100416_FD_Issue 182

Multi-prongedapproach to weightBetter Health Beverage hasmade its official entry into thefunctional arena with its firstoffering, a four-strong range ofnutraceuticals that promise tokeep hunger at bay.underWAY is an appetite-suppressing beveragetargeted primarily at females aged 24-54,regardless of their occupation or physically activeor inactive status, although the company stressesthat the product is suitable and can be beneficialfor anyone aged 4-94.

The drink contains vitamins B2, B3, B6 and B12 tocontribute to heart health and increase energylevels. In addition, it contains HeroFiber, BetterHealth Beverage's unique and proprietary superfibre blend that also includes ForteFibre.HeroFiber reportedly keeps insulin, glucose andcholesterol levels within thenormal range in healthyindividuals. Because of its lowglycaemic index, the beveragealso helps suppress theappetite and delay gastricemptying, thereby makingconsumers feel fuller longer.underWAY is made with all-natural ingredients and is hot-filled without anypreservatives.

To promote underWAY, thecompany has partnered withBrooke Burke, model andcurrent co-host of US TVshow "Dancing with the Stars",who will be the drink'sspokesperson. Burke will alsoappear in all TV ads and pointof purchase collateral pieces.

The firm has also revealed that it anticipatesengaging in cross-promotions betweenunderWAY and its sister company's line of weightloss products, Smart For Life, and eventuallyextend its new underWAY offering with a Mango-Peach variant.

Although underWAY was officially launched on 15March 2010, it was already available in selectlocations across the US, including mass retailersand cash and carries such as Publix, BJ's, CostcoCanada, Kinney Drug, USA Drug, Discount DrugMart, Bartell Drug, and numerous online sitesincluding Walgreens.com, Drugstore.com andBJs.com.

A single-serve 16oz bottle of the weightmanagement beverage retails for US$1.69-US$1.99, whilst a four-pack is priced at US$5.99-US$6.99, and a 24 unit tray at US$29.99.

underWAY is currently available in Açai-Pomegranate, Grape, Green Tea and Orangeflavour variants.

www.under-way.com

enhanced new age nutraceutical energy sports juice dairy

functionaldrinkszenith international newsletter Issue 182 16 April 2010

Page fiveYogurt with dualdigestive impact

Page twoPicking Japan upafter big night

Pages six and sevenAlready applaudedshot for UK

Page threeHerbal infusionenters France

This issue at a glance... nutraceuticals United States

'Clam'ping downhangover symptomsJapan-based Ajinomoto hasrecently launched a drink that

promises to help alleviate thesymptoms of the over-consumption of alcohol.

No-Mikata is a plum-flavoured drinkfeaturing alanine as its main ingredient.Alanine is an amino acid that isnaturally produced by the body, hencenot being considered as essential, butcan also be found in corbicula clams -the source of alanine used in No-Mikata - beans, meat, nuts, dairyproducts, eggs, fish and seafood,amongst other foods.

Alanine is said to be vital for the production ofprotein and for the proper functioning of thecentral nervous system as it helps formneurotransmitters.The amino acid is alsonecessary for maintaining stable blood glucoselevels and releasing energy from protein andfrom the muscles during exercise. In terms of itshangover curing credentials, alanine helps byquickly addressing hypoglycaemia - an excessivedrop in blood glucose levels that can be causedby drinking too much alcohol - by releasingstored glucose and thus restoring energy levels.

Each bottle of No-Mikata contains 5g of alanine,equivalent to the content found in 600 clams.Ajinomoto has said that the amino acid isabsorbed by the body in less than 30 minutes,after which consumers can begin to feel thebenefits.

No-Mikata has been available through a widerange of outlets in Japan since the beginning of2010.

www.ajinomoto.co.jp

Issue 18216 April 2010

editorial commentWelcome to the 182nd issue offunctionaldrinks.As developmentsin the energy drinks categorycontinue unabated, more and moreconsumers from different walks oflife seem to be recognising that theycan benefit from an energy boost toface the demands of daily life.

In another energised issue we explore howcompanies are responding to this increaseduptake by creating unique offerings to better suitindividual requirements.

