100913_FD_Issue 192

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functionaldrinks zenithinternational newsletter This issue at a glance...

Page seven Collagen boost for Singapore

Page three Canadian hearthealthy addition

Page seven Shot of nutrients debuts in the US

Issue 192

sports drinks

United States

New sports drink fights for the 'title' One year after the launch of its sports drink, functionaldrinks reviews the progress that The Electric Beverage Company has made. Appropriately named Title, the sports drink is the only isotonic drink in the US to contain a proprietary formula of 72 ionic trace minerals including the five core electrolytes sodium, potassium, chloride, magnesium and calcium. Moreover, Title has been independently validated to contain five times more magnesium and eight times more potassium than existing brands.

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Founder of Title, Kevin Sepe, commented that the idea of developing a sports drink came after he was approached by an expert in mineral nutrition who needed help with marketing a proprietary formula that had yet to be released

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to the industry. After months of research, Sepe acquired the exclusive rights to the formula that would later be used in Title as well as forming a confidential agreement with the mineral company as part of the acquisition. In August 2009 Title was finally launched in the state of Florida, where major retailers such as Publix, Walgreens, Sedano's, Navarro and Albertsons quickly started selling the drink. Following this, Electric Beverage Company enlisted the help of distributing company Blue Gem Enterprise with which it established a national retail strategy to expand distribution from Southern Georgia and Florida to the rest of the country. Although Sepe is aware that Title is competing against the behemoths of sports drinks, namely Gatorade and Powerade, he is confident that Title will gain a loyal following thanks to its natural credentials and its proprietary formula that boasts more minerals than other regular sports drinks.

Title is sweetened with cane sugar and stevia and is free from additives, artificial colours and preservatives thus positioning itself as a 100% natural alternative.

Page six Mexicans get slimming aid

13 September 2010

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As such, Title is targeted at discerning consumers looking for more from their sports drinks. Even though Title is marginally more expensive than mainstream sports drinks, its unique formulation more than makes up for the price difference. Title is available in Orange, Lemon and Berry variants. Each 20oz bottle retails for US$1.39.

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functionaldrinks zenithinternational newsletter Page 2 Issue 192 13 September 2010

editorial comment Welcome to the 192nd issue of functionaldrinks. In this issue we explore some of the latest developments in Canada, where product launches are often overshadowed by developments in the neighbouring US market or only come following an initial rollout in the US market. Parmalat Canada has expanded its portfolio of offerings with a new line-up of probiotic yogurts enriched with plant sterols to help lower bad cholesterol (see Page 3); in the province of British Columbia, we follow the introduction by coffee chain Blenz of a range of healthy high protein shakes for health enthusiasts (see Page 4). We also report on the latest news from PepsiCo Canada, which has fixed the date for the launch of Gatorade G-Series as part of the brand overhaul (see Page 6).

commitment to expand its presence in the soft drinks sector (see Page 4). In Mexico, leading producer of sparkling mineral water Grupo Peñafiel has unveiled a fibre-rich water that is aimed at helping consumers win the battle against obesity whilst providing a tasty and guilt-free experience (see Page 6). In Colombia, we look at the re-launch by Procafecol of its energy drinks in the country in order to help increase consumption occasions of coffee and coffee-based drinks (see Page 5). In the US, we look at the launch of two different sports drinks that are aiming to take on the two biggest global sports drink brands on their own turf! GT Beverage Company LLC has introduced a drink targeted at active children and adults (see Page 5) whilst The Electric Beverage Company has opted for a drink featuring a proprietary mineral blend to make a superior formulation (see Page 1). We also look at the entry of Bazi with its eponymous energy shot that not only energises but thanks to its ingredients helps support health (see Page 7). Finally, in the UK we cover the latest addition to the growing Glacéau vitaminwater range which now stands at eight variants (see below).

