110118_FD_Issue 201

functionaldrinks zenithinternational newsletter This issue at a glance...

Page seven Travellers get drink to fly in comfort

Page six Novel flavours new in Germany

Page five German energising cola launched

Page four Drink forges ahead despite criticism

enhanced

X

Issue 201

nutraceuticals

18 January 2011

United Kingdom

Mellow mood spreads across the Atlantic

(POS) materials will be made available. In addition, a Marley-themed concert is scheduled to take place in 2011. Social media will also be engaged, all with the aim of informing consumers about the beverages as well as making them aware of the 1love charity the Marley family has in place.

Enco Products has recently launched Marley's Mellow Mood range of relaxation drinks in the UK.

By purchasing a Marley's Mellow Mood drink, consumers are helping support 1love, which aims to create Bob Marley's vision of hope and unity by supporting various charities around the world.

The drinks, marketed by Marley Beverage Company in the US, were first launched across the Atlantic in September 2010. In both countries, the line-up consists of two carbonated variants in Berry and Citrus packaged in 355ml slim cans and two still ready to drink (RTD) teas in PeachRaspberry-Passion Fruit Black Tea and Green Tea with Honey variants available in 473ml glass bottles.

Marley's Mellow Mood contain passion flower, hops, chamomile, valerian root, lemon balm and melatonin to reduce stress and relieve tension.

All four drinks are made with 100% natural ingredients.

The beverages are bottled by VIVA Beverages and were created in conjunction with the Marley family, who saw a growing need for a functional drink that through its branding and ingredients would appeal to people from all walks of life.

To market the drinks, a wide range of point of sale

new age

X

nutraceutical

X

Nyree Chambers, Marketing Manager at Enco Products, commented, "This is much more than a celebrity-led brand launch. Bob Marley is a global icon whose words and music changed the world and a figure to whom millions of consumers of all ages and ethnicities still relate today."

Chambers added, "Rising numbers of consumers are actively seeking authentic brands with which they can connect on a personal level.

Marley's Mellow Mood has real depth and substance and will engage people in a way that very few other brands can.

It's a powerful proposition for retailers looking for products that can really resonate with consumers."

The canned drinks carry a recommended retail price (RRP) of ÂŁ1.59 whilst the RTD teas carry an RRP of ÂŁ1.79 apiece.

energ y

www.marleybeverages.com X

spor ts

X

juice

X

dair y

functionaldrinks zenithinternational newsletter Page 2 Issue 201 18 January 2011

editorial comment Welcome to the 201st issue of functionaldrinks.The first two weeks of this year have been packed with new product launches from across a wide range of categories and countries.

Among the more unusual innovations, in the US Kraft has just introduced a threestrong range of gum designed to appeal to health-conscious consumers with added ingredients such as vitamin C, white tea and ginseng.

Although not outrightly functional, the line-up could pave the way for more complex health claims than the now well-established oral health benefit.

This issue we cover the launch also in the US of a new joint health shot by Joint Juice (see Page 5) and a coconut water-based recovery shot produced by AgroLabs (see Page 3).

In Mexico, Gatorade de México has added an ultra-portable powdered version of its eponymous sports drink so consumers can now rehydrate wherever they go (see below).

distributing Marley's Mellow Mood, which will no doubt benefit from being associated to the late reggae singer (see Page 1). On the other end of the spectrum, Play Beverages has started importing and distributing a US-born energy drink aimed at sexing up the on-trade channel (see Page 4).

In Germany we see the introduction of an energy cola that promises to change the soft drinks landscape in the country (see Page 5) as well as new beverages launched just in time for the holidays by True Fruits GmbH and Merziger (see Page 3).We also report on a new range of all-natural flavoured sour milks by ProBioTan GmbH which will be heading to other European countries soon (see Page 6).

We report on the latest developments of Outox's hangover buster drink, which after being pulled from French shelves and criticisms with regards to its efficacy, looks set on making its comeback (see Page 4).

