100224_FD_Issue 179

functionaldrinks zenithinternational newsletter This issue at a glance...

Page seven US debut of super antioxidant drink

Page six New shot targets immune health

Page five Quenching thirst in Germany

Page four Newborn drink is nutrient rich

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Issue 179

energy drinks

United States

Low-calorie, antioxidant energy Eiro Research, producer of an eponymous energy drink, has recently released a low-calorie variant to accompany its original offering.

The new drink, called Eiro 25 Calorie Energy has reportedly experienced phenomenal growth since its official launch back in mid-November 2009. Part of the early success of the new energy drink is attributed to it complementing the company's other existing products such as Eiro Lean. Eiro Lean is a high-protein meal replacement shake that, when combined with a can of Eiro 25 Calorie Energy, reportedly provides a satisfying pickme-up with only 165 calories.

drink to increase mental performance but also to enhance physical performance.

Eiro 25 Calorie Energy contains caffeine derived from natural energy sources including guarana, green tea, ginkgo, and ginseng. It contains no preservatives, refined sugars or high fructose corn syrup. The patented Energy and Vitality blends, which have distinct fruit flavours, are designed to give the body and mind a balanced, natural boost of energy without sudden decline or instability. 25 Calorie EIRO Energy is sweetened with xylitol and stevia whilst the regular Eiro is sweetened with agave nectar, pomegranate and blueberry juice.

The company currently has no plans to launch additional variants; instead it intends to focus on growing sales of its two Eiro energy drinks, Original Eiro Energy and Eiro 25 Calorie Energy.

Eiro 25 Calorie Energy is sold through a direct sales system through the company's website and is available for US$35 per 12can case for wholesale customers and US$44 for retail customers.

Customers are eligible to receive wholesale pricing if they sign up for an auto-ship programme.

Eiro Energy is targeted at a wide audience and suitable for consumption by teenagers, health conscious parents, as well as Generation X (30-50 year olds) and Generation Y (people in their 20s). Moreover, the drink has a wide appeal since it can be consumed as a regular energy

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functionaldrinks zenithinternational newsletter Page 2 Issue 179 24 February 2010

editorial comment Welcome to the 179th issue of functionaldrinks. For the second issue in a row, we again cover the launch of a drink based on the increasingly recognised coffee berry, this time by SoZo Global in the US (see Page 7), which has led us to wonder whether alternatives such as açai-based supplements could be falling out of favour and those with coffee berry gaining ground.

We also report on the latest introduction by Vemma Nutrition Company, this time in the form of a powdered stick that helps replace lost minerals through its Vemma antioxidant blend (see below).We also look at three new beverages that have joined Rockstar Inc's eponymous beverage line (see Page 3). Still in the US, we review a small drink that promises to have a big impact on the immune system by reducing symptoms of the flu, a launch by Innovative Beverage Products (see Page 6).

In Mexico, Coca-Cola de México has released a range of limited edition sports drinks to commemorate the upcoming World Cup (see Page 4). Also in the sports arena, German soft drinks producer Sinalco has made its entry with an isotonic proposition that also claims to support energy metabolism and bone health (see Page 5).

Meanwhile Groupe Danone seems to be on a mission to grow sales of its functional offerings and has now launched its new bone health yogurt in France, just three months after it was first introduced in Spain (see Page 6). In Singapore, we feature the launch of an unusual yet promising drink by New Image Natural Health Ltd, featuring colostrum with active natural antibodies (see Page 4).

Finally, we report on the latest advances made by Swedish probiotic specialist Probi, which have meant one of its cultures is now present throughout several countries from the US to Argentina (see Page 3). And we also cover the results of the latest research conducted by Nestlé's Research Center into the antioxidant properties of coffee and its interaction with additives such as milk and sugar (see Page 5).

Cecilia Martínez Núñez Deputy Editor cmartinez@zenithinternational.com

sports drinks

United States

All user thirst quencher Hot off the press, and just a few months after the launch of its child nutrition drink, Vemma Nutrition Company has added a sports offering featuring its proprietary Vemma blend.

