101007_FD_Issue 194

functionaldrinks zenithinternational newsletter This issue at a glance...

Page six Research explores benefits of tea

Page three Ingredient reaches new horizons

Page seven Energy bubbles up in Brazil

Page three Small yet powerful shot in the US

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Issue 194

nutraceuticals

United States

Drink provides security against food and drink excesses Security Beverages Company is on the brink of introducing the famed anti-hangover drink Security Feel Better in the US.

Leonardo Freitas, Managing Director for Security Beverages Company, commented, "We are planning on capitalizing and growing the evergrowing public interest in non-alcoholic beverages with innovative 'shot' packaging formats, thus targeting a sophisticated consumer base that will enjoy Security Feel Better as a digestive aid after heavy meals and drinking."

The digestive drink is the result of six years of research and its formula is designed to stimulate the digestive system helping eliminate food and drink faster. It also helps eliminate toxins faster thus helping prevent hangovers.The drink contains several herbs, with the most important being artichoke, a hepatoprotector that protects the liver from damage and stimulates liver cells renewal.

The natural digestive drink is made from plant and herbal extracts, and has been around since 1996, when it was first launched in France amid some controversy about the drink's purported benefits. Nonetheless, well over ten years on, it has expanded its presence and is now available in more than 22 countries.

The benefits of a bottle of Security Feel Better can be felt within just 45 minutes after consumption and, taken before going to bed, it also helps prevent hangovers.

October 2010 marks the official launch date in the US, after which Security Beverages Company will start a nationwide marketing campaign to raise awareness of the brand and the drink's benefits.The marketing campaign will make use of public relations and social media as its main tools.

Produced in France, Security Feel Better is currently exported to Argentina, Chile, Costa Rica, Paraguay, Uruguay, Peru, Bolivia, Brazil and now the US amongst others.

Security Feel Better will be on sale for US$5.99 per 30ml bottle at various retailers and online through the company's website.

Security Feel Better will be positioned as a sophisticated drink for affluent consumers who are concerned about digestive health. As such, the company has said the drink is targeted at both male and female adults between the ages of 21 and 50, be it 'party people' or business men and women.

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functionaldrinks zenithinternational newsletter Page 2 Issue 194 7 October 2010

editorial comment Welcome to the 194th issue of functionaldrinks.As with other categories, but particularly so in the functional arena, of the many new product launches, only a few actually succeed and go on to carve out their own share of the market. In this issue we review just some of those beverages that can claim not only to have a share of the market but to also be continuing to expand, be it regionally or in terms of product portfolio.

First, we cover the new powdered mix drink launched by Joint Juice Inc, which offers yet another way to cover a person's daily needs of joint-friendly nutrients (see Page 5). Also in the US, Security Beverages Company has officially introduced the famed digestive drink which is already available in over 20 countries (see Page 1).

Elsewhere, ingredients specialist Beneo-Orafti has partnered with a Spanish retailer and a Panamanian dairy to extend the use of one of its fibre ingredients thanks to its labelling programme to help consumers identify Beneo's ingredients on products (see Page 3).

Back in Europe, we follow up on the progress made by German-born Berry.EN with its eponymous energy drink (see below) as well as looking at three new energy drinks recently launched by Polish herbal products manufacturer Herbapol Lublin (see Page 4).

In the UK, we see the launch of a three-strong range of omega-3 rich drinks by IQ Brands which promise to appeal to women and children alike (see Page 4).We also report on the latest research conducted by the Tea Advisory Panel (TAP), which suggests that tea can make a valid contribution to our daily hydration requirements (see Page 6).

In Brazil, we cover the launch of a value-positioned energy drink, reportedly a first, by soft drinks producer Refrigerantes Convenção (see Page 7). Finally, in the US Frontier Beverage Company has added a shot format to its original relaxation drink which claims to destroy all impediments to relaxation (see Page 3).

Also in the midst of expanding its presence is XL Energy which is rolling out another variant under its eponymous energy drink line in all the markets where it is present (see Page 5).

