110223_FD_Issue 204

Say 'aloe' to healthyhydration!functionaldrinks spoke to JasRayatt from UK-based AloeVit tofind out how sales of its aloe-baseddrink have performed since itslaunch back in November 2010.

AloeVit is made using pure aloe vera, which isrenowned for being naturally rich invitamins, minerals and amino acids.A 500mlbottle of AloeVit contributes towards therecommended daily allowance (RDA) ofvitamins B5, B6, B9 and B12 as well as70% RDA of zinc.

Moreover,AloeVit is especially richin essential amino acids n-acetyl-l-tyrosine, l-phenylalanine and l-arginine.The drink contains 30ml ofpure aloe vera juice offering a hostof benefits including aiding the bodyto naturally detoxify itself, supportingdigestion and the immune system,reducing inflammation, regulatingenergy levels and supporting healthyskin. Furthermore,AloeVit is suitablefor vegetarians whose diets may lackamino acids.

The drink is currently available infour variants: Orange & Mango,Peach, Lemon & Lime andBlackCherry.

Rayatt told functionaldrinks thatAloeVit is particularly targeted atwomen who are looking for ahealthy, low calorie drink - AloeVitcontains less than 50 calories perbottle - with added health benefits.The beverage is positioned as a naturalalternative that helps hydrate consumers.

To reinforce the drink's positioning, Rayatt enlistedthe help of design consultant David Roberts whodesigned the label which is produced by shrinksleeve specialist Chadwicks. Roberts' design seeksto underline aloe vera's origins in Africa's warm, dryclimate. In addition, Roberts included an image ofthe whole plant to emphasise the drink's name andto give the impression that the aloe vera wassettled at the base of the bottle.

We asked Rayatt about the consumer responseand he told us, "We officially launched theproduct in November 2010, the coldest winter

for thirty-odd years! We have had a greatresponse from consumers who love thetaste and from our distributor in theNorth of England."

As for the future, Rayatt confided thatthe company is planning to "create a

50ml shot as an alternative to energyshots and a 300ml version indifferent flavours to the existing fourvariants, both planned for 2012."

AloeVit is distributed in particularin Yorkshire, but the company islooking for distributors to expandits presence in the south of thecountry.The drink is sold throughhealth shops and similar outlets.Thecompany is also in negotiations withretailers such as Asda and Tesco andvending company Autobar about apossible listing.

Finally, Rayatt hinted that thecompany is planning to launchAloeVit in Kuwait in March and inCanada at the end of the year.

In the meantime,AloeVit will benefitfrom an introductory offer price ofjust £0.99 instead of £1.29 tocompete against the leading vitamin

water in the UK as well as beingpresent at exhibitions in the summer.

www.aloevit.com

enhanced new age nutraceutical energy sports juice dairy

functionaldrinkszenith international newsletter Issue 204 23 February 2011

Page threeConsumer needsmet by milk

Page sixFunctionality ofshots expands

Page fiveJapanese teenagersget liquid aid

Page fourRace for the top spot intensifies

This issue at a glance... wellness beverages United Kingdom

Drinks giantfuses BraziliantastesCompanhia deBebidas dasAmericas (AmBev)recently unveiled itsfirst energy drink at the11th edition of TVreality show BigBrother Brazil.

The energy drink has beennamed Fusion Energy Drink and,before being made public, wasoffered to the Big Brothercontestants to sample.

AmBev describes Fusion Energy

Drink as unique in the market as it derives itsenergising properties from the use of guarana, a

fruit which is very popular inthe country.The energy drinkscategory in Brazil is highlycompetitive and it is estimatedthat energy drink sales havebeen growing at around 50%annually.

As well as spending a reportedReais 16.9 million to promoteFusion Energy Drink throughBig Brother Brazil,AmBev willbe using social networking sitessuch as Twitter and Facebook topromote the drink.