There has also been a flurry of product launches elsewhere and in Singapore, local drinks company Fraser & Neave has added a juice drink targeted at health and beauty conscious women under its wellknown Fruit Tree brand (see Page 7). Nearby in Thailand, leading beer producer Thai Beverage has introduced a sports drink as part of its

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

enriched beverages

United Kingdom

'focus'ing on the power of vitamins Coca-Cola Great Britain (CCGB) continues to capitalise on the growing popularity of the vitaminwater line-up, with the introduction of an eighth variant. The new variant was launched in time for summer and has been enriched with lutein to protect against oxidative damage in the eye, giving rise to the drink's name, i-focus. Critically,

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lutein is not synthesised in the body and hence must be obtained through dietary sources. Other vitamins found in i-focus include vitamin C for energy generation in the muscles and other cells; vitamins B3 and B5 to stimulate the production of energy from carbohydrates and vitamins B6 and B12 which are necessary for the production of healthy blood. The launch of i-focus has been supported by a marketing campaign entitled "Show us your vits" in which consumers were invited to send photos or videos of themselves explaining which Glacéau vitaminwater variant they were drinking and why. (continued on Page 3)

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functionaldrinks zenithinternational newsletter Page 3 Issue 192 13 September 2010

enriched beverages

United Kingdom

(continued from Page 2) The winners, some of which have already been announced, will appear in billboard ads across the UK.

tripled in the year to date to reach £8 million, overtaking other flavoured waters such as Britvic's Juicy Drench and Innocent Drinks' This Water. CCGB has put the brand's £5 million investment push for 2010 as one of the main drivers for growth. i-focus is strawberry-kiwi flavoured and retails for around £1.39 per 500ml bottle.

Reportedly, sales of Glacéau vitaminwater

www.vitaminwater.co.uk

functional dairy

Canada

Yogurt gives its best to Canadians Parmalat Canada has added a heart-healthy yogurt range under its Astro BioBest umbrella brand of probiotic yogurts. Each 100g serving of BioBest Plant Sterols probiotic yogurt is enriched with 50% of the daily amount of plant sterols recommended to help lower cholesterol. According to research, the daily amount of plant sterols shown to help reduce cholesterol in adults is 2g, which equates to 100 pounds (45kg) of raw vegetables daily or just two servings of BioBest Plant Sterols yogurt. Plant sterols are found in vegetables, fruits, vegetable oils, legumes, nuts and grains, and compete with cholesterol transporters in the body, thus helping block the absorption of cholesterol into the blood stream and reduce build up along the walls of the arteries. Parmalat Canada President and CEO Nash Lakha commented on the product launch, "Our

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goal at Parmalat Canada is to be able to provide consumers with a simple, everyday food that's easily incorporated into their diet with the added bonus of a functional ingredient that specifically lowers cholesterol, which is a significant factor in heart disease." Lakha added, "Clinical studies on sterols, such as those used in our yogurt, have been conducted, proving that sterols significantly lower cholesterol levels. It's exciting to have the ability to harness active ingredients found naturally in vegetables and fruits and incorporate them into other foods so that consumers can benefit in ways that weren't possible before." According to Health Canada, approximately 50% of Canadians aged 20 to 79 have high cholesterol, one of the main risk factors for heart disease, which largely led to the recent approval by the agency of the addition of plant sterols to a variety of select foods in May. Astro BioBest Plant Sterols has been available across the country in all retail locations where other Astro BioBest products are sold. The yogurt is available in packs of eight, with four each of either raspberry and blueberry flavours or strawberry and vanilla flavours.

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functionaldrinks zenithinternational newsletter Page 4 Issue 192 13 September 2010

functional dairy

Canada

Helping Canadians reach their health goals British Columbia coffee-shop chain Blenz has introduced a range of protein-rich shakes to cater to health and fitness conscious consumers. Each Blenz Protein Shake is handmade to order to ensure freshness and quality are maintained.The shakes are available in Strawberry-Banana, Power MochaChillo, Mixed Berries, PB Banana Chocolate and Power Matcha variants, and all include 30g of whey powder. All shakes are made using top quality ingredients and, depending on the variant, may include fruit, Belgian chocolate, high quality premium matcha tea and yogurt. Although the Blenz Protein shakes have only just been officially launched, the company began test marketing the drinks in the early months of 2010 and found that new segments of the market were visiting daily to pick up their

protein booster or meal replacement. George Moen, President of Blenz Coffee, has expressed his enthusiasm on the launch, reportedly in part because he now also enjoys the shakes as healthy meal replacements. Moen added, "We're responding to the market's demand for a healthy meal alternative, and we're excited that we can do so while maintaining our high standards of delicious, authentic, natural and handmade beverages with top quality ingredients." The Blenz Protein shakes are available at all Blenz Coffee locations, in addition to the ten Fitness On The Go units with which Blenz has partnered. Fitness On The Go is a system with locations in British Columbia, Ontario and Quebec that helps make fitness easy and affordable by sending certified personal trainers to clients' homes to guide them through effective workouts on their schedule. As part of the partnership, Blenz Coffee will offer an instore prize draw for a C$1,000 gift certificate towards personal training in addition to other joint campaigns that will run over the course of the Blenz Protein Shake promotion.

