100720_FD_Issue 188

functionaldrinks zenithinternational newsletter This issue at a glance...

Page six New ingredients added to Actimel

Page three Protein drink for active US women

energy drinks

Page seven Czech drink with triple benefits

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Party like a ‘Rockstar’?

No problem!

the addition not only for its benefits, but also for its taste which is said to resemble that of a natural lemonade.

Rockstar energy drink, distributed in the UK since the beginning of 2008, has added another offering to the sevenstrong range.

According to Rockstar's distributor in the UK, AG Barr, the newcomer will be joined by a new 1 litre PET range that will retail for only £1.69 each. AG Barr has said that for the time being, only the Original and Punched - Guava variants will be available in the new PET bottles.

Adrian Troy, AG Barr Head of Marketing, commented on the launch, "Rockstar Recovery 500ml can bring real innovation to the energy drinks market and is a great addition to the existing 5 Rockstar 500ml can packs which deliver a compelling energy drinks range for shopkeepers.

The new Rockstar 1lt PET pack also represents a great opportunity for shopkeepers because we know that the 1lt format is appropriate for a number of reasons providing all day energy, all night energy, a mixer and a share format".

Rockstar Recovery is the name of the latest addition and features an ingredients list which is similar to that of the regular Rockstar energy drink. However, unlike the original, Rockstar Recovery also contains electrolytes to help rehydration - hence the recovery proposition.

Rockstar Recovery was first launched in the US at the beginning of 2010 and has been available in the UK since June.

The energy drink is available in 500ml wide cans and retails for approximately £1.19 apiece.

The launch of an energy drink with recovery claims has created a significant buzz among core energy drink consumers, who have warmly welcomed

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In terms of flavour, the new drink is lemonadeflavoured, sweetened with sucralose, sugar and acesulfame-k so it has a natural sweetness to it and only contains 20 calories in a full can. In addition, it is noncarbonated, further enhancing its hydration abilities and ease of drinkability; in fact, it has been said that this is the first non-carbonated energy drink in the UK.

Page five France gets endless energy

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functionaldrinks zenithinternational newsletter Page 2 Issue 188 20 July 2010

editorial comment Welcome to the 188th issue of functionaldrinks. In recent news, Nestlé HealthCare Nutrition has agreed to settle with the US Federal Trade Commission (FTC) for the charges of false advertisement for its Boost Kid Essentials probiotic drink.

According to the complaint, the ads falsely claim that the product prevents upper respiratory tract infections, such as colds and flu in children, and reduces absences from school due to illness.

In Europe, advertisement rules are also becoming tougher, mainly due to EFSA's health claims regulation. In this issue we look at the solution Danone España adopted to ensure it could continue marketing Actimel as aiding the immune system while it waits for resolution on the health claims process (see Page 6).

Coca-Cola España has recently unveiled its own energy shot purely targeted, at least for the time being, at on-the-go consumption (see below).

Also in the energy category, Red Bull has introduced its very popular large-size can in France, offering better value for money to consumers (see Page 3). Following on the evergrowing popularity of energy drinks, French retailers Cora and Intermarché have each

introduced their own offerings (see Page 5).

Soft drinks producer AG Barr has commenced selling an energy drink, originating from the US, with added electrolytes that promises not only to energise, but to help recover lost electrolytes for a faster recovery (see Page 1). UK-based nutritional and chemical materials specialist Gee Lawson explains the difference between the body's readiness to absorb different compounds (see Page 6).We look at a new powdered drink with anti-ageing ingredients launched by skincare specialist Rodial (see Page 4).

In the Czech Republic, we look at the fruit of the collaboration between local company Sojo and Beneo-Orafti in the form of a probiotic drink (see Page 7).

In the US, we cover the first branded protein drink to have been launched by food ingredient and private label beverage manufacturer California Natural Products (see Page 3).

Meanwhile, we report on the progress made by Rainforest Beverages LLC in preparation for the full launch of its superfruit cola (see Page 5).

Finally, leading Indian edible oil specialist Ruchi Soya Industries has made its foray into the beverages industry with an enriched drink targeted at children and young mothers concerned about nutrition (see Page 4).

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

energy drinks

Spain

New energy shot raises the heat

Burn Shot, the smallest of Coca-Cola España's portfolio at only 50ml, contains a whopping 80mg of caffeine, taurine, vitamins B3, B5, B6 and B12 in addition to sugar and low-calorie sweeteners.

Coca-Cola España has just launched a shot-sized version of its famed energy drink Burn.

