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N EW N UTRITION BUSINESS www.newnutrition.com MAY 2011 ISSN 1464-3308 VOLUME 16 NUMBER 7 THE JOURNAL FOR HEALTHY EATING, FUNCTIONAL FOODS & NUTRACEUTICALS Pages 11-13 Pages 19-21 Pages 22-23 April was a busy month for the health claims unit at the European Food Safety Authoritys (EFSA) Parma, Italy base, as the agency draws close to completing its controversial and epic health claims assessment task. As the end comes in sight, however, accusations of inconsistency and lack of transparency are growing not to mention a growing industry consensus that fundamental reform is needed. EFSAs Panel on Dietetic Products, Nutrition and Allergies (NDA) published its fourth batch of article 13 general function claims 442 claims in total that saw the agency maintain its now well-established 80%-plus rejection rate. Prominent was the ongoing rejection of probiotic claims and most other non-essential nutrient claims (L-arginine, green tea and taurine among them). On the positive side was the first-ever positive opinion for antioxidants (hitherto EFSA has rejected all antioxidant claims) as well as positive assessment of nutrient replacement claims fat, sugar and starch all won positive opinions. Water, caffeine, nuts and charcoal also performed well. It means out of about 3,000 claims it has had on its books (not including the 1,549 botanical claims that have been withdrawn for now), the NDA now has just 600 Article 13 general function claims left to assess, which a spokesperson said would be published in two batches one in June, and one at some point after September this year. The whole 3,000-strong batch is set to enter European Union law books by the beginning of 2012 and six months after that local authorities can send their inspectors out into the supermarket to pull non-compliant products from shelves. Its a reality that few small and medium-sized companies are ready for. Patrick Coppens, the secretary general of the European Responsible Nutrition Alliance (ERNA), said of the newest batch: The trend is of course obvious: for non-essential substances, very little chances of success because of the lack of pharmaceutical-style intervention data and/or unavailability of accepted biomarkers for physiological functions. PHARMACEUTICAL-STYLE DATA ESSENTIAL FOR SUCCESS The high rejection rate was no surprise given the NDAs track record over the previous three batches, but the list did contain some surprises and not all of them were negative. The positive opinions for sugar, fat and starch replacement have been welcomed by the relevant industries, who are licking their lips at the fresh (or confirmed and bolstered) marketing tools at their disposal, even before the claims make the EU register of claims. The industry was very relieved to see these opinions as EFSA had previously indicated it may not rule on them despite claims of this type being written into the 2006 nutrition and health regulation (NHCR). Claims expert Nigel Baldwin from Cantox International said the positive opinions may provoke a revisitation of previous opinions. Comparative claims like the glycaemic Olive oil wins, probiotics lose as EFSA nears the end of the long and grinding health claims road Olive oil has become the first and so far only product on the European market allowed to make an antioxidant health claim. The European regulator has approved this wording: Consumption of olive oil polyphenols contributes to the protection of blood lipids from oxidative damage. Continued on page 3 Cocoa antioxidants plus Coca-Cola future for Honest Tea Powershot puts faith in Little Miracles Fruit, vegetables and natural energy focus for new Nestlé and Jamba Juice launches

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N E W N U T R I T I O N

B U S I N E S Swww.new�–nutrition.com MAY 2011 ISSN 1464-3308VOLUME 16 NUMBER 7

T H E J O U R N A L F O R H E A L T H Y E A T I N G , F U N C T I O N A L F O O D S & N U T R A C E U T I C A L S

Pages 11-13Pages 19-21 Pages 22-23

April was a busy month for the health claims unit at the European Food Safety Authority�’s (EFSA) Parma, Italy base, as the agency draws close to completing its controversial and epic health claims assessment task. As the end comes in sight, however, accusations of inconsistency and lack of transparency are growing �– not to mention a growing industry consensus that fundamental reform is needed.