The latest addition is called Vemma Thirst, a portable hydration sachet that, once activated with water, is designed to be consumed by adults and children alike during any activity or just to rehydrate. According to the company,Vemma Thirst can help sustain energy, protect the body and enhance overall health.* Vemma Thirst is free from high fructose corn syrup, artificial flavours, sweeteners, colours or preservatives. Moreover, the orange-flavoured powder helps protect against cellular damage

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thanks to the Vemma nutritional blend, which provides 12 full spectrum vitamins, antioxidants and over 65 major trace and ultra trace plantsourced minerals.* Its antioxidant-rich ingredients include mangosteen and aloe vera as well as decaffeinated organic green tea.Vemma Thirst also contains electrolytes to replace those lost through sweat and a combination of carbohydrates derived from 20g of evaporated cane juice and amino acids to restore protein levels.* The powder is activated by combining it with 16oz of water for adults or mixing half a sachet with 8oz of purified water for children.The company recommends that adults consume one to three sachets of Vemma Thirst per day.

Each box of Vemma Thirst contains 30 sachets with 26g of the powder and can be purchased via the company's website. *These statements have not been evaluated by the Food and Drug Administration.This product is not intended to diagnose, treat, cure or prevent and disease. www.vemma.com

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functionaldrinks zenithinternational newsletter Page 3 Issue 179 24 February 2010

ingredients

World

Milk - no effect on coffee antioxidants Food and drink giant NestlĂŠ, through its NestlĂŠ Research Center, has published the results of its latest study into the antioxidant properties of coffee in the Journal of Nutrition.

The aim of the investigation was to determine whether milk protein affects the bioavailability or efficacy of antioxidants, as in the case of tea it has been suggested that adding milk can inhibit the uptake of

antioxidants.The study was especially relevant since to date, there has been very little research in this area.

During the investigation, researchers compared the uptake of caffeic, ferulic and isoferulic acids from instant coffee, instant coffee with whole milk and instant coffee with non-dairy creamer and sugar.The tests conducted on the participants demonstrated no differences between the groups drinking instant coffee or instant coffee with whole milk.

In recent years, coffee has been brought to consumers' attention as its health credentials are increasingly researched, currently linking the commodity to benefits such as reduced risks of certain diseases, especially of the liver and diabetes.

It has been estimated that the global coffee market, spanning more than 60 coffee growing countries, generates over US$70 billion in retail sales annually. www.research.nestlĂŠ.com

energy drinks/sports drinks

United States

Bring out the star in you Rockstar Inc has started the year with three new beverages as well as an energising gum to better segment and target customers.

The announcement comes around a year after the company announced that it had signed a multi-year agreement with PepsiCo for the distribution of its energy drinks, finalising the one it held previously with rival Coca-Cola Enterprises.

According to the company, this new agreement allows it to launch fine-tuned beverages that could be thought to compete against those of PepsiCo, however both incumbents see the new offerings as complementing each other since none are identical.

launch is Rockstar Recovery, an energy-sports hybrid that aims to deliver an energy boost whilst also rehydrating after strenuous activity.The lemonade flavour drink is sweetened with sucrose and sucralose and features the Rockstar herbal blend.

Rockstar has also reintroduced its Rockstar Cola.

This was pulled from the market in 2005 at the time the portfolio was distributed by Coca-Cola, as it was considered to compete with the CocaCola brands.The reformulated drink now boasts more carbonation and is sweetened with sucrose instead of high fructose corn syrup.

The third addition is an 8oz version of the company's existing Rockstar Roasted range, offering consumers a high energy blend made with real brewed espresso and the classic Rockstar herbal formulation.This is available in a sole Espresso variant.

Finally, Rockstar Energy Gum is the company's first non-beverage proposition and delivers 80mg of caffeine, taurine and B vitamins in two sugarfree variants: Iced Mint and Iced Orange.

The new products are already available through the same outlets as the rest of the portfolio. www.rockstar69.com

The first drink scheduled for

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functionaldrinks zenithinternational newsletter Page 4 Issue 179 24 February 2010

functional dairy

Singapore

'Gift from nature' New Zealand-based New Image Natural Health Ltd has unveiled a cow colostrum functional beverage for the Singaporean market.

The new, immune-boosting drink COL+ is based on a High Pressure Processing (HPP) patented technology by Fonterra, the world's largest dairy exporter, which, having recognised the increasing awareness of colostrum, began research into this area back in 2001.

