100513_FD_Issue 184

functionaldrinks zenithinternational newsletter This issue at a glance...

Page three Probiotic juice grows in Finland

Issue 184

energy drinks

Finland/Norway

Multiple shots at success Oy Sinebrychoff, manufacturer of the leading Finnish energy drink brand Battery, is the latest category player to jump on the energy shot bandwagon.

The resulting 60ml Battery Shot is completely sugar free and contains just six calories. Like its can sized counterpart, the shot derives its energy giving properties from its caffeine (90mg (almost the same as a 330ml can)), taurine, guarana and vitamin content.

Pages four and five Energy shot taste session review

Page six Smart help for Japanese women

Aimed at 18-35 year old adults, the company is careful to communicate that its high caffeine products should not be consumed by children, expectant mothers or persons that are sensitive to caffeine. Owing to its concentrated composition, EU legislation defines Battery Shot as a food additive, not a foodstuff, with the recommended daily consumption just one bottle per day.

success generated by the launch of a 450ml PET bottle in January (reportedly the fourth strongest selling beverage through Mix stores for a period), has announced the latest Battery news, this time in the form of a cranberry juice variant.

According to Peter Wiencke, the new Cranberry Juiced launch has "more versatile applications than a traditional energy drink." Already available alongside a Juiced offering (based on whole orange juice) in the brand's home market of Finland where it is seeing early success,Wiencke anticipates that the new variant will sell up to 20% of the original.

In terms of adding alternative flavours to the Battery energy drink formulation, Oy Sinebrychoff experimented with a Gingered limited edition variant a few years ago, however Wiencke's view is that this was too similar in 'expression' to the original, with the latest proposition having far greater differentiation.

Promotional activity will include sponsorship of the cinema adaptation of video game Freedom of Game 3, due to hit screens on 15 October 2010, as well as a large scale marketing programme.

www.sinebrychoff.fi www.ringnes.no

Meanwhile in Norway distributor Ringnes, following on from the overwhelming

Page seven Sports drink to launch in India

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functionaldrinks zenithinternational newsletter Page 2 Issue 184 13 May 2010

editorial comment Welcome to the 184th issue of functionaldrinks. Thanks to the kind contribution of several UKbased companies, this energised issues brings you a comprehensive review of our first in-house energy shot taste session by Cecilia Martinez (see Pages 4 and 5).

Meanwhile other developments in the ever active and wider energy drinks category also caught our eye, namely Oy Sinebrychoff's launch of an energy shot in its home market of Finland as well as a cranberry juice variant for the Norwegian market (see Page 1) and Hungarian firm HELL Energy Group's launch and distribution of its eponymous offering through Europe's leading transport and logistics firm (see Page 6).

Scandinavia has also experienced various activity in the functional beverage arena. Carioca AS is spreading the benefits of its superfruit offerings further across the region (see Page 7), Skånemejereir has added a new flavour variant to its probiotic-enhanced juice Bravo Friscus in Sweden (see Page 2), and Vitamin Well AB's functional water line saw the addition of a vitamin D rich offering during the long, sun-deprived winter season (see below).

Also in this issue, AriZona Beverages has come to consumers' rescue in the US with both an enhanced water range called Rescue Water and a new street-art inspired energy drink, amongst other additions (see Page 3).

In Europe Candia, which recently entered the liquid formula milk sector, has now introduced three new powder formulations (see Page 7).

And from Asia, we look at the launch of Powerade in India ahead of Commonwealth Games (see Page 7) and at House Foods’ unveiling of Sasso, a functional beverage solution for busy Japanese women (see Page 6).

Jenny Foulds Editor jfoulds@zenithinternational.com

enhanced waters

Sweden

Loaded with a capital 'D' With the spring season under way, Vitamin Well AB is keen to highlight the continued healthpromoting properties of the latest addition to its enhanced water range.

Called Reloaded, the most recent addition to the company's currently five-strong portfolio, was launched in December 2009 ahead of the winter season and is designed to provide consumers with a rich source of vitamin D, which the body usually generates in the presence of sunlight.

An often lacking vitamin for the Swedish population due to the country's long drawn out winters, the timeliness and positioning of Vitamin Well's launch were cleverly thought out.

