functionaldrinks zenithinternational newsletter This issue at a glance...
Page three Pocket size energy debuts in France
Page six Refreshing Brazil’s summer months
Issue 177
nutraceuticals
27 January 2010
United States
Tailored relaxation Peaceful Remedies LLC, producer of RelaxZen shots, has expanded its portfolio with tailored drinks to suit different occasions where consumers might want to relax. The company first introduced RelaxZen DAY and RelaxZen NIGHT at the beginning of September 2009.The DAY variant contains the amino-acids L-theanine and L-threonine in addition to B vitamins, açaí, GABA and passion flower to help relax stressed consumers without causing drowsiness. Meanwhile, the NIGHT variant features melatonin, valerian root and chamomile to help promote a restful night's sleep. As well as the DAY and NIGHT variants launched at the beginning of September 2009, the company introduced its RelaxZen SPORT, DAY FLIGHT and NIGHT FLIGHT variants on 10 December. The SPORT shot is designed to be taken before or after exercise and helps athletes deliver 'focused performance'. Meanwhile, FLIGHT DAY and FLIGHT NIGHT seem to be the only such
Page four Affordable energy in vial size
products available in the US to help travellers feel relaxed and refreshed. The RelaxZen range is targeted at all consumers who suffer from stress or would like to feel more relaxed and peaceful throughout their daily life. Although both men and women suffer from stress, so far women have quickly become important customers. functionaldrinks spoke to Brent Sonnek-Schmelz, Chief 'Zen' Officer of Peaceful Remedies, who told us that the RelaxZen shots have proved to be highly popular. Sonnek-Schmelz said, "The response to our product has been overwhelming. Consumers love them and retailers could not be happier." Sonnek-Schmelz also commented on the drinks' sales performance, "Sales have exploded.We have signed major chains such as Duane Reade, have been accepted by several large distributors and are seeing consistent sell through in all our channels. We have found that our product sells very well in a variety of channels. Convenience, drug and grocery stores are a natural match. However, doctors, chiropractors, gyms, delis, spas, airports and sports specialty stores are also seeing success." To promote the shots, Sonnek-Schmelz highlighted the importance of sponsorship and promotion activities to support the success of the company. To date, the firm has sponsored the Atlantic City Marathon, the International Emmy Awards as well as local sports teams.A significant number of sampling events are scheduled, as the company is of the belief that once a consumer tries a RelaxZen shot, they will be a customer for life. Sonnek-Schmelz added, "Going forward we are considering various sponsorships and promotions that we feel fit with our brand image." RelaxZen can be found throughout the northeast of the US and California, and shortly nationwide, through retailers such as drug, convenience and grocery stores as well as specialty chains, spas, gyms and airport stores.
Page three America connects over drink
Each 2.5oz shot carries a recommended retail price (RRP) of US$2.99. www.relaxzenshots.com
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functionaldrinks zenithinternational newsletter Page 2 Issue 177 27 January 2010
editorial comment
company Boost Drinks (see Page 6).
Welcome to the 177th issue of functionaldrinks. In 2009, energy drinks, alongside other functional beverage categories, demonstrated a certain level of resilience to the economic pressures of the year and continued to expand around the world, even in some of the more mature markets.
Still in Europe, not all activity has centred around energy drinks, with a new range of vitaminenriched drinks for Germany's night life scene, introduced by Union Getränke, also catching our eye (see Page 4). In the US Glacéau, which can be credited for being the inspiration behind the latest enriched drinks, has recently unveiled its latest addition, fruit of the collaboration between the company and its million fans (see Page 3).
