Issue 76 | Beverage Innovation by FoodBev Media Ltd

BEVERAGE innovation

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foodbev com A world of food and drink

A responsible balance Hubert Patricot and Stephen Moorhouse, Coca-Cola Enterprises

Special report

Juicy waters

FOCUS

Energy drinks and shots

INSIGHT

Cans and alubottles

PLUS global product innovation, technology and ingredient news ÂŠ beverage innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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Issue 76 - June 2010

Inside this issue 4 6 14

16 18

20 43 44 46 48

The Editor’s view The InterBev Beverage Innovation Awards.

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COVER STORY

A responsible balance

Innovations Pick of the latest new products.

Bev business The non-alcoholic beverage industry news review section edited by Bill Bruce. For regular news updates, visit www.foodbev.com/beverage

Interview with Hubert Patricot and Stephen Moorhouse of CCE.

Events Reviewing Vitafoods, Geneva.

Events UK Soft Drinks Congress review. Highlight quotes from the presenters.

Ingredients in action

SPECIAL REPORT

Juicy Waters Juice and water meeting demand for healthier drinks with natural fruit taste.

Vegetable secrets.

Events The EuroPack Summit, Bar 10, SIAL & IPA, and the Food Protein Innovation Conference.

Bev tech beverage innovation technical news.

Marketplace beverage innovation products and services guide.

FOCUS

Energy drinks and shots The lowdown with the latest analysis and developments.

Advertisers index.

Expert opinion Festival Connections - three experts speak on drinks marketing through music.

INSIGHT

Cans and alubottles New moves in lightweight and recyclable containers.

FoodBev com A world of food and drink

Daily industry news and opinion

Images: screen © Irochka, bottle © Filipe Varela, tomato © Mailthepic, carton © Photoeuphoria, cheese © Edyta Pawlowska, glass © Konstantin Tavrov, orange © Les Cunliffe, bean © Monika3stepsahead, biscuit © Picsfive, strawberry © Braendan Yong | Dreamstime.com

www.foodbev.com/beverage Issue 76 - June 2010

CONTENTS 3

The editor’s view

For more about the InterBev Beverage Innovation Awards,

visit www.interbevawards.com

Announcing the InterBev Beverage Innovation Awards

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ollowing the success of the beverage innovation awards at drinktec last September in Munich, FoodBev Media is proud to announce that it has teamed up with the American Beverage Assocation (ABA) and the International Bottled Water Association (IBWA) to create the InterBev Beverage Innovation Awards. “If one word could sum up InterBev 2010 it would be Innovation. Why? Because InterBev 2010 is sure to be America’s premier beverage event with a whole new level of energy and excitement. And what better way to focus on innovation at InterBev than to launch its very own awards programme - the InterBev Beverage Innovation Awards,” said American Beverage Association President and CEO Susan K Neely. “FoodBev Media has long experience in operating

InterBev Beverage Innovation Awards rapidly becomes America’s premier awards scheme, designed to provide a unique snapshot of excellence and innovation in the American beverage industry.”

Susan K Neely successful international awards programmes in the food and beverage industries. It is a natural partner to ensure that the

Finalists and winners at the 2009 beverage innovation awards

“Following the success of major global awards programmes including: the beverage innovation awards at drinktec last September, in partnership with the European Beverage Association UNESDA; the Gulfood Awards in partnership with the Dubai World Trade Centre; and the IDF Dairy Innovation Awards in partnership with the International Dairy Federation; we are delighted to partner with the ABA and IBWA to celebrate the best of the American beverage industry,” said FoodBev Media Chairman Richard Hall. “The 20 categories in the InterBev Beverage Innovation Awards are designed to seek out new ideas and best practice in every sector of the American beverage industry. From beverages, through

ingredients and packaging, to initiatives in sustainability, health, wellness, hydration and consumer marketing - the awards programme is expected to attract hundreds of entries from companies large and small,” commented FoodBev Media Group Editorial Director Bill Bruce. “The programme is open to products, campaigns and initiatives introduced or reintroduced to North American or Latin American markets since 1 June 2009. Entries close on 1 September 2010 - so I urge companies to visit www.interbevawards.com and download entry forms today. A panel of industry experts will judge the entries a few days before the start of InterBev in Orlando and finalists and winners will be announced at a special InterBev Beverage Innovation Awards Gala Dinner during InterBev on 23 September 2010.”

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Every effort is made to verify all information published, but beverage innovation cannot accept responsibility for any errors or omissions or for any losses that may arise as a result. Opinions expressed in articles do not necessarily reflect those of FoodBev Media Ltd. beverage innovation welcomes contributions for publication. Submissions are accepted on the basis of full assignment of copyright to FoodBev Media Ltd unless otherwise agreed in advance and in writing. We reserve the right to edit items for reasons of space, clarity or legality.

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4 AWARDS

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Innovations

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The editor’s pick of the latest new products

Odwalla brings Haiti Hope 100% profits from Coca-Cola’s Odwalla Haiti Hope Mango Lime-Aid will bring better training and market access to Haiti’s 25,000 mango farmers.

Alo ¯ adds two more San Francisco, California based SPI West Port Inc has added two new variants to its aloe vera range: Award winning Enrich with pomegranate, cranberry and aloe and Appeal - a citrus blend of pomelo, pink grapefruit, lemon and aloe.

Snow soda + vitamins Snow Beverages has created sodas with natural cane sugar and vitamins in 12oz slim cans and a ‘Save the Snowflakes’ programme.

Summer Truefruits

Juice Doctor keeps it light

A limited edition dragonfruit, pineapple and grape juice from Germany’s Truefruits, in 50cl glass with a two month shelf life.

Three times gold medallist Steve Redgrave is a co-founder of Juice Doctor which has just reformulated without vitamins and is helping consumers to ensure full hydration via a Y’urindicator (below).

Mile High rebrand AOk From July, antioxidant drink Mile High will rebrand as AOk - with the same recipe of red cherries and grapes and a new look bottle.

Belvoir Fruit Crush Belvoir Fruit Farms has introduced Fruit Crush - a 100% natural juice drink containing 40% pressed fruit - in six new flavours with a taller sleeker bottle.

Celestial Seasonings Kombucha range Hain Celestial Kombucha is an all natural rejuvenating fermented tea beverage. Kombucha originated in the Chinese Tsin dynasty in 221 BC and Celestial has developed five tantalising fruit infused blends containing 95% raw kombucha, plus the company’s trademark combination of herbs, spices and botanicals. © beverage innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

6 PRODUCT NEWS

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Innovations

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Vouchercloud link

Joint juice Sunsweet herbal blends reposition Californian company Sunsweet Naturals has

National UK bar operator Slug and Lettuce have partnered with mobile phone application Vouchercloud to launch mobile promotional vouchers with redemption tracking.

Glucosame and chondroitin enhanced Joint Juice - the supplement drink - has repositioned, repackaged and reformulated without carbonation. It has also introduced two new flavours: cran pomegranate and blueberry açai.

introduced Sunsweet Herbal Blends - RTD beverages containing exotic herbs with fruit juice. They offer functional benefits for calming, energising, replenishing and focusing.

Lemonade up New Leaf Brands has launched New Leaf lemonades with 10% fruit juice and organic cane juice. In homemade, black cherry and strawberry variants plus ‘The Tiger’ half ice tea and half lemonade option.

Jala Azerbaijan superjuice Jala brand Superjuice from Azerbaijan is expanding worldwide following its launch at Anuga. Made from pomegranate concentrate with three flavour blends.

Carbonated protein drink In contrast to early flat and milky protein drinks Xapp contains 40g lightly carbonated protein so sports enthusiasts can refresh, refuel, repair and recover. At The Vitamin Shoppe.

Seagrams malt drink North American Breweries’ Seagram’s brand has added Lime Melonade to its Escapes line of flavoured malt beverages. Containing 3.2% alcohol, the lime, lemon, green melon and orange flavour joins eight other existing flavours.

1870 mixers Silver Spring 1870 traditional mixers including ginger ale, bitter lemon and lemonade, have partnered with Guards Polo Club for the 2010 polo season.

Hansens’ new look Hansens Beverages has repackaged its Natural Cane Soda made using cane sugar and its zero calorie, sugar free diet range.

Snapple two new teas US Celebrity Apprentice finalists have created two new teas - Snapple Diet Trop a-Rockatea and Compassionberry Tea. Now nationwide.

Retro Slushy Giles & Posner has introduced a Retro Slush Machine with the feel and look of a 1950’s diner. Creates slush drinks in minutes with your own fruit juice.

www.foodbev.com/beverage Issue 76 - June 2010

PRODUCT NEWS 7

Innovations

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Latest product launches from Japan Royal Jelly and milk protein. 12kcal/100ml.

Far left: Yoshihiko Hani, President of Beverage Japan

Lemon Mitsuya Cider Zero

Left: Steve Galloway, Exigo Marketing

potassium 9.2mg, calcium 0.8mg, magnesium 0.6mg, vitamin C 23mg, GABA 10mg and no fruit juice.

Yasai-Shibori Kagome launched Yasai Shibori (right) last year as a 100% vegetable juice with vegetable sweetness. It has been relaunched with ‘Tomato to Koumi Yasai Soup Jitate’, which has 32kcal and comes in a 125ml carton from Toppan Insatsu, and ‘Murasaki imo Dolcelatte’ which is made from purple sweet potato with carrot and pumpkin. It has 86kcal and comes in a 200ml slim LL paper container by Nihon Tetra Pak.

Soysh Otsuka Seiyaku has launched Soysh (below), Japan’s first carbonated soy bean milk with soy solid content at 7% per 100ml. Otsuka has developed technology to prevent congealing which also suppresses the bean smell, so that it is easier to drink. The 100ml glass returnable bottle is brown to shield the light, with white shrink film. Shelf life for Soysh is three months.

Fruits Dolce Kirin’s Tropicana’s new Fruit Dolce (below) is a desert-type drink with fruit

Jelly drinks

juices and real fruit pulp. ‘Gelee de Gold’ is a mix of orange and mango juice with mango fruit pulp (fruit juice 70%, 51kcal/100g, in a 140g pouch) and ‘Bavarois de Rouge’ is a mix of strawberry, white grapes and banana juice with added strawberry fruit pulp (75% fruit juice, 56kcal/100g, in a 140g pouch).

Tea for Sports Tea for sports from Japan Tobacco is a lemon flavoured tea, hypotonic sports drink containing GABA and vitamin C. It was developed following an observation that RTD teas are often used as a thirst quencher to substitute sports and carbonated drinks. It contains 21kcal/100ml,

Mogitate Nmai-momo and Aomori Ringo Zeitaku Jelly (above) are by Japan Railways (JR) East Japan using local ingredients and local production. Nmai-momo is a collaboration with Yamagata Foods and is a fruit juice using 50% white peach juice. It comes in a 280ml PET bottle by Toyo Seikan. Aomori Ringo is a collaboration with Nichirosanpack in Hokkaido Island and is a shaken jelly drink using 30% apples. It contains 49kcal/100g.

Strongurt Strongurt from Calpis (below) is a yogurt flavoured milk drink targeting 20-30s men. It contains

Asahi’s Lemon Hajikeru Mitsuya Cider Zero (left) is a lemon flavoured variety of its Mitsuya Cider carbonated drink, again using its zero concept.

Apple pie jelly drink Kagome launched Apple Pie Jelly and Cinnamon (left), a jelly drink inspired by the recipe for apple pie. It contains 50% fruit juice, and is aimed at 10-30 year old males and females. It has a 150g pouch and a shelf life of nine months.

Fire coffee jelly Fire Coffee Jelly (right) is the first coffee jelly product from Kirin’s Fire brand. The target consumers are men in their 30s and 40s, with the aim of the jelly drink to reach males in their 20s too. 3p steel can by Daiwa Seikan. Established in 1978, Beverage Japan is Japan’s leading trade beverage publication covering all aspects of the drinks industry and market in Japan and is published monthly by Japan Beverage Inc. The magazine is represented in Asia and Europe by Exigo Marketing. For more information contact steve@exigomarketing.com www.exigomarketing.com

8 PRODUCT NEWS

www.foodbev.com/beverage Issue 76 - June 2010

Innovations

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www.functionaldrinksnews.com Quick shots After finding success with energy shot Quick Energy, US manufacturer Viva Beverages has rolled out its latest compact ready to drink (RTD) innovations, with a relaxation proposition. Quick Relax, as the name suggests, has been designed to ‘take the edge off’ after a day’s work, whilst Quick to Sleep is formulated to provide a peaceful night’s sleep. Both 59ml shots contain a fastacting formula incorporating chamomile, rosehip, lemonbalm, passion flower and hops, all known to reduce stress, relieve tension and promote relaxation. In addition, Quick to Sleep contains valerian root, noted for its sedative properties. Quick Relax is sugar free and contains just 5 calories per bottle, whilst Quick to Sleep is both sugar and calorie free.

Natural Attitude Attitude was first launched in the UK in September 2008, as a healthy, wholesome and natural alternative to energy drinks. Since then, the company has been building distribution while searching for ways to improve formulation in line with Energizer Brands’ desire to provide natural functionality through an environmentally

friendly medium. The firm came across a rare herbal adaptogen called rhodiola rosea, capable of providing the energising effect of yerba maté but without the caffeine, and applied for a patent on a new formula featuring this ingredient. As a result, Attitude apparently became the first natural energy drink without caffeine or taurine.

Alcohol cure? Japan based Ajinomoto has launched a drink to help

alleviate the symptoms of the over consumption of alcohol (right). No-Mikata is a plum flavoured drink featuring alanine - an amino acid that is naturally produced by the body, and said to be vital for the production of protein and functioning of the central nervous system as it helps form neurotransmitters. The amino acid is also necessary for maintaining stable blood glucose levels and releasing energy from protein and from the muscles during exercise. In terms of its hangover curing credentials, alanine helps by quickly addressing hypoglycaemia - an excessive drop in blood glucose levels that can be caused by drinking too much alcohol - by releasing stored glucose and thus restoring energy levels.

Lower calorie soy drink Leche Pascual has added a new offering to its soy beverage line in the form of ViveSoy Ligera. It contains less calories (29 per 100ml) than the rest of the Vive Soy line and has a smoother flavour, making it accessible to a wider audience, according to product Marketing Manager Esther Marinas. The launch of ViveSoy Ligera will be supported by a national level advertising campaign later

in the year, which has been created by advertising agency Bap&Conde and will span various media channels from TV and radio to magazines to ensure that the product resonates with its main target market - women. All material has been designed to emphasise the product’s low calorific credentials and smooth taste as well as the brand’s endorsement by Spanish television presenter, Nuria Roca

Sasso stands up for busy women In February 2010, House Foods, launched Sasso. Targeted at active female consumers who are on their feet all day, the drink was introduced with an energy boosting proposition. Packaged in an aluminium bottle with ring pull cap, the enhanced beverage contains 1,000mg of Citrulline, thought to improve blood flow, 50mg of cinnamomum cassia bark extract, which reportedly has an antidiabetic effect, in addition to vitamin B, ginger and potassium to help support dwindling energy levels. The product is priced at the equivalent of €1.60 per bottle.

www.functionaldrinksnews.com © beverage innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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www.foodbev.com/beverage Issue 76 - June 2010

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Cranberry Battery Oy Sinebrychoff, manufacturer of Finnish energy drink Battery has introduced a cranberry juice variant in 450ml PET alongside juiced orange and a 60ml shot with 90mg taurine.

