100811_FD_Issue 190

functionaldrinks zenithinternational newsletter This issue at a glance...

Page five Celestial packaging for horeca

Page two Malaysians add fibre to their diet

Page five Sporty Mexicans get juicy drink

Pages six and seven Review of drinks for children

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Issue 190

11 August 2010

nutraceuticals

France

Out with the toxins and hangovers Luxembourg-based Outox has recently introduced its eponymous hangover-busting drink to the French market amidst controversy.

When Outox was unveiled at the beginning of June 2010, its launch attracted criticism due to the fact that the drink was promoted as helping significantly reduce the amount of blood alcohol approximately one hour after having consumed the drink.The claims were disputed by some who felt the drink would encourage consumers, especially teenagers, to increase their intake of alcohol, whilst others doubted the drink could accelerate the rate at which the body metabolises alcohol.

beverage helps accelerate the decrease in blood alcohol and helps prevent "difficult mornings". In addition, Outox has been obliged to include warnings on the packaging that state that the effects of Outox depend upon the person's age, weight and amount of alcohol consumed as well as urging consumers to drink responsibly.

In France, this is not the first drink to have been launched that promises to help deal with the effects of drinking alcoholic drinks. In 2006, Security Feel Better (see functionaldrinks issue 71) was asked to stop advertising its publicity campaign as the claims were thought to be exaggerated and could not be substantiated.

In the UK, Solution Sciences Ltd also stirred up public opinion with the launch of Alibi Pretox (see functionaldrinks issue 152). Alibi is a drink that is intended for consumption prior to consuming alcohol as it 'prepares' the body for a night out. Criticism following the launch led the company to adapt its marketing and focus on the drink's ability to help prepare the body for our hectic lifestyles.

This led the Directorate General for Competition, Consumption and the Repression of Fraud (DGCCRF), to ask Outox to amend the claims made on its packaging. In its defence, Outox submitted a scientific dossier to the European Food Safety Authority (EFSA) which demonstrated that the drink, composed of fructose and ascorbic acid, stimulates the liver to produce the enzymes responsible for metabolising alcohol.

Outox is lightly sparkling and available in Tutti-Frutti flavour.The drink is sold through the company's website and available for â‚Ź21.58 for four cans, â‚Ź87.78 for a box of 24 cans or â‚Ź3.99 apiece not including postage.

Nevertheless, Outox may now only claim that the

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functionaldrinks zenithinternational newsletter Page 2 Issue 190 11 August 2010

editorial comment Welcome to the 190th issue of functionaldrinks. In this issue, our contributor Laura Knight explores the market of functional drinks for children and the offerings available in different countries (see Pages 6 and 7).

On the other side of the spectrum, we cover the tumultuous launch in France of an antihangover drink by Luxembourg-based company Outox (see Page 1). Also in France and in neighbouring Germany we follow the expansion of the Monster energy drink brand (see Page 3).

Still in Germany we look at the latest developments of Angel Drink GmbH in the form of a new and exclusive glass bottle design for the horeca channel (see Page 5).

market. We look at leading men's magazine Loaded which has introduced a shot with libidoenhancing properties (see Page 3). We also cover the launch by Britannia Beverages of a lemonade infused with energising ingredients (see Page 4).

Over in Mexico, Coca-Cola de México has launched seemingly a first in the sports drinks arena with a juice-based offering (see Page 5). In Malaysia, leading bottled water company Spritzer has made its entry to the functional drinks arena with a fibre-added water for those looking for more benefits from their preferred brand of bottled water (see below).

Finally, we cover the expansion of XL Energy drink which has just been introduced to Italy and is expected to gain a significant share of the market if its performance in neighbouring markets is anything to go by (see Page 4).

Energy drinks continue to grow at a relentless pace in the UK, testament to this is the continuous stream of new entrants to the

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

near waters

Malaysia

Add a spritz of passion and fibre to your diet

diet is actually absorbed by the body, whilst the remainder is excreted and, according to Arthritis Foundation Malaysia, it is estimated that over one million people in Malaysia are at risk from osteoporosis, of which 20% are men.

This fact, together with the company's reputation for quality, has led Malaysia's Ministry of Health (MOH) to endorse Spritzer + Fibre.

