100824_FD_Issue 191

functionaldrinks zenithinternational newsletter This issue at a glance...

Page five Madness revamp in France

nutraceuticals

Page seven Light addition to fierce portfolio

Page six Japan’s one-two punch on ageing

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Drink to 'let go' of stress functionaldrinks spoke to Amyn Jiwani, President of Ambrosia Beverage Group, to find out about the company's recent relaxation drink launch.

from just two stores to 80 stores in less than two months. He added, "We will be selling online shortly via thirstmonger.com and shop.ambrorelax.com and we are currently expanding to more regions of Texas and selected parts of California."

With regards to the beverage's target market, Jiwani explained that this was initially young adults from 18 to 25 years of age, but has now broadened due to demand from other segments. He said, "Women of all ages especially the 20 to 40 year old demographic are expressing a liking for our product, and truly anyone that needs a time to relax enjoys Ambro RELAX. We are seeing the expected demand from males between 18 and 25 years old, but there are also a lot of requests coming from males between 35 and 55 years old."

The drink also provides 100% of the daily values (DV) of vitamins B6 and B12 as well as a small dose of melatonin (2.5mg). The combination of ingredients is intended to provide an ideal setting for relaxation.

Unlike other relaxation and energy drinks, Ambro RELAX contains no high fructose corn syrup and is low in both calorie content and sugar, containing only 40 calories and 10g of sugar.

Among the company's promotional plans was the recent National Relaxation Day on 15 August whereby Ambro RELAX gifts were given to spas and hotels in Dallas and Fort Worth Metroplex. In addition, Ambrosia Beverages constantly organises giveaways for its Facebook and Twitter followers.

At the same time, the company is holding numerous promotional events through its preferred retailers in the Dallas/Fort Worth area. In terms of online activity, (continued on Page 2)

Jiwani revealed that the drink's distribution has expanded quickly, growing

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Introduced in July 2010, Ambro RELAX is the fruit of sixteen months' research and development, and is a lightly sparkling offering containing a herbal extract blend derived from passionflower, valerian root and chamomile.

Page five Water relaunch in Germany

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functionaldrinks zenithinternational newsletter Page 2 Issue 191 24 August 2010

editorial comment Welcome to the 191st issue of functionaldrinks. As we have interestingly started to observe over recent months, functional beverage launches in India, most notably energy or sports drinks, are gaining momentum.

In this issue we home in two Indian developments, one the re-launch of a milk-based sports drink by Indian dairy company Gujarat Cooperative Milk Marketing Federation (see Page 6), and the other the unveiling of a premium enriched drinks line by Danone Narang Beverages, which has been quick to gain a following (see Page 4).

Further afield, we brings news of one of the latest drinks on the Japanese market in the form of a vitamin- and collagen-enriched drink for women, developed by House Wellness Foods (see Page 6). In Thailand, leading beer producer Singha Corporation is planning on extending the reach of its lifestyle drink as part of a desire to increase the offering's contribution to overall revenue (see Page 7).

In Germany, we look at Nestlé Waters Deutschland's decision to re-market its highly mineralised water Contrex in line with its positioning in its French home market (see Page 5). Also in Germany, we review Mineralbrunnen Überkingen-Teinach's

launch of a functional beverage trio that is viewed as a new trend in the country (see Page 4).

Nearby in France, Société MBM is in the process of revamping its popular energy drink to ensure it maintains its pole position in the country (see Page 5).

In the US, Roaring Lion Energy Drink has added a sugar-free variant (see Page 7) whilst Liquid Lightning Energy's eponymous energy drink has recently been re-designed and is enjoying a brand new marketing campaign (see Page 3).

We also look at a new line of vitamin- and nutrient-rich shots by NVE Pharmaceuticals, which already produces energy drinks and shots, but this time with a different proposition (see Page 3), as well as talking to Ambrosia Beverage Group about its newly-launched relaxation drink (see Pages 1 and 2).

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

nutraceuticals

United States

(continued from Page 1) Jiwani revealed that the drink is to feature in the second season of a comedic web series entitled "Workshop" as part of its viral marketing campaign.