First we look at the evolution of VitalityDistribution's caffeinated plain bottled water,seemingly the only such water in the US, whichwas created to satisfy the founder's own energyneeds (see Page 4).

We also report on the latest entrant to theenergy category by Crunk LLC with a powdersachet that not only delivers the same punch andingredients as its regular counterpart, but isportable and convenient (see Page 3).

Also in the US, we look at the introduction of abeverage by Reed's Inc that helps alleviatesymptoms of nausea and was inspired by feedback

from Reed's ginger soft drink consumers who notonly consumed them for refreshment purposes butalso to treat nausea (see Page 6).

Meanwhile, Better Health Beverage hasentered the nutraceuticals market with a line ofdrinks that help to suppress the appetite, as wellas energise, to assist all women with their weightmanagement goals (see Page 1).

In Europe, James White Drinks has introduced ashot-sized version of its beetroot juice, targeted atconsumers looking for a pre-sport boost or simplyto feel more energised (see Page 5).We also look attwo new healthy energy shots launched by All DayEnergy Ltd (see Pages 6 and 7).

French distributor to the on-trade channelDelidrinks has recently started importing Venga,a range of nutrient-enriched drinks (See Page 3).And in Italy, supermarket Sigma has debuted aline of pre- and probiotic yogurts through itspartnership with ingredients company Beneo-Palatinit (see Page 5).

Finally, we review the launch of a recovery drinkin Japan by Ajinomoto. Made with clam extract,this claims consumers can begin to feel thebenefits in less than 30 minutes (see below).

Cecilia Martínez NúñezDeputy Editor

[email protected]

functionaldrinkszenithinternationalnewsletter


nutraceuticals Japan




Innovative firmsticks to new gunsCrunk LLC has unveiled the latestaddition to its eponymous energydrink range, the format of which is afirst for the company.Across the energy drinks category,the vast majority of operators havemoved away from the 250mlslimline can, a long-standingtradition that came about throughpioneering Red Bull, towardssupersize offerings, and mostrecently to shot-sized extensions.However, CRUNK has skippedthese entirely and instead launcheda powder stick.

CRUNK!!! Energy Stix are what thecompany calls powder-shots, designedto be consumed by sprinkling thepowder on the tongue, without theneed of mixing with water.

Formulated to deliver long-lasting energy withlow calories and no crash, CRUNK!!! Energy Stixcontain the same ingredients as the rest of theline, with one sachet providing just 10 caloriesfrom 2g of sugar in addition to 50% of the dailyvalue (DV) of vitamins B3, B6 and B12. Moreover,the Energy Stix, currently available in an orangeflavour, contain white willow, ashwagandha, ginkgobiloba, skull cap, milk thistle, green tea, guarana,

panax ginseng, and 100mg of caffeine.

The company recommends consumingone sachet for moderate energy, ortwo sachets for maximum energyequivalent to twice the caffeinecontent of a regular can of CRUNK!!!energy drink.The Energy Stix arehighly portable, according to thecompany, and convenient for on-the-go consumption, whilst studying,driving, or exercising.

CRUNK!!! Energy Stix retail forUS$2.99 per two sachet blister packthrough the same outlets as theoriginal energy drink line.

www.crunkenergydrink.com

Herbal offeringinfuses horecachannelFrench distributor of beverages tothe on-trade sector Delidrinkshas added a selection of the US-

born Venga range ofenriched beveragesto its portfolio.

Venga was launched in August2008 (see Issue 141) byBeverage Innovationswhich produces anddistributes the drinks inGermany and the US.Thedrinks are all based on pureSwiss alpine water and mixedwith100% fruit juices, vitaminsand minerals to offerconsumers 'the nextgeneration of functionalbeverages'.

The original line includes Brainstorm, CalorieBurn, Daily Dose, Energize, Health & Zen andRehydrate variants. Of these, Delidrinks currentlyonly carries the Calorie Burn and Energizevariants in addition to two new offerings: Relaxand Immunity Defense.