As a way of validating the learnings around HPP, which kills bad bacteria and pathogens but does not deactivate the active ingredients in colostrum such as active antibodies, this was later applied to the colostrum beverage programme, preserving bioactivity.

Colostrum is the first milk produced by all female mammals, including humans, and provided to the newborn in its first days of life to protect

and support its immune system. Often referred to as "Miracle Milk", it is the only natural product to contain active antibodies and has been revered by the earth's oldest cultures for thousands of years for its health-giving properties.

Colostrum is in finite supply, and COL+ uses New Zealand colostrum which is collected only over a short period once a year from early August to September during the country's early spring season, when the majority of calves are born.

New Image first became involved with Fonterra's colostrum beverage technology in 2007 and built a state of the art manufacturing plant based in Auckland to develop branding, packaging, flavours and an international distribution network.

COL+ is designed "just as nature intended", with all natural fruit flavours (strawberry and peach), no preservatives, 99.9% fat free, Halal status, 1,500mg of cow colostrum and active antibodies.

In Singapore, it is available through retail outlets such as Carrefour, Cold Storage, Fresh Price, Giant, Isetan and Meidi-Ya. www.colplus.com

sports drinks

Mexico

Fruity flavours for footballers Coca-Cola de MĂŠxico has introduced a limited edition range of beverages under the Powerade brand.

This follows the drink being chosen as the official drink for the FIFA World Cup 2010 to be held in June in South Africa.

To commemorate the occasion, the company has unveiled five beverages in Orange-Mandarin, Lemon-Lime, Berries, Grape and Fruit Punch variants. As with the regular line, the sports drinks are free from artificial preservatives or flavourings, contain vitamins B3, B6 and B12 to help release energy, vitamin D to strengthen the bones and vitamin H, also known as biotin, which, along with vitamin E, helps regulate the metabolism of fatty acids.

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Each variant captures what the company explains are 'magic' moments that can only be experienced when playing sports, in this case football. In addition, through the limited edition, the company intends to inspire consumers to play sports with passion and remind them that sports are not exclusive for elite athletes, but an activity that everyone can benefit from.

Mexicans have traditionally been fans of football and are viewed as enthusiastic players, so it is no surprise that The Coca-Cola Company, through its Mexican subsidiary, took full advantage of the fit between its Powerade sports drink and the forthcoming World Cup. The range will be supported by a marketing push intended to invite consumers to enjoy physical activities.The strategy, devised by marketing agency JWT, will include press, radio and TV, amongst others.

The limited edition drinks have been available in the country since the end of 2009 and can be bought at a wide range of outlets such as supermarkets, cash and carries, pharmacies, convenience stores and sports stores.

Each 500ml bottle retails for approximately Mexican Pesos 10. www.powerade.com.mx

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functionaldrinks zenithinternational newsletter Page 5 Issue 179 24 February 2010

sports drinks

Germany

Refreshing sports enthusiasts

natural mineral water to help meet daily fluid requirements and contains added calcium, magnesium and glucose as well as six essential vitamins to support muscle function, bone health and energy metabolism.

German soft drinks producer Sinalco is venturing into functional beverage territory with the launch of an isotonic proposition.

IsoSport is calorie free, has a fruit content of 10% and brings the company's beverage portfolio count to 15, with additional products apparently to follow.

The hydrating offering is packaged in convenientlysized 500ml returnable PET bottles, sold in cases of 12.

Citrus-grapefruit flavoured, the new drink is based on

www.sinalco.de

probiotics

World

Probing new markets Swedish probiotics specialist Probi has increased its presence in the Americas through two recently announced agreements.

The first was between Probi's partner Institut Rosell and US-based supplement company Jarrow Formulas, which acquired the exclusive rights to sell a dietary supplement based on Probi's bacteria strain Lp299v through the health food channel.

The dietary supplement is scheduled to be launched in the first quarter of 2010 and will be aimed at consumers who suffer from symptoms associated with Irritable Bowel Syndrome (IBS) such as diarrhoea, constipation, abdominal cramps and bloating. IBS is reported to affect around 55 million of Americans, most of which are women.

