091209_FD_Issue 174

From farm to bottleColumbia Gorge Organic, afamily-owned farm, hasintroduced two new juices to its100% certified organic portfolioof healthy drinks.

Both drinks, one featuring soy protein and theother rich in vitamin C, are part of its Vitatritionline of enriched juices. Like their existingcounterparts, the new offerings are gearedtowards consumers of all ages,particularly those looking for a healthyand nutrient-rich alternative to otherbeverages.

Protein Cocoa is made with GMO-free soy protein powder, low-GIagave syrup, banana purée coconutcream, soy lecithin, vanilla extractand dark chocolate cocoa, as wellas minerals and trace elementsfrom Himalayan pink salt - said tostimulate circulation, lower bloodpressure and eliminate toxins,amongst other functions. Eachserving of Protein Cocoa offers10g of protein.

Super C includes acerola cherries,guava, orange and lemon peel, allhigh in vitamin C.The drink alsocontains rosehips and the juice ofmangoes and strawberries todeliver 500% of the recommendeddaily value (RDV) of the vitamin.

Protein Cocoa and Super C aredistributed by the company's ownCoGo Northwest Distribution inthe states of Washington andOregon. Meanwhile, NaturalChoice distributes throughoutCalifornia with a third partydistributing throughout Minnesotaand Iowa.

Since launching its new beverages, the companyhas engaged in ongoing in-store sampling as wellas offering monthly promotions, which havehelped spur sales.According to ElizabethRoberts, Marketing Coordinator/ProductDevelopment of Columbia Gorge Organic,Super C is fast becoming one of the company'stop selling lines, whilst Protein Cocoa hasproven popular among vegetarians and vegans.

Protein Cocoa and Super C have been availablesince 24 August 2009 for a suggested retail priceof US$3.79 per 16oz bottle.

www.cogojuice.com

enhanced new age nutraceutical energy sports juice dairy

functionaldrinkszenith international newsletter Issue 174 9 December 2009

Page threeSlimming yogurt for ego boost

Page threeElderflower bringsseasonal health

Pages five and sixSporting chance inEurope

Page six and sevenIngredients focus on naturalness

This issue at a glance... enriched beverages United States

Supporting laterlife stagesAustrian dairy PinzgauMilch has made its seeminglyfirst entry into the functionaldrinks market with a high-calorie meal replacementdrink named Promilat Vital.

Launched in Germany in the summer, thedrink is targeted at elderly consumerswho wish to obtain their daily vitaminsand minerals in a convenient format.

The beverage has a skimmed milk baseand also contains milk protein powderand a high content of sweet cream tosatisfy the taste profile of its targetmarket. Each bottle contains 418 calories,

13.6g of protein, 59.6g of carbohydrates and 14gof fat.Added minerals include potassium, calciumand magnesium, with added vitamins includingvitamins B12 and D3.The beverage is available inready-to-drink (RTD) format in 200ml resealablebottles and is Ultra Heat Treated.The companyrecommends consumption of one to threebottles per day depending on the desirednutrient intake.

The drink is available in five flavours - vanilla,coffee, strawberry, banana and chocolate, and ispriced at €1.50, including VAT. Promilat Vital isavailable in retail outlets and pharmacies, anddirect from Pinzgau Milch, as well as also beingused in old people's homes and hospitals.

Following the product's success in Germany, thecompany aims to expand distribution to Austria,the UK, France, Scandinavia and Italy in the nearfuture.

www.pinzgaumilch.atwww.hochkalorik.de

Page 2 Issue 1749 December 2009

editorial commentWelcome to the 174th issue offunctionaldrinks.With only a fewweeks left until the holidayseason, there is still no slowdownin activity within the functionaldrinks arena, as the geographicalspan and diversity of productlaunches in this issue bearstestament to.

Starting in Slovenia, local dairy companyLjubljanske Mlekarne has introduced a fat-burning yogurt under its probiotic dairy range(See Page 3). Nearby in Austria, we look atPinzgau Milch's new high-calorie mealreplacement drink for elderly consumers (Seebelow).

