101102_FD_Issue 196

functionaldrinks zenithinternational newsletter This issue at a glance...

Page three Finns expand probiotics reach

Page six New shot shines in France

Page four New steel-strong energy shot

Page four New tea is healthy for the world

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Issue 196

3 November 2010

nutraceuticals

United States

New drink promises to be the best 'EVR' Preventive Beverages LLC has unveiled its newly redesigned and rebranded resveratrol-rich water.

Formerly known as Preventiv, the drinks have been renamed EVR (pronounced 'ever').

Although EVR has not been officially re-launched, the new format is already on sale in a number of stores in the Philadelphia area and its full launch will start in the first quarter of 2011 with key strategic accounts.

According to studies cited by Preventive Beverages, resveratrol may increase longevity and slow down ageing, enhance cardiovascular health and possibly even have cancer-preventing properties. functionaldrinks spoke to Brian Dilsheimer, Vice President Operations, who said that although the company has not started actively promoting the brand, it has seen strong sales where EVR is currently already on sale.

Dilsheimer added, "We believe that marketing support combined with our unique product will mean great movement once we launch."

Preventive Beverages' marketing plans for its waters include customising a marketing plan with each key account in order to maximise the wins for both bottler and retailer.

Dilsheimer revealed that the company will use a combination of public relations, price promotion, sampling, instore and localised advertising to generate awareness and incentivise trial.

EVR is targeted at active adults who are proactive about maintaining or improving their health.

Each bottle of EVR contains 30mg of resveratrol, equivalent to that contained in a case of red wine, according to the company, as well as 20% of the recommended daily amount (RDA) of vitamin E.

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functionaldrinks zenithinternational newsletter Page 2 Issue 196 3 November 2010

editorial comment Welcome to the 196th issue of functionaldrinks. Having attended the recent Functional Drinks Conference which took place alongside the 2010 World Juice Conference in Geneva in October, we cover the launch of Finnish dairy and probiotics specialist Valio's latest non-dairy probiotic drink, which was unveiled at the event (see Page 3). We'll be including a full round up of the latest news to come out of the conference in the next issue of functionaldrinks.

Meanwhile in France, with winter fast approaching, Danone has added a new variant to its already comprehensive portfolio of Actimel shot drinks in a bid to help consumers hang on to the last remnants of summer (see Page 6).

We cover the launch of a lactic acid fermented vegetable juice by Belgian fruit and vegetable processor Pajottenlander (see Page 6). Nearby, we report on German mineral water company Thüringer Waldquell Mineralbrunnen's first naturally coloured addition to its enhanced water portfolio (see Page 5).

In Spain, despite the fact that the energy drink market has performed less well, local confectionery manufacturer and distributor Migueláñez has added a locally created energy shot to its roster of products (see Page 4).

developments at Rising Beverage Company, the first being that it has secured further funding and support for its growth and the second that it has added a new sub-line of sports targeted beverages (see Page 5). Also expanding its portfolio is Guayaki, with an enhanced maté beverage to support immune health while retaining its Fair Trade credentials (see Page 4).

Still in the US, functionaldrinks spoke to the Vice President of Operations of Preventive Beverages LLC who told us that the company is preparing for the imminent re-launch of its resveratrol-rich drink featuring a new image and name (see Page 1).

Finally, Nestlé USA and Jamba Juice have again joined forces, this time to introduce in the near future a line of RTD juice-based energy drinks although other details have yet to be revealed (see Page 3).

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

In the US, we report on the doubly encouraging

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United States

(continued from Page 1) Distribution-wise, Dilsheimer explained that EVR is available across the US through the company's website at http.shop.drinkever.com/ as well as ThirstMonger.com and Amazon.com.

Dilsheimer stated, "We expect retail visibility through natural food stores, upscale traditional grocery stores, select fitness centers and yoga studios, and places like GNC and Vitamin Shoppe."

the company's plans for the future and if it had any other products on the pipeline, to which Dilsheimer replied that a 2oz shot featuring a concentrated dose of resveratrol is currently under development that will complement the 16oz format.