When asked about any future extensions, Jiwani commented, "While we are currently releasing one flavour of our relaxation supplement drink, we have multiple flavours in the pipeline that have tested strongly." The current Ambro RELAX variant is strawberry-mango flavoured.

Available through a range of select retailers in different parts of Texas and California, customers can find their nearest store by visiting the Store Locator section of the company's website.

Whilst Ambro RELAX retails for between US$1.99 and US$2.99, the company suggests a selling price of US$1.99 as it feels the drink should be accessible to all consumers. However, Jiwani clarified that there has been good demand for the drink at higher price points. www.ambrorelax.com

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functionaldrinks zenithinternational newsletter Page 3 Issue 191 24 August 2010

energy drinks

United States

Energy drink strikes home US energy drinks brand Liquid Lightning has been revamped with new packaging and is currently the focus of a new advertising campaign during 2010.

The newly-designed 250ml slim can features a series of 'highly stylised photographs that are elegant yet edgy and thoughtfully provocative,' and is described as a 'must have for the fashion and night-life scene.'

Meanwhile the new advertising campaign will be seeking to reinforce the product's positioning as a 'sophisticated lifestyle product for every man and woman who pursued excellence in everyday life with passion and fervour.'

The beverage stands out from other energy drinks brands, according to its manufacturer, thanks to its unique formulation which

includes significantly high vitamin dosages and the absence of sodium.

There are currently two variants, Original and Sugar Free, both offering 210% of the recommended daily amount (RDA) of vitamin C, 520% of the RDA of vitamin B and a staggering 1290% of the RDA of vitamin B12.Vitamins B6, niacin B3, pantothenate B5 and riboflavin B2 are also present, in addition to caffeine, taurine, glucuronolactone to strengthen the connective tissue used in physical activity, inositol to promote a positive mental state, panax ginseng and potassium citrate to counter stress and fatigue.

Future brand development is also expected to see the addition of four new flavour variants, all of which will feature the drink's trademark high vitamin concentration but with reduced sugar content, instead sweetened with fruit juices and natural ingredients stevia and tooth-friendly xylitol.

Liquid Lightning is packaged in 8.4oz and 16oz cans and is available through over 450 A&P Supermarkets,Waldbaums and Food Emporiums. www.llenergy.com

nutraceuticals

United States

Support your body's defences in a shot!

NVE Pharmaceuticals has added a line of vitamin-enriched shots to its existing portfolio of energy drinks and shots.

The new range was launched under the company's Stacker2 brand, which also comprises dietary supplements for increased energy and weight loss. Stacker2 Vitamin Shot contains a proprietary blend of ingredients that can help support and strengthen the body's defences, in addition to other ingredients chosen for their specific functionality according to the variant.

Vitamin Shot Hangover Helper, available in Detox Lemonade flavour, is a blend of B vitamins, milk thistle, green tea, dandelion and ginger root, so designed to help rebalance mental

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clarity as well help the body get rid of toxins.

Vitamin Shot Self Defense, Intense Orange flavoured, contains vitamins B and C, Echinacea, zinc and other herbs designed to boost the immune system. Meanwhile Sweet Cherry flavoured Vitamin Shot Joint Fit combines the positive benefits of glucosamine, chondroitin and vitamin D to support joint function and bone strength.

Vitamin Shot Rest & Relaxation, Blissful Blueberry flavoured, features a mix of valerian root extract, passion flower extract, L-tryptophan and chamomile extract to help support mental calming and relaxation.

Tropical Passion flavoured Vitamin Shot Prolong Pleasure contains the libido-boosting ingredients horny goat weed, ginkgo and maca root which are also said to increase energy, stamina and improve performance.

The five-strong range is available for purchase through the company's website, with a tray of 12 2oz shots retailing for US$19.99.

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functionaldrinks zenithinternational newsletter Page 4 Issue 191 24 August 2010

enriched beverages

India

Waters with a plus debut in India The recently-created joint venture between Groupe Danone and Indian food and drinks distributor Narang Group has unveiled the first fruit of its collaboration in the form of a range of enriched drinks.