At the same time, relaxation drinks started to make inroads in the nutraceuticals arena. These trends seem set to continue into 2010, with featured launches exemplifying this. Firstly, we cover the launch of The Coca-Cola Company's successful Burn energy drink brand in India (see Page 5), the soft drink giant's second attempt to break into the country's energy drink market. In France, we see the introduction of a new and novel format by Karlsbraü France for its Dark Dog energy drink (see Page 3). Nearby in Germany, Rhino's Energy Drink & Food has been busy with the latest promotion of its cranberry variant and has entered into two key partnerships (see below). And in the UK, we cover the launch of a value energy shot by local
Relaxation drinks seem set to take the US by storm, so much so that operators are wasting no time to introduce drinks that segment the market in sophisticated ways. Peaceful Remedies is an example of this with its latest additions for travellers and sports enthusiasts (see Page 1).Also for sports enthusiasts, though not exclusively, are the new protein drinks introduced by Hormel Health Labs which are available in two protein doses to cater for different needs (see Page 4). We also see the launch of an Andean-inspired offering by Kuka Drink, designed for urban consumers looking for a different and healthy experience (see Page 5). Finally, we look at the new addition to PepsiCo's H2OH! range in Brazil, a limited edition variant for the summer months (see Page 6). Cecilia Martínez Núñez Deputy Editor cmartinez@zenithinternational.com
energy drinks
Germany
Rhino set lose in cinemas Having introduced its cranberry juice-based energy drink in September 2009, Rhino's Energy Drink & Food is supporting the unveiling of the new, classicinspired Sherlock Holmes in cinemas. Not only does Rhino's latest move mark its link up with the film industry, it also marks the start of two strong partnerships, one with the sports and wellness club brand Injoy through advertisement in over 200 studios, and the other with optical specialist Minox.
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Activity surrounding the new film debut is to set to start with an online competition, running from 18 January to 6 February, whereby consumers have the chance to win a luxury weekend in the shopping metropolis of London. Introduced just four months ago, Rhino's natural energy & fruit, targeted towards adults wishing to lead a 'lifestyle of health and sustainability', has a 27% cranberry juice content and is naturally high in vitamin C. As such, every 100ml of the drink provides 38% of the recommended daily allowance (RDA) of the energy-boosting vitamin. Currently only available in Germany, this juicebased drink could be set to reach other markets where the Rhino's brand is already present in the near future.
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functionaldrinks zenithinternational newsletter Page 3 Issue 177 27 January 2010
energy drinks
France
Leading brand takes shot at small format KarlsbraĂź France has again demonstrated its pioneering spirit by introducing a new offering to complement its already extensive line of Dark Dog branded energy drinks.
vial that reportedly provides the same energy as half a 250ml can of Dark Dog. In terms of its energising ingredients, the new shot style drink contains 40mg of caffeine, guarana, taurine and vitamins B1. B2, B3, B5 and B6. Prior to their official launch, the vials were trialled at the Cannes Film Festival, where they proved to be a success, according to the company. The new Dark Dog shot is sold in 25ml vials that retail for â‚Ź9 per ten unit box via the brand website as well as through select retail outlets.
Its latest addition comes in the form of an energy
www.darkdog.fr
enriched beverages
United States
'Connect'ing with consumers
After months in the making, The Coca-Cola Company (TCCC) has unveiled the new GlacĂŠau vitaminwater variant created by fans through the social networking site Facebook. In the same way that UK-based Firefly Tonics enlisted the help of consumers to develop its impending Rule Britannia variant, in September 2009 TCCC ran a promotion giving devotees the opportunity to dream up a new vitaminwater flavour through its official Facebook page. The activity was promoted by an online advertising run through YouTube featuring US basketball star Steve Nash, who is also the drinks' brand ambassador. Facebook users were invited to vote for their favourite flavour in the 'flavour creator lab, with the four finalists and the grand prize winner each winning US$5,000. The new drink, to be released nationwide in March 2010, is called vitaminwater connect and is black cherry-lime flavoured. The design of the bottle makes clear references to the social networking site in addition to the typical text found on vitaminwater labels alluding to its key aspects.
