functionaldrinks zenithinternational newsletter This issue at a glance...
Page three Menopausal relief in the US
Issue 185
energy drinks
Poland
First shot at the market
taurine and caffeine (174mg per 100 ml).
Polish soft drinks company Ustronianka, manufacturer of the country's leading mineral water brand of the same name, has launched a Riders Energy Shot proposition under its Riders energy drink portfolio.
Riders Energy Shot is targeted primarily towards male consumers aged 16-49. It is has a strong following amongst all motor sport fans and particularly amongst speedway fans.With speedway extremely popular in Poland, Ustronianka was previously a sponsor of one of the national teams. Current promotional activity is focused on the motor sport community, involving the recent sponsorship of drivers Tomasz Porebski and Tomasz Spurek in the Lotos Baltic Cup Rally, where they achieved third place in a CitroĂŤn C2-R2 Max. Leclerc has become the first supermarket chain to sell Riders Energy Shot but more are expected to follow suit. In terms of the shot's larger counterparts Riders Energy Drink and Riders Cola Energy, these continue to be available in Kaufland, Auchan, Leclerc, Eko, Real, Carrefour, Intermarche and Eurocash Cash & Carry stores across Poland. Last year, both drinks were launched in the US by WallyWater Distributors, with Riders the brand sponsor for one of the teams taking part in three Rally America national events, including Rally in 100 Acre Wood.
The company's latest offering is claimed to be the first of its kind to be introduced to Polish consumers, beating the international energy shot brands Burn and Red Bull to market. Page six Americans enjoy eternal youth
Pages five and six US coca leaf market review
Page three Football fans get healthy in Italy
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Ustronianka's activity in the Polish energy drinks market is viewed as being pioneering. Having introduced Riders Energy Drink to market in 2008, the company then launched Riders Cola Energy Drink (featured in Issue 161), again the first of its kind of for the Central and East European market and an alleged breakthrough in the region's energy drink concept. Riders Energy Shot is packaged in 60ml PET bottles, with purposely created 12 bottle displays also available.The concentrated energy formulation is said to contain the same quantity of energy-boosting ingredients as competing products packaged in 330ml volumes, featuring niacin, pantothenic acid (vitamin B5), vitamin B12,
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The Riders energy drink brand is said to be constantly growing its sales as well as its market share within the local market.
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functionaldrinks zenithinternational newsletter Page 2 Issue 185 27 May 2010
editorial comment Welcome to the 185th issue of functionaldrinks. As is clear from our front page, the burgeoning energy shot trend is expanding its reach, with this issue bringing news of leading Polish mineral water company Ustronianka adding a concentrated offering to its Riders energy drink range (see Page 1). Another development in the energy drinks category is the launch of an entire energy-boosting range, comprising an energy drink, energy shot as well as fruit and cereal bars, by German healthy nutrition company Schneekoppe for its home market (see Page 4).Also destined for the German as well as the UK market are two new superfruit drinks - Lychee & Goji and Seaberry & Goji - by US-based firm Gloji LLC (see below). Other developments within Europe include Danone teaming up with the Italian football team ahead of the World Cup to introduce collectible fridge
magnets with bottles of its Actimel immune health drink (see Page 3). Meanwhile Spanish dairy Leche Pascual has introduced ViveSoy Ligera as a lighter and better tasting offering to increase soy milk's appeal to a wider audience (see Page 7). As always, the US continues to be a fountain of innovation. Beveragette Ventures, a company founded by women for women, has added a Keep it cool variant to its GEM functional beverage range to help alleviate menopausal symptoms (see Page 3), whilst The Relaxing Company has unveiled what it claims is the first RTD tea to enter the relaxation drink segment (see Page 7). Joint Juice Inc has relaunched its glucosamine and chondroitin supplement drink with new ingredients, a new flavour and new packaging (see Page 4), with health and nutrition company Our World Network having introduced its age-defying YouthJuice and YouthJuice Restor (see Page 6). Also in this issue, thanks to the insightful input of Kuka Drink, Cecilia MartĂnez brings a review of the current situation surrounding coca leaves and explains the company's efforts to overturn the negative stigma attached to the cocaine-producing plant (see Pages 5 and 6). Jenny Foulds Editor jfoulds@zenithinternational.com
wellness beverages
United Kingdom/Germany
Bright new idea in juice
superfruits they contain.
US-based company Gloji LLC has added two new superfruit variants to its 'new kind of juice' range, Gloji. To be rolled out in the markets of the UK and Germany, the latest Lychee & Goji and Seaberry & Goji offerings will be packaged in the same light bulb shaped glass bottle as the existing Goji & Pomegranate (Gloji Mix) and Goji & Paradise Apple (Gloji Glow) versions.