Probi CEO, Michael Oredsson, commented, "The agreement with Jarrow

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Formulas is an important step in our company's strategy to make Lp299v available on a global scale.The US is an important and growing market for probiotic dietary supplements.We are very pleased to launch Lp299v in the US health food channel. Jarrow Formulas is one of the leading players in the probiotic category. Jarrow's mission is to promote optimal health with high quality, effective, affordable and 'cutting edge' formulations, which are based on sound scientific research."

Meanwhile, Probi has also partnered with German pharmaceutical company Merck, which has the exclusive rights to sell a dietary probiotic supplement based on the same strain across Central and South America.

The product, Bion Transit, will be introduced throughout 2010 as regulatory approval is gained.

The countries covered are Mexico, Argentina Brazil - the most important countries - as well as Venezuela, Colombia, Ecuador and Central America.

Oredsson commented on Merck's Bion Transit, "Merck's Consumer Health Care product Bion Transit, which is based on Probi's bacteria Lp299v, is already on the market in France, Chile and Belgium.We are proud of our cooperation with Merck, one of the world's most renowned pharmaceutical companies and look forward to extending our cooperation to include these new important markets."

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functionaldrinks zenithinternational newsletter Page 6 Issue 179 24 February 2010

nutraceuticals

United States

New beverage not to be sneezed at!

Innovative Beverage Products has added to its burgeoning HealthShot product line with the introduction of an enhanced beverage called Immunity.

Launched in the US in November 2009, the drink contains MaxImmune, WILD's proprietary blend of natural ingredients that strengthens the body's own natural defences. In some clinical studies, the formula has been proven to help reduce the symptoms of the common cold and/or flu.

Each 4oz (125ml) shot is also packed with 50% of the recommended daily allowance (RDA) of essential vitamins including B6, B12 and C. Immunity is blackberry flavoured, comprises 20% juice and uses no artificial colours or flavours.

Innovative Beverage Products' HealthShot range consists of a variety of shot-style drinks fortified with functional ingredients to address specific health and wellness concerns.

Existing variants in the line are Men's Edge, Brain Refresh and Sustained Energy.

To market the entire range, the company has embarked on an intensive sampling campaign at events across the country.

A case of 12 bottles retails for US$29.98 (equating to US$2.50 per unit) and is available to purchase through the company's website as well as selected retail stores and health clubs.

Containing extracts of green tea, grape skin and grape seed, MaxImmune is said to provide three times the antioxidant activity of both red wine and green tea.

www.drinkhealthshots.com

functional dairy

France/Europe

Strengthening the bones of Europe

pan-European scale.

Shortly after it announced the preliminary results of a drink to help treat Alzheimer's, Groupe Danone has commenced testing its bone-strengthening yogurt in its home market.

Originally launched in plain, sweetened and strawberry versions, Densia is reportedly available in plain, vanilla, strawberry and red fruit variants in France and in Italy.

A pack of four pots of Densia retails for Euros 1.49-1.79 depending on the country and outlet.

Launched only six months ago in Spain, Densia has recently been introduced in the southwest of France and in Italy where the company is testing the spoonable yogurt before launching in other countries.

According to the company, the trial phase is expected to last between three and six months.

It has been rumoured that Danone is already in the process of conducting tests in other European markets before launching Densia on a

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functionaldrinks zenithinternational newsletter Page 7 Issue 179 24 February 2010

wellness beverages

United States

Embracing benefits of whole coffee fruit SoZo Global has developed and launched its first antioxidant-rich dietary supplement drink made with coffee berry.

The highly nutritious, free radical zapping drink has been called SoZo and claims to be nature's basket of fruit and vegetables as it is made not only with CoffeeBerry VDF FutureCeutical's proprietary coffee fruit extract - but also with proprietary blends of

nutrient-rich fruit and vegetables.

The company suggests that a 3oz serving of SoZo provides over 10,000 ORAC units, which is the equivalent to approximately 20 servings of fruits and vegetables. Moreover, the company claims the drink can help promote cardiovascular function and help maintain glucose metabolism. The blends also mean that SoZo is a good source of flavonoids, vitamins C and D and adaptogens, helping the body cope with stress.

John Hunter, General Manager at FutureCeuticals and one of the developers of CoffeeBerry, commented, "CoffeeBerry, in combination with other fruit and vegetable powders and extracts, delivers powerful support for diets that may be lacking sufficient fruit and vegetable antioxidants."

