101020_FD_Issue 195

functionaldrinks zenithinternational newsletter This issue at a glance...

Pages six and seven Oat fibre boasts multiple benefits

Page two Calcium + yogurt = healthy bones

Page three Energy shot has Chile buzzing

Page four Celsius gets claims approved

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Issue 195

energy drinks

North America

Leading energy drink shows the way to a healthier lifestyle Montreal-based GURU Beverage Inc has expanded its portfolio of energy drinks with a new, 100% natural and certified organic variant.

environmentally friendly manner, as the company believes that organic agriculture optimises the health, productivity and interdependence of the earth, plants, animals and people.

The drink's name, according to GURU, reflects the new variant's origins, namely through online comments and discussions through facebook, and GURU's corporate blog.The company says it realised that consumers were looking for healthier alternatives, giving birth to the 2.0 concept.

Another factor to emerge from the company's dialogue with consumers, was the demand for a drink that had a familiar taste to allow consumers to make the transition to a healthy product without having to sacrifice taste.The result is a drink that closely resembles the small berry flavour of "classic" or traditional energy drinks.

GURU 2.0, as the latest addition has been named, offers the recognisable 'Extreme Taste' of traditional energy drinks so that energy drink fans can now choose a healthier alternative without having to forgo the familiar taste. Co-founder of GURU, Ray Jolicoeur, commented, "True to our pro-health ideal, we are proud to introduce a product with a well-known taste that can smooth the transition to a healthier lifestyle and one that is better for the environment."

In line with GURU Original and GURU Lite, GURU 2.0 is targeted at health-conscious adults who want to perform at their best but are also conscious of the relationship between what they eat and the effects of nutrition habits. GURU fans are described as being men and women, students, professionals, artists, early risers, night owls or other workers.

GURU 2.0 features an active botanical complex consisting of a proprietary blend of guarana seed, panax ginseng root, gingko biloba leaf and Echinacea flower extracts. In addition, the drink is free from preservatives, artificial ingredients and taurine.

According to the company, the aim was to develop an even healthier energy drink made in a more

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GURU is available in 250ml cans at a recommended retail price (RRP) of C$1.99-2.99 per can and will join the other two GURU variants in stores across North America and online through the company's website and at www.amazon.com.

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functionaldrinks zenithinternational newsletter Page 2 Issue 195 20 October 2010

editorial comment Welcome to the 195th issue of functionaldrinks. Echoing the situation in Europe of increased government intervention with regards to health claims, US beverage manufacturers have expressed their concerns at the recently-held NACS Show in Atlanta, Georgia, over companies making fraudulent or un-approved health claims.

As a result of EFSA and FDA, in Europe and the US respectively, becoming more active in the functional arena, obtaining health claim approval has become the ultimate goal, particularly for emerging ingredients and categories. One ingredient that has gained approval by both regulators has been recently launched to market, thanks to years of R&D by Biovelop AB (see Pages 6 and 7).

We also report on the decision made by the National Advertising Division (NAD) on the health claims made by Celsius Holdings for its calorie-burning beverage (see Page 4).

Europe, researchers continue to make progress as seen in Spain, where a group of scientists have developed a process to produce red wine that is high in resveratrol (see Page 4). In Mexico, we report on the results of continued research into the properties of algae which could see its inclusion into several foods to infuse them with important nutrients (see Page 5).

In Argentina, we look at the latest launch by La Serenísima in the form of a range of calciumenriched yogurts just for women (see below).

Nearby in Chile, Viva Beverages has made its entry into the market with its famed energy shot (see Page 3).

Over in the US, we see the introduction of a range of energy drinks that help support mental performance by V-Labs (see Page 6) as well as the unveiling of premium protein-rich drinks by EB Performance (see Page 5).

Canadian GURU Beverage Inc has just launched an organic and all-natural energy drink for those wishing to make the switch to healthier energy drinks (see Page 1). And in the UK, CocaCola Enterprises (CCE) has added the country's first calorie-free sports drink in time for the 2012 Olympics (see Page 3).

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

Whilst changes in regulation are underway in

functional dairy

Argentina

Yogurts with a calcium boost

offer a low calorie option, with each pack providing between just 60 and 70 calories depending on the variant.

La Serenísima, Groupe Danone's Argentinean subsidiary, has recently added a new range of calciumenriched yogurts.

The new yogurts were launched under the brand umbrella Ser and have been aptly named Ser Calci+. The line-up consists of peach and strawberry 190g drinking yogurts and 125g spoonable yogurts in peach, apple, strawberry and pear-grape. One bottle or pot of Ser Calci+ contains 500mg of calcium, providing consumers 50% of the recommended daily allowance (RDA) of the mineral. Furthermore, the yogurts

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The newly-launched yogurts are targeted at women of all ages who may be at risk of not consuming enough calcium on a daily basis.