EFSA�’s Panel on Dietetic Products, Nutrition and Allergies (NDA) published its fourth batch of article 13 general function claims �– 442 claims in total �– that saw the agency maintain its now well-established 80%-plus rejection rate. Prominent was the ongoing rejection of probiotic claims and most other non-essential nutrient claims (L-arginine, green tea and taurine among them).

On the positive side was the first-ever positive opinion for antioxidants (hitherto EFSA has rejected all antioxidant claims) as well as positive assessment of nutrient replacement claims �– fat, sugar and starch all won positive opinions. Water, caffeine, nuts and charcoal also performed well.

It means out of about 3,000 claims it has had on its books (not including the 1,549 botanical claims that have been withdrawn for now), the NDA now has just 600 Article 13 general function claims left to assess, which a spokesperson said would be published in two batches �– one in June, and

one at some point after September this year. The whole 3,000-strong batch is set

to enter European Union law books by the beginning of 2012 �– and six months after that local authorities can send their inspectors out into the supermarket to pull non-compliant products from shelves. It�’s a

reality that few small and medium-sized companies are ready for.

Patrick Coppens, the secretary general of the European Responsible Nutrition Alliance (ERNA), said of the newest batch: �“The trend is of course obvious: for non-essential substances, very little chances of success because of the lack of pharmaceutical-style intervention data and/or unavailability of accepted biomarkers for physiological functions.�”

PHARMACEUTICAL-STYLE DATA ESSENTIAL FOR SUCCESS

The high rejection rate was no surprise given the NDA�’s track record over the previous three batches, but the list did contain some surprises and not all of them were negative.

The positive opinions for sugar, fat and starch replacement have been welcomed by the relevant industries, who are licking their lips at the fresh (or confirmed and bolstered) marketing tools at their disposal, even before the claims make the EU register of claims.

The industry was very relieved to see these opinions as EFSA had previously indicated it may not rule on them despite claims of this type being written into the 2006 nutrition and health regulation (NHCR).

Claims expert Nigel Baldwin from Cantox International said the positive opinions may provoke a revisitation of previous opinions.

�“Comparative claims like the glycaemic

Olive oil wins, probiotics lose as EFSA nears the end of the long

and grinding health claims road

Olive oil has become the first �– and so far only �– product on the European market allowed to make an antioxidant health claim. The European regulator has approved this wording: �“Consumption of olive oil polyphenols contributes to the protection of blood lipids from oxidative damage.�”

Continued on page 3

Cocoa antioxidants plus Coca-Cola

future for Honest Tea

Powershot puts faith in Little

Miracles

Fruit, vegetables and natural energy focus for new Nestlé and

Jamba Juice launches

MAY 20112

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

C O N T E N T S & C O N TA C T S

All enquiries: Miranda MillsCrown House, 72 Hammersmith RoadLondon W14 8TH, UKPhone: +44 (0)20 7617 7032Fax: +44(0)20 7900 [email protected] by Mastercard, American Express and Visa accepted.

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All including fi rst class or airmail postage, net of any bank transfer charges.

Published 11 times a year byThe Centre for Food & Health Studies

ISSN 1464-3308 All rights reserved, photocopying of any part strictly prohibited.

EditorJulian [email protected]

Dale Buss, New Nutrition Business, 6390 Cherry Tree Ct, Rochester Hills, MI 48306, USA.Tel: 248/651-9648 Fax: 248/[email protected]

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COMPANIES AND BRANDS IN THIS ISSUE

New Nutrition Business uses every possible care in compiling, preparing and issuing the information herein given but can accept no liability whatsoever in connection with it.

© 2011 The Centre for Food & Health Studies Ltd. Conditions of sale: All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. The Centre for Food & Health Studies does not participate in a copying agreement with any Copyright Licensing Agency. Photocopying without permission is illegal. Contact the publisher to obtain a photocopying license. This publication must not be circlated outside the staff who work at the address to which it is sent without the prior written agreement of the publisher.