SoZo is packaged in 25oz bottles and can be bought through the company's growing network of distributors. www.sozolife.com

functionaldrinks in brief

Europe

Sweden: Swedish probiotics specialist Probi has reported that net sales amounted to SEK 65.5 million for fiscal year 2009. According to CEO Michael Oredsson, performance has been attributed to the company being increasingly not just an ingredients company but also one that offers finished products under its brands.

UK: Skinny Nutritional Corporation, through its distributor Simply Direct, has publicised that its Skinny Water will be available in Ireland and the UK through around 4,000 retail outlets.

Red Bull has announced that from February 2010 it will once again air TV advertisements after finishing 2009 with the highest sales recorded in December alone. The two adverts will be entitled Shakespeare and Newton, and will aim to draw attention at the Red Bull Energy Shot.

Coca-Cola Enterprises has promoted Stuart Agates as Head of Energy, who has been tasked with ensuring the continued growth of the Relentless brand. Agates will replace Dave

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McNulty, who has been appointed Trading Director of On-Premise.

Firefly Tonics has announced that Britannia, its latest addition created through a consumer competition, has been officially launched in the UK. The variant will be sold exclusively at Selfridges from mid-February to mid-March, after which it will also be sold nationwide at Waitrose.

North America

US: FRS Company has appointed Carl Sweat, former Coca-Cola North America executive, as CEO. Sweat will report to Chairman James Quandt.

Who's Your Daddy has announced that it has commenced the production and marketing of its newly designed F.I.T.T. Energy shot. In addition, the company will start trading under the name F.I.T.T. Energy Products after receiving substantial funds from an outsider investor group.

Game Juice has selected IAO Management as its exclusive sales agent for the Midwestern region of the US. The agreement will see the energy drink being distributed in some of the areas with the highest concentration of

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functionaldrinks in brief

World

teenagers, the drink's core target, such as Chicago.

Yakult Honsha has said that it intends to commence production in the US by 2012 to meet growing demand in the country. In addition, it plans to expand sales beyond the West Coast, where they have been concentrated, to the rest of the country.

Following the resignation of Red Bull North America CEO Selim Chidiac, insiders have suggested that the lack of freedom to operate independently from the Austrian headquarters may have tired Chidiac and led him to leave the company.

Martek Biosciences has agreed to purchase Amerifit Brands, a consumer health and wellness company for US$200 million.

Amerifit sells various products centred around women's and digestive health.

Following news around Zenith's forthcoming 4th InnoBev Global Soft Drinks congress to be held in Istanbul on 9-11 March, programming for the company's Global Dairy Congress is now well underway. The event, taking place in the Austrian capital of Salzburg on 27-29 April 2010, is set to start with a plant tour of locally-based Alpenmilch Salzburg and, in terms of functionality, will also look at the role of dairy in sport as well as the use of probiotics and omega-3. This event is sponsored by industry suppliers Elopak, Bericap and Tine.

Discounted rates for the dairy congress are available until 26 March 2010. For further details on both events, please visit: www.zenithinternational.com/events

Celsius Holdings has posted revenue of US$2.4 million for the last quarter of 2009, as well as revenue of US$5.9 million for fiscal year 2009, representing an increase of 126% year on year. The company has cited the growing number of retailers across the country as instrumental for growth.

In other company news, Celsius Holdings has appointed Geary Cotton as Chief Financial Officer.

Vitila Brands, producer of Tranquila relaxation shots, has announced that its beverages will be sold through Hudson News' network of airport stores.

Bebida Beverage Company has signed an agreement with Great State Beverages, a distributor of soft and alcoholic drinks across the northern East Coast. The agreement will see the sale of the Koma Unwind relaxation beverage in the region.

functionaldrinks zenithinternational newsletter

Editor: Jenny Foulds Deputy Editor: Cecilia Martínez Núñez Contributors: Charmaine Holmes Market Intelligence Director: Esther Renfrew functionaldrinks is issued 25 times a year and is only available by subscription: electronic PDF format only £495; hard copy and PDF £595* *VAT chargeable on electronic format to UK companies and EC companies not registered for VAT

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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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