www.blenz.com

sports drinks

Thailand

Drink empowers sports enthusiasts

pineapple variants in bottles of 250ml and now a new 325ml.

Leading producer of beer in Asia Thai Beverage has recently introduced another format to its isotonic drink to further complement its portfolio of soft drinks. The drink, called Power Plus, as well as providing sodium and potassium to restore electrolyte levels in the body, also contains glucose to help quickly replenish energy levels. It is currently available in orange, lime and

Power Plus was first introduced in 250ml bottles, with the new 325ml bottle design developed in cooperation with packaging supplier Sipa's Chinese branch. However, the bottling has been delegated to Wrangyer Beverage Co, a subsidiary of Thai Beverage. According to Thai Beverage, the marketing efforts since Power Plus was originally launched and now the new format will continue to strengthen the brand's position in the region. In fact,Thai Beverage has expressed its desire to turn Power Plus into the number two sports drink in South East Asia by 2012. Power Plus is sold in Thailand and Laos and according to the company, expansion to other countries is currently underway.

www.thaibev.com

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functionaldrinks zenithinternational newsletter Page 5 Issue 192 13 September 2010

energy drinks

Colombia

Energy drinks with a coffee kick! Procafecol, the company created by the Colombian Coffee Growers Association, has re-launched its three-strong energy drink range in the country. The brand name, Kick, remains the same as well as the use of coffee as a base for the energy drinks.The three carbonated beverages are all coffee-cola flavoured. Kick Regular features coffee extract as its main energising ingredient, whilst Kick Light uses aspartame and acesulfame K as sweeteners. Double Kick, as its name suggests, features

twice the content of coffee extract in addition to guarana and taurine. The re-launch of Kick is part of the company's strategy to increase consumption of Colombian coffee by introducing new products and consumption occasions. According to Procafecol, there are also plans to extend the product's availability to the US, under its current Juan Valdez umbrella brand, as well as the possibility of replicating its Juan Valdez cafĂŠs there in a bid to boost profits for the Colombian coffee growers that own Procafecol. The three-strong range is available in 296ml slim cans that are sold at all Juan Valdez cafĂŠs in Colombia as well as other select outlets.

www.juanvaldezcafe.com

sports drinks

United States

New health beverage for active kids California-based GT Beverage Company LLC has introduced a new beverage designed for healthconscious, active children and adults. Sportastic Sports Drink is formulated to help replenish and rehydrate the body with electrolytes, vitamins B5, B6, B12, calcium, magnesium, potassium and niacin. It is free from artificial stimulants, is naturally flavoured and boasts just 4g each of sugar and carbohydrates and 15 calories. The beverage is available in a variety of flavours, including Fruit Punch, Blue Chill and Orange. Sportastic is suitable for diabetics and has been

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approved by scientists at the Juvenile Diabetes Research Foundation. GT Beverage Company has also joined the School Nutrition Association (SNA).Tom Weiss, President of GT Beverage Company commented, "The SNA was instrumental by assisting our company in identifying interested school districts including: California, Indiana, Illinois,Wisconsin, Missouri, Kentucky,Texas and others for distribution of Sportastic Sports Drinks.We are looking forward to a successful year in this market as well as the retail and international markets." Sportastic Sports Drinks have an innovative bottle design, based on sports balls including soccer, baseball and basketball, with more sporting themes in the pipeline.The 12oz bottles are available in six- and twelve-packs. The new drink is currently available in 50 US states at stores including Big Lots,Walmart, Walgreens, Kroger and Fred Meyer.The company is aiming to expand its operations internationally to include Puerto Rico, Mexico, Canada, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.

