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functionaldrinks zenithinternational newsletter This issue at a glance...

Page six Green coffee bean benefits in Italy

Page five New healthy sodas debut in Canada

Page four Japanese men get new energy cola

Page seven Relaxation shots abound in the US

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Issue 210

functional dairy

United States

Functionality finds its way to foodservice

Activia Frozen Yogurt to consumers in the places where they consume desserts and snacks away from home."

YoCream International, recently acquired by Danone, has unveiled a probiotic frozen yogurt under the Activia brand, representing a first in the US. The new yogurt contains Activia's unique probiotic culture Bifidus Regularis that helps regulate the digestive system when an 8oz portion is consumed daily for two weeks as part of a balanced diet and healthy lifestyle. Suzanne Gardner, Director of Marketing at YoCream, stated, "We want everyone to love the way they feel when they enjoy our delicious new frozen yogurt and see for themselves how Activia helps them."

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Activia Frozen Yogurt contains only 100 calories per 4oz, is fat-free and can be consumed as a dessert or snack.The yogurt is available in a range of flavours including Vanilla, Strawberry, Peach and Blueberry. Tyler Bargas, Director of Sales at YoCream commented on the product launch, "Frozen yogurt operators offer 8 to 20 flavours at a time, usually in a self serve environment with lots of topping options. Offering Activia Frozen Yogurts will help them expand their flavour variety and give consumers the chance to make custom parfaits and sundaes while enjoying the benefits of Activia." YoCream is a specialist in providing better-for-you frozen desserts and beverages to consumers through foodservice outlets like frozen yogurt shops, coffee and smoothie shops, college and healthcare cafeterias and other restaurants.

As for the taste, Gardner explained that unlike other frozen yogurts, Activia Frozen retains its original taste. Gardner added, "The flavour profile of Activia Frozen Yogurt tastes more like refrigerated yogurt and will have a strong appeal to consumers that enjoy Activia yogurt every day. Our new relationship with Danone and The Dannon Company allows us the opportunity to bring additional products like

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YoCream first unveiled the frozen yogurt at the National Restaurant Association show held on 20 May in Chicago.The yogurts will be made available through foodservice distribution from the beginning of June 2011.

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functionaldrinks zenithinternational newsletter Page 2 Issue 210 18 May 2011

editorial comment Welcome to the 210th issue of functionaldrinks.The energy drink category has been around for around two decades now and it continues to be as relevant today as when the category first started. These days, energy drinks can take many forms, from traditional carbonated beverages aimed at young consumers to sophisticated coffee-inspired drinks targeted at adults. This issue we focus on the latter type of drinks, starting with Health is Wealth Foods which has unveiled two lines of RTD coffees enriched with vitamins (see Page 5). In Italy we look at Nescafé's latest innovation in the form of a blend of roasted and green coffee beans that, as well as providing a caffeine pick-me-up, features polyphenols from the green coffee beans (see Page 6).We also report on Xyience's newest energy drink variant targeted at mixed martial arts fans (see Page 3). In Japan, Asahi

Soft Drinks has launched an energy cola for active men (see Page 4). Dairy giant Danone has been busy developing its already successful Activia brand; in the US we look at the launch of Activia Frozen Yogurt through its subsidiary YoCream International (see Page 1) whilst in Australia, hot off the press, we report on the brand's entry to yet another market (see Page 3). ALO Drink, producer of aloe juice drinks, has launched a range of drinks designed to rehydrate consumers thanks to their content of aloe juice and coconut water (see below). Also in the US we report on a new line of drink mixes for weight loss (see Page 6). On the omega-3 front, we look at two new product launches by organic dairy company Horizon and flax seed specialist Flax USA (see Page 4). Meanwhile, Canadian company Krisda has launched its own range of healthy sodas enriched with a vitamin trio (see Page 5). Finally, functionaldrinks reviews a few of the latest launches in the relaxation and alertness category (see Page 7). Cecilia Martínez Núñez Deputy Editor cm@zenithinternational.com