System U energy Targeted water range Las Vegas based h10o has launched a new range of vitamin infused waters with zero calories, sugar and carbs. The range features six formulations - three for women and three for men.

Lower alcohol wine campaign Tesco is planning to back a government campaign against selling cheap alcohol, according to long time campaigner for lighter style wines, Tony Dann. Solvio is a 5.5% low alcohol wine produced in California and is targeting women to give them a safe and reliable drink on evenings out while offering sophistication.

Nerd focus and energy Manufactured by Vinicio Montes - a Texan medical student - to help him study, Nerd Beverage contains vinpocetine, huperzine A, DMAE, and Chinese gingko biloba for focus and energy.

Following in the footsteps of Carrefour, Casino and Leclerc (the latter with X-tense), French retailer Système U has entered the energy drinks market with an own label brand.

6 Hour Power and vitamins US energy shot producer NVE has extended its range with Stacker 2 vitamin shots with zero sugar and zero calories. Hangover helper, Self defense, Joint Fit, Rest & Relaxtion and Prolong Pleasure each deliver benefits in a 2oz shot.

7-11 private label beer Game Day is a 7-Eleven store brand premium lager now entering 4,200 stores in 17 US states. The brew comes in two variants - Light and Ice - in 12 packs of 12oz cans and 24oz singles.

Olive based Sprint

A better balance Highlighting social and environmental initiatives, Balance Water of Australia - with Water for Mind, Water for Travel, Water for Women and Water for Children - has repackaged its attractive flower essence waters.

Element Terre organic The Element Terre range from Celliers du Languedoc Vins Distribution is an environmentally friendly organic wine with four varietals - one a silver medal winner - with shelf stand out.

Sprint is an innovative non alcoholic energy drink from Italy’s Olivum. On show this year at Vitafoods in Geneva, it is packaged in a 250ml crown cork seal alubottle and a 90ml screw cap alubottle. It is an olive leaf infusion with lemon, guarana, raw cane sugar and calendula.

www.foodbev.com/beverage Issue 76 - June 2010

PRODUCT NEWS 11

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Glacéau Zero vitaminwaters Sweetened with Truvia, stevia leaf extract, Coca-Cola owned glacéau has released a zero line of functional waters under the vitaminwater brand. In seven flavours, the new brand extensions are packaged in 20oz bottles with four packs of 16oz bottles also on sale.

Cumbrian Aqua Pura

Chef special An ad campaign featuring Michelinstar chef Martin Wishart has been rolled out by premium mineral water brand Speyside Glenlivet, created by Merle. The campaign uses the tagline ‘Great Chefs Adore it’.

Nutrient enhanced water

Rhubarb for Ramlösa

Simply Center nutrient enhanced water from Harris Teeter is made with strawberry and kiwi enriched with lutein, from LycoRed, along with vitamin A.

Carlsberg Sverige has added two new variants to its functional water line. Joining the two existing Ramlösa Balans offerings, the latest summer inspired flavours are strawberry and rhubarb, the first for its sweetness and the latter for its fresh acidity. Packaged in 500ml bottles.

Supporting the ‘Together in Education’ programme, this certified kosher product is packaged in a 20oz PET bottle.

Princes Soft Drinks is focusing on the Aqua Pura brand’s water source in the heart of the Cumbrian fells for the brand’s major relaunch. The location is protected by the EU as an area for special conservation.

Smartest fish! Worth spending two minutes of your time watching the drench fish tv advertisment - as Mr Memory the fish tackles the assault course. The funniest tv ad we have watched in a while - which also encourages consumers to stay hydrated.

Healthier drinks Wat-aah! for kids The first functional water for kids without sugar, colouring or calories, WAT-AAH! has a bold new advertising campaign running outdoors in New York City. Founder Rose Cameron said, “water is the true alternative to soda, but up until now kids have found it boring and preachy. Not any more!”

AriZona Beverages’ Rescue Water Premium RTD tea manufacturer AriZona Beverages has introduced Rescue Water with Energy, Detox, Relax and Immunity variants. Featuring just 25 calories per 8oz serving it contains the propietary Twinlab vitamin blend. © beverage innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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www.foodbev.com/beverage Issue 76 - June 2010

Innovations Relaxation tea The Californian manufacturers of Mary Jane’s Relaxing Soda - The Relaxing Company - has released a ready to drink tea. Blending decaffeinated green tea and black tea with kava root extract, to create a soothing effect. It is sweetened with agave and cane sugar. The company uses only premium kava root grown on the South Pacific island nation of Vanuatu, which is known for producing the world’s finest kava.

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Starbucks Fusions Jason Simpson, Coffee Quality Manager for Starbucks Coffee Company in the US, poses with Starbucks Natural Fusions - a grocery line of naturally-flavoured packaged coffee. It is made from Arabica coffee blended with real vanilla, cinnamon and nutmeg.

Big Cola extends to Cool Tea in Mexico

Red espresso has rooibos tea base

Ajemex, the manufacturer of Big Cola in Mexico, has launched Cool Tea with lemon in major metropolitan areas across the country, in a 680ml can and a 355ml PET bottle. “The tea sector has a market potential of about 230 million pesos, and can be doubled for 2015,” said MD Alfredo Paredes.

South African, Carl Pretorius, has developed Red Espresso a richtasting, caffeine free espresso made from rooibos tea. Loaded with 10 times more antioxidants than regular rooibos tea and five times more than green tea it offers strength, full bodied flavour and crema offering the coffee experience without the caffeine.

Whynatte Latte Jesse Altman and Andy Wessels the founders of Whynatte Latte - a dairy based energy coffee designed as an alcohol mixer - are gaining distribution through social media networks.

Clipper Green Tea pocket packs To encourage people to take tea to work, Clipper, the Fairtrade and organically certified tea makers, is launching a new nine pocket pack in a clip strip format in Tesco stores. Aiming to reach new customers it will be sited in the health and beauty aisle of the supermarket.

JUGIT flows on

Steenbergs stand out Yorkshire based Steenbergs has rebranded its organic loose leaf tea range into black bespoke embossed tins, with colourful shelf presence.

RPC Containers has redesigned the innovative, reusable JUGIT, the core of Dairy Crest’s innovative new concept in milk packaging that is being rolled-out across the UK in Sainsbury’s stores.

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PRODUCT NEWS 13

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New moves and results from the international beverage industry UK based Britvic acquires Fruité in France

ritvic, the UK soft drinks group behind J2O and Tango, is buying the French Fruité Enterprises Group for €237 million, funded partly by a share placing. News of the acquisition came as Britvic announced its half year results with profits up

from £20 million to £27.8 million. The company said trading in the second half had been robust and it expected to meet full year forecasts. The purchase of Fruité, whose brands include Pressade, Moulin de Valdonne and market leading syrup brand Teisseire, is part of Britvic’s plan to expand further into Europe and will certainly give it a firm foothold in the €12 billion French non-alcoholic beverages market.

Britvic Chief Executive Paul Moody said: “With a portfolio of iconic, market-leading still brands and as France’s leading independent soft drinks company, Fruité is an excellent strategic fit for Britvic.”

by Bill Bruce However, analysts speculate that the move into France may see a new direction for Britvic. In the Financial Times, Andrew Hill wrote: “This move helps Britvic diversify away from bottling - and the relationship with Pepsi - in the UK and Ireland. This is unlikely to be Britvic’s last acquisition on the Continent.”

“Fruité is an excellent strategic

As the company’s results show, the €249 million acquisition of the soft drinks business of Ireland’s C&C - struck exactly three years ago - was perhaps overpriced and poorly timed.

fit for Britvic.”

Tata Tea becomes Tata Global Beverages and restates its international intentions

ith a view to build a new and strong global brand, Tata Tea has announced that it is to change its name to Tata Global Beverages. Following the operational integration of its five beverage businesses announced in 2009, Tata Global Beverages will unite all its beverage interests, marking another step in its

beverage innovation

transformation to become a global leader in ‘good for you’ beverages. In a statement, the company said that current brand names - including Tata Tea, Tetley and Eight O Clock

JUICE CORNER

Brazilian orange juice companies merge Brazilian orange juice companies Citrosuco and Citrovita have agreed to merge operations, creating the world’s largest producer of orange juice.

JUICE FACT

It is expected that the joint venture will have annual

Brazil produces about one in every two glasses of orange juice consumed in the world today.

revenues of $1.1 billion. The merger will also help the companies cut costs and deal with pricing pressures from large retailers in the US and Europe. The Votorantim group, which owns Citrovita, and the Fischer group, controller of Citrosuco, will each have a 50% stake in the venture. The combined company will have six factories in Brazil, one in Florida and right port terminals, two in Brazil and the remainder in Japan, Belgium, Australia and the United States.

Coffee - will remain. It said that the new name ”reflects Tata Tea’s ambition to be global and its brave and successful transition from being a tea and coffee commodity business to one focused on delighting consumers across the world with great tasting branded beverages”.

Importantly, “it sets out the strategic intent of the company for the coming years”, it added. “Our announcement clearly demonstrates the group’s pride in its Tata parentage and heritage, as well as its intention to build a new and strong global Tata brand,” said Tata Tea Vice Chairman, R Krishna Kumar.

Cott reports QI improvement

anadian based private label bottler Cott Corporation’s first quarter 2010 operating income was up 13% but net income and earnings were down. Q1 revenue was $363 million, a decline of 1.1%, or 4.4% excluding the impact of foreign exchange. Operating income increased 13% to $25 million from $22 million. Net income and earnings per diluted share were $12 million and $0.14, respectively, compared to $20 million and $0.28, respectively. The decline was due to an income tax expense of $4 million in the first quarter of 2010 compared to an income tax benefit of $6 million in the first quarter of 2009.

“I am pleased with another quarter of improvement in operating income which benefited from strong performances from the UK and Royal Crown International,” commented Cott Chief Executive Officer Jerry Fowden. “In what we had previously communicated would be a challenging quarter for volume comparisons, lower North America volumes were more than offset by strong contributions from our other operating segments and lower overhead expenses.”

14 NEWS

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The Coca-Cola Company revenue falls short while bottlers stay solid

he Coca-Cola Company reported lower than expected first quarter 2010 revenue.

Sales volume fell 2% in North America, due mainly to weak economy and unseasonably cold January and February weather. Overall volume rose 3%, below the 5% increase in Q4. Volume rose 4% in Latin America, 5% in the Pacific region and 11% in the Eurasia and Africa division, driven by increases of 29% in India and 18% in Turkey. Volume in Europe was flat. Q1 revenue rose 5% to $7.53 billion, but fell short of the analysts’ average estimate of $7.72 billion. Net income increased to $1.61 billion, or 69 cents per share, from $1.35 billion, or 58 cents per share, a year earlier. Meanwhile, the company said its deal to acquire the North American operations of its largest bottler, Coca-Cola Enterprises (CCE), was on track to close in Q4. Coca-Cola expects the deal - which follows a similar move by PepsiCo Inc - to help streamline distribution, boost flexibility and cut costs. The company also said it remained on track to achieve its goal of $500 million in annualised cost savings by the end of 2011.

Coca-Cola Enterprises CCE reported first quarter 2010 results reflecting solid operating income growth in Europe, driven by a combination of pricing and volume growth. In North America, overall operating conditions remained soft, though performance trends showed improvement through the quarter.

Coca-Cola Hellenic Athens based Coca-Cola Hellenic improved profitability in the first quarter of 2010, primarily reflecting the benefit from earlier cost-cutting programmes and the favourable effect of currency movements.

PepsiCo reports strong Q1 results

epsiCo has reported solid results for the first quarter of 2010, driven by the acquisition of its two anchor bottlers, volume gains in its worldwide snacks and international beverage businesses, balanced investments in value and innovation, and lower costs across its operations. PepsiCo Americas Beverages successfully completed its bottling transactions and held volume share in carbonated soft drinks in the US, as top-line trends improved in the North American beverage business. Meanwhile, operations in Asia, Middle East and Africa posted strong growth in key developing markets such as India and China, where snacks and beverages posted double-digit volume growth. PepsiCo Chairman and CEO Indra Nooyi said: “PepsiCo’s

broad portfolio performed well in the quarter as our operating agility and solid marketplace execution enabled us to deliver strong financial and operational performance. Our macrosnacks business gained share in key markets and we posted solid performance in beverages supported by the benefits of the acquisition of our two largest bottlers, growth in developing markets and improving top-line trends in North America.” For more on this story, visit www.foodbev.com

“This result was achieved amidst a challenging economic environment, with weak consumer sentiment and uncertain financial markets continuing to adversely affect consumer spending across several of our markets,” said Coca-Cola Hellenic CEO Doros Constantinou. For more on these stories, visit www.foodbev.com

Dr Pepper Snapple ‘resilient’ on QI results

r Pepper Snapple Group Inc reported lower profits for the first quarter, reflecting higher expenses and declined sales volumes. Sales volume increased 3% reflecting solid growth across the portfolio, but various factors resulted in a 3% decline in sales volume and reported net sales were down 1%.

remains fragile, we are starting to see improvements in underlying consumer trends including the critical immediate consumption and fountain foodservice channels.

DPS President and CEO Larry Young said: “Despite the carryover of weak consumer trends, an abnormally wet and cold January and February and our toughest quarter of the year, our portfolio demonstrated resilience. While the US economy

“This improvement, combined with winning innovation, white space and cold drink expansion opportunities and ongoing investments in brand health gives me confidence in our full year outlook and the long-term growth prospects for this business.”

www.foodbev.com/beverage Issue 76 - June 2010

NEWS 15

Vitafoods Review

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The latest from the 2010 event Held at Geneva’s Palexpo from 18-20 April, Vitafoods always springs a few surprises and highlights levels of innovation in the nutraceuticals sector.

Sipal organic concentrates

Fact Box • Sales in the global nutraceuticals industry are projected to reach $177 billion by 2013, growing at a compound annual growth rate of 7%. (Source: BCC Research, 2008) • The number of functional food consumers in major European markets is growing by 6-7% a year. Sports and fitness nutrition is now a distinct food sector with a broad consumer base, and there is strong innovation in the energy bar and fruit juice categories. • Other experts estimate that the combined US, Western European and Asia Pacific functional food and drink market is now worth $72.3 billion, and forecast that this market will grow at a compound annual growth rate of 5.7% until 2012. Asia will remain the most prosperous functional food market and is forecast to continue to outperform the US and European markets in the foreseeable future. (Datamonitor)

EU approval for Sunactive The European Food Safety Authority (EFSA) has confirmed that Taiyo Europe’s microencapsulated iron supplement Sunactive Fe improves blood health and metabolism. Food and beverage manufacturers can gain competitive advantage from this EU decision through disclosing the health claims on labelling. A soluble source of iron for fortification it disperses easily in liquid without precipitation and does not react with other food matrices. Other advantages include sustained release and high bioavailabilty as well as mildness on the stomach and lack of flavour or odour. www.efsa.europa.eu/en/scdocs/doc/1215.pdf

Nordic wild blueberries Inü from La Maison Bergevin in Norway is a wild blueberry juice that is pouch packed with a contemporary design. Producing 100% natural products from cranberries, blueberries and blackcurrants, the company serves primarily the industrial and foodservice sectors with juice, concentrate, puree, IQF, powder and extracts.

