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functionaldrinks zenithinternational newsletter This issue at a glance...

Page five Functional dairy is now frozen too

Issue 211

energy drinks/sports drinks

United States

Motorsport athletes get bespoke beverage FMF Power Beverages has created a functional beverage to tackle the rigors faced by motorsports athletes. The company was recently created by FMF Racing Founder Don Emler. Since 1973 FMF Racing has been producing racing equipment for the motorsport market and has become a known brand name in the industry.

Page three Drink made with Hawaiian fruit

Page seven Japanese-inspired drinks debut

Page four New all-day beauty drinks in Japan

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To develop the beverage, FMF Power Beverages partnered with Fuze Beverages Lance Collins, creator of NOS High Performance energy drink. Collins commented on the new drink, "With NOS we hit a vital nerve in the automotive community; I believe we again have such an advantage featuring a timeless brand like FMF. FMF has always been surrounded by worldclass athletes, so this is a real opportunity to bring a real performance product to a category oversaturated by brands surviving solely on show over go."

formulated with a proprietary blend named PowerBlend which consists of natural caffeine, panax ginseng, green tea and yerba matĂŠ extracts. In addition, the drink aims to provide hydration, recovery, performance and energy as these are the elements that every rider needs to achieve their best.To this end, the drink also features key vitamins and metabolic stimulants whilst organic electrolytes and antioxidants hydrate and help the body recover. The drink is targeted at motorsport athletes and fans. However, FMF Power Beverages has said it can also be consumed by other athletes and health conscious consumers. Emler stated, "Maintaining a healthy, active lifestyle is key to racers and action sports athletes, so we felt strongly about bringing FMF Power to market as an all-natural energy alternative that can enhance a rider's performance out on the track. Developing FMF Power is just another opportunity for us to give back to the sport we love." FMF Power is packaged in 16oz resealable Alumi-Tek bottles and is available in Citrus Lemonade and Fruit Punch variants.The drink carries a suggested retail price (SRP) of US$2.49 apiece. Currently, FMF Power is available through select stores in the Los Angeles area through convenience, drugstores and grocery retailers and will be rolled out nationwide in the coming weeks.

The new FMF Power drink was

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functionaldrinks zenithinternational newsletter Page 2 Issue 211 1 June 2011

editorial comment Welcome to the 211th issue of functionaldrinks.With summer fast approaching, we explore some of the latest developments in ice cream a popular yet sometimes unhealthy dairy-based food that seems set to become a truly functional product whilst retaining its indulgent side. From France we report on reportedly the first diet ice cream developed by Laboratoire Pyc, whilst in the US we cover the creation of an enriched full-fat ice cream (see Page 5). Also perfect for hot summer days, are the energy ciders launched in Denmark by Seimei A/S (see Page 7).

energy drink that caters to the energy requirements of drivers (see Page 1). From Thailand we report on the future planned launch of an energy and a sports drink in the market by emerging Peruvian Ajegroup (see Page 3). In the wellness sphere, we look at a new line of all-natural organic juices set to change the eating habits of Mexicans (see Page 4) as well as a juice drink made with coffee berry sourced from Hawaii from KonaRed (see Page 3). Also in the US, The Icelandic Milk and Skyr Corporation has unveiled an Icelandic-style drinking yogurt that features a comprehensive blend of probiotic strains (see below). Meanwhile, Ponce de Leon Enterprises has made its entry to the functional arena with two omega-3 enriched drinks for the whole family (see Page 6). Finally, in Japan we report on the new range of cosmeceuticals by Pokka, which address different consumption occasions (see Page 4).