Moreover, the company claims that 90% women do not meet their recommended daily intakes of calcium, which puts them at risk of developing osteoporosis later in life.

To help promote the yogurts, La Serenísima has added an online tool that helps women calculate how much calcium they have consumed on any given day. In addition, TV ads are being aired featuring famous Argentinean actresses.

Ser Calci+ has been available across the country since September at all major retailers where other Ser and La Serenísima branded products are sold.

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functionaldrinks zenithinternational newsletter Page 3 Issue 195 20 October 2010

sports drinks

United Kingdom

Sports drink to replicate US success in the UK Coca-Cola Enterprises (CCE) has just introduced a sugar and calorie-free sports drink in the UK on the back of its success in the US. Powerade Zero is the first sports drink in the UK, it is claimed, that is calorie-free.The new drink is said to feature an advanced mineral system including sodium that hydrates the body without the energy of regular sports drinks.

The drink is available in Berry & Tropical and Red Fruits flavours and has already been chosen as the official drink for Team GB for the 2012 Olympics.

With the introduction of Powerade Zero, CCE aims to widen its appeal to men and women of all ages that currently do not drink sports drinks

due to their energy content. According to CCE, of the 1.8 billion sporting occasions a year, in 79% water is consumed and sports drinks only 15% and other beverages in the remainder.

Selena Taylor, CCE Trade Communications Manager, stated, "Out of the 79% who drink water, 52% reject sports drinks because of the high sugar and calorie content.The introduction of Powerade Zero solves this issue."

Powerade Zero has proved a big hit in the US, where it recorded US$181 million in sales since its launch two years ago, with CCE expecting similar success in the UK. To this end, the launch of Powerade Zero will be accompanied by a multi-million pound TV, press, outdoor, digital, sampling and activation in gyms campaign that debuted at the beginning of October. Heptathlete, Jessica Ennis, continues to be the official brand ambassador for Powerade.

The drink is available in 500ml bottles that retail for approximately ÂŁ1 apiece. Powerade Zero can already be found at all major retailers as well as online through internet retailers such as Ocado. www.powerade.com

energy drinks

Chile

Energy shot enjoys rapid international expansion

of last year, where sales are already estimated to have reached 1 million units per month, securing the brand around 70% of the UK energy shot market.The shot is supposedly the first such drink in the country to be free from sugar or stimulating herbs.

As part of its continued plans to expand the presence of Quick Energy, US-based Viva Beverages recently unveiled its energy shot onto the Chilean market.

As in other markets, Quick Energy is targeted at people with demanding jobs, students, sports enthusiasts and athletes and those who need a quick surge of energy without the subsequent crash.

According to the company, current global sales amount to around 55 million units per year and by the end of 2010,Viva Beverages expects to have entered an additional ten markets and see sales soar to 100 million units a year.

Launched in March 2010, Quick Energy is currently sold primarily through universities, gyms, drugstores and mini supermarkets among others.

According to Matthew Shiffman, CEO of Viva Beverages, the company is aiming to obtain a 25% share of the Chilean energy shot market within its first year.

Quick Energy is currently present in 23 countries across Europe and the Americas.

This latest expansion comes hot on the heals of the product's launch in the UK at the beginning

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http://www.slingshotpartyfuel.com/quicken ergy/cl/

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functionaldrinks zenithinternational newsletter Page 4 Issue 195 20 October 2010

enhanced beverages

Spain

Increasing the benefits of red wine The IFAPA, the Andalusian institute of fishing and agricultural research and development, has unveiled a red wine with a high resveratrol content.

The resveratrol-rich wine is made with grapes that have been treated with ultraviolet light.

During the fermentation process up to 60% of resveratrol is extracted from the grapes but researchers discovered that due to the nature of the flavonoids contained in wine, it is possible to increase their content by exposing

them to ultraviolet light.

Over the past three years, researchers at IFAPA experimented with different techniques to produce wine and improve the extraction and preservation of flavonoids, as well as the look and taste of the wine.

Nevertheless, in spite of the increased health benefits that resveratrol-rich wines offer, the researchers have pointed out that consumption of wine for its health benefits, particularly red wine, should be done in moderation.

The results of this study offer yet another reason to follow the diet associated with the French Paradox which involves regular yet moderate consumption of red wine.