LEAD STORY

1,3-4 Olive oil wins, probiotics lose as EFSA

nears the end of the long and grinding

health claims road

REGULATION

5-6 EFSA issues claims guideance but

industry still lost �– calls to abolish

regulation get louder

NEWS ANALYSIS

7-8 Fruit, vegetables and natural energy

focus for new Nestlé and Jamba Juice

launches

9 Wrigley gives gum brand a calcium

make-over

EDITORIAL

10 Sustainability its own reward

11-12 Protein: growth lies where technology

push is matched with consumer pull

13-14 Cocoa: next super-ingredient at the

tipping point?

15-16 Probi and BioGaia �– a masterclass in

the business of science

commercialisation

CASE STUDIES

17-18 CONFECTIONERY: Chocolate from

heart to pregnancy

19-21 STRATEGY: Cocoa antioxidants plus

Coca-Cola future for Honest Tea

22-23 START-UP: Powershot puts faith in

Little Miracles

24-25 STRATEGY: Energy drinks sustain

impressive performance

NEW PRODUCTS

26-29 Functional & healthy-eating new

product launches

IMPORTANT NOTICE

30 A polite reminder to our subscribers

NEW REPORTS

32 Apps and social media strategies in

healthy foods and beverages

33 Smart start-up strategy in healthy food

and beverage

USEFUL TO KNOW

31 NNB Consultancy

ORDERING

34 New Nutrition Business Publications

35 Order Form

HOW TO SUBSCRIBE

36 Subscription Order Form

5-Hour Energy ................................................25Acticoa ............................................................14AMP ...........................................................24,25Applied Nutrition ............................................12Apure Foods ...............................................14,19Barry Callebaut ..........................................13,14BioGaia ......................................................15,16Biothera ...........................................................18Burger King ....................................................10Cadbury ..........................................................10Coca-Cola ...................................19,20,21,24,25CocoaNova............................................19,20,21Cocoapro .........................................................14CocoXan ....................................................17,18Danone ..................................................10,15,16Extra Professional .............................................9

Hansen Natural ..........................................24,25Hershey .......................................13,14,19,20,21Honest Tea ..................................13,14,19,20,21Innocent ..........................................................10Jamba Juice ....................................................7,8Life�’sDHA ..................................................17,18Little Miracles ............................................22,23Mars Botanicals...............................................14Mars ...........................................................13,14MartekBiosciences ......................................17,18Meiji ................................................................13Monster ......................................................24,25Nestlé ...............................................7,8,10,15,16NOS ...........................................................24,25PepsiCo ............................................10,20,24,25Powershot ...................................................22,23

Probi ...........................................................15,16ProViva ......................................................15,16Quorn ........................................................11,12Red Bull ...........................................22,23,24,25ReGen .............................................................19Rockstar .....................................................24,25Solazyme-Roquette Nutritionals .....................12Starbucks Doubleshot .....................................24Stonyfield Farm ...............................................21SVUS Pharma ..................................................4Wellmune WGP ..............................................18Wrigley .........................................................9,10Xan Confections .............................................17Yakult ................................................................6

MAY 2011 3

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Continued from front page

ones were deemed �‘out of scope�’ before so there are a couple of bioavailability claims for vitamins from the last batch which are back �‘in scope�’,�” he said.

�“How many people will now submit dossiers for probiotics given the success rate of those reviewed under 14 and 13.5?�”

ROLLERCOASTER

One starch supplier described the process as a �“roller coaster�”, while sweetener and fibre supplier, the Beneo Group, paid tribute to the industry�’s work rate.

�“It shows that a solution was found out of the trap of the �‘comparative or replacement claims discussion�’ in which many macronutrients, like for example health bene cial carbohydrates, were caught since 2009 when EFSA raised an eligibility issue with these type of claims in the context of the NHCR,�” said Beneo Group vice president of regulatory affairs and nutrition communication, Anke Sentko.

�“The Beneo Institute considers this evaluation as a step in the right direction for the whole Health Claim Regulation and will continue to explain those product health claims that are still pending.�”

What the opinions mean is the rest of 2011 and certainly 2012 will likely see a proliferation of these type of claims on a wide range of foods and beverages �– especially in those markets such as some eastern European countries where such claims have been severely restricted �– from baked goods to dairy products to snack foods like chocolate and crisps pushing the healthier indulgence line.

