100311_FD_Issue 180

functionaldrinks zenithinternational newsletter This issue at a glance...

Page four Natural boost for your defences

Page four Heart health drink from doctors

Page five Maximise coffee’s energy potential

Pages six and seven Middle Eastern market in focus

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Issue 180

energy drinks

United States

Blasting the bulge, naturally To Go Brands, a producer of antioxidant-rich powdered drink mixes, has expanded its portfolio with an energising blend that also promises to naturally support weight loss.

Called Trim Energy, the new drink mix is, according to the company, a breakthrough solution for all those consumers who have encountered obstacles whilst attempting to lose weight. Like the company's existing offerings, the new energy blast is also all-natural and has been designed to reduce body fat and speed up the metabolism.

Trim Energy features To Go Brands' Triple Action Edge blend, a combination of green coffee bean, green tea extract and ashwagandha, as well as fibre, vitamins C and B complex and minerals.

The mix also includes the essential mineral chromium, which has been shown to improve the metabolic rate.

while the 135mg of EGCG increases the metabolic rate. Furthermore, ashwagandha is believed to reduce feelings of stress and instead promotes feelings of calmness. Finally, the drink's fibre content supports healthy digestion and increases the feeling of satiety.

Director of Marketing, Tracy DelVecchio, commented, "Trim Energy is designed to safely and effectively jump-start the weight-loss process in a manner that naturally curbs appetite and thereby encourages individuals to develop healthier eating habits. This revolutionary weight loss system uses good-foryou nutrients to rev up the metabolism and enhance fat burning."

The company is very confident about the efficacy of Trim Energy, having engaged in a 12week pre-market evaluation that saw consumers following the company's 'I Dare Me' programme losing up to 25 pounds. This programme includes drinking two servings of Trim Energy daily combined with exercise and a healthy diet.

Consumers can also post comments on the firm's website and receive support from To Go Brands and other consumers.

Moreover, the company has been conducting product sampling at various locations as well as developing partnerships with relevant health and wellness magazines to advertise the product on- and offline.

The ingredients work together to facilitate the weight loss process by speeding up the metabolism, optimising the body's ability to burn fat and helping to control stress.

Moreover, the green coffee bean extract helps decrease body fat by limiting the release of glucose from foods,

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11 March 2010

The Tea Berry flavoured powder mix has been available for sale since December 2009 through the brand website as well as via club and health food retailers including Costco and Whole Foods.

A box of 24 sachets retails for US$25.95 online. www.trimenergydiet.com X

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functionaldrinks zenithinternational newsletter Page 2 Issue 180 11 March 2010

editorial comment Welcome to the 180th issue of functionaldrinks. In another energised issue, it seems that attempts to meet consumers' energy requirements in increasingly innovative ways still continue unabated.

New energy offerings featured here include a vial format by Swiss company Acti Fit, targeted at ski enthusiasts and other active consumers (see below), and also a powder mix for activation with water by US company To Go Brands (see Page 1).

As in the last two issues, we again report on the launch of a functional drink containing the emerging coffee fruit as its star ingredient, this time by US-based beverage and dietary supplement company Fruitology, which has launched three natural energy shots based on the up and coming berry (see Page 5).

followed up on its promise to extend its Koma brand of relaxation drinks, this time presenting a drink designed as a healthier alternative to wine for the on-trade channel (see Page 5). Meanwhile, aptly-named Dox Solutions has introduced its doctor-developed drink to support heart health (see Page 4).

Over in Spain, we see the timely launch of Soccerade, a sports drink promoted by Portuguese footballer Cristiano Ronaldo, as temperatures start to rise ahead of the fast approaching 2010 World Cup (see Page 3). In the UK, we cover the entry of Austrian dairy company Nöm into the probiotic drinks market through its Naturally Active range (see Page 4).

We also look at the latest results of research conducted by Danone in Europe and Canada into the role of protein and fibre-rich yogurt in controlling hunger (see Page 3).

