100811_FD_Issue 190

Out with the toxinsand hangoversLuxembourg-based Outox hasrecently introduced its eponymoushangover-busting drink to theFrench market amidst controversy.

When Outox was unveiledat the beginning of June2010, its launch attractedcriticism due to the fact thatthe drink was promoted ashelping significantly reducethe amount of blood alcoholapproximately one hourafter having consumed thedrink.The claims weredisputed by some who feltthe drink would encourageconsumers, especiallyteenagers, to increase theirintake of alcohol, whilstothers doubted the drinkcould accelerate the rate atwhich the body metabolisesalcohol.

This led the DirectorateGeneral for Competition,Consumption and theRepression of Fraud(DGCCRF), to ask Outox toamend the claims made onits packaging. In its defence,Outox submitted a scientificdossier to the EuropeanFood Safety Authority(EFSA) which demonstratedthat the drink, composed offructose and ascorbic acid,stimulates the liver toproduce the enzymesresponsible for metabolising alcohol.

Nevertheless, Outox may now only claim that the

beverage helps accelerate the decrease in bloodalcohol and helps prevent "difficult mornings". Inaddition, Outox has been obliged to includewarnings on the packaging that state that theeffects of Outox depend upon the person's age,weight and amount of alcohol consumed as wellas urging consumers to drink responsibly.

In France, this is not the first drink to have beenlaunched that promises to help deal with the

effects of drinkingalcoholic drinks. In 2006,Security Feel Better(see functionaldrinksissue 71) was asked tostop advertising itspublicity campaign as theclaims were thought to beexaggerated and could notbe substantiated.

In the UK, SolutionSciences Ltd also stirredup public opinion with thelaunch of Alibi Pretox (seefunctionaldrinks issue152).Alibi is a drink that isintended for consumptionprior to consuming alcoholas it 'prepares' the bodyfor a night out. Criticismfollowing the launch ledthe company to adapt itsmarketing and focus onthe drink's ability to helpprepare the body for ourhectic lifestyles.

Outox is lightly sparklingand available in Tutti-Fruttiflavour.The drink is soldthrough the company'swebsite and available for€21.58 for four cans,€87.78 for a box of 24cans or €3.99 apiece notincluding postage.

www.outox.com

enhanced new age nutraceutical energy sports juice dairy

functionaldrinkszenith international newsletter Issue 190 11 August 2010

Page twoMalaysians add fibre to their diet

Pages six and sevenReview of drinksfor children

Page fiveSporty Mexicansget juicy drink

Page fiveCelestial packagingfor horeca

This issue at a glance... nutraceuticals France

Add a spritz ofpassion and fibreto your dietMalaysian bottled waterproducer Spritzer hasadded a fibre-enrichedwater to its existingportfolio.

Launched under the Spritzer brandof still and sparkling waters, Spritzer+ Fibre contains a unique mixtureof inulin and oligofructose which isa soluble dietary fibre with prebioticproperties. Numerous clinicalhuman studies have demonstratedthat this combination of inulin andoligofructose not only helpsincrease intake of dietary fibre butalso has a probiotic effect and helpsincrease bone density and calciumabsorption.

It is well known that only one thirdof the calcium consumed through

diet is actually absorbed by the body,whilst the remainder is excreted and,according to Arthritis FoundationMalaysia, it is estimated that over one

million people in Malaysia are at risk fromosteoporosis, of which 20% are men.

This fact, together with the company'sreputation for quality, has ledMalaysia's Ministry of Health (MOH)to endorse Spritzer + Fibre.

The company has positioned thedrink as suitable for all consumersinterested in leading a healthylifestyle or simply for those wishingto rehydrate and refresh. Moreover,Spritzer + Fibre can be drunkthroughout the day, at work orduring leisure time.

Spritzer + Fibre is passion fruitflavoured and is available in 350mlbottles.The drink can be purchasedonline through the company'swebsite where a box of 18 bottlesretails for Ringgit 48.90.

www.spritzer.com.my

editorial commentWelcome to the 190th issue offunctionaldrinks. In this issue,our contributor Laura Knightexplores the market of functionaldrinks for children and theofferings available in differentcountries (see Pages 6 and 7).

On the other side of the spectrum, we coverthe tumultuous launch in France of an anti-hangover drink by Luxembourg-based companyOutox (see Page 1).Also in France and inneighbouring Germany we follow the expansionof the Monster energy drink brand (see Page 3).Still in Germany we look at the latestdevelopments of Angel Drink GmbH in theform of a new and exclusive glass bottle designfor the horeca channel (see Page 5).