Fusion Energy Drink has beenavailable for sale since thebeginning of February acrossBrazil through all retail outletswhere other AmBev beveragescan be found.

www.ambev.br

editorial commentWelcome to the 204th issue offunctionaldrinks.Throughout2010, sports drink giant Gatoradesaw its image transformed and itsportfolio rearranged, particularly inthe US, to reinvigorate falling sales.Gatorade's plans for expansioncontinue apace,reinforced with thebrand's recent re-launch in France(see Page 4).

Other US-based companieswith expansion ambitionsinclude Tahitian NoniInternational which haslaunched a range ofproducts to helpconsumers lose weight andget fit (see Page 4) andJamba Juice Companywhich has unveiled a line ofyogurt drinks with addedprobiotics in a bid to grow its portfolio of healthyofferings (see Page 3).

Still in the US, we report on the recent re-branding by The Limu Company of its energydrink enriched with brown seaweed (see Page 7).We also look at two new enriched fluid milks byFarmland Dairies, which are reportedly a firstin the country (see Page 3).

In the UK, we spoke to the Managing Directorof All Day Energy on the launch of two newfunctional shots (see Page 6).We also featureAloeVit's entry to the market with an aloe veradrink promoting the plant's health benefits andtaste (see Page 1).

In Malaysia, we look at thelaunch of Arctic Ice energydrink, a US-based energydrink which has been forginga path into new marketsover recent months (seePage 5). In Japan we reviewtwo new drinks targeted atteenagers and young adults(see Page 5), whilst in Brazilwe look at AmBev's entryto the energy drink marketwith its own energy drink(see below).

Cecilia Martínez NúñezDeputy Editor

[email protected]

Page 2 Issue 20423 February 2011

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energy drinks Brazil

Digestive healthboosting drinkJamba Juice Company hasintroduced a range of yogurt drinksmade with Jamba's speciallyformulated Probiotic Boost. JambaProbiotic Fruit and Yogurt Blendscontain over 500 million activecultures per serving and can help

support digestive health andimmune system

functioning.

Available in three flavours,Vibrant Blueberry, StrawberriesAlive and Thrivin' Mango, the

blends are made with whole fruits and aresaid to be an excellent source of vitamin C.

They are free from high fructose corn syrup,

artificial flavours, artificial preservatives and transfats.

"We understand that there is a growing demandfor on-the-go products that satisfy the needs ofthe health conscious consumer," said SusanShields, Chief Marketing Officer, Jamba JuiceCompany. "More and more consumers are seekingfunctional beverages and foods to help solve avariety of dietary needs and we wanted to offer anew product that is innovative, nutritious,delicious and serves a special purpose.Whetheryou are seeking to eat healthier as a part of yourNew Year's resolution or just want a product thathelps support immune system functioning and aidsin digestion of food and nutrients, Jamba'sProbiotic Fruit and Yogurt Blends is a perfect fit todeliver on those daily functional needs."

Jamba Juice also offers an assortment of standalone boosts that can be added to any JambaJuice smoothie, including Probiotic Boost, SoyProtein Boost, Energy Boost and AntioxidantBoost.

www.jambajuice.com




Enhanced milk rangegrowsFarmland Dairies has extendedits Special Request Skim Plus lineof fortified fluid milk products withSkim Plus Fiber, the first fibre-fortified fat free milk product inthe US, and Skim Plus Omega-3with CoQ10 (coenzyme Q10).

Both products are madewith cow's milk andcontain 37% moreprotein and 34% morecalcium than whole milkand are said to be anexcellent source ofphosphorus and vitaminsB2 and D.

Special Request SkimPlus Fiber contains 2.5gof prebiotic fibre fromchicory root per 8ozserving, which may help

restore regularity, relieve constipation, enhanceenergy and control weight.

Skim Plus Omega-3 with CoQ10 is enhancedwith highly refined fish oil, a source of omega-3fatty acids which can reduce symptoms ofhypertension, depression, attention deficithyperactivity disorder (ADHD), joint pain,rheumatoid problems and various skin ailments.One serving contains 55mg of docosahexaenoic(DHA) and eicosapentaenoic acid (EPA), as wellas 5mg of coenzyme Q10, which may helpmaintain healthy heart function, support energyproduction and provide nutritional support forcellular energy and cardiovascular health.

