2014 Zenith Innovation Series - Adult Soft Drinks

zenithinternational 2014 Adult Soft Drinks 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:

Section

Page

1. Introduction and scope

5

Monika Fedor Consultant Zenith International Ltd., UK

2. Category overview

7

Tel: +44 1225 327936 mfedor@zenithinternational.com

 Challenges and barriers

Esther Renfrew Market Intelligence Director Zenith International Ltd., UK Tel: +44 1225 327900 er@zenithinternational.com Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom T +44 (0) 1225 327900 F +44 (0) 1225 327901 www.zenithinternational.com

zenithinternational specialist consultants to the food and drink industries worldwide

 Overview by innovation category  Insights and opportunities 3. Brand profiles

15

3.1 Brand profiles: Reduced-calorie adult soft drinks

16

3.2 Brand profiles: Natural & organic adult soft drinks

22

3.3 Brand profiles: Flavour innovation

37

3.4 Brand profiles: New endeavours

44

3.5 Brand profiles: Packaging innovation

56

3.6 Brand profiles: Limited editions

64

3.7 Brand profiles: Fermented/brewed adult soft drinks

73

3.8 Brand profiles: Cocktail bases and mixers

79

3.9 Brand profiles: Cross-category drinks

85

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zenithinternational 1. Introduction and scope

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Page 4

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INTRODUCTION AND SCOPE Adult soft drinks innovation

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

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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 adult soft drinks products worldwide to use for benchmarking purposes.

This report contains detailed profiles of products launched from January 2012–September 2014, organised into the following categories:  Reduced-calorie adult soft drinks  Natural and organic adult soft drinks  Flavour innovations  New endeavours  Packaging innovation  Limited editions  Fermented/brewed adult soft drinks  Cocktail bases and mixers  Cross-category drinks Products profiled in this report contain features that span a number of trends shaping the future of the adult soft drinks sector, including:  Natural ingredients  Reduced-sugar  Stevia-sweetened  Fruit flavours  Sour/savoury flavours  Cocktail-inspired flavours

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Page 5

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INTRODUCTION AND SCOPE Adult soft drinks innovation

Definition: adult soft drinks For the purpose of this report, Zenith has limited its research scope using the following definition: Ready-to-drink premium soft drinks predominantly targeted at adults, usually, but not exclusively in glass bottles. Positioned and priced as premium.

Exclusions

This innovation overview does not include alcoholic beverages or any alcohol-free drinks that are traditionally alcoholic, such as alcoholfree beer or wine. Also ready-to-drink coffee or tea and dilutables are excluded.

Coverage Innovation and new product development shaping the global market for adult soft drinks launched from January 2012 to September 2014.

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zenithinternational 2. Category overview

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Page 7

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CATEGORY OVERVIEW Commentary by innovation category

Reduced-calorie adult soft drinks 

Commentary...

Natural & organic adult soft drinks 

Commentary…

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CATEGORY OVERVIEW Challenges and barriers

CHALLENGES AND BARRIERS 

Commentary...

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Commentary…

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CATEGORY OVERVIEW Insights and opportunities

INSIGHTS AND OPPORTUNITIES  Commentary…  Commentary…  Commentary…  Commentary…  Commentary…

 Commentary…  Commentary…  Commentary…

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zenithinternational 3. Brand profiles

3.1 Reduced-calorie adult soft drinks 3.2 Natural and organic adult soft drinks 3.3 Flavour innovations 3.4 New endeavours 3.5 Packaging innovation 3.6 Limited editions 3.7 Fermented/brewed adult soft drinks 3.8 Cocktail bases and mixers 3.9 Cross-category drinks

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zenithinternational 3. Brand profiles

3.1 Reduced-calorie adult soft drinks

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REDUCED-CALORIE ADULT SOFT DRINKS Lower-calorie

Bruce Cost 66 Bruce Cost, USA http://www.brucecostgingerale.com

Product information: Bruce Cost launched a 66 calorie offering sweetened with cane sugar and monk fruit (calorie neutral) and named the product to reflect this unique selling point. According to industry reports the flavour is ‘very close to the original, with a nice amount of sweetness, a pretty strong hit of ginger, and minimal monk fruit aftertaste’.

Launch date: July 2013 Variants: Ginger Ale with only 66 calories

Ingredients: Cane sugar, monk fruit and fresh ginger Positioning: Adults Channels: Retail and HoReCa Pack size & type: 12oz (355ml) glass bottle. Single and 4-pack Price: $2.59 per 12oz bottle

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