In May 2010 both companies announced the creation of Danone Narang Beverages, owned in equal parts by the firms. At the same time, it was announced that the first product to be launched would be Qua+, under Narang Group's mineral water brand, Qua. Rahul Narang, CEO of Narang Beverages, commented on the joint venture, "We have had a long-term association with Danone since inception, managing the logistics, distribution and marketing of their brand Evian in India. Now we have decided to set up an equal joint venture with the company and will be launching a vitamin water as the first product. Initially, we will import the product from Danone's facilities but considering the high customs duty at nearly 50 per cent, with

time we will start manufacturing it in India."

Speaking about the motivation behind the extension of the Qua brand, Narang added, "In India, there is no player yet [in this segment].The category does not exist in India - therefore, we would be creating the category for which we believe there is huge potential." Other competitors in bottled water, such as Tata Tea, have expressed their desire to enter the functional category; but it has been speculated that other products would be positioned as mainstream offerings as opposed to in the super premium segment where Qua positions itself.

Moreover, Narang explained that Indians are becoming more body conscious, with low fat, low sugar or low carbohydrate products becoming increasingly popular.

The Qua+ range is available in various variants: Modelicious for beauty (apple); Morning Glory for good health (orange-lychee); Ninja Jack for endurance (dragon fruit); Phat Burn for calorieburning (peach-mango); Rush Hour for energy (mango-passion fruit) and Sin Doctor for recovery (lemon).

With regards to the future, the company has revealed it intends to extend Qua+ with more offerings.

Qua+ is priced at 95 Rupees for a 500ml bottle, but this is expected to be brought down once manufacturing starts in India. www.naranggroup.com

functional waters

Germany

Water with an added 'K'ick

K, Min-AG developed the beverages in collaboration with Paul Kestermann, gastronome, drinks designer and founder of Club 100.

German mineral water company Mineralbrunnen Ăœberkingen-Teinach (MinAG), producer of the cult caffeinated cola brand, africola, has stepped up its efforts in the functional sector.

Featuring Paul K's profile on the front of the glass bottle packaging, the drinks are available in Açaí,Yuzu-Chili and Tayberry variants - herbal, hot and fruity offerings respectively.

Positioned both as an ideal mixer for long drinks or as a healthy soft drink alternative, the enhanced beverage trio is viewed as a new 'trend' product in Germany.

Recently unveiling a three-strong enhanced water line under the name Paul

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functionaldrinks zenithinternational newsletter Page 5 Issue 191 24 August 2010

functional waters

Germany

Pretty prospects in pink

slimming potential in certain markets, as well as giving the brand a more modern appeal.

Contrex Product Manager, Caroline Krebs, hopes the new look will enable the brand becoming more of a lifestyle drink for the young and trendy, in addition to increasing its appeal to new audiences.

The mineral water brand Contrex has been subject to a relaunch in Germany.

The redesigned brand and packaging can already be seen in retail outlets across Germany.

Situated in Mainz, Nestlé Waters Deutschland's motivation for the repositioning is to place yet further emphasis on the water's naturally high calcium and magnesium content, which determine its

www.contrex.de

energy drinks

France

Oh là là - it's all change!

Since its launch in the middle of 2007, French energy drink sensation Truc de Fou has gained a secure foothold in the French market thanks to its staunch Gallicism in the face of a strongly Anglophonic energy drinks market.

Nevertheless, refusing to sit on its laurels, the brand's producer, Société MBM, is in the process of overhauling the whole product with a new taste, formulation, identity and packaging. Indeed the only part of the brand that is to stay constant will be its pricing. According to Truc de Fou CoFounder, Enguerrand de Gouttes, the company is also taking the opportunity to change its supplier and plan its launch into new markets.

The formulation change involves the addition of taurine which, having previously been banned by the France's food standards authority Agence Française de la Sécurité Sanitaire des Aliments (AFSSA), was omitted from the brand's original composition. However, since the ingredient's approval in May 2008 and in response to consumer demand, Société MBM decided to reformulate the brand with its inclusion.

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Furthermore, the ingredient guarana, which had been present in the original formulation, has now been withdrawn since it was deemed to give the product a slightly astringent taste.The new product is said to have an overall less sweet, more rounded and softer taste.

