2014 Flavoured Functional Innovation

zenithinternational Flavoured Functional Water Innovation A review of recent key trends and new product development

November 2014

Research Note In undertaking its research for this report, Zenith has utilised its internal data library and global databases, alongside other third party sources and interviews with the industry. Throughout its on-going research, Zenith also depends upon the goodwill and co-operation of operators active in the marketplace, and, as such, seeks to achieve a high level of accuracy.

Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith International Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information.

Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, without the prior written consent of Zenith International Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith International from any liability related to the report distribution. Such readers however will not be considered “users� of this report.

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Contents

The contacts at Zenith International in connection with this report are: Monika Fedor Consultant Zenith International Ltd., UK Tel: +44 1225 327936 mfedor@zenithinternational.com Esther Renfrew Market Intelligence Director Zenith International Ltd., UK

Section

Page

1. Introduction and scope

4

2. Category overview

7

    

Overview of common features Commentary - global trends and developments Commentary - new product development trends Challenges and barriers Insights and opportunities

3. Brand profiles

17

Tel: +44 1225 327900 er@zenithinternational.com

3.1 Brand profiles: Innovation in functional claims and ingredients

18

3.2 Brand profiles: Innovation in still flavoured functional water

35

Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom T +44 (0) 1225 327900 F +44 (0) 1225 327901 www.zenithinternational.com

3.3 Brand profiles: Innovation in sparkling flavoured functional water

52

3.4 Brand profiles: Innovation in children’s flavoured functional water

63

3.5 Brand profiles: Innovation in caps and closures

69

3.6 Brand profiles: Innovation in packaging

77

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zenithinternational 1. Introduction and scope

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Introduction and scope Flavoured functional water innovation

Overview The aim of this report is to assess developments in the flavoured functional water sector, identifying and summarising trends and new innovations in order to understand what opportunities exist for new product development.

Scope A global market overview of trends and developments - tracking recent innovation within the category and investigating the future outlook for the market. This report also features brand profiles of leading and innovative flavoured functional water products worldwide to use for benchmarking purposes.

Categories covered in this report:       

Functional claims Functional ingredients Still flavoured functional water Sparkling flavoured functional water Children’s flavoured functional water Caps and closures Innovation in packaging

Products profiled in this report contain features that span a number of trends shaping the future of the flavoured functional water sector, including:        

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Natural ingredients Natural sweeteners Diversified flavour offerings Energy waters Beauty and wellness waters Vitamin waters Innovative functional ingredients and claims Minimalist packaging

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Introduction and scope Flavoured functional water innovation

Definition: Flavoured functional water For the purpose of this report, Zenith has limited its research scope using the following definition:  Flavoured functional waters include flavoured water with added functional ingredients, such as botanicals, vitamins, minerals, oxygen or other, as well as flavoured waters marketed with functional positioning Exclusions

 Waters with added functional ingredients but without added flavour  Coconut water based beverages Coverage Innovation and new product development shaping the global market for flavoured functional water launched from 2012 to 2014

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zenithinternational 2. Category overview

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Category overview Overview of common features Flavoured functional waters have been formulated using a variety of ingredients with specific functional claims.

Common features are summarised in the table below:

FEATURE

BENEFIT

Vitamins

Minerals

Botanicals

Sweeteners

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Category overview Commentary - global trends and developments

Global and regional trends in the market for flavoured functional water

 Commentary

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Category overview Commentary - global trends and developments (continued)

Global trends and developments in flavoured functional water consumption  Commentary

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Category overview Commentary - new product development trends

Innovation in functional water claims

 Commentary

Innovation in still flavoured functional water  Commentary

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Category overview Commentary - new product development trends (continued)

Innovation in sparkling flavoured functional water

 Commentary

Innovation in children’s flavoured functional water  Commentary

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Category overview Commentary - new product development trends (continued)

Innovation in caps and closures

 Commentary

Innovation in packaging  Commentary

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Category overview Flavoured functional water category challenges and barriers

CHALLENGES AND BARRIERS  Commentary  Commentary  Commentary

 Commentary  Commentary  Commentary  Commentary  Commentary  Commentary  Commentary

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Category overview Flavoured functional water category insights and opportunities

INSIGHTS AND OPPORTUNITIES  Commentary  Commentary

 Commentary

 Commentary  Commentary  Commentary  Commentary

 Commentary

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zenithinternational 3. Brand profiles

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zenithinternational 3. Brand profiles 3.1 Innovation in functional claims and ingredients

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Innovation in functional claims and ingredients Energy

Energy Water KEEP Weider, Japan http://www.weider-jp.com/

Product information: Using the company’s Triple Carbo powder drink as its base, Morninaga Seika subsidiary Weider has launched Energy Water KEEP. Made with a blend of fructose, glucose and dextrin in addition to a multitude of B vitamins, the water provides a maintained level of energy support as the 3 carbohydrates absorb at their different rates. Sweetened with sucralose and acesulfame K the water is 70 calories per bottle, and comes in lemon citrus flavour.

Launch date: June 2013

Variants: Energy Water Keep (エナジーウォーター キープ) Ingredients: Fructose glucose liquid sugar, maltodextrin, glucose, citric acid, flavourings, lactic acid Ca, citric acid Na, sulphate, chloride K, magnesium, safflower yellow pigment, sucralose, acesulfame K, B vitamins Positioning & Channels: 20-30 year old males. Online, in sports shops and in some vending machines Pack size & type: Plastic bottle: 500ml Price: JPY 162 for 500ml bottle

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zenithinternational 3. Brand profiles

3.2 Innovation in still flavoured functional water

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zenithinternational 3. Brand profiles

3.3 Innovation in sparkling flavoured functional waters

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zenithinternational 3. Brand profiles

3.4 Innovation in children’s flavoured functional water

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zenithinternational 3. Brand profiles

3.5 Innovation in caps and closures

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zenithinternational 3. Brand profiles

3.6 Innovation in packaging

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