In the UK we look at the newest addition to the Powerade brand which was designed to provide sustained energy, marking a departure from the sports category (see Page 6). In the US, motorsports brand FMF has launched its own

Cecilia Martínez Núùez Deputy Editor cm@zenithinternational.com

functional dairy

United States

Icelandic-style probiotic drink debuts New York-based The Icelandic Milk and Skyr Corporation has added a drinking yogurt to its product range. Founded in 2005, the company produces Icelandicstyle yogurt, skyr, under the brand name Siggi's. Skyr is made by incubating skimmed milk with live active cultures. The whey is then strained away to make for a much thicker, creamier, concentrated yogurt, and one which is high in protein and non-fat.

high quality rbst-free pasteurised skimmed milk from the company's family farms in New York State and live active cultures. The drink contains at least 10 billion units of a strain of probiotic culture Lactobacillus Acidophilus, called NCFM. Other live cultures in the product are S. Thermophilus, L. Delbrueckiee Subsp. Bulgaricus, B. Longum, B. Infantisv. The drinking yogurt is available in four-packs in three variants: Blueberry; Strawberry and Plain. Each 3.7oz bottle contains 4-5g of protein, 4-7g of sugar and 45-60 calories, depending on the variant, and it is free from artificial flavourings, sweeteners, stabilisers and starches. The blueberry and strawberry variants contain real fruit and are lightly sweetened with agave nectar. The company recommends drinking one bottle a day and suggests that it is a great breakfast or midday snack, and a good beverage choice for post work-out recovery. Siggi's probiotic drinking yogurts are available to purchase across the US in Whole Foods stores and have a recommended retail price of US$4.99.

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functionaldrinks zenithinternational newsletter Page 3 Issue 211 1 June 2011

wellness beverages

United States

New drink provides an explosion of antioxidants KonaRed, producer of the eponymous coffee berry ingredient, has launched its own antioxidant drink featuring the berry as its main ingredient. KonaRed is a 100% natural antioxidant drink which gets its powerful antioxidant effect from coffee berry planted in Hawaii.According to the company, the beverage has a crisp, berry-flavoured taste that is then complemented by adding fruits such as pineapple and apple. Moreover, the drink does not contain caffeine or added sugar and each serving of KonaRed has an ORAC score of 7909. The coffee berry, and hence KonaRed, is rich in quinic acid, chlorogenic acid and ferulic acid, all of which are antioxidant and, as science has demonstrated, help fight disease, suppress appetite as well as inhibit inflammation. In addition, the acids contained in the coffee berry are highly bioavailable so the acids are absorbed at cellular level. Currently, KonaRed is available in 16oz bottles and 3oz shots and the company has revealed that stick-packs will soon be added to the range.

The company has also announced it has secured several distribution agreements that will see the KonaRed drinks sold not only in their native Hawaii but in continental US as well. Among others, KonaRed has signed distribution agreements with Fun Beverage, Gusto Beverage, Thompson Distributing and Cardinal Distributing, premier distributors in the Pacific Northwest region of the United States. These agreements will see both 16oz and 3oz drinks available in the states of Oregon, Washington, Montana and Idaho through grocery, convenience and health food stores including Town Pump, Montana's largest convenience store chain, select Walgreens, Alberstons, as well as many independent stores throughout the region. Shaun Roberts, CEO and Co-Founder of KonaRed commented on the distribution agreements, "The expansion of KonaRed in the Pacific Northwest region marks another key landmark for the company.We are proud to say that we are now available in eight out of the 50 states, bringing us closer to our goal of providing this refreshing wellness beverage to all consumers across the country." KonaRed has an SRP of US$4.99 and US$2.99 for a 16oz and 3oz bottle respectively. Both formats are available for sale through the company's website. www.konared.com

energy drinks/sports drinks

Thailand

New drinks from Peru with love

Sporade is available in glass, carton and PET formats in Tropical Fruits, Lemon-Lime, Mandarin, Passion Fruit and Grape variants as well as Light versions of these.

Ajegroup, Peru-based producer of soft drinks and beer, has announced its plans to further expand its presence in the Thai market through the launch of two new products in 2012.

Meanwhile,Volt was introduced to the Latin American market in 2010, and is present in countries such as Peru and Mexico. Similar to the rest of the Ajegroup portfolio, which consists of cola drinks, RTD tea, nectars, juice drinks and water,Volt is value-priced being on average 25% cheaper than other energy drinks.