Finally, functionaldrinks features an interview with Francisco Climent, Managing Director Middle East Africa at WILD, who shares his insights on the latest Gulfood exhibition in Dubai as well as on the Middle Eastern functional beverage market (see Pages six and seven).

Cecilia Martínez Núñez Deputy Editor cmartinez@zenithinternational.com

Again in the innovative US market, Bebida Beverage Company has

energy drinks

Switzerland

Respecting your limits

increase their vitality and endurance.

Swiss-based Acti Fit has made its entry into the functional arena with an energy vial targeted at active consumers.

With a specific focus towards ski enthusiasts, the new shot style product delivers a concentrated dose of 'Swiss Made' energy with only natural ingredients that the company claims help individuals exceed their limits whilst respecting the body.Acti Fit, as the company's flagship product is called, features naturally sourced caffeine and taurine as well as schizandra and royal jelly.

The use of schizandra is a long-standing tradition in Chinese medicine and, according to the company, not only is it a potent aphrodisiac but it can also help increase the body's resistance to different sources of stress, be it mental or physical due to strenuous activity.The plant has also been used on occasion by athletes to

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Meanwhile, royal jelly is a honey bee secretion that is naturally rich in vitamin B5.The jelly has been known to help sustain the immune system and the company claims it can be used after periods of stress or recuperation, as it stimulates physical and intellectual functions.

Since the launch of Acti Fit, the company has been busy promoting its eponymous vial, mainly at ski events, but also in airline company Easyjet's in-flight magazine as well as via the social networking site Facebook. In addition, Acti Fit recently announced that Philippe May, reportedly one of the fastest skiers in the world, has become an official sponsor of the prooduct.

Acti Fit has been available in the country since December 2009, throughout the ski season, and can be purchased online through the company's website as well as through various gyms, sports stores and independent cafés.

Two vials of Acti Fit retail for CHF 6.

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functionaldrinks zenithinternational newsletter Page 3 Issue 180 11 March 2010

functional dairy

World

Satisfying hunger for longer Global food giant Danone has published the results of its recent research into the benefits of consuming protein and fibre-rich yogurt to help with weight management.

The first study, conducted by Danone Research, included two experiments with women in France and the UK and involved the use of its Danone Shape Lasting Satisfaction yogurt. In both experiments, the researchers hypothesised that changes in appetite feelings would be accompanied by changes in subsequent energy intake.

In both studies, the researchers found that Shape Lasting Satisfaction induced a 16% reduction in participants' appetite scores and a significant reduction in subjective appetite compared with regular yogurt available in the market.

Fruit, Cherry and Blackberry, Strawberry, Fruit of the Forest and Blueberry, and Exotic Fruits and Pineapple.

Meanwhile in Canada, Danone Inc celebrated the 30th anniversary of the launch of its Silhouette fat-free yogurt which, according to the company, was the first of its kind to be introduced in the country.To commemorate the occasion, Danone Inc launched Silhouette SatisfAction with its exclusive Protei-Fibres formula of milk protein and natural source fibre.

The company cites research that indicates that consuming protein and fibre increases the feeling of satiety. Moreover, according to Danone-led clinical studies, eating one serving of Silhouette as a snack significantly reduces hunger, the desire to eat and increases feelings of fullness and satisfaction over a two-hour period following consumption. Recent consumer research also indicates that 87% of Canadian women say that Silhouette SatisfAction helped them feel fuller for longer and reach the next meal less hungry.

Silhouette SatisfAction is available at all grocery stores across Canada in Strawberry, Peach-Mango, Red Fruit & Muesli and Blueberry-Blackberry Muesli variants. www.danone.com www.danone.ca

Danone Shape Lasting Satisfaction is available in flavour combination packs of Raspberry and Strawberry, Mango and Peach & Passion

sports drinks

Spain

Ronaldo takes shot at Spain Spanish importer Frutapac has acquired the distribution rights for Soccerade, a new sports drink endorsed by Portuguese footballer Cristiano Ronaldo.

The latest agreement will see the introduction of the sports drink, an all-natural product of parent company Leppin, to several retail

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chains across the country including Carrefour, Alcampo and El Corte InglĂŠs.