vitaminwater connect, as well as containing the same amount of sugar as its counterparts, features eight nutrients, including electrolytes, 100% of the recommended daily value (RDV) of vitamins B3, B5, B6, B12 and C as well as caffeine. The idea of allowing vitaminwater fans to design their own variant through one of the most widely used networking sites has undoubtedly been successful, as the brand's official page has over one million fans and is one of the most actively managed brand pages on Facebook. The company consistently updates the content within its page as well as launching new applications. Further details on distribution and pricing are yet to be confirmed, however, it is expected that the new drink will be sold through the same channels as the existing vitaminwater range and will be priced accordingly. www.glaceau.com
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functionaldrinks zenithinternational newsletter Page 4 Issue 177 27 January 2010
sports drinks
United States
Protein - single or double shot?
tryptophan, L-threonine and L-lysine.
Hormel Health Labs has introduced a range of high protein shots to cater for both professional and amateur sports people. The company has created two sub-brands under its Healthy Shot umbrella brand - High Protein and Double Protein - to appeal to a broader base of consumers. Protein and its accompanying amino-acids are necessary for many bodily functions and in the maintenance of good health. This is in addition to being necessary for muscle recovery after strenuous exercise, building muscle and improving physical performance. As its main ingredient, Healthy Shot High Protein features 12g of high quality protein, in addition to providing the essential amino-acids L-leucine, Ltyrosine, L-methionine, Lvaline, L-isoleucine, L-
According to the company, Healthy Shot is a breakthrough for several reasons. It is a fruit flavoured drink, not dairy based, it is lactose-free and is also concentrated in a 2.5oz format. Healthy Shot High Protein, available in Peach and Tropical variants, also provides 10% of the RDA of vitamins A and E as well as 25% of the RDA of vitamins C and D and folic acid. Healthy Shot Double Protein is targeted at those consumers with higher protein requirements and, as its name suggests, provides twice as much protein as its counterpart. Healthy Shot Double Protein is available in a sole peach flavour variant, delivers the same amount of vitamins as its high protein counterpart, and has no sugar added. The company has been promoting the shots through PR and print activity, which has helped spur sales post-launch. As for the future, Hormel Health Labs is planning to launch its protein shots across Europe and Asia as well as communicating news of its Immunity sub-brand of powder sticks for all individuals wishing to strengthen their immune system. The shots retail for US$1.99-US$2.49 per 2.5oz bottle through the company's website and select retailers. www.healthy-shot.com
enhanced beverages/near waters
Vitamins take care of consumers Although already in full swing in the US thanks to the pioneering influence of GlacÊau, vitaminenhanced waters are a relatively new concept in Germany. Pipped to the post by seemingly just one brand, Karlsberg Brauerei's Aqua Vitalis, Union Getränke has just unveiled a premium, 275ml glass-packaged vitamin water called Cair.
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Germany Designed for distribution in bars and clubs and positioned as a calorie-free and naturally healthy alternative to energy and wellness drinks, the new four-strong range has been available in Germany since November/December 2009.With natural colouring and flavourings, Cair is said to be an ideal party drink and to fuel consumers into the early hours. Each of the four variants (cherry-cranberry, lemon-melissa, pineapple-maracuja and prickly pear-kiwi) delivers a specific taste experience, determined by its individual and health-promoting ingredients such as vitamins, minerals, trace elements, botanicals and natural energy boosters. Cair's combination of vitamins has been so designed in order that consumers can obtain their recommended nutrient intake with just two bottles of the drink.
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functionaldrinks zenithinternational newsletter Page 5 Issue 177 27 January 2010
wellness beverages
United States
Forbidden Andean plant enters the US Kuka Drink has started the soft launch, in the New York area, of a unique healthy beverage for those looking for a new drinking experience. Kuka, as its name suggests, contains coca leaves as its star ingredient which, according to people from the Andes region, have a myriad of health enhancing properties. Coca has apparently been used for thousands of years to rejuvenate energy levels and relieve thirst, whilst also calming the nerves and stimulating the senses. Coca, consumed as a drink, is also known to have a rehydrating and detoxifying effect on the body. Kuka is an all-natural premium beverage made from handpicked Andean coca leaves processed under the careful supervision of EU controlling authorities and according to the EU directive (88/388EEC), which means it is free from any prohibited substances such as cocaine, one of the alkaloids found within the leaves.