Relax contains white grape, grapefruit and whitetea as well as chamomile, lemongrass, magnesium,aloe vera, folic acid and vitamins B2, B5, B6, B12and E.All of these combine to help the bodyrestore its natural equilibrium and reducepsychological and physiological, or oxidative, stress.

Meanwhile, Immunity Defense features a mix ofred fruits and berries and green tea.Tostrengthen the immune system the antioxidant-rich drink contains grape seed and grape skinextract, shiitake mushroom extract, folic acid,biotin, vitamins B1, B5, B6, B12, C and E toprovide 700mg per 500ml.

Calorie Burn features lemon, lime and green tea,whilst Energize contains orange, acerola and matétea.

The drinks will be available through cafés, barsand food service outlets.

www.delidrinks.com

enriched beverages France

energy drinks United States

Activating newnichesNine months following theunveiling of its novel caffeinatedwater, functionaldrinks spoke toVitality Distributing founderand CEO, Brian Pitzer, to find outmore about the product'sprogress.

Upon launch, the functional water - called'avitae' (ah-vee-tay) - sought to fill what wasperceived as a gap in the US beveragecategory for a caffeinated non-flavoured water.As such, theproduct contains just that: purifiedwater and 45mg of tasteless,odourless natural caffeine per500ml of water, making it anapparent equivalent of a dietsoda.

Pitzer explained the history ofthe name avitae, whichcombines the Latin word vitae(life) with the letter 'a' foraqua, therefore giving it themeaning "water for life".

Pitzer also toldfunctionaldrinks thatalthough avitae was launchedin June 2009, its conceptdates back to 2005, when hefirst took the decision todevelop a drink containingcaffeine but free fromflavourings, sugar and othersuch ingredients to satisfy hisown needs as well as thoseof consumers.The nextthree years were spent inthe pipeline with aningredients company whichdeveloped the taste andodourless caffeine used inavitae on the basis that itwould generate sufficientadditional demand towarrant the investment.

Vitality Distributing,currently composed ofjust four people includingits founder, has

reportedly been receiving positive and veryencouraging feedback on both the functionalwater itself as well as its packaging.

Moreover, the company has recently announcedan agreement with 20 new distributors acrossten states in the Midwest, which will see thesale of avitae in around 10,000 locations,compared with its current 3,000, mainly throughsupermarkets, convenience stores, pharmaciesand drug stores.

With regards to the water's positioning againstregular caffeinated energy drinks, Pitzer doesnot see these as competing products due toavitae's target market, which he described asbeing "sophisticated, health conscious, classy

clientele" who recognise they need a liftbut do not want the artificial chemicalsfound in other drinks. avitae competesmore against diet sodas and plainbottled water whose uplifting effect ismore subtle.

On reaching its audience, Pitzersaid that viral marketing has beenthe principle medium due tobudget limitations for expensiveabove the line media.Thecompany has also been usingsocial media as well as samplingat points of purchase and variousevents to promote avitae.However, Pitzer stressed thateven if Vitality Distributing hadenough capital to engage intraditional advertising, hewould still opt for guerrillamarketing as he believes it isbetter to grow a brandthrough word of mouth thanthrough 'big' media activity.

As well as its continuedfocus on growing the avitaebrand, Pitzer revealed thatVitality Distributing intendsto launch brand extensionsin the near future to meetconsumers' changingrequirements.

avitae has a suggestedretail price of US$1.49 per500ml bottle.

www.avitae45.com




energy drinks/functional waters United States


Meeting consumers'desire for betterhealthItalian supermarket Sigma hasrecently launched a range of pre-and probiotic yogurts as part of itscommitment to satisfy consumerdemand for products promoting abalanced diet.

The supermarket partnered with Germaningredients company Beneo-Palatinit to developthe drinking yogurts under its own-label range.The line is composed of four variants: forestfruits, banana, peach-kiwi and plain with cereal.The latter two variants are low-fat with only

0.1% fat compared to their regular counterparts.

All yogurts contain the Lactobacillus casei strain inaddition to Beneo's chicory root extracted fibre,which is rich in the prebiotic oligofructose andable to deliver its benefits but pass through thedigestive system without actually being digested.