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

energy drinks

Germany

'B.EN'eficial drink proves popular In the short time since German producer Berry.EN unveiled its eponymous premium energy drink offering, the product's reach has been rapidly extended to the international stage.

Officially launched at the end of February at a party held in the city of Frankfurt, distribution of Berry.EN, or B.EN, has since been extended to Denmark and Austria.

B.EN features 100% natural ingredients with fruit juice accounting for 80% of its content.

B.EN boasts a blend of premium berries and plants that are rich in antioxidants as well as Palatinose, the low GI ingredient developed by Palatinit which is designed to provide beverages with "body" and improve sweetness.

In addition, the drink contains plant extracts such as green tea, guarana, maté, schizandra, ginseng and açaí. The 80% fruit juice content comprises acerola, apple, aronia, pear, blueberry, elderberry, pomegranate and grape juices. As such, B.EN not only helps increase energy levels but also provides a dose of vitamins and antioxidants.

B.EN is available in 250ml alu-bottles that can be bought through select outlets as well as online through the company's website. A 24pack retails online for €68.40. www.berryen.com

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functionaldrinks zenithinternational newsletter Page 3 Issue 194 7 October 2010

functional dairy

World

Ingredient labelling bears fruits aplenty Probiotics specialist BeneoOrafti, through its subsidiary Orafti Beneo España, has partnered with Spanish retailer group El Corte Inglés to launch a prebiotic drink in the country.

Under the diet brand umbrella Special Line, the retailer has added a chufa drink - chufa is also known as tiger nut and is used to make a milkylooking drink called horchata.The Special Line Bebida de Chufa features Beneo's patented oligofructose-enriched inulin, Orafti Synergy1.The drink comes in a 200ml carton and contains 30% of recommended daily allowance (RDA) of zinc and vitamins A, C and E. Special Line Bebida de Chufa is sold through El Corte Inglés and Hipercor super- and hypermarkets.

Communication Manager at Beneo-Orafti, commented on the launch, "We are delighted that big supermarket chains such as El Corte Inglés and Hipercor are acknowledging the value of a quality label such as Beneo."

With this launch, the number of products in Spain containing a Beneo-branded ingredient nears 50, including beverage and dairy companies such as Casty, Clesa and PepsiCo. In other company news, Beneo-Orafti can now also boast two new Beneo-containing products in Panama thanks to its collaboration with Panamanian dairy company Estrella Azul Industrias Lácteas.

The two new products are a low fat and a nonfat milk that are marketed as helping boost calcium absorption. In addition, the milks have been enriched with vitamins A, B1, C, D and E, ensuring that each 250ml serving provides 25% of the RDA of each vitamin.

Both milks are marketed under the brand name Vita Slim and will be promoted through a national TV campaign. www.beneo-orafti.com www.elcorteingles.es www.estrellaazul.net

Tim Van der Schraelen, Marketing

nutraceuticals

United States

Relaxation shot with knock-you-down ability Frontier Beverage Company, based in Memphis,Tennessee, has launched Bulldozer, a 3oz lowcalorie, low-sugar relaxation shot.

Bulldozer follows in the path of 12oz relaxation beverage Unwind, introduced by the company earlier this year.

Bulldozer contains a blend of B vitamins and antioxidant-rich açaí and berry juices combined with natural relaxation agents melatonin, rose hips and valerian root - ingredients known for their curative properties in coping with both anxiety and insomnia.

"We designed Bulldozer to be the most powerful relaxation aid on the market, with the goal of

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knocking out the effects of energy drinks, caffeine and daily stresses with only three ounces," said Terry Harris, CEO of Frontier Beverage Co. With a light tropical berry flavour and containing only 20 calories, the shot is said to be ideal for consuming before a long flight, after an evening workout or at any other time when you need a quick way to relax.

"Bulldozer is a great alternative for those who have sleep problems," added Harris. Insomnia is a growing problem in America; according to the American Sleep Foundation, more than 64 percent of Americans report that they have experienced sleep problems - an increase of more than 13% since 2001.