Burn Shot was first launched in 2006 in the US, and has since quickly extended its presence to a wide range of countries including France, Belgium, Netherlands, Austria, Poland, Romania, Denmark and Sweden.

In Spain, the launch of Burn Shot builds on the success of the original Burn energy drink, Burn Day - a lower-caffeine energy drink to provide a steady flow of energy throughout the day - and of Burn con Zumo which contains 20% fruit juice launched last year.

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The new drink is positioned as the ideal energy boost for university students, drivers, sports enthusiasts and athletes, which is why the company has opted for initially placing the shots exclusively at petrol stations. However, Coca-Cola España has not ruled out distributing Burn Shot to other retail outlets such as supermarkets in the future.

According to reports, in the US alone sales of Burn Shot have registered growth of 800% by value since its launch four years ago. Meanwhile, the Burn brand is estimated to hold second place in the Spanish market with a value share of 18.2%.

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energy drinks

France

Red Bull portfolio reaches new heights in France Two years after it was first unveiled on the French market, Red Bull has added the increasingly popular supersized 473ml format to its Gallic line up.The latest addition, which is already in circulation in numerous other markets, was showcased in France at the start of May 2010.

The larger format boasts a 10% lower price per litre than its smaller counterparts with a recommended pack price of â‚Ź2.35, offering

consumers better value for money. And despite its supersized volume, the packaging has been designed to replicate the slimline appearance of the original 250ml format, giving continuity to the brand.

This latest addition to the Red Bull range comes hot on the heels of the launch of the energy shot variant, packaged in a 6cl reclosable pack, at the end of 2009. However, according to the company, its success, together with that of rival shot brands Burn and Dark Dog, has been mixed with few supermarket and hypermarket chains stocking the diminutive format, largely due to the fact that these packs are at the greatest risk of being pick-pocketed!

Nevertheless, since its belated arrival to the French arena in May 2008, the global energy drinks leader has secured an impressive stronghold of the market, reportedly holding a 77% share of the 250ml and 355ml format, and the company's share of the market looks set only to grow further given that the new big format variants are spearheading the category's continued growth. www.redbull.fr

nutraceuticals

United States

All-natural energy boost

shaped the natural landscape, California Natural Products is ready to embark on our first national consumer brand."

Food ingredient and private label beverage manufacturer California Natural Products (CNP) has launched its first branded product in the US market, CalNaturale Svelte.

Pat Mitchell, President and Founder of California Natural Products, said, "After years of working behind the scenes developing products that have truly

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CalNaturale Svelte is a sustained energy protein drink, containing organic and all-natural ingredients.

The beverage is formulated to provide energy, protein and 'lasting nutrition' for active consumers and as a dairy- and gluten-free alternative to other energy, protein and meal replacement beverages.

The beverage is packaged in 15.9oz recyclable Tetra Prisma aseptic cartons in four flavours Chocolate, French Vanilla, Cappuccino and Spiced Chai. Each carton contains 16g of organic protein from fresh organic soymilk, along with organic complex carbohydrates such as rice syrup and inulin for sustained energy.The drink is also a good source of fibre, with 8g per carton, and is certified low-glycemic with 9g of organic sugar.

Svelte is available to purchase online at http://sveltebrand.com and from various retail outlets, including Whole Foods Market and other natural food stores. Individual cartons are priced at US$2.69-2.99, or can be purchased in cases of 12 via the online store for US$39.50.

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functionaldrinks zenithinternational newsletter Page 4 Issue 188 20 July 2010

wellness beverages

India

Protein drink ‘N’rich’es diets

using cold fill technology in Tetra Pak cartons.

Ruchi Soya Industries, owner of the well known Nutrela oil brand, has re-launched its range of protein beverages to capitalise on the popularity of the Nutrela brand name.

The drinks were first launched in 2008 under the sub-brand name N'rich; however they were not popular with the Indian market because the flavours chosen originally were considered by consumers as being too exotic.This is why the company decided to re-introduce the beverages in apple-kiwi, applepeach and multifruit flavours.

N'rich is described by the company as being a 'tasty protein drink' that is rich in vitamins, minerals and antioxidants.

Furthermore, N'rich is preservative-free as it is packaged

According to the company, the beverages are targeted at young, health-conscious mothers looking for nutritious drinks for their children. In order to reach this group, Ruchi Soya will conduct extensive sampling activities including modern retail outlets. On top of this, radio promotions and activities featuring the brand's mascot Popeye will commence shortly.

N'rich is currently only available in the cities of Pune and Mumbai, but the company expects to widen distribution to the country's top 20 cities shortly.