The yogurts are targeted primarily at dynamic,modern and demanding consumers who are healthconscious. Moreover, the yogurts are made usingnatural ingredients, making them more palatable forthose looking to stay away from artificial chemicals.

According to the retailer, the yogurts wereintroduced as part of its desire to grow its own-label offerings, which currently account for 22%of turnover, whilst also responding to consumertrends.

The yogurts are available in 200ml bottles and hadan introductory price promotion of €0.50 apiece.

www.supersigma.com



Shot effect hard to‘beet’Organic juice manufacturer JamesWhite has introduced a stamina-boosting 70ml concentrated shotof its aptly named beetroot juice,Beet It.Aimed at the UK's functional drinks market, thenew proposition - Beet It Stamina Shot - has asports positioning, unlike the company's existingoffering which emphasises the heart healthcredentials of beetroot.

The innovative move comes after the results of ascientific trial, led by the University of Exeter andco-authored by top UK sports scientist ProfessorAndy Jones, were published last year. Researchersfound that the naturally high dietary nitratecontent found in beetroot juice is converted viaenzymes in saliva in the mouth to boost nitricoxide levels in the blood.This boost was foundto reduce the oxygen needed during enduranceexercise and showed that stamina could beenhanced by up to 16%.

Lawrence Mallinson, Managing Director of JamesWhite, commented on the impact of theseresults, "Interest from the elite sportsprofessionals of cycling and swimming to athleticsand even the England rugby team took off

straight away after the publication of ProfessorJones' research. I know this because we are nowsupplying them all directly ourselves."

Unlike the Beet It organic beetroot juice, the newshot is made with concentrated beetroot juicecombined with lemon juice to reduce its sweetness.Consequently it neither tastes nor smells likebeetroot, although it still retains the characteristicdeep purple colour. It tastes delicious, according toMallinson, and should appeal even to those whodislike the taste of the distinctive vegetable.

The unique selling point of Beet It Stamina Shotcompared to other sports drinks is, rather thanrelying on glucose as a stimulant or water torehydrate, beetroot's naturally high dietary nitratecontent which impacts blood pressure and staminalevels.Additionally, it is positioned as the onlyorganic and entirely natural sports drink whichalso counts towards one of the recommended 5-a-day portions of fruit and vegetables.

Scheduled for launch in May 2010, the productwill be supported by an integrated marketing andPR campaign, both off and online, and targetedprimarily towards the sports drinks market butalso to health conscious individuals.

Beet It Stamina Shot is certified by Informed Sportsconfirming that it will have no impact on drugs tests.Ideally consumed one to three hours prior toexercise, the new shot will carry a recommendedretail price (RRP) of £1.79 and will be available incounter ready boxes of 15 units.

www.jameswhite.co.uk

functional dairy Italy

nutraceuticals United Kingdom

Intense shot aimsh'i'ghAll Day Energy Ltd has made itsforay into the UK energy drinksmarket with what it positions as ahealthy alternative to existingenergy shots.

Called iShot, the new offering has beenscientifically developed with a uniquecombination of B vitamins, amino acids,antioxidants and herbs to create a stimulatingshot designed for working people with activelifestyles who could benefit from heightened

alertness, focus and energy.

In terms of ingredient quantities, iShot contains15% of the recommended daily allowance (RDA)of vitamin B2, 100% of the RDA of vitamins B3and B5, 200% of the RDA of vitamins B6 and B9,as well as 300% of the RDA of vitamin B12. Inaddition, the shot contains glucoronolactone,Siberian ginseng, L-carnitine, guarana and greentea extract, as well as being free from sodiumand low in calories to deliver a crash-free andsustained energy boost.

Kursat Uysal, Managing Director of All DayEnergy, commented, "Most people need anenergy boost when juggling the demands of dayto day living, such as working late at the office orbeing on the road. Good nutrition, rest and

(continued on Page 7)




Calm wave washesover numerouschannelsReed's Inc, producer of ginger-based soft drinks and other gingerproducts, has introduced a beverageharnessing the properties of thepopular root to alleviate commonsickness.