Also dairy-based, and with European origin, is thenew cholesterol-lowering line by Colombian dairycooperative Colanta, which features Raisio'swell-known Benecol ingredient (See Page 4).

In the US we see two organic juices that havequickly found followers, launched by family-ownedfarm Columbia Gorge Organic (See Page 1).We also cover a new artisanal botanical infusionby Island Infusions LLC that promises to boost

the immune system throughout the winter (SeePage 3).

We also focus on a new 'ultra-fresh' energy drinkwith added brain health benefits, developed byNew York-based Specialty Beverage &Supplement (See Page 4).And for those womenwho are conscious not only of their appearancebut also of the environment, producer of naturaland organic beauty products Noah's Naturalshas unveiled its soon to be available powderedbeauty drink (See Page 5).

Following on from functionaldrinks' presence atthe recent Functional and Natural Ingredients (FIEurope) trade fair in Frankfurt, Cecilia Martinez-Nunez reports on an interview with WILD'sIngredients Product Manager Hélène Moeller,who gave us some interesting industry insights(See Pages 6 and 7).

Held alongside FI Europe in Frankfurt, we alsosummarise the main points raised at the Sportsand Performance Nutrition Conference,organised by Bridge2Food and with ZenithInternational Market Intelligence Director GaryRoethenbaugh as a key presenter (See Pages 5and 6).

Cecilia Martinez-NunezDeputy Editor

[email protected]

functionaldrinkszenithinternationalnewsletter


functional dairy Austria




Botanical immuneboostIsland Infusions LLC, producer

of the Tizane-branded range ofartisanal botanical infusions, hasintroduced an immune-protectingvariant for the winter season.

Elderflower Tizane, like its existing threesiblings, is 100% certified organic and free fromartificial preservatives, flavours, colours orcaffeine, and is instead sweetened with blueagave nectar, making the drink a low calorieoption.

Although FDA regulations do not allow thecompany to market Tizane as having any healthbenefits, all of the drinks contain activeingredients derived from herbs that have beenused for medicinal purposes for centuries.

Elderflower has long been recognised and usedin traditional herbal medicine for upperrespiratory illnesses such as colds, flu andsinusitis.The herb can reportedly also helpwith arthritis, soothe the nerves, act as an

anti-viral and boost the immune system.Taken inearly spring, it is thought to help reduce hayfeverlater in the season and is also considered anexcellent blood purifier.

The new infusion is targeted at people who arelooking for 'clean' beverages that satisfy bothtaste and health concerns.According to thecompany,Tizane is described as being about'keeping the body in a balanced and healthfulstate while satisfying the taste buds'.

Although Island Infusions is always seekinginspiration for new drinks, it apparently intendsto focus on growing the latest addition, which hasalready received favourable feedback from a largeamount of retailers and consumers. In themeantime, grassroots activities and in-store tastesessions with promotional offers are beingconducted, as well as introducing the drinksthrough spa and wellness centres.

Elderflower Tizane was unveiled in September2009 at the Natural Products Expo Easttradeshow in Boston and distributioncommenced in October.The drink, which retailsfor US$2.99 per 12oz glass bottle, is available inthe New England states, New York andmetropolitan Washington DC areas.

www.tizane.com

Drink yourself ego-boostingly slimSlovenian dairy companyLjubljanske Mlekarne hasextended its probiotic yogurtrange Ego to include a newdrinking yogurt, Ego Slim & Vital.

The drink contains a combination of the aminoacid L-carnitine and coenzyme Q10, which actsas a cellular antioxidant, to help regulate bodyweight and promote strength and vitality. Its keybenefits are said to include greater fat burningthrough efficient lipolysis (the breakdown of fatinto energy), faster regeneration after workouts,and the provision of important nutrients to theheart, brain and immune cells.

