100922_FD_Issue 193

functionaldrinks zenithinternational newsletter This issue at a glance...

Page four ‘Jelly’cious drink debuts in the UK

Page five In the US protein drinks grow

Pages six and seven King of energy drinks launched

Page three Eco-friendly drinks in Sweden

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Issue 193

22 September 2010

functional dairy

United States

A shot of kefir keeps the doctor away!

concentrate as well as apple, pomegranate and green tea extracts to help fight free radical damage. In addition, the drink, available in Blackberry and Black Cherry variants, contains resveratrol to ward off carcinogens and provide cardiovascular support.

Lifeway Foods, leading supplier of fermented, cultured milk drink, kefir, in the US, has expanded its portfolio with a five-strong range.

BioKefir for Digestion helps balance the digestive flora with an exclusive formula proprietary to Lifeway which helps soothe upset stomachs, alleviate diarrhoea and helps regulate the symptoms of irritable bowel syndrome (IBS) and other digestive ailments. BioKefir for Digestion is vanilla-flavoured and has also been enriched with fibre to further increase its digestive benefits.

The line-up has been launched under the Lifeway BioKefir brand and all variants have been enriched with ProBoost, Lifeway's new proprietary blend of 12 live and active probiotic cultures that have been clinically demonstrated to strengthen immune response and alleviate digestive problems. ProBoost builds on Lifeway's traditional 10-Kefir culture probiotic as it also contains two new strains: Bifidobacterium lactis HN019 and Lactobacillus acidophilus NCFM. Furthermore, at just 60 calories apiece, all BioKefir shots provide an ideal way to quickly and efficiently deliver nutrients to the body.

BioKefir for Immunity is available in PomegranateBlueberry and Kiwi-Passion fruit variants. It contains acerola, one of the richest sources of vitamin C, to provide 100% of the recommended daily allowance (RDA) of the vitamin as well as antioxidants including carotenoids and anthocyanins contained in the exotic fruit.

Julie Smolyanksy, CEO of Lifeway Foods, commented on the launch, "Our new BioKefir shots will enable health-conscious consumers to get their daily dose of probiotics, vitamin C, antioxidants and fibre quickly, easily and with

no interference to their schedules or diets." She added, "The 3.5oz package fits with today's fast-paced lifestyles, can be carried anywhere, and ensures that you can always add a healthy boost to your day."

The Bio-Kefir range is available in various retailers across the US alongside other Lifeway kefir products.

BioKefir for Heart Health boasts grape

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functionaldrinks zenithinternational newsletter Page 2 Issue 193 22 September 2010

editorial comment Welcome to the 193rd issue of functionaldrinks. Asia has long been the leader in innovation in many industries, one of which is that of functional food and drinks.

The region is also home to some of the most commonly used traditional medicines. It is perhaps no surprise to see beverage companies take inspiration from these as is the case in this issue.

In Japan, drinks made with jelly are very common, whether the drinks contain jelly chunks or whether it is a smooth drink. In the UK, however, The Clever Jelly Company has introduced what appears to be the first such drink in the country that promises to help snackers and those who are weight conscious (see Page 4).

Green & Blue Veda has introduced its first line-up of drinks that feature traditional Indian herbs to help re-balance (see Page 3).

In the US, we cover the launch of a range of enriched kefir drinks by Lifeway Foods (see Page 1) as well as the latest innovation by AriZona Beverages in the shape of an energy drink that is close to the company's roots (see Page 6) and two new açai-based drinks by Zola Açai to help consumers ward off free radicals (see Page 5). We also report on the two new protein drinks launched by Bolthouse Farms that promise to bring both nourishment and pleasure (see Page 5).

Back in Europe, Polish juice producer Marwit has expanded its range of smoothies with a range of offerings featuring added herbals for specific functionalities (see below). In Germany, we track the growth seen by Rhino's and the recently introduced Monster energy drinks (see Page 6).

In Sweden, we cover the latest developments of local energy drink producer Winnington in order to reduce its environmental impact (see Page 3). Finally, French retailer Carrefour has become the second such company to launch its own light energy drink (see Page 4).

Taking its inspiration from the millenary medicine system ayurveda, French start-up The

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

enriched beverages

Poland

Europeans welcome healthy drinks with a plus Leading Polish juice producer Marwit has recently expanded its range of smoothies with a line-up that features added herbals.