Frontier Beverage is using social media sites Twitter and Facebook to communicate product news, promotions and competitions for both its Unwind and Bulldozer products.

A 12-pack case of Bulldozer can be purchased via Frontier Beverage's website for US$37.99, and for a limited time, website visitors can order a free sample, paying only the cost of shipping.

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functionaldrinks zenithinternational newsletter Page 4 Issue 194 7 October 2010

enriched beverages

United Kingdom

Drinks offer smart choice for children and adults alike IQ Brands has recently pioneered the UK market of omega-3enriched drinks with a new line of beverages.

Based in Northern Ireland, IQ Brands spent two years researching and developing the drinks, which were finally launched at the end of May 2010.

The drinks are made with natural fruit juice and EPA and DHA omega-3. Each 250ml carton of Umego, as the drinks are called, provides 25% of the RDA of omega-3. In addition, Umego is sweetened with low GI sweetener FruitUp, from ingredients specialist Wild, as well as

being rich in vitamins B1, B3, B6, C and E. Nuala Breen, Sales and Marketing Director, commented on the use of FruitUp, "This means it releases energy slowly, thus helping inhibit snacking between meals. Umego is also free from artificial colourings, preservatives, additives or sweeteners, making it a really healthy choice for all the family - a clever drink for clever people!"

Although Umego can be consumed by all, its primary target audience is children aged 4 to 16 and women aged 21 to 39, especially those concerned about their health and wellbeing and also of that of their children.

According to IQ Brands, the drinks were developed in response to growing consumer concern and awareness of healthy eating habits and growing obesity levels, particularly among children. Despite the recession, these concerns are still very present in the UK, so it comes as no surprise that IQ Brands has recently secured the Umego's listing with three of the UK's leading fast food distributors: Friar's Pride, Henry Colbeck Ltd and The Middleton Group.

Umego is available in Orange, Apple and Blackcurrant variants. www.umego.co.uk

energy drinks

Poland

Natural alternative to artificial energy drinks Polish herbal products manufacturer Herbapol Lublin has introduced a threestrong line of energy drinks in its home market.

Under the brand name Green-Up, the drinks are reputedly the first in the country to feature only natural ingredients. GreenUp contains natural caffeine from guarana as its main energising ingredient (32mg per 100ml), fruit juice concentrates and sugar and is free from artificial preservatives, sweeteners or colours.

According to Herbapol, the new offerings are targeted at people who need an energy

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boost but who do not drink energy drinks due to their artificial taste or due to concerns about the use of artificial ingredients. Moreover, Herbapol describes the drinks as being delicious, fruity and having a refreshing taste.

To help promote the drink, the company has chosen Anna Rogowska, world champion and bronze Olympic medallist in pole vault, as its brand ambassador. Green-Up and Rogowska will be present at the 2012 Olympic Games in London, which the company has said is in line with its own ambitions, namely to become the leader in its field.

In addition, Paul Kawecki, Marketing Manager, said that the company believes Rogowska exemplifies the brand values of Green-Up: leading a healthy lifestyle, enjoying sport and finding joy in life.

The range is available in Pomegranate,Tropical (kiwi, pineapple and oranges) and Cranberry variants. Green-Up is packaged in 250ml slim cans and is best consumed when chilled.

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functionaldrinks zenithinternational newsletter Page 5 Issue 194 7 October 2010

energy drinks

World

Energy drink promises extra-large potential Poland's XL Energy has recently added a new flavour to its portfolio as part of its expansion process.

Originally launched in its native Poland in 2000, XL Energy was initially available only in Regular and Sugar Free variants. However, as it successfully entered new markets, the company introduced an energy shot and, most recently, a Cranberry variant.This latest innovation has generated positive feedback in all markets where the XL Energy brand is present - 10 countries in total - so much so that sales of this variant alone are now equal to 10% of volume sales of the Regular and Sugar Free variants.