Known as the 'King of Fruits', lychees are known for their irresistible taste and their combination with goji berries is said to create the perfect balance of flavour, unparalleled health benefits and general wellbeing. Goji berries, renowned for their anti-ageing properties, have been blended with seaberry for the other latest addition. Referred to as 'the ultimate gift of nature', seaberry delivers a host of vitamins, antioxidants and other healing compounds. With the new juices designed to energise both body and mind, the brand's website, equipped with mesmerising meditation music, has been simply yet powerfully designed to promote the product's premium positioning and natural health benefits.
Although not functional per se in the strictest sense - i.e. not featuring any additional physiologically active ingredients - the uniquely-packaged drinks are promoted based on the inherent functionality of the antioxidant-rich
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wellness beverages/ nutraceuticals
Cool solution for menopausal symptoms
United States surveys, interviews with doctors, nutritionists and scientists to determine the right blend of ingredients that were backed by scientific evidence to support their effectiveness.
Beveragette Ventures, a Seattlebased company owned by females and set up to better cater for women's health needs, has added a 'Keep it cool' offering to its GEM functional beverage range. With claims of reducing hot flashes, night sweats and irritability, the Keep it cool formulation - said to be the first such RTD offering to address menopausal problems - contains three key active ingredients: non-soy isoflavone, black cohosh and a blend of adaptogenic herbs, the health claims for which are supported by their respective manufacturers. The new drink is based on purified reverse osmosis water, with the synergistic effect of its ingredient combination reportedly providing greater relief than the individual ingredients would do alone, allowing women "to get their quality of life back," according to one of the company founders Shannon Reagan-Henry. The latest addition to Beveragette Ventures' RTD portfolio joins other variants in the already successful GEM line: Let it go (stress relief); Lookin' good (anti-ageing); C'mon, focus (mental acuity) and Lean on me (bone health). Prior to launch, Keep it cool underwent a year-long development phase, involving focus groups,
The concept for the company itself started with a group of women sitting around a kitchen table who recognised gaps in the marketplace for beverages targeted specifically at women that were truly functional and tasted great.Their aim was to create something that was unique, natural and risk-free, and gave women an appealing alternative to expensive supplements. Officially launched nationally in September 2009 and priced at US$3 per day, Keep it cool has performed very well in its eight months of availability. 95% of consumers that have tried the product have signed up for the company's autoship programme, with shipments in excess of 50,000 cases (one case equals a month's supply) to all 50 US states and all major provinces of Canada. Beveragette Ventures has also had interest from large distribution outlets in New Zealand, South Africa and the Middle East.The company is currently working on distribution terms and hopes to have secured agreements during the remainder of the first half of 2010. In terms of brand extensions, the female entrepreneurs are in the process of extending the GEM line to include sugar-free and convenient travel packs and are close to the final formulations, focusing attention on the final products' taste.The company also intends to expand its marketing efforts in 2010 to include radio, Internet, e-mail and social media to help it achieve its aggressive target for the year. www.drinkgem.com
functional dairy
Italy
Immune health drink targets the fridge
collect, each featuring a different player and an individual image capturing the players during spectacular action moments.
In the run-up to the World Cup, Danone has teamed up with the Italian football team through its natural defense-boosting functional dairy brand, Actimel. Giving away fridge magnets in the shape of an Actimel bottle with six-packs of its product, the dairy giant has put together 28 magnets to
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In other Actimel news, a company-funded study involving 600 children between the ages of three and six and conducted at the Georgetown University in Washington, US, has shown that the daily consumption of a probiotic drink could help prevent infections, such as those of the ear or sinus, in youngsters by as much as 20%. Published in the European Journal of Clinical Nutrition, the trial is said to be "the largest probiotic clinical trial conducted in the Americas and provides much needed data," according to the authors of the study.