EVR will carry a suggested retail price of US$1.99 for a 16oz bottle.

functionaldrinks also asked Dilsheimer about

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functionaldrinks zenithinternational newsletter Page 3 Issue 196 3 November 2010

energy drinks

United States

Companies exploit 'juicy' opportunity in energy drinks Jamba Juice, producer of smoothies, and Nestlé USA have announced the renewal of their partnership to launch a line of ready to drink (RTD) energy drinks.

Chairman, President and CEO of Jamba Juice, James White, commented on the partnership, "The Jamba brand name stands for better-for-you, great taste, and high quality - attributes we share in common with Nestlé USA.The development of these products is a reflection of the extraordinary partnership and commitment to excellence that exists between our two companies."

The drinks will be launched under the Nestlé Jamba All-Natural name and will be available in three variants: pomegranate-blueberry, strawberry-banana and crisp apple.The drinks will contain 70% real fruit juice and 80mg of natural caffeine. Each serving will provide 90 calories and will be free from preservatives, artificial flavours, fat or high fructose corn syrup.

Rob Case, President of Nestlé Beverage Division, stated, "Nestle Jamba All-Natural Energy Drinks will allow retailers to capitalize on the growing trend of consumers seeking more health-oriented, fruit-based natural beverages that provide quick energy without all the artificial ingredients."

According to the companies, Nestlé Jamba AllNatural Energy Drinks will be launched at the beginning of 2011 in the North Eastern US; however they have not disclosed any details of the packaging nor whether the drinks will be sold exclusively through Jamba Juice outlets or through other retailers as well. www.jambajuice.com www.nestleusa.com

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Finland

Finnish company's continued innovation Finnish dairy and probiotics specialist Valio presented its new shot, combining fruit juice and Valio's proprietary strain Lactobacillus GG, at the recent Functional Drinks Conference in Geneva, Switzerland.

Valio pioneered the probiotics market in Finland in 1990 and has since expanded its offerings to cater to all consumers and tastes.

In fact,Valio has been producing dairy probiotic shots under the Valio Gefilus and Kidius Gefilus brand names since 1999 and 2004 respectively.

Valio's latest probiotic drink is targeted at consumers who, for whatever reason, choose not to consume dairy probiotic shots or who are not able to consume dairy products.

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Moreover, it can be consumed by young and old alike.Valio Gefilus fruitshot contains, as do the other products under the Gefilus brand umbrella, the Lactobacillus rhamnosus GG strain, which strengthens immunity; it also features vitamin D. The new fruit-based probiotic drink joins an existing non-dairy juice drink, also marketed under the Valio Gefilus brand, which has been sold in 1 litre cartons since 1997. functionaldrinks spoke to Valio's Export Manager, Kalle Leporanta, who indicated that whilst still in itsearly days, the shot performed as expected in the first month after its launch, an encouraging sign for its future.

Valio Gefilus fruitshot is currently being promoted through TV advertising as the latest novelty under the Valio Gefilus range.

Also presented at the Functional Drinks Conference was Valio's new Valio Viilis branded fermented milk which also features the Gefilus strain.

Valio Gefilus fruitshot has been available in Finland since 2010 and is sold at retail outlets across the country.

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enhanced beverages

United States

Peachy new addition to yerba maté range

adaptogenic herbs which help the body cope better with stress.

Currently only available in peach flavour, Guayaki Pure Body contains organic peach juice concentrate and peach flavour.The drink is then sweetened using organic cane sugar. It contains only 40 calories and 40mg of caffeine per serving.

Guayaki, US producer and distributor of yerba maté, has added a new beverage to its portfolio of US Fair Trade certified beverages.

The drink is sold through a range of retail outlets where other Guayaki branded products are sold including Whole Foods as well as online through the company's website, amazon.com and other health food stores.

The new maté drink is called Guayaki Pure Body Peach Immune Support Blend and has been enhanced with organic immuneboosting herbs such as schizandra berry, astragalus and echinacea.