Currently, there are three new variants, all of which have been launched under the Smoothie Plus brand. Apple-Raspberry + Aloe was created to cater to lovers of traditional Polish fruit but with a twist as the smoothie also contains carrot, guava, tomato and lemon. The addition of aloe is intended to help stimulate the digestive system as well as strengthening and

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regenerating the skin.

Orange-Mango + Ginseng features a more exotic taste with notes of orange, apple, passion fruit and lychee. In addition, the smoothie boasts energising properties thanks to its ginseng content.

Peach-Pear + Chamomile & Melissa has the familiar taste of peaches and pear with the addition of quince and nectarine. Chamomile and melissa complete the smoothie designed for consumers wishing to relax.

The smoothies have been available in Poland and Germany since April 2010 and can be bought through select retailers in both countries.

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functionaldrinks zenithinternational newsletter Page 3 Issue 193 22 September 2010

packaging/energy drinks

Sweden

Eco-friendly kick start for Swedish brand Specialist packaging technology company, Petainer, has secured a contract to supply recycled PET bottles to Winnington, the company behind the aptly-named energy drink portfolio, KickUp. Petainer's LidkĂśping plant will manufacture and provide its client with two types of 330ml bottles white opaque for the company's KickUp energy drink and transparent green for the brand's functional water variant, both of which will be delivered to Winnington's plant in BorĂĽs where

they will then be filled.

Sustainability-focused, Petainer endeavours to support brand owners in their lower carbon footprint aspirations, offering ecological alternative packaging formats that it also claims can help boost sales by maintaining and reflecting brand identity.

Generating up to 77% less greenhouse gases and using up to 58% less energy, recycled PET can have a significantly lower carbon impact, and for drinks such as KickUp, which are often consumed away from home, this packaging type also offer the added benefits of reduced weight and greater resistance to breakage.

The KickUp brand comprises a trio of propositions: a 'new generation' functional energy drink in three flavour variants (green berries, red berries and gold berries); a vitamin-, mineral- and antioxidant-rich functional water; and functional energy pods, whose taste and sensation are apparently similar to snuff, the difference being that they are free from tobacco and nicotine.

www.petainer.com www.kickup.se

herbal beverages

France

Mixing Indian wisdom with French tastes

Clean up & Detox, as its name suggests, helps the body get rid of toxins thanks to Indian holy basil and pomegranate. Holy basil, also known as tulsi, is said to have several medicinal uses from strengthening the kidney to treating various infections.

Start-up company The Green & Blue Veda has recently unveiled its first range of ayurveda-inspired drinks.

The third variant, Peace & Smile, features Indian satapatrika and lotus flower. Satapatrika is also commonly known as Persian rose and is used in ayurveda to help rebalance and find harmony.

Happy Water was chosen as the umbrella brand of the drinks, which currently comprises three different variants for three different benefits. Reboost & Go contains Indian madhuka and mango to help revitalise. Madhuka is a herb traditionally used to treat not only weakness but also headaches and respiratory ailments.

To promote the drinks, co-founder Philippe Cubbels said that the company will be present at several Indian-related cultural events, partnering with a well-known actress. Future plans include the expansion of the portfolio with the launch of beauty products, teas and even wellbeing foods.

The Happy Water drinks are available in 500ml bottles and provide just 10 calories per bottle.

They can be bought through select on trade outlets as well as through the Parisian department store Colette where it retails for â‚Ź4.80 apiece. www.thegreenandblueveda.com

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functionaldrinks zenithinternational newsletter Page 4 Issue 193 22 September 2010

enhanced beverages

United Kingdom

Clever way to keep hunger at bay!

Five months after the launch of its novel drinks, functionaldrinks spoke to The Clever Jelly Company to find out how the drinks have performed since. functionaldrinks spoke to Andrew Dobson, Director of Innovation at The Clever Jelly Company, and he revealed that Sukk, as the drinks have been named, have been undergoing test marketing in Manchester since April 2010.

Currently, the line-up consists of two drinks, Kiwi and Green Tea, and

Lemon and Green Tea variants.

In order to support sales, which Dobson said have been increasing week on week, the company has launched a comprehensive marketing campaign that includes posters, sampling, coupons and an online campaign to name a few.