wellness beverages

United States

Coconut water and aloe combo produces a healthboosting beverage US-based ALO Drink has introduced a line-up of aloe-vera and coconut water drinks to help consumers stay hydrated. The new range is called COCO Exposed and consists of five variants: Passion Fruit & Pineapple, Mango & Mangosteen,Wheatgrass, Goji Berry & Lychee and Peach & Kiwi. All variants contain coconut water from concentrate, aloe vera juice and pulp and fruit juices depending on the variant. Furthermore, all beverages feature 25% aloe vera pulp and juice content derived by the hand-filleting method which is said to preserve the nutritional characteristics of the leaf. The drinks are also free from preservatives,

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artificial flavours, emulsifiers and thickeners. Each 350ml bottle provides between 480mg and 518mg of potassium with just 60 calories. According to ALO Drink, the beverages are targeted at consumers who wish to rehydrate and obtain the benefits of consuming coconut water but do not necessarily enjoy its taste. In addition, the drinks' flavour profiles and sugar-free credentials reinforce their inherent wellness status. Although the company does not make any hard health claims, it does suggest that consuming coconut water and aloe vera juice can aid the body on a multitude of levels, including boosting the immune system, improving intestinal health, increasing metabolism and weight loss, balancing body pH, detoxifying and fighting viruses, tackling fatigue, preventing hypertension, controlling diabetes, boosting circulation, helping keep the body cool and easing stomach pain and vomiting. The drinks are already stocked at a wide range of outlets including Whole Foods Market, Little Green Grocer and The Aloe Shop among others across the US as well as online through the company's website. Distribution to Canada is expected to start sometime in 2011. www.alodrink.com

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functionaldrinks zenithinternational newsletter Page 3 Issue 210 18 May 2011

energy drinks

United States

Energy drink delivers a knock out to fatigue

The limited edition can features British mixed martial arts (MMA) sensation Dan Hardy, a UFC welterweight and Xyience team athlete. Michael Levy, Xyience Chief Financial Officer and Chief Operating Officer, commented on the launch, "We evaluated the current trend research to find the flavour profile that would resonate most with our demographic - and Fruit Punch is clearly a favourite."

Xyience, producer of energy drink range Xenergy, has added a new variant packaged in a limited edition can.

Levy stated on the decision to include a professional fighter on the can, "Ours is an office of sports fanatics, especially MMA. Collecting trading cards, autograph cards and memorabilia is a part of being a fan. Now Xenergy and MMA fans can 'pound the punch' with Dan."

The new Fruit Punch variant is cherry-orange-tangerine flavoured and is sugar and calorie-free. As with the rest of the line up, the drink provides 200% of the daily value (DV) of vitamin B3, 500% DV of vitamin B6 and 160% of vitamin B12. Moreover, the Fruit Punch beverage features taurine, glucoronolactone, caffeine, guarana extract, panax ginseng extract, inositol and L-carnitine.

The 16oz can is already distributed nationwide through the same retail outlets where the rest of the Xyience range is sold.

The newest variant joins the existing Orange Fuel, Cherry Rush and Citrus Slam.

www.xyience.com

functional dairy

Australia

Australian digestive yogurt debut welcome Having created a joint venture with Australian Murray Goulburn CoOperative last year, Danone has announced the launch of Activia on the Australian market. Danone's flagship spoonable yogurt, positioned as providing digestive health benefits is already present in 68 countries around the world and is worth an estimated â‚Ź4 billion.The launch of Activia, according to press reports, is part of a series of yogurt and fresh dairy products Danone-Murray Goulburn aims to launch in Australia. The spoonable yogurt range will be marketed at Australian women who suffer from lethargy and who have a lack of confidence due to

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stomach bloating. Activia will be available in three variants: Pear, Berries and Kiwi & Apple. Both companies are confident of the prospects for the brand's success, as research suggests that Australia has one the highest rates of digestive disorders in the world, affecting up to 90% of women and 80% of men. Activia nutritionist, Zoe Bingley-Pullin, added, "With an overwhelming number of Australian men and women suffering from some kind of digestive disorder such as feeling bloated, Danone is excited to launch Activia yogurt in Australia. Activia is backed by 17 published scientific studies and contains an exclusive probiotic, Bifidus Actiregularis, which is proven to assist with digestive discomfort such as feeling bloated." The range is available in 800g packs, each of which contains 6.4 servings. One 125g serving of Activia contains 110 calories and 169mg of calcium, or 21% of the recommended daily intake (RDI). The launch will be supported by a Youtube campaign that can already be viewed through the networking site.