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energy drinks
Germany
Testing new ground With over 80 years history, healthy, quality nutrition company Schneekoppe has followed brands such as Red Bull to venture into energy drink territory. Teaming up with Formula One's Michael Schumacher, whose recent comeback to the track following his retirement seems to have caused media uproar, the German nutrition firm has launched an entire energy-boosting range. This comprises both an energy drink and an energy shot as well as energising fruit and cereal bars. Both the now 41 year old racing driver and Schneekoppe have high hopes for the new energy range. At present, the company's average consumer age is around the 50 year old mark, whereas it is hoped that the new offerings will help lower this to 30-40, thus considerably broadening the firm's consumer demographic, although leaving it with two distinct groups. Sceptics appear to remain unconvinced by Schneekoppe's move, arguing that the energy
drinks tangent is too far removed from consumers' long-standing understanding of the brand and its product portfolio. With value sales of around â‚Ź40 million and having only just returned to breakeven point after a lean three years, not to mention its '70 golden years' being long since over in terms of its consumer following, the company clearly views the stark diversification as a risk worth taking, and indeed the only way of securing itself a future. In other German news, although not functional, Coca-Cola Deutschland - having witnessed a surge in competition from returnable packaging formats, is putting up a one-way, small packaging front and is seeking to be first to market with the launch of a 250ml can of its flagship cola drink for the impulse, on-the-go consumption channel. This will be available from April 2010. www.schneekoppe.de
nutraceuticals
United States
Brand supplement The glucosamine and chondroitin enhanced Joint Juice Supplement Drink, originally developed by an orthopaedic surgeon to keep joints healthy and flexible, has now been reformulated, repackaged and repositioned. Now containing vitamin D3 and chondroitin, two important ingredients for joint and bone health, the newly relaunched Supplement Drink also contains a full day's supply of glucosamine (1,500mg per bottle), vitamin C and antioxidants in the same way as the original formulation. Officially unveiled in April 2010, response to the new launch has been extremely positive, according to San Francisco-based joint health beverage company.The product will be supported by an integrated marketing campaign
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this year, including partnership with ultramarathon runner Dean Karnazes, in addition to exciting new advertising activity. Now without carbonation, with two new flavours - Cran Pomegranate and Blueberry Açaà - which were much preferred in taste tests compared to the original tropical flavour, and packaged in a resealable bottle, the new Joint Juice Supplement Drink can be found in the vitamin aisles of warehouse club, mass merchandise, grocery and drug stores, in addition to being available for purchase via the brand website. Six 8oz bottle packs are available for US$5.99 whilst 30 bottle packs are priced at US$16.99 in club stores. One bottle per day is said to suffice in terms of reaping any benefits, however consumption of more than this will not have any adverse effects. A new drink mix is reportedly scheduled for launch in June this year.
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World
Coca leaf review
Page 5 Issue 185 27 May 2010
Since first covering the launch of Kuka, the 'unique healthy beverage' (Issue 177), functionaldrinks' Deputy Editor Cecilia MartĂnez caught up with Alireza Saifi of Kuka Drink who told us more about the company's latest developments. Just in April 2010, Kuka Drink signed two distribution agreements.The first was with Exclusive Beverage Distributors, which serves the New York City, Nassau and Suffolk counties in New York State, and will see Kuka sold through high-end supermarkets, convenience stores, fitness clubs and restaurants. The second agreement was with Crescent Beer Distributors for the distribution of Kuka in Western Pennsylvania.This joining of forces covers over 6,000 distribution points between convenience stores, local retailers, bars and restaurants. In addition, Kuka Drink has formed a partnership with BG Enterprises to market Kuka in Pennsylvania, North Carolina,Tennessee,Virginia and Florida throughout BG Enterprises' 2010 events calendar, involving 16 events across the six states and each with an audience of 5,000 people. Distribution deals aside, Kuka Drink has been focusing on educating consumers about the benefits of coca leaves and correcting false myths surrounding its properties all whilst avoiding touching upon the political aspects of coca leaves.
“There has been a 180-degree change in how coca leaves are perceived...� enhanced
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Because of this, member countries of the United Nations (UN) signed the 1961 Single Convention Act on Narcotic Drugs which sought to eradicate the growth and consumption of coca leaves in all its forms. Critics of the Act argue that this assumes that the coca leaf and the drug cocaine are the same, which is reportedly not true as coca leaf is typically consumed by people from the Andes with no repercussions. The effect of this was that coca leaves could only be cultivated for medicinal purposes as well as for the production of the syrup used in CocaCola, the producer of which is said to monopolise the legal market. Even though The Coca-Cola Company successfully fought to be allowed to continue using coca leaves, many industry insiders have complained that the UN did not set clear guidelines or parameters to define what can be classified as coca leaf extract free from the cocaine alkaloid. Nonetheless, this legislative loophole has allowed several companies such as Kuka Drink to legally produce and sell soft and alcoholic drinks featuring coca leaves. Examples of this are more abundant in South America, where consumers are better acquainted with the leaf's benefits, and include products from the original Coca-Cola to Red Bull Cola, as well as the Bolivian liquor Agua de Bolivia and the government's own Coca-Colla drink. In countries such as Peru and Colombia, companies have focused on creating confectionery based on the leaf. In the midst of a less than welcoming regulatory environment, Kuka Drink has been slowly implementing a grass roots approach with the dual aim of building the brand and its sales as well as educating consumers.