Both schizandra and astragalus have been used together with ginseng and other herbs in traditional Chinese medicine to restore the immune system and also as

Guayaki Pure Body Peach Immune Support Blend is available in 16oz glass bottles and retails for US$2.49 each or US$39.99 for a case of twelve. www.guayaki.com

energy drinks

Spain

New energy shot aims to buck market slump Spanish confectionery manufacturer and distributor Migueláñez has announced it has commenced distributing the latest functional drink developed by Río Marketing, signalling the former's first foray into the beverages industry.

The drink, called Acero, is an energy shot packaged in 60ml bottles, featuring standard energy drink ingredients combined into a traditional energy drink flavour.

Acero will be distributed through a range of retailers including super and hypermarkets, convenience stores and petrol stations, in specially created point of sale display units of six and twelve bottles.

between both companies, Migueláñez will aim to place Acero across the entire Iberian peninsula.

Acero is just one of the latest energy drink launches in the country; Coca-Cola España launched Burn Shot in June 2010 and Burn con Zumo energy drink in 2009; Grupo Osborne recently introduced Monster; Energizer Brands' Attitude arrived from the UK and Tonino Lamborghini has also added Spain to its list of countries where its eponymous energy drink is present.

It comes as a surprise then to find out that in Spain energy drink sales dropped considerably in 2009 compared to growth of over 12% seen a few years earlier. In 2009 the category dropped 11%, particularly hit by a drop in consumption through the horeca channel, to reach 55.3 million litres in annual sales.

Category leader Red Bull also experienced a sharp drop in sales, down 15.8% representing 21 million fewer cans sold, bringing the total to 111 million cans in 2009. Nevertheless, Red Bull successfully maintained its leading share which is estimated at 50% of the total market, with a 51% to 55% share of the horeca channel.

Under the distribution agreement reached

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functionaldrinks zenithinternational newsletter Page 5 Issue 196 3 November 2010

enriched beverages

Germany

Colourful addition activates wellness range

thereby boosting immunity.

The launch has been supported through promotional activities such as outdoor advertising, the Internet, PR, billboards and underground displays, product labelling and cash desk display boxes.

German mineral water company Thüringer Waldquell Mineralbrunnen has added the first coloured addition to its enhanced water portfolio.

The unveiling took place on a regional level across Saxony and Thuringia in September 2010, covering warehouse outlets, specialist beverage retailers, supermarkets and convenience stores.

Called Thüringer Waldquell Activity, the latest proposition contains natural fruit flavourings from pomegranate and cranberry, used for their deep red hue when combined, as well as for their vitamin C content, which helps to protect the body against cell damage,

Available in 1.5 litre bottle sixpacks,Thüringer Waldquell's new Activity addition has a suggested retail price of €6.49 plus deposit. www.twq.de

enhanced beverages

United States

Vitamin drinks have their own 'rising' star Rising Beverage Company (RBC), which launched Activate Water in the US at the beginning of 2010, has announced it has received further funding to expand the beverage range's distribution footprint.

Reportedly, RBC raised over US$6 million in financing and secured equity commitments for an additional US$15 million from a group of investors led by Tata Global Beverages and experienced beverages investor James Berkeley, who was among the original investors and promoters of Glacéau vitaminwater.

As part of Tata's investment in RBC, it will obtain a seat on the Board of Directors and has the option of raising its stake in the company over the next twelve months.

Dan Holland, President of Activate commented, "We are thrilled to have found a partner in Tata, a true global powerhouse that has had a significant presence in the North American market for over

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60 years.Activate will not only benefit from the major investment and overall commitment to the company but also from Tata's deep expertise in the beverage industry and the solid infrastructure they have built along the way."

The original Activate range comprises four variants: Antioxidant (berry), Energy (lemon-lime), Immunity (orange) and Vitamin (fruit punch).As the name suggests, each variant contains different vitamins according to each benefit.

However, unlike other vitamin-enriched drinks, Activate features a patented cap technology which protects vitamins from degradation by keeping them dry and separate from the water until the point of consumption.

Furthermore, in August 2010, the company unveiled four new variants designed to be consumed during or after exercise - aptly named Workout.The Workout addition is available in Grape, Passion Fruit, Pink Grapefruit ad Lime varieties.All variants contain 110mg of electrolytes, 175mg of essential amino acids and 500% of the recommended daily amount (RDA) of vitamin C with only 5 calories per bottle as the entire Activate range is sweetened with stevia.