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functionaldrinks zenithinternational newsletter Page 4 Issue 210 18 May 2011

functional dairy

United States

Dairy category is enriched by essential nutrient

feature Martek Biosciences' life'sDHA, a vegetarian and sustainable source of DHA, which is also the only source of DHA currently used in US infant formulas. Furthermore, the ingredient is plant-based and does not alter the flavour of the original milk product.

Omega-3 and its potential benefits have been extensively covered in the media. Rising consumer awareness of the importance of meeting the recommended intake of this nutrient has helped spur new product development in this area.

Horizon Organic Fat-Free Milk Plus DHA Omega-3 is now available in supermarkets and natural food stores nationwide at a suggested retail price (SRP) of US$4.29 per half gallon carton. Also newly entering the omega-3 enriched category is Flax USA, a distributor of flax seed products which has introduced reportedly the country's first flax seed milk for use in smoothies, over cereal, by the glass or as milk replacement in recipes.

Organic dairy producer Horizon has recently unveiled an organic fat-free milk enriched with DHA that provides the same benefits of full-fat enriched milk but without the extra fat and calories. DHA omega-3 has been shown to help support the brain, eyes and heart at every stage of life. In 2007 Horizon first launched a fullfat milk enriched with DHA, which was then followed shortly after by reduced fat varieties and a low fat chocolate milk variant.All variants

Flaxmilk has zero cholesterol, saturated or trans fats, is GMO-free, provides a similar amount of calcium as dairy milk and contains only 50 and 60 calories per 8oz serving of the Original and Vanilla variants respectively. The company claims Flaxmilk provides an easy way to meet the daily needs of omega-3 with 1,100mg of the fatty acid per serving. Flaxmilk Original and Vanilla can be found through all Wal-Mart stores across the US. www.flaxusa.com www.horizondairy.com

energy drinks

Japan

Cola drink gets an added kick of caffeine Asahi Soft Drinks has just unveiled an energy cola for the Japanese market. The new beverage, called Dodekamin Energy Cola, was officially launched on 17 May 2011.The drink contains vitamins B6 and C as well as caffeine, with the taste of a regular cola.

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In line with the existing Dodekamin brand, the energy cola is targeted at men in their 30s who regularly consume cola drinks and want an added energy kick. The Dodekamin brand was first launched in 2004 and has gone from strength to strength, with sales in 2010 representing 146% more than in its first year. It is expected that the new energy variant will add incremental sales and continue the positive trend. Dodekamin Energy Cola is available in 500ml and 1.5 litre PET bottles, and 300ml cans, retailing for around Yen 140,Yen 320 and Yen 115 respectively. In addition, the 1.5 litre and 300ml formats are also available in multipacks of 8 and 24 each.

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functionaldrinks zenithinternational newsletter Page 5 Issue 210 18 May 2011

enriched beverages/wellness beverages

Natural and healthy sodas debut in Canada Krisda, a Canadian manufacturer of zero-calorie sweeteners made from stevia extracts, has launched its own range of vitamin-enriched sodas in the country. Launched under the Krisda Natural Sodas brand name, the calorie-free drinks are free from artificial sweeteners, sugar, gluten and genetically modified organisms (GMO). Instead, the drinks are sweetened with the company's own Krisda Stevia and are enriched with vitamins A, C and E, of which all amount to 20% of the daily value (DV).

