OVERVIEW
Year over year, the functional beverage space continues to be one of the most innovative and rapidly expanding areas of the industry, and 2016 was no different. Responding to consumer demand for better-for-you products that can enhance energy, focus, recovery, mood and metabolism, brands are pushing the category’s boundaries with new products and functional tweaks of existing lines that are broadening their customer base and creating exciting new merchandising opportunities at retail.
PROTEIN BOOSTS
ENHANCED COFFEES
KOMBUCHA CONTINUES GROWTH
PROBIOTICS
Everywhere you look, new
While cold brew coffee is
Kombucha continues to reaf-
Numerous innovations aimed
and existing products are rac-
not considered itself to be a
firm its place as one of the
at promoting gut health and
ing to integrate protein into
strictly functional beverage,
pillars of the functional bever-
a healthy immune system
their formulations. Accord-
brands continue to use it as a
age category. According to
have appeared in the func-
ing to research firm Market-
launching point for spinning
data from SPINS, KeVita (+$27
tional beverage space of late.
sandMarkets, the market for
off new innovations within the
million) and GT’s Kombucha
Whether naturally occurring
protein ingredients is project-
category. High Brew intro-
(+$33 million) also ranked
in the liquid or added during
ed to grow at a compound
duced a protein-enhanced
amongst the top five natural
processing, probiotics contin-
annual growth rate of 5.6
SKU to its line of ready-to-
beverage brands in absolute
ue to be integrated into more
percent and will reach $39.1
drink cold brew products in
dollar growth based on a 52-
beverage products as a way to
billion by 2020. Meanwhile,
the fall, while Monster Energy
week period ending on Oct.
boost functional appeal. Fol-
protein varieties are moving
is preparing the release of
30, 2016. Meanwhile, in Sep-
lowing Suja’s introduction of
beyond the animal derived,
an energy drink made with
tember, Oregon-based Humm
Probiotic Waters in late 2015,
with sports-centric brands
espresso and cream that is an
Kombucha joined GTs and
brands ranging from Harvest
like PowerBar and CytoSport
extension of the Java Monster
KeVita as the third kombucha
Soul to Tropicana to Harmless
launched plant-based protein
line, along with a second RTD
brand to be carried nation-
Harvest have all launched pro-
shakes aimed at consumers
innovation called Cafe Mon-
ally by Target, the country’s
biotic-enhanced RTD products
with active lifestyles. Other
ster. Other recent entrants to
second-largest retailer. And if
within the last year, while 2017
developments in the past
the enhanced coffee market
you needed further confirma-
will see further innovation in
year, such as the debut of a
include Bulletproof Coffee-
tion of kombucha’s growing
non-dairy probiotic beverages
protein-enhanced version
style products made with
popularity as a better-for-you
from companies like Dahlicious
of NesQuik flavored milks
MCT oil, such as Califia Farms’
alternative to soft drinks,
and Lifeway.
and rapidly growing func-
Full Shot and Metabrew.
look no further than soda
tional beverage brand REBBL’s
giant PepsiCo’s acquisition of
launch of a two-SKU protein
KeVita in late 2016.
elixir line, indicate a broader consumer base and occasion use that is only beginning to be fully explored.
68 BEVNET MAGAZINE – MARCH/APRIL 2017