As a result of the continued success of the brand and of the newest addition, XL Energy decided to formulate a Lime & Lemon variant, which the company describes as being "fresh and energetic."

XL Energy Lime & Lemon was introduced in its

native Poland in late spring 2010 and is currently being introduced to other markets.

The target market for the Lime & Lemon variant, as with the other products in the portfolio, includes young, active and fast-living men and women.

However, in the case of XL Energy Cranberry, women turned out to be the main target, especially choosing that flavour at horeca outlets.

Adam Mickiewicz, Brand Manager, said that the energy drinks category has been very dynamic in the past few years with many new brands entering the market. Mickiewicz also revealed that consumers have become highly educated in terms of the benefits and value of different energy drinks.

The company's willingness to respond to consumer needs, coupled with the success seen with the Cranberry energy drink, is what led the company to introduce a Lime & Lemon variant.

To support the launch, the company has introduced dedicated in store point of sale (POS) materials in all distribution channels, from traditional through to modern and horeca.

XL Energy retails for â‚Ź1 for a 250ml slim can through traditional trade. www.xl-energy.com

nutraceuticals

United States

Drink sports the right mix for joints

online sites, local radio stations in key markets, multiple in-store promotions and an extensive PR campaign to raise awareness of the importance of joint health.

Joint Juice Inc, producer of glucosamine and chondroitin supplements and drinks, has added another offering to its portfolio.

The drink mix, along with all other Joint Juice products, is targeted at all active adults who want to maintain their active lifestyles. All the products are safe to be consumed by those without joint discomfort, as a preventative measure, as well as by existing sufferers.

The launch of the new Blueberry Açai On-TheGo drink mix comes just four months after their signature Joint Juice Supplement Drink was reformulated. Joint Juice's latest drink mix was officially launched in July 2010 and combines a full day's supply of glucosamine, chondroitin, vitamin D3, calcium and antioxidants.

Each 5.83g sachet is intended to be combined with between 8 to 16.9oz of water, making a tasty drink with superior and fast-absorbing ingredients that are easier and more convenient to consume than hard-to-swallow pills.

To promote the new drink mix, Joint Juice has launched a national advertising campaign to support the product as well as the rest of the portfolio.The campaign includes a mix of national print titles,

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Since the launch of the drink mix, sales have reportedly increased thanks to distribution gains in both the food and drug channels. As for the future, Joint Juice has revealed that it will be launching a new joint health product that will make it even easier for consumers to obtain their daily supply of glucosamine.

The drink mix is available nationwide in the vitamin aisle at select grocery and drugstores, and online through the company's website and www.drugtsore.com. Joint Juice products are also available at numerous retailers throughout the country including Wal-Mart, Costco and Kroger.

A 7-pack carries a suggested retail price of US$5.99 and US$21.99 to US$24.99 for a 30-pack. www.jointjuice.com

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functionaldrinks zenithinternational newsletter Page 6 Issue 194 7 October 2010

wellness beverages

United Kingdom

Fancy a cuppa?

New research has boosted the health credentials of one of the world's most popular and yet humble drinks, tea.

Tea has long been recognised for its health benefits but, at the same time, it has also been widely blamed, along with other caffeinated drinks such as coffee and cola, for dehydrating the body through its diuretic properties.

However, new research from the Tea Advisory Panel (TAP) has shown that a cup of tea can be just as good as a glass of water at keeping our bodies hydrated.

The clinical study, carried out at Reading Scientific Services Limited, found that, contrary to popular belief, caffeinated drinks do not have a significant impact on the body's liquid levels, meaning that tea can make a hefty contribution to the daily recommended fluid intake. The trial's author, Dr Carrie Ruxton, commented, "This new study proves that there is absolutely no truth behind the theory that drinking tea can increase the risk of dehydration because of its caffeine content.

Drinking moderate amounts of tea (four mugs a day) offers the same hydration qualities as plain water and the study revealed that we do not urinate more after drinking tea."