Further afield, Australian ZAG Beverages has introduced its own energy drink in a bid to offer consumers a natural and healthy alternative (see Page 6) and in New Zealand, Peeld NZ has unveiled what it claims is the world's first beverage designed for consumption during air travel (see Page 7).

In the UK the alertness and relaxation category seems to be taking off, with yet another arrival from the US. Enco Products has commenced

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

sports drinks

Mexico

Thirst bites the dust!

original Gatorade formula, the powder version is available in Orange, LemonLime and Grape variants.

Gatorade de México has just expanded its already extensive line of sports drinks under the star brand Gatorade.

The new sub-range is packaged in individual sachets of 70g that make one litre of the sports drink.

Gatorade Polvo is already being sold through all major retailers as well as other health stores and fitness centres.

The latest addition comes in the form of a powdered version aimed at giving consumers even more convenience. Containing the

enhanced

X

new age

X

nutraceutical

www.gatorade.com.mx X

energ y

X

spor ts

X

juice

X

dair y

functionaldrinks zenithinternational newsletter Page 3 Issue 201 18 January 2011

sports/energy drinks

United States

New launch takes a shot at the coconut water market

blend comprising young coconut water concentrate, potassium citrate, guarana seed extract, green tea extract, caffeine, ginseng and vitamins B6 and B12.

The 3oz shot is said to be biologically pure and contains more potassium and less sodium and sugar than conventional sports and energy drinks.

With the launch of Coconut Water Recovery Shot, US liquid nutrition specialist AgroLabs has tapped into two key beverage trends coconut water and shotstyle drinks.

Coconut Water Recovery is the latest addition to AgroLabs’ burgeoning nutritional beverage portfolio which also includes recently introduced Peaceful Sleep and Wheat Grass Boost as well as a range of superfruit-based liquid supplements under the Naturally brand name.

Coconut Water Recovery Shot is marketed as being ideal to hydrate and nourish whenever the body feels rundown or for use as energy replenishment before or after exercise.

Packs of six and ten bottles retailing for US$16.49 and US$24.99 respectively, can be purchased from the company's website as well as drug stores and health food stores nationwide.

The drink includes electrolyte fortification and a proprietary energy

www.agrolabs.com

wellness/enriched beverages

Fruit juice gets ultra fresh this winter

Germany that they are left completely untreated and unpasteurised.As such, they are positioned as 'ultra fresh' juices, consisting of 100% fruit and free from preservatives, colouring and flavouring.

Without any added active ingredients, fruit juice, smoothies and juice drinks are not functional per se, but are increasingly regarded as a good way of ensuring an adequate daily intake of fruit and, in turn, contributing towards overall health.

Meanwhile in other German juice industry news, category specialist Merziger also ended 2010 with new, health-inspired launches with a number of ExtraPlus additions to its portfolio. Not only do the new offerings deliver extra iron, magnesium, calcium, folic acid and omega-3, depending on the variant, but they also bring new tastes as well as a new packaging design.

The ExtraPlus line comes in four versions: Calcium Magnesium (applegrape-pineapple flavoured); Iron (grape-apple-lemon); Folic Acid (pearorange-lychee) and Omega3 (orangepineapple-banana). All are available in a 1 litre Elopak format through retail as well as wholesalers. And, like other juices in Merziger's portfolio, all four variants are designed to address particular dietary deficiencies.

And pioneering the category in Germany is True Fruits GmbH which unveiled three new propositions in the run-up to the festive season: true fruits zwei (strawberry-orange), true fruits drei (raspberry-pear-apple) and true fruits vier (mango-acerola-applelime), all freshly pressed juices and each corresponding to the number of fruits they contain. Somewhat of a departure from the company's usual line of business in smoothies, the new juice offerings are also unconventional in

enhanced

X

new age

X

nutraceutical

X

energ y

www.truefruits.de www.merziger.de X

spor ts

X

juice

X

dair y

functionaldrinks zenithinternational newsletter Page 4 Issue 201 18 January 2011

nutraceuticals

France

Controversial drink's future hits rocky ground

the survey were deemed to be inconclusive since the reductions in blood alcohol levels were too small and inconsistent from person to person.