Malaysian bottled water producer Spritzer has added a fibre-enriched water to its existing portfolio.

The company has positioned the drink as suitable for all consumers interested in leading a healthy lifestyle or simply for those wishing to rehydrate and refresh. Moreover, Spritzer + Fibre can be drunk throughout the day, at work or during leisure time.

Launched under the Spritzer brand of still and sparkling waters, Spritzer + Fibre contains a unique mixture of inulin and oligofructose which is a soluble dietary fibre with prebiotic properties. Numerous clinical human studies have demonstrated that this combination of inulin and oligofructose not only helps increase intake of dietary fibre but also has a probiotic effect and helps increase bone density and calcium absorption.

Spritzer + Fibre is passion fruit flavoured and is available in 350ml bottles. The drink can be purchased online through the company's website where a box of 18 bottles retails for Ringgit 48.90.

It is well known that only one third of the calcium consumed through

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functionaldrinks zenithinternational newsletter Page 3 Issue 190 11 August 2010

energy drinks

France/Germany

Energy drink widens its reach in Europe Coca-Cola Enterprises (CCE) has been capitalising on the growing success of Monster energy drink across Europe.

(RDA) of vitamins B2, B3, B6 and B12 as well as 40% RDA and 20% RDA of vitamins A and C respectively. It also contains taurine, panax ginseng and an 'energy blend' composed of glucose, caffeine, guarana, L-carnitine, glucoronolactone, inositol and maltodextrin.

Khaos is available through most large retailers as well as onpremise and it retails for approximately â‚Ź1.79 apiece.

Meanwhile, Trend Beverages Vertriebs GmbH has commenced distributing Monster Energy in Germany.

In France, Monster was first introduced in March 2009 in Original, Ripper and Lo Carb variants. Having quickly gained an 11% share of the energy drinks market, CCE has recently added Monster Khaos.

The company will be making the most of Monster's sponsorship of the Mercedes GP Petronas Formula 1 team. As part of the sponsorship deal, the Monster logo appears on the helmets, race suits and water bottles of drivers Nico Rosberg and Michael Schumacher.

Khaos is made with a combination of fruit juices, amounting to 50% of the total, which give it a pleasant peach-citrus flavour with minimal aftertaste. Sweetened with Splenda and acesulfame-K, it is also relatively low in calories at 90 calories per serving or 180 calories per can.

Initially, Monster will be available in the German market in Original and Ripper variants.

Khaos, as with the rest of the lineup, contains 100% of the recommended daily allowance

http://europe.monsterenergy.com

energy drinks

United Kingdom

Loading the UK shots market Leading publisher IPC, the force behind men's magazine Loaded, has joined forces with nutraceuticals company Podium Brands to launch a stamina shot with alleged libido-enhancing properties.

Designed to help the consumer 'lift their game', the new Loaded Stamina Shot has the same energy-boosting effects as a regular-sized energy drink but is presented in the increasingly popular 60ml shot format.

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As reported on FoodBev.com, the multi-functional product contains amino acids, herbal extracts, vitamins and stimulants from natural dietary sources that are blended for a powerful effect.

With a balanced energy formula, the shot is free of sugar and claims to provide hours of energy 'without the jitters'.

Featuring the popular Loaded cover girl, India Reynolds, who will also be promoting the brand at events across the UK, it is hoped that the bottle will stand out on the shelf.

To be priced at ÂŁ1.99, the new launch will be supported by a multi-million pound advertising effort from November, including advertising in relevant IPC publications, direct promotion to Loaded's reader database, in addition to a range of other media activities.

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functionaldrinks zenithinternational newsletter Page 4 Issue 190 11 August 2010

energy drinks

Italy

X-Large dose of energy for Italians

countries such as Germany, Israel and France where, according to XL Energy, the drink also holds double-digit market shares.

XL Energy Drink, in conjunction with import-export specialist Chi.Fra, has introduced XL Energy drink into the Italian market.

XL Energy Drink was first launched in 2000 in its native Poland, where it quickly achieved double-digit market share. As its popularity spread outside Poland, so too did distribution of the drink to

Chi.Fra, a company with years of experience importing and exporting products from Poland, is the official distributor of the energy drink in its three variants: Classic, Sugarfree and Cranberry, available in three formats, classic 250ml slim can and in 500ml and 1 litre PET bottles.