SantĂŠ!

www.juntadeandalucia.es

nutraceuticals

United States

Calorie-burning drink's claims receive independent approval Hot off the press, Celsius Holdings has announced that the National Advertising Division (NAD) of the Council of Better Business Bureau (BBB) concluded that it provided adequate substantiation to support certain weight loss claims.

Nonetheless, NAD recommended that Celsius discontinue specific percentage claims, such as "78% greater fat loss" and "114% greater decrease in body fat," because they are based on the results of a single study and overstate the benefits achieved.

Despite some of the modifications Celsius has had and will have to make to the advertising claims linked to its calorie burning range, NAD's findings represent a victory for the company, especially in light of the criticisms made by the Center for Science in the Public Interest (CSPI) on Enviga.

The review conducted by NAD, the advertising industry's self-regulatory forum, is part of its ongoing monitoring programme in conjunction with NAD's initiative with the Council for Responsible Nutrition (CRN) designed to expand NAD's review of advertising claims for dietary supplements.

In detail, NAD determined that certain claims were indeed supported by Celsius Holdings' evidence, as long as those claims are presented in the context

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of advertising geared to people who exercise and made clear achieving the promised benefits of the drink requires exercise. NAD also found Celsius could support claims that referenced the taste of Celsius and the product's ingredients, as well as claims that Celsius supplementation results in "increased metabolism," "calorie burning," "fat loss," "decrease in body fat," "greater endurance performance" and "greater resistance to fatigue (increased energy)."

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Moreover, given that there is currently no legislative framework concerning health claims made on functional foods in the US, NAD's approval of most of the health claims made by Celsius signals to the industry that science-backed claims are necessary but that the process of substantiation does not necessarily need to be overly onerous.

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functionaldrinks zenithinternational newsletter Page 5 Issue 195 20 October 2010

ingredients

Mexico

Exploring the benefits of 'green' nutrition

antibiotic, antiviral, antifungal, antioxidant, anticarcinogenic, anticoagulant, hypoglycaemic and cholesterol-lowering properties.

Researchers from Mexico's Instituto PolitĂŠcnico Nacional (IPN) have developed different foodstuffs from algae that boast diverse health benefits.

The researchers decided to explore the potential applications of algae, which is rich in minerals, carbohydrates, fibre, and omega-3 and -6, in order to exploit its nutrients and derived health benefits.

Among the foods developed by IPN are soups, fishbased dishes, pastas, cakes, cookies and other snacks.According to Margarita Casas Valdez, who led the research project, the scientists successfully created a salty snack from an algae present along Mexico's coasts that is rich in essential amino acids, betacarotene, vitamins and omega-3 and -6.

In addition, Casas Valdez said that the algae studied can help reduce lipids, cholesterol, triglycerides and abdominal fat. Moreover, it has

The idea behind such a snack is for women who live along the coast to harvest the algae and boost not just their economic circumstances but also enrich diets.

However, Casas Valdez warned that the project would need to overcome cultural obstacles, since unlike Asian countries, there is no history of consuming algae in Mexico, where traditionally it has been used in the production of fertilizers and additives for foods.

The project, which commenced 25 years ago, initially investigated the effect of algae supplementation in goats, sheep and poultry. From this, the researchers found out that hens fed with algae produced eggs with 26% less cholesterol.

Although there is no commercial product in the market yet, the near conclusion of the initiative will undoubtedly open up the doors to food and drink manufacturers wishing to produce healthier and more nutritious products, especially in light of the government's proposed crack down on obesity levels. www.ipn.mx

functional dairy

United States

New whey drinks outperform expectations

Whey protein is considered to be the highest quality form of protein and is rich in amino acids.

It has also been shown to aid weight management by promoting satiety and the feeling of fullness.

The beverages also contain calcium, iron, magnesium and zinc.

US-based EB Performance has recently unveiled two new wheybased beverages to add to its portfolio of protein-enriched products.

EB Performance co-founder, Dan Schapiro, commented, "We approached the Whey Juice beverages the same way we approached our snack line, products that are healthy and great-tasting.The final products far exceed our high expectations.

While other companies are just now entering the category, ours is truly the first delicious protein beverage with no artificial ingredients. Consumers at our in-store demos continually ask us how we were able to get a protein drink to not taste like a protein drink - it tastes very light and clean."

The two additions,Whey Juice and Whey Juice Skinny Premium Protein Beverages, offer consumers 15g of whey protein isolate and 3g of prebiotic fibre in each bottle.Whey Juice features low-glycaemic sweetener agave nectar whilst lowcalorie version,Whey Juice Skinny, is made with a proprietary blend of organic agave nectar and stevia. Both beverages are free from artificial sweeteners, colours and flavours, and preservatives.