"Today, consumers are looking for products withan added health benefit.As these new productsoffer digestive and heart health benefitsrespectively, we are confident that our customerswill love the creamy, delicious taste and fortifiednutrition," said Martin Margherio, President ofFarmland Dairies.

Farmland Dairies' new products can be found insupermarkets and convenience storesthroughout New York, New Jersey andConnecticut, with a recommended retail price ofUS$3.99 per half gallon.

www.farmlanddairies.com

wellness beverages United States

functional dairy United States

Competition in thesports categoryintensifiesPepsiCo France has just re-introduced Gatorade to the Frenchmarket in a second attempt toobtain a significant share of theFrench market.Gatorade, which is the leading sports drink in anumber of markets, was discontinued in Franceafter it failed to convince consumers thattraditional sports drinks, such as Gatorade, donot contain harmful chemicals and widespreadconsumer perception that these drinks are tooexpensive.

Emmanuel Pinteaux, Marketing Director atPepsiCo France, explained that French

consumers have more commonly opted torehydrate themselves with plain water due toconcerns over price and ingredients.

Pinteaux said that for this reason the companyreformulated Gatorade to include only naturalingredients, namely water for rehydration andelectrolytes to replace those lost through sweat.Furthermore, the new offering has a lower pricepoint at €0.99 for a 500ml bottle.

The newly-formulated Gatorade is available inOrange, Red Orange and Citron variants and hasbeen in market testing since 2009 in Monoprixand Auchan supermarkets. Since the end of 2010,the range has been listed by Simply Market andfrom January 2011 by Carrefour.

To promote the brand, the company will makeuse of its brand ambassadors, athlete Usain Boltand footballer Lionel Messi, who will appear on atelevision programme to be broadcast onchannels France 2, France 3 and France 4.

www.gatorade.fr




Beverage fit forpurpose!Tahitian NoniInternational hasunveiled a new beverageand supplement plancalled the Fit BodyComposition System, tohelp consumers get fit,healthy and lose weight.

The Fit range of bioactive productsare engineered to cleanse and nourishthe body, build calorie-burning leanmuscle, and eliminate fat andcholesterol.When used inconjunction with proper exercise andnutrition, the system can help to helpdevelop an ideal body composition,the ratio of lean muscle to fat in thebody whereby the more lean muscle,the more fat is burnt.

The system consists of twosupplements (multivitamin Replenishand probiotic Restore), a snack barcalled Resist and two beverages, Reset and Rebuild.

The first step in the plan is Fit Reset, the system'sready to drink beverage. One bottle of thetropical fruit flavoured liquid should be drunk forsix consecutive days each month to help cleanseand detoxify the body, aiding better metabolism. Itcontains a natural fruit and botanical-based

formula including licorice rootextract, dandelion root, aloe vera andof course, noni fruit.

Fit Rebuild is a protein shakepowder designed to be mixed withmilk or water. It should replace onemeal and be drunk six days a week,ideally within 45 minutes of aworkout. It contains all 11 essentialamino acids together with 15g ofprotein per serving, from fivedifferent protein sources. Fit Rebuildhelps to build lean muscle and burnfat, control hunger, sustain energyand prevent muscle fatigue.

The Reset beverage is available in12oz bottles, with a pack of sixretailing for US$24.99.A completepack, containing a selection of all theproducts in the FIT range costsUS$180.They can be purchased fromthe Tahitian Noni website.

http://fit.tni.com

sports drinks France

wellness beverages United States




Japanese teenagersin the spot lightTargeting specific consumergroups is becomingincreasingly important andfunctionaldrinks takes abrief look at two of thelatest beverages to beintroduced in Japan,specifically designed withteenagers and youngadults in mind.