In terms of its continued benefits when the

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need for the sunproduced vitamin D is not quite so acute, the lemon-lime flavoured Reloaded also provides a host of other important vitamins and minerals, including folic acid, biotin, magnesium, zinc and selenium as well as B, C and E vitamins to help consumers keep on top of their recommended daily intake.

Packaged in 500ml bottles,Vitamin Well Reloaded, like its existing Everyday, Focus, Defense and Care counterparts, is available for around SEK 22 (€3).

www.vitaminwell.se

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functionaldrinks zenithinternational newsletter Page 3 Issue 184 13 May 2010

enriched beverages

Sweden

New taste for success Sales of its probiotic juice duo, launched in September last year, have been such that Sk책nemejereir has added a new tropical flavour to its portfolio.

Positioned as a first of its kind upon its initial unveiling (see Issue 168), Bravo Friscus, the patent for which is still pending, resulted from the collaborative efforts of the leading Swedish chilled juice manufacturer and probiotic expert Probi.

The innovative product was added as an extension to Sweden's leading juice brand, Bravo (consumed by a reported 54% of the population), and has already proven a hit. Sales are unfurling as

planned, according to the company, with Sk책nemejereir hopeful that Bravo Friscus will follow in the footsteps of ProViva, which is said to be the country's leading health drink and to be consistently achieving record sales.

The new tropical flavoured Bravo Friscus joins the original applecranberry and orange-acerola variants and is available in 1 litre Tetra Pak format as well as 350ml bottles for on-the-go consumption. www.skanemejerier.se

energy drinks/enhanced waters

Covering all angles AriZona Beverages, manufacturer of a portfolio of premium RTD teas, has made a dual-pronged attack on other soft drink sectors with the launch, in close succession, of both AZ Energy and Rescue Water.

United States Relax and Immunity, are enhanced with a proprietary blend of Twinlab vitamins and minerals, and reportedly feature just 25 calories per 8oz serving.

The lemon-lime flavoured Energy contains guarana, green tea and natural caffeine to support endurance and focus, whilst the orange-citrus Detox is designed to aid liver function and replenish the body with ingredients such as Alpha Lipoic Acid, green tea extract, milk thistle extract, and LGlutathione.

The immune-boosting variant derives its free radical zapping credentials from a blend of Arabinogalactin as well as green tea and elderberry extracts, with the berry blend featuring L-Theanine, green tea and lemon balm extracts to help the body deal with stress and unwind.

The first is an offering that claims to 'buck the trend' by combining function with flavour through an infusion of natural juice, including that of pears, apples, peaches and mangoes, a 'careful' blend of vital nutrients and 100mg of caffeine.

The street-art inspired AZ Energy has been presented in two variants, regular and low carb, both of which are free from artificial colours, flavours or preservatives, and has been available since March 2010 for US$1.99 per 15oz can.

Other activity outside the company's flagship RTD tea business includes three 'fast shot' propositions: AM Awake; PM Energy; and RX Energy, spanning both the fast emerging energy shot and relaxation shot sectors and launched during the second half of 2009.

Meanwhile the four 20.5oz offerings in the company's new Rescue Water line, Energy, Detox,

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functionaldrinks zenithinternational newsletter Page 4 Issue 184 13 May 2010

taste testing

United Kingdom

Energy shots taste session functionaldrinks, having recruited a group of enthusiastic participants to take part in its first in-house taste session of the year, involving four different energy shots (consumed on different days, of course!), reviews the varying feedback.

This taste session was facilitated by Uber Drinks, Go Fast Sports UK Ltd and All Day Energy Ltd who kindly provided us with enough samples of their respective Übershot, Go Fast! Energy Shot and iShot (both All Day Original and Decaff variants) to keep us energised for two weeks.

Best tasting energy shot: The açai berry-flavoured iShot Decaff was the clear winner in terms of its taste credentials with over 30% of samplists responding positively.

However, Übershot also secured 20% of votes on taste.

Most energising shot: Perhaps due to its high caffeine content, Übershot claimed pole position here, its effects falling into the higher rating by roughly 30% of samplers, with Go Fast! Energy Shot a close contender.