In fact drinking just three cups of tea has been found to cut the risk of heart attack and stroke by 11% and 22% respectively. In addition the impact of caffeine on cognitive function has been linked to positive effects on mood, alertness, mental performance and alleviating stress whilst the flavonoids may even help promote blood flow around the brain, reducing the risk of developing chronic neurological condition, Parkinson's disease.

But the benefits of tea don't stop there! A number of studies have indicated that flavonoids could well help combat human cancer by inhibiting tumour growth and killing off cancer cells. To date, a number of studies have suggested that tea could minimise the risk of renal, and endometrial and skin cancers.

Meanwhile Dutch research carried out earlier in the year suggested that three cups of tea daily could reduce the risk of developing type 2 diabetes by as much as 42% thanks to the improved glucose metabolism and increased antiinflammatory and insulin activity.

Furthermore, the natural plant antioxidants found in tea, namely polyphenols and in particular flavonoid polyphenols, have been linked to a string of other healthboosting properties for moderate tea drinkers. Dr Catherine Hood from TAP commented, "A growing number of scientific studies have demonstrated that tea can be useful in keeping the body in good condition, thanks to its high polyphenol content.

These polyphenols have antioxidant effects and help maintain normal vascular function. This is why many studies have linked regular tea consumption with a lower risk of heart disease and stroke."

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Cashing in on the global popularity and health benefits of tea, there have been a number of new ready to drink (RTD) tea launches over recent months within the functional drinks arena, including Tone Tea in Spain, Pfanner Energy Ice Tea Guarana in Germany and The Relaxing Tea in the US. With such an impressive list of attributes, anyone for a cuppa?

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functionaldrinks zenithinternational newsletter Page 7 Issue 194 7 October 2010

energy drinks

Brazil

Drink adds fizz to the energy category São Paulo-based Refrigerantes Convenção, which produces both alcoholic and soft drinks, has introduced a new energy drink to capitalise on the continued explosive growth of the category.

Director of Refrigerantes Convenção, the company decided to launch a value-priced offering to make energy drinks affordable to more consumers, which to date have been considered a luxury product in the country.

Ferrari also said that as a result, the company expects to help bolster consumption of energy drinks, which lags behind that of Europe. Zenith International estimates that yearly per capita consumption in West Europe stood at 1.6 litres in 2009 whereas in Brazil this reached just 0.3 litres.

The launch of MSX is the latest step in an expansion project implemented

by Refrigerantes Convenção, which already produces and sells 64 beverages and expects to reach turnover worth R$400 million for 2010.

With the launch of MSX, as the new energy drink has been called, the company aims to tap into the energy drinks category which, according to Nielsen data, grew by 49% in 2009. In addition, the company intends specifically to target new consumer segments, with MSX positioned as a value offering.

MSX is targeted at young adults, sports enthusiasts, students, professionals and all consumers who need an extra dose of energy. In support of this, MSX is bottled in black plastic bottles that feature a pair of feline eyes, to represent nocturnal activity, and a tornado for energy. According to the company, both the use of a plastic bottle and the colour and design will no doubt make the energy drink stand out from its competitors.

According to Paulo Ferrari, Commercial

According to ABIR (Brazil's soft drinks industry association), Brazil produced approximately 60 million litres of energy drinks in 2009, a figure which is forecast to rise to around 83 million litres, equivalent to growth of 40%, by 2010. In 2009, the energy drinks market was estimated to have recorded sales worth R$556 million.

MSX is available in 350ml and 2 litre bottles that can be purchased at supermarkets, wholesalers, and convenience stores. MSX carries a recommended retail price (RRP) of R$5 and R$12.50 for the 350ml and 2 litre bottle respectively. www.refrigerantesconvencao.com.br

functionaldrinks in brief

Europe

van Doorn, Chairman of EHMP, stated "We feel that at this stage we have no other alternative but to take the Commission and EFSA to the European Ombudsman.We have exhausted all other appropriate avenues at this stage.We have been constructive and fair partners throughout the process and we have invested many hundreds of hours to try to ensure a fair outcome. Unfortunately we feel that our concerns have not been seriously considered."