To put coca leaves in context, Saifi told functionaldrinks that these have been consumed for around 4,000 years for their nutritional value and have even been used in cooking. Moreover, there are records that the leaves were already used as a surgical aid 2,000 years ago. But it was not until the last century that the cocaine alkaloid was found and isolated to create cocaine.According to Saifi, there has since been an 180-degree change in how coca leaves are perceived and in some cases used.
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When we asked Saifi about his strategy to counter commonly held false views on coca leaves, he mentioned that the first mission is to build awareness about the leaf's nutritional properties, such as it containing more vitamins than certain fruits. Once completed to a level of satisfaction, the company would focus exclusively on growing the drink. According to Saifi, in the regions (continued on Page 6)
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Page 6 Issue 185 27 May 2010
where the drink is sold, the company will conduct onsite sampling so that consumers can not only taste the drink but also learn about the coca leaf, its nutritional properties and history, as well as building just enough curiosity to trigger consumers' own research into coca leaves. Saifi confided that the company does receive enquiries from all types of individuals asking why the leaves are illegal after having done their own research. However, Saifi insists on delivering clear messages about the coca leaf and Kuka as a natural, refreshing drink. These efforts are already paying dividends, as is apparent by the firm's increased distribution network, as well as Kuka being chosen as an official drink for the Archaeological Institute of America's recent gala dinner.
“Keen to work with ingredients or pharmaceutical companies...�
As both the company and drink grow, Saifi said that he would like to hold events to further educate consumers about the many health benefits of the coca leaf. In line with this, he is keen to work with ingredients or pharmaceutical companies to explore the nutritional properties of the leaf.
footprint to other countries where distributors have shown interest in Kuka.This is in addition to ideally wishing to work with the Peruvian or Bolivian government to help them promote the coca leaf and hopefully make a difference for all the local coca growers that have been affected since the 1961 Single Convention Act was signed, and indeed prevent any more over-reactions from governments as was the case when trace amounts of the cocaine alkaloid were found in cans of Red Bull Cola, leading to its temporary ban in several countries. Irrespective of Kuka Drink's efforts in the area, Saifi concluded that for coca leaf growing to become legal again, coca producing countries such as Peru and Bolivia need to seriously demonstrate their commitment to eradicating coca misuse and promote its correct usage with scientific backing of its health benefits. Nonetheless, Saifi is confident that changes will start to occur in the near future. If this is the case, it would be interesting to see Kuka become a pioneer in coca-based health beverages and improve the lives not only of those who consume it but also of those who grow it.
Other future plans include expanding Kuka's
www.kukadrink.com
enriched beverages
United States
Juice flows from fountain of youth Our World Network, a formulator and distributor of health and nutrition products, has released two new organic beverages,YouthJuice and YouthJuice Restor.
Fucoidan, bladderwrack and sea lettuce), the new youth elixirs' natural ingredients have been recognised by numerous scientific studies that support their ability to reduce the effects of oxidative stress, inflammation and toxins, and have been shown to support for energy, immunity and overall health.
Backed by a reported 40 years of science and a result of four years of research and development, the new drinks are positioned as powerful functional foods that are designed to protect the body from today's most pressing health challenges, according to company co-founder and president, Robert Edwards.
YouthJuice and YouthJuice Restor are positioned as the first such products to combine the 'Orchard to Ocean' approach of whole-food dietary supplementation.As well as containing clinically supported amounts of Ellagitannins, Fucoidan, Resveratrol and vitamin D, the YouthJuice Restor variant is also fortified with 18 highly-absorbable essential vitamins and minerals to support immune health. For the development of its new functional beverage propositions, Our World Network entered into a collaboration with scientists at the University of British Columbia, with research funded by a Canadian government research and development grant.
Based on seven berries and sea vegetables (elderberry, raspberry, blueberry, blackberry, boysenberry, blackcurrant, cranberry, kombu
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wellness beverages
Spain
Lighter approach to soy Leche Pascual has added a new offering to its soy beverage line in the form of ViveSoy Ligera.
supported by a national level advertising campaign later in the year, which has been created by advertising agency Bap&Conde and will span various media channels from TV and radio to magazines to ensure that the product resonates with its main target market women.All material has been designed to emphasize the product's low calorific credentials and smooth taste as well as the brand's endorsement by Spanish television presenter, Nuria Roca.
The latest addition is said to have the same benefits and characteristics as the entire ViveSoy line, however contains less calories (29 per 100ml) and a smoother flavour, which makes soy more accessible to a wider audience, according to product marketing manager Esther Marinas.