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functionaldrinks zenithinternational newsletter Page 6 Issue 192 13 September 2010

sports drinks

Canada

Sports drink evolves to better serve consumers PepsiCo Canada has announced the date for the impending launch of the Gatorade G-Series range in the country following the brand's makeover in the US. According to PepsiCo, the drinks will be launched in Spring 2011 and will be trialled prior to the launch by around 60 Canadian athletes such as UFC (Ultimate Fighting

Championship) fighter Georges St-Pierre, ultramarathoner Ray Zahab and Olympic kayaker Adam Van Koeverden. The G-Series range includes three sub-lines: G for most athletes; G Pro for elite athletes and G Natural. Both G and G Pro feature three products, Prime, Perform and Recover tailored to the needs before, during and after sport of athletes. G Natural is composed of a regular and a low-calorie version entitled G2 Natural for those seeking the hydration benefits of Gatorade but without any artificial colours, preservatives, sweeteners or flavours. In Canada, there are currently 'older' versions of Gatorade such as Gatorade Rain and Gatorade X-Factor which will be phased out in line with the brand's revamp. Dale Hooper,Vice President Marketing of PepsiCo Beverages Canada, commented on the launch, "With the G Series platform, Gatorade brand has gone beyond hydration to provide sports nutrition solutions that are specifically tailored to meet the different needs of a broad range of athletes." www.gatorade.ca

near waters

Mexico

Shaping the figures of Mexican consumers Grupo Pe単afiel has recently added a functional still water to its popular Aguafiel brand that could help combat the country's growing obesity problem. Aguafiel Figura is a grapefruit-flavoured still water that as well as hydrating, helps with weight maintenance thanks to the addition of active ingredient Teavigo.Teavigo is a high-purity green tea extract that is composed of a minimum 90% of epigallocatechin gallate (EGCG) developed by ingredients specialist DSM. Teavigo is backed by scientific evidence which has demonstrated that EGCG stimulates metabolism and increases fat oxidation. Moreover, EGCG is a potent antioxidant and as such helps counteract the negative effects of free radicals.

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In addition, Aguafiel Figura is sweetened with Splenda, enabling consumers to enjoy the drink guilt-free whilst also receiving the benefits of consuming six cups of green tea in a one-litre bottle. According to the company, Aguafiel Figura is targeted at all consumers, male or female, who follow healthy, active lifestyles and are interested in looking and feeling good. As such, Aguafiel Figura can also be consumed by people who are looking to delay the ageing process thanks to Teavigo's antioxidant effect.To obtain maximum benefits, Grupo Pe単afiel suggests drinking two bottles a day. To date, Aguafiel Figura seems to be the first and only flavoured water to contain Teavigo.To make the drink stand out even more, Aguafiel Figura is packaged in a practical and aesthetically pleasing pink PET bottle. Aguafiel Figura is already sold through supermarket chains Walmart and Superama for a retail price of only Mexican Pesos 10.

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functionaldrinks zenithinternational newsletter Page 7 Issue 192 13 September 2010

enriched beverages

Singapore

Collagen-rich beverage embellishes Singapore market

absorption of iron from non-meat sources as well as being essential for the body's synthesis of collagen. Fruit Tree Fresh CollagenPlus Juice Drink has no added sugar and is sweetened with apple and pear juices, further enhancing its health credentials, so much so that it is endorsed Healthier Choice by the Singapore Health Promotion Board.

Singaporean drinks company Fraser & Neave has expanded its range of Fruit Tree juice drinks with an offering that will appeal to health and beauty conscious women.

Fruit Tree Fresh CollagenPlus Juice Drink is available in two flavours: Peach and Mixed Berries:

The new Fruit Tree Fresh CollagenPlus Juice Drink is a pasteurised juice that contains collagen jelly bits made from natural marine collagen. Collagen helps provide resilience and structure to bones, skin and muscles. Each 250ml serving of Fruit Tree Fresh CollagenPlus Juice Drink provides 600mg of natural marine collagen, so consumers can literally see and taste the difference.

