CONSUMABLES | BEVERAGES
Drink to Good Health Consumers are looking for functional beverages, sustainable packaging and variety By Nora Caley
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t’s important to stay hydrated and to stay healthy. Consumers are purchasing beverages that help them do both and that are packaged in an environmentally friendly way. The pandemic made people think more about their health, and they are looking to retailers to make better-for-you drinks available and convenient to purchase. According to The Hartman Group’s report, “Functional Food & Beverage and Supplements 2020,” 56% of adults use functional beverages to treat or prevent a specific condition. Among the top conditions that consumers noted were hydration (34%), energy (18%), general prevention (15%) and immunity (13%). Manufacturers are responding to these demands by launching new products, accentuating their wellness benefits, and packaging them in recycled or recyclable bottles. Functional Beverages Purchasing better-for-you beverages is part of a larger trend that accelerated last year. “The COVID-19 pandemic prompted consumers to take a more proactive and holistic approach to their personal wellness,” said Stephanie McMahan, category leadership, small store shopping insights, for the North America operating unit of Coca-Cola. “As consumers are becoming more health-conscious, we are seeing an increase in the consumption of beverages that are refreshing without containing as much sugar or calories.” McMahan said consumers are looking for zero-sugar drinks, beverages with functional benefits that aid in improving physical and mental health, and at the same time, comfort and indulgence from familiar brands. Another factor driving the demand for better-for-you beverage solutions is that consumers are emerging from their homes and getting back to their routines. “As consumers resume pre-pandemic on-the-go activities with an increased focus on their health, they’re looking for ‘good for you’ beverages that contain functional benefits,” said Scott Miller, CEO of Bothell, Wash.-based Essentia Water. Citing April 2021 SPINS data, Miller said sales of shelf-stable functional beverages grew almost 100% among conventional products, with more shoppers reaching for options like electrolyte water. Essentia, which earlier this year was acquired by Nestlé USA, offers ionized alkaline water that contains a pH of 9.5 or higher. The brand recently launched its 500-ml six-pack of bottles to answer another increasing consumer demand, which is for multipack options. The desire for bottled water with benefits will be a lasting trend. “Consumers are continuing to look for products that help support their active lifestyles and tap into their pursuit of health and wellness — both trends that became even more sought out during the pandemic,” said Rachel Chambers, senior vice president of marketing at
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Voss Water. “Taking care of yourself — both inside and out — elevated in importance with the challenges of COVID-19.” Voss, which launched in Norway 20 years ago and now has corporate headquarters in New York City, recently launched the Voss+ range of three enhanced waters. “We want to help consumers look and feel their best by helping them meet their daily vitamin, mineral and hydration needs,” Chambers said. “By offering unique and meaningful ingredients, along with outstanding taste and the iconic VOSS bottle, Voss+ provides an exceptional experience.” Kombucha Gains, Juices Have Opportunity Gut health has captured consumers’ attention in recent years. As a result, the fermented drink kombucha has exploded in popularity. There is much curiosity now about how probiotics and prebiotics can help people with self-care, said Vanessa Dew, co-founder and chief sales officer of Torrance, Calif.-based Health-Ade. “There are amazing gut health benefits with kombucha that help to advance this idea of self-care.” Sales of kombucha at retail stores are up significantly, Dew said, and she pointed to burnout as one driver in this increased interest in self-care in general and in Health-Ade specifically. “With endless Zoom calls, a year and then some of COVID-related restrictions and trying to ‘be well’ versus ‘get well,’ there’s huge momentum around doing things to advance self-care,” she said. Health-Ade announced in August that long-standing partner First Bev had acquired a controlling stake in the company. When it comes to format, consumers are looking for multipacks and single-serve packs. At the beginning of the pandemic, consumers purchased multipacks because they were spending more time at home,
September 2021 DRUGSTORENEWS.COM
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