 19% of the RDA for omega-3 set by the World Health Organization (WHO). Milagro Mora, Corporate Nutritionist at Dos (continued on Page 8)
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functionaldrinks zenithinternational newsletter Page 8 Issue 175 17 December 2009
functional dairy
Costa Rica
(continued from Page 7) Pinos, commented on the launch, "Dos Pinos is very pleased to once again innovate with healthy products and be a pioneer in the introduction of functional ingredients in a very popular product such as milk, in order to provide the Costa Rican population with a better nutrition to achieve health."
The nutrient-rich milk is promoted as a hearthealthy product and has already been sampled at select outlets in Costa Rica during the summer.This was followed by a full-scale supermarket launch. Cardilac is available in 1litre Tetra Brik Aseptic cartons that retail for 800 Costa Rican colones each. www.dospinos.com
functionaldrinks in brief
Europe
will be stepping down from his role.
Germany: German chemical company BASF has developed a nature identical lycopene ingredient for use in foods and beverages.The new ingredient, which has the same molecular structure as the lycopene derived from tomato, is suitable for a wide range of applications thanks to being water-soluble, compared to other lycopene ingredients which are oil-soluble or only appropriate for supplements. Ingredients company Wild has introduced three new beverage concepts aimed at the adult soft drinks market.The concepts include fruitflavoured malt drinks, fruit vinegar and kombuchabased drinks. Spain: Spanish researchers have reported that adding milk or casein proteins may improve the uptake of iron from enriched juices by up to four times. Iron deficiency remains the leading nutrient deficiency in both developed and developing countries, affecting one in five women in the UK alone.
North America
US: Innovative Beverage Group, owner of Drank, has entered into a distribution agreement with Pure Beverage for the circulation of its relaxation drink in the state of Indiana. Producer of sports nutrition protein beverages CytoSport has appointed Michael Pickett as President and CEO, replacing his father Greg who
functionaldrinks zenithinternational newsletter
Editor: Jenny Foulds Deputy Editor: Cecilia Martinez Contributors: Charmaine Holmes, Laura Knight Market Intelligence Director: Gary Roethenbaugh functionaldrinks is issued 25 times a year and is only available by subscription: electronic PDF format only ÂŁ495; hard copy and PDF ÂŁ595* *VAT chargeable on electronic format to UK companies and EC companies not registered for VAT
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A recent report by Deutsche Bank has suggested that the line between enhanced waters and sports drinks is disappearing as consumers increasingly regard them as being similar beverages.The report also states that small companies wishing to enter might be at a disadvantage as they lack large marketing budgets and have high input costs.The report concluded that for companies to gain market share, loyalty must be encouraged whilst staying away from promotional pricing. Hansen Natural has reported that net profit for the third quarter of 2009 increased by 7.8% to US$56.5 million from the same period in 2008. The rise in profit has been attributed to an 8.1% climb in sales to US$307.9 million. According to the company, its healthy results have largely been dependent upon sales of Monster energy drink.
World
Australia: Coca-Cola Amatil has confirmed its expectations that second half 2009 profits will hit high single-digit growth helped by new product launches and market share gains for glacĂŠau vitaminwater and Mother energy drink. New Zealand: Stevia producer PureCircle has announced Frucor Beverages' launch of the country's first low-calorie vitamin-enriched beverage, Revive Supplement Water, to contain the sweetener. 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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