Dobson also explained that Sukk is targeted at 18 to 24 year-olds who regularly snack and want a healthy drink for on-the-go consumption which also has the added benefit of being nutritionallyenhanced; in Sukk's case through the fruit juice, green tea and vitamin content whilst only containing 83 calories.

In addition, Dobson said that Sukk has been enhanced with fibre, with each 180g pouch containing 6g of fibre to increase the drink's satiety-boosting properties.

When we asked Dobson about the company's future plans, he replied, "Sukk is the first jelly drink from The Clever Jelly Company, so watch this space!"

Sukk can be purchased through convenience stores and carries a recommended retail price (RRP) of ÂŁ1.49. http://www.thecleverjellycompany.com

energy drinks

France

Private label set to energise French consumers

branded, yet comparatively expensive, counterparts.

The sugar-free energy drink is called Psychik and accompanies Taurine Force, previously known as Guarana Force. Both drinks are available in 250ml slim cans that can be bought in four-packs or by the unit.Taurine Force is also sold in a 50cl format, and reportedly there are plans to introduce Psychik in the same format in the near future.

Carrefour, one of the largest retailers in France, has added a low calorie variant to its own-label energy drink.

Now that private label energy drinks have established themselves in the market, it remains to be seen whether other retailers will follow suit and start introducing low calorie or sugar-free variants as well as other energy drinks that truly differentiate themselves from other Red Bull 'me-too' drinks.

Following in the footsteps of Leclerc, Carrefour is the second French retailer to introduce a light energy offering.Throughout the year, many of the major super and hypermarket chains in the country have been unveiling their own energy drinks, in a bid to capitalise on the growth seen by their

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functionaldrinks zenithinternational newsletter Page 5 Issue 193 22 September 2010

functional dairy

United States

Natural nourishment for active consumers

per 15.2oz bottle.

The drinks are said to have a smooth and creamy taste, unlike the chalky, artificially flavoured taste sometimes associated with protein drinks. The shakes are designed for consumers with an active lifestyle, providing lean muscle nourishment following a workout, but can also be consumed as a snack, or at any occasion where nourishment is needed.

California-based Bolthouse Farms has expanded its line of protein beverages with the launch of Protein PLUS shakes.

The new beverages contain a 30g blend of whey and soy protein, and are 100% natural with no added sugar, and no artificial colours, flavours or preservatives.

"Consumer demand for bottled protein drinks and bars has grown rapidly over the last few years. Elite athletes started the trend but health focused consumers from all walks of life are now the principle consumers." said Chris Cook, Marketing Director, Bolthouse Farms. "For the first time, we are offering a shake that is a pleasure to consume and is all natural."

Protein PLUS is available in Chocolate flavour, made with real cocoa and containing 21 vitamins and minerals, including vitamins A, C, D, E, B6 and B12, and minerals calcium, iron, magnesium and zinc. The beverage is also available in Mango flavour which contains 90% fruit juice and provides three servings of fruit and vegetables

Packaged in 15.2oz and 32oz bottles, Bolthouse Farms Protein PLUS Shakes are available in the produce section of grocery and health food stores across the United States. www.bolthouse.com

wellness beverages

United States

Daily support to fight free radicals Zola Açai has recently added two new variants to its portfolio of açai-based juices and smoothies.

The first product is a dietary supplement called Zola Açai Daily Wellness Shot which reportedly provides a full dose of antioxidants with just one 1oz shot, thanks to its blend of acerola and açai, accounting for 85% of the total. A shot contains just 20 calories and 3g of sugar.

Zola Açai Daily Wellness Shot is

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available in 32oz bottles and carries a RRP of US$29.99.

The second beverage launched has been named Zola Light Açai Juice. As its name suggests, the juice, which is sweetened with stevia, is low in calories and boasts 50% less sugar and 40% less calories than Zola Açai Original Juice.

Each 12oz bottle provides more than 4,000 ORAC units of antioxidants, omega-3, -6, -9 fatty acids and 70 calories.

Zola Light Açai Juice carries a RRP of US$2.99 apiece.

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functionaldrinks zenithinternational newsletter Page 6 Issue 193 22 September 2010

energy drinks

Germany

Positive and negative charge for German market Having extended its distribution to Real supermarket stores across Germany, energy drink supplier Rhino's has also launched a new televised campaign in support of the brand's growing presence.