However, the perceived performance of the four shots was surprisingly varied, as our panel also comprised non caffeine drinkers as well as some that consume an average of four cups of tea or coffee and one that regularly consumes around six cups of coffee. We expected those who are not used to caffeine to feel more intensely alert, but this was not always the case.

Moreover, each shot affected people in different ways, with one individual participant who normally drinks two cups of coffee a day reporting that, although energised initially, she X

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Best packaging and design: The shot that impressed the most was Übershot, with what many described as having a sleek, modern and simple design. Übershot commanded 65% of the votes, however both iShot variants were well liked given their similar modern and clean design. The feeling was that all shots would appeal primarily to young and even younger adults.

Additional feedback by brand: Go Fast! Energy Shot All participants agreed that this energy shot is clearly positioned as a product targeted mainly at young men and sporty types. However, some of the female samplists cited the shot's male orientation as a possible reason not to buy, especially if other, less masculine shots were available.

Go Fast!'s relatively long list of vitamins and extracts when compared with other shots certainly helps to set it apart. This, coupled with its original choice of bottle and cap, make it ideally suited for health stores and other outlets where consumers would expect to find sports supplements and nutrition products.

The results at a glance:

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felt "weird all day" after drinking Übershot (the majority's top performer in terms of effectiveness), whereas other shots did not have the same impact.

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At £1.29, Go Fast! Energy Shot was perhaps the best positioned shot in terms of price. Price seemed to be the strongest deterrent against potential purchases within the team, with the general consensus among respondents being that £1, or under, was a more realistic price point for all shots given their small size. iShot All Day Original As the first of the iShot range, our samplists felt that this has the potential to attract a wider audience, including females, given its simple, unisex design.

In terms of the actual packaging, many thought that the use of a wide and tall cap in addition to a wide-looking bottle made the shot seem to be larger than it actually is - a good thing for those who enjoy the taste of energy shots but not so great for those who are not so keen.

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functionaldrinks zenithinternational newsletter Page 5 Issue 184 13 May 2010

energy drinks

United Kingdom

Other comments were made about the shrink wrap which extends over the cap and therefore does not open so smoothly. iShot Decaff The caffeine-free version of iShot ('i' for 'intense') is açaí flavoured, unlike its Original counterpart which does not specify a taste. This variant was well received and described as having "a fruitier taste" than other shots tested, despite most participants not being familiar with the açaí taste.

In terms of performance, the lack of caffeine made this offering less potent than other shots. An interesting fact is that across all shots, the profile of the samplist whether he or she usually drinks coffee or tea - did not seem to bear any relevance on how the effects would be felt. Apart from individual differences in how substances are metabolised, this could also be explained by a possible 'placebo effect' whereby participants' awareness of iShot Decaff's caffeine-free credentials may have led them to expect a lesser effect, irrespective of whether this is true or not. Übershot With its premium look reflected in its pricing and reinforced by its simple, stylish design, this was the most expensive shot tested.

Another comment with regards to the packaging's simplicity is that Übershot is clearly targeted at consumers who are already aware of or familiar with energy shots and their functionality. In addition, the use of an aluminium bottle made it a winner with some of the participants, one of which said this was "a big plus" in also making the product environmentally friendly and different from the rest.

Another person said that although the shot's price seems expensive, it is still cheaper than a bottle of Lucozade or Red Bull, which do

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not have the same visual appeal.

In terms of flavour, Übershot scored well even though all participants were aware that energy shots are drinks that are taken due to their functionality and not necessarily due to their flavour. This was a comment that kept appearing across the taste session and although none of the participants expected any shot to have an enjoyable taste, there was an expectation of flavours needing to be good enough for the shot to be 'drinkable'.

Other results An apparent issue faced by all of the companies involved in this taste session is that of distribution. Apart from a select number of people that were acquainted with some of the shots, almost no one had seen or heard of them, partly because none of the tasters are typical energy shot consumers but mainly because these are not widely available outside major cities in the UK. Furthermore, the most commonly seen shots around the UK are those with large budgets to spend on marketing and on building distribution, making it harder for start-ups and small companies to build a strong national distribution network.