Japanese company Cheerio haslaunched a drink featuring theunlikely ingredient capsaicin. Underthe equally mysterious name FightClub, the company has launched azero calorie cola-flavoured energydrink. Fight Club contains sixvitamins and seven amino acids aswell as capsaicin, the substancefound in chillies which makes themhot.According to the company,capsaicin gives the drink a sharptaste that is appealing to youngconsumers who are wellacquainted with Cheerio's existingLifeguard energy drink brand.

Kirin Beverage has also recently unveiled anew drink specifically targeted at youngconsumers with the tongue-twisting name, Go-kaku Kigan no Chikara Mizu. Kirin's new drink ispositioned to appeal to students aged between

13 to 20 who are studying for demandingschool exams.

Go-kaku Kigan no Chikara Mizu has beenenriched with 2.2mg of DHA and 77mg

of vitamin C and provides only 48calories per 100ml of the drink.

The carbonated beverage features aDaruma doll on the front of thelabel, the doll is a symbol of goodluck and perseverance in Japan.This, along with the drink'scontent of DHA for brain healthand vitamin C for an antioxidantboost makes it a likely choice,especially in the winter periodwhen students sit their exams.

Go-kaku Kigan no Chikara Mizu issold in 500ml bottles that retail foraround Yen 140; whilst Fight Clubis available in 500ml PET bottlesand retails for approximately Yen86.

www.cheerio.co.jpwww.beverage.co.jp

Ice-cold energydrink revitalisesMalaysiaUS-based Arctico Beverage

CompanyInternational hasrecently unveiled itsrange of Arctic Iceenergy drinks on theMalaysian market.

At the end of 2010, localmanufacturer Bio Osmo, throughits wholly-owned subsidiaryAmshore Holdings, started

manufacturing and distributing Arctic Ice tomajor hypermarkets and convenience stores inMalaysia.

The agreement is also looking at the futurelaunch of Arctic Ice in China and other Asianmarkets in the near future.

The Arctic Ice line-up consists of six variants:Original, Sugar Free, Razzberry, Punch, Lemonadeand Citrus; however only two variants will beinitially produced in Malaysia.

Arctic Ice is already sold in several countriesaround the globe including Australia, Germany,Mexico, New Zealand, Panama, Netherlands andSingapore.The energy drink brand is also theofficial partner of UK football club, ManchesterUnited FC.

www.arcticiceglobal.com

enriched beverages/energy drinks Japan

energy drinks Malaysia

Shot producerunveils multipurposepotions All Day Energy, producer ofiShot (see Issue 182), has addedtwo new functional shots as part ofits new Potions 4 Life range.

The two new potions to join Potions 4 Life areiShot Skinny (Slim Potion) and iShot All Night(Love Potion).The first shot, as its namesuggests, "Hits all angles of slimming." Itcombines a potent mix of botanicalstimulants such as açai berry, green teaextract, chromium, bitter orange peel,l-carnitine, B vitamins, guarana fornatural caffeine and amino acids.

Sugar-free iShot Skinny is Açai Berryflavoured and targeted at thosewishing to shed a few pounds.Thecompany recommends consumingone bottle of Slim Potion in themorning to obtain the full benefit.

Meanwhile, iShot All Night is for menand women who want to heightentheir libidos whilst still "FlirtingResponsibly." The shot featuresherbal extracts such as damiana,Korean ginseng, guarana and greentea as well as energy-releasing B

vitamins, amino acids andantioxidants. iShot All Night has thesame flavour as the company'sflagship All Day original range and provides just14 calories per bottle.

In addition, the original iShot Energy range whichwas launched back in 2010 range has also beenrevamped.The range comprises the original iShotAll Day and iShot Decaff, of which the latter isnow packaged in a matt white bottle and label.functionaldrinks spoke to Kursat Uysal,Managing Director at All Day Energy, whoexplained to us that the change was to avoidconfusion among consumers who were notaware iShot Decaff is caffeine-free and thought itwas a different flavour to the regular shot.

Uysal told functionaldrinks that it was thecompany's intention from the beginning tolaunch the Slim and Love Potions, but this wasonly possible now due to the development andtrial work that took about twelve months.