Ego Slim & Vital, which provides 102-180kcal and7.5-8.5g per bottle protein depending on thevariant, has a broad appeal and is targetedtowards those looking to control their weight,

athletes and activeconsumers, as well asvegetarians, olderindividuals, pregnantwomen andbreastfeedingmothers who wishto ensure theirsufficient intake ofL-carnitine.

Packaged in 250mlbottles and availablefor purchase inSlovenian retailstores, the dairydrink is available infour flavours -natural,strawberry,peach andtropical.

www.l-m.si

herbal beverages United States

functional dairy Slovenia

Hearty opportunityin Latin AmericaCooperativa Colanta,Colombia's largest dairycooperative, has launched the firstdairy product in the country to useRaisio's Benecol cholesterol-lowering ingredient.

CEO of Raisio Matti Rihko commented on thelaunch, "The launch in Colombia represents asignificant expansion of Benecol products inSouth America and is an indication of Raisio'sability to expand into new markets with majorlocal partners.We are very pleased havingColanta as our new partner.We view SouthAmerica as an interesting opportunity forBenecol products."

The new range, called Colanta Funciona, currentlyonly comprises yogurt drinks in strawberry, red

berry and peach flavours. However, milk products,fresh cheese, cream cheese and milk willapparently be added in the future.

To achieve the purported cholesterol-loweringbenefits of Benecol, Colanta suggests consumingtwo 100g shots per day, the equivalent of twoservings of yogurt, for at least two weeks. Forlonger term results, the company emphasises thatregular, daily consumption for at least a year iskey.

In order to support its latest launch, the dairygroup has developed a dedicated website whereconsumers can find more information on itschosen cholesterol-lowering ingredient as well asget tips on how to lead a healthy lifestyle.Theycan also learn where the in-store taste sessions,with take-home samples, are being carried out.

Colanta Funciona yogurts, for sale through majorretailers in Colombia since the end of October2009, are available in 100g shots, 1litre bottlesand mixed variant six-packs.

www.colantafunciona.com




Energy with a twistNew York-based SpecialtyBeverage and Supplement has

launched a unique springwater-based energy

drink, named JoJo.

JoJo's energy-giving functionalingredients are stored in liquid

form in the product's cap,and with acounterclockwise twist,are released into the100% spring watercontained in the bottle.The company claims thatthis allows for theingredients to retainoptimum efficacy right upuntil the point ofconsumption.

Each cap contains a'smart drink energyformulation' of B vitamins,amino acids (L-Phenylalanine, 5-HTP),antioxidant-rich

pomegranate, açaí and green tea extract andmemory-enhancing citicoline. JoJo Energy utilisesingredient company Kyowa Hakko's Cognizinbrand of citicoline, a natural nutrient found inevery cell of the body. Studies have shown thatCognizin supports brain health in several ways,including increasing brain energy, providingessential structural components for synthesisingbrain cell membranes and supporting theformation of brain nutrients that regulatecognitive function.

The non-carbonated drinks contain nocarbohydrates, sugar or calories and are availablein six flavours: Super Berry, Black Cherry, OrangeSickle, Citrus Guava, Passion Fruit Mango andMojito.

Chief Operating Officer Scott Ferrari launchedthe Specialty Beverage and Supplement businesswith Peter Scalise, a veteran of the nutritionsupplement industry, with the pair having spent areported US$3 million to bring JoJo to market.The resulting drink is positioned as 'GoodEnergy' and as a cross between Red Bull and avitamin-enhanced water.To promote the brand, asampling campaign is underway across New York.

Available in grocery stores across New York andvia the company's online store, each 500ml bottleretails at US$2.99.

www.jojoenergy.com

functional dairy Colombia

energy drinks United States


Beauty benefits twoby two, hurrah!Noah's Naturals, producer ofnatural and organic beautyproducts, has made its entry intothe functional drinks arena with

news of itsimpendingpowdered beautydrink.