• Peach Mixed Fruit Juice Drink features rich, aromatic peach juice. Peaches are packed with vitamin C and phytochemicals, such as flavonoids and carotenoids, which provide the body with free-radical fighting nutrients. • Mixed Berries Mixed Fruit Juice Drink contains blackcurrant and cranberry juice, both of which are well-known for their rich antioxidant phytochemical content of flavonoids, anthocyanins and vitamin C. Both variants of Fruit Tree Fresh CollagenPlus Juice Drink have been available since June 2010 in take-home 1litre TetraPak cartons and handy 250ml PET bottles.

In addition, the juice drink has been enriched with vitamin C, which, as well as being a powerful antioxidant, helps boost

www.fraserandneave.com

energy drinks

United States

Nutritious energy shot debuts in the US functionaldrinks spoke to Bazi who has just introduced its first eponymous energy shot in the US. Bazi is formulated with eight superfruits that the company considers critical for long-term health, increased energy and immunity support.This blend of superfruits, known as Phyto8, features jujube, blueberry, pomegranate, goji, mangosteen, raspberry, açai and sea buckthorn. It

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is also packed with antioxidants, a proprietary trace mineral blend and over 100% of the recommended daily amount (RDA) of vitamins A, C, D, E and B9.This combination of ingredients offers active men and women a healthy energy alternative and supports a dynamic lifestyle. Bazi is targeted at 18 to 34 year-olds including students, athletes and people from all occupations. Moreover, because of the range of nutrients contained in Bazi, the energy shot crosses over many different consumer segments from active, healthy and informed consumers to young people looking for an everyday beverage to keep them healthy and energised. In order to promote Bazi to its wide consumer target, the company will sponsor a range of events such as the Rock N' Roll series races in San Diego, Denver, Los Angeles and San Antonio, and the Deer Creek Challenge and Sunrise Century (both cycling events). Other upcoming

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functionaldrinks zenithinternational newsletter Page 8 Issue 192 13 September 2010

energy drinks

United States

(continued from Page 7)

and distributors across several distribution channels.

events will be arranged with Bazi's sponsored athletes such as surfer Anastasia Ashley. Finally, Bazi will be running a full-page national ad in Competitor Magazine for three consecutive months. The company will also run sampling activities and promotions to help educate consumers about the health benefits of Bazi. Despite having only been launched on 24 August 2010, the company has said that there is already great interest in the energy shot from retailers

Bazi is available for purchase through supermarkets, convenience stores, gym and fitness centres, and nutrition stores as well as through the company's website. One 2oz shot carries a recommended retail price of US$2.99, whilst a 14oz bottle format, containing seven servings that Bazi expects to introduce in a few months, will retail for US$14.99. www.drinkBazi.com

functionaldrinks in brief

Europe

According to analysis by Frost & Sullivan, the European omega-3 market reached revenue of US$323 million in 2008 and is expected to reach US$525.6 million by 2013.The estimated 10% compound annual growth (CAGR) should help drive growth in condition-specific health markets such as cognitive health, joint and immune health. Spain: Research conducted in the country by Beneo has revealed that there is a particularly strong demand for energy and mental alertness products where the claims are substantiated. In addition, consumers are expecting products that not only taste good but also provide constant energy without the crash and burn effect associated with certain energy drinks.

North America

US: Performaxx Brands, a wholly-owned subsidiary of Full Motion Beverage, has entered into a multi-year distribution agreement with B&A Food Brokers to establish sales and distribution for Energize shot.The energy shot will be sold throughout New York City and New Jersey. In other company news, Full Motion Beverage will

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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distribute Wat-aah!, a range of functional waters targeted at children and teenagers and owned by Power Potions.Wat-aah! will be sold across Long Island, New York. Wave Energy Drink has launched its "Taste of Summer Challenge" in which the company will reimburse consumers the cost of the purchase of one can of Wave energy drink. In order to be reimbursed, customers need to keep the receipt of purchase, fill and print out a form from the company's website and post it.The challenge will run from 1 June to 1 September 2010. Famous Products Inc has announced it has acquired all the assets including Grass Roots Beverage Co from DNA Beverage Corporation. As a result of the transaction, Famous Products has changed its name to DNA Brands Inc. Bond Labs has added three distributors for its Fusion Premium Beverages division that will see the addition of Resurrection anti-hangover drink to outlets in Michigan.The three distributors are Fabiano Brothers, Mervenne Beverage and Tyler Sales. 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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