At present, Kuka is being marketed to consumers aged 25-35, although the drink has been fast adopted by people under and over the core target group. In the meantime, to help strengthen demand for Kuka, the company intends to educate the public about the health benefits and nutritional properties of coca leaves. To this effect, Kuka Drink has already implemented POS material such as stickers, posters, flyers and displays whilst it finalises a PR programme along with viral media and events. The official launch of Kuka is scheduled to be March 2010. Nonetheless, the company is already working on expanding distribution and the drink is already available in the New York area, New Jersey, Pennsylvania, Chicago, the Caribbean and will be also present in Florida and Southern California by late February. Kuka can be purchased at convenience stores, supermarkets, cafĂŠs, gourmet food and natural health stores. Each 245ml slim can retails for approximately US$1.99.
www.kukadrink.com
energy drinks
India
Major brand heats up market Coca-Cola India has made its second attempt at breaking into the Indian energy drinks market, this time with its international brand, Burn.
still remains fairly niche, as high prices have acted as a deterrent for any significant growth within the category.The largest players at present include Red Bull, Power Horse and PepsiCo's SoBe. Burn will be targeted at the "trendsetting, socially active and adventurous young adults" who need energy to "experience life to the fullest," according to the company. The launch of Burn will be followed by a large-scale, below-the-line marketing activity. Burn has been available since mid-December 2009 in Delhi, Mumbai and Bangalore and will be rolled out eventually to the rest of the country.
Coca-Cola's first attempt involved launching a local energy drink brand called Shock in 2001, which was positioned as a lifestyle drink and carried the tagline 'Unleash your wicked side'. However, Shock was withdrawn from the market two years later due to 'lukewarm' consumer response.
Burn will be sold mainly through pubs, select modern outlets, gyms and other on-trade outlets. A 250ml can will retail for around Rupees 75.
Since then, India's energy drinks market has progressed, although it
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functionaldrinks zenithinternational newsletter Page 6 Issue 177 27 January 2010
energy drinks
United Kingdom
Affordable energy
Recognising the gap in the UK market for a value energy shot brand, Leeds-based Boost Drinks has unveiled Boost stimulation shot. To complement its existing range of budget energy drinks, Boost stimulation shot contains a concentrated blend of 75ml of caffeine, equivalent to one cup of brewed coffee, as well as natural extracts of ginseng and guarana for a instant energy lift. According to Simon Gray, managing director, Boost Drinks, "Requests for a Boost high caffeine shot have been flooding in
over the last couple of months, given the popularity of this new market as consumers look for instant energy hits to fuel their increasingly fast-paced lifestyles. The Boost stimulation shot offers a quick and simple revenue stream for both wholesale and retailers as it is an ambient, value product that frees up chiller space." The brand has been launched with the tagline, 'It's not big but it is clever" and is designed to appeal to a wide audience of energy drink fans. In addition, its launch comes at a time when consumers are increasingly budget conscious as the UK suffers its longest ever recession. With a RRP of just ÂŁ0.99, Boost is believed to be the lowest priced shot-style energy drink on the market. This compares with Red Bull Energy Shot which retails for ÂŁ1.79 and Lucozade Alert with a RRP of ÂŁ1.49. Boost has counter-top placement at wholesale and independent retailers nationwide including Costcutter, Londis and Superdrug.
www.boostdrinks.com
wellness beverages
Brazil
'Eau' so minty!
at various events, amongst other activities.