Activate is available through a wide range of convenience outlets, hotels, health and fitness centres and petrol stations as well as online through the company's website.

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functional dairy

France

Yogurt drink actively targets child health Danone has recently expanded its already extensive range of drinking yogurts with a new summerinspired variant.

The new apricot flavoured Actimel variant contains, as with the rest of the range, the L.casei strain and vitamins B6 and D.

The addition joins the range not long after the European Food Safety Authority (EFSA) rejected all probiotic claims submitted to date - with both Danone and Yakult withdrawing their claims as their products remain to be assessed.

However despite the current setbacks, Danone is betting on the product's eventual approval and is marketing the Actimel range at children as well as adults.To this end, packs of the new Actimel flavour come with a gadget from the ActitrĂŠsor competition characters.

The ActitrĂŠsor competition is composed of a website where consumers can enter and play a game to get the chance to win ten game consoles. In order to be able to win, consumers need to play the game through the ActitrĂŠsor and complete all four levels.

Actimel Apricot is available in bottles of 100g and sold in six-packs.

www.actimel.fr www.actitresor.fr

enriched beverages

Belgium

Vegetable blend with cleansing properties Almost a year in the making, Belgian fruit and vegetable processor Pajottenlander has launched a new lactic acid fermented vegetable juice, offering consumers a host of health benefits.

The striking fuchsiacoloured drink, called Vitality Drink, features a blend of vegetable juices, including carrot, red beetroot, celery, potato, sauerkraut, fennel and radish.The drink's composition is based on a recipe from Austrian natural doctor, Rudolf Breuss, who is well-known for his juice cures in cancer and leukaemia cases.

harvesting, lactic acid bacteria is added to the freshly squeezed juices, which, through the fermentation of carbohydrates naturally present in the vegetables, leads to increased levels of the two forms of lactic acid, namely right- and leftturning lactic acid.The resulting drink is rich in right-turning lactic acid, which is similar to the lactic acid available in the body, and consequently easily absorbed. Lactic acid is widely recognised as a natural and healthy preservative, promoting the body's own natural resistance and slowing the growth of harmful bacteria.

Whilst the health benefits are clear, however, there is still considerable work ahead to convince consumers to change old habits. According to Pajottenlander's Linda Plessers, who spoke to functionaldrinks, "We think a (very) small number of consumers are concerned by health and wellbeing and how this is linked to what they drink and eat - and also live accordingly.To the contrary, lots of people are interested in health and wellbeing, but purely at an intellectual level, which does not extend to the reality - or daily life.They don't really want to change their habits.

All too often they consider health products as consumer products, to consume on a supplementary basis to their normal consumption. Most people opt for an easy life (continued on Page 7)

Immediately after

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enriched beverages

Belgium

(continued from Page 6) and fast food." She added, "Health awareness is growing, but people are flooded by product publicity and advertising.There is a real need for good, reliable and neutral information."

Vitality Juice is promoted as a juice blend that provides a wealth of essential minerals and vitamins which can be easily digested and

provides a cleansing action to the body.The company recommends drinking one glass of Vitality Juice a day to promote good health.

Vitality juice was unveiled in spring 2010 and is available in 750ml glass bottles, with a recommended retail price of â‚Ź2.45 apiece. It is currently available through outlets across the Benelux region and the north of France. www.pajottenlander.be

functional drinks

World

Announcing the Beverage Innovation functionaldrinks Awards 2011 Following years of success with the Beverage Innovation Awards and this year's InterBev 2010 Beverage Innovation Awards, we are now focusing on the fastest moving beverage category with the Beverage Innovation

functionaldrinks Awards.

FoodBev Media's Beverage Innovation magazine is partnering with Zenith International's functionaldrinks newsletter to reward innovation and excellence in six growth categories, delivering 24 separate awards from drinks and shots to ingredients, packaging and marketing.

Entry is open to products and initiatives launched since 1 September 2009. Entries close on 28 February 2011, so enter now.