The European Federation of Associations of Health Product Manufacturers (EHPM) has issued a complaint to the European Ombudsman regarding the EU's health claim legislation.The complaint is on the grounds that the current batch-wise approach is maladministration. Peter

Spain: As part of the growing demand for sugarfree, non-carbonated and energy shot drinks, Coca-Cola España has introduced several new products to complement its portfolio in the country.The most notable include the launch of Coke Zero without caffeine, Aquarius Libre, a

EFSA has published dates for a series of areaspecific health claim workshops that will begin with gut health and immunity on 2 December 2010.This will be followed by weight management/energy intake/satiety (February 2011), oxidative damage and cardiovascular health (May 2011), bone, joint and oral health and cognitive function (September 2011) and physical performance (February 2012).The workshops will be targeted at scientific experts.

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functionaldrinks zenithinternational newsletter Page 8 Issue 194 7 October 2010

functionaldrinks in brief sugar-free version of the still soft drink, and Burn Energy Shot, which has been successfully launched in several other European countries.

UK: GlaxoSmithKline (GSK)-owned Lucozade has partnered with Chelsea Football Club to become its official sports nutrition partner. Lucozade has been the official sports drink of the Premier League since its inception in 1992 and will replace PepsiCo's Gatorade as the club's drink.The deal has been signed for the next three seasons.

Retailer Marks & Spencer (M&S) has been criticised for launching a range of vitamin enhanced waters that resembles that of CocaCola's vitaminwater.The M&S Vitamin Water is available in Orange & Passionfruit and Cranberry & Raspberry variants. In addition to the similarity of the product name, the packaging design closely resembles that of vitaminwater's 500ml bottle.

Legal firm Halunen & Associates has posted a notice on its website accusing Kraft of possible deceptive and fraudulent labelling for its Crystal Light Immunity Diet Beverage which claims that vitamins A, C and E help maintain a healthy immune system. According to the firm, the amount of vitamins contained in the drink are too low to have a significant effect. Kraft has replied by stating that, "this beverage should be considered one source - but not the only source - of these important nutrients."

According to a study conducted by the Cherry Marketing Institute (CMI), the growing appeal of the superfruit phenomenon has meant that food innovators have been developing products containing fruit and are always on the lookout for new superfruits. As well as scientific backing, superfruits and nutrients need to be seen as healthy and flavourful by consumers in order to be successful.

Vibranz Beverages is claiming to be the first company to have successfully reformulated its kombucha tea product in line with the FDA's recommended alcohol content level of 0.5%, following a voluntary industry recall of kombucha tea products. In addition, the brand is the first to be sold again through Whole Foods supermarkets.

North America

US: Inspiration Beverage Company, manufacturer of Petey's Bing energy drink, has announced that Vitamin Shoppe stores will commence carrying the drink. Petey's Bing energy drink has been available in the state of Colorado since autumn 2009.

Yakult and Danone have handed out US$100,000 in grants, through the Global Probiotics Council, for research into the benefits of probiotics for irritable bowel syndrome (IBS) and the identification of new beneficial probiotic strains.The amount will be distributed in equal parts to two projects in the University of California, San Francisco, and at the University of North Carolina.This is the third consecutive year that the companies have given grants to young scientists.

functionaldrinks zenithinternational newsletter

Editor: Anya Hembrough Deputy Editor: Cecilia Martínez Núñez Contributors: Laura Knight Market Intelligence Director: Esther Renfrew functionaldrinks is issued 25 times a year and is only available by subscription: electronic PDF format only £495; hard copy and PDF £595* *VAT chargeable on electronic format to UK companies and EC companies not registered for VAT

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World

According to recent research, global consumption of omega-3 saw volume growth of 50% between 2004 and 2009. Inclusion of the fatty acid saw a rise of 10% in 2009 to 13,218 tons globally. North America currently represents 20% of the global market, with sales in the US alone projected to rise 43% by 2014.

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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