Complete immune blend from DSM Customised to target consumer trends, DSM offers Quali blends, a complete nutrient mix that can be added in a single step. Scientific studies have demonstrated that balanced nutrition can strengthen the immune system. Carrying the Quality For Life seal to guarantee quality, sustainability and traceability it contains vitamin A, Betacarotene, vitamin B complex, a synergy between vitamins C and E, vitamin D, minerals and Omega-3 polyunsaturated fatty acids.

To meet the growing demand for meal replacement, through drinks to be consumed on the go, Sipal Partners of Belgium now offers bio organic concentrated cereal drinks from rice and oats. The company produces a unique range of more than 25 organic cereal and dried fruit concentrates via a clean and natural production process. the company has a new website www. sipalpartners.com showing its wide range, including: cereal syrups (rice, corn, malted barley, spelt); glucose syrups (wheat and manioc); glucose-fructose syrups (wheat); concentrated drinks (rice and oats); starch and gluten (wheat) and concentrated dried fruit juices (dates, prunes and figs).

Prigat opts for LycoRed Prigat of Israel has developed a red grapefruit syrup in a 750ml bottle that is free from artificial preservatives or colours. Containing grapefruit concentrate, vitamin C and potassium with natural food colour. LycoRed is used as a food colourant in products such as SAB Miller’s Brutal Fruit, Starbucks Milkshake and Ben&Jerry’s Cherry Garcia milkshake. It has a carotenoid base with recognised health benefits as it natually contains lycopene, beta-carotene and luteine.

Newtrition wellness portfolio R&D activities at Cognis Nutrition & Health are customer-focused, with formulations tailor-made to specific requirements. Cognis helps customers bring to market innovative products and solutions with scientifically proven safety and efficacy to maintain a competitive lead. Its Nutrition & Health division develops products for the global food, beverage, and dairy industries industry working to the requirements of each industry in terms of product quality, stability, and handling. Two concepts on offer were a lemon balm & Fruit Up beverage designed to provide mental energy and a low cholesterol shot containing Vegapure.

Vitafoods - Asian debut in 2011 Vitafoods Asia will make its debut in Hong Kong on 7-9 September 2011 at AsiaWorld-Expo to attract a pan-Asian visitor audience and global exhibitor base.

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Phytosome technology Today, bioavailability and oral absorption challenges have been overcome by Indena proprietary phytosome technology that enhances the bioavailability of selected phytomedicines. A phytosome is generally more bioavailable than a simple herbal extract due to its improved water stability at intestinal pH values and its enhanced capability to cross the lipid-rich biomembranes and reach blood circulation. One phytosome is Meriva, an Indena proprietary complex of curcumin (Curcuma longa L.), with soy phosphatidylcholine. Curcumin polyphenols are collectively equipped with potent antioxidant, anti-inflammatory, and anti-cancer properties. Indena’s Phytosometechnology is also applied to the milk thistle fruit extract (Siliphos, Silymarin Phytosome, Silipide) to the grape seed extract (Leucoselect Phytosome) to the green tea extract (Greenselect Phytosome) and to Ginkgo Biloba extract.

Plantextrakt introduces superherbs “Consumers are now not only demanding products that taste good,” reports Plantextrakt’s Oliver Hehn. “The factor ‘supporting wellbeing’ plays an increasingly significant role”. The herbal extracts in Superherbs have high antioxidant potential. The ‘Pomegranate-Grape Seed Yoghurt Drink’ from the Superherb product range, for example, is not merely a refreshing, pleasant tasting yogurt drink containing pomegranate and grape seed extracts. It also has an ORAC score of 8,700 points per litre, which means that the yoghurt drink has almost ten times the antioxidant potential of a conventional orange fruit drink.

www.foodbev.com/beverage Issue 76 - June 2010

EVENT REVIEW 17

Beating the downturn

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UK Soft Drinks Congress The annual UK Soft Drinks Congress held in London is always a stimulating day. Companies small and large come together to share best practice with innovation top of mind. BENEO-Palatinit kindly sponsored the event. Zenith International Senior Market Analyst Victoria Milne opened with figures demonstrating how the industry is beating the downturn. CSD’s are enjoying success as a carbonated treat in hard times with growth further stimulated by energy drinks and double concentrate dilutables. “Although fresh chilled juice has seen declines, ambient juice has experienced strong growth and soft drinks generally are standing for fun, health and vitality - with UK volume predictions for 2012, the Olympic year, expected to be close to 15,000 million litres.

Garrett Quigley of PepsiCo spoke on ‘Refreshing the nation and the whole world’ with 19 brands which generate over $1billion. As outlined by CEO Indra Nooyi recently, the

company has pledged to reduce salt, fats and sugar by 20% by 2015. “Our future business growth and profits will come from healthier products,” she said earlier this year.

Sarah Mitson of TNS World Data spoke of growth in premium private labels brands and increased spend on instant consumption products. “Pack design can break down motivational barriers on the path to purchase. And 81% of all shopping trips are now top up shops with no more than 13 items purchased at one time.”

The industry has an important role to play in addressing the problems of obesity. We know we now all walk less and drive more, our jobs are more sedentary office jobs and so we need to encourage the switch to no sugar alternatives and also healthier alternatives through drinks such as Vitamin Water, Lipton, Gatorade and Pepsi Raw.

More than 30% of outlet turnover is on items on promotion - showing that even affluent consumers like a bargain. “The consumer will be able to scan a product with their iPhone to see if it meets their particular diet. So each will carry their personal customised system. “Despite a loyal base of full sugar drinkers there is no ceiling to the growth of low sugar drinks.

Energy conservation, water stewardship and sustainable package recycling are key and the company has measured carbon footprint across the supply chain. We have reduced our water footprint to 1.4 litres of water per litre of product and are aiming for 1.3 litres in 2010. “People are confused by what can and cannot be recycled, and only 10% of on the move packaging is recycled so more recycle zones are being set up at music and sports events.” “The industry is changing quickly and we are keeping pace across all European markets. The new CCE is an opportunity to think bolder and broader.

We made more profits with our one aseptic line than the rest of the factory. Phenomenal discipline is required to run an aseptic line with its requisite cleaning regime. Aseptic is an easy win for us but can the rest of the market stand the cost?

Simon Baldry of CCE spoke of growing responsibly with awareness of a plant’s impact on the community with 5,000 people on 36 sites in the UK. See more on Coca-Cola Enterprises in the cover story interview, page 22.

There is more growth to be had in flavoured waters. By natural reformulation we have re-engaged with consumers. There is a flight to traditional mixers such as root beer, dandelion and burdock, ginger beer and elderflower.

“PET costs have gone through the roof but PET cannot be reheated more than four or five times so continual bottle to bottle recycling is a myth. Also there is no way of judging what a bottle is made of. I think 25-30% rPET is achievable. 100% rPET is not.

“We are using 55% rPET to create the bottles for Perfectly Clear. We work with Artemis and Web-Tech and have an absolutely pure and clean label declaration. We now have seven production lines covering every category and are ready to engage with the industry and grow our business.

Andrew Cawthray Chief Executive of Cawingredients

Neil Cotton Managing Director of Silver Springs Soft Drinks

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Consumers are seeking alternatives to premium brand offerings. Value is now commonplace across the UK. Value no longer means poor quality.

I think it odd that people will spend money on buying good gin only to ruin it with saccharin sweetened tonic water.

“Value is seen as smart but you must deliver on consumer expectation If you do it well your consumers will spread the word to two more. But if you do it badly they will tell seven.

“Sugar costs 10 x more than some sweeteners but you can taste the difference. We source only the best ingredients for our mixers, including fresh green ginger from the ivory coast.

“Boost is not just a soft drink it is functional, affordable, regular and refreshing and sells based on price. Simon Gray, Managing Director of Boost Drinks

The perception of energy drinks was initially set by Red Bull, who targeted the dance and clubbing sector. It was seen as a party drink to mix with vodka and keep you going longer. This was limiting as we all need energy for everything we do in life. “So two thirds of the population were not being served by the energy drink market. High value has helped drive growth but mostly for high sugar, high calorie drinks. “Overcrowding is a risk going forward, there are now more than 100 energy brands in the US.

Charles Rolls, Chief Executive and co-founder of Fever Tree

It contains dopamine to increase levels of pleasure, sodium to decrease fatigue, chamomile as a tonic and anti spasmodic to cure insomnia, passiflora to fight anxiety, valerian, plus potassium to help the heart muscle and adrenal gland function.

“In shots we are seeing new distribution opportunities. We are now seeing energy coffee shots, some which are more pharmaceutical and others that are low energy and low sugar.

“A finalist in the Sofi awards it is great for students with pre-exam nerves.

“Consumers need educating as they are asking - how many should I drink to be effective but not dangerous? How much caffeine is needed to work and how much should it cost?

Keith Whitlock, Communications Director for Boisson Slow Cow

“Shots as an impulse product have a high pilfer level, but they can be sold at the counter in clothing and shoe shops - there is a new open space for them.

Where there is a gap is in providing energy drinks targeting women. Stephan Haussmans of BENEO-Palatinit

Kris Yule of Go Fast Energy Drinks

The early Fairtrade juice was thought of as charitable and well meaning but it tasted dreadful. That is no longer the case. Organic juice carries the perception of quality. “We could see that the biggest selling item in Farmer’s Markets was apple juice and this was at ambient temperatures - not chilled. “In a sector that is currently dominated by own labels we can see an opportunity for a premium fruit juice - because it is easier to dominate in a niche sector for small lucrative brands. “By siting it in the chill cabinet and offering eye catching limited edition blends over the summer with massive PR endorsement the retailer will not lose sales. Mark Palmer of Cawston Press

There is plenty of contemporary drinks doctrine to deliberate on here. If you’d like to respond to any of these views please contact: claire.phoenix@foodbev.com

We chose the Aisacan for the latest Sunmagic Fairtrade range as it gives maximum opportunity for marketing the package is the label. “This PE based solution has an eco advantage in that it offers a 36% reduction in carbon footprint on that of an aseptically filled PET bottle and a 53% improvement on standard PET. Razin Ali, Sunmagic Brand Manager at Multiple Marketing UK

www.foodbev.com/beverage Issue 76 - June 2010

EVENT REVIEW 19

Ingredients

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Vegetable secrets: opportunities for the food and beverage industry by SVZ International Product Group Manager Vegetables & Organics Harry Zwart

he juice industry is currently facing a number of challenges. It is losing market share to waters, due to higher calorific values, acidity and price. How can vegetable juices turn this negative trend? Vegetable juice concentrates can make a valuable contribution when facing these key issues:

Calorific values

Price pressures

In general, vegetable juice contains approximately 30% less calories than fruit juice. For example, a 200ml glass of orange juice contains 92 calories, as opposed to 62 calories in a glass of carrot juice. Combining fruit and vegetable juices can provide a full bodied taste and a content of 100% fruits and vegetables, but with fewer calories, which fits well in a calorie reduced diet.

Retailers are putting pressure on overall price levels and rarely allow price increases. Also recently price fluctuations of certain fruits have led to delistings. To regain this volume and defend market share, a lower and more stable price is important. As we grow all our vegetables under contract with farmers with stabilised prices, it is possible to have a fixed price for a longer period. It is beneficial to already know the contract price at an early stage, without unpleasant surprises afterwards. Vegetable prices are on average also lower than a lot of fruits, which will lead to a lower blend price for fruit and vegetable juices.

Acidity reduction Consumer reports have shown that certain consumers prefer not to drink 100% fruit juice because of its acidity. As vegetable juice contains less acid, blending a fruit juice with a vegetable juice will reduce the overall acid level of the blend, with less impact on teeth and reflux.

Convenience, health aspects and sustainability Today many consumers have difficulties reaching the Required Daily Intake (RDI) level for vegetables. Drinking a blend of fruit and vegetable juices can help to reach that RDI. The blend can be one of the required ‘five a day’.

Vegetables are perceived as healthy, by people all over the world. This healthy image is based on functionalities such as the fibre content and specific bio active ingredients, for example: • Red beet: rich in folic acid and betaine, which may have positive effects on reducing fat-accumulation, as well as the immune system and stamina. • Carrot: contains higher amounts of carotenoids, which are linked to possible positive effects against heart diseases and cancer. The high vitamin A content is related to cholesterol reduction.

Vegetables also have a vitamin pattern that is different from fruit. Where fruits are mostly known for their vitamin C content, vegetables also contain other vitamins such as A, B, and K.

Sustainability and corporate social responsibility Food production is contributing to the carbon dioxide emission and therefore a reduced carbon footprint is highly appreciated. In general, vegetables can be grown in any location and SVZ

• Spinach: contains vitamin A, but also glucosinolates and lutein, which are all linked to possible positive effects against heart disease and cancer.

Pomegreat, the UK’s pomegranate juice brand, has added yet more flavours to its range with the introduction of Beetroot and Cherry to its ambient range. The new flavours increase the choice for consumers alongside original pomegranate, the blueberry and raspberry versions offering a hit of antioxidants and goodness. © beverage innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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ÂŠ beverage innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com. For details about syndication and licensing please contact the marketing team on 01225 327890.

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has chosen to grow all the vegetables in the surroundings of its juice processing plants in Poland and the United States. The few kilometres between the growing area and the production plant guarantee very fresh raw materials and a minimum CO2 emission per kilogram end product. Most vegetables are grown under Agronomical Frameworks, as this comes with contract growing and offers security to the farmers. Within this the use of pesticides is prescribed as well as controlled. The result is a correct, minimal dosage of pesticides, which is beneficial not only to the environment, but also to the farmer and the consumer. In conclusion, vegetable juices offer exciting marketing opportunities through new taste combinations and in promulgating various aspects of health and sustainability.

Yorkshire Provender Soup Company is taking on New Covent Garden

Campbell Soup Company has recently released Q3 results. Beverage sales increased 13%, driven by volume gains. V8 V-Fusion juice sales including V8 vegetable juice and V8 Splash increased significantly due to increased advertising and promotional activity. V8 is now available in cans and cartons too.

www.foodbev.com/beverage Issue 76 - June 2010

NEWS 21

A responsible balance

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Following the completed acquisition of The CocaCola Company’s bottling operations in Norway and Sweden, Coca-Cola Enterprises (CCE) will be The Coca-Cola Company’s strategic bottling partner in Western Europe and the third-largest independent bottler globally. Claire Phoenix interviewed CCE Vice-President Europe Hubert Patricot with General Manager and Vice-President Supply Chain Europe Stephen Moorhouse on sustainability goals and company outlook. beverage innovation interview What is the turnover of CCE in Europe and how many employees do you have? What sort of volumes are sold? HP: Coca-Cola has rich history in Europe. We started making Coke in Paris more than 90 years ago, and today, Coca-Cola Enterprises has 16 manufacturing sites across the six countries where we operate in Europe. People are often surprised when they hear that about 95% of our products are made in the country in which they are sold in Europe.

