110209_FD_Issue 203

functionaldrinks zenithinternational newsletter This issue at a glance...

Page three UK retailer debuts oat ingredient

Page six Drink returns just for Valentine’s

Page four Energy drinks in India grow

Page five Beauty ingredients in focus

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Issue 203

enriched beverages

9 February 2011

United States

Drinks promise extreme health

Accordingly, Ex Drinks says that Ex Aqua Vitamins can be enjoyed by adults and children alike thanks to its formulation containing 'guilt-free ingredients'.

functionaldrinks spoke to Travis Arnesen, Director of Public Relations at Ex Drinks LLC, a licensee of the Extreme Sports Company in the UK, to find out how the company's latest addition has performed since its launch four months ago.

To support the launch, Ex Drinks is conducting rigorous in-store sampling within the markets where it is present, along with professional athlete endorsements from Team Ex Drinks. Arnesen added, "Also, we're activating many experiential marketing events on the ground at Winter X Games 15, the Sea Otter Classic and many others in the action sports world including surfing, downhill mountain biking and skateboarding. Ex Drinks will continue to work closely and cross-promote with its key non-profit partners."

Ex Drinks latest foray involves introducing its own range of vitamin enhanced waters. Ex Aqua Vitamins contain 10% of the daily value (DV) of vitamins B12 and E, 15% DV of vitamin B7, 20% DV of vitamin B5 and 30% DV of vitamins B3 and B6.The drinks are free from artificial colours, sweeteners, flavours and preservatives. Ex Aqua Vitamins is sweetened using low GI Fruit Up from ingredients specialist Wild and thus one bottle provides only 110 calories.

The three-strong range is available in Lemon Lime, Raspberry and Peach Mango and is positioned as "The Natural Alternative" to other enriched beverages in the market. However, it is noteworthy that the company does not make any explicit health claims with regards to the drinks.

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Arnesen also explained that distribution of the line-up has helped support sales as the drinks are now sold through natural and specialty distributors KeHe,Tree of Life, UNFI, Nature's Best and DPI Specialty Foods as well as select traditional grocery outlets.

Arnesen also told functionaldrinks that Ex Aqua Vitamins are available nationwide through the natural and speciality food channels with support from natural products broker Presence Marketing/Dynamic Presence.

Ex Aqua Vitamins were launched in October 2010.The drinks retail for between US$1.59 and US$1.79 for each 500ml bottle.

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functionaldrinks zenithinternational newsletter Page 2 Issue 203 9 February 2011

editorial comment Welcome to the 203rd issue of functionaldrinks.Valentine's Day is fast approaching and with it new products launching aimed at making it a memorable celebration. For all those couples who are trying to surprise their significant other, UK-based Firefly Tonics has re-launched its Love Potion drink which consumers can send to their loved ones (see Page 6).

Also returning to the market, is Dr Pepper Snapple Group (DPSG)'s winter 7UP variant, re-introduced on the US market with a healthy twist (see Page 3).We also cover Extreme Drinks' US launch of a range of vitaminenriched drinks (see Page 1). In the UK, we report on the launch of a juice which also promises to look after the heart, albeit by lowering cholesterol, by retailer Marks & Spencer (see Page 3).

New Zealand-based Frucor Beverages has introduced its popular energy drink in Spain (see Page 4), whilst in India XXX Energy Drinks has expanded its portfolio of energy drinks with an offering that also aims to help spur weight loss (see Page 4).

Back in the US, we report on the latest developments by Cintron Beverage Group, which has introduced a three-strong range of energy shots with Latin American tastes in mind (see Page 6).We also look at a new meal replacement drink by KeepWell Foods that can also be consumed as a healthy snack between meals (see Page 7).

In Mexico, CocaCola de México has added a new variant to its vitaminwater range in time to help consumers strengthen their immune system (see below). Finally, functionaldrinks' Charmaine Holmes reviews the key ingredients used in beauty drinks as well as those emerging, some of which may surprise you (see Page 5).

Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

enriched beverages

Mexico

Revitalising the Mexican market

burn more calories.

Revitalize also contains vitamin C, which CocaCola points out also has several health benefits: studies have suggested the vitamin may protect against atherosclerosis and heart disease, promotes the oxidation of bad cholesterol and prevents the formation of free radicals.Vitamin C is also reputed to slow down premature ageing, protect skin health and enhance the absorption of other vitamins and minerals by the body.

Coca-Cola de México has revealed a new addition to its growing portfolio of Glacéau vitaminwater drinks in the country.