PepsiCo has launched a limited edition variant to its H2OH! carbonated flavoured water brand in response to consumer demand. Consumer requests for a lightly flavoured and refreshing version of H2OH! were communicated through various social networking sites. Therefore Pepsi, which often introduces and experiments with limited edition drinks, this time created a pineapple-mint drink, as this appears to be Brazilians' most preferred flavour combination during the hottest months of the year. In addition to its refreshing taste, the new H2OH! is free from added sugar and boasts low calorie credentials, deriving its sweetness from its juice content. Moreover, the beverage has been enriched with vitamins B3, B5, and B6.
The H2OH! line, which routinely features limited edition variants, has proven very successful in the country and it has been suggested that, along with Mexico and Argentina, Brazil is one of the top markets for the brand. The latest variant, which has been available since October 2009, will be sold until the end of January 2010 in 500ml and 1.5 litre bottles.
PepsiCo chose the agency AlmapBBDO to implement a communication campaign, tasting sessions and POS material, as well as presence
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functionaldrinks zenithinternational newsletter Page 7 Issue 177 27 January 2010
functional drinks
World
Innovation in focus Zenith's 6th InnoBev Global Soft Drinks Congress is set to take place on 9-11 March 2010 in Istanbul, Turkey, a country with the 16th largest economy in the world, a population of over 70 million, and whose soft drinks market ranks ninth globally despite economic uncertainty. Turkey has high local consumption of carbonates at 52% of total volume, with other niches such as sports, energy and iced drinks relatively unexplored and the congress set to look at future opportunities. Starting with a Coca-Cola Içecek plant tour, the event has attracted
speakers from all areas of the globe and all industry sectors. To give a taste of just some of the companies from the conference's impressive line-up, these include: Coca-Cola Içecek; PepsiCo International; Tata Beverage Group; Eckes-Granini; energy shot producer 5 Hour Energy; Anti-Ageing Products Inc; coconut water manufacturer Kulau GmbH; Innovative Beverage Group, probiotic specialist Probi and retailer Wal-Mart. The event is sponsored by leading industry suppliers, Bericap, Closure Systems International and Frigoglass, who will also be sharing their thoughts on the cutting edge of innovation. For a full programme, and to obtain discounted rates by booking before 9 February, please call (0)1225 327900 or visit: www.zenithinternational.com/events
functionaldrinks in brief
Europe
According to consumer research conducted by Beneo-Orafti, the recession has not dented consumer willingness to pay for products that deliver health benefits. Moreover, polls conducted at the time of recession in the UK, Spain and France showed consumer loyalty towards premium brands that offered health benefits. Sweden: Probiotic specialist Probi has entered into a long-term partnership with Bringwell, leading supplier of dietary supplements in the Nordic region. Bringwell will launch Probi's new dietary supplement for immune health and one for digestive health, already available in a number of countries.The products will be launched under Probi's own brands ProbiFrisk and ProbiMage and will be sold in chewable tablet and capsule form respectively. UK: According to Jeremy Martin, co-founder of For Goodness Shakes, after-sports recovery drinks are driving growth in the sports category, as the company's eponymous dairy drink has seen 25% growth compared to 3.4% for the category. Furthermore, Martin claims consumers are purchasing recovery drinks on top of their usual isotonic purchase, demonstrating real growth is occurring. Trade press magazine The Grocer has claimed that trailblazing energy drinks Lucozade and Red Bull have been hit by a significant slow-down in growth in 2009. Overall category growth dropped from 15% in 2008 to a mere 3.4%. Lucozade
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remains the leading brand, however its Hydro Active sub-brand is down 30% on 2008. Red Bull meanwhile saw growth of just 0.1% compared to the 10% jump seen in 2008. Both blame the recession for the slowdown in sales. Coca-Cola Enterprises' Relentless is the only brand to have posted sales growth of 31% to £48 million thanks to the launch of Relentless Shots in July. Kate Shapland, Beauty Editor of British newspaper Telegraph, has recommended drinking approximately one litre of Deeside Water Company's Deeside Mineral Water for anyone needing a New Year detox.The water has been credited with having antioxidant properties. Boost Drinks has announced that it will sponsor the Proppa.com Honda motorcross team for the 2010 season. Boost will be sampled at key races in the UK in 250ml cans and 500ml re-sealable bottles. Distributor Eurostar Commodities has announced the impending launch of Security Feel Better, a digestive shot drink that helps prevent cure hangovers due to excessive alcohol consumption.The digestive is already sold in 15 countries around the world and each 30ml glass bottle will retail for approximately £2.99. Coca-Cola Great Britain has released a feature length documentary-style film which follows contemporary artists pushing themselves to their limits as part of its efforts to promote its Relentless energy drink brand.The documentary
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functionaldrinks zenithinternational newsletter Page 8 Issue 177 27 January 2010
functionaldrinks in brief has been entitled 'Lives of the Artists' and can be viewed through the brand's website.