Canada

Krisda Natural Sodas were created for consumers who enjoy drinking carbonated soft drinks (CSDs) but would like to avoid "harmful diet sodas with controversial artificial ingredients or fattening high-calorie sugared sodas that promote tooth decay and diabetes." According to the company, the sodas offer a pleasurable experience whilst helping promote good health. Krisda also recognises that by enriching the body with vitamins, there is a reduction in the effects of illness and disease.This, coupled with increasingly busy lifestyles, means that healthy eating habits and getting all the essential nutrients is paramount. Sales and Marketing Vice President, Mark Wilson, commented, "Taste tests across Ontario and Quebec have shown consumers prefer the taste of our sodas to other major brands.This is because of our Krisda sweetener." Krisda Natural Sodas are available in four variants: Cola, Root Beer, Blood Orange and Black Cherry. The sodas are sold through Metro, Sobeys, Save on Foods,Whole Foods Markets, Highland Farms, Fortino's and a wide range of health food stores across the country. www.krisda.ca

functional dairy/energy drinks

Coffee gets essential vitamins infusion Health is Wealth Foods, natural foods company, has added a ready-todrink (RTD) coffee line to its extensive portfolio of healthy food products. The new line consists of two sub-ranges, Nutriccino and Vitamin Coffee. Nutriccino features a natural blend of South American coffee infused with 100% of the daily value (DV) of twelve essential vitamins including A, B1, B2, B3, B5, B6, B12, C, D, folic

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United States acid, biotin as well as 25% DV of vitamin E and 10% DV of calcium. Nutriccino is available in Vanilla Late and Mocha Latte variants.The drinks are designed to appeal to health conscious consumers who enjoy drinking RTD coffees and who wish to supplement their diets with added vitamins. The second line-up,Vitamin Coffee is also available in the aforementioned two variants. Whilst featuring the same vitamin and mineral combination as Nutriccino,Vitamin Coffee is also enriched with guarana and ginseng to deliver an extra caffeine kick. Both ranges are low in fat and made with natural ingredients.They are packaged in 9.5oz glass bottles, with one serving providing 190 calories. The iced coffees are sold through select natural health food stores where they retail for around US$1.99 apiece.

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functionaldrinks zenithinternational newsletter Page 6 Issue 210 18 May 2011

nutraceuticals

Italy

Instant coffee goes green in Italy NestlĂŠ has recently launched its newest instant coffee innovation on the Italian market. The healthy new take on instant coffee combines coffee from both roasted and unroasted green coffee beans, 65% and 35% respectively.The blend ensures that consumers get all the taste they expect from a cup of coffee from the roasted beans, whilst benefiting from the naturally occurring polyphenol content of the antioxidantrich green coffee beans. Indeed, just two cups of the Green Blend instant coffee provides 0.35g of polyphenols, which can help protect the body's cells from day to day damage, according to the company.

national expansion dependent on the success of the trial launch. Originally launched in the UK in September 2009, NescafĂŠ Green Blend is being rolled out across Europe and is now also available in Sweden, Czech Republic and most recently in Greece. However, it is not the first instant coffee featuring green coffee beans. Back in 2007 functionaldrinks featured another instant coffee, CoffeeSlender, launched by Energix Ventures Ltd (see Issue 102).The purpose of this product was, however, more targeted, promoting the high polyphenol content of chlorogenic acid as an aid to weight loss. Other ready to drink (RTD) product launches featuring green coffee bean extracts have also included Purelosophy's Relax, To Go Brands' Trim Energy and Next Generation Waters.

Initially Green Blend will be available exclusively through Esselunga retail outlets, with proposed

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nutraceuticals

United States

Drink mix tackles hunger pangs

naturally, feel less hungry and experience fewer cravings.