Since the launch of Outox (see Issue 190) in August last year, the drink, which was championed as a hangover buster, has been the source of considerable controversy and criticism. Core to the concerns over the drink was its claim to significantly reduce the amount of blood alcohol approximately one hour after having consumed an alcoholic drink.

However, despite the drink's producer's energetic defence of its efficacy, a complaint from the DGCCRF, the Government agency for consumer affairs, led the French food safety authority, Agence Nationale de Securité Sanitaire de l'Alimentation (ANSES), to carry out an investigation into the drink.

Evidence from an independent study commissioned by the company that it argued demonstrated that the high levels of fructose and vitamin C in the drink accelerated the lowering of blood alcohol levels, consequently preventing hangovers, was however rejected by the Agency at the end of October. According to ANSES the drink's composition was not specified and the methodology flawed. In addition, the results of

The agency's conclusion was that, "The claim regarding the product's ability to reduce blood alcohol levels is scientifically unfounded and therefore unacceptable." Furthermore, it stated that, "Within the context of risk prevention related to alcohol consumption, a claim mentioning a reduction in blood alcohol levels presents a risk that is highly likely to give consumers a false sense of security."

Nevertheless, Chairman and Managing Director of Outox, Maurice Penaruiz has vociferously rejected the Agency's findings, arguing that it had not actually tested the product itself and furthermore, it is not competent to make such a ruling on the product and that only the European Agency EFSA has authority in the matter. He added that the government had the wrong target in its sights, choosing to focus on a safety drink, rather than alcohol itself. He concluded that Outox had been made a scapegoat by state bodies and that the drink has only ever been marketed towards 'occasional drinkers' rather than those consuming excessive levels of alcohol.

But as the saying goes, no publicity is bad publicity, as the drink has reportedly been listed in a number of Leclerc and Intermarché outlets in Brittany, with further expansion across France expected.And crucially, retailing at between €2.99 and €3.99 per 250ml can, the brand is selling for at least twice that of Red Bull, making it a very attractive addition to retailers' portfolios! According to reports, Outox's Luxembourg manufacturer has two new flavour variants currently under development. www.outox.com

energy drinks

United Kingdom

Energy drink heats up the UK

ingredients ginseng root, guarana extract and damiana leaf with fruit and vanilla notes for a distinct taste.The energy drink is available in Regular and Sugar Free variants.

Play Beverages Holdings, which introduced Playboy energy drink to the US in 2008, has officially commenced its sale in the UK.

Both drinks are packaged in 25cl slim cans and feature the famous Playboy rabbit head, with the Regular variant carrying the logo in orange and the Sugar Free in blue.

The company held a launch party at the end of November, where it also unveiled that model Kelly Brook would be the brand ambassador in the country.

The two-strong range will be distributed through the on-trade, with the focus being on high end outlets such as clubs and bars in line with the drinks' premium positioning and the Playboy lifestyle.

Playboy energy drink lists among its active

enhanced

X

new age

X

nutraceutical

X

www.playboyenergydrink.co.uk

energ y

X

spor ts

X

juice

X

dair y

functionaldrinks zenithinternational newsletter Page 5 Issue 201 18 January 2011

energy drinks

Germany

Glacier-inspired soft drink refreshes new parts Positioned as the world's first organic offering of its kind, advertising agency KGM Markenkommunikation GmbH has introduced Gletscher Cola, which promises to bring a whole new dimension to the soft drink experience.

The clever combination of style, functionality and sustainability form the basis of the so-called groundbreaking launch, with the herbal drink based purely on fairly produced organic raw

materials, such as unrefined sugar. Also included in the formulation of the new refreshing drink is the natural ingredient guarana, which has for centuries been lauded for its energy-boosting properties and gives the cola its added kick.

Targeted at the party scene as well as those looking for a premium product based around health and sustainability, Gletscher Cola is packaged in a 330ml long-neck glass bottle and available in either 24 bottle returnable cases or 24 bottle recyclable carton formats.