Ruchi Soya's Head of Food Division, Sarvesh Shahra, commented that the drinks offer a lucrative opportunity for the company as margins are expected to be in the range of 25% to 40%.

Shahra also mentioned that in the first year of sales since the re-launch, the company expects to gain 5% market share of the category.

N'rich is available in 200ml cartons retailing for Rupees 15 and 1 litre cartons for Rupees 75 apiece. www.ruchisoya.com

cosmeceuticals

United Kingdom

Drink yourself glamorous Rodial, a face and body skincare company, has launched a powdered drink that promises to help slow down the ageing process.

The new sticks have been launched under the Glamtox range of collagen-rich antiageing products. According to the company, Glamtox Sticks help reduce face lines by up to 30% in six weeks thanks to active ingredients Rousselot's peptan hydrolyzed collagen which increases firmness and elasticity, and pomegranate extract which helps promote skin regeneration.

the sticks are already a hit among stars such as Sienna Miller,Victoria Beckham and Kate Bosworth. Furthermore, it has been speculated that around 35,000 people have already ordered the product.

Maria Hatzistefanis, founder of Rodial, commented on the launch, "We pride ourselves on being at the forefront of science and beauty and, after a year's worth of research and development, we believe we have devised the most advanced and simplistic way of combating the signs of ageing from the inside out."

To obtain the desired results, consumers need to drink two sticks daily dissolved in 200ml of water. Glamtox Sticks can be purchased through the company's website as well as other select skincare stockists and retail for £49.99 for a pack of 14 sticks.

According to media reports,

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functionaldrinks zenithinternational newsletter Page 5 Issue 188 20 July 2010

wellness beverages/soft drinks

New cola with a healthy difference Having completed a test market phase in over 100 outlets during spring 2010, Rainforest Beverages LLC is preparing for the full launch of its superfruit cola in convenience and supermarket stores from mid-August.

United States Featuring natural herbs from the Brazilian Amazon rainforest, all-natural stevia sweetener, 10g of açaí berries, omega-3, -6, and -9 fatty acids, protein, vitamins and minerals, fibre, ginseng, guarana and muira puama, the cola elixir has been well received amongst consumers for its unique taste. Given its close resemblance to cola in terms of both mouthfeel and taste, consumers reportedly find it hard to believe that the product contains just 35 calories.

In addition to its low calorific content, the botanical-cola hybrid drink, designed to be an entirely healthy alternative to soft drinks available in the market, is free from sugar as well as artificial sweeteners, flavourings and preservatives.

Circulated by an existing brewery industry distributor with a proven non-alcoholic division, the availability of Rainforest Cola has to date been supported by point of sale (POS) banners and cooler window stickers.

POS materials will also be used for the official launch, with the support of a leading social media company in Boston also enlisted to spread the word via various online platforms.

Based on the success achieved during its test phase, Rainforest Beverages is currently in the formulating process for additional variants and is keen to expand the beverage to other outlets/markets in the near future. www.rfbeverages.com

energy drinks

France

Energy own brand offerings jostle onto French market France's increasingly crowded energy drinks sector has seen the recent addition of two new own brand offerings from retailers Cora and Intermarché.

Cora has dubbed its own brand energy formula For-X. The product is packaged for the retailer by drinks specialist Karlsbräu and is available in two slimline formats, 25cl and 50cl, with colours reminiscent of market leader Red Bull's eponymous drink.

packs are priced at €0.85 and €1.45 respectively.

For its part, Intermarché has unveiled a new energy own brand called 'I have no limit'.

Produced for the retailer by Refresco from its base in the Netherlands, the new addition is packaged in a 25cl slimline pack, competitively retailing at €0.53 per unit. The can features eyecatching graphics with the slogan prominently placed in jaunty lettering. As in Cora's For-X offering, the product's formulation features vitamins B3, B5, B6, B12 and additionally vitamin B2; and the customary 32mg/100ml of caffeine.

Both products also contain the ingredient taurine, the presence of which had essentially blocked the development of the energy drink market within France until it was finally approved by French authorities in May 2008.

For-X contains the standard caffeine content for energy drinks, namely 32mg/100ml, in addition to vitamins B3, B5, B6 and B12. The 25cl and 50cl

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functionaldrinks zenithinternational newsletter Page 6 Issue 188 20 July 2010

functional dairy

Spain

Immunity drink gets reformulated Following Groupe Danone’s decision to withdraw the claims for its Actimel and Activia brands from the nutrition and health claims process for the second time, Danone España has reformulated its star probiotic drink so it is in compliance with new regulations.