On the identity and packaging front, the brand has been given a sharper image with a lightninginspired logo, a reference to the energy charge that the beverage provides. French consumers will also be given the choice of the existing 250ml slim can format, produced for the company in the UK, in addition to a new 1 litre PET format, bottled in France.

According to de Gouttes, the company would have loved to have found a French supplier able to bottle the slim can variant, making it an all French affair, but as yet it has not identified anyone that meets all the criteria. Both pack formats will however feature what the company claims is a first, the use of 3D barcodes on cans and bottles, which will enable consumers to link directly to Truc de Fou's fanpage on Facebook through a smartphone application.This futuristic technology may, in the longer term, even enable consumers to win prizes directly by scanning a grid on the packaging.

And to top it all, the brand's website is equally being revamped, and expected to be relaunched later in the summer.

Unchanged is the product pricing at a highly competitive €1 for the 250ml can format.

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functionaldrinks zenithinternational newsletter Page 6 Issue 191 24 August 2010

functional dairy/sports drinks

Drink helps replenish stamina Gujarat Cooperative Milk Marketing Federation, producer of milk and milk-based products under the Amul brand, has announced plans to re-launch its milk-based sports drink, Stamina.

The new Stamina will keep its milk base and will include high quality whey protein, lactose, sucrose, glucose, minerals and vitamins.

According to the company, whey protein contains alpha lactalbumin, which is the main component in human breast milk.

Immunoglobulin and lysozyme, also contained in whey protein, are said to provide immuneenhancing benefits.

India Moreover, extended periods of exercise and stress in athletes can lead to fatigue and reduced physical performance.Whey protein, which is easy to digest, quickly provides the body with essential branched chain amino acids (BCAAs), while glucose provides instant energy. BCAAs and potassium help in repairing and rebuilding lean muscle tissues that are broken down by exercise.

Stamina was first launched in 2006 but did not prove too popular. However, Amul decided to capitalise on the growing interest in health and wellness as well as in sports thanks to the upcoming Commonwealth Games to be held in Delhi this October.

As such, Stamina will be aimed at sports professionals and enthusiasts alike.To this end, Amul is currently conducting sampling activities in gyms, sports clubs and other potential points of sale.

Stamina is available in Lime n' Lemon and is currently packaged in 200ml Tetra Pak cartons, giving it a shelf life of 120 days at room temperature.

Each carton retails for Rupees 15.

www.stamina.coop

nutraceuticals/enriched beverages

Supporting the needs of Japanese women

Japan confectionery. As an example of an offering with an additional functional element, the C1000 Lemon Collagen variant is, as its name suggests, lemon-flavoured and contains 1.2g of skinboosting collagen.

According to the company, this particular addition is perfect for calorie-conscious women since it contains 23 calories. In addition, the well-known benefits of vitamin C as an antioxidant and immune-boosting vitamin coupled with the beauty benefits of collagen, make C1000 Lemon Collagen an attractive proposition for women of all ages.

House Wellness Foods has recently expanded its range of vitamin C-enriched drinks with an offering specifically designed to appeal to health and beauty-conscious women.

C1000 Lemon Collagen is packaged in 140ml glass bottles that retail for Yen 130 apiece.

Called C1000, the range comprises numerous drinks, all providing 1,000mg of the vitamin in different formats, such as single-serve flexible pouches, 140ml glass or 500ml PET bottles and

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wellness beverages

Thailand

Making a 'B' line for new markets

drinks sector, with related sales to be generating 20% of its turnover within five years.

Thailand's Singha Corporation, producer of the world renowned Singha beer, has communicated its aim to increase activity in the soft

With this goal in mind and as part of its efforts to achieve it, the company is apparently planning to export its so-called lifestyle drink, B-ing, to Hong-Kong and several other Southeast Asian countries.

First introduced to the Thai market in May 2008, B-ing is a three-strong beverage range comprising the following variants: B-ing Boost, designed to deliver an energy boost to both the body and mind; B-ing Comfort, which provides added fibre to benefit the digestive system; and B-ing Fine, fortified with multivitamins to strengthen immunity.