Called Anti-Aging BeautyBeverage, the offeringhas been designed tohelp consumers achievenourished and hydratedskin.As its mainfunctional ingredient, thepowder containsCollactive, developed by

Israeli ingredients specialist Frutarom.This isan all-natural, anti-wrinkle ingredient composedof marine collagen and elastin peptides in thesame ratio as found in the skin.When takenorally, collagen and elastin have shownsynergistic anti-wrinkle action, stimulating theskin to lift and tone sagging areas and tominimise lines and wrinkles whilst alsoincreasing moisture retention.

The beauty powder also contains theantioxidant rich fruits açai and goji, in additionto phytonutrients derived from pomegranateand blueberry.To help improve skin's tone andtexture, lutein and lycopene have been added,with the product, free from added sugar,providing only 30 calories and 100%, 300% and200% of the recommended daily allowance(RDA) of vitamins A, C, and E respectively.

Noah's Naturals Anti-Aging Beauty Beverage willbe available from January 2010 at select food,drug and mass retailers across the US.A 14 daysupply pack will retail for US$19.99, with a 30day supply available for US$29.99.

www.noahsnaturals.com



Bridging proteinconcept andproductWith sports drinks and sportsnutrition products growing anddiversifying globally, Bridge2Food'srecent Sports and PerformanceNutrition conference in Frankfurtwas more pertinent than ever.

The event summarised key category topics, withZenith International and Innova Market Insightseach offering their take on trends within theEuropean sports and performance nutritionsegments, set in context against global trends,with the remainder of the conference entirelyEurope focused.

For Zenith International, Gary Roethenbaugh'spresentation centred around sports drinksperformance at a global level as well as in keyregions including Europe, the US and Japan.Tounderstand the sheer size of the sports drinksindustry, Gary compared this against that ofenergy drinks, which has also seen meteoric

growth, better definedsegmentation and increasedconsumption occasions.Gary also drew attention tothe fact that the boundariesbetween sports and energydrinks are blurring.

Another interestingnotion made by Garywas that of a 'whitespace opportunity'.This refers to the factthat to date,performance sportsdrinks such as EAS andMuscle Milk have aloyal following andstrong credibility,albeit with nichevolumes. In contrast,mainstream brandslike Lucozade,Gatorade and evenvitaminwater and RedBull have mass appealyet tend not to havethe nutrition claimsand credibility.The

(continued on Page 6)

cosmeceuticals United States

sports drinks/supplements World

(continued from Page 5)

white space opportunity is in the middle, takingperformance drinks tothe mainstream.

Innova Market InsightsHead of Research, LuAnn Williams, highlightedcategory developmentsin both the US andEurope, with examples ofsports nutrition productsthat are becomingincreasingly mainstream.This is thanks to betterdistribution throughsupermarkets andconvenience stores,better segmentation andtargeting, and cheaperalternatives, particularlyprivate label sportsdrinks in the US.

Another event highlight was an address by KeyAccount Manager at Axellus Oy Mika Somppi,a Finnish healthcare products specialist. In hispresentation, Somppi offered a very detailedpicture of the Finnish sports nutrition market.Somppi also explained the recent progressionfrom sports powders towards RTD sportsdrinks, which has been helped by increasedconsumer awareness in the past four years. Healso commented on the Finnish market beingvery particular in that the very defined seasonsaffect purchasing behaviour, resulting in differentproducts for different occasions.

Other presentations offered more technicalinformation, such as those presented byingredients companies Volac, Solae, DSMFood Specialties and BENEO-PalatinitGmbH, each covering a different aspect on theimportance of protein consumption.

Overall, the conference was well run and wellattended, with high calibre delegates andpresentations, and an ideal networkingopportunity.

Supplier insightAt the recent FunctionalIngredients and NaturalIngredients exhibition in Frankfurt,functionaldrinks' Cecilia Martinezcaught up with WILD IngredientsProduct Manager Hélène Moeller.

Responsible for the marketing of singleingredients such as flavours, colours andextracts, Moeller gave us an insight into theleading ingredient company's latest

developments.

functionaldrinks (FD):What have been your most recentdevelopments for the beverage industry?