The French company decided to withdraw its applications because it is waiting for procedural guidance from the claims assessment agency, the European Food Safety Authority

(EFSA).The claims it had submitted were "helps to strengthen the body's natural defences" for Actimel and "improves slow transit and digestive comfort" for Activia.

As Danone waits to resubmit its claims to EFSA, Danone España added vitamins B6 and E to Actimel; allowing it to continue marketing Actimel as helping maintain a healthy immune system as vitamin B6 has been demonstrated to provide this benefit.This is a smart move as the claims associated with Actimel can remain unchanged without involving the product's probiotic content.

Some industry insiders have praised Danone España for its decision, given that category leader Actimel generates annual revenues of €300 million.

At the same time, Danone España has recently added Gran Danone to its portfolio.The addition is a spoonable yogurt in a larger than usual 400g pot that is currently available in plain sweetened and strawberry flavours. Gran Danone contains less than 2% fat. www.actimel.es

ingredients

United Kingdom

Approaching the body with benefits it recognises Quality nutritional and chemical materials specialist Gee Lawson shines at the Geneva-hosted Vitafoods event in May through its partner Global Calcium.

Providing ingredients as well as finished products, Gee Lawson prides itself on developing both profitable and ethical business relationships with its customers and suppliers in accordance with industry regulations and, combined with Global Calcium, boasts over 30 years experience.

With its product portfolio covering a whole spectrum of offerings from amino acids, enzymes and herbal extracts, to minerals, oils, probiotics and vitamins, the superior bioavailability credentials of its calcium as well as other compounds were promoted through the Vitafoods forum.

Currently focusing its activity on developing special tailor-made premixes with premium

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quality for enriching food, nutraceutical and pharmaceutical products, the firm is able to meet requirements for various applications, be it fruit juice, energy drinks, dairy drinks or dry powder formats in the beverages sector, or cereals, baby foods, bakery products and pasta, staple foods or confectionery.The production of these premixes is said to demand comprehensive knowledge of food chemistry, pharmaceutics, food technology and applications.

In highlighting the quality of its ingredients, Gee Lawson explains the significant difference in the body's readiness to absorb inorganic compounds (those that it does not recognise as useful) and organic compounds (those that it deems useful), with the latter having far higher bioavailability.

Inorganic compounds such as oxides, carbonates and phosphates are less easily absorbed - at a rate of 1-3% for calcium carbonate - whilst organic compounds such as citrates, malates and amino acid chelates (for example bisglycinates, lysinates and taurinates) are more quickly accepted into the bloodstream - at a rate of 3040% for calcium citrate.

Thanks to its technological facilities, Gee Lawson is able to have complete traceability of all materials, with all products supplied with a Certificate of Analysis, GMO,Allergen and non-irradiated status. www.geelawson.co.uk

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wellness beverages

Czech Republic

Fibre-rich soy drink debuts in Czech Republic Czech-based company Sojo has launched an eponymous prebiotic soy drink, available in pineapple and strawberry flavours.

The Sojo company was founded in 2009 by THE FERBEV project which aimed to drive innovation in fermented beverages in Eastern Europe.

Soy is rich in proteins and contains essential amino acids, and regular consumption can help prevent cardiovascular

disease and lower cholesterol.The Sojo beverage also contains omega-3 fatty acids - 60mg per 100g, and probiotic cultures - 1g contains at least one million live probiotic bacteria.

The drink is one of the latest products to bear the BENEO label as it contains the fibres inulin and oligofructose from Beneo-Orafti, part of the BENEO-Group which is a division of the S端dzucker Group specialising in functional ingredients.The company extracts inulin from the chicory root and then derives the oligofructose from the inulin.The fibres are said to help maintain a healthy digestive system by stimulation of good bacteria (bifidobacteria), increased calcium absorption and optimal intestinal function. Each 100g of Sojo contains 1.4g of dietary fibre.

BENEO-Orafti's BENEO label is now found on more than 380 products in 33 countries.The BENEO Label Program is designed to communicate the health benefits of Orafti inulin and oligofructose through the use of an easy-tounderstand quality label.The company has recently boosted awareness of the label by creating its own Facebook page to educate consumers. www.sojo.cz

functionaldrinks in brief

Europe

Portugal: Unilever-owned Lipton has launched a 20 day-long campaign during which consumers who register on the brand's website will receive two daily tips on fitness and wellbeing to help women feel good about themselves. In addition, by registering the products purchased, consumers will be awarded points and receive vouchers for massage sessions, beauty treatments and consultations on nutrition.