The latest variant is called Revitalize, which is designed to support and maintain a healthy immune system. Revitalize has been enriched with green tea for its high content of polyphenols. The company highlights that green tea helps protect the body from free radical damage, maintains healthy cholesterol levels as well as inhibiting the growth of carcinogenic cells. Moreover, green tea has been demonstrated to help oxidise fat and thus help

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The new variant also contains vitamins B3, B5, B6 and B12. It joins six existing variants: Power c, Zoom,Vital, Energy, Multi-v, Restore and XXX. Revitalize was officially launched in January 2011 and is available in the standard vitaminwater 591ml wide neck bottle, retailing for Pesos 22 apiece.

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functionaldrinks zenithinternational newsletter Page 3 Issue 203 9 February 2011

nutraceuticals

United Kingdom

Is it Superman? No, it's Super Juice!

Shortly after making available its proprietary beta glucan ingredient to beverage manufacturers (see Issue 195), Swedish cereal ingredients specialist Biovelop AB has announced the launch of a juice drink featuring the ingredient.

The inclusion of Biovelop's PromOat ingredient is in retailer Marks & Spencer's new Super Juice drink.The juice drink targets health-conscious consumers looking to lower cholesterol through a tasty drink.

Super Juice contains a mix of red grape, blueberry and blackcurrant juices.

Super Juice contains 0.75g of oat beta glucan per 300ml serving, thereby providing consumers with 25% of the 3g daily intake of oat beta glucan recommended by the US Food and Drug Administration (FDA) and the European Food Safety Authority

(EFSA) for the reduction of cholesterol and subsequent maintenance of healthy cholesterol levels. In addition to this, one 300ml bottle of Super Juice counts as two servings of fruit and is also high in vitamin C. David Peters, Director of Sales & Marketing at Biovelop, commented, "For many years now, Marks & Spencer has been at the forefront of developing products which are both healthy and tasty, and their innovative use of PromOat in this Super Juice is a fine example of that. PromOat has enabled Marks & Spencer to offer their customers a delicious functional beverage with great mouth-feel which they can enjoy on the go, while reducing the ingredients list and ensuring that the product remains entirely natural and clean-label."

Peters added, "Raised cholesterol and cardiovascular disease are major health issues affecting societies throughout the world.

PromOat is a versatile, functional ingredient, which enables the well-recognised health benefits of oats to be incorporated into a broad spectrum of foods and drinks, thereby opening up many exciting opportunities for manufacturers and retailers to help tackle these health issues in a natural way that does not require consumers to alter their eating habits."

Super Juice was officially rolled out across Marks & Spencer stores in the UK in the last week of January. www.biovelop.com www.marksandspencer.com

enriched beverages

United States

Winter hit returns for another season

of 7UP especially for the winter season in 2007 and due to its success has continued to do so since.

Dr Pepper Snapple Group (DPSG) recently relaunched a pomegranateflavoured variant of its wellknown lemon-lime carbonated soft drink (CSD) with a healthy twist.

Pomegranate 7UP is described as being a combination of the well-known 7UP lemon-lime flavour with natural pomegranate; although it does not contain fruit juice but natural flavours and is caffeine-free as is customary for the brand.Thus, the drink's antioxidant label is attributed to its vitamin E enrichment.

Pomegranate 7UP is currently sold nationwide and is available in regular and sugar-free and retails for US$1.99 for a 2 litre bottle and US$6.49 for a pack of twelve bottles.

The Limited Edition Pomegranate 7UP was, as its name suggests, only sold this winter until the end of January. DPSG first introduced the pomegranate variant

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functionaldrinks zenithinternational newsletter Page 4 Issue 203 9 February 2011

energy drinks

Spain

Energy drink lands with a 'V'engeance New Zealand-based Frucor Beverages has announced that its popular energy drink V will be launched in the Spanish market.

The launch was made possible thanks to an agreement between Frucor and

its sister company Orangina Schweppes, both acquired by Suntory Group in recent years.

Although the Spanish market for energy drinks is highly competitive, Frucor remains convinced that V is well positioned to compete against the likes of Red Bull, which is estimated to hold a 50% of the market.

In order to achieve this, Frucor will be targeting 18 to 24 year-olds through TV advertisements, use of social media and presence at various events.

According to Frucor, V energy is also present in 18 other countries including Australia, the Netherlands, Sweden and Argentina. www.v-energydrink.com

energy drinks

India

Energy drink duo gets third variant XXX Energy Drinks, subsidiary of the JMJ Group, recently expanded its energy drink portfolio with a new offering.