The importer has already commenced promotion of the drink as well as highlighting its support of the charity Shoe4Africa, a cause that aims to increase education and health levels in Sub-Saharan Africa through running.

Soccerade is available in three variants: Lemon Lime, Ice Blue (raspberry) and Fruit Burst (pineapple-lime) and is designed for consumers of all ages.

Each 500ml bottle of the football-inspired drink retails for approximately â‚Ź0.99.

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functionaldrinks zenithinternational newsletter Page 4 Issue 180 11 March 2010

functional dairy

United Kingdom

Natural step into probiotic market The UK arm of Austrian dairy company NĂśm has entered the probiotic drinks market with the launch of NOM Naturally Active.

The drinks are part of the NOM Naturally yogurt product range which already includes Naturally Creamy, Naturally Good, and Naturally Light.The Naturally range is the company's first branded launch in the UK and Ireland, and the products are produced at its Shropshire dairy which opened last year.

NOM Naturally Active contains the scientifically proven probiotic culture, L. casei, a naturally occurring 'friendly

bacteria' that works in harmony with the body to support natural defences when consumed daily as part of a healthy balanced diet and lifestyle.

The product is low in fat with each 100g bottle containing just 0.9g of fat, and is composed of 100% natural ingredients, including fruit puree and fruit juice.

David Potts, CEO of NOM Dairy, commented: "After a fantastic start at our Shropshire dairy and success with our recently launched NOM Naturally Light range, we are keen to expand our portfolio into the pro-biotic drink market in order to continue to target the healthy lifestyle market.

2010 will be an exciting year for NOM as our production capabilities have increased and we have a number of brand extensions to launch to market.The launch of our new NOM Naturally Active range is the starting point of further product range expansion and big things to come."

NOM Naturally Active drinks are currently available in two flavours - Strawberry and Multifruit, with a Blueberry variant planned. A pack of six bottles is priced at ÂŁ1.59 and can be purchased in Morrisons stores, with distribution due to be expanded to other supermarket chains later this year. www.nomdairy.co.uk

nutraceuticals

United States

Doctor orders for healthy heart Following over two years in development, Dox Solutions has announced the launch of its first functional beverage targeting heart health.

Aptly named Dox Cardio Water, the new product was developed by a team of three doctors, Dr Armand Dorian, Dr Anthony Cardillo and Dr Guillermo Castillo, who are also the company's founders.Their beverage offering reportedly helps consumers develop and

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maintain a healthy heart and cardiovascular system as well as fight other age-related symptoms thanks to its antioxidant properties.

To this effect, the drink features resveratrol as its main ingredient, reportedly containing enough of the supplement to equal more than 100 glasses of wine. In addition to this, the drink is sweetened with stevia and erythritol, meaning that each 12oz serving delivers only 30 calories.

Dox Cardio Water is pomegranate and grape flavoured water that also features antioxidants from its pomegranate content.

Dox Cardio Water is available in 12oz aluminium bottles that can be bought through online retailer Amazon as well as via a range of independent, small retailers and health food stores throughout the state of California.

A case of 12 bottles retails for around US$36 online. www.drinkdox.com

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functionaldrinks zenithinternational newsletter Page 5 Issue 180 11 March 2010

energy drinks

United States

Harnessing full benefits of coffee

Energy is said to provide a full 100% of the recommended daily allowance (RDA) of the immune- and energy-boosting vitamin.

Fruitology, beverage and dietary supplements producer, has introduced three new energy shots featuring KonaRed branded coffee fruit extract.

The Coffee Fruit Energy Shots are reportedly the first to feature coffee fruit as their primary active ingredient. As well as offering natural caffeine equivalent to a cup of coffee, the shots are packed with antioxidants to help slow cognitive decline and risk of disease as well as maintaining a strong immune system.

Moreover, the company claims the new shots are different from other such competing products in their capacity as an excellent natural source of vitamin C through a proprietary Jump Start Energy blend. A shot of Coffee Fruit

The shots, like all other offerings in Fruitology's beverage portfolio, are all-natural and, being hot filled, are free from preservatives.