UK: Provexis has entered into a long-term research and development collaboration deal with the Institute of Food Research and Plant Bioscience Limited. As part of the agreement, Provexis has been granted exclusive access to a portfolio of potentially high-value intellectual property related to the treatment and reduction of systemic inflammation, from which it intends to develop commercial products. Stephen Moon, CEO of Provexis commented, "The collaboration with IFR is a further step in the continued expansion of Provexis and its product pipeline.

This new venture further strengthens our pipeline and is an important element in creating long-term shareholder value."

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Solution Sciences Ltd, producer of Alibi pretox drink, was present at the recently held Glastonbury and Isle of Wight music festivals giving free samples of the drink to attendees as well as performers. According to the company, it handed out 5,500 cans of Alibi.

North America

Canada: According to a study conducted at McGill University in Montreal,Teawell, an ingredient produced by A. Holliday & Company may delay or prevent Alzheimer's disease and dementia. In the study, rats that ate Teawell 50 extract had an 18% reduction In free radicals, which accelerate the loss of neurons in a key region of the brain involved with memory and learning.

Health Canada has dismissed reports that it had approved the sale of pre-mixed alcoholic energy drinks.The confusion arose after the body authorised the sale of energy drinks through liquor stores.

US: According to retail data, the leading brand in the coffee energy drink segment is Java Monster

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functionaldrinks zenithinternational newsletter Page 8 Issue 188 20 July 2010

functionaldrinks in brief from Hansen. Moreover, with the exception of Starbucks' Doubleshot coffee energy line, the category growth in 2009 was limited.

across ten states in the Northeast US.ViB will be available at grocery and convenience chain retailers.

IRI figures have revealed that Dannon holds a majority share of the probiotic yogurt market in the US. In 2009, sales of Activia jumped 16% to US$383 million for the year.This contrasts sharply with General Mills' YoPlus brand, whose sales for the period dropped 16% to less than US$44 million, giving it a 1% share of the market against Dannon’s 10.5% share.

Bond Laboratories has publicised that its Fusion Premium Beverages (FPB) division has entered into an agreement with Zink Distributing Company to market FPB's Resurrection Hangover Prevention Drink. Zink distributes to the highpopulation counties in the Central Indiana market and provides access to approximately 1,600 businesses.

Coca-Cola Enterprises (CCE) has said that it is seeing a rebound in the US soft drinks market, despite a fall in sales volume in the country during the first quarter of 2010. Steve Cahillane, President and CEO for Coca-Cola Refreshments added, "Vitaminwater is exceeding our expectations from a consumer standpoint perspective and helping us drive our overall still business."

Eric Schnell, co-founder of Healthy Beverage Company and creator of the Steaz brand has left the company. Schnell's departure comes amidst ownership and management changes at Steaz, including majority ownership shifting to Swiss investment company Inventages. Schnell continues to hold a significant stake in the company.

Ingredient supplier BI Nutraceuticals (BI) has added maqui, an antioxidant-rich, dark-purple berry native to Chile, to its portfolio of ingredients. Recent research suggests the antioxidant compounds in maqui have antiinflammatory and cardioprotective properties.

Maqui joins elderberry, rosemary, mangosteen and yerba mate as the newest ingredients in BI's range.

Scientists from Louisiana State University have claimed that children and teenagers who regularly drink pure juice have higher intakes of key nutrients compared with those who chose other drinks. By contrast, a higher percentage of nonjuice drinkers failed to meet the recommended levels for key nutrients including vitamin A and folate.

Vacation in a Bottle (ViB) has signed an agreement with GTG Beverages for the distribution of its eponymous relaxation drink

functionaldrinks zenithinternational newsletter

Editor: Anya Hembrough 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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PureCircle, producer and marketer of steviabased sweeteners, and Michigan State University have signed an agreement covering research and breeding of the stevia plant.The goal is to accelerate the creation of proprietary varieties of stevia that contain dramatically higher levels of sweetness in the leaf as well as other improved agricultural properties.

Stefan Kozak, head of the Latin American and Canadian operations of Red Bull, has been appointed CEO of Red Bull North America following the departure of Selim Chidiac.The appointment was made effective 1 July 2010.

World

Recently released data suggests that contrary to the slowdown in sales of energy drinks seen in the US, in other regions growth continues unabated.The two most promising regions are Western Europe and Asia, forecast to grow by 10% and 8.3% respectively in 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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