zenithinternational
Sample
specialist consultants to the food and drink industries worldwide
Zenith Report Alertness and Relaxation Drinks December 2010
STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & GEOTHERMAL ENVIRONMENT & CARBON PACKAGING & DISTRIBUTION
Contents Introduction
3
Definitions
4
Research note
6
Geographic coverage
7
Executive summary
8
Category overview
9
Market analysis
10
SWOT analysis
11
Ingredients
12
Innovation in ingredients
14
Consumer education
15
Regulatory framework
16
European Union
17
US
19
Canada
21
Japan
22
Š Zenith International Ltd 2010
zenithinternational specialist consultants to the food and drink industries worldwide
Contents US
25
Market volume (2006-10)
26
Market value (2006-10)
27
Market volume forecasts (2010-14)
28
Canada
29
Market volume (2006-10)
30
Market value (2006-10)
31
Market volume forecasts (2010-14)
32
Germany
33
Market volume (2006-10)
34
Market value (2006-10)
35
Market volume forecasts (2010-14)
36
UK
37
Market volume (2006-10)
38
Market value (2006-10)
39
Market volume forecasts (2010-14)
40
Š Zenith International Ltd 2010
zenithinternational specialist consultants to the food and drink industries worldwide
Contents Japan
41
Market volume (2006-10)
42
Market value (2006-10)
43
Market volume forecasts (2010-14)
44
Positioning and Marketing Market segmentation Key brands
45 46 47
Key brand analysis
48
Key brand profiles
49
The future of alertness and relaxation drinks
Š Zenith International Ltd 2010
78
zenithinternational specialist consultants to the food and drink industries worldwide
Introduction Definitions Functional drinks In this report functional drinks are defined as drinks providing a health benefit beyond their basic nutrition content, by virtue of their physiologically active added components. Drinks providing a health benefit based on their inherent ingredients, such as cranberry juice or iced green tea, are not included in this scope of functionality, unless they are fortified with vitamins or other functional ingredients. A line has been drawn between functional by nature (water and orange juice) and made functional by man (water with added caffeine and orange juice with extra vitamins). Despite their caffeine content, cola drinks are generally excluded from the functional soft drinks category. Nutraceuticals Nutraceuticals derive their functionality, in most cases, from a combination of different ingredients. They provide a specific health benefit (for example, improved digestion) or are designed for a specific purpose (such as increased libido). Nutraceuticals are divided into two broad segments, mind drinks and body drinks, each of which has a myriad of sub-segments. Alertness drinks Alertness drinks are designed to create higher levels of concentration, which is usually achieved by inducing feelings of relaxation. Ingredients such as GABA, L-theanine and B vitamins are commonly used for this purpose as they stimulate the production of alpha waves in the brain, thereby allowing the person to concentrate better whilst feeling more relaxed. Š Zenith International Ltd 2010
zenithinternational specialist consultants to the food and drink industries worldwide
Introduction Definitions Relaxation drinks Relaxation drinks can feature a wide range of ingredients, which in turn can help the body feel more relaxed through various mechanisms from relaxing the muscles to reducing levels of cortisol, the main stress hormone. Relaxation drinks are sometimes perceived to be the opposite of energy drinks, however, this is not necessarily the case as relaxation drinks are designed to help lower stress levels and in some cases induce sleep. In most cases, it is hard to clearly distinguish between alertness and relaxation beverages due to the ingredients’ benefits. Thus, it is the positioning of beverages which can dictate how a drink is classified. To date, there are no visible dairy-based alertness or relaxation drinks.
Š Zenith International Ltd 2010
zenithinternational specialist consultants to the food and drink industries worldwide
Market analysis Ingredients The most commonly used ingredients in alertness and relaxation drinks are as follows: Ingredient
Type
Effects / uses
Countries allowing use in beverages
B vitamins
Chamomile GABA (gamma aminobutyric acid) Kava root (also known as Kava Kava) L-theanine
L-threonine Lemon balm
Linden
Š Zenith International Ltd 2010
zenithinternational specialist consultants to the food and drink industries worldwide
Canada alertness & relaxation drinks Market volume 2006-10 Alertness & relaxation drinks vol 2006-10e 3.0
2.9
Million litres
2.5
2006
2007
2008
2009
2010e
CAGR 2006-10
Functional drinks (mln litres)
2.0
% change
1.7
1.5
Nutraceuticals (mln litres) 0.9
1.0
% change
0.4
0.5
Alertness & relaxation drinks (mln litres)
0.0 0.0 2006
2007
2008
2009
2010e
% change
Commentary
Š Zenith International Ltd 2010
zenithinternational specialist consultants to the food and drink industries worldwide
Key brands – US / Canada Drank Manufacturer: Innovative Beverage Group Holdings Product information: Drank’s mouth feel, taste and carbonation make it similar to CSDs. Active ingredients include rosehips, valerian root, B vitamins and melatonin. In July 2009 Drank Deuce shot was launched. Markets: US; convenience stores mainly as well as through the company’s website and Amazon.com. In Canada at 7-Eleven stores. Brand positioning: Drank is inspired by an illegal recreational drug, known as Purple Drank, commonly used by those within the hip-hop culture of the Southern US for “relaxation”. Product placements include various music videos and hip-hop artist endorsements. Price: US$17.95 per 8 475ml cans. Drank Deuce US$26 per 12 60ml shots. Analyst comment: Drank has caused controversy by its explicit reference to Purple Drank, said to cause drowsiness. Whilst this has undoubtedly helped spur consumption, the ethical implications of marketing a drink associated to a drug have been questioned. Although the company says Drank offers a responsible and alcohol or drug-free way to relax, it is most appealing to teenagers and young adults, potentially alienating other consumer segments who may be interested in the benefit but not its lifestyle positioning. © Zenith International Ltd 2010
zenithinternational specialist consultants to the food and drink industries worldwide
zenithinternational specialist consultants to the food and drink industries worldwide
Apart from our publicly available off-the-shelf reports we are keen to design and deliver tailor made studies specific to your requirements. To find out more and discuss how we could support you please contact us on +44 (0)1225 327900 or via misales@zenithinternational.com
STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & GEOTHERMAL ENVIRONMENT & CARBON PACKAGING & DISTRIBUTION