Energy drinks continue to grow at a relentlesspace in the UK, testament to this is thecontinuous stream of new entrants to the

market.We look at leading men's magazineLoaded which has introduced a shot with libido-enhancing properties (see Page 3).We also coverthe launch by Britannia Beverages of alemonade infused with energising ingredients(see Page 4).

Over in Mexico, Coca-Cola de México haslaunched seemingly a first in the sports drinksarena with a juice-based offering (see Page 5). InMalaysia, leading bottled water companySpritzer has made its entry to the functionaldrinks arena with a fibre-added water for thoselooking for more benefits from their preferredbrand of bottled water (see below).

Finally, we cover the expansion of XL Energydrink which has just been introduced to Italyand is expected to gain a significant share of themarket if its performance in neighbouringmarkets is anything to go by (see Page 4).

Cecilia Martínez NúñezDeputy Editor

[email protected]

Issue 19011 August 2010

functionaldrinkszenithinternationalnewsletter


near waters Malaysia

Loading the UKshots marketLeading publisher IPC, the force

behind men's magazine Loaded,has joined forces with

nutraceuticals companyPodium Brands to launch astamina shot with allegedlibido-enhancing properties.

Designed to help the consumer 'lift theirgame', the new Loaded Stamina Shot hasthe same energy-boosting effects as aregular-sized energy drink but ispresented in the increasingly popular60ml shot format.

As reported on FoodBev.com, the multi-functionalproduct contains amino acids, herbal extracts,vitamins and stimulants from natural dietarysources that are blended for a powerful effect.With a balanced energy formula, the shot is free ofsugar and claims to provide hours of energy'without the jitters'.

Featuring the popular Loaded cover girl, IndiaReynolds, who will also be promoting the brand atevents across the UK, it is hoped that the bottlewill stand out on the shelf.

To be priced at £1.99, the new launch will besupported by a multi-million pound advertisingeffort from November, including advertising inrelevant IPC publications, direct promotion toLoaded's reader database, in addition to a range ofother media activities.

www.loaded.co.ukwww.globalbrandsgroup.com




Energy drink widensits reach in EuropeCoca-Cola Enterprises (CCE)has been capitalising onthe growing success ofMonster energy drinkacross Europe.

In France, Monster was firstintroduced in March 2009 inOriginal, Ripper and Lo Carbvariants. Having quickly gained an11% share of the energy drinksmarket, CCE has recently addedMonster Khaos.

Khaos is made with a combinationof fruit juices, amounting to 50%of the total, which give it apleasant peach-citrus flavour withminimal aftertaste. Sweetenedwith Splenda and acesulfame-K, itis also relatively low in calories at90 calories per serving or 180calories per can.

Khaos, as with the rest of the line-up, contains 100% of therecommended daily allowance

(RDA) of vitamins B2, B3, B6 and B12 as well as40% RDA and 20% RDA of vitamins A and Crespectively. It also contains taurine, panaxginseng and an 'energy blend' composed ofglucose, caffeine, guarana, L-carnitine,glucoronolactone, inositol and maltodextrin.

Khaos is available through mostlarge retailers as well as on-premise and it retails forapproximately €1.79 apiece.

Meanwhile, Trend BeveragesVertriebs GmbH hascommenced distributing MonsterEnergy in Germany.

The company will be making themost of Monster's sponsorshipof the Mercedes GP PetronasFormula 1 team.As part of thesponsorship deal, the Monsterlogo appears on the helmets,race suits and water bottles ofdrivers Nico Rosberg andMichael Schumacher.

Initially, Monster will be availablein the German market in Originaland Ripper variants.

http://europe.monsterenergy.com

energy drinks France/Germany

energy drinks United Kingdom

X-Large dose ofenergy for ItaliansXL Energy Drink, in conjunctionwith import-export specialist

Chi.Fra,hasintroducedXL Energydrink intothe Italianmarket.XL Energy Drinkwas firstlaunched in 2000in its nativePoland, where itquickly achieveddouble-digitmarket share.Asits popularityspread outsidePoland, so toodid distributionof the drink to

countries such as Germany, Israel and Francewhere, according to XL Energy, the drink alsoholds double-digit market shares.