Through its subsidiary Ajethai, the company will launch an energy drink under the brand name Volt and a sports drink named Sporade.The latter drink was launched in its native Peru in 2004, where the drink has sought to take market share from Gatorade, the leading sports drink. Sporade is positioned as a value offering that delivers the same benefits as other sports drinks.

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Chanin Thiencharoen,Ajethai Marketing Manager, said that the company intends to launch Volt in mid 2012 and Sporade in the third quarter of 2012. Thiencharoen also revealed that Ajethai is looking to become PepsiCo's new exclusive distributor in the country, after it and Serm Suk terminated their agreement.

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functionaldrinks zenithinternational newsletter Page 4 Issue 211 1 June 2011

nutraceuticals

Japan

New beverages help Japanese women stay beautiful Japanese beverage company Pokka has launched a new line-up of beverages targeted at women. The three-strong range was launched under the Tsuyameku Kirei Kajitsu umbrella brand and contains 10% fruit juice from cassis and lemon as well as 180ml of vitamin C per cup, 100mg of rosehip extract, lemon peel extract and is sweetened with sucralose and acesulfame K to produce a calorie-free beverage.

available in three variants: Relaxtime packaged in 900ml PET bottles,Water packaged in 500ml PET bottles and Sparkling in 155ml brown glass bottles. The line-up is targeted at young women who are concerned about ageing. Research suggests rosehip extract is highly nutritious for hair and skin as it is rich in essential fatty acids, vitamins and minerals. In addition, its natural antioxidant content helps slow down the ageing process by reducing the formation of lines and wrinkles, reducing the formation of scarring as well as helping in the regeneration of cells. Both Water and Sparkling are positioned to be consumed on-the-go, whilst Relaxtime is aptly positioned as a beverage to be drunk at home as part of an evening relaxation ritual. Relaxtime retails for around Yen 300 whilst the Water and Sparkling variants retail for Yen 147 and Yen 115 respectively.

The polyphenol-rich drink is

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wellness beverages

Mexico

Rain of nutrients falls over Mexico Agroservicios Profesionales de Mexico (AGROPROMEX), based in Guadalajara, MĂŠxico, has just launched a range of organic juices for the growing base of healthconscious consumers. The start-up company says it was inspired to develop a line-up of all-natural juices to help reverse the growing trend of unhealthy eating habits which it claims has in part contributed to the country's worrying obesity problem. In addition, the company intends to foster and strengthen healthy eating habits whilst catering to consumers interested in natural and nutritious products.

Nature Rain and consists of variants made from 100% organic fruit juice that are free from preservatives, artificial flavourings or colourings. In addition, all variants are enriched with dietary fibre that has a prebiotic effect in the gut to complement the fruits' natural antioxidant properties. The juices are suitable for diabetics as well as for those looking to lose weight as the juices are sweetened with organic agave syrup, which is known to have a low glycaemic index. The variants Strong (mango), Bliss (strawberrymango), Shine (strawberry), Fusion (cranberrymango), Heart (cranberry) and Mixer (blackberry-raspberry) are packaged in 425ml glass bottles produced by Mexican glass specialist Vitro. In addition, the juices are protected by a bright shrink-wrap sleep also designed by the packaging company. AGROPROMEX says it chose to bottle its juices in glass due to their environmentally friendly credentials as well as by helping protect the juices' freshness and nutrients. Nature Rain can already be purchased through restaurants, gyms and supermarkets in Guadalajara, Monterrey and Mexico City.

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functionaldrinks zenithinternational newsletter Page 5 Issue 211 1 June 2011