XL Energy drink is targeted at students and young, active adults that are in constant need of high levels of energy and performance but are looking for a tasty alternative to help them achieve their goals.

To promote the drink, Chi.Fra is making extensive use of social networking sites such as facebook in addition to supporting retailers with point of sale (POS) material such as bar coolers, branded T-shirts and hats, posters, banners and displays.

XL Energy drink is available through select retailers and on-trade outlets such as bars and nightclubs.

www.chifra-energydrink.com

energy drinks

United Kingdom

Combining Italiantaste with energy Britannia Beverages has recently launched an energy drink that boasts great taste and equally impressive energising effects.

The drink has been named Mad Dog Energy Lemonade and, made using organic Sicilian lemons, is said to taste like classic lemonade.

This is achieved by using a unique extraction process which allows for the inclusion of energy-giving ingredients without aftertastes or interferences.

A 250ml slim can of Mad Dog Energy Lemonade contains 80mg of caffeine, 1,000mg of taurine as well as

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vitamins B3, B6 and B12.

The drink is already distributed in Central London with a mixed above and below the line advertising campaign that includes among others using yellow-wrapped Beetle cars with giant cans attached to them that will circulate around the city. Advertising is scheduled to run throughout summer 2010.

Brand Manager, Max Levachin, said, "The launch is a very exciting and new development for the UK market and follows on from similar successful products in the US such as AMP Lightning and Guru Energy Lemonade drinks. So far the customer reception has been very warm and we look forward to the rest of 2010 with this drink."

Mad Dog Energy Lemonade can already be bought through the company's website. A 24count box retails for ÂŁ14.49 or ÂŁ0.60 apiece.

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functionaldrinks zenithinternational newsletter Page 5 Issue 190 11 August 2010

packaging/energy drinks

Germany

New class in glass

Upon its initial unveiling, the angelic offering was positioned as the first organic energising beverage of its kind to be based on fruit juice. Featuring pomegranate and blackcurrant juice, the drink has until now only been available in a foil pouch with a resealable cap closure.

A leading glass packaging supplier, OI, has produced a new bottle design exclusively for the organic energy drink, Angel Natural Energy BIO, to the horeca channel.

The new glass bottle, a 250ml opaque white offering, will be available exclusively through horeca outlets in the Berlin area. www.angel-drink.com

sports drinks

Mexico

Juicing up the sports category

namely vitamins B3, B6 and B12, maltodextrin, electrolytes and no preservatives.

Shortly after launching the redesigned Powerade for the 2010 World Cup, Coca-Cola de MĂŠxico has added two variants to the line-up that are reportedly a first in the country.

POWERade Citric' Reaction is, according to CocaCola de MĂŠxico, the first isotonic drink in the country that contains fruit juice, either lime or orange juice, in addition to the ingredients present in the original formulation,

The drink is positioned as a hydrating drink for all sports enthusiasts who need more energy to continue with their daily activities wherever and whenever they may be. POWERade Citric' Reaction is also targeted at those consumers needing to hydrate efficiently and who need sustained energy.

Georgina Cabral, Brand Manager, stated that the new drink was scientifically designed to better aid sports enthusiasts and athletes alike to continue enjoying exercising.

Globally, POWERade was appointed the official drink for the 2010 World Cup and is now the official drink of five of the largest football clubs in Mexico. In addition to this, the company will accompany the launch of POWERade Citric' Reaction with an advertising campaign spanning TV, radio, print, public relations, below the line (BTL) activities as well as national sampling activities that will see millions of bottles given away for trial.

POWERade Citric' Reaction is available in 500ml and 600ml PET bottles with sport guard cap and in 1 litre PET bottles.

The drinks are available through most supermarkets and convenience stores across the country.

www.powerade.com.mx

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functionaldrinks zenithinternational newsletter Page 6 Issue 190 11 August 2010

functional drinks

World

Functional drinks for children functionaldrinks' Laura Knight provides a round-up of the latest developments on the segment of functional beverages designed for children.