North America
Canada: Innovative Beverage Group Holdings has announced that it has commenced rolling out the distribution of drank relaxation beverage in Canada.The company expects the drink to be on shelves in time for the 2010 Winter Olympics. Leading Brands has posted an increase in net income to C$66,000 for the third quarter of 2009 compared to a net loss of C$536,000 for the same period of 2008. Net sales reached C$4.35 million for the quarter. According to preliminary research, tea may be able to prevent endometrial cancer, but more research is needed before conclusions can be drawn. Researchers also suggested that if tea does have a protective effect, it is most likely due to a number of factors. US: According to retail data, all non-carbonated categories except for iced tea performed worse in the first nine months of 2009 than in the same period of 2008. In sports drinks, only Gatorade's G2 posted growth at 24.9% whereas the overall category shrank by 11.%. Enhanced flavoured water dropped 9.2%, however PepsiCo's SoBe Lifewater jumped 61.9%. Dr Pepper Snapple Group's Venom Energy Drink has signed a multi-year sponsorship with Andretti Autosport to continue as primary sponsor of IndyCar driver Marco Andretti.Venom Energy will activate the partnership with in-store merchandising, consumer sweepstakes and retail appearances. PepsiCo has confirmed that it will invest US$30 million to revitalise sales of Gatorade.The first step will be to remove high fructose corn syrup (HFCS) from all drinks in response to consumer
functionaldrinks zenithinternational newsletter
Editor: Jenny Foulds Deputy Editor: Cecilia Martinez-Nunez Contributors: Charmaine Holmes 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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demand. Other changes will include the reorganisation of the Gatorade portfolio, to be arranged under the sub-brands Prime, Perform and Recover. Prime will be designed for consumption before exercise, Perform will include G and G2 branded drinks positioned for consumption during exercise, whilst Recover will be for use after sport and will contain protein. It is not known what sweetener will replace HFCS. Functional beverage producer First Fruits Beverage Co has acquired a bottling plant from PepsiCo which it will use to bottle tea drinks and vitamin-enhanced waters. Living Essentials, producer of 5-Hour Energy, has extended its portfolio of energy shots with a pomegranate offering. Existing flavours include berry, lemon-lime, orange and grape. Bebida Beverage Company has expanded its Koma Unwind line of relaxation beverages with a line of caffeine-free coffee flavoured additions. These coffee-inspired drinks are Creamy Classic, Java Black and Moca Tonight, which are expected to hit shelves from February 2010.
World
Japan: Research conducted by Ajinomoto has revealed that calcium in food and drink can enhance the flavour perception of low-sugar or low-salt foods, thereby reducing the need for extra flavourings.There are allegedly other substances that are not flavoured themselves yet enhance the flavours they are paired with. India: Shefali Sapra, General Manager Corporate Communications at Yakult Danone India, has said the company intends to increase the number of bottles of Yakult it sells in the country, which currently stands at 30,000 bottles daily, to 100,000 bottles per day by 2011. At present, the firm's factory in Haryana has the capacity to produce 1 million bottles per day but is apparently working at just a tenth of its capacity. 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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