KGM Markenkommunikation GmbH is said to be the first advertising agency to have achieved organic certification. Using this to help its clients redesign their brands or introduce new organically-oriented products, Gletscher Cola represents one of the first products to have been introduced to market by the agency directly. www.gletschercola.de www.k-g-m.com

nutraceuticals

United States

The easy way to joint health From January 2011, US consumers will have an even easier way to keep their joints healthy, with the launch of California-based Joint Juice's new Easy Shot liquid supplement.

Joint Juice Easy Shot is a fast-absorbing liquid which provides a full day's allowance of glucosamine (1,500mg) plus chondroitin and vitamins C and D3 to keep joints lubricated and supple.

Ritterbush, Easy Shot was developed in light of a study commissioned by the company earlier this year which indicated that consumers required a simpler joint health regime.The innovation has also been supported by recent research that suggests that over 87% of American adults have difficulty in swallowing large pills such as those typically available for glucosamine and chondroitin.

As such, Joint Juice Easy Shot is marketed as an effective, convenient pill alternative, ideal for active adults looking for a quicker way to maintain optimal joint health. It joins the existing Joint Juice range comprising an 8oz RTD supplement beverage, a powdered drink mix and performance water.

To support the launch, the company is undertaking extensive national media and PR activity, in-store programs and consumer promotions to drive awareness and trial of the supplement drink.

Quick and easy-to-use, one capful provides the recommended daily serving of 1 1/4oz. It can either be drunk straight from the cap or mixed into any beverage. Each 20oz bottle contains over two weeks worth of servings.

enhanced

X

Available in Citrus Natural flavour, Joint Juice Easy Shot contains no artificial colours or flavours and is naturally sweetened.

Joint Juice has already secured a distribution agreement with Walgreens for Easy Shot which will be sold in the vitamin aisle at stores nationwide. It will also be available to purchase online at the company’s website and drugstore.com.The suggested retail price is US$18.99 per bottle.

According to Joint Juice CEO David

www.jointjuice.com

new age

X

nutraceutical

X

energ y

X

spor ts

X

juice

X

dair y

functionaldrinks zenithinternational newsletter Page 6 Issue 201 18 January 2011

functional dairy

Germany

Probing new dairy opportunities Introduced to the German market in July this year, ProBioTan GmbH's all-natural flavoured sour milk,Tan, has so far proven to be a success amongst consumers.

Initially launched through retailers in the north of the country,Tan's availability is being extended throughout the country and also across Europe.

Available in three variants - natural, strawberry and dill (strawberry proving the most popular) the dairy drink is based on cow's milk, sour milk cultures and drinking water.

For the two flavoured versions, the company highlights the fact that these are achieved using 100% natural ingredients, making the unique proposition stand out from other products available on the market that feature added sugar, salt, artificial flavouring, colouring and preservatives.

Unveiled in a competitive dairy-based beverage market, ProBioTan uses its natural positioning and purity as Tan's key points of differentiation.

Based on 300 years of tradition within Caucasian cultures, the product is appreciated as a fountain of youth and an elixir for life, trusted also to prevent kidney and liver diseases, as well as supporting against allergies and aiding weight loss, cholesterol control and gastro-intestinal function.

Whilst currently only available in three alternatives,Tan's producer has solicited feedback from those that are keen consumers of the drink regarding additional flavours they would like to see, with plum-cinnamon, chocolate-almond, vanilla and marzipan all scoring highly.

In terms of its availability in North Germany where it was originally brought to market,Tan, packaged in a 500ml bottle, can be found in retail outlets in Buxtehude, Cadenberge, Cuxhaven, Elmshorn, Greifswald, Heide, Hemmoor, Hamburg-Bergedorf, Hamburg-Harburg, Itzehoe, Otterndorf, Prenzlau, Prisdorf, Ratzeburg, Rostock, Stade,Wilhelms-burg and Wismar.

www.probiotan.info

energy drinks

Australia

Stressed out Australians get natural relief

schizandra to help maintain and improve physical performance, mental alertness and manage fatigue to boost endurance.