Sensa Products LLC, pioneer of an innovative scent-driven weight loss product, has unveiled a range of drink mixes that help boost the metabolism and hydrate. Sensa Quench, as the mixes have been named, contain maqui berry for a powerful antioxidant dose, green tea to revitalise and enhance the metabolism and 100% of the recommended daily allowance (RDA) of vitamins A, B6, B12, C and D to support nutritional needs. The company advises diluting one 3.6g sachet in 12oz of water. In addition, the sachets can be used in conjunction with the Sensa Weight-Loss System which enhances the smell of food and thus accelerates the brain's process that signals fullness. This ultimately allows consumers to eat less

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Sensa President Kristin Chadwick explained that the Sensa Weight-Loss System consists of Tastants (pronounced taste-tants) that are sprinkled onto foods to help promote satiety. Currently, the company's portfolio consists not only of the original Sensa weight loss product but also features chews, nutritional supplements and a book with recipes and the theory behind the system's effectiveness. Sensa Quench is available in three variants: Orange Crush, Pink Grapefruit and Berry Splash. The drink mixes are sold in boxes containing 30 sachets of each flavour which are suitable for onthe-go consumption. Chadwick commented on the launch, "Sensa Quench gives customers an opportunity to replace the sugar-laden drinks they would typically drink with a great tasting, low-calorie drink that helps increase energy levels and support their weight-loss." Sensa Quench can be purchased online through the company's website. One box retails for US$39.95 or US$59.95 for the Duo Pack which consists of a box of Pink Grapefruit and a box of Orange Crush sachets.

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functionaldrinks zenithinternational newsletter Page 7 Issue 210 18 May 2011

nutraceuticals

United States

Army of relaxation shots fights stress and anxiety It is well over a year since the US officially came out of recession, a time when many seized the opportunity to satisfy higher demand for stress relief and sleep aid products. As a result, there has been a constant flow of alertness and relaxation drink launches, and, even though the worst of the recession is over, it has become clear that stress and lack of sleep are still common health problems.

and are keenly interested in new products that are formulated with natural ingredients. Our market analysis indicates that a good majority of Americans are affected by anxiety, sleep disorders and life distractions that prevent them from regularly getting an excellent night's sleep. Dream Dust is a safe and natural alternative to expensive national-brand products and delivers effective results at a consumer-friendly price that is designed to generate repeat business." The shot is already sold at all major airports through the Hudson news chain as well as several independent retail stores. Another recently introduced relaxation shot is Mojo Chill, which boasts rapid stress and anxiety relief thanks to its proprietary formula Diazatab.This 'dreamsicle' flavoured shot helps consumers focus and relax day or night. The shot is part of a family of energy shots and aphrodisiacs all under the Mojo brand name. Mojo Chill is distributed to 7-Eleven, Marathon Oil, Raceway and PB petrol and convenience stores.The shot is also sold through smoke shops and tattoo shops.

Indeed, it appears that the rate of new products launched to market in the category has accelerated with new drinks featuring novel formulations or positioning. functionaldrinks reviews a select few of the latest new drinks in the relaxation arena. Vitila Brands, producer of Tranquila relaxation shots (see Issue 159), has unveiled a new relaxation shot under the Dream Dust brand name. The new shot is described as being drug-free and is formulated to help with the onset of sleep and allows users to wake up without feelings of grogginess. Dream Dust contains GABA, phenibut and L-theanine to relieve stress and anxiety; magnesium to produce a calming effect on the brain; vitamin B6 for its sedative effect, 5-HTP to sustain deeper sleep; zinc to tackle disruptive sleep patterns and melatonin to help the body regulate its internal clock.

Like Mojo Chill, Dr. Zen's Liquid Calm, owned by Cassel Group, is a relaxation drink that is suitable for day and night consumption as it is free from active ingredients that cause drowsiness. Dr. Zen's Liquid Calm formulation features Ltheanine, Kava Kava, valerian root, chamomile, hops and passion flower. In addition, the drink is gently sweetened with fructose and contains only 22 calories per serving. According to the company, Dr. Zen's Liquid Calm can be used as a mixer with spirits. As part of the company's efforts to promote the drink, consumers can become fans on Liquid Calm's facebook page and benefit from a discount on online orders; the relaxation shot can be bought online through Thirstmonger.com. Offline, the shot can be found through select retail outlets in Colorado and California.