Laurie Speaks,Vice President of Sales and Marketing for Fruitology, commented, "We are thrilled to not only be the first to bring a coffee fruit energy product to consumers, but also to offer them an all-natural alternative to the preservative-filled shots currently on the market.

With the addition of our new Coffee Fruit Energy Shots, Fruitology continues to show why our super fruit line is superior and trusted worldwide."

The shots are available in Chocolate Cherry, Orange Caramel and White Chocolate Raspberry variants, providing between 50 and 60 calories per 2.5oz shot depending on the flavour.

Coffee Fruit Energy Shots can be purchased through the company's website as well as at select retail outlets. A six-pack retails for approximately US$17.94 online. http://coffeefruitenergy.com

nutraceuticals

United States

Wind down without alcohol Bebida Beverage Company, producer of the drinks Koma Unwind and Chillaxation, has expanded its relaxation beverage range.

The new drink, called unWINEd, falls under the Koma Unwind umbrella and was designed to be sold through bars and restaurants for those consumers looking to relax without consuming alcohol.

The drink will be very similar to the original Koma Unwind, which features melatonin to promote relaxation and healthy sleep, as well as milk thistle and valerian root, the latter known for its sedative qualities. unWINEd will be packaged in a

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lightweight plastic bottle produced by EnVino.

Reportedly, EnVino bottles represent only 13% of shipping weight when compared with beverages bottled in glass, where the material usually represents 45% of weight; this ultimately allows more product to be shipped at one time.

As functionaldrinks reported at the time of the initial Koma Unwind launch (see Issue 162), Bebida Beverage Company President Brian Weber then revealed that the company intended to expand the Koma brand into a five-strong range of drinks, although could not divulge specific details at the time. Based on other trends within the area of relaxation drinks, our prediction is that the next two variants could well include a low-calorie offering and/or a night-time specific drink.

Weber commented on the development of the relaxation beverage segment, "We predicted the growth potential of this category far before its rising popularity.The opportunity it creates is insurmountable and BeBevCo will be the leader of this category as it continues to grow."

It is expected the new drinks will soon be available through the on-trade channel across the US.

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functionaldrinks zenithinternational newsletter Page 6 Issue 180 11 March 2010

ingredients

Middle East

Regional focus At the recent Gulfood exhibition in Dubai on 21-24 February, exhibitors and visitors had the opportunity to meet and network with hospitality, food and drink and ingredients companies.

Following this, functionaldrinks had the opportunity to interview Francisco Climent, Managing Director Middle East Africa at WILD. Climent shared his thoughts on the event as well as on the state of the Middle Eastern functional beverage market.

FD: How was your experience of Gulfood Dubai?

FC: Our strategy of focusing on naturalness and functionality at Gulfood clearly paid off.We welcomed a lot of customers from many different countries, not only from the Middle East, but also from Africa and the Indian Subcontinent. Our product ideas for the beverage industry were well received, and we had several promising discussions. In general, the number of Gulfood exhibitors and visitors was high compared to last year, despite economically difficult times.

Africa region.The average growth rate will be 10% in the next four years, though on a lower volume base.The categories of ready-to-drink teas and near waters are expected to continue to grow as well. In terms of volume, carbonated soft drinks and packaged water have the highest shares, followed by still drinks, nectars and juices.

Independent of categories, we are realising that innovation, naturalness and functionality have recently started to play a more important role in the Middle Eastern market, which has so far been quite conservative.

FD:What are the main consumer demands from the beverage industry?

FC: Consumers ask for refreshing, great tasting beverages and, at the same time, health awareness is rising. Since consumers believe that natural ingredients contribute towards a healthy diet, natural products are in growing demand.

Malt drinks, for example, perfectly meet these demands.They are excellent thirst quenchers and a natural, healthier alternative to traditional soft drinks. Furthermore, they specifically target adult taste preferences and demands in an innovative way, which is why beverages with a malt concentrate base are becoming very popular in the entire Middle East region.The Gulfood trade fair showed this clearly. Our customers enjoyed the different product formulations and flavour alternatives for the malt-based beverages we presented at the exhibition.