Start-up company ZAG Beverages has launched OSKI Positive Energy Drinks to offer Australians a natural alternative to traditional caffeine and sugar-fuelled energy drinks.

ZAG beverages was formed by beverage industry stalwarts Ken Melia, one of the founders of Australian juice brand Nudie, together with former Castlemaine Perkins brewery chief executive Ken Freer.

OSKI drinks are positioned as 'better for you' as they contain no caffeine, no artificial stimulants or colours and little to no sugar. Instead they are made from natural ingredients including Ltheanine, siberian ginseng, ginkgo biloba and

enhanced

X

new age

X

nutraceutical

X

The energy drinks are semi-sparkling, with less than 47 calories per 250ml bottle.The two natural fruit flavours available are Orange Mango & Passion and Superberry.The Superberry variant contains no added sugar, whilst Orange Mango is sugar free.

"Up until now, the 'lift' in the day was achieved through caffeine and sugar.Through OSKI Positive Energy Drinks, we're giving them a natural choice that will help them make it through the day without feeling worried or guilty about what they're consuming," commented co-founder Ken Melia.

Awareness of these so-called 'Little Clever Drinks' is being achieved through sampling activity and sponsorship of local events in Queensland such as the Santa Fun Run. OSKI drinks are priced at between A$3.50 $4.00 per bottle.They are currently available in selected convenience stores throughout southeast Queensland, with plans for nationwide and potentially international, expansion in 2011.

energ y

www.oski.com.au X

spor ts

X

juice

X

dair y

functionaldrinks zenithinternational newsletter Page 7 Issue 201 18 January 2011

enriched beverages

New Zealand

The sky's the limit for new innovation Peeld NZ has unveiled what is claimed to be the world's first beverage designed solely for consumption during air travel.

and vitamin C. It also has no chemical sweeteners and contains only 60 calories per bottle.

Even the bottle is ergonomically designed with an optional clip that allows ease of storage on hand luggage or seat pocket.

According to Roger Boyd, the creator of 1ABOVE, "New Zealand's relative isolation means we fly great distances wherever we go, which the well-travelled know can take its toll if you don't take control of what you put into your body when you fly. By drinking 1ABOVE regularly throughout a flight you'll arrive hydrated with the right nutrients circulating to ensure you are in the best shape possible."

1ABOVE is described as an aerotonic beverage that addresses the hydration and nutrient requirements of the body during the rigours of flight travel.

Dehydration is one of the main causes of mental and physical travel fatigue, which can exacerbate jet-lag, dry out the body's natural mucus barriers against bacteria and impact circulation.

1ABOVE is also a member of 1% For the Planet, a group of companies that give 1% of their sales revenue to environmental causes every year.

The electrolyte-enhanced hypotonic formula for 1ABOVE took four years to develop and is designed to be rapidly absorbed by the body. It contains GRAPEFLO, a blend of natural polyphenol extracts which have been shown to support circulation, as well as B vitamins to combat fatigue

Launched in early December at Auckland International airport, 1ABOVE is currently sold exclusively to international travellers at the company's dedicated retail outlet. It retails for NZ$6.50 per one litre bottle. www.fly1above.com

functionaldrinks in brief

Europe

Red Bull across all channels.

Soya ingredient specialist Solae has revealed results of a consumer survey that suggest consumers see protein in its various forms as a key weight management nutrient.According to the survey, 75% of participants did not believe different sources of protein provided different benefits.

NattoPharma, producer of vitamin K2, has said it expects a cardiovascular health claim to get approval from the European Food Safety Authority (EFSA) towards the end of this year.

The vitamin has already received a positive bone health claim.

enhanced

X

Hungary: According to recently released retail data, sales of energy and sports drinks grew by 11% in value and 17% in volume in the ten months to September 2010 compared to the same period in 2009.Value sales totalled HUF 11 billion, of which sports drinks only represented HUF 300 million.

UK: Maxinutrition has partnered with UK Sport, a government agency responsible for the country's elite athletes, to develop and test products that could potentially be launched to the mass market.