Dream Dust is packaged in 2oz bottles and, according to Steve Karnegie, President, "Dream Dust has been designed to appeal to a massive market of consumers that struggle with chronic or occasional sleep problems

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functionaldrinks zenithinternational newsletter Page 8 Issue 210 18 May 2011

functionaldrinks in brief

Europe

UK: Colin Seymour, Sales Strategy and Category Marketing Director of GlaxoSmithKline (GSK) Nutritional Healthcare, stated that sports and energy drinks contributed to overall soft drinks category growth. Seymour said that Lucozade outperformed other energy and sports drinks with sales up 9.4% to £370 million, adding £32 million in incremental sales.

North America

Canada: Innovative Beverage Group Holdings, producer of Drank relaxation drink, has entered into a distribution agreement with Canadian Mac's Convenience Stores, a division of Alimentation Couche-Tard.The agreement will see the Drank portfolio sold through over 900 communities in Central and Eastern Canada. US: It has been rumoured that Red Bull North America (RBNA) may end or cut back on distribution of its energy shots. Reportedly, a distributor was advised by the company that it would discontinue the energy shot as of 1 June 2011. RBNA has not commented on the rumour. It has emerged that Nestlé has decided to discontinue its beauty drink Glowelle, which was only available in the US.The company made public its plans in Glowelle's facebook page but also said it is in the process of developing other cosmeceuticals under the same brand name. Nestlé added that it expects to launch the new products later in 2011. According to research presented at the 2011 Experimental Biology meeting in Washington, D.C., there is a positive association between the intake of 100% fruit juice and reduced risk for several chronic diseases such as cancer and cardiovascular disease. In the US, Dole Foods has announced it is funding a study that will be conducted by the North Carolina Research Campus on the effects

functionaldrinks zenithinternational newsletter

Editor: Anya Hembrough Deputy Editor: Cecilia Martínez Núñez Contributors: Yumiko Magara-Wilkey Commercial Consultant: Matt Wilton

functionaldrinks is issued 25 times a year and is only available by subscription: electronic PDF format only £495; hard copy and PDF £595* *VAT chargeable on electronic format to UK companies and EC companies not

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on inflammation of a blend of fruit and vegetable juices.The study will be running throughout May and it is hoped that it will reveal whether a natural juice drink can have positive effects on inflammation and endurance. Bebida Beverage Company (BeBevCo) has signed an agreement with Integral Industries Company for the distribution of its portfolio to convenience stores and alternative gift shops across Colorado. In other company news, BeBevCo has added I & H Wholesale to its roster of distributors in the US. I & H Wholesale will see BeBevCo's energy and relaxation drinks sold through convenience and independent retailers in the Dallas,Texas, area. Colorado-based Zun has said it has reached an agreement with online retailer ThirstMonger.com to sell its energy drinks. Blue Gold Beverages has signed a letter of intent to acquire the assets of Epic Nutrition.The company has already conducted its due diligence and expects the acquisition to be completed shortly. Blue Gold Beverages President, Daniel Solomita, stated, "We at Blue Gold Beverages believe that with the acquisition of Epic Nutrition, we are well positioned to be leaders in several of the fastest growing segments in today's speciality beverage industry."

World

Australia: Suntory-owned Frucor Beverages has appointed Carl Bergstrom as Group Managing Director, replacing Mark Cowsill who will retire at the end of May 2011. Chile: In Chile, it has emerged that The CocaCola Company (TCCC) is seeking to block Redux Beverages's Cocaine energy drink trademark as it claims it would infringe fair competition and confuse consumers. However, Chile does not require trademark registrations to allow the sale of beverages. 7 Kingsmead Square Bath BA1 2AB United Kingdom t +44 (0)1225 327900 f +44 (0)1225 327901 e functionaldrinks@zenithinternational.com www.functionaldrinksnews.com No part of this periodical may be reproduced in any form, copied or stored electronically without prior permission in writing from the publisher. Every effort is made to verify all information published, but Zenith International cannot accept responsibility for any errors or omissions or for any losses that may arise as a result.

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