[1] CCEs 2009 Annual Report states global net operating revenues of $21.6 million, of which 30 percent is derived from Europe.

We employ more than 11,000 people in the six countries where we operate, including Belgium, France, Great Britain, Luxembourg, Monaco and the Netherlands, serving a population of 155 million people in our markets, and we are the strategic bottling partner

for The Coca-Cola Company in Western Europe. In 2009, we delivered a third consecutive year of balanced earnings and volume growth in Europe. We achieved $6,517 million net operating revenue[1] in Europe, and worldwide, we sold approximately 41 billion bottles and cans (or 1.9 billion physical cases).

We invest millions to reduce energy used in our factories Coca-Cola Enterprises is recognised for its strong CSR across the board. Where do you feel most progress has been made in the supply chain? SM: First, I am incredibly proud of our employees and

Stephen Moorhouse and Hubert Patricot the personal commitment that many of them have made to our Corporate Responsibility & Sustainability goals. We don’t have a sustainability function or department. While our commitment to sustainability is lead from the top, it’s our employees who are really behind our progress and driving change within every part of our business. A recent survey also told us that corporate responsibility and sustainability is one of the top three drivers of engagement among our employees. This feedback from our employees drives us to ask questions about how we can improve everything we do.

We know that we have more to do, but we are making progress. Importantly, we have done this by working with key stakeholders to learn how we can make our operations more sustainable. Currently, we are investing millions of pounds to reduce the energy used in our factories, and we are also working with retailers to cut almost a million kilometres off the distance our lorries and vans travel by the end of 2010. We are also reducing the environmental footprint of our packaging and waste. We now send zero waste to landfill at five of our manufacturing sites in Europe, and we are determined to do the same at all of our sites. We must build on this work within our four walls, and we are increasingly working with suppliers, customers and consumers to reduce our impact across the entire product supply chain. This includes the emissions which result from the energy used by fridges and chillers in shops and supermarkets, the water used to grow the sugar, and the raw materials for our cans and bottles.

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We are also reducing the weight of our packaging and use as much renewable and recycled material as possible. Our aluminium cans in Great Britain are a third lighter than 25 years ago (the can wall is now just the width of a human hair), they contain up to 50% recycled aluminium and can be recycled again and again. This means they use less raw materials and use less fuel to transport.

requires us to make a reduction more in the region of 40% in real terms. We are investing millions of pounds to reduce the energy used in our factories and make our fridges on retailers premises more efficient by installing devices, which cut energy use by up to 35%. We are also working with retailers to cut almost a million kilometres off the distance our lorries and vans travel by the end of 2010.

We also know that if our cans or bottles are recycled, the products carbon footprint can be reduced by as much as 40%. This means our next big challenge is to convince consumers that what they do with the packaging really matters. In fact, we really want to get their packs back to increase the amount of recycled material, especially PET, that we can use in our packaging.

And water footprint?

What are your targets regarding carbon footprint? SM: We have set ourselves a first milestone of cutting the carbon footprint of our business operations by 15% by 2020 compared to 2007 irrespective of any growth in our business. For us, this is a challenging target since we are also growing our business, and net, this

SM: As with carbon, we’ve been measuring the water footprint of our business operations and our products. Within our factories,

We have also been looking closely at the water footprint of our products

a 500ml bottle of Coke made in our factory in Dongen (NL). We’ve worked in partnership with the University of Twente, with WWF and with the Water Footprint Network to begin to develop a standard way of measuring how much water is used to make our drinks.

we use 8.6 billion litres of water in Europe. We have a water use ratio that we are hugely proud of, and in Great Britain, we use just 1.43 litres of water to make a litre of product (2009).

This means looking beyond our own factories and at the water use of the total supply chain. Almost all our total water footprint comes from water used indirectly by our supply chain in growing sugar beet and other natural ingredients, and in producing packaging. This means that reducing our water footprint will require collaboration with farmers and suppliers.

But we have also been looking closely at the water footprint of our products. As a first step we’ve identified a single product

This puts our own operational water use into perspective, as it is significantly smaller than our embedded water use.

We hope to move towards a standard water footprinting methodology, and we are looking further into the water footprint of both cane and beet sugar, both of which we use in Europe. What are the main barriers to supply chain improvement and the main opportunities? SM: Our objective for supply chain is ambitious. We want to have world-class supply chain capabilities, and this means driving continuous improvement within our organisation. Over the past few years, we have integrated our supply chain operations across Europe, greatly improving the efficiency and effectiveness of the ways we produce and distribute our products. We are also working to enhance productivity plant by plant. At the same time, we are also seeking to make our operations more sustainable. We are very proud of being a local manufacturer, but we understand our business has an impact on the communities in which we operate, both economically and environmentally. We’ve already made great strides in making our operations within our own four walls more sustainable, but our impact goes well beyond our factory gates. Each step of the supply chain has an impact and thus an opportunity for us to reduce the

www.foodbev.com/beverage Issue 76 - June 2010

COVER STORY 23

A responsible balance

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Facts on the transaction The Coca-Cola Company and Coca-Cola Enterprises have agreed in principle that CCE will buy The Coca-Cola Company’s bottling operations in Norway and Sweden, subject to the signing of definitive agreements. Further, CCE will have the right to acquire The Coca-Cola Company’s 83% stake in its German bottling operations 18 to 36 months after close for fair value. At the close, CCE will be The Coca-Cola Company’s strategic bottling partner in Western Europe and the third-largest independent bottler globally. Reflecting CCEs position as The Coca-Cola Company’s strategic bottling partner in Western Europe, the companies will enter into a 10+10 year bottling agreement and a five-year incidence pricing agreement. Pro forma, including the contributions of Norway and Sweden, CCE would have generated approximately $7.3 billion in revenues, $850 million in operating income, and $1.2 billion of EBITDA in 2009. The Coca-Cola Company and CCE expect the transactions to close in the fourth quarter of 2010. Source: www.kosystemevolution.com

footprint of making, selling and consuming soft drinks at every stage. We have an opportunity to make a difference across our entire supply chain. This year we held our first Conference on Sustainability for our top suppliers in Europe. This provided us with the opportunity to work with them specifically on our commitment to achieve a more sustainable future. Where do you see the company in five years time?

HP: Our vision is to be the best beverage sales and customer service company. To us, that means having strong brands in every category in which we compete, being our customers most valued supplier, and establishing a winning and inclusive culture within our company. It means being a leader not just in the beverage industry but across FMCG and competing with household names which are truly world class.

I believe that we are making great progress. We are proud to be part of the success of the Coke brand, and at the same time, to be part of developing new brands, like vitaminwater, and Monster and Relentless energy drinks.

We are incredibly proud of our track record servicing customers

We are also incredibly proud of our track record servicing customers. In Great Britain in the FMCG industrys Advantage Group independent survey of retailers, we have been named the number one supplier five years in a row, but we also know that we must not be complacent. We continue to look for opportunities to work with our customers to grow the category in our existing territory, and recently, we have announced our intention to expand our presence in Europe, acquiring The Coca-Cola Company’s bottling operations in Norway and Sweden.

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Juicy waters

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Page 28

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This Water fruit quenchers

Bart Lauret of SVZ International

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Henry Chen of Alo¯ Drinks

Dave Wakwork of Feel Good Drinks

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Volvic welcomes summer

Döhler Vitamin Water concepts

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Natural formulation for Perfectly Clear from Silver Springs

The first to market - Glacéau vitaminwater

Our love of all things natural makes refreshing drinks such as still or sparkling water with a percentage of juice a very popular option. Mouth watering flavours with fruitful provenance and heritage are striking a chord with consumers. While other juice flavoured drinks enhanced with vitamins or offering isotonic balance are also reaching for this educated, health aware audience. Claire Phoenix interviews some of the companies and suppliers juicing up the sector.

www.foodbev.com/beverage Issue 76 - June 2010

SPECIAL REPORT 27

Juicy waters

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This Water - real fruit quenchers

ade with real fruit and natural spring water, UK based This Water was one of the first drinks to use the name ‘Water’ in its title. Since 2007, This Water has been making drinks from a simple blend of pure juices, crushed fruit, spring water and some natural sugar.

“It has no preservatives, colourings and flavourings and sells on its reputation of being the most natural, water based juice drink in the shops.”

The company launched two brand extensions this March: Oranges & Lemons and Raspberries & Apples.

The 420ml PET bottle and 275ml glass bottles are sold in a number of foodservice sectors, with the Raspberries & Apples blend selling also in a 1 litre bottle format in the chilled aisle in supermarkets.

This Water Marketing Manager Sarah Smart said: “For several years the juice drinks market has displayed healthy year on year growth. So it is important to ensure that we’re acting on what consumers want. “We spoke to our drinkers and they told us they wanted new This Water drinks that were as light as our best-selling Lemons & Limes recipe, with the same high-quality real fruit, natural spring water and great taste. So we went into

the kitchen and came up with two more refreshing recipes. “The Oranges & Lemons recipe blends Mediterranean oranges (for their tang), Brazilian oranges (for sweetness), spring water and freshly squeezed lemon juice to deliver a well balanced fruity and refreshing taste. “In contrast, This Water Raspberries & Apples blends fresh pressed juices from raspberries (from Poland) and apples, a squeeze of lemon, and blackcurrants to add rich colour, and spring water to create a crisp, fruity and refreshing drink.

This Water partners with PumpAid From 24 April 2010, each bottle of This Water sold will give one person in Malawi, access to clean drinking water for a month. PumpAid combats the global water and sanitation crisis by establishing sustainable supplies of clean water and safer sanitation provisions. www.pumpaid.org

Juice drinks winning on value and convenience Value wins out Juice drinks sales returned to growth in the UK in 2009 - up 3% to £501 million - after declining by 1% in 2008. This sub-category benefited from pure juice shoppers trading down in search of taste and fruit content at a lower price. Driving category growth within the top ten brands was Rubicon, up a significant 54%, Oasis 6%, Capri Sun 11% and J2O 5%. Value conscious shoppers also gave private label a 15% increase in sales.

On the go Juice drinks are very much impulse items and lunchtime or on-the-go situations are the main occasions for consumption within the independent channel. Independent stores need to think about their customers when stocking their chiller. If the store is located in an area with high pedestrian traffic

they should focus on stocking chilled brands such as Juicy drench which are perfect for consumers wanting to meet demands of the consumer onthe-go or as part of lunch.

by Britvic Sales Director Murray Harris

Which flavours are most popular? Juicy drench is available in three variants Orange & Passionfruit, Cranberry & Raspberry and Blackcurrant & Apple. Each flavour is a blend of fruits with clear, crisp spring water, with no artificial sweeteners, colours or flavours, which is increasing popular with consumers who are health and well being conscious. These consumers are looking for a drink other than water and drench is fast becoming a recognisable and respected juice drink brand, on which retailers should capitalise.

Source: AC Nielsen Scantrack MAT 26 Dec 2009 (unless stated otherwise).

Created to demonstrate the benefit of staying hydrated, Juicy Drench Spring Water launched in May 2009 with an ad campaign featuring a larger than life giant pheasant being ridden by a cowboy rodeo style to the classic Black Box track, ‘Ride on Time’. Recent £5.5 million investment in the drench brand features a gymnastic goldfish and latest on pack technology in Fish for Prizes. Consumers use the goldfish printed on the bottle’s label and a webcam to trigger the augmented reality game featured on www.staydrenched.com. They are then submersed into a virtual, computer-generated fish tank where they interact with the game in real-time. The more hydrated players are, the better their brains perform, which means more bubbles burst.

28 SPECIAL REPORT

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Aloe Vera drinks with a natural juicy base

¯ Drinks, enry Chen, one of the founders of US based ALO spoke with Claire Phoenix about the launch of this exciting range. What made you launch this drinks range? We had been importing a similar drink for around four to five years from Korea for the Asian/ Hispanic market in the US. We were selling around 200 containers a year and could see it had legs. We then decided to focus on building a better brand with a higher aloe content and a natural specification. How long has it been in development and what was the launch date? We launched in late 2008, but really did not get into distribution until summer of 2009. The product was in development for about a year before that. Now, we are in distribution in just about all of the largest natural food channel distributors and conventional grocery distributors here in the United States such as Wholefoods. The product is taking off in the US and Canada! International markets are our newest priority. We will be participating in the Sial show in Paris in October to find new distributors.

other nutrients. It has also been shown to help the absorption of vitamins. Many people drink 100% aloe juice (which doesn’t taste too good) for health reasons. Since we came out, we’ve received communications for many of these consumers thanking us for making something that is healthy and great tasting.

International markets in the West are our newest priority We have seven unique flavours. ¯ Exposed: Our original aloe • ALO with honey flavour and our best seller.

¯ Awaken: Our unique • ALO wheatgrass and aloe flavour. In addition to all of the benefits of aloe, we add wheatgrass, which is a great natural source of energy. The second biggest seller. ¯ Allure: Our Mangosteen, • ALO mango, and aloe flavor. In Asia, mangosteen is known for its cooling properties. ¯ Enrich: Our pomegranate, • ALO cranberry, and aloe flavour. Pomegranate and cranberry are both high in antioxidants. This has just become a 2010 Silver Finalist for the Sofi Award for Best Cold Beverage. It is up for a possible Gold Medal, which will be determined in June 2010 at the Fancy Food Show in New York. ¯ Appeal: A citrus blend of • ALO pomelo, pink grapefruit, lemon, and aloe. ¯ Elated: An unusual blend • ALO of a brewed olive leaf tea, green tea, and aloe. We take the leaves from the olive tree and brew it into tea. Olive leaf teas have been shown to have

Henry Chen even higher antioxidant levels than green tea. And the future? We already have a focus on the natural grocery channels but the mainstream channels are showing an interest. It is also selling well through service stations in Canada - such as PetroCanada and through 7-11 stores there. To be honest the international market was not a focus but with a less sweet formulation than the product we sold some years ago, we can see increasing demand in the West for this refreshing, premium, and above all natural product.

What are the names of the products in the range and their various benefits? All of our drinks contain 25% aloe vera pulp and juice content, other juices, natural ingredients and water. We take the pulp and juice directly from the aloe vera plant . . . we do NOT reconstitute from powder. We add nothing artificial, not even thickeners or emulsifiers. Aloe vera has been shown to help promote a healthy digestive system, has anti-inflammatory properties, and is a good source of essential amino acids and © beverage innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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SPECIAL REPORT 29

Juicy waters

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Juicy or ‘juice flavoured’ water - that is the question?

number of clear juicy waters have hit the shelves this year. Many flavoured waters have reformulated with natural juice flavours, often at quite some cost but with an impressive uptake in repeat purchase as they offer the consumer a much improved mouthfeel and aftertaste. One of the first to enter this arena - Volvic with its Touch of Fruit range launched initially in 1998 has three new fruity fresh flavours ’Coco-Lime’, ’Strawberry’ and ’Tea/Forest Fruit’ designed to awaken that summer feeling. “The combinations of Volvic mineral water with delicious fruity taste or tea extracts are low in calories. Today, quenchers should be healthy, low in sugar and natural in taste. With our new

varieties, we offer consumers an alternative to other beverages which meet exactly these criteria,” stated Carolyn Knappe, Senior Brand Manager for Volvic. This trend can also be seen on the water market: the demand for water with taste increases continuously.