As the market for functional beverages continues to grow, manufacturers are beginning to explore ways of differentiating themselves in a more and more crowded market. One way they have achieved this is by targeting specific consumer groups or particular niches and their related health concerns.

Child-friendly functional drinks are a growing area within the global functional drinks market, particularly in the US where obesity levels amongst children are worryingly high and where healthy soft drink alternatives and vitamin- and probiotic-enhanced beverages are increasingly commonplace.

As parents become increasingly concerned over their children's health and governments seek to encourage consumers to move away from traditional sugar-laden beverages with national health campaigns, the market for functional drinks targeted at children has expanded.

Worried parents are also seeking a more natural way of treating health issues by purchasing functional foods and beverages, rather than opting solely for medicines.

The market has seen a wide range of young consumers' functional drinks emerge, including beverages designed to target cognitive performance, digestive health, bone health, immunity, obesity, energy, relaxation and general wellbeing. Functionality has been added to the full spectrum of beverage applications, including water, juice and milk, thanks in part to the precedents set by some of the industry's leading players across the categories, which have helped to identify opportunities for the wider industry.

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As with all functional beverages, but possibly even more so with children's functional drinks, manufacturers need to be aware of making unsubstantiated claims regarding their drinks.

Regulators, such as the Advertising Standards Authority (ASA) in the UK, have recently cracked down on the use of potentially misleading health claims in advertising, such as those relating to children’s immune systems.

Manufacturers also need to carefully vet any ingredients that are included in functional beverages marketed at children. Caffeine levels in beverages tend to be of particular concern, with government health bodies such as Health Canada issuing recommendations on maximum daily caffeine intake for children. In Europe, the British Soft Drinks Association (BSDA) has published a code of practice on energy drink marketing which states that energy drinks containing more than 150mg of caffeine per litre may not be promoted or marketed to children under the age of 16.

In the ever-growing functional drinks market, the demand for beverages formulated specifically to meet the needs to children is likely to continue to grow in the future as manufacturers expand their existing beverage ranges to include a variant for young consumers, and with new companies entering the market to capitalise on the untapped potential for childrenoriented products in the current market.

Below is a selection of the latest innovative functional beverages for this age group: Category: Nutraceuticals Country: USA Manufacturer: Neuro Brands Brand: Neuro Junior The Neuro Junior range of six functional beverages includes: Neuro Sport Junior (contains calcium, magnesium, chloride, sodium and potassium), Neuro Sonic Junior (contains omega3 fatty acids for mental performance), Neuro Trim Junior (contains a form of konjac fibre to promote weight loss), Neuro Sleep Junior (contains chamomile to promote relaxation and (continued on Page 7)

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functionaldrinks zenithinternational newsletter Page 7 Issue 190 11 August 2010

functional drinks

World

(continued from Page 6) lemon balm to promote sleep quality), Neuro Fun Junior (contains omega-3 fatty acids for optimal cognitive function and calcium for strong bones), Neuro Bliss Junior (contains l-theanine, an amino acid from green tea to promote relaxation and increase focus and concentration).

Category: Wellness beverages Country: USA Manufacturer: KIDStrong Enterprises Brand: KIDStrong KIDStrong was created by Dr George Murphy, a molecular scientist at Harvard Medical School, who wanted to provide children with a nutritious natural hydration beverage in a bid to combat the growing epidemic of childhood obesity.The drinks include a blend of low glycemic index carbohydrates, 22 vitamins and minerals, and electrolytes to promote energy and prevent fatigue.

Category: Functional dairy Country: India Manufacturer: Britannia Industries Brand: Actimind

Brand: Organic B.R.A.T.Wellness Drinks B.R.A.T. Diet has introduced a line of rice milk organic beverages based on the B.R.A.T (bananas, rice, applesauce, toast) diet which is said to be helpful for those with sensitive stomachs, gastrointestinal issues or during illness such as the flu.The drinks also contain electrolytes to boost rehydration, and are fortified with vitamins and calcium.

Category: Enriched beverages Country: USA Manufacturer: NextFoods Brand: GoodBelly Kids Organic Probiotic Fruit Drink

Actimind is an enriched milkbased drink from India's Britannia Industries which contains a range of nutrients to support young consumers' development, including B vitamins, choline to enhance memory, and iodine to support cognitive function.