Meanwhile since its unveiling in Germany just a couple of months ago through distributor Trend Beverages Vertriebs GmbH, the USborn energy drink brand Monster is also growing from strength to strength and well poised to prove strong competition to market leading Red Bull, according to reports. At just â‚Ź1.79, the 500ml energy drink - available in Monster Energy and Monster Ripper variants is priced well below Red Bull and also has considerable support through sponsorships in the world of motor racing.

In other German news, sale of the ginkgo-based variant of Red Bull sister company Carpe Diem's botanic beverage range has been prohibited by the country's Federal Court of Justice, which could have consequences for other ginkgocontaining food and beverages.

Now positioned on the shelves of over 300 Real stores, the expanded availability will also be bolstered by point of sale (POS) activity throughout the rest of the year. The recent TV ads, resulting from a â‚Ź3 million investment and airing on the channels Pro Sieben, Kabel 1 and Sat 1, are 30 seconds in duration and designed to reinforce the brand's 'no limits' tagline as well as the new cranberry variant.

Grounds for the product's withdrawal relate to its 0.02% content of the energy-enhancing ingredient, which is alleged to be a medicinally active ingredient and unapproved as a food additive.

www.rhinos-energy.com www.monsternergy.com www.carpediem.com

energy drinks

United States

Energy drink parades its Brooklyn roots

functionality but also its taste.

AriZona Beverages has recently introduced another energy offering to its extensive portfolio of soft drinks.

The new AZ Energy complements its energy offerings, until now composed of AriZona Caution Energy in regular and low-carbohydrate variants. Reminiscent of the company's former All City NRG line, which has now been discontinued, the new product also features street art design that AriZona Beverages claims helps emphasise not just the drink's

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AZ Energy is made with natural juices from pears, apples, peaches and mangos, as well as orange blossom honey, creating a fruity citrus flavour compared to the medicinal taste of other energy drinks. Moreover, the energy drink provides several nutrients including 100% of the RDA of vitamins B5, B6, B12 and C as well as containing 100mg of caffeine per serving. As with all other Arizona beverages, the energy drink is free from preservatives, artificial colours and flavours.

AriZona Creative Director Wesley Vultaggio explained, "Most of the energy drinks on the market fall flat when it comes to taste, so with AZ Energy we wanted to make a beverage that not only gives you the energy you need, but something you actually want to drink."

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functionaldrinks zenithinternational newsletter Page 7 Issue 193 22 September 2010

energy drinks

United States

(continued from Page 6)

image of a crown to represent Kings County.

AZ Energy is available in two versions: AZ Energy and AZ Low Carb Energy. Both variants come in 15oz cans decorated with AriZona's familiar eye-catching style implemented with a bold blue and green street-art design.

Furthermore, following from AriZona's Brooklyn roots, the company understands there is an appeal towards the artistry shown in a beverage inspired by its own birthplace, so the cans also feature the

AZ Energy has been available for purchase since April 2010 across the country and it retails for approximately US$1.99 for one 15oz can.

www.drinkarizona.com

functionaldrinks in brief

Europe

The European Commission has rejected a German motion to enforce energy drinks to carry warning labels due to excessive consumption of caffeine and taurine. However, a spokesperson for the Commission stated, "The Commission could find no evidence of a scientific risk associated with these substances that would require additional labelling and had a negative opinion on this notification."

Spain: According to Greg Cherry, Director of Health Ingredients Europe & Natural Ingredients conference, 30% of food and drink consumed in Spain will be functional by 2020. Cherry also said the country ranks second place in Europe in terms of consumption of functional food and drinks.

UK: In an interview, Boost founder and Managing Director Simon Gray said since the brand was launched eight years ago the focus has been on placing the energy drink in convenience stores as Gray believes the impulse channel is best suited to Boost. Gray also mentioned that Boost leads the way in the value energy drink sector, with sales having leapt in the year to July 2010 by 38.3% to ÂŁ13.5m.The brand was also ranked 44th on the Times Virgin Fast Track 100.

Enco Products Ltd has introduced a limited edition variant of its nutritionally enriched milk drink Nurishment.The new drink has been available since August and is mango flavoured.

Marketing Manager Nyree Chambers commented the new flavour will attract new consumers to the brand. Chambers added, "Consumer demand and rates of sales are rising and the introduction of Mango - now a mainstream flavour in soft drinks - will stimulate more consumer interest

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and provide incremental profit opportunities for stockists."