Coconut water and lime “Coconut water is a big trend arising from Latin America.

Sports athletes drink it, Madonna drinks it and invests in it. “We wanted to bring this emerging trend to mainstream market and introduce coconut flavoured Volvic in Germany. New Volvic Coco-Lime will create taste explosions in your mouth,” added Marketing Director, Danone Waters Germany, Jeyan Heper. Volvic Tea/Forest Fruit has been available in the 1.5 litre PET bottle and the 0.75 litre Sportscap format from March 2010. Volvic Tea/Peach and Volvic Cherry will also be available from March in the sportscap format, offering convenience, refreshment and practicality.

Perfectly clear and natural tasting

aunched in 1994, Perfectly Clear was the founding brand of the flavoured water category in the UK. It is bottled at source by Silver Spring (est. 1870) based in Folkestone, Kent. The range includes: Heavenly Cherries, Divine Summer Fruits, Scrumptious Strawberry, Zingy Lemon & Lime, Crisp Red Apple and is available in still and sparkling varieties from Tesco, Morrisons and other good multiple and independent stockists. Revolutionised with a bold new look and the launch of a range of real fruit flavours by parent company Silver Spring. The new generation of Perfectly Clear is being positioned as a healthy soft drink, with new and improved flavours that have a distinctly English personality. Responding to consumer demand, Perfectly Clear is now available in 1.5 litre and 500ml bottles in flavours which echo its Garden of England roots: Heavenly Cherries; Divine Summer Fruits; Scrumptious

Strawberry; Crisp Red Apple; and Zingy Lemon & Lime. Focusing on its credentials as sugar-free, with no artificial colours and flavours the redesign embossed, lippedbase bottles and ’A Fruity Twist’ - printed caps to enhance the sense of quality being delivered through the brand. Its character is further developed with quirky and familiar language for storage instructions and ingredients. Silver Spring Managing Director Neill Cotton said: “The reinvigoration of Perfectly

Clear will give it a point of difference on-shelf and broaden its appeal; the flavours, packaging and ingredients are on-trend with the sector. We have revisited all the flavours and ingredients, moving with the market. The qualities of real fruit have been enhanced and the range is entirely sucralosebased.” He continued: “We are responding to consumers’ demands to know more about the products they are buying. Our drinks are made exclusively with chalk-filtered, calcium-rich water from the Silver Spring within the North Downs; the closest commercial spring to more than 50% of the UK population. This means we also have a great story to tell on low food miles and excellent water quality.”

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Supplying products and technology for juice waters by SVZ Key Account Manager Bart Lauret How have you seen the market change in this sector? There has been an increase in product launches, with producers promoting the combination of water and fruit. On one hand, there is the combination of water and juice, without added sugar and additives. In this case the fruit part is often a premium NFC juice with or without a puree. On the other are waterjuice combinations where sugar and additives are used, such as acids, colourings and flavourings. Known as nectars or fruit drinks - here it’s mostly a marketing story. True juice waters are brands known for fruit juice, or brands known for their water, who aim to combine the positive healthy image of both ingredients. Products such as Spa & fruit fall into this category. What are the difficulties faced by manufacturers in processing? Separation only occurs when purees are used in the water-fruit combination. There are methods to prevent separation, for example by using clear or cloudy juice concentrates or clear or cloudy NFC juices. SVZ is able to offer all of these variants. Consumers have become used to separation in fruit juices, and see this as a naturally occurring phenomenon of premium fruit ingredients. Separation can be avoided by using clarified juices, but a bit of separation is no longer such a big deal. There are no other real processing difficulties, unless you take shelf life into consideration. When

combining fruit with water, the pH of the juice normally tends to go up, which makes the product more volatile for mould growth. This can be avoided by correct heat treatment and filling techniques. What do you see as the most popular fruits for juicy waters? The most popular by far are lemon and lime as in lemonade. Juicy waters are normally refreshing drinks with lower pH levels (slightly acidic) and so not very sweet. For this reason fruits such as pomegranate, passion fruit, cranberry, blackcurrant and raspberry are doing well in this category. So far, sweeter and less acidic fruits such as peach and pineapple are not performing well.

True juice waters are brands known for fruit juice, known for their water In which geographic sectors have you seen particular growth? The UK was the first to launch a water fruit combination and declare it. In the Benelux and Germany we now see it being introduced as a healthy combination. For juice brands it’s a way to reduce the ingredient cost, and offer a ‘light or low sugar’ product without artificial sugar replacers, and reduce acidity to avoid tooth erosion. Water companies can use their water brand as a marketing tool. In Eastern Europe, the fruit water combination is not yet being marketed as

juicy water, but it is the biggest market for nectars and juice drinks. In which direction do you see things moving? We believe that the juice market will continue to grow - thanks to health, convenience and sincerity. Fruit (and water) are known for their health benefits but can be high in sugar and acidic (bad for teeth), so producers are working on ways to reduce the sugar levels in a natural way. Vegetables can help reduce the sugar content of a juice, but the European consumer is still sceptical about such blends. However, such combinations will remain a point of interest and with great products like HAK Puur fruit it has been shown that fruit and vegetable combinations can taste fantastic. Convenience is a clear, ongoing trend and smoothies are a perfect example. Honesty is becoming more important. Consumers are more knowledgeable about health and label claims - leading to a need for clean declaration. Sustainability is also more important. To use the typical Miss-World phrase ‘To leave the world in a better way than we found it’ is something that appeals to consumers. SVZ offers an extensive range of fruits and vegetables as puree, juice concentrate and as NFC juice. Processors can do their own development work, but SVZ’s R&D department is able to offer such expertise. With our experience in product development we know what is available, what combines well, and what works in a market. We offer single ingredients so the packer can do the blending and handling of the ingredients, and we also offer complete customer specific blends so that the packer has only to add water.

What are the big issues for you right now? Availability or new methods such as aseptic processing? The availability issue is about to be solved again for a great part of our portfolio, with that for red berry fruits about to start again. The current climate conditions in Europe are worrying, with the late frost, low temperatures, and large amounts of rain. This can impact on the availability and quality of fruit. We follow developments closely and take actions to reduce the impact. In tropical fruits we see for example that the price of passion fruit continues to be high, and orange juice prices are increasing. This combined with the Euro Dollar exchange rate, results in such fruits becoming more expensive. This is not good news as the juice category is already a premium one and prices should not increase further. How has SVZ’s business changed over the last ten years? Food safety and sustainability has become important along with improved quality. The impact of the processes on flavour, colour, vitamins, has resulted in product improvements. Consumers want great tasting and healthy products, but without complex label declarations. This can only be achieved when we can keep most of the natural goodness intact during the process.

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SPECIAL REPORT 31

Juicy waters

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Feelin’ Good about juice drinks by Dave Walwork of Feel Good Drinks How has the Feel Good Drinks range changed since it was first launched and what consumer demands are you responding to? Since launching with a range of only three still juice drinks nine years ago, the company’s growth has exceeded all expectations. Feel Good Drinks are now available in four ranges; Feel Good Still Juice Drinks, Feel Good Gently Sparkling Juice Drinks, Feel Good Kids drinks and the recently launched 275ml bottles for the on trade. Marking the trend for healthier alternatives in recent years with only 100% natural goodness, our drinks contain no added sugar or artificial nasties. We always keep consumer demand at the heart of the brand and from the start began making completely natural juice drinks. We recognised heightened consumer interest in nutritional values and wanted to give our drinkers best quality and taste. Consumers are always looking for new flavours to try and soft drinks companies have to continue to innovate to keep customers excited. Feel Good juice drinks are now available in eight flavours; Orange + Mango, Apple + Blueberry, Cranberry + Orange, Cloudy Lemon, Cranberry + Lime, Orange + Passion fruit, White Grape + Peach and Raspberry + Passion fruit. Recognising the need for a healthy option for kids, we launched the successful Kids range in 2009 in a child-friendly tetra wedge pack format. Offering the good stuff parents are looking for, Feel Good Kids are made from 100% natural ingredients, and are blended from 2/3 juice and 1/3 water, offering maximum refreshment and hydration. Feel Good Kids are available in two flavours;

Orange, Pineapple + Banana and Blackcurrant, Apple + Grape. The most recent change for Feel Good Drinks is the launch this month, of a new label design across our full range of Still and Sparkling Juice drinks. The new packaging, which clearly communicates the 100% natural and quality ingredients in the drinks, highlights all the good stuff in a way that is fresh and innovative. Whilst retaining a premium look and feel to the overall design, the emotive brand name ‘Feel Good’ has been given increased focus. Unlike many other premium juice drinks, we do not add any sugar to our drinks so we have up-weighted this messaging on-pack, as well as highlighting that each serving counts as one of your five. We believe that our new packaging, will please existing Feel Good fans, and attract new consumers to try one of our Feel Good Drinks. Finally, we have also recently launched a new 275ml range in Orchid Pubs across the UK, to reach families as a tie in with food or for adults as an alternative to alcohol. What is your current distribution and where do you go from here? Feel Good Drinks are stocked in 20,000 outlets in the UK including all the major multiples, high street chains, independents, food service and forecourts. We have already secured national listings including Sainsbury’s, ASDA, Waitrose, Tesco, BHS cafes plus independent cafés and restaurants, Little Chef, London Zoo and David Lloyd Leisure, as well as number of key wholesale accounts. Feel Good Drinks is also distributing in over 1,000 forecourts across the country.

This includes all the major forecourt chains; BP, ESSO, Total UK, and our most recent win, Shell UK. We are always looking for new opportunities and are thrilled that we have made significant headway within the airline industry having recently won three major airline accounts including Thomas Cook and Thompson Airlines. Going on holiday is such Feel Good thing to do, so it’s great our brand can be part of that experience for holiday makers! Globally, Feel Good Drinks can be found in no less than 12 countries including Hong Kong, Finland, France, Holland, Sweden, Denmark, Greece, Norway and Ireland - and this number is growing all the time! What is the juice content and what challenges did you come up against in formulation?

The quality of our drinks is the number one priority in our business. All of our Feel Good Drinks are made from fruit and a little water with no added sugar or artificial ingredients. We believe that when someone chooses a juice drink, they expect it to be made from 100% natural ingredients and they don’t want spoonfuls of added sugar. The actual juice content of our drinks varies slightly from flavour to flavour but all are made from over 80% juice and each counts as one of your five a day. The fact that we never use cheaper ingredients such as sugar or artificial sweeteners, flavourings or preservatives means our drinks are more expensive to make than our competitors which is a key challenge. However we know that better quality ingredients make better tasting, healthier drinks and that’s what makes our consumers feel good!

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Döhler vitamin waters concepts offering lifestyle and functionality

itamin waters have been enjoying success in the US for a number of years. Now the trend has reached Europe, with double-digit growth rates being reached in many countries. Thanks to functional ingredients such as vitamins or minerals, consumers are being offered an individually tailored beverage for any time of the day and for any mood. Product positioning options run the whole gamut, from ‘relax’ and ‘vitality’ to ‘protect’ and ‘defence’. The vitamin blends are dosed in such a way that just one litre is sufficient to provide the recommended daily allowance (RDA). On the basis of trends in such products in the US, the DöhlerGroup has developed concepts adapted to the needs and statutory requirements of the European market. This permits Döhler to supply everything from one source: from the product idea to the flavour, sweetener and functional ingredient. Vitamin waters can be colourful, making them a true eye-catcher on shelf. Each bottle has its own colour code and delivers a very specific functional benefit. Their colourful design also makes vitamin waters a genuine lifestyle product, as Döhler Market Research has confirmed: colour is in! This trend is a motif running through the entire consumer goods industry. And this is why their colourful diversity speaks above all to the hip, healthconscious and trend-conscious target group. Drinks as a fashion accessory a notion not so wide of the mark as might at first be thought. For the calorie-conscious consumer the DöhlerGroup has also developed calorie-reduced concepts.

Why minerals, vitamins and more? The range of ingredients that can be added to vitamin waters is enormous. Many functional

ingredients, however, make heavy demands on processing to preserve their nutritional properties. Thanks to a team of specialists and a technical service team, Döhler is able to provide its customers from the beverage and food industry with expert advice on all issues surrounding the various ingredients available. In addition to the basic technical conditions, consumers’ wishes play a key role when it comes to using a particular ingredient. Today’s consumer is far more enlightened and sceptical. Advertising messages on packaging are queried sceptically: “Is there really something in it for me?” The consumer basically pays attention to products with added health value, but not all ingredients have caught on with the consumer. Credibility is, therefore, a crucial factor in the functional food market. This was also a key finding of Döhler’s market research division in Darmstadt, which tracks both the local and international markets. Particularly credible are ingredients we have grown up with, such as minerals, vitamins and dietary fibres. Together with fruity fruit extracts and natural flavours, these alone offer numerous positioning opportunities which the DöhlerGroup has transformed into eminently marketable product concepts.

glacéau vitamin water

rom its initial launch in the US in 2000 when glacéau was owned by Energy Brands headed up by Darius Bikoff, and featured on one of the first covers of our magazine bottledwaterworld (December 2000) the brand has had an impressive rise to fame. The Tata conglomerate already second in the global tea market - took a 30% stake in glacéau Vitaminwater in the US in 2006 and was sold a year later for $4.2 billion to The Coca-Cola Company, who now distribute it across the globe via its bottlers. glacéau vitaminwater has been a great success since its launch in Great Britain just two years ago. It is now widely available across the UK in a diverse range of retail channels and is worth nearly £8 million in retail nationwide, up 200% year-on-year1.

Health trend Consumers are continuing to look for healthier options and those products that offer additional benefits, illustrated through the growth of Health and Wellness brands across the Soft Drinks category. Coca-Cola Enterprises (CCE) has an expanding range of products within this area, in particular the functional water brand glacéau vitaminwater.

glacéau vitaminwater glacéau vitaminwater is a range of functional waters specially formulated to help people on-thego get more of the vitamins and hydration they need to get through the day. There are seven glacéau vitaminwater varieties and each

contains spring water plus a combination of valuable nutrients to deliver a specific benefit. Jason Hood, Head of glacéau at CCE said: “Following our early success and with exciting plans in the pipeline for summer, we feel that we have built a genuinely strong foundation for the brand delivering strong consumer loyalty, as well as wide range of flavours for many different occasions. Our consumers now know to look to us for something ‘different’ and 2010 will see us further develop the brand with strong innovation, more high profile marketing and the same strong commitment as ever to the ongoing development of the glacéau vitaminwater brand proposition.” 1

AC Nielsen Total Coverage MAT to 13.03.10.

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SPECIAL REPORT 33

Energy drinks and shots Click here to subscribe Energy drinks - now an accepted high value item in the soft drinks industry - are diversifying and appearing in hybrid formulations and varying formats with broader appeal. The fastest mover in the energy drinks category, energy shots, are rocketing off the shelves in the US. And now they are coming to Europe. The tell tale impulse spot by the till is key, along with highly effective marketing and ingredients. Small packages with big value make great commercial sense.