Moreover, the expansion of the portfolio meansthat the company can better serve its wideningaudience, which according to Uysal, consists of,"busy professionals, mothers, fitness enthusiasts,celebrities, builders, artists, students, nurses,gamers, drivers and many more..."

Uysal also gave more details of thecomprehensive PR and marketing strategies thatwill be promoting the range.Activity will kick offat the National Convenience Show inBirmingham at the end of February, where iShotSkinny and iShot All Night will be exhibited forthe first time.

Other events scheduled in 2011 are theLondon Golf Show, the BBC SummerGood Food Show and The All WomanShow.

On the PR side,Adessi PR and The Goagencies will be in charge of digitaland print press releases and

advertising in food and beverage,health, fitness, sports, lifestyle, homeand DIY, motoring, and fashionmagazines.

Uysal added that there will beproduct giveaways at GlastonburyMusic Festival, Isle of Man TT,Classic Car Show and British Skiand Board show among others.

Finally, according to Uysal, the iShotline-up will be promoted throughonline networking sites, blogs, e-newsletters and competitions in

which fans of the products will beable to win among others a

weekend for two, cash prizes and even a freeyear's supply of iShot and merchandise.

iShot Skinny carries a recommended retail price(RRP) of £1.69 whilst iShot All Night is priced at£1.99 a bottle. Both shots have already enjoyed a'soft launch', with iShot Skinny selling out in justthree days.

Uysal also indicated to us that the company isworking on two new ranges which will befocusing on fitness enthusiasts and healthy living.

From February, the entire range has beenavailable through a wide range of stores acrossthe UK as well as online through the company'swebsite.

www.ishot.co.uk




nutraceuticals/energy drinks United Kingdom

Asian seaweedtargets internationalmarketsThe Limu Company, producerof beverages made with aningredient derived from brownseaweed, has recently revamped itsenergy drink.

Limu Energy, also known as Blu Frog, is anenergy drink using the company's proprietaryfucoidan ingredient.The product has been givena new image which is sleeker and moreminimalist and should help the company with itsaggressive expansion plans which includegrowing sales in Asian markets such as Japan andTaiwan.

Fucoidan can be foundin seaweeds such aslimu moui or kombu,and has been creditedwith reducingincidences of cancerand helping increaselongevity. Itsconsumption is notnew, as coastalcommunities,particularly in Japan, are

well-known for incorporating brown seaweedinto their diets.

Blu Frog also provides 100% of the daily value(DV) of vitamins B1, B2, B3, B5, 300% DV ofvitamins B6 and B12, and 100% DV of biotin andfolate.The drink also contains taurine, quercetin,choline chloride, inositol and natural caffeinefrom guarana seed extract.

According to Gary Raser, President and CEO,the company intends to expand its energyportfolio. He clarified, "Blu Frog has allowed usto lead healthy energy initiatives with all naturalingredients alongside potent fucoidan.With thesuccess of Blu Frog, we look to introduceadditional energy products that promoteenhanced performance, increased endurance andfocused concentration."

In addition to Blu Frog,The Limu Company alsoproduces Limu Original, a nutritional supplementblending fucoidan with vitamins and minerals tohelp boost immunity, and Limu Lean, a three-strong range of meal replacement shakes, andappetite suppressant and digestive health cleansesupplements.

The company will continue to promote theentire range of products through its brandambassador, Olympic Champion Rowdy Gaines,who also swims competitively with Team BluFrog.

www.thelimucompany.com




Zenith's annual UK Soft Drinks IndustryConference is set to take place on 12-13 April

2011 in Leeds.With the themeShaping the Future, the two dayevent will address the key issuesand opportunities facing theindustry.

Sessions include an industryleadership panel with Coca-Cola,Gerber and GlaxoSmithKlineand a focus on the environmentwith Walmart/ASDA and IGD.There will be analysis of the latestmarket developments from ZenithInternational, a keynote addressfrom Coca-Cola Enterprises,discussion on the health agendawith the Department ofHealth, Food and DrinkFederation, Tata and Beneo-

Palatinit, together with an innovator panel withBottlegreen, Halewood, Maxinutrition and1HQ, and workshops from FoodBev Mediaand Zenith.