GlaxoSmithKline (GSK) has elected Ash Tailor as Director of Global Marketing Excellence for its consumer healthcare division.Tailor will head global innovation for the Lucozade brand.The appointment became effective on 6 September 2010.

North America

US: Cott Corporation has reported net profit for the first six months of 2010 fell to US$33.8m from US$53.6m in the prior year. Net sales also decreased from US$805.8m to US$787.6m during the period. However, CEO Jerry Fowden said that April had been a particularly good month for sales of energy drinks. He also said he expects the company to perform better in the latter half of 2010.

PepsiCo CEO Indra Nooyi has revealed that following positive signs since the launch of Gatorade G-Series, there will be more innovation. According to Nooyi, the company is a few months away from unveiling the latest addition to the G-Series range. Nooyi stated, "We are very optimistic about the future of the whole G-Series launch and as we go into 2011 you will see a lot more innovation around GSeries, different flavours for different groups, people who like exercise versus people who are hardcore athletes."

Xyience has appointed Jeff Jonke as Vice President of Sales for Eastern Region. Jonke will work closely with Reuben Rios,Vice President of Sales for Western Region. Michael Levy, Xyience CFO and COO commented on the appointment,

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functionaldrinks zenithinternational newsletter Page 8 Issue 193 22 September 2010

functionaldrinks in brief "Jeff brings a wealth of beverage industry knowledge to Xyience. Jeff is a great addition to the Xyience team and we're looking forward to increased growth for Xenergy in the eastern US." RelaxZen has entered into a distribution agreement with 5 Star Beverages for the sale of its RelaxZen Day and Night shots in southern California. 5 Star Beverages will distribute RelaxZen across the San Diego and Imperial counties.

Reportedly, Zico's introduction of its range of coconut water drinks in 14oz resealable bottles has been a success as sales performance have exceeded expectations.The new format was first launched in New York in April and has been introduced to other markets.

The Coca-Cola Company (TCCC) has failed to win a dismissal of a lawsuit accusing the company of making misleading claims under Glacéau vitaminwater.The lawsuit was brought by the Center for Science in the Public Interest (CSPI) and was upheld by Judge John Gleeson of the US District Court in Brooklyn who stated that labels of vitaminwater may violate FDA labelling regulations.

Fuzee Bee Beverage has finalised a Direct Store Delivery (DSD) agreement with New Age Beverage for sales and distribution of Fuzee's ZUN energy drink.The brain-boosting energy drink will be sold in the Denver, Colorado area.

Australia: A new report issued by Horticulture Australia Limited states that apples can help alleviate allergy symptoms and reduce cholesterol. On average, one apple contains 200mg of polyphenols which are credited with stimulating the metabolism, reducing fat and allergy symptoms. Moreover, the report has said that consuming three apples a day could lead to a reduction in cholesterol levels of up to 8%.

India: Results of a newly-conducted investigation suggest that the consumption of fruit yogurt might be beneficial for ailments such as diabetes and cardiovascular diseases. In the animal study, rats that were given fruit yogurt demonstrated lower levels of blood sugar, cholesterol and triglycerides.

Israel: Israeli producer of specialty soy proteins Solbar has announced it will present Solpro 735 at the forthcoming IFT Food Expo show to be held in Chicago. Solpro 735 is a calcium fortified isolated soy protein for use in a range of food and beverages. It is also suitable for both wet and dry beverages.

New Zealand: Researchers have established that vitamin C can help block the growth of cancer cells according to experimental findings.

The study has suggested it may be beneficial for people with cancer to increase their intake of vitamin C.This could help restrict the rate of tumour growth, increase responsiveness to chemotherapy and possibly even prevent the formation of solid tumours.

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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Results of a recent study have indicated that drinking four cups of coffee a day can result in a 40% decrease in the risk of developing mouth and throat cancers.There was no effect observed at three cups a day, with the effect of decaffeinated coffee also considered to be statistically insignificant.

The Medical College of Georgia School of Dentistry has reported that black tea may contain more fluoride than previously thought.

The results come after researchers came across patients with advanced skeletal fluorosis; characterised by joint and bone pain and damage due to excessive consumption of black tea.

However, the patients had all consumed between one and two gallons of packaged black tea daily over 10 to 30 years.

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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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