A global concept for success

nergy drinks currently rank among the most successful beverage concepts worldwide. Growth of around 10%* is forecast globally for 2010. In demand are new flavours and natural product variants with a juice content of up to 50%. At the same time, energy shots are booming in Europe. Thanks to international market research, 18 production and applications centres, as well as sales operations in 130 countries, the DöhlerGroup understand the trends and needs of the various markets. The company has developed market-driven energy shots which meet Western European statutory requirements. In addition to the appropriate concepts, Döhler also provides the appropriate ingredients - from flavours, colours and sweeteners to functional ingredients.

In recent years, energy drinks have energised the soft drinks industry in the truest sense of the word. The success of the first products introduced in the late 80s was based chiefly on a popular taste combined with a strong brand and understanding of consumer needs. Since then the market has developed through an increased number

Sales figures of energy drinks in Western Europe indicate rapid development of energy drinks in new flavours and, equally, through energy shots. The sales figures of energy drinks in Western Europe indicate rapid development. Whereas only about 440 million litres were sold in 2003, sales in 2009 already stood at 1.1 billion litres. The biggest market for energy drinks in Western Europe is Great Britain, at some 470 million litres, followed in second place by Germany with around 250 million litres*.

DöhlerGroup Senior Marketing Manager Herbert Eickmeier New target groups through fresh flavours There has also been significant expansion of the target group. While energy drinks were initially consumed by very young adults eager to try something new today those 30+ are the target group. A survey by Döhler Sensory and Consumer Science has revealed a need for energy not currently catered for. Across all age groups, 76% of those questioned are looking for more taste diversity. Döhler expects high growth rates to continue in this segment and is responding with innovative tailored concepts.

Juicy energy drinks natural energy boost The trend to healthy and natural products has been one of the strongest in the food and beverage market. Fruit juices produce a very positive image with the consumer so juicy energy drinks were among the first innovative hybrid products. Juice energy products can be positioned in respect of occasion, target group and image. The classic ingredients taurine, glucuronolactone and inositol, are dispensed with and replaced with other natural ingredients such as guarana. The so-called superfruits such as cranberry, açaí or pomegranate are considered very healthy, due to their high polyphenole

content. Döhler offers a wide portfolio of juicy energy drink concepts with a juice content of 25-50%.

Coffee energy drinks - energy meets lifestyle Coffee, too, is popular when creating new flavours in the energy drinks segment, as it has become a lifestyle and trend product. Latte macchiato, espresso, café au lait and cappuccino are enjoying enormous popularity to provide an energy kick any time of the day. So the combination of coffee and energy drinks is a logical step.

Energy shots - small but effective! Shots are the most dynamic segment in the energy drinks category. Although energy drinks have long been sold in small bottles in Asia, it was a number of years before the shot concept was established in the US. However sales by volume and value are spectacular - and at litre prices unrivalled in other categories. Döhler has ‘Europeanised’ the products in relation to taste and statutory requirements - using less taurine and 150mg/100ml caffeine, equivalent to two cups of coffee. Döhler energy shots vary from classic and juicy flavours to innovative variations such as the cherry-menthol combination. *Döhler Market Research/Canadean

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Go Fast going faster

Go Fast Managing Director Kris Yule

o Fast! Sports & Beverage Company is headquartered in Denver, Colorado, and has its own clothing line sold around the world through a network of retailers and online. Go Fast! energy drink is now available in 14 countries and through the company’s website. It was launched in the UK in 2007 and is available in 250ml cans in both Original and Ice Tea variants.

Kris Yule

New flavour variants are being worked on - coconut and iced tea In 1996, three years after surviving a horrific plane crash in which sixteen people died, Troy Widgery founded Go Fast! Sports. The former World Class competitive skydiver from Colorado, has forged links with many sports interest markets including skiing, snowboarding, jet skiing, wakeboarding,

triathlon, mountain biking, road cycling, auto racing, BASE jumping, moto-cross and many more. With distribution in the US, UK, Holland, Belgium, Germany, Switzerland, Hungary, Czech Republic, Mexico, Jamaica and New Zealand, more launches are planned for 2010. “In terms of recent developments, well the focus has been on securing listings for the shot and, in the last few months, they've signed up Esso, Tesco One Stop and BP (Scotland). “This doesn't take into account the independents and

Now available in 14 countries

Monstering the market

ccording to the 2010 Britvic Soft Drinks Report, glucose and stimulant drinks resistered a healthy 7% increase in sales in the UK to £567 million, making this once again the top-performing sub-category. Although its growth was down on the 12% achieved in 2008, it remains the third largest sub-category with a growing share of the total soft drinks market. The big stimulus was provided by Relentless and Monster, which together accounted for 58% of the growth. The key to stimulant drinks’ remorseless rise is increased distribution, for both new and existing lines. Overall, distribution rose by 12%, with new to the UK brand Monster accounting for a quarter of this. In 2009’s price conscious environment, maintaining growth for this

high-ticket sub-category was also a marketing challenge. One key to success was a 20% uplift in promotional support, raising the proportion of sales on promotion by a third to 42%. The other was a sharp rise in packs at sub-£2 price points. These drove two thirds of the sub-category’s 2009 growth and now account for 29% of sales.

convenience store accounts that have come on stream. “From a marketing and communications perspective, there is a real job to be done to convince the trade of the benefits of the energy shot as a ’complementary’ product in the energy category and to help the consumer to understand the nuances between product positioning and functional effect that define shots and energy drinks. On the new product development front, 99p price-marked cans are being introduced to the wholesale channel; new flavour variants are being worked on - coconut and ice tea - so it’s all go!“

Britvic Sales Director Murray Harris diet carbonates, which declined by 3%. Brazil was also one of the most confident nations in 2009, ranked third in the global Consumer Confidence Index. This confidence is set to continue in 2010, as Brazilian

consumers are among the most likely to go on a postrecession spending spree.

Brazil - sports and energy drinks provide the stimulus Enthusiasm for sport and energy drinks is high in Brazil, driving runaway growth of 21% and 41% in 2009 respectively. All subcategories performed well except

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Energy drinks and shots Click here to subscribe

Energy shots - niche sector with considerable potential Zenith International Market Intelligence Analyst Esther Renfrew

nlike the well established energy drinks market, typically packaged in volumes of 8oz (250ml) or above, the energy shot concept is only a very recent phenomenon, which only really started to get underway in 2007. With ’supersize’ 16oz (500ml) and 32oz (750ml) cans being the natural and seemingly preferred progression for energy drink medicine bottle style roots (Taisho Pharmaceutical), the super small, 3.3oz (100ml) or less, energy shot market is growing at a significant rate. Manufacturers and consumers alike, the sector is showing signs of coming full circle. In its embryonic stage, the energy shot drinks segment represents a very small niche within a niche compared to the overall energy drinks sector, yet holds considerable potential. Within the particularly fast growing US market, Zenith International envisages average year-on-year growth rates of around 65% for the next two year period, with growth rates in Europe averaging at around 60%, although potentially higher should more manufacturers start to identify the region as a lucrative market for product laun. With the regular energy drinks market starting to suffer from effects of overcrowding and with manufacturers finding it increasingly hard to carve out their niche in such a marketplace, energy shot drinks provide another possible hook for manufacturers to drive more value out of the market. Alongside ’healthy energy’, a segment that has evolved through consumer demand for products that use more natural energy ingredients than the

traditional caffeine and taurine loaded drinks, energy shots have been tipped as one of the main emerging trends in the energy drinks category. Whilst most energy shot drinks are indeed extensions to existing energy drinks brands, the possibilities in terms of applications and positioning - be it a still drink, soft drink, sports drink, dairy drink, juice drink or otherwise - are numerous. This makes the category attractive not only to existing energy drinks operators but also to other beverage firms such as dairy or juice drink manufacturers. The National Association of Convenience Stores (NACS), one of the drinks industry’s most influential sources. In an announcement made in November 2008, the body stated that energy shots should be considered a category in their own right and not as beverages, since they do not provide any level of refreshment as is expected from a longer drink.

system for functional ingredients”. If it suits manufacturers to say it, there is clearly scope for energy shot drinks. Potential challenges to introducing an energy shot include: • Cannibalisation of existing energy drinks lines • Identifying the ideal target market and carving a niche • Route to market - unless an existing distribution network is in place • Consumer scepticism over product claims • Current economic climate - people may cut spending on such lifestyle products • Significant unit sales needed to make an impression on overall volumes • Higher production costs if copackaging arrangements needed, impacting potential margins • Danger of overcrowding in the future, although room for new products at present Despite these potential negatives, which would be valid

Esther Renfrew

considerations for any new operators contemplating market entry, the presence of the most powerful energy drinks players combined with new opportunities for innovation and diversification could help tip the balance in favour of energy shot drinks. The 2009 Zenith International Report on Energy Drinks and Shots contains global market analysis and company brand profiles. Tel +44 (0) 1225 327900, fax +44 (0)1225 327901 or email MI@zenithinternational.com

Boost in the recession “Boost Drinks offers a serious alternative to premium with energy shots and drinks at lower prices,” explained Managing Director Simon Gray. The pace of life has not slowed and we are seeing growing demand for energy and value. According to IGD, 28% of consumers changed shopping behaviours due to the recession but 75% do not expect to change back when it ends.

This statement came about as a result of market leading 5-Hour Energy producer Living Essentials filing a suit to prevent the association classifying its shot as a beverage at the NACS show. To quote the company’s Communications Director Carl Sperber, these compact products are merely a “small liquid delivery © beverage innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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BENEO’s Palatinose scales new heights with Malcolm Law

n a challenge that would stretch anyone’s endurance limits, 49 year old Malcolm Law pushed himself to his own limits by achieving a run distancing 360km (223 miles) within seven days. Raising money for the Leukaemia & Blood Foundation in memory of his brother, athlete Malcolm Law conquered the 7 in 7 Challenge in New Zealand with the help of BENEO’s Palatinose (isomaltulose). The run is the equivalent of running nine offroad marathons and climbing a 3,700 metre mountain twice - all in seven consecutive days. A keen sportsperson with a raft of knowledge of energyenhancing products, Malcolm Law trialled Palatinose during the challenge and was able to reveal its success at boosting his performance. Law commented: “I was looking for something I could add to pure water without tainting its flavour, but would give slow-released energy. Sports drinks are great but I tend to find that after a few hours of endurance sport I crave fresh water and with Palatinose, I was able to get the refreshment with the extra calories.” A seasoned distance runner, Malcolm chooses energyenhancing products to sustain his performance on long runs.

I really value the slowreleased energy effects New to Palatinose, Malcolm was recommended the functional carbohydrate by Frucor, the leading company for energy drinks in New Zealand and Australia. For the week of the 7 in 7 Challenge, he used Palatinose every day, mixing it with water. Speaking about the results, Malcolm said: “Palatinose worked so well for me. I really value the slow-released energy effects because it meant that in the middle of a run where I couldn’t take in any solids, my energy levels didn’t drop. It also has a mild sweetness and no flavour, which is great when added to water - I’d recommend it to anyone!”

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Powershot organic energy in the leisure sector

he Powershot brand was launched in 2005 by Danish entrepreneur Jorn Senger. In 2009, Powershot launched in the UK as Europe’s best selling energy shot, within the VMS (vitamins, minerals and supplements) market. This April, led by Managing Director, Tony Parente, Powershot launched its 330ml Organic Energy drinks at the Natural & Organic Products Show at London Olympia. The drinks offer natural organic goodness with a top quality, antioxidant blend of tea extracts, panax ginseng, fruit juices and high purity mineral water. Each 330ml bottle of Powershot Organic Energy contains as much tea as that in an average cup of tea.

Consumer apathy towards gallons of chemical based energy drinks is increasing The variants have been formulated to provide great refreshment and a daily energy and wellbeing boost. The superfruit açai is common to all three drinks alongside the ginseng and low GI organic agave natural sweetener. The flavour choices are: • Green tea and ginseng with pomegranate and açai • Black tea and ginseng with peach and açai • White tea and ginseng with cherry and açai Lifesmart Health & Leisure Club extends its whole body approach to its drinks. Managing Director and holistic health expert Carole Caplin comments: “We are careful about the drinks that we offer our Members.

Powershot provides a popular balance with the ideal organic ingredient base combined with a thirst quenching taste that members enjoy.” PowerBrands Organic energy drinks are an alternative to the spike and crash energy drinks on the market, extended by a range of natural shots. According to the company, these natural shots contain no alcohol, taurine, guarana and only a small amount of tea caffeine. They are sweetened with either honey or a touch of glucose. The natural shots are based on panax ginseng or gingko biloba and are aimed at the sports, lifestyle and VMS markets. The natural ingredient shots are sold in cards of 2x10ml vials and packs of 5x10ml

vials: Powershot Original with chinese panax ginseng, Powershot ginko biloba, Powershot double boost with Chinese panax ginseng & ginko biloba. Each is sweetened with either honey or glucose in spring water. In March 2010, an independent and unsolicited audit by The University of Bedfordshire’s Sports Science Department, led by Professor John Brewer, named Powershot as one of the two leading energy shot brands in the UK. In a report that clearly lauds ‘Brains over Brawn’, most major shot brands fell by the wayside in terms of genuine energy impact. Powershot Sales Director, Ray Rohrbach commented: “Consumer apathy towards gallons of chemical based energy drinks is increasing and consumers are looking for a natural, smaller source of energy. With the increasing consumer desire to promote health and beauty from within

Powershot is well placed to capitalise on these early trends.” Marcus Chidgey, Captive Minds Group CEO commented: “The energy shot market is forecast to reach $700million in the US in 2010, being the fastest growing sector of the energy drinks market. The UK and rest of Europe are tipped to mirror this trend. Using our leisure and hospitality clients, we established Powershot early as a natural market leader.”

The energy shot market is forecast to reach $700million in the US in 2010 Jorn first came upon the concept for the Powershot brand when boarding a flight from Shanghai to Sweden. Upon seeing the Captain and the crew downing liquid shots a slightly concerned Jorn enquired as to their content. The Captain himself explained they were natural panax ginseng shots, a natural energy source that is widely used across China, but relatively unknown in the rest of the world. Powershot was born through the natural consumer demand for a healthy, long lasting natural energy product. Powershot continues to source its high quality panax ginseng root from the far flung northern provinces of China where it is grown in secret. Today consumers tap into a new and healthy natural energy source thanks to the tenacity of a Danish entrepreneur and a highly experienced management team.