functional dairy

United States/Switzerland

Summer indulgence is now guilt-free At the recently held Vitafoods trade fair in Geneva, from 22 to 24 May, Laboratoire Pyc unveiled its latest innovation in weight management that promises to make summer dieting easier and more tasty. The new innovation is the Shake & Freeze concept of high-protein and low calorie ice cream. In addition, the ice cream is a powder mix that consumers need to rehydrate and shake in a blender and then simply freeze. Moreover, the company claims the resulting product is impressive as it has a creamy sensation and taste similar to that of traditional ice creams. Marketing Manager, AurĂŠlie De Schuyteneer, explained, "The product is shelf-stable and has been designed for brands selling through drugstores and health shop channels.To date, efforts have been made to reduce sugar and fat in ice-creams but no real diet ice-creams exist for consumers wanting to control weight without missing out on delicious ice-creams.We had to create a new efficient offer." At the trade fair, Laboratoire Pyc showcased different flavours including chocolate, vanilla, strawberry, peach-melba and mocha coffee. All variants are made using natural flavours and are free from artificial colours, preservatives and GMO ingredients. The company is confident of the appeal of the Shake & Freeze concept both to retailers and end consumers as it offers several advantages in that it represents a diet offer without the need for refrigeration or cool transportation, has a long shelf-life of two years in sachet and offers the possibility of customising the packaging and flavours.

For consumers, the company highlights that one sachet provides 15g of protein, 50% less fat and carbohydrates than regular ice creams and 35% fewer calories; the product is easy to prepare and is compliant with French and European regulations to make weight management claims through its high protein and low calorie credentials. However, Laboratoire Pyc's Shake & Freeze concept is not the only innovation looking to make ice cream a functional food that is still indulgent. In the US, researchers at the University of Missouri, led by Dr Ingolf Gruen, have been developing an ice cream that retains the same texture, creamy flavour and saturated fats of regular ice cream but that also provides probiotics, antioxidants and dietary fibre. Gruen explained that initially the researchers were looking to develop a low fat ice cream, but then decided against this as consumers can usually tell the difference in taste and texture between full-fat and low-fat options. Gruen added, "We might as well get some benefits out of ice cream. Functional foods have been around for a while, allowing you to use food not just to deliver basic nutrients but components that can benefit health beyond." The functional ice cream, which is set to be premiered at the university's ice cream shop in September 2011, faced several hurdles such as culturing bacteria in a special medium so they did not add a sour taste to the ice cream or finding the right level of fibre to make the ice cream creamier or avoiding bacteria clumping. Gruen said that now these issues have been solved, the final stage involves developing an appropriate flavour that consumers will like, since the ice cream's current açai flavour (from the use of the berry for its antioxidants) may not be well received by consumers, and may be replaced by blueberries for a more traditional flavour. Gruen said the team believes the ice cream will be successful, but, as a researcher, innovation is his true interest. Gruen commented, "Eventually, I think it will take off. As always, it is the excitement of doing something new that interests me, but if anything happens: good. If I can retire from it: fine. But it is not what I'm working toward." So watch this space! www.laboratoire-pyc.fr

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functionaldrinks zenithinternational newsletter Page 6 Issue 211 1 June 2011

enriched beverages

United States

Enriched drink supports health throughout all life stages

ranging from maintaining a healthy heart, slowing down the ageing process, reducing markers of stress and depression, supporting memory, decreasing triglyceride levels, reducing blood pressure and inflammation.

Start-up company Ponce de Leon Enterprises, based in New Jersey, has recently made its entry to the functional drinks industry with two flavoured beverages targeted at the entire family. The company was created by Dr Edward Beja, Optometric Physician, who wanted to develop a unique and all-natural drink that contained omega-3 to help people live a longer and healthier life and feel younger. Research has demonstrated that omega-3 is an important nutrient for overall health as not only is the body incapable of producing it itself, but it also has a positive impact on several health areas

Omega-3 Water contains 20,000mcg of the fatty acid derived from flax seed to avoid the fish taste, odour or aftertaste commonly associated with omega-3. In addition, the Berry variant contains 25% of the daily value (DV) of vitamins B3, B5, B6, B12, D and 5% DV of calcium. Meanwhile, the Citrus variant provides the same amount of omega-3 and B vitamins but also provides 50% DV of vitamin C. Both variants are all natural, vegetarian-friendly, certified Kosher and can be consumed by children and adults alike. Omega-3 Water is already sold through select restaurants, delis and cafĂŠs across the states of New Jersey and New York as well as online through ThirstMonger.com. Online, a 12-pack of 16oz bottles retails for US$26.99 and consumers can choose between packs of one flavour or a mixed case. www.drinkomega-3water.com