Both variants are available in three flavours, Cranberry-Apple-Acai, Strawberry-BlueberryBanana and Orange-Peach-Mango, packaged in 500ml bottles and sold in Florida and Southwest regions of Whole Foods Market stores, and through the company's online store. Each 12-pack retails for US$29.95 www.ebperformance.com

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functionaldrinks zenithinternational newsletter Page 6 Issue 195 20 October 2010

energy drinks

United States

Energy drink for those who 'thinq' a lot V-Labs, a start-up based in Tennessee, has launched its first range of 'smart' energy drinks in four variants.

Under the brand name THiNQ, the company has created an energy drink that, rather than providing a big boost of energy that lasts for hours, is "designed to work with your body on a cellular level to awaken your mind, energize your body and exhilarate your spirit".

As such,THiNQ contains some ingredients that are not typically found in energy drinks such as GABA, L-tyrosine and CoQ10. It also contains alpha GPC, a natural choline compound found in the brain and milk, which is used as a supplement to enhance memory and cognition.THiNQ also features an ingredient called SAMe (pronounced Sammy), a molecule present in all living cells and

credited with among others regulating hormones and neurotransmitters.These ingredients help stimulate the brain and increase alertness, and are thus more commonly found in alertness and relaxation drinks.

On the energy front,THiNQ contains more common ingredients such as guarana, caffeine and vitamins B3, B6, B12 and D. Other ingredients to help the body function generally better are calcium, magnesium, potassium, sodium and gingko biloba.

THiNQ is targeted at adults in general who are looking for more energy to get through their daily activities as well as being more alert without consuming empty calories or crashing after a few hours.

THiNQ can be bought online and at all Vitamin Shoppe stores as well as through THiNQ's website.

THiNQ is available in Citricity and Mixed Berry variants and is packaged in 12oz alu-bottles. One case of 24 bottles retails for US$52.99. www.drinkthinq.com

ingredients

Sweden

Oat potential unveiled Swedish cereal ingredients specialist Biovelop AB has made available its proprietary beta glucan ingredient, PromOat, to beverage producers.

PromOat is a multi-functional ingredient that can be incorporated into a myriad of beverages thanks to being a taste- and colour-neutral soluble fibre ingredient.The ingredient is rich in oat beta glucan (35%) and differentiates itself from competing ingredients due to the fact that it contains no insoluble oat fibre or oat protein, which can compromise the flavour and aesthetics of finished beverages.

Set up in 2003, Biovelop AB has invested more than â‚Ź20 million into the research and development of PromOat, which includes the creation of a â‚Ź15 million state-of-the-art oat grain processing facility and patented chemicalfree separation process.

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PromOat enables drinks to provide or contribute to consumers' recommended daily intake of 3g of beta glucan, therefore allowing access to EFSA and FDA health claims linking oat beta glucans to maintenance of healthy blood cholesterol levels.

Moreover, PromOat's efficacy has already been trialled in fruit juices, smoothies, fermented milk drinks and energy drinks.

According to the company, PromOat can also help manufacturers make use of other widelyresearched health benefits linked to oats such as lowering blood pressure in people with hypertension, helping regulate blood sugar levels thanks to being low GI, promoting satiety and acting as a prebiotic. Apart from its health credentials, PromOat can be used for its technical functions such as acting as a texturant, stabilizer and viscosity modifier.

Professor Mark Lawther, who has been spearheading Biovelop's research and development into oat beta glucan commented, "Oats are now widely accepted by consumers for their health properties and are one of the few ingredients to have health claims approved by the FDA and EFSA. For this reason, I believe

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functionaldrinks zenithinternational newsletter Page 7 Issue 195 20 October 2010

ingredients

Sweden

(continued from Page 6) there will be fantastic growth opportunities for manufacturers looking to add the beneficial health properties of oats to drinks."

Lawther added, "In the past, most functional oat ingredients have drastically affected the taste and appearance of finished drinks, so

wider usage of oat beta glucans in the drinks sector has been limited. By being neutral in both taste and colour, as well as providing an indulgent, rounded mouth-feel to finished drink products, PromOat solves this problem and opens up scope for value-added, oat beta glucan drink products throughout the international drinks sector."

Biovelop will be showcasing PromOat at the Supply Side West Exhibition in Las Vegas between 20-22 October and at the Health Ingredients Europe and Natural Ingredients Exhibition that will take place from 16-18 November in Madrid.

www.promoat.com

soft drinks/dairy/water

Middle East

Middle East beverage congress With the theme 'Reaching new heights', the upcoming 4th Beverage Middle East (BevME) Congress at the One&Only Royal Mirage will be held in Dubai on 23-24 November 2010.