The XXX brand, which stands for "Xperience, Xtreme, Xcitement" is targeted at young adults who lead highly energetic lifestyles.

drink for all calorie-conscious consumers who wish to enjoy good times while taking care of their health.We are confident that it will attain a cult status very soon.We are targeting a very niche market of consumers who are health conscious and exacting in their consumption patterns."

Although India's energy drink market is in its early stages, it is already highly competitive.

Nevertheless, XXX Energy Drinks has made clear it has bullish intentions and is aiming to obtain a 30% share of the market in 2011.

The company's existing two variants, Rejuve and Nicofix, were launched in December 2009. Rejuve, packaged in a green slim can, is positioned as a 'regular' energy drink.

In mid January 2011, the company introduced the latest variant called Minus. A low-calorie energy drink, Minus is infused with ingredients well-known for enhancing and supporting metabolism such as fibre, L-carnitine and CarbLite, an ingredient developed by Ingredia which neutralises the caloric action of foods.

Nicofix, as its name suggests, was created in response to the recent smoking ban in closed spaces.

According to the company, Nicofix features a special ingredient that helps reduce the urge for smoking and thus can also help those consumers wishing to stop smoking whilst feeling rejuvenated and energised.

Sachiin Joshi,Vice Chairman of JMJ Group, commented on the new drink, "The world over people spend billions of dollars just on one fixation; to maintain a healthy body mass proportion while enjoying various joys of an active social life.

We at XXX Energy Drinks recognised this need of consumers and after a lot of research by our clinical and formulation team we struck upon this revolutionary new concept. 'Minus' is the perfect

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Future plans for the company include the launch of a fourth variant as well as international expansion, with the company setting its sights on Singapore, key African countries and the UK. www.thexxxenergy.com X

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functionaldrinks zenithinternational newsletter Page 5 Issue 203 9 February 2011

nutraceuticals

World

Beauty and the Feast The niche but growing market for beauty drinks is being driven by an ageing, time-poor population and a greater appreciation of the role that nutrition plays in beauty.

Beauty drinks, also known as nutricosmetics, have garnered interest as they are an effective and convenient delivery format combining two beauty aspects: the healthy hydration element inherent to the beverage itself and the added functional ingredients. Zenith International estimates that global sales of ready-to-drink beauty drinks reached 144 million litres in 2010, a 2.9% increase on 2009 and 29% up on 2006, taking overall global market value to €1.1 billion. Asia, and particularly Japan, is the largest market, with markets in Europe and the USA less well established.

Superoxide dismutase, a blend of cantaloupe melon extract and wheat polymer, is said to fight inflammation and free radicals, boost the skin's hydration and activate cell regenerations. It is featured in Ever Shine Worldwide's Rainboii SOD-LIKE beauty drink.

Porcine placenta is garnering interest in Japan for its regenerative properties, where a number of brands have been formulated using it, including Kyowa Group's Fracora Premium and Nihon Sufoken's Q-bit Placenta 10000.

Reservatrol is a powerful antioxidant polyphenol commonly found in the skin of red grapes as well as other sources such as peanuts, blueberries and mulberries.

It is currently the focus of a number of studies looking at its potential anti-ageing benefits and is already used in beverages including Cellutions' Modjo for Life and Nutra Reservatrol's Anti-Ageing Water.

Beauty drinks were originally aimed at more mature women looking for anti-ageing products.Today, with broadening social pressure on both men and women to look good, product claims have diversified to include formulations specifically for acne reduction, skin whitening, skin hydration, radiance and hair and nail health.

Most beauty drinks do not just use one beautifying ingredient, but rather offer formulations that contain a mixture of minerals, vitamins, botanical and natural compounds to promote healthier, firmer, smoother and glowing skin. In developing nutricosmetics, manufacturers have tended to use either skin 'building blocks' like collagen, biotin, hyaluronic acid and ceramide as primary ingredients, or antioxidant compounds such as carotenoids and green tea catechins.

Using ingredients such as collagen and co enzyme Q10 that consumers recognise from topical skincare products, also helps to build credibility.

Despite little clinical research, especially human trials, to back up efficacy claims, innovation is a driving factor, with products containing both well established ingredients and newer formulations coming to market. A number of ingredients gaining momentum include:

New positionings for probiotics and prebiotics are also emerging. One of these is skin health, with the suggestion that they can help to restore the balance of skin microflora, preventing irritation.Whilst it is mainly being explored in topical applications at present, the Nestlé and L'Oréal joint venture brand Innéov has launched oral supplement Innéov Solaire with Skin Probiotic, to help protect the skin from sun damage, hinting at the ingredient's nutricosmetic potential.