Taste recommendations: We also asked our samplists to suggest which other flavours would work well in an energy shot and received varied responses with three participants suggesting orange and three more suggesting citrus or lemon-lime flavour. One person talked of citrus flavours being 'refreshing' which, although is not the purpose of an energy shot, could add to the experience. Other flavours suggested were berries, cola or soft drink inspired tastes and, perhaps one that would make the most sense to explore, coffee - although, as with any other flavour, this has the potential to put off consumers who do not like the taste of coffee.

As always, functionaldrinks is keen to receive your feedback. If you enjoyed this taste session feature and would like to see more, please do let us know - or indeed suggest your drink or category to be the subject of our next taste session! www.ubershot.co.uk www.ishotenergy.com www.gofastsports.com

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functionaldrinks zenithinternational newsletter Page 6 Issue 184 13 May 2010

nutraceuticals

Japan

Sassy solution for busy women!

with ring pull cap, the enhanced beverage contains 1,000mg of Citrulline, thought to improve blood flow, 50mg of cinnamomum cassia bark extract, which reportedly has an antidiabetic effect, in addition to vitamin B, ginger and potassium to help support dwindling energy levels.

In February 2010, House Foods, one of Japan's largest food manufacturers and brands, launched Sasso.

Targeted at active female consumers who are on their feet all day, the drink was introduced with an energyboosting proposition.

The product is priced at the local equivalent of â‚Ź1.60 per bottle.

Packaged in an aluminium bottle

www.housefoods.jp

energy drinks

United Kingdom

Firing up for UK launch

making inroads into the UK], along with the capacity and flexibility to accommodate exponential growth over the coming months and years".

Hungarian energy drink producer HELL Energy Group has appointed Norbert Dentressangle Logistics UK to provide warehousing and distribution services in support of its launch in the country.

Norbert Dentressangle is a leading player in Europe and has an extensive UK infrastructure and proven track record in enabling major beverage manufacturers to meet the high expectations of their major retail clients.

Packaged in a 250ml can, HELL Energy is a carbonated drink with caffeine, taurine and vitamins.

Founded in Hungary in 2006, the group has offices and independent sales and logistics systems in three continents, and has aspirations for its eponymous HELL Energy to become the number two international energy drink.

To this end, HELL Energy has already started expansion plans, linking up and becoming an official sponsor of the AT&T Williams Formula One team last year, and has reportedly seen a dramatic increase in international unit sales over the past three years.

In terms of facilitating the brand's UK launch, Norbert Dentressangle will be responsible for the intake, storage, inventory management, picking and distribution of up to four different HELL Energy product lines. According to HELL Energy's Tomas Grosch, the French transport and logistics firm has "both the expertise and infrastructure to support [its

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www.hellenergy.hu

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functionaldrinks zenithinternational newsletter Page 7 Issue 184 13 May 2010

sports drinks

India

Sporting chance in India?

According to reports, Coca-Cola India is planning to launch Powerade in the country ahead of the Commonwealth Games in October.

The official beverage partner is keen to have its parent company's sports drink in its portfolio before the action commences in New Delhi, however is under serious time pressure, according to anonymous local comment. Whilst Coca-Cola is planning to produce the drink

locally, the sceptical view is that the company will resort to importing the product if local production is not up and running in time.

As the designated sponsor, Coca-Cola has the exclusive rights to serve its whole portfolio of drinks to athletes, spectators, team officials and volunteers at the games. However, athletes favour sports drinks, hence its desire to launch Powerade and make optimal use of the event's potential.

PepsiCo has been active with its Gatorade brand in India since 2004, with GlaxoSmithKline having test-marketed its Lucozade offering during the Mumbai Marathon in January 2010 and now preparing for its commercial launch. www.powerade.com

nutraceuticals

France

Milking all options for infant nutrition Responding to the burgeoning demand for infant milks, French milk market leader Candia has unveiled three new powdered formulations.

Having just recently entered the bottled infant milk market, the

company now appears to have changed tack with its latest direction.

Covering stages one, two and three of baby and infants' development, the Babylait brand is being promoted with particular emphasis on its exclusion of palm oil, the subject of much industry controversy of late due reportedly non sustainable plantation practices of certain suppliers and importers.