Chi.Fra, a company with years of experienceimporting and exporting products from Poland,is the official distributor of the energy drink inits three variants: Classic, Sugarfree andCranberry, available in three formats, classic250ml slim can and in 500ml and 1 litre PETbottles.

XL Energy drink is targeted at students andyoung, active adults that are in constant need ofhigh levels of energy and performance but arelooking for a tasty alternative to help themachieve their goals.

To promote the drink, Chi.Fra is makingextensive use of social networking sites such asfacebook in addition to supporting retailers withpoint of sale (POS) material such as bar coolers,branded T-shirts and hats, posters, banners anddisplays.

XL Energy drink is available through selectretailers and on-trade outlets such as bars andnightclubs.

www.chifra-energydrink.com




Combining Italian-taste with energyBritannia Beverages hasrecently launched an energy drinkthat boasts great taste and equallyimpressive energising effects.

The drink has been named Mad Dog EnergyLemonade and, made using organic Sicilianlemons, is said to taste like classic lemonade.

This is achieved by using a unique extractionprocess which allows for the

inclusion of energy-givingingredients withoutaftertastes orinterferences.

A 250ml slim can of MadDog Energy Lemonade

contains 80mg of caffeine,1,000mg of taurine as well as

vitamins B3, B6 and B12.

The drink is already distributed in CentralLondon with a mixed above and below the lineadvertising campaign that includes among othersusing yellow-wrapped Beetle cars with giantcans attached to them that will circulate aroundthe city.Advertising is scheduled to runthroughout summer 2010.

Brand Manager, Max Levachin, said, "The launchis a very exciting and new development for theUK market and follows on from similarsuccessful products in the US such as AMPLightning and Guru Energy Lemonade drinks. Sofar the customer reception has been very warmand we look forward to the rest of 2010 withthis drink."

Mad Dog Energy Lemonade can already bebought through the company's website.A 24-count box retails for £14.49 or £0.60 apiece.

www.maddogenergylemonade.com

energy drinks United Kingdom

energy drinks Italy

Juicing up thesports categoryShortly after launching the re-designed Powerade for the 2010

World Cup,Coca-Cola deMéxico hasadded twovariants to the

line-up thatarereportedly afirst in thecountry.

POWERade Citric'Reaction is,according to Coca-Cola de México, thefirst isotonic drinkin the country thatcontains fruit juice,either lime ororange juice, inaddition to theingredientspresent in theoriginalformulation,

namely vitamins B3, B6 and B12, maltodextrin,electrolytes and no preservatives.

The drink is positioned as a hydrating drink forall sports enthusiasts who need more energy tocontinue with their daily activities wherever andwhenever they may be. POWERade Citric'Reaction is also targeted at those consumersneeding to hydrate efficiently and who needsustained energy.

Georgina Cabral, Brand Manager, stated that thenew drink was scientifically designed to betteraid sports enthusiasts and athletes alike tocontinue enjoying exercising.

Globally, POWERade was appointed the officialdrink for the 2010 World Cup and is now theofficial drink of five of the largest football clubsin Mexico. In addition to this, the company willaccompany the launch of POWERade Citric'Reaction with an advertising campaign spanningTV, radio, print, public relations, below the line(BTL) activities as well as national samplingactivities that will see millions of bottles givenaway for trial.

POWERade Citric' Reaction is available in 500mland 600ml PET bottles with sport guard cap andin 1 litre PET bottles.

The drinks are available through mostsupermarkets and convenience stores across thecountry.

www.powerade.com.mx

New class inglassA leading glasspackaging supplier, O-I, has produced a newbottle designexclusively for theorganic energy drink,Angel Natural EnergyBIO, to the horecachannel.

Upon its initial unveiling, theangelic offering was positionedas the first organic energisingbeverage of its kind to bebased on fruit juice. Featuringpomegranate and blackcurrantjuice, the drink has until nowonly been available in a foilpouch with a resealable capclosure.

The new glass bottle, a 250mlopaque white offering, will beavailable exclusively throughhoreca outlets in the Berlinarea.

www.angel-drink.com




sports drinks Mexico

packaging/energy drinks Germany

Functional drinks forchildrenfunctionaldrinks' Laura Knightprovides a round-up of the latestdevelopments on the segment offunctional beverages designed forchildren.

As the market for functional beverages continuesto grow, manufacturers are beginning to exploreways of differentiating themselves in a more andmore crowded market. One way they haveachieved this is by targeting specific consumergroups or particular niches and their relatedhealth concerns.