energy drinks

United Kingdom

Drink promises twice the energy of competitors Coca-Cola Enterprises (CCE) has extended its Powerade sports drink brand with a new offering that marks the official entry of the brand to the energy arena. Launched under the Powerade Energy name, the drink features 5% fruit juice as well as natural flavours and no artificial colours. Powerade Energy is available in Sparkling Berry and Sparkling Orange variants. Powerade Energy's is positioning as providing a dual energy kick by stimulating and reviving. According to CCE, Powerade Energy taps into the demand for 'sustained performance' energy drinks. To this effect, the drink has been formulated with fast-absorbing glucose as well as caffeine to sustain performance in addition to a balanced blend of

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carbohydrates to help sustain energy levels. Stuart Agates, Head of Energy at CCE, commented, "Powerade Energy is the first Energy Drink in GB to launch a 'Dual Energy' proposition. It's the culmination of over two years’ product research. We are really excited to introduce this innovative new product to our Energy portfolio. It offers a fantastic new sales opportunity for our retail customers.We are confident that with this great tasting and functional innovation from Powerade we can help the Energy sector to continue to build strong momentum as the number one driver of growth for the soft drinks category." The launch of Powerade Energy will be supported by a multi-million pound marketing campaign that will span TV, outdoor and digital advertising as well as targeted sampling activities. CCE has also invested in eye-catching channel specific point of sale material, including shelf trays, chiller stickers, wobblers and bus-stops that will be placed in wholesale and cash and carries. Powerade Energy was officially launched in May 2011 and is available in 500ml and 375ml PET bottles.

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functionaldrinks zenithinternational newsletter Page 7 Issue 211 1 June 2011

energy drinks

Denmark

New beverage range given 'life' A nine-strong range of beverages was unveiled in May 2011 by Danish company Seimei A/S. Named after the Japanese word meaning life-force, the SEIMEI range comprises nine different drinks, four non-alcoholic and five alcoholic. Whilst health benefiting teas (green, white and red) feature prominently in the range, two lines in particular caught the attention of functionaldrinks, the Energy Cider and Energy Drink lines, so we spoke to SEIMEI to get the full story, according to which, "It is no longer necessary to mix your energy drink with alcohol - you get it all in SEIMEI Energy Cider!" The drink is made from apple wine and the alcohol content is equivalent to that of an ordinary cider, whilst the energising function is supplied by the inclusion of caffeine and taurine.Also included are vitamins B6 and B12, niacin and pantothenic acid. Furthermore, the sugar content has been reduced to approximately half that of a standard energy drink. Meanwhile, the lemon-mandarin flavoured Energy Drink line is described as giving a 'real energy kick' and again contains caffeine and guarana, together with vitamins B6 and B12, folic acid, niacin and pantothenic acid.

as it has also set up a new fund, the SEIMEI Fund, aimed at 'enriching charitable ideas with financial life force,' with DKr 0.25 donated to the SEIMEI Fund for each purchase of a SEIMEI product. Uniquely, the company has not earmarked a specific cause to which its funds will be donated but is inviting consumers to submit their ideas for how the money should be distributed. Helena Christensen, who is also Chair of the SEIMEI Fund, comments, "I personally like the feeling of showing consideration for others - even in the little things, such as when I buy something in a supermarket or café.With so many products to choose from, we want to use SEIMEI to give everyone the option of choosing a product that also raises money for good causes, such as a hostel for homeless people, better conditions at a care home or similar projects." In addition to the alcoholic and non alcoholic energy variants, the range comprises:  SEIMEI Green Ice Tea with mandarin flavour  SEIMEI White Ice Tea with nectarine flavour  SEIMEI Red Ice Tea with pineapple flavour  SEIMEI Alcoholic Ice Tea (4.5 % vol) with pomegranate flavour  SEIMEI Apple Cider (4.5 % vol)  SEIMEI Sparkling Wine (4.5 % vol) with elderflower flavour  SEIMEI Beer (4.6 % vol)

The company has ensured that the brand has benefited from a high profile launch, with the close involvement of model Helena Christensen and other celebrities including Ali Hewson and Julianne Moore. However, the brand's beauty credentials are not just skin deep,