Called Reed's Rx, thelatest drink to join theReed's portfolio wasdeveloped upon thecompany's discoverythat customers wereroutinely using itsproducts to helpalleviate thesymptoms of motionsickness, morningsickness and nausea.Neal Cohane, SeniorVice President of Sales and Marketing, stated,"We have received many testimonials over yearsfrom people who have used our products. Inaddition, ginger has a very long history of use asa remedy for nausea."

Reed's Rx contains 12g of fresh ginger and 10mgof vitamin B6, along with lemon, lime, honey andpineapple to offer a tropical and fresh-tastingalternative to traditional nausea medicines.

Ginger is a traditional herbal tonic used toalleviate nausea. It has reportedly been in use inChina and India for thousands of years, not onlyto treat nausea but also for other health benefits.Other cultures, such as the Roman Empire, usedginger extensively to settle stomach complaints.More recently, vitamin B6 has gained recognitionfor its anti-nausea properties.

Cohane commented on the launch, "The Reed'sRx product line represents an exciting newgrowth area, and is a testament of thenaturalness and healthiness of our products.Thisnew product allows us to access over 24,000convenience, grocery and drug stores across theUS that have stomach aisles offering over-the-

counter nausea reliefproducts, as well asother channels,including hospitals,cancer centers,airports, and cruiseships, whereconsumers are lookingfor naturalalternatives.Webelieve this representsan exciting newopportunity tosignificantly grow our

sales beyond traditional food and supermarkets."

Reed's Rx is available in 5.5oz cans and can bepurchased through select pharmacy and healthfood stores as well as through the company'swebsite where a case of 24 mini-cans retails forUS$26.95.

www.reedsinc.com

enriched beverages United States

energy drinks United Kingdom

EuropeFrance: Collagen-specialist Rousselot hasannounced that it will be showcasing itsproprietary ingredient Peptan at the forthcomingIn-Cosmetics exhibition to be held in Paris on13-16 April.The company's planned attendance isin line with its commitment to grow its presencein the cosmetics and cosmeceutical industries.

Ireland: Australian company Probiotec Limitedhas revealed that it will establish its Europeanmanufacturing headquarters in Dundalk, Ireland,where it will produce its range of Celebrity Slim-branded weight management and other foodproducts.The investment is expected to create 70new jobs and generate sales of over €30 millionover the next three years.

UK: Coca-Cola Great Britain (CCGB) ownedRelentless launched its lifestyle magazine This IsThe Order online for the first time in March.Until now, the free quarterly magazine was onlyavailable in participating stores and venues butwill now also be available as an online publicationfor readers.

The British Soft Drinks Association (BSDA) hasannounced that its members have created a codeof practice for the marketing and sale of energydrinks to children, however there is apparentlyconfusion over energy shots as these are notcovered by the code. Under the code, drinks willnot be marketed to children under 16 and willcarry on-pack warnings that pregnant women,children and people with sensitivity to caffeineshould not consume them.The only main playerin the energy category not to be part of the codeis Red Bull.

GlaxoSmithKline has been promoting itsLucozade Alert Plus energy shot in the tradepress, highlighting the product's accompanying £5million marketing campaign.

North AmericaUS: GMP Laboratories of America, producerof custom dietary supplements, has expanded itsproduction capabilities for various forms of liquidproducts to meet growing demand.The company iswell known for producing custom nutraceuticals,

(continued from Page 6)

regular exercise are the best ways to stay alert,however sometimes we need that added boost."

According to Uysal, the shot's attractive andminimalist look reflect its quality and consumerappeal amongst working adults, coupled by itsingredients - such as such as green tea, ginseng,açaí berry and L-carnitine - which are alreadycommonly consumed by this group in tablet,powder or drink form.

The firm presented itsenergy shot at the recentConvenience RetailingShow 2010 inBirmingham from 21-24March. Uysal said, "Wedecided to initially launchiShot at the ConvenienceRetail Show in March asthis is where our targetmarket would be andwould provide anopportunity for us tomeet our potentialpartners in thewholesaling anddistribution of thisexciting new product."