1. SugarSugar replacers including the polyols xylitol, sorbitol, mannitol, maltitol, lactitol, isomalt and erythritol and the intense sweeteners D-tagatose, isomaltulose, sucralose and polydextrose were all found to benefit tooth health and glycaemic response.

But products containing the polyols must be accompanied by laxative warnings if excess consumption occurs, the NDA stipulated.

Veteran ingredients public relations company owner Ailbhe Fallon stated of the opinion: �“Given the benefits for everyone of maintaining a healthy weight, the challenges to public health of overweight and obesity, and the challenges to food and beverage manufacturers of producing sweet products that people enjoy while reducing the

sugar content, being able to communicate the genuine benefits of products which replace sugar with low calorie sweeteners is important�”.

Those marketing weight management products will be relieved to see the post-prandial blood glucose claim, as previously the only weight management claim to win a positive opinion had been for liquid meal replacement drinks.

2. StarchThe NDA found resistant starch (RS) can reduce post-prandial glycaemic and insulinaemic responses when replacing digestible starches in high carbohydrate baked goods by at least 14%.

Quite technical then, but also a little curious, according to Baldwin, was the characterisation of starch, which the NDA broadened from the original submission of, �“resistant starch type 2 from high amylose maize�”.

�“The opinion seems to conflict with EFSA�’s tight position on characterisation,�” he said, due to the fact it went on to state it was relevant to, �“resistant starch from all sources�”.

It�’s a concession that is sure to please the wider starch supply industry, if not the key �‘type 2 from high amylase maize�’ supplier �– National Starch.

The weight of the opinion can be felt in research such as that from the Instituto de Agroquímica y Tecnología de Alimentos (CSIC) in Valencia, Spain, recently, where it was found up to 40% of the wheat flour in a short dough biscuit can be replaced by resistant starch without detrimentally affecting the taste, sweetness and overall acceptance.

But the NDA deemed starch-related digestive health and colon metabolism claims too general for the NHCR, and not usable in the fortified bakery market.

3. Fatty acidsFatty acid replacement was another NDA winner. Replacement of saturated fatty acids (SFAs) with monounsaturated fatty acids (MUFAs) and/or mixtures of polyunsaturated fatty acids (PUFAs) was found to help maintain normal blood LDL cholesterol concentrations in a wide range of foods and drinks.

4. BetaineBetaine was found to help maintain normal homocysteine metabolism if 1.5g is consumed daily even though over-consumption safety concerns mean the nutrient has been banned in the EU since 2005, following a negative

novel foods opinion. �“So this will be a very interesting test case

to see that you can do both novel foods and claims separately,�” Baldwin said.

�“In the end having a claim approved would be the incentive to get the novel food decision reversed because it would have some commercial value. In the meantime legally you cannot sell it. However, lots of people do not understand that the two go together and might consider a health claim means it�’s safe and free to sell/use.�”

5. TaurineThe energy sector was not pleased to discover the NDA found taurine does not contribute to normal cognitive or cardiac function and does not delay onset of fatigue during exercise while normal muscle function, metabolism and immunity claims were deemed too general.

This opinion added to a previous negative opinion that the nutrient once extracted from bull bile but now made synthetically could boost energy levels or protect DNA, proteins and lipids from oxidative damage.

6. CaffeineCaffeine was one of several nutrients that won both positive and negative opinions.

Caffeine was found to increase alertness and attention at a level of at least 75mg per serving with a label warning that children and women during pregnancy should not consume caffeine.

But caffeine was found not to increase energy expenditure or fat oxidation and a separate opinion for coffee found the breakfast staple does not protect DNA, lipids or proteins from oxidative damage and chlorogenic acids in coffee do not help maintain normal blood glucose concentrations or normal body weight.

Violaine Chaumont from the claims consultancy, RNI, observed the positive alertness opinion may struggle to make it out the other end of the claims pipe unscathed, given safety concerns that have been expressed by many member states.