Finalists and winners will be presented at the InnoBev Global Beverages Summit in Washington, DC, USA, on 30 March 2011.

For more information, visit www.beverageawards.com

functionaldrinks in brief

Europe

As a result of EFSA's rejection of article 13.1 general CLA health claims, Lipid Nutrition has announced it has submitted a dossier to the authority under article 13.5 for its Clarinolbranded CLA in the hope of obtaining approval for its claims.

Italy: Sorgente Tione has linked up with railway company Trenitalia for the distribution of its Aqua Therapy branded functional mineral water-based drinks, targeted exclusively at women.The initiative saw the drinks given out

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free every Saturday throughout October when the Freccia Rosa high speed train dedicated to women was circulating.

UK: Results of a clinical trial suggest drinking an isotonic sports drink could directly increase the stamina of teenagers during exercise. In the experiment, conducted at the University of Edinburgh, teenagers who drank the isotonic solution were able to run for 25% longer than those who were not given the drink.

North America

US: The US FDA has sent a letter to Dr Pepper

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functionaldrinks in brief Snapple Group (DPSG) with regards to the wording used in its Canada Dry Sparkling Green Tea Ginger Ale. FDA claims the drink is misbranded because the product label improperly used to word 'enhanced' relating to antioxidants from green tea. FDA has also sent a letter to Unilever for improperly promoting Lipton green tea as a drug; the promotion cited studies that claim tea lowers cholesterol.

PepsiCo has announced distribution of Gatorade in the US will be done by direct store delivery rather than through warehousing.

Massimo D'Amore, CEO of PepsiCo Beverages Americas, stated, "We remain dedicated to the existing warehouse distribution system for some of our beverage products, but the change to direct store delivery makes sense for Gatorade as we redefine the sports nutrition category through the G Series [brand]."

US-based Martek Biosciences Corporation has reported third quarter 2010 revenue increased 51% to US$117.2 million from the same period in 2009. CEO Steve Dubin, commented on the results, "Martek's strong third quarter results reflect another good quarter for DHA and ARA sales to our infant formula customers, another record quarter of DHA sales in non-infant formula markets, strong sales of Amerifit's consumer branded products and improved gross margins."

It has emerged that Innovative Beverage Group Holdings and Dewmar International Brand Management Company, producers of Drank and Lean relaxation drinks respectively, have filed lawsuits against each other.The suits arose from the period before Dewmar International was set up and its beverage, Lean, was developed as its founder Marco Moran was the master distributor of Drank. Both companies claim the other company violated distribution rights and feature accusations of fraud and breach of contract.

with Blue Coast Beverages to expand the brand's retail footprint in New Hampshire, Massachusetts, Connecticut and Rhode Island.

Ahead of completion of the acquisition by The Coca-Cola Company (TCCC) of its North American bottlers, Coca-Cola executives have met in Atlanta to lay out the strategy of the two newly formed units, namely Coca-Cola North America (CCNA) to be led by Sandy Douglas and Coca-Cola Refreshments (CCR) led by Steve Cahillane.The theme of the meeting was 'Full Speed Ahead'.

According to data covering the first half of 2010, sports drinks volume sales were up 6.3% with the Gatorade umbrella brand seeing improved performance compared to the previous year with average growth of 2.4% - of which regular Gatorade saw a decrease of 0.8% whereas G2 rose 19.7% - but still behind Powerade at 16.8% and private label at an astonishing 60.5%.

The creator of Fuze, Lance Collins, revealed he is working on developing a new line of functional beverages after selling the first company to TCCC. Although he did not offer any details, Collins said that the name of the new drink will imply protection, power and strength. Collins added that the line should be ready for public view by November 2010.

World

According to a global study conducted by Ipsos Marketing, consumer interest in functional food and beverages is greater than or similar to interest in supplements that provide the same health and wellness benefits. Moreover, consumer interest was strongest in products that offer better digestive health, increased energy, weight loss and healthy blood sugar levels. Lauren Demar, CEO, added, "The data suggests that consumers are most interested in health and wellness products in which there is already an established connection between the product and the benefit."

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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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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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