Sampling activities will also take place throughout the year, the first phase of which will involve 3,000 bottles and promotional pamphlets and will take place from May 2010 through retailer EsloĂşltimo until supplies have been exhausted.
The launch of ViveSoy Ligera will be
www.lechepascual.es
nutraceuticals
United States
Tea leaves consumers feeling relaxed Buoyed by the popularity of recent launch Mary Jane's Relaxing Soda (Issue 170), The Relaxing Company has developed another innovative product for the relaxation drink category in the form of a ready-to-drink (RTD) tea.
Kava root extract is primarily used to experience euphoric relaxation and to combat stress, insomnia and anxiety, owing to its active compounds called kavalactones. The Relaxing Company uses only premium Kava root grown on the South Pacific island nation of Vanuatu, which is known for producing the world's finest Kava. According to Matt Moody, president of The Relaxing Company, "We created The Relaxing Tea for people who want a healthy, natural way to relax and unwind. It only has 13g of sugar per serving and has an undeniable relaxing effect." To market the brand, The Relaxing Company is making use of social media, with the drink marketed on Facebook and Twitter. At present, distribution of The Relaxing Tea is limited to the US, where it is sold through select retailers nationwide. A 16oz glass bottle carries a recommended retail price of US$2.49, with 4- and 12- packs also available to purchase from the company's website.
The California-based company claims The Relaxing Tea is the world's first RTD tea to enter the relaxation drink sector. The beverage contains only natural ingredients, blending decaffeinated green tea and black tea with kava root extract, to create a soothing effect. It is sweetened with agave and cane sugar.
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functionaldrinks in brief
Europe
Finland: Finnish scientists at the University of Turku have reported that the consumption of probiotic cheese may protect and enhance the immune system of the elderly. In the study, a group of elderly people were invited to consume a placebo or a slice of probiotic Gouda cheese with their breakfast for four weeks. After the period, those supplemented with the probiotics demonstrated an enhancement in "natural and acquired immunity". Germany: Ingredients firm WILD is currently promoting its new Sunwin stevia, a 'top-quality natural stevia sweetener with great taste'. Its reportedly superior taste credentials have been derived through the company's Taste Modification Technology, with the product a result of WILD's significant investments in stevia manufacturer Sunwin International. Ireland: Irish researchers have reported positive results from trials combining fruit juices with extracts of organic plants such as nettle, chamomile and feverfew.The aim of the study is to develop beverages which will benefit skeletal joint health and will possibly be marketed as novel anti-ageing and sports recovery drinks. Portugal: Sumol+Compal has unveiled a spring/summer edition of its Compal Light range of nectars with four variants: Orange Mango, Pineapple Coconut, Strawberry Tropical and Carrot Apple. Packaging for the drinks was designed by four different Portuguese fashion designers, with the juices targeted at active and cosmopolitan women who are also health conscious. UK: Distributor Fayrefield Foods Ltd has been promoting the introduction of the renowned Brazilian guarana soft drink Guaraná Antartica, reportedly the world's top guarana beverage, in the trade press.
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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North America
US: Following the unveiling of a new TV ad for Gatorade's G brand, industry commentators have criticised PepsiCo's decision to rebrand Gatorade as G stating that the move has left consumers confused, helping to accelerate the brand's declining volumes. However, according to Beverage Digest, sales of Gatorade declined by 4% in the first quarter of 2010, signalling a slower rate of decline. Research conducted at Georgetown University has suggested that consumption of soft drinks can double the risk of developing pancreatic cancer. Those individuals who consumed more than two soft drinks a week were reportedly at risk of developing the disease. Hansen Natural has reported a 2.5% drop in net sales to US$238 million, attributable to the pre-ordering by distributors ahead of the implementation of a per-case marketing fee as well as declining sales of its Hitman energy shot at the hands of 5-Hour. Moreover, the company's operating expenses grew as it upgraded staff with key overseas sales and marketing hires. Better Health Beverage has achieved placement of its appetite-suppressing beverage underWay in 1,600 locations across the US in the retail and drug channels. Richard Kayne, CEO, added, "We feel that in our first year, 2010, we will have surpassed 5000 locations in North America covering the food, drug, mass and club store category." Celsius Holdings has posted revenue of US$2.3 million for the first quarter of 2010, an increase of 141% compared to the same period of 2009. However, the company reported a net loss of US$5.9 million for the period as it invested heavily on product promotion and couponing.
World
According to studies conducted in several countries, the increased intake of DHA may increase bone mineral content.The results suggest that DHA may be a vital constituent of bone marrow. 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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