Other ingredients being promoted for use in beauty drinks include genistein, an isoflavone that studies have shown to inhibit skin photo-damage, milk protein derived lactoferrin whose microbiobial effects can help prevent blemishes, as well as a number of natural plant extracts including pine bark, grape seed and rhodiola rosea.

Zenith International's 2011 Beauty Drinks report is available now. Contact Zenith International on tel +44 (0)1225 327900 or email mi@zenithinternational.com www.zenithinternational.com

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functionaldrinks zenithinternational newsletter Page 6 Issue 203 9 February 2011

herbal beverages

United Kingdom

Love is in the air and in the water too!

Five years after the drink was first launched, Firefly Tonics has announced the return of its famous Love Potion in time for Valentine's Day. According to joint co-founder Marcus WaleyCohen, Love Potion was re-launched thanks to repeated requests from consumers for the drink to be brought back. However, this time Love Potion will only be available for a limited time while stocks last through the same channels as the rest of the line-up including Harvey Nichols, Holland & Barrett,Wholefoods and other independent retailers.

In addition to these, consumers can buy and send the drink to a loved one through the Firefly website. Online, a bottle costs ÂŁ4.50 but this includes specifically designed packaging and a personal note.

The formula for Love Potion has remained the same, with the drink owing its aphrodisiac properties to angelica, damiana, cola, jasmine, cardamom chocolate and rosemary.

The drink also contains passion fruit, raspberry, blueberry, elderberry, apple, white grape and orange juices.

Love Potion retails for ÂŁ1.49 for a 220ml bottle. www.fireflytonics.com

energy drinks

United States

Fuel for Hispanics Cintron Beverage Group, producer of an eponymous range of energy drinks, has unveiled a line extension consisting of energy shots.

The new Cintron Liquid Energy shots are available in the same four variants as their 'long' counterparts: Tropical Azul, Cranberry Splash, Citrus Mango and Pineapple Passion.

Cintron energy shots' energy blend consists of glucuronalactone which promotes the conversion of ingested sugar into energy whilst avoiding its storage as body fat. The ingredient is also reputed to inhibit the 'crash' effect normally felt after consuming large quantities of caffeine and sugar.

body metabolise carbohydrates, proteins and fatty acids. They also contain the amino acid taurine which is involved in the normal functioning of the brain, nervous system and heart.

The energy shots, as the rest of the line-up, are targeted at the growing Latino population particularly in the Philadelphia region. Apart from the variants which were inspired by popular Latin flavours, the company has also partnered with Philadelphia Phillies catcher Carlos Ruiz, who is the brand ambassador for the energy shots.

The company has been aggressively promoting the shots through local and national media outlets spanning women's and men's interest publications as well as online media and events.

The energy shots can be found through select retail outlets including ShopRite stores in the Philadelphia area.

Cintron Liquid Energy shots contain vitamins B5, B6 and B12 to help the

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functionaldrinks zenithinternational newsletter Page 7 Issue 203 9 February 2011

functional drinks

World

Beverage Innovation functionaldrinks Awards to take place at 7th InnoBev Global Beverages Summit, 29-31 March 2011 in Washington DC FoodBev Media's Beverage Innovation magazine is partnering with Zenith International's functionaldrinks newsletter to reward innovation and excellence in six exciting categories, delivering 24 separate awards from drinks and shots to ingredients, packaging and marketing.

For full details of the awards go to www.beverageawards.com.

Entries close on 29 February 2011.

This year's InnoBev Global Beverages Summit, held in cooperation with the American Beverage Association, will address the challenges and opportunities facing beverage producers in ensuring a Healthy industry for a healthy

society. Highlights include: Debate on the challenge of obesity with American Beverage Association, US Government Department of Health and Human Service, US Senate Agriculture, Nutrition and Forestry Commission, The Center for Science in the Public Interest and UNESDA Perspectives on industry opportunities from Tata Global Beverages, Extreme Drinks and FoodBev Media Growth prospects from Kofola, Beverage Japan and Sumol+Compal Product innovations from Zico, Meiji, Beneo and Bericap Panel on investing in healthy beverages with Catterton, Honest Tea, Verlinvest, Rabobank and Tata Global Beverages Workshops on international brand expansion with Interbrand and flavoured and functional beverages from Zenith International The summit is sponsored by Tata Global Beverages, Closure Systems International, Beneo, Bericap and Rabobank.