Hélène Moeller (HM): One recent development

in food ingredients for beverages is certainly ournew stevia extract. In February of this year,WILD Flavors Inc, an allied company of WILDin Heidelberg, Germany, established apartnership with Sunwin InternationalNeutraceuticals, a worldwide supplier of all-natural, zero-calorie stevia.Thanks to thiscooperation,WILD customers all over the worldbenefit from a guaranteed supply of rawmaterials and years of competence in theproduction of stevia extracts of the highestquality. In line with this, we have alreadydeveloped stevia-based food and beverageconcepts, which will allow the industry to launchproducts immediately upon EU approval.

FD: How do you think the health claimsregulation has affected food and drinkcompanies?

HM:The health claims regulation has certainlyhad an impact on the food and beverageindustry. It has made companies more hesitantwhen it comes to the marketing of functionalproducts with a specific health benefit. In view ofthe EFSA opinions released so far,WILDanticipates that only those products backed byclinical human studies will be allowed to anycarry health claims.WILD is already able to offerthe industry various scientifically-provenfunctional food and beverage concepts.

(continued on Page 7)




ingredients Germany/ World

sports drinks/ supplements World




(continued from Page 6)

FD: Have you seen any trends interms of health benefits?

HM:There's a clear trend towardsthe fusion between naturalness andfunctionality, which WILD expects tolast. Prime examples are functionalingredients such as antioxidants thatare very popular at the moment;their natural health benefit is easy toexplain to the consumer. Inparticular, red fruits - such assuperfruits likecranberries orpomegranate -and tea extractsnaturally contain highlevels of antioxidants.WILD's standardisedantioxidant blend basedon polyphenols from green and white tea, grapeseeds and green rooibos enables beverageproducers to enrich even products in the lightercolour spectrum with antioxidants.

Furthermore, our Fruit Up, a 100% fruit extractas a purely natural sweetening option, has beenused by key clients for a number of years.Thanksto its balanced sugar spectrum, Fruit Up has alow glycaemic index and can be applied to nearlyevery food and beverage application.Anotherbenefit of Fruit Up is that it can be labelled as a"fruit extract" in ingredient lists.

FD: How does Fruit Up fit with yourdevelopment of stevia-sweetened productconcepts?

HM: Stevia and Fruit Up can be perfectlycombined to create low GI and low calorieproducts.They both also meet consumer

demands for naturalingredients,

and makea proven

impression on products' taste, asdemonstrated by sensory tests.

FD: Coming back to trends, whichareas within the functional drinksindustry would you say areshowing the most growth?

HM: Energy is still the biggest growingfunctional segment.WILD is expecting afurther segmentation of the energydrinks market with targeted offerings.

The appearance of energy shotsand natural energydrinks are indicatorsof this.

However, trends still tend tocome from Asia or the US, as in

the case of energy drinks thatcontain juice.WILD is knownfor identifying promising

trends at an early stage and transferring them toother regions. Recent examples are relaxationand concentration drinks, which are becomingmore and more popular in the US. Specifically forthe European market,WILD has developed a"Mental Energy Drink" concept. Its mainfunctional ingredient is a standardised lemonbalm extract combined with Fruit Up.Thegenerous dose of the extract has a stimulatingeffect, with "Mental Energy Drink" increasingalertness and boosting performance andcognitive abilities, particularly in stressfulsituations, as confirmed by The Brain ScienceInstitute of the Swinburne University ofTechnology in Melbourne,Australia.

WILD expects concentration as well asrelaxation drinks to pick up in Europe given thatstress is one of the top consumer concerns.Webelieve that relaxation drinks in particular are apotential counterpart to energy drinks; both canexist synergistically, as has already happened inthe tea drinks segment where there arecaffeinated teas for energy as well as those forrelaxation.