Child-friendly functionaldrinks are a growing areawithin the global functionaldrinks market, particularly inthe US where obesity levelsamongst children areworryingly high and wherehealthy soft drinkalternatives and vitamin- andprobiotic-enhancedbeverages are increasinglycommonplace.

As parents becomeincreasingly concerned overtheir children's health andgovernments seek toencourage consumers tomove away from traditionalsugar-laden beverages withnational health campaigns,the market for functionaldrinks targeted at children has expanded.Worried parents are also seeking a more naturalway of treating health issues by purchasingfunctional foods and beverages, rather thanopting solely for medicines.

The market has seen a wide range of youngconsumers' functional drinks emerge, includingbeverages designed to target cognitiveperformance, digestive health, bone health,immunity, obesity, energy, relaxation and generalwellbeing. Functionality has been added to the fullspectrum of beverage applications, includingwater, juice and milk, thanks in part to theprecedents set by some of the industry's leadingplayers across the categories, which have helpedto identify opportunities for the wider industry.

As with all functional beverages, but possibly evenmore so with children's functional drinks,manufacturers need to be aware of makingunsubstantiated claims regarding their drinks.Regulators, such as the Advertising StandardsAuthority (ASA) in the UK, have recently crackeddown on the use of potentially misleading healthclaims in advertising, such as those relating tochildren’s immune systems.

Manufacturers also need to carefully vet anyingredients that are included in functionalbeverages marketed at children. Caffeine levels inbeverages tend to be of particular concern, withgovernment health bodies such as Health Canadaissuing recommendations on maximum dailycaffeine intake for children. In Europe, the BritishSoft Drinks Association (BSDA) has published a

code of practice on energydrink marketing which statesthat energy drinks containingmore than 150mg of caffeineper litre may not bepromoted or marketed tochildren under the age of 16.

In the ever-growingfunctional drinks market, thedemand for beveragesformulated specifically tomeet the needs to children islikely to continue to grow inthe future as manufacturersexpand their existingbeverage ranges to include avariant for young consumers,and with new companiesentering the market tocapitalise on the untappedpotential for children-oriented products in thecurrent market.

Below is a selection of the latest innovativefunctional beverages for this age group:

Category: Nutraceuticals Country: USAManufacturer: Neuro BrandsBrand: Neuro Junior

The Neuro Junior range of six functionalbeverages includes: Neuro Sport Junior (containscalcium, magnesium, chloride, sodium andpotassium), Neuro Sonic Junior (contains omega-3 fatty acids for mental performance), NeuroTrim Junior (contains a form of konjac fibre topromote weight loss), Neuro Sleep Junior(contains chamomile to promote relaxation and

(continued on Page 7)




functional drinks World

(continued from Page 6)

lemon balm to promote sleep quality), NeuroFun Junior (contains omega-3 fatty acids foroptimal cognitive function and calcium for strongbones), Neuro Bliss Junior (contains l-theanine, anamino acid from green tea to promote relaxationand increase focus and concentration).

Category: Wellness beveragesCountry: USA Manufacturer: KIDStrong EnterprisesBrand: KIDStrong

KIDStrong was created by Dr GeorgeMurphy, a molecular scientist at HarvardMedical School, who wanted to providechildren with a nutritious naturalhydration beverage in a bid to combatthe growing epidemic of childhoodobesity.The drinks include a blend oflow glycemic index carbohydrates, 22vitamins and minerals, and electrolytesto promote energy and prevent fatigue.

Category: Functional dairyCountry: India

Manufacturer: Britannia IndustriesBrand: Actimind

Actimind is an enriched milk-based drink from India's Britannia Industrieswhich contains a range of nutrients tosupport young consumers' development,including B vitamins, choline to enhancememory, and iodine to support cognitivefunction.

Category: Enriched beveragesCountry: GermanyManufacturer: Bad BrambacherBrand: Vita-Mineral Kids

Earlier this year, German mineral water companyBad Brambacher expanded its Vita range ofvitamin- and mineral-enriched drinks to includeVita-Mineral Kids.The drink has 5% fruit content

and has been specifically formulatedwith glucose, magnesium and six

vitamins to meet thenutritionalrequirements of itsyoung targetconsumer group.