A two day event sponsored by CHR Hansen, the congress features a conference focusing on the significant potential for market growth across the region, workshops and a bottling plant tour to Nestlé Waters' new state-of-the art facility.

The conference programme includes regional market overviews from Zenith International

and Al Rabie Food; sessions on industry leadership from Nestlé Waters and Al Rawabi; the latest thinking on corporate social responsibility from Emirates Environmental Group; innovation case studies from NFPC, Barakat, Battery Energy Drink and XL Energy; consumer insights from TNS; briefing workshops from FoodBev Media and Design Bridge; and a supplier panel session on ingredients and packaging with speakers from CHR Hansen, Bericap and DSM. Early booking discounted rates are available until 21 October 2010. For further information, please contact the Zenith events team on +44 (0)1225 327900.

For full programme details and to book online, please visit www.zenithinternational.com/events

functionaldrinks in brief

Europe

Finland: Raisio, producer of Benecol probiotic brand, has reported a net sales increase of 22.6% during the second quarter of 2010 compared to a drop of 12.3% during the same period of 2009. Net sales reached €120 million thanks to the Raisio's acquisition of British company Glistgen and organic growth.

UK: GlaxoSmithKline (GSK) has reached two new deals to provide its sports drinks Lucozade

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to Arsenal and Liverpool football teams.The deals will run for the next three seasons.

North America

Canada: Canada Customs has rejected orders of Harcos Zombie and Blood Potion energy drinks due to their high caffeine content. Jenni Huang, spokeswoman of Harcos commented, "The Canadian Customs is very strict with caffeine products.They've rejected orders quite a few times."

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functionaldrinks zenithinternational newsletter Page 8 Issue 195 20 October 2010

functionaldrinks in brief US: The Center for Science in the Public Interest (CSPI) has said it will not appeal a federal appeals court decision that blocked a woman's lawsuit against The Coca-Cola Company (TCCC)owned Enviga.The Court of Appeals decision hinged on whether the plaintiff had documented her weight loss or gain, and not on CSPI's allegations about Enviga's deceptive claims.

Skinny Nutritional Corporation has reported a second quarter 2010 revenue rise of 89% to US$2.3 million, compared to the same period in 2009, boosted by record case sales. In the same period, however, the company incurred a net loss from operations of approximately US$2.1 million.

Canada Dry Bottling Company has signed a distribution agreement with Frontier Beverage Company for the distribution of Unwind in nine counties in the state of Michigan. According to Terry Harris, CEO of Frontier Beverage, the agreement marks the beginning of more distribution deals with Canada Dry across the country.

Cellutions LLC has announced that GNC, Circle K and other retailers have added Modjo Life Natural Energy shots to their portfolios.

The energy shots are caffeine-free and are made with natural flavours and other ingredients.The formulation was reportedly created after research from leading organizations such as The Mayo Clinic.

BRAT Diet has announced its eponymous beverages are available through Toys R' US and Babies R' US stores across the US. Sol Elixirs LLC has reported that its Solixir Botanical beverages are now available for sale at The Vitamin Shoppe stores across the US as well as through Vitamin Shoppe's website. The drinks are available in three variants: awaken, relax and restore.

functionaldrinks zenithinternational newsletter

Editor: Anya Hembrough Deputy Editor: Cecilia Martínez Núñez 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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According to research, penetration of energy drinks among adults aged 18 and over has remained flat at 15% between 2007 and 2009.

High prices, excessive caffeine and a general perception that energy drinks and shots are unhealthy have led consumers to avoid such drinks in the past three months. However, the research found that non-energy shot consumers would be encouraged to try them if free samples were offered at a store where they usually shop.

World

Dannon, Procter & Gamble, Danisco, Chr Hansen and Lallemand have agreed to sponsor an independently produced documentary on probiotics. Nevertheless, the producers of the movie have said they have 100% creative control and will remain rigorously objective about the information presented.The goal is to provide the documentary to TV stations around the world and to make the DVD available together with product sales at points of purchase in health food stores and even doctors' surgeries.

Australia: According to media reports, National Foods Managing Director, Andrew Reeves, has revealed plans for a major push into Australia's A$11 billion (€7.7 billion) nonalcoholic beverages market, using its distribution network to sell bottled water, energy drinks and flavoured tea.The move aims to improve margins and returns. Furthermore, it hopes this will reduce the company's exposure to volatile commodities as well as its reliance on major supermarket chains.

Zimbabwe: TCCC has entered the local energy drinks market with burn energy drink.

The beverage was launched thanks to TCCC's partnership with Coca-Cola East and Central Africa and local beverages group Delta Beverages.

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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