For full programme details and to book your place online, go to www.zenithinternational.com/events.

Discounted rates are available on all bookings made by 25 February.

FREE WEBINAR: Global beverages - latest trends and analysis, plus overview of emerging categories Zenith Chairman Richard Hall will be hosting a free webinar on Wednesday 16 February at 15.00 UK time.Attendees will benefit from a discount on their next report purchase, newsletter or database subscription. Click here to register.

If you have any questions about any of our forthcoming events, please do not hesitate to contact Fiona Herrington on +44 1225 327903 or at fherrington@zenithinternational.com

functionaldrinks in brief

Europe

It has been reported that a combination of arabic gum and maltodextrin can reduce the degradation and protect the pigments of anthocyanins added to isotonic drinks.The study, published at the International Journal of Food Science and Technology highlighted the potential use of anthocyanins in beverages as colourants but also as functional ingredients.

France: According to French researchers,

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hesperidin, a flavanone found in orange juice may significantly reduce cardiovascular disease risk factors such as blood pressure.

Following the launch in France of Nestlé's Nesfluid, it has been revealed that Nestlé is targeting turnover of €100 million within five years of Nesfluid's launch.To achieve this, the company has created 20 TV ads aimed at educating consumers about each variant as well as extensive point of sale tasting sessions where consumers will also be able to learn more about

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functionaldrinks zenithinternational newsletter Page 8 Issue 203 9 February 2011

functionaldrinks in brief the range. Nesfluid is currently sold through all major super and hypermarkets except Système U. UK: According to a study conducted at the University of Exeter, elderly adults may benefit from consuming beetroot juice.The juice is wellknown for helping athletes train for longer.

However, the new study suggests that the juice can help reduce the effort needed to walk, particularly in persons with heart or lung conditions.

A recently concluded trial at the University of Loughborough has revealed that daily consumption of Yakult can reduce the incidence of common colds or upper respiratory tract infections in athletes.

North America

US: Security Beverages Company, the exclusive importer of Security Feel Better into the US, has announced the addition of P&T Distributing Corporation to its growing list of distributors. P&T Distributing is based in Georgia and will make the drink available to a range of nightclubs, liquor stores, convenience stores and other independent and chain retailers in the state.

RelaxZen co-founder and CEO Nick West has announced his resignation due to money troubles and personality differences with co-founder Brent Sonnek-Schmelz.West will remain a significant shareholder whilst Sonnek-Schmelz will become CEO. Argan Inc, producer of nutraceuticals, has announced it will close the operations conducted by its wholly-owned subsidiary Vitarich Laboratories Inc.The company cited deteriorating business conditions for the facility's closure.

Researchers from the Harvard School of Public Health have identified a dairy fatty acid that may reduce the risk of type 2 diabetes.According to the study, those with higher levels of trans-

functionaldrinks zenithinternational newsletter

Editor: Anya Hembrough Deputy Editor: Cecilia Martínez Núñez Contributors: Charmaine Holmes 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

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palmitoleic acid had a 60% lower risk of developing diabetes compared to those at the bottom 20% of participants.

Celsius Holdings has voluntarily withdrawn its listing on the NASDAQ exchange due to questions regarding its ability to meet compliance with the minimum stakeholders' equity requirements.

Nutripure Beverages has revealed it is testing a new bio-degradable bottle for the upcoming launch of its Nu2O product line.According to the company, safety and regulatory issues still need to be addressed before the bottle is made available for widespread public use.

Funktional Beverages has signed a distribution agreement with Thirsty Pig that will include retailers in Tampa, St Petersburg, Clearwater, Lakeland, Plant City, Saratoga, Bradenton, Sanford and Kissimmee.

ZUN, producer of the eponymous energy drink, has said its energy drink will be sold through all Casey's General stores in the Midwest.

Green & Co has signed a multi-state distribution agreement for its Pure Energy range of beverages. Under the agreement, the energy drinks will be sold at convenience store giant Kum & Go across eleven states.

Bond Laboratories has announced that its Fusion Premium Beverages division has entered into an agreement with Creative Distributing, based in the state of Maryland, for the distribution of Anti-Hangover Drink to liquor stores, restaurants, bars, nightclubs and convenience stores across the state.

VPX Sports has been promoting its recently launched Coco Fit drink in the trade press.The company is highlighting the nutritional content of the three-strong range as well as its low calorie and sugar content.

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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