Zenith Global 2014 Juice Innovation Report

zenithinternational 2014 Juice Drinks Innovation

A review of recent key trends and new product development

October 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, with out 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

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Section

Page

1. Introduction and scope

4

2. Category overview

7

Global juice market overview

8

Overview of key innovation trends

11

Insights and opportunities

16

Challenges and barriers

17

3. Brand profiles

18

3.1. Functionality

19

3.2. Less sugar and calories

32

3.3. Children orientated

39

3.4. New flavour / variety

49

3.5. Origin and provenance

58

3.6. Limited edition

63

3.7. Packaging

68

3.8. Innovative proposition concept

74

3.9. Cross-category

80

Page 3

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zenithinternational 1. Introduction and scope

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INTRODUCTION AND SCOPE Juice drinks innovation

Overview The aim of this report is to assess developments in the juice 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, featuring brand profiles to benchmark against leading and innovative juice products worldwide, tracking recent innovation within the juice category as well as investigating the future outlook of the market.

Product development categories covered in this report:

        

Functionality Lower sugar and calories Children orientated New flavour / variety Origin and provenance Limited edition Packaging Innovative proposition concept Cross-category

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

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Page 5

Health and well-being Natural sweetness with reduced calorie Enhanced nutrition and taste Convenience Added value and benefit Sustainability Consumer engagement

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INTRODUCTION AND SCOPE Juice drinks innovation Definition: Juices For the purpose of this report, Zenith has limited its research scope using the following definition:  Ready to drink still beverages made of fruit and fruit-vegetable blends including pure juices (100% fruit content), nectars (25-99% fruit content) and fruit drinks (5-24% fruit content). Both juices made from concentrate and not from concentrate are covered.  Although the report predominantly covers fruit juices, it also refers to some vegetable based products featuring an innovative trend worth highlighting in the context of the fruit juice market.  Some cross-category products are also featured as a number of recent innovations have combined juice with other soft drinks categories to bring the juices’ natural nutritional benefits or fine fruity taste.

Exclusions Smoothies, sparkling juices, schorle, limonaden, pressé drinks, malt beverages, fruit flavoured still drinks.

Scope Innovation and new product development shaping the global market for juices products launched from 2012 to 2014.

Global fruit juice market data is generated from the agglomeration of 72 markets, source: www.globaldrinks.com.

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zenithinternational 2. Category overview

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CATEGORY OVERVIEW Global juice market overview

With consumption reaching XY billion litres in 2014, juices ranks third in the soft drinks arena

Global soft drinks consumption 2014e X billion litres Bottled water

Commentary‌ 14%

14%

Carbonates Juices/nectars/fruit drinks 14%

14%

Dilutables Other Still

14% 14% 14%

RTD tea Others

Juice consumption trends by region 2014e litres

000 million litres

30.0

45 Total consumption

40

Per capita consumption

25.0

35 20.0

30 25

15.0 20 10.0

15 10

5.0

10

10

10

10

10

10

10

Africa

Middle East

East Europe

Latin America

West Europe

North America

Asia Pacific

0.0

5 0

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CATEGORY OVERVIEW Global juice market overview Juice market development by region Mature markets primarily drive innovation

000 million litres 90

Commentary‌

80 70

West Europe

60

North America

50

Middle East

40

Latin America

30

East Europe

20

Asia Pacific

10

Africa

0 2010

2014e

2018f

Juice per capita consumption by region Litres 140 120 West Europe 100

North America

80

Middle East

60

Latin America

40

East Europe Asia Pacific

20

Africa 0 2010

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2014e

2018f

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Key innovation trends Functionality

Functionality

 Commentary….

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Key innovation trends Lower sugar and calories; Children orientated

Less sugar and calories

 Commentary…

Children orientated  Commentary…

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Key innovation trends New flavour / variety; Origin and provenance

New flavour / variety

 Commentary…

Origin and provenance  Commentary…

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Key innovation trends Packaging; Innovative proposition concept

Limited edition

 Commentary…

Packaging  Commentary...

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Key innovative concept Innovative proposition concept; Cross-category

Innovative proposition concept

 Commentary…

Cross-category  Commentary…

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CATEGORY OVERVIEW Juice category opportunities

INSIGHTS AND OPPORTUNITIES

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CATEGORY OVERVIEW Juice category challenges and barriers

CHALLENGES AND BARRIERS

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zenithinternational 3. Brand profiles

3.1. Functionality 3.2. Lower sugar and calories 3.3. Children orientated 3.4. New flavour / variety 3.5. Origin and provenance

3.6. Limited edition 3.7. Packaging 3.8. Innovative proposition concept 3.9. Cross-category

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zenithinternational 3. Brand profiles

3.1. Functionality

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Less sugar and calories Natural sweetness - Stevia

JuiceBrust Skinny Purity Soft Drinks, UK www.juiceburst.com Product information: JuiceBrust juice based drink brand has been launched in a low calorie variant, Skinny, containing 99 calories and 45% less sugar than the original variant. JuiceBrust Skinny is made from concentrate and has 40% fruit content sweetened by stevia natural low calorie sweetener.

Launch date: May 2014.

Variants: Peach & Passion Fruit; Cherry & Apple; Mango & Lime.

Ingredients: Water, apple juice (23%), peach juice (6%), orange juice (5%), peach puree (4%), passion fruit juice (2%), sugar, citric acid, natural flavouring, ascorbic acid, pectin and locust bean gum, steviol glycosides, carotenes – Peach and Passion fruit variant.

Positioning: In response to healthy eating JuiceBrust Skinny provides a reduced calorie range that doesn’t compromise on taste, presented in a sleek new bottle targeted at the calorie conscious consumer.

Channels: Retail.

Pack size & type: 400ml PET bottle.

Price: £1.29 for 400ml.

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zenithinternational 3. Brand profiles

3.2. Less sugar and calories

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zenithinternational 3. Brand profiles

3.3. Children orientated

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zenithinternational 3. Brand profiles

3.4. Flavour / variety

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zenithinternational 3. Brand profiles

3.5. Origin and provenance

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zenithinternational 3. Brand profiles

3.6. Limited edition

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zenithinternational 3. Brand profiles

3.7. Packaging

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zenithinternational 3. Brand profiles

3.8. Innovative proposition concept

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zenithinternational 3. Brand profiles

3.9. Cross-category

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