Category: Enriched beverages Country: Germany Manufacturer: Bad Brambacher Brand: Vita-Mineral Kids Earlier this year, German mineral water company Bad Brambacher expanded its Vita range of vitamin- and mineral-enriched drinks to include Vita-Mineral Kids.The drink has 5% fruit content and has been specifically formulated with glucose, magnesium and six vitamins to meet the nutritional requirements of its young target consumer group.

GoodBelly Kids Organic from NextFoods is a fruit drink containing the live probiotic cultures Lactobacillus plantarum299v (Lp299v) and Bifodobacterium lactis (Bi-07) to strengthen core digestive health and boost the immune system.

The drink also contains vitamins A, B6, C, E and selenium, plus calcium and vitamin D to promote strong bones and teeth.

www.neurobrands.com www.kidstrong.com www.britannia.co.in www.brambacher.de www.bratdiet.org www.goodbelly.com

Category: Wellness beverages Country: USA Manufacturer: B.R.A.T. Diet LLC

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functionaldrinks zenithinternational newsletter Page 8 Issue 190 11 August 2010

functionaldrinks in brief

Europe

The European Food Safety Authority (EFSA) has defended its methods and opinion with regards to the rejection of Groupe Danone's probiotic infant nutrition claim back in December 2009.

Denmark: Results of a study conducted at Aarhus University suggest that the perceived fit between carrier product and ingredient is a strong predictor of the success of functional food or drinks. For example, consumers are more likely to purchase omega-3 rich tuna salad as opposed to other omega-3 rich foods that do not already contain the ingredient. Also, carrier products that have been deemed to be healthy in their own right by experts are seen to have a better fit with functional ingredients.

Switzerland: Researchers from the Allergy Group department in the Nestlé Research Centre have found that polyphenols derived from apples may reduce or prevent an allergic response to food allergens in rats.The scientists pointed out that further studies are required to determine whether the polyphenols have the same effects in humans.

UK: GlaxoSmithKline (GSK) has launched an application for mobile phones under its Lucozade Sport brand that offers consumers personalised training and nutritional advice.The application, FitCoach, works alongside Lucozade's online training tool and allows for synchronisation between the two.

In other company news, it has emerged that GSK is in advanced talks to launch the Lucozade brand in the US as part of the company's increased commitment to developing its Consumer Health division.

North America

SOL Elixirs has secured a distribution agreement with The Vitamin Shoppe for the sale of its Solixir line of botanical beverages across all stores as well as online through www.vitaminshoppe.com.

Ganeden Biotech has announced a new partnership with Glanbia Nutritionals for the commercialisation of the patented probiotic strain GanedenBC30. Andrew Lefkowitz, President and CEO of Ganeden Biotech, commented, "Partnering with an industry leader such as Glanbia Nutritionals will enable us to broaden the applications of GanedenBC30 into more functional foods, beverages, and engineered nutraceutical applications."

Skinny Nutritional has announced its range of beverages will be sold through all 199 Lucky and Save Mart stores across California and primarily the San Francisco area.

It has emerged that Vita Coco had already signed a sponsorship deal with John Isner, the winner of Wimbledon's longest tennis match, before the tournament started. Following from Isner's win, Michael Kirban, CEO of Vita Coco, revealed that the company intends to fully utilise its association with Isner and his performance throughout the eleven hour-long match.

Red Bull has announced that its Art of Can exhibition will be held in Dallas,Texas, from 31 July to 22 August.The exhibition is open to all and the primary item to be used is the Red Bull can.

functionaldrinks

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Editor: Anya Hembrough Deputy Editor: Cecilia Martínez Núñez Contributors: Jenny Foulds 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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Yakult USA has announced plans to build a factory in City of Fountain Valley, California.

Operations are expected to commence in 2012 with capacity to produce 250,000 bottles per day.

The factory will serve the current sales territories which span California, Nevada, Arizona, Texas, Colorado and New Mexico.

US: EQ Labs, producer of Smart Energy Drink, has reported a spike in sales for the first quarter of 2010 as distribution has been widened to Las Vegas, New York, California and Florida. Smart

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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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