In support of its latest launch, Candia has entered the market with highly competitive introductory prices of between €10.25 and €12.75 per 900g container. www.candia.fr

wellness beverages

Norway

Spilling rainforest secret Available in Norway since October 2009, Carioca AS' lightly carbonated Amazon Secret fruit drinks will be distributed across Scandinavia by Norcrisp AS as of April 2010.

The story behind the three-strong range of antioxidant, vitamin and mineral rich drinks, comprising Guaraná,Açai and Camucamu & acerola

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variants, began in 1998 when a Cariocan woman (from Rio de Janeiro) visited, and consequently settled in, Norway. Missing some of her home comforts, she set about developing the drinks through partnership with the Satéré Mawé cooperative in Brazil.

Introduced through 7-Eleven stores initially, the all-natural, healthy beverages, interestingly also available in the markets of Iran, Greece and Sweden, can now be purchased locally through the supermarket chains Rema and Coop.

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functionaldrinks zenithinternational newsletter Page 8 Issue 184 13 May 2010

functionaldrinks in brief

Europe

World

UK: The British Soft Drinks Association (BSDA) has published a code of practice covering the promotion of high caffeine content drinks.

Comprising detailed guidelines, the code is designed to ensure that, as the sector grows, consumers have all information needed to make informed choices about purchasing and enjoying high caffeine content soft drinks safely.

India: Kenichi Nakane, Commercial Director of Yakult Danone India has said that the joint venture may launch probiotic yogurts to expand its product portfolio. Nakane said that introducing more products in the country cannot be ruled out as the category steadily expands in India. It has been estimated the probiotic category has been growing at a compound annual rate of 14%.

Sweden: Probiotics supplier Probi has been given six months to alter its probiotic messaging after its health claim rejection was recently written into the Official Journal of the European Union. The unaccepted claim linked Probi's Lactobacillus plantarum 299v strain with improved iron absorption.

North America

US: Bebida Beverages Company has announced a partnership with North Carolinabased wholesale grocery supplier Mosely & Reece Incorporated for the distribution of its 12oz KOMA UNWIND "Chillaxation Drink" as well as its 2oz KOMA UNWIND "Chillaxation Shot".

Hansen Natural, manufacturer of the Monster Energy brand, has reported a 2.5% drop in 2010 first quarter net sales to US$238.1 million, impacted by advance purchases made by customers in the fiscal 2009 fourth quarter on the back of its announcement of a new per case marketing programme for Monster Energy distributors starting in January 2010.

BSN has released N.O.-Xplode Igniter Shot in a Blue Raz flavour. Based on purified water, the 4oz shot features key ingredients such as sucralose and potassium to help promote elevated physical and mental energy, increased blood flow and oxygen delivery to muscle tissue.

It is particularly recommended for sports training purposes.

functionaldrinks zenithinternational newsletter

Editor: Jenny Foulds Deputy Editor: Cecilia Martínez Núñez 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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China: DHA omega-3 innovator Martek Biosciences, which produces the life'sDHA brand, has announced a five year agreement with leading Chinese dairy Mengniu Dairy Company for the use of Martek's ingredients in Mengnuibranded UHT milk amongst other potential applications.

Coca-Cola India has announced plans to take its Burn energy drink to other top cities of the country beyond Mumbai, Delhi and Bangalore in the next few months. Currently only a niche product in India, the energy drink is gaining popularity amongst "youngsters, music lovers and DJs in night clubs", according to company vice president Ricardo Fort, and is eyeing a significant share of the country's energy drink market which is reportedly growing 50-55% per year.

Israel: Ingredients firm Frutarom reported a 9.9% increase in sales in the fourth quarter of 2009 to US$108.5 million. In local currency terms, sales rose 3.1% compared to the same period in 2008. Strengthening of European currencies as well as the Israeli Shekel contributed to a 6.8% increase in the company's sales in US dollars.

Philippines: According to reports, Spanish dairy producer Leche Pascual is to invest €6 million in a manufacturing facility in the Philippines for the production of long-life yogurt and soy drinks.

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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