FD:Were there any notable developments at the exhibition?

FC: Gulfood provided a separate platform for ingredients suppliers in a new pavilion for the first time this year.This was a great benefit for suppliers themselves as well as for the producers.

FD: Are there any new trends, for example in product formulation, positioning or ingredients?

FC: Trend-setting products meet the consumer demands for naturalness, health and functionality. At WILD, we enforce the trend towards natural products in the Middle East.We offer the suitable high-quality ingredients and creative concepts for beverages that are positioned according to current demands. For example, at Gulfood we introduced our 'Energy plus juice' concepts.They combine the functionality of a traditional energy drink with a juice content ranging up to 30% and thereby provide a healthier image.

Furthermore, the caffeine, the flavours and colours all come from natural sources. In line with the current growing attention to healthy nutrition, sugar-reduced or sugar-free products are another trend, especially because of the high

FD: How has the Middle East market evolved in the last few years with regards to functional beverages?

FC: The energy drink market has moved in a positive direction and is well established, with high growth rates of 8.5% in 2008, and good prospects to consolidate growth in the coming years.With a view towards future developments, other functional drinks, such as sport drinks, are expected to have the highest growth rate of all beverage categories in the Middle East and North

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functionaldrinks zenithinternational newsletter Page 7 Issue 180 11 March 2010

ingredients

Middle East

percentage of diabetics in the Middle East. At Gulfood, we presented new sugar replacement solutions for the beverage industry, for instance partial or total sugar replacement with stevia extracts.These are obtained from the stevia leaf and, although up to 300 times sweeter than sugar, stevia has no calories and therefore is suitable for diabetics. Another sugar replacement option is our sweetening system Sweet Up.This not only provides manufacturers with cost advantages, but will also help to reduce the sugar intake and obesity problems among consumers.

FD: Do you think there are barriers businesses need to overcome to introduce novel functional beverages?

FC: In contrast to the European Union, there is no specific Food Legislation

related to novel functional ingredients in the Middle East, which is challenging when introducing new products. In the majority of cases, the FDA or the European legislation are the main references when considering the introduction of functional beverages containing novel food ingredients. Not a barrier, but a challenge, too, is to increase awareness of new products among consumers, since the Middle East market is traditionally very conservative.

FD: How do you think the region will evolve in the next five years?

FC: There are plenty of factors that will help consolidate robust growth rates for the beverage business in the Middle East in the years to come.

These are particularly the population growth, the high average temperatures in the area, the current investments in modern filling technologies, as well as in innovative and convenient packaging, combined with the rising per capita income, and the new taste experiences and product trends. www.wild.de

functionaldrinks in brief

Europe

Groupe Danone has resubmitted the immunity health claim dossier for its Actimel product, having withdrawn it towards the end of 2009.The company has clarified that it has not included any new science, but has instead amended the wording to very closely match already available scientific evidence.

Sweden: Probiotics firm BioGaia has announced plans to expand its distribution into an additional 20 countries in 2010.

UK: GlaxoSmithKline has reported a 3% increase in fiscal year 2009 turnover to £851million for its nutritional healthcare division, with Lucozade declining 3% on 2008 sales impacted by lower sales in the impulse segment of the UK market.

Boost Drinks has announced record sales growth of 26% for fiscal year 2009 to £12 million.

The company has said that during 2010 it will focus on new product development to widen the category as well as launching its first ever direct to consumer campaign.

In other company news, Boost Drinks has added a cola variant to its energy drink line.The new beverage is available in 250ml cans as well as 500ml and 1 litre bottles. Boost Energy Cola retails for £0.69, £0.85 and £1.19 per the respective packaging formats.