Initially three SEIMEI products have been launched in Denmark, SEIMEI Alcoholic Ice Tea, SEIMEI Apple Cider and SEIMEI Sparkling Wine, with exclusive distribution in 7-Eleven stores before distribution is expanded to supermarkets, grocery shops, kiosks and at cafés throughout the country in June. The remaining lines are due to hit the shelves later in 2011. Furthermore, the company has ambitious plans for the future and is already looking for distributors world-wide, with particular focus on the Benelux countries and Europe although this may require customising the formulations of the energy drink lines to comply with local health regulations. The entire range is packaged in eye-catching 275ml crown cap glass bottles, each distinctly coloured.The first three variants to be launched are priced at DKr 25 apiece. www.seimei.me

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functionaldrinks zenithinternational newsletter Page 8 Issue 211 1 June 2011

functionaldrinks in brief

Europe

The European Food Safety Authority (EFSA) has issued a positive opinion on sugar replacement. EFSA's Panel on Dietetic Products, Nutrition and Allergies (NDA) found that a range of sugar replacers had dental and glycaemic health claims. Companies benefitting from the positive opinion include Ajinomoto, Roquette, Beneo Group and Tate & Lyle. EFSA has published draft weight management health claims guidance to help the whey protein industry submit successful health claim applications. Other industries receiving guidance include bones, joints, teeth, antioxidants and cardiovascular issues. France: In France, The Coca-Cola Company (TCCC) has introduced a seventh variant of Glacéau vitaminwater, called XXX.The new variant is açaí-blueberry-pomegranate and contains vitamins B and C. Reportedly, since the brand was launched in the country in 2009, 3 million bottles of vitaminwater have been sold. Moreover, throughout 2011 the range will be launched in Marseille, Montpelier, Grenoble, Aixen-Provence, Bordeaux, Lille, Strasbourg, Toulouse, Nantes and Rennes. Spain: Coca-Cola España has been publicising its recently launched Aquarius Libre in the trade press. Launched under the Aquarius brand, the beverage is a sports water and is calorie-free. According to scientists from Spain's Institute of Food Science and Technology and Nutrition, iron-fortified juice may be an easy and cost-effective way of boosting iron levels in at-risk women. The researchers noted that further research should focus on the palatability and acceptability of the fortified juice. Switzerland: Nestlé has unveiled BabyNes, a comprehensive nutrition system for infants and toddlers. BabyNes

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 registered for VAT

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offers single-serve formulas for infants and young children up to the age of three years.The composition of the six consecutive formulas meets the evolving nutritional needs in the first three years of life: four formulas in the first year, and one formula for each of the following two years.The customised composition of these products is tailored to suit the growth pattern in early life and the baby's changing nutritional needs, while taking into account the steady introduction of solid food into the infant's diet. UK: UK-based Food Brands Group has earmarked £100,000 to market is Rocket Fuel energy drink.The campaign will help highlight new packaging for the drink as well as to promote new product launches. Sales Director, David Brooks, added, "Our up-tempo marketing campaign is lighthearted and in keeping with Rocket Fuel's quirky brand personality and attitude.This brand has already achieved cult status and with this additional investment presents an outstanding opportunity for retailers."

North America

US: Cuba Beverage Company has announced its Cuba Herbal Energy Juice will be exclusively distributed in the San Diego area by 5 Star Beverage LLC. Bebida Beverage Company has revealed it intends to secure between five to ten product placements of Koma Unwind on television, films and music videos in order to expand presence of its relaxation drink domestically and internationally. Moreover, the company has recently signed a letter of intent with a production company that will secure a placement in a sci-fi movie. Health Guard has said that its Happy Energy relaxation beverage is now available nationwide through Tom Thumb convenience stores, previously, Happy Energy was only available in Florida and Alabama. One 2oz bottle retails for US$2.99. 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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110601_FD_Issue 211  

This issue at a glance... Issue 211 1 June 2011 Currently,FMF Power is available through select stores in the Los Angeles area through conve...