The event is sponsored by leading industrysuppliers BENEO-Palatinit and Bericap.

For full details and to book online, visitwww.zenithinternational.com/events or contactFiona Herrington [email protected] or +44 (0)1225 327903. Discounted rates are available onall bookings received by 11 March.

EuropeSpain: Coca-Cola España-owned Burn hasrevealed it is looking for consumers who practiceextreme sports such as skating, wake or snowboarding to star in a documentary entitled, "Burnyour mind The Movie".When completed, the

functionaldrinks in brief

energy drinks United States

documentary will be shown in cinemas in Spain.

UK: The Advertising Standards Authority (ASA)has blocked an ad released by Coca-ColaGreat Britain for Glacéau vitaminwater formaking misleading health claims.The ASA upheldcomplaints on the grounds that the claim thatthe drink was "nutritious" was misleading.

Yakult has appointed Euro RSCG London tocreate a series of new TV ads to promote itsprobiotic drink.The ads are a further evolution ofthe 2009/2010 successful TV ad campaign entitled"Listen to your gut".

North AmericaCanada: Leading Brands has reported netincome more than doubled to C$253,000 for thethird quarter 2010 compared to the same periodof 2009.

US: Bebida Beverage Company has addedconvenience store chain Fast Lane Stores to itslist of retailers carrying its relaxation drink KomaUnwind in Kentucky. Fast Lane operates 37stores across the state.

Security Beverages Company has signed adistribution agreement with master distributorP&T Distribution for the state of Georgia.Through the agreement, Security Feel Better willbe sold through restaurants, nightclubs, liquorstores and convenience stores.

DynaPep has signed an agreement with StarDistributing that will see DynaPep Energy soldacross 1,100 outlets in Wisconsin and Missouri.

The American Hockey League (AHL) hasannounced that reGen has been designated theofficial muscle recovery drink beverage of theAHL. reGen is produced by Apure FoodsCompany, a wholly-owned subsidiary of TheHershey Company.

PepsiCo's SoBe Lifewater has unveiled a new

sub-range with added electrolytes.The drinks areavailable in Strawberry-Kiwi-Lemonade andMacintosh Apple-Cherry and are sweetened withstevia brand PureVia.

Cellutions has said that its Modjo for LIFE drinkwill be sold at 3,000 Circle K stores in the US.

National convenience store chain Quick Trip hasannounced it will add ZUN Lite, produced byZUN, to its portfolio of beverages.The drink,which is sweetened with agave nectar, will beplaced at over 550 locations.

According to SymphonyIRI Group, the energyshot market grew to US$926.6 million in retailsales in 2010, this accounts for sales throughsupermarkets, drugstores, convenience stores andmass market retailers excluding Wal-Mart.Furthermore, retail sales of energy shots areestimated to have grown 37% from 2009.

Bazi International has appointed DebbieWildrick as Sales and Marketing Chief Officer.Wildrick had previously acted as head of thebeverage category for convenience giant 7-Eleven, which has just approved Bazi's inclusion inits beverage portfolio.

In other company news, Bazi International hasengaged TNT Marketing/CROSSMARK to assistwith the expansion of Bazi in the conveniencestore channel across the country.The latter hasstrong partnerships with over 60 conveniencestore chains representing over 65,000 outlets.

WorldIndia: Yakult Danone India's manufacturingplant has recently been awarded HACCPaccreditation from SGS International formaintaining food safety standards. ManagingDirector of the joint venture, Kiyoshi Oike,commented, "We are happy to receive theHACCP certificate for maintaining food safetystandards in our Indian factory."


Editor: Anya HembroughDeputy Editor: Cecilia Martínez NúñezContributors: Charmaine Holmes, Laura Knight,Yumiko WilkeyCommercial Consultant: Matt Wilton

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110223_FD_Issue 204