Category:Wellness beveragesCountry: USAManufacturer:B.R.A.T. Diet LLC

Brand: OrganicB.R.A.T.WellnessDrinksB.R.A.T. Diet hasintroduced a line ofrice milk organicbeverages based onthe B.R.A.T(bananas, rice,applesauce, toast)diet which is saidto be helpful forthose with sensitivestomachs, gastro-intestinal issues orduring illness suchas the flu.Thedrinks also containelectrolytes toboost rehydration, and are fortified with vitaminsand calcium.

Category: Enriched beveragesCountry: USAManufacturer: NextFoodsBrand: GoodBelly Kids Organic Probiotic Fruit

Drink

GoodBelly Kids Organic from NextFoods is afruit drink containing the live probiotic culturesLactobacillus plantarum299v (Lp299v) andBifodobacterium lactis (Bi-07) to strengthen coredigestive health and boost the immune system.The drink also contains vitamins A, B6, C, E andselenium, plus calcium and vitamin D to promotestrong bones and teeth.

www.neurobrands.comwww.kidstrong.comwww.britannia.co.in

www.brambacher.dewww.bratdiet.org

www.goodbelly.com




functional drinks World


EuropeThe European Food Safety Authority (EFSA) hasdefended its methods and opinion with regards tothe rejection of Groupe Danone's probioticinfant nutrition claim back in December 2009.

Denmark: Results of a study conducted atAarhus University suggest that the perceived fitbetween carrier product and ingredient is astrong predictor of the success of functional foodor drinks. For example, consumers are morelikely to purchase omega-3 rich tuna salad asopposed to other omega-3 rich foods that do notalready contain the ingredient.Also, carrierproducts that have been deemed to be healthy intheir own right by experts are seen to have abetter fit with functional ingredients.

Switzerland: Researchers from the AllergyGroup department in the Nestlé Research Centrehave found that polyphenols derived from applesmay reduce or prevent an allergic response to foodallergens in rats.The scientists pointed out thatfurther studies are required to determine whetherthe polyphenols have the same effects in humans.

UK: GlaxoSmithKline (GSK) has launched anapplication for mobile phones under its LucozadeSport brand that offers consumers personalisedtraining and nutritional advice.The application,FitCoach, works alongside Lucozade's onlinetraining tool and allows for synchronisationbetween the two.

In other company news, it has emerged that GSKis in advanced talks to launch the Lucozade brandin the US as part of the company's increasedcommitment to developing its Consumer Healthdivision.

North AmericaUS: EQ Labs, producer of Smart Energy Drink,has reported a spike in sales for the first quarterof 2010 as distribution has been widened to LasVegas, New York, California and Florida. Smart

Energy is sold through Best Buy, 7-Eleven,Walgreens and other retailers.

Yakult USA has announced plans to build afactory in City of Fountain Valley, California.Operations are expected to commence in 2012with capacity to produce 250,000 bottles per day.The factory will serve the current salesterritories which span California, Nevada,Arizona,Texas, Colorado and New Mexico.

SOL Elixirs has secured a distributionagreement with The Vitamin Shoppe for the saleof its Solixir line of botanical beverages across allstores as well as online throughwww.vitaminshoppe.com.

Ganeden Biotech has announced a newpartnership with Glanbia Nutritionals for thecommercialisation of the patented probioticstrain GanedenBC30.Andrew Lefkowitz,President and CEO of Ganeden Biotech,commented, "Partnering with an industry leadersuch as Glanbia Nutritionals will enable us tobroaden the applications of GanedenBC30 intomore functional foods, beverages, and engineerednutraceutical applications."

Skinny Nutritional has announced its range ofbeverages will be sold through all 199 Lucky andSave Mart stores across California and primarilythe San Francisco area.

It has emerged that Vita Coco had alreadysigned a sponsorship deal with John Isner, thewinner of Wimbledon's longest tennis match,before the tournament started. Following fromIsner's win, Michael Kirban, CEO of Vita Coco,revealed that the company intends to fully utiliseits association with Isner and his performancethroughout the eleven hour-long match.

Red Bull has announced that its Art of Canexhibition will be held in Dallas,Texas, from 31 Julyto 22 August.The exhibition is open to all and theprimary item to be used is the Red Bull can.

Editor: Anya HembroughDeputy Editor: Cecilia Martínez NúñezContributors: Jenny FouldsMarket Intelligence Director: Esther Renfrewfunctionaldrinks is issued 25 times a year and is onlyavailable by subscription: electronic PDF format only £495;hard copy and PDF £595**VAT chargeable on electronic format to UK companies and EC companies not

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