The European Food Safety Authority (EFSA) has rejected the claim that Danone's Actimel could reduce the risk of diarrhoea. Danone said it would contest EFSA's position by submitting backing arguments to EFSA.

Playboy energy drink has announced that model Kelly Brook will be its new brand ambassador.

The energy drink will be launched through supermarkets at the beginning of 2011.

Croatia: Red Bull has signed an agreement with Atlantic Grupa for the distribution of Red Bull energy drink in the country.The Croatian producer and wholesale retailer will distribute

Powershot has been promoting in the trade press its range of organic energy drinks as well as its Mini PowerShot vials.The entire range is available through a range of retailers including

new age

X

nutraceutical

X

energ y

X

spor ts

X

juice

X

dair y

functionaldrinks zenithinternational newsletter Page 8 Issue 201 18 January 2011

functionaldrinks in brief Waitrose, Harrods, Holland & Barrett and other health stores.

Solution Sciences has announced that its 'pretox' drink Alibi is now available through Break motorway service outlets.

North America

US: Celsius Holdings has appointed Zenith International to support it in exploring potential capital strategic alternatives.The company has also established a new committee of directors and independent members of the board who will also evaluate strategic options as well as oversee the company's new operating plan.

Bebida Beverage Company (BeBevCo) has announced its relaxation drink Koma Unwind is now available in the state of Virginia through convenience store chain Slip In Food Marts.

In other company news, Brian Weber, BeBevCo's CEO, has said the company has seen significant interest from businesses in Europe in its relaxation drink.

PepsiCo and Catterton Partners have acquired a majority stake in O.N.E. The company's founder, Rodrigo Veloso, will remain as CEO and continue to be in charge of the company's day-to-day operations. Both PepsiCo and Catterton Partners had previously purchased a minority stake in the company.

Acai Roots' Frozen Smoothie Pouches will be sold throughout the San Diego, California, region through wholesaler Sysco San Diego.

Dream Products has announced a distribution alliance with Polar Beverages for its Dream Water relaxation water. Gerry Martin,Vice President of Marketing and Immediate Consumption Sales at Polar Beverages commented, "We are thrilled to add Dream Water to our ongoing list of quality and innovative products.

functionaldrinks zenithinternational newsletter

Editor: Anya Hembrough Deputy Editor: Cecilia Martínez Núñez Contributors: Charmaine Holmes, Jenny Foulds Commercial Consultant: Matt Wilton 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

enhanced

X

new age

X

nutraceutical

X

Dream Water has established itself as a leader in the relaxation category and provides our vast customer account vase with availability to a well marketed, leading edge beverage."

World

Australia: The Australia and New Zealand Food Regulation Ministerial Council has referred premixed alcohol and caffeine drinks to its Ministerial Council on Drug Strategy. If deemed unsafe, it could move to ban the beverages.The move comes after authorities across the US have expressed their concerns over the safety of such beverages.

Consumer group Choice has called for the Australian Competition and Consumer Commission (ACCC) to look at the way vitamin waters are marketed. Choice spokeswoman, Ingrid Just, said that marketing claims, such as 'nature approved ingredients' and 'natural flavours' are misleading to consumers. In response, a spokesperson for Coca-Cola Australia (CCA) has defended its Glacéau vitaminwater.The spokesperson for CCA said, "All of our labels are in compliance with Food Standards Australia & New Zealand regulatory requirements", and insisted that the company is committed to providing "factual, meaningful and understandable" information about its products.

China: Chinese-based Bright Food Company, producer of dairy products, is said to be in talks with nutrition supplement retailer GNC to acquire the American company. However, neither company has made official comments.

According to a statement filed with the China Beijing Equity Exchange Group, Beijing Yiqing Holding plans to sell 15% of its stake in the Beijing Pepsi Cola Beverage Company, a 50/50 joint venture between Pepsi and Beijing Yiqing. It has been reported that Beijing Yiqing is seeking to sell its stake for Yuan 73 million (€8.5 million).

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.

energ y

X

spor ts

X

juice

X

dair y