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According to retail data released by soft drinks company AG Barr, the UK soft drinks market increased by 2% in 2009.The company also said that it has signed a 10 year sales and distribution agreement with Rockstar Inc as part of the companies' commitment to grow the brand in the UK. Aimia Foods and sportswear brand No Fear have teamed up to launch an energy drink called No Fear Extreme Energy.The drink will be targeted at 16 to 24 year-old males and is bottled in a unique 485ml resealable can. It will retail for around £1.09 to £1.19 apiece.

Hansen Natural Corporation has launched Monster Energy Shot in a 90ml bottle as well as a new 500ml fruit juice-based variant called Monster Khaos.

Coca-Cola Great Britain (CCGB) has unveiled its 2010 FIFA World Cup campaign that will include a TV ad featuring English footballer Wayne Rooney.The ad will highlight that CCGB's Powerade will be the on-pitch hydration beverage throughout the tournament.

North America

US: Bebida Beverage Company has signed a distribution agreement with Novelties Express to distribute its range of functional beverages across

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functionaldrinks zenithinternational newsletter Page 8 Issue 180 11 March 2010

functionaldrinks in brief 1,000 convenience stores in Richmond,Virginia.

Yakult USA Inc's probiotic drink will be sold through Wal-Mart, Safeway, Albertsons, and other chain supermarkets across Colorado and New Mexico.

Snow Beverages has announced that it has secured US$650,000 in angel financing to support the marketing of its Natural Soda + Vitamins line. It is also expected that the financial support will help expand distribution of their drinks in New York.

A study commissioned by Sambazon has revealed that consuming açai helps lower cholesterol, raise antioxidant activity and significantly reduce postprandial (after eating) increases in blood glucose levels. mix1 Beverage Company has appointed Doug Rauch to its board of directors. Rauch has over 30 years of experience in the grocery industry.

Brain Twist's Slap Energy is reportedly gaining presence in the Coca-Cola system where bottlers do not sell Monster energy drink. Brain Twist has said that it expects Slap Energy sales to reach one million cases this year, up from 100,000 cases in 2009.

CytoSport has been promoting Muscle Milk by giving consumers a free two week trial gym membership at four different gym chains where the drinks are sold.

Hansen Natural Corporation saw a 10.6% increase in full year 2009 net sales to US$1.14 billion, with net income almost doubling to US$208.7 million.

Red Bull posted a 1.5% drop in full year 2009 net sales to €3.27 million with can sales down 0.4% to 3.92 billion but reported strong sales in the Far East, Germany, France and Brazil.

According to data published by IRI, sales of energy drinks in the year to end December 2009

functionaldrinks zenithinternational newsletter

Editor: Jenny Foulds Deputy Editor: Cecilia Martínez Núñez Contributors: Laura Knight 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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reached US$5.58 billion, up 4.9% on 2008.

Meanwhile, sales of sports drinks declined 8.7% during the same period to US$3.38 billion. In each category, the brands to have performed the best during 2009 were Starbucks' Doubleshot Energy and The Coca-Cola Company's Powerade Zero respectively.

Dajomi Brands has announced that Alford Distributing and Elyxir Distributing will add NOHO recovery drink to their portfolios and distribute the beverage throughout the state of California.

According to other industry sources, the steady growth seen by digestive health, cholesterollowering and joint health functional products has been attributed to the fact that most baby boomers have little to no debt and have accumulated assets that allow them to spend more on their health and on premium products.

World

Brazil: Results of a study conducted in Brazil have suggested that adding açai pulp to probiotic yogurt enhances the shelf life of the dairy product as well as enhancing its fat profile by reducing the amount of saturated fatty acids and increasing that of polyunsaturated fatty acids.

China: Probiotics specialist China Biotics Inc reported a net sales increase of 47% to US$23.3 million for the third quarter of 2010 ended December 2009.The increase was mainly attributed to a rise in bulk sales and overall higher demand across the company's product lines.

Japan: Japan Tobacco has announced a 2.4% decrease in net beverage sales to Yen 142.7billion in the nine month period to December 2009, with strong performance from its pharmaceutical business.

Malaysia: Fraser & Neave has won a contract for the sale and distribution of Red Bull in the country worth US$174 million.The initial contract is for five years and takes effect on 1 April 2010.

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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