And its presence at the exhibition was a success,with several stores, wholesalers and distributorsexpressing their interest in iShot, and some alsoplacing orders on the spot.

As part of its promotion at the event, iShotunderwent extensive sampling - tasted by 2,500people, the results of which revealed that theiShot Decaff (açai berry flavoured), followed byits original counterpart, was considered the besttasting energy shot, with the company statingthat even staff from three competitors present atthe event recognised the shot's great taste.These

results support thosefrom a survey regardingthe shot's efficacy, inwhich 96% of participantsreported significantincreases in energy levelsover a five hour periodand said they woulddefinitely purchase theproduct.

iShot All Day, packaged in60ml bottles, is alreadyavailable for purchase inoriginal, with an orangeflavour variant to follow,and iShot Decaff variants,

both of which retail for £1.59 apiece.www.ishotenergy.com




functionaldrinks in brief

energy drinks United Kingdom


herbal beverages, vitamins and minerals.

Producer of functional waters for children andteenagers Wat-Aah! will be sponsoring thisyear's New York International Children's FilmFestival (NYICFF).Wat-Aah! founder, RoseCameron, stated, "We are thrilled to besponsoring this year's New York InternationalChildren's Film Festival. NYICFF is the largestfestival of film for children and we're alwayslooking for opportunities to help promotecreativity for kids around the country, somethingthis festival has been doing since 1997."

Hall of Fame Beverages has signed a letter ofintent with the V Group for the purchase of apercentage of its new brand a.n.d. (AntioxidantNutritional Drinks). Larry Twombly, CEO of Hallof Fame Beverages, commented, "This is a veryexciting opportunity for both parties. Not only isthis new brand poised to be the leader in qualityfunctional beverages, it also opens up the door tosome of the most respected distributors in thebusiness."

Next Generation Beverage and The CanadaDry Bottling Company of New York haveentered into an agreement for the distribution ofthe former's Serenity Zen Beverage.Thedistribution agreement will cover over 25,000points in the New York City and GreaterMetropolitan area.

Las Vegas-based energy drink company Xyiencehas announced that its Xenergy branded drinkswill be distributed in Texas by Silver Eagle througha range of retail chains, including Valero, Kroger,H.E.B. and Timewise Food Stores. In addition, thedrinks will be distributed across the state ofGeorgia by United Distributors to a range ofconvenience and supermarket chains.

Coca-Cola-owned Glacéau has launchedvitaminwater zero, which will be available in sevenvariants in 20oz bottles from April 2010.Topromote the launch,American stand-up comedian

and American Idol judge Ellen Degeneres willappear in a national advertising campaign as wellas vitaminwater zero featuring on American Idol.

Skinny Nutritional Corporation has signed adistribution agreement with Arizona-basedretailer Fry's Food Stores for the sale of itsbeverages across 120 stores in the state ofArizona.

In other company news, Skinny NutritionalCorporation has announced that BarryJosephson will join its Board of Advisors.Josephson has an extensive career in theentertainment industry and was instrumental inintroducing Skinny Water to the Hollywoodcommunity.

Go Fast Sports and Beverage Company hasappointed Jonathan Ekstrom as MarketingManager and Brad Gorman who has returned tothe company as Art Director.

WorldAccording to other industry opinion, functionaldrinks continued to represent the category withthe best growth rates for the last five years to2009, only behind RTD tea.The company alsoforecasts that growth rates will slow down in thenext five years as sports drinks, which make up alarge part of functional volumes, start to dwindlein the US, coupled with a slowing down of theeconomy.A report concluded that the bestopportunity to grow the functional category is toexpand distribution across all sub-segments.

Representatives from various ingredientscompanies have reiterated that consumers areincreasingly looking for beverages made not onlywith natural ingredients but that also have a cleanlabel. In terms of flavours, companies have seen asurge in demand for herbal and botanical flavourssuch as hibiscus, elderflower, jasmine or lavenderfor use in RTD beverages. Ingredients and flavourhouses expect this trend to continue.

Editor: Jenny FouldsDeputy Editor: Cecilia Martínez NúñezMarket Intelligence Director: Esther Renfrew

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100416_FD_Issue 182

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