Zenith Global 2016 RTD Protein Report

September 2016

2016 Ready-to-drink Protein Innovation A review of recent key trends and new product development

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

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 Tel: +44 1225 327900 erenfrew@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

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Section

Page

1. Introduction and scope

4

2. Category overview

7

 Global overview of ready-to-drink protein  Commentary - Ready-to-drink protein trends

 Ready-to-drink protein challenges and barriers  Ready-to-drink protein insights and opportunities 3. Brand profiles

16

3.1 Brand profiles: Flavoured water

17

3.2 Brand profiles: Coconut water

26

3.3 Brand profiles: Juice-based drink

33

3.4 Brand profiles: RTD coffee / energy

38

3.5 Brand profiles: White milk

45

3.6 Brand profiles: Flavoured milk

50

3.7 Brand profiles: Plant-based drink

69

3.8 Brand profiles: Drinking yogurt

76

3.9 Brand profiles: Other beverages

85

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zenithinternational 1. Introduction and scope

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1. INTRODUCTION AND SCOPE Ready-to-drink Protein innovation

Overview The aim of this report is to assess developments in the Ready-to-drink Protein 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 RTD Protein beverages worldwide, tracking recent innovation within the Ready-to-drink Protein category as well as investigating the future outlook of the market.

Categories covered in this report:

 Packaged ready-to-drink protein products, such as shakes, smoothies, milk drinks, waters and other beverages marketed as having a high protein content.

Products profiled in this report contain features that span a number of trends shaping the future of the ready-to-drink protein sector, including:          

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Introduction of new flavours Added functionality (particularly energy and digestion) Move to natural and organic ingredients Plant-based protein sources New and emerging cross-category segments Low sugar content / zero-fat Premium positioning Product redesign Product reformulation High protein variant portfolio expansion

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1. INTRODUCTION AND SCOPE Ready-to-drink Protein innovation

Definition: Ready-to-drink Protein For the purpose of this report, Zenith has limited its research scope using the following definition:  Any ready-to-consume drink which is marketed as a high-protein beverage, or which highlights the weight of its protein content, and one tenth or more (10%) of its calorific value is from its protein content. According to EU regulations; 1g of protein provides 4kcals.

Exclusions  Any beverage which does not market its protein content as a key feature  Any beverage which has a naturally high protein content (such as white milk), where the protein content has not been increased above the typical level.

Coverage Innovation and new product development shaping the global market for RTD Protein between 2014 and 2016 inclusive

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zenithinternational 2. Category overview

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2. CATEGORY OVERVIEW Global overview of ready-to-drink protein

Global market overview  Commentary  Commentary  Commentary

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2. CATEGORY OVERVIEW Commentary - Ready-to-drink protein trends

Trend XX

 

Commentary Commentary

Trend XX  

Commentary Commentary

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2. CATEGORY OVERVIEW Commentary - Ready-to-drink protein trends

Trend XX

 

Commentary Commentary

Trend XX  

Commentary Commentary

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2. CATEGORY OVERVIEW Commentary - Ready-to-drink protein trends

Trend XX

 

Commentary Commentary

Trend XX  

Commentary Commentary

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2. CATEGORY OVERVIEW Commentary - Ready-to-drink protein trends

Trend XX

 

Commentary Commentary

Trend XX  

Commentary Commentary

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2. CATEGORY OVERVIEW Commentary - Ready-to-drink protein trends

Trend XX

 

Commentary Commentary

Trend XX  

Commentary Commentary

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2. CATEGORY OVERVIEW Ready-to-drink protein challenges and barriers

CHALLENGES AND BARRIERS  Commentary

 Commentary

 Commentary

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2. CATEGORY OVERVIEW Ready-to-drink protein insights and opportunities

INSIGHTS AND OPPORTUNITIES  Commentary

 Commentary

 Commentary

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zenithinternational 3. Brand profiles

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zenithinternational 3.1 Brand profiles

Flavoured water

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3.1 FLAVOURED WATER Trend: Redesign / reformulation / flavour innovation / low-sugar

Protein2o Protein2o, USA http://www.drinkprotein2o.com/ Product information: Protein2o is a lightly flavoured protein water fortified with electrolytes. The water is made using whey protein isolate, natural flavourings, colourings and artificial sweetener sucralose. Available in 5 flavours, it contains 15 grams of protein per bottle and 60-70 calories. Since its launch in 2013, Protein2o has introduced further variants: Wild Cherry Splash and Tropical Coconut. In 2016, the drink has been reformulated to contain 100% whey protein, as well as undergoing a brand revamp.

Launch date: March 2016 (rebrand); August 2013 (original launch) Variants: Tropical Coconut, Wild Cherry Splash; Berry Splash; Grape Splash; Lemon Splash Ingredients: Water, Whey Protein Isolate, Natural Flavourings, Phosphoric Acid, Medium Chain Triglycerides, Colouring, Sucralose Positioning & Channels: Functional hydration; Available in retail Pack size & type: Plastic bottle: 16.9fl.oz Price: US$2.00 for 16.9fl.oz bottle (US$23.99 for 12 pack case).

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zenithinternational 3.2 Brand profiles

Coconut water

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zenithinternational 3.3 Brand profiles

Juice-based drink

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zenithinternational 3.4 Brand profiles

RTD Coffee / Energy

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zenithinternational 3.5 Brand profiles

White milk

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zenithinternational 3.6 Brand profiles

Flavoured milk

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zenithinternational 3.7 Brand profiles

Plant-based drink

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zenithinternational 3.8 Brand profiles

Drinking Yogurt

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zenithinternational 3.9 Brand profiles

Other beverages

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