38 FOCUS

www.foodbev.com/beverage Issue 76 - June 2010

Decaff and more flavours for ’healthy alternative’ iShots

ll Day Energy has made its foray into the UK energy drinks market with what it positions as a healthy alternative to existing energy shots. Called iShot, the new offering has been scientifically developed with a unique combination of B vitamins, amino acids, antioxidants and herbs to create a stimulating shot designed for working people with active lifestyles who could benefit from heightened alertness, focus and energy. In terms of ingredient quantities, iShot contains 15% of the recommended daily allowance (RDA) of vitamin B2, 100% of the RDA of vitamins B3 and B5, 200% of the RDA of vitamins B6 and B9, as well as 300% of the RDA of vitamin B12. In addition, the shot contains glucoronolactone, Siberian ginseng, L-carnitine, guarana and green tea extract, as well as being free from sodium and low in calories to deliver a crash-free and sustained energy boost. Kursat Uysal, Managing Director of All Day Energy, commented: “Most people need an energy boost when juggling the demands of day to day living, such as working late at the office or being on the road. Good nutrition, rest and regular exercise are the best ways to stay alert, however sometimes we need that added boost.”

www.foodbev.com/beverage Issue 76 - June 2010

According to Uysal, the shot’s attractive and minimalist look reflect its quality and consumer appeal amongst working adults, coupled by its ingredients - such as such as green tea, ginseng, açaí berry and L-carnitine which are already commonly consumed by this group in tablet, powder or drink form. As part of its promotion at the Convenience Retailing Show, iShot underwent extensive sampling - tasted by 2,500 people - the results of which revealed that the iShot Decaff (açai berry flavoured), followed by its original counterpart, was considered the best tasting energy shot. These results support those from a survey regarding the shot’s efficacy, in which 96% of participants reported significant increases in energy levels over a five hour period and said they would definitely purchase the product. iShot All Day, packaged in 60ml bottles, is already available for purchase, in the original flavour with an orange flavour variant to follow, along with further iShot Decaff variants.

FOCUS 39

Cans and alubottles

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Easily chilled and with eye catching print potential for shelf stand out, cans and alubottles now meet consumer and retailer demand for portability, resealability and recyclability. beverage innovation looks at the latest options.

Building consumption opportunities Rexam Innovations Manager Stephen Howell

lubottles first appeared in the late 80s in Japan. From a small base this packaging format now has around 10% of the single serve market of 4 billion plus bottles. These range in format from 100ml to 400ml with the most popular being 330ml. The bottles from Japan tend to be squat and low in appearance and when we looked at the various technologies and what western consumers want we

realised they wanted something quite different. They like a longer neck and a narrower bottle, in fact something that looks like a glass bottle in terms of aesthetics, but with differing parameters in terms of performance. The key findings concerning consumer preference are those of appreciation of chill factor and the anticipation of refreshment, which you sometimes get with glass but do not often get with PET. The Rexam Fusion bottle was first seen at Brau in 2009 and following uptake by a number of entrepreneurs is currently being commercially filled and will be seen on shelves later this summer. It is being chosen as the most suitable container for a number of functional drinks primarily with juice and including both beauty and health drinks.

Cool cans for Somersby Apple Cider. Rexam’s thermochromic ink is heat sensitive, and changes colour when the optimum drinking temperature for the cider has been reached. The 33cl aluminium promotional cans will be produced at Rexam’s Fredericia plant in Denmark, supported by a marketing campaign focusing on outdoor events and cold elements to activate the ink

Other sectors taking an interest, are the beer market opting for the 33cl and energy drinks manufacturers who are choosing the 25cl format.

Stephen Howell with Fusion

Arizona has launched AZ Energy in the US, in aluminium cans from Rexam

with less environmental and cost impact than an anodised bottle. The key reason for investing in this route is not to remain small but to grow it. Extruded aluminium is limited in terms of capacity at 200 bottles per minute. Although Rexam is currently filling the Fusion bottle at a similar rate it has the potential to fill just like a standard can at 1300-2000bpm. Necking speeds are now around 200bpm, on machinery supplied by Frattini-Tech of Italy, with the potential to increase this substantially.

It has the potential to fill just like a standard can at 13002000bpm

In comparison to other aluminium bottles produced using extruded technology, Fusion is a lighter weight bottle using less raw material and with the potential for a polished surface rather than brushed aluminium.

Three options for resealability

The Fusion bottle is produced using drawn wall technology

The main benefit of the bottle is that it can be resealed without

a plastic out-seal. The closure choice to manufacturers is therefore ROPP (roll on pilfer proof), Crown Cork, and the MaxiT - the premium ring pull cap from Japanese Crown Cork, meeting the needs of a number of occasions. These are clearly exciting times. Since the early days of experimentation the last four years have seen some serious investment totalling over €6 million. Manufacturers can see this new format as an opportunity to grow consumption opportunities and to build brand loyalty. What has been obvious is that the smaller emerging brands take less time to make decisions and can get to market faster. In terms of pioneering this market it is predominantly, but not always, the new brands that are opting for this contemporary format. Look out for the new launches on the shelves using the Fusion alubottle later this summer in Europe and also in the southern hemisphere.

40 INSIGHT

www.foodbev.com/beverage Issue 76 - June 2010

Click here to subscribe © beverage innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

Focus on the French market Caroline Archer-Reed on behalf of Beverage Can Makers Europe (BCME)

lthough many packaging types have suffered during the recession of the past two years, the European market for can packaging was down just 2% in 2009, which in comparison with the fate of many packaging types we see as a positive result. According to data from AC Nielsen the use of cans for beer packaging rose by 13% in the UK, and in France the overall market for soft drinks saw use of cans rise by 7%. This was particularly due to growth of private label, which has experienced notable segmentation into gourmet and everyday ranges. Cans can be filled at higher speeds and distributed more efficiently. Such cost effective economic advantages mean there is no need to revolutionise the product, although use of matt and special finishes is differentiating product further on shelf. In comparison to the UK market where multi-packs are more common, single packs have seen substantial growth in France. This has been prevalent in the speciality beer market where 50cl packs of Belgian beers for example are able to command a higher price through individuality and heritage. Growth in the soft drinks market for cans has been

spurred by the 15cl mini can. Launched initially for airlines, these are now sold in 12 packs in supermarkets and appeal both to children and interestingly women who are looking for a quick refresher. Brands packing in this format include Coca-Cola, PepsiCo and Orangina-Schweppes. These are packed by co-packers, such as Refresco in the Netherlands, and a number of own brands are looking at range extensions in the same format.

Red Bull. Although a number of smaller energy brands are also making inroads through less aggressive pricing. Larger 50cl cans such as No Fear and Coca-Cola’s Burn are attracting attention through using Ball’s re-sealable can. Another growth area is that of single serve ready to drink mixers both with and without alcohol. These meet consumer needs for convenience and an end to flat fizz once a bottle has been opened. Along with substantial benefits regarding ease of distribution and recycling the can sector has a cost optimising and innovation led future.

Cans have 22% of overall soft drinks share in France. The slim can market has grown considerably with the rise of energy drinks such as Dark Dog and the recent introduction of

Packaging container growth, France, 2009 % EVOL VOL GLASS -1.2 Retail market: total of soft drink, beer, water, juice, syrup, concentrate and cider

BRIK 0.7 OTHER 0.9

Source: Nielsen

MARKET PLASTIC

2.3 2.6

CAN

7.7

www.foodbev.com/beverage Issue 76 - June 2010

INSIGHT 41

Cans and alubottles

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Digital modelling software Kris Van Bael, EskoArtwork Product Manager 3D and Visualization How has the industry evolved to aid alubottle and can design?

and availability of the necking line (which results in a loss of

productivity and so is frequently not practical). Virtual mock-ups

By integrating 3D visualization in the design process, the artwork operator can instantly assess his design in 3D. He can see how the artwork will distort in the neck (and take precautions) and see how opaque inks behave differently from transparent inks. With the limitations of the dry offset press, the choice of printing colours is important and the design has to go hand in hand with that.

How does Studio Toolkit work with round or irregular shapes? For the popular standard sized beverage cans (European and American sizes), we have prepared high quality, and technically accurate 3D models, that are ready to use with Studio. Other shapes can be prepared with 3D modeling software. Once you have invested time in preparing such a shape, it only takes a few minutes to prepare the virtual mock-ups.

How can costly multiple mock ups be avoided? Good can mock-ups require printing plates (which are costly) for the proofing press

(interactive 3D images) can be a faster and more cost effective alternative. The idea is not to eliminate mock-ups altogether, but rather to try out more ideas and so reduce the number of physical mock-ups.

EskoArtwork’s visualizer in action

Alumi-Tek for Pure Pro

BB has introduced Pure Pro 50 ready to drink shakes in recloseable, lightweight, 16oz Alumi-Tek aluminum bottles from Ball Corporation. “The resealable AlumiTek aluminum bottle is a sports nutrition industry first,” said Alan Yengoyan, General Manager, Growth Initiatives, ABB. “It distinguishes Pure Pro 50 from the pack and represents an incredible convenience to hard-training athletes and weekend warriors who will appreciate the way the aluminum container keeps this performance beverage cool while giving them the option to re-cap it and save some high quality protein for later.” According to ABB, Pure Pro 50 provides 50g of protein

from milk and whey and is formulated for bodybuilders looking to move up to a heavier weight class, athletes who typically burn a lot of calories when training or competing and individuals who need a little help hitting their daily protein target. This is the first sports nutrition beverage to be packaged in the Alumi-Tek bottle, which is currently used for a wide variety of other beverages including beer, energy drinks, coffee drinks, enhanced water and nutraceutical beverages. The 14.5oz shakes are available in five flavours.

Ball leverages its two-piece aluminum beverage can manufacturing expertise to produce the Alumi-Tek bottle because the manufacturing technology for both packages is very similar. Alumi-Tek bottles have the same high

quality graphics found on cans and are decorated with the same printing process. Ball’s aluminum beverage can plant in Monticello makes all three bottle sizes - 8oz, 12oz and 16oz bottles.

Digitally printed packaging Tonejet is now in a position to confirm the first use of its advanced electro-static drop-on-demand digital print technology in a commercial print run of cans.

license agreement. Such print runs raise all kinds of questions regarding the delivery of highly tailored promotions via digitallyprinted packaging.

This set of cans was printed specifically for Air Berlin by Ball Packaging Europe. Last year Tonejet and Ball signed a strategic technology purchase and intellectual property rights

42 INSIGHT

www.foodbev.com/beverage Issue 76 - June 2010

Events

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EuroPack Summit 2010 - 23–25 June, Monaco

nnovative packaging is no longer about progress, it’s about survival. Tomorrow’s package has to provide a holistic experience for the purchaser, representing not only the brand, but product quality and company philosophy.

EuroPack Summit 2010 at Le Méridien Beach Plaza, Monaco provides an opportunity to explore the current solutions to these challenges on multiple levels.

In order to provide competitive packaging, executives must become architects, stepping further outside of their box to integrate design with product development and marketing. Tools of the digital age must be harnessed to find new and creative ways to communicate with the consumer. Meanwhile, regulations and budgets must be obeyed, putting strain on the resources

Case studies, presentations and keynote addresses by some of the industries’ most innovative leaders in food and beverage manufacturing and retail will provide the experience and insights on the obstacles that they have overcome. One-toone meetings with packaging solution providers in the packaging industry will offer an up close and personal chance to see all that the industry has to offer. An opportunity to network, establish connections, exchange ideas and gain knowledge!

available to packaging professionals aspiring to meet the demands of the modern end user. This leaves them to perform a delicate balancing act between efficiency, differentiation, consumer satisfaction and compliance. In the midst of this transformation, manufacturers and retailers must diligently update themselves on the latest technologies, processes and methodologies that will create a competitive advantage. The

Bar.10 - 15-16 June, London

he Bar Show for the premium hospitality industry, is held at the Business Design Centre, Islington.

Exhibitors include: Akvinta, Cazadores, Leblon Cachaca, Bacardi, 42 Below, Pernod Ricard, Havana Club, Absolut, Chivas Regal, Beefeater, Carounn Gin, Fentimans, Funkin, Geranium Gin, Gallaher, Goslings, Hangar One, Haymans, El Dorado, Kaezen Design, Go In GmbH, Martin Miller’s Gin, Inspirit Brands, Satelliet Browns, Ponthiers S.A, Love Drinks, Monin, Ron Barcelo, Wyborowa and more.

New this year is the London Cocktail Summit, with a programme of drinks seminars, featuring worldleading bartenders and drinks

experts. Highlights include The Connoisseurs Club’s Cocktail Theatre, The Shark Pool: Bar! Sink or Swim! Competition where contestants pitch their brainchild to a Shark Pool of judges from The Breakfast Group, Concept Venues, Callooh Callay, Living Ventures Restaurants, and Pernod-Ricard UK. Plus the Ultimate Cocktail Competition - where finalists demonstrate in Classic Revival, Tiki, Modern Cocktail, and Molecular creations. Plus The Bartender Black Box Competition - mixologists create original drinks from a surprise array of ingredients. And the Drink Factory which was launched last year by innovative bartenders, Tony Conigliaro, Spike Marchant and Giles Cowan. Bar.10 welcomes back esteemed alchemists to show offf the latest liquid inventions using smokeguns, centrifuges, vacuum machines and paraphernalia.

Summit Programme Attendees follow a personalised agenda designed to maximise their limited time and to effectively meet their business needs and interests. The speakers include: Lars Wallentin, Packaging Communication Specialist; Mike Gamble, Director Innovation, Design & Development, The Coca-Cola Company; Dr Mike Okoroafor, VP Packaging R&D & Innovation, HJ Heinz; Roger Zellner, Director Sustainability, Quality, Research & Development, Kraft; Sonia Raja, Head of Packaging, Tesco. www.europacksummit.com

Sial & IPA - 17-21 October, Paris In 2010, Le Parc des Expositions de Paris-Nord 2 Villepinte has a new 36,000m hall. To make best use of time for visitors from all over the world to SIAL - the global trends and innovations exhibition, a second exhibition SIAL IN-FOOD will take place as a showcase for semiprocessed food products, ingredients and outsourcing solutions) along with IPA (the

world food process exhibition) from 17-21 October 2010. SIAL (Salon International de l’Alimentation), boasts 5,500 exhibitors from 104 countries, including 78% international exhibitors and 147,860 visitors including 58% international visitors. IN FOOD will have more than 110 exhibitors and, like IPA, expects over 50,000 visitors.

Food Protein Innovation - 16-17 June, Rotterdam The 2nd Food Protein innovation Conference will focus on new developments in animal and plant based proteins in the area of health and nutrition. Many protein ingredients such as canola, chia and almond proteins are being developed. The current price increases of milk proteins have also led to a shift in

interest and importance of vegetable proteins. More industry co-operation is needed to make better foods. Senior managers with food manufacturers, food ingredient companies, food product and processing development and service companies, will all contribute.

www.foodbev.com/beverage Issue 76 - September 2009

EVENT pREVIEW 43

Bev tech

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beverage innovation technical news

SIPA develops Power Plus container SIPA-designed packaging was chosen for the Power Plus energy drink launched at the 25th Southeast Asian Games held in Vientiane, Laos, with Power Plus on hand as one of the Games’ main sponsors. Competing with Red Bull, M-Max by Osotspa and Gatorade, producer, Thai Beverage Plc, aims to make Power Plus the No2 selling sports drink in South East Asia by 2012. The 325ml hot fill bottle was designed in co-operation with SIPA’s Hanghzhou, China - Sipa Machinery Hanghzhou (SMH) close to Thai Beverage.