There has definitely been a big shift within thefood and drinks industry towards the use ofmore natural ingredients.WILD is anticipatingthat the looming EC flavour regulation, cominginto effect on 20 January 2011, will encouragemanufacturers to adjust their productformulations accordingly and focus more onnatural flavour alternatives.WILD's philosophy,since the company's foundation in 1931, hasalways been to offer natural ingredients to thefood and beverage industry.

www.wild.de

ingredients Germany/ World


EuropeThe European Food Safety Authority (EFSA) hasapproved cholesterol-lowering claims made byproducts containing plant stanol esters, the activeingredients used in products such as Raisio'sBenecol.This is reportedly the first diseasereduction claim authorised by EFSA.

Germany: German ingredients specialist Wild isseeking additional information from EFSA as tohow it should proceed in terms of further studiesfollowing a rejection of the immune-boostingclaims of its Immune Balance Drink concept.

UK: Voltz Distribution UK has beenpromoting its eponymous energy shot in thetrade press and highlighting its attributes,including its broader customer appeal comparedto other energy drink brands and high profitmargins for retailers.

North AmericaCanada: Performaxx Brands, a subsidiary ofNew York-based Full Motion Beverage, hassigned an agreement with Altra Food Distributorsfor the sale of its Kosher certified 2oz zero-calorie energy shot, Energize, throughout Canada.

US: PepsiCo has revealed that it will expand itsAmp-branded energy drink portfolio with a newenergy shot, new variants to the sugar-free line, newsuggested 'value' price points for multi-packs andthe possibility of a new juice range packaged in PET.

Ingredients supplier BI Nutraceuticals hasadded new herbal extracts to its portfolio.Theextracts can be used in dietary supplements,functional foods and beverages.The newingredients are: elderberry to boost antioxidantproperties; antioxidant rosemary; the superfruitmangosteen; and yerba maté.

Bebida Beverage Company has partnered withdistributor Austin Beverages to make its relaxation

Koma Unwind drink available across Texas.

Bond Laboratories, producer of variousfunctional food and drink products, has addedtwo distributors to the distribution network forits Fusion Premium Energy range.The drinks willnow be available in over 1,000 on- and off-premise accounts throughout the south centralKansas region.

In an interview, Carl Sperber, spokesman for LivingEssentials, explained the importance of being firstto market in reference to its energy shot, 5 Hour.Sperber commented, "We had a lot of time toestablish ourselves as a product, establish how wewere different as an energy solution for people, andto carve out a niche in what, at the time, was anunderserved area in the energy drink category."

WorldAccording to research, sales of functional foods inWestern Europe grew 10.2% a year between2004 and 2007, compared to those of packagedfood which rose by 6.3% during the same period.Meanwhile in the US, sales of foods with 'guthealth' claims grew by an average 15.8% a yearbetween 2002 and 2007, compared to only 2.9%growth of overall food sales.

Further research has found that between 2004and 2007, sales of Nestlé's functional foods roseby an impressive 23.7% annually and by 20% in2008, compared to growth of 6.2% a year for itsregular food products.

The count of product launches containingcranberry reportedly reached 562 in 2009, 38more than in 2008, and nearly twice the 310debuts of 2005. Furthermore, cranberry nectar,outside its 'home market' of the US, is mostpopular in the UK and Ireland, with off-tradevolume sales accounting for over 50%. In Israel,where cranberry nectar was largely unknownuntil 2005, off-trade sales shot to an almost 6%share of total nectar volume in 2008.

Editor: Jenny FouldsDeputy Editor: Cecilia Martinez-NunezContributors: Charmaine Holmes, Laura KnightMarket Intelligence Director: Gary Roethenbaughfunctionaldrinks 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

registered for VAT

7 Kingsmead SquareBath BA1 2ABUnited Kingdomt +44 (0)1225 327900f +44 (0)1225 327901e functionaldrinks@zenithinternational.comwww.functionaldrinksnews.com

No part of this periodical may be reproduced in any form,copied or stored electronically without prior permission inwriting from the publisher. Every effort is made to verify allinformation published, but Zenith International cannot acceptresponsibility for any errors or omissions or for any lossesthat may arise as a result.

functionaldrinkszenith international newsletter



functionaldrinks in brief

Documents

091209_FD_Issue 174