Thailand's domestic market for this type of beverage reportedly grew by 355% in 2009 to the value of â‚Ź102 million. www.boonrawd.co.th

energy drinks

United States

New addition for fierce brand Roaring Lion Energy Drink (RLED LLC) recently communicated news of the latest accompaniment to its energy drink portfolio in the form of a sugar free version.

Presented in a 12oz slimline can - as well as a 500ml PET bottle - and positioned as an extension to an already powerful premium energy drink brand, Roaring Lion Sugar Free is said to maintain the same unrivalled taste, quality and functionality of the original energy formulation.

The point of differentiation being its zero calorie credentials, the sugar free offering adds further strength to an already fierce brand. RLED LLC claims to have revolutionised the delivery of energy drinks in bars, nightclubs and clubs in the US, UK, Australia, the UAE, Belgium and Austria with its bag-in-the-box (BnB) system, a "truly industry-friendly alternative" to the can format that ensures easy and efficient handling with minimal waste.

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The drink derives its energy-boosting properties from a combination of taurine, glucuronolactone, caffeine and B vitamins and, although the company caters for retail with single serve formats, it is so confident in the cost effectiveness of its BnB solution that there is a savings calculator on its website.

By way of example, a bar getting through five cases of energy drink cans per week could apparently save US$99 on a weekly basis, or over US$5,000 in a year.

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functionaldrinks in brief

Europe

Denmark: Danish ingredients company Danisco has announced its planned presence at the forthcoming NUCE 2010 congress and trade fair, with a presentation scheduled to discuss the potential applications of probiotics beyond yogurt.

France: Recently conducted research has revealed that consumers are more willing to pay more for products making cholesterol-lowering claims, even those who do not have cholesterol issues. One of the researchers, Stéphan Marette, commented, "An econometric estimation shows a significant link between the change in willingness to pay and the perception by participants regarding the scientific validity linked to the sterols."

Vital Pharmaceuticals, otherwise known as VPX Sports, has won a legal trademark case against Red Bull GmbH Societé de Droit, which raised its opposition to the VPX/Redline trademark application in the European Union Office for Harmonization in the Internal Market on the grounds of dilution of its own offering and the likelihood of confusion.The court found there was no risk of confusion between the Red Bull and Redline trademarks.

UK: Solution Sciences Ltd, producer of the pre-tox drink Alibi, has launched a contest in which consumers can win £500 or a case of Alibi worth £34.99 by filling in an online survey and giving details of the worst alibi they have ever heard.

Pomegreat has announced the launch of a pomegranate and beetroot juice variant.The company has also started a promotion whereby consumers can win one carton of the new flavour simply by registering on its website.

North America

US: A survey conducted on consumers over the age of 45 revealed that around 28% of people in the age group are not aware of any of the health

functionaldrinks zenithinternational newsletter

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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benefits of omega-3 supplementation, 60% of which were unaware of its heart health benefits and 62% unaware of its cholesterol-lowering ability. Moreover, 53% were unacquainted with the health benefits of probiotics, with over 50% of them unaware that probiotics can benefit the immune system. Finally, 32% of consumers aged 45 and over did not know about the benefits of glucosamine.These results show the importance of consumer education as a means to helping them make informed decisions about their food and beverage choices and spurring demand.

Gatorade has revealed that sales of its eponymous sports drink have started to pick up following a challenging 2009. According to retail data, sales of the drink increased by 10% in the second quarter of 2010 and were up 3% for the first half of 2010.

New York Senator Charles Schumer has urged the Federal Trade Commission (FTC) to investigate the marketing of flavoured alcoholic drinks with caffeine that appear to be explicitly marketed at teenagers. According to Schumer, the colourful packaging and use of cans by some of these beverages is intended to confound parents and police with labels that resemble soft drinks.

A study conducted at the University of Rochester in New York has revealed that cherry juice could help tackle insomnia thanks to its high level of melatonin, the hormone that regulates the sleep cycle. According to the research, participants who drank cherry juice enjoyed on average 17 minutes more sleep a night.

US Farms has announced plans to build a production facility for aloe-based skincare products and energy drinks using its leading ingredient, Aloe365.

Continental Airlines has added Red Bull energy drink along with new alcoholic cocktails to its inflight drinks menu. A serving of Red Bull will be offered to customers for US$3.

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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