SMH’s designers made it possible to go straight from the sketch phase to prototyping: the client was immediately won over by the interpretation of the brief. The ability to transfer this brief into shapes and the complete knowledge of all technical and manufacturing aspects of the bottle, enabled SIPA to reduce development times and release the bottle onto the market quickly. SIPA manufactured the test mold and blowing molds for the SIPA SFL linear blowmoulders installed at a Thai converter, a Thai Beverage partner that manufactures the containers.

Slingshot bottle cuts weight and carbon footprint What do you call a truckload of PET bottles that weighs half a tonne less than before, yet contains 7,650 bottles more? Answer: a much-improved carbon footprint. AriZona Iced Tea benefits from Graham Packaging’s Slingshot lightweight barrier PET bottle, introduced as an upgrade for the AriZona Iced Tea 16oz bottle.

Graham Packaging Vice President Global Marketing and PET Business Manager Mark Leiden said: “The Slingshot bottle is 20% lighter than AriZona Iced Tea’s old bottle and packs nearly 350 more bottles to a pallet. The consumer also gets a lighter bottle that’s easier to handle. “Our customers have made it clear that reducing the carbon footprint of their products is a real goal, not just something they give lip service to,” he said. “Graham Packaging has made a major commitment to improved sustainability.” The Slingshot bottle eliminates the need for panels, features an amber colour to protect the natural antioxidant properties of the beverage and barrier technology to prolong the natural taste.

Sismatico UK buys Super Track Systems

To compliment its Empty Can Handling lines Sismatico UK has announced the purchase of Super Track Systems. STS has a substantial customer base and a reputation for supplying high quality Ionised air rinsing solutions for empty cans and cylindrical cartons. STS prefer to keep the rinsing section as close to the filler process as possible to ensure the cans are kept in their cleanest condition.

The pulsed DC Ionising system uses leading technology to rinse the cans effectively to achieve a 78% particle removal rate when checked under a 40x microscope. The Ionised Air Rinser footprint can be implemented to replace any existing water rinsing system which can generally be justified against the water saving costs alone. Line speeds from 1000CPM to 2000CPM can be catered for on a single lane system. This purchase strengthens the Sismatico empty can handling supply package. All systems are designed, built and assembled within the Sismatico facility near Doncaster.

Bulk bag weigh batch system Flexicon Europe has developed a combination Bulk Bag and Manual Dump Batching System. A programmable controller with manual start button activates a flexible screw conveyor to load the first ingredient into the central weigh hopper at maximum feed rate. Load cells supporting the hopper transmit weight gain information to the controller that steps-down the feed rate to dribble prior to reaching target weight. The unloader features a SpoutLock clamp ring that forms a high integrity seal between the clean side of the bag spout and the clean side of the equipment. To promote total evacuation of material, a Tele-Tube telescoping tube maintains constant downward pressure on the clamp ring and bag spout, elongating the bag as it empties, while Flow-Flexer bag activators raise the bag into a steep V shape, directing material into the bag outlet spout.

A Power-Cincher flow control valve allows dust-free retying and removal of partially-empty bags. A removable bag-lifting frame allows loading of the lifting frame with bag intact, onto a cradle at the top of the unloader frame posts. Conveyors handle a variety of free and non free flowing bulk materials including products that pack, cake, smear or easily degrade, with no separation of blended products.

44 TECHNICAL NEWS

www.foodbev.com/beverage Issue 76 - June 2010

Bev tech

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Bericap Hexalite for Naya Waters Naya Waters of Canada has reduced plastic volumes in both bottles and closures. It converted two filling lines to Bericap’s 29/25 HexaLite closure at the end of 2009. The HexaLite 26 FB, is suitable for light weighted 26mm neck finish and the HexaLite 29 FB, is suitable for a light

weighted 30mm neck finish. All HexaLite closures are equipped with a slit and folded safety band (Flexband) for efficient TE performance. Converting from a 30/25 neck and closure to HexaLite 29/25 saves 33% of resin in the neck and closure weight.

Everyday e-pallet processing Expanding pallet specialist IPP Logipal has updated its order processing website, www.ePalletPartner.com, to

provide customers with easier access to highly accurate account status information. The system enables customers to place orders and see receipts, stock, despatch and delivery status. It has the ability to keep track of orders in real time and features an automated key performance indicator (KPI) package to drive improvements across the supply chain.

Biodegradable packaging boards Stora Enso is meeting the growing demand for biodegradable packaging solutions by expanding its selection of biopolymer coated packaging boards. Biodegradable coating options are available for a number of the company’s board grades for use in cups, plates, trays and folding cartons. The paper cups used at the Finnish Pavillion at the World Expo in Shanghai are made from biodegradable Cupforma board. “The World Expo in China is a great place to present bio cups to the world as the result of our pioneering work in developing fully

www.foodbev.com/beverage Issue 76 - June 2010

biodegradable packaging materials,” said Liquid and Food Service Board Sales and Marketing Director Juha Kiviranta. The Stora Enso Cupforma board family offers biodegradable material options for drinking cups for all major end uses, such as cold and hot drinks, ice cream and yogurt. Cupforma Classic Bio meets the compostability requirements of the EN 13432 and ASTM 6400 standards.

TECHNICAL NEWS

Products and services

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Reach thousands of decision makers in the beverage industry worldwide by advertising in the beverage innovation marketplace.

per year •Mini display - 7 centimetres x single column: £580 per year •Classified plus(Onelogo:off£415 payment for advert to appear within ten consecutive issues) To book your advertisement or to discuss other options, contact: Jesús Luna-López on +44 (0)1225 327862, e-mail: jesus.lunalopez@foodbev.com

Jesús Luna-López

Flavours, colours and ingredients Colours

Flavours and flavouring

Flavours, Colours, Extracts… Claremont Ingredients Ltd Unit 2B, Aspect Court Silverdale Enterprise Park Newcastle-under-Lyme, ST5 6SS United Kingdom Tel: +44 (0)1782 623883 Fax: +44 (0)1782 623773

help@claremont-ingredients.co.uk www.claremont-ingredients.co.uk

For all your beverage advertising needs, call +44 (0)1225 327862 Kanegrade Ltd Ingredients House Caxton Way Stevenage Herts SG1 2DF Hertfordshire, United Kingdom Tel: +44 (0)1438 742242 Fax: +44 (0)1438 742311 E-mail: info@kanegrade.com Website: www.kanegrade.com

foodbev com A world of food and drink

Don’t forget . . . a wealth of online advertising opportunities exist at www.foodbev.com/beverage 46 MARKETPLACE

www.foodbev.com/beverage Issue 76 - June 2010

Click here to subscribe Please turn to pages 48 and 49 for more marketplace entries

Flavours, colours and ingredients Flavours and flavouring

Machinery and equipment

Fruit juices and compounds

Caps and closures

DAMZY© CLIP

Kanegrade Ltd Ingredients House Caxton Way Stevenage Herts SG1 2DF Hertfordshire, United Kingdom Tel: +44 (0)1438 742242 Fax: +44 (0)1438 742311 E-mail: info@kanegrade.com Website: www.kanegrade.com

SVZ International BV Oude Kerkstraat 8 4878 AA Etten-Leur The Netherlands Tel: +31 76 50 49 494 Fax: +31 76 50 49 400 E-mail: info@svz-nl.com Website: www.svz.com

Akline Plastics Z.I. Les Grands Vris, 74540 Alby Sur Cheran, France Tel: +33 (0) 450 109 300 Fax: +33 (0) 450 109 307 E-mail: contact@damzy.com Website: www.damzy.com The Damzy© Clip opens, closes, preserves...

Flavours, colours and ingredients Fruit juice concentrates William Ransom & Sons PLC Alexander House 40a Wilbury Way Hitchin Herts, SG4 0AP UK Tel: +44 (0) 1462 437 615 Fax: +44 (0) 1462 420 528 E-mail: info@williamransom.com Website: www.williamransom.com

Fruit juice

Kanegrade Ltd Ingredients House, Caxton Way, Stevenage, Herts SG1 2DF Hertfordshire, United Kingdom Tel: +44 (0)1438 742242 Fax: +44 (0)1438 742311 E-mail: info@kanegrade.com Website: www.kanegrade.com

Caps and closures Ingredients

www.kerry.com www.foodbev.com/beverage Issue 76 - June 2010

MARKETPLACE 47

Products and services

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Machinery and equipment Labelling

Conveying

Sismatico (UK) Ltd Plumtree Farm Industrial Estate Bircotes, Doncaster DN11 8EW Tel: +44 (0)1302 719738 Fax: +44 (0)1302 719222 E-mail: info@sismatico-uk.com Website: www.sismatico-uk.com

Mold suppliers

Shrinkwrapping machinery

SACMI LABELLING SACMI VERONA S.p.A. Via Dell’Industria, 2/A 37060 Mozzecane (Verona) - Italy Tel: +39 045 6347511 Fax: +39 045 6347559 E-mail: sacmilabelling@ sacmilabelling.it

Packaging Bag in box dispensers

Filling machinery

SACMI FILLING S.p.A. Via Enzo Ferrari, 1 43058 Ramoscello di Sorbolo (PR) Italy Tel: +39 0521 695411 Fax: +39 0521 695401 E-mail: info@sacmifilling.it

Process equipment

Labelling

P.E. Labellers S.p.A. Via Europa 25 46047 Porto Mantovano (MN) Italy Tel: +39 0376 389311 Fax: +39 0376 389411 www.pelabellers.it Email: pelabellers@pelabellers.it

Don’t forget . . . a wealth of online advertising opportunities exist at www.foodbev.com/ beverage 48 MARKETPLACE

beverage innovation

advertiser index

Armfield Beneo Palatinit Boxal CHR Hansen Döhler FoodBev Media InterBev Lonza Sidel SIG Combibloc Sismatico SVZ Wild William Ransom

Page

15 9 39 21 52 25 51 2 45 5 41 17 26 37

A. Water Systems S.r.l Località Piana, 55/D 12060 - Verduno (CN) Italy Tel: +39 0173 615636 Fax: +39 0173 615633 Website: www.watersystems.it Email: info@watersystems.it Water Systems can provide complete support to the bottling lines integrators, starting from water purification (cartridges, sand, active carbon, RO filtering systems) through ancillary equipments (CIP systems, bottle rinsing solution preparers, etc), to product processing machines (premix systems, flash pasteurizers, syrup rooms, etc).

For all your beverage advertising needs, call +44 (0)1225 327862

www.foodbev.com/beverage Issue 76 - June 2010

Click here to subscribe Please turn to pages 46 and 47 for more marketplace entries

Packaging Closures

BERICAP Oslo Road, Sutton Fields Industrial Estate, Hull HU7 0YN United Kingdom Tel: +44 (0)1482 82 66 66 Fax: +44 (0)1482 83 28 39 E-mail: info.uk@bericap.com BERICAP is a globally acting manufacturer of plastic closures with 20 factories in 18 countries across the world, on-going projects in several countries of Asia and a network of licensees and partners to supply similar products made according to the same quality and service standards to its global customers; with a mould shop in Hungary and several satellite R&D offices in its main operations, BERICAP is particularly committed to development and innovation in plastic closures for its customers.

“Latin America leaders in Closures manufacture”

IBEROPLAST Avenida Rivera Navarrete 620 Lima 27 Peru Tel: +51 1 430 0061 Fax: +51 1 430 2761 E-mail: info@iberoplast.com.pe Website: www.iberoplast.com.pe

Seaquist Closures Ltd 5 Bruntcliffe Avenue Leeds 27 Industrial Estate Morley, Leeds West Yorkshire LS27 0LL United Kingdom Tel: +44 (0)113 220 3200 Fax: +44 (0)113 289 7323 E-mail: info@seaquistclosures.eu Website: www.seaquistclosures.eu Sports closures and dispensing systems for plastic packaging Contacts: UK: Paul King Germany: Gerhard Brandt France: Florent Gras

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MARKETPLACE 49

Festival connections

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usic and beverage experts Jeremy Paterson of Frukt Music, Rhodri Williams of Gaymers Cider and Steve Smith of Ear to the Ground recently held a session on Music Marketing - here is the lowdown.

“Try asking someone ‘What is the best gig you have ever been to?’ It is the best ice-breaker as you watch someone re-live a great memory. Music truly engages an audience - whether you dance, sing along, wave your mobile phone in the air, or enjoy some banter from the lead singer.” The face of music has changed beyond all recognition over the past ten years. There has been an explosion of live music. This is partially caused by the collapse of recorded music (as people are not willing to pay for it) and the impact of digital. It all began with The Libertines and the Arctic Monkeys, in fact digital music has driven attendance to live events and this is growing across Europe. “There has been a big shift in how people consume. Their needs and wants now include

‘experiences’. And it is all about how these experiences remain with the consumer and ensure repeat purchase. To be remembered as a brand you have to be remarkable ie you have to give to get. And by giving that experience you get respect. “Today we have an incredibly connected consumer,” observes Steve, “and as a brand you have to be seen at the right gigs and with the right artists to give value. We also have to offer something more than just tickets. Perhaps a backstage pass, competition mechanics and secret shows - if you are to win the hearts, minds and taste buds of the consumer. “What is crucial is the reach. Live music is the epicentre of a broader communication blast. The benefit of this integral connection is increased sales and revenue. The emotional intensity of the live event has a halo effect. You can inject the passion from the stage into your brand and then continue this through Word of Mouth and social media.”

“Companies come to us saying: How do we deal with music?” explained Jeremy, ”So how can a brand use that passion point and what is the most effective way to make it resonate in a live environment?”

Gaymers ‘Lost in the Orchard’ campaign The ‘Lost in the Orchard’ campaign will run at music events throughout the UK this summer including Glastonbury and Leeds. Along with hosting acts on an entertainment stage within the Gaymers Lost in the Orchard area, the company also relies on proximity marketing and has a hub strategy in AMG venues across the UK.

Live music is the epicentre of a broader communication blast “We wanted to let consumers know what Gaymers stands for,” said Rhodri: “Heritage, cider and the West Country with a focus on music. The live proposition is designed to give consumers a memorable brand experience, linking the product via a music quiz online and bands playing in the Orchard area.

Jeremy Paterson of FRUKT Music, Rhodri Williams of Gaymers Cider and Steve Smith of Ear to the Ground

“We will have a two for one live music ticket deal on multipacks from early June and also ‘peel and reveal’ cards and POS kits on trade.” Other elements include a digital Quiz app on

Facebook entitled ‘Gaymers Music Quiz.’ Amongst other questions, consumers play to guess who the artist is from a series of amusing descriptions - the fastest to guess wins tickets. “We want to make it into a destination” explained Jeremy - with festival attendees saying. “Did you check out the Gaymers Experience? Let’s go there tomorrow!” Every festival has peaks and troughs - and when the two main stages close it is about dispersing people around the site. This is a place to chill out, with The Cider Choir as brand advocates. Gaymers first started working with music in 2008. Numbers of consumers purchasing Gaymers at festivals has now reached 800,000 with a total 6 million consumers reached across all Gaymers music activity. “A festival is actually an elaborate drink vending machine” explained Steve Smith. “We don’t seek to be a taste maker and align a brand with a particular band - that could be divisive.”

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