�“Some are trying to reduce the daily dose authorised or tolerated in food supplements and in foodstuffs,�” she said.

�“With this health claim approved by EFSA, we can imagine that companies will be more interested in beverages or other pills with caffeine. Member states and the European Commission will want to have specific conditions of uses for caffeine laid down by EFSA in order to keep a high safety level

MAY 20114

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and to limit the development of food with caffeine.�”

Green tea constituent Epigallocatechin gallate (EGCG) and caffeine were found not to contribute to the maintenance or achievement of a normal body weight.

7. Olive polyphenolsOlive polyphenols won a positive opinion based on antioxidant activity �– the first antioxidant success.

�“The Panel concludes that a cause and effect relationship has been established between the consumption of olive oil polyphenols (standardised by the content of hydroxytyrosol and its derivatives) and protection of LDL particles from oxidative damage,�” the NDA found.

The Panel ruled that in order to bear the claim, 5mg of hydroxytyrosol and its derivatives (such as oleuropein complex and tyrosol) in olive oil should be consumed daily: �“These amounts, if provided by moderate amounts of olive oil, can be easily consumed in the context of a balanced diet. The concentrations in some olive oils may be too low to allow the consumption of this amount of polyphenols in the context of a balanced diet. The target population is the general population.�”

The following claim wording was specified:Consumption of olive oil polyphenols contributes to

the protection of blood lipids from oxidative damage.

8. ProbioticsThe probiotics industry was again hit hard with the NDA turning down a range of skin, immunity and gut propositions for eight individual strains that failed on grounds ranging from over-generalised claims to poorly supported or controlled trial data.

The rejected claims added to the 200 or so probiotic claims that have already failed to impress the NDA and led to probiotic academic, Professor Ger Rijkers, PhD, from the University Medical Center in Utrecht, reiterating that it was not the science, but the lack of claim criteria clarity, that was the major problem.

�“In the absence of clear-cut criteria, and an EFSA panel which admits they are evaluating the applications on a �‘case-by-case�’ scenario, there is little hope for the remainder of the applications which are currently under evaluation,�” he said.

Tongue-in-cheek, he suggested adding humble water �– which won claims for normal physical and cognitive functions and thermoregulation when two litres were

consumed per day �– to probiotic products to win claims.

�“Adding water to the probiotics, in order to maintain normal physical and cognitive functions, for the short term is the only solution.�”

Cantox�’s Baldwin added: �“EFSA do seem to be very hard on probiotics, there does seem to be a higher bar for those products than for other more well known ingredients.�”

Those strains rejected in batch four were:�• Lactobacillus rhamnosus LB21 NCIMB

40564 does not help maintain individual intestinal microbiota in subjects receiving antibiotic treatment.

�• Lactobacillus paracasei LMG P 22043 which was found not to decrease potentially pathogenic gastro-intestinal microorganisms or reduce gastro-intestinal discomfort.

�• Bifidobacterium longum BB536 does not improve bowel regularity; does not resist cedar pollen allergens; does not decrease pathogens.

�• Lactobacillus fermentum ME-3 not shown to decrease potentially pathogenic gastro-intestinal microorganisms.

�• Bifidobacterium animalis ssp. lactis Bb-12 does not help maintain normal LDL-blood cholesterol; does not decrease pathogens or boost immunity.

�• Lactobacillus johnsonii BFE 6128 immunity and skin claims deemed too general.

�• Lactobacillus plantarum 299v does not reduce flatulence and bloating or protect DNA, proteins and lipids from oxidative damage.

�• Lactobacillus plantarum BFE 1685 immunity claim deemed too general.

SOME POSITIVES

�• Carbamide sugar-free gum. Gum again featured well, with this type of gum shown to neutralise plaque acid when there is at least 20mg carbamide per piece and it is chewed for at least 20 minutes after eating or drinking.

�• Activated charcoal can reduce excessive intestinal gas accumulation if 1g consumed 30 minutes before a meal and 1g after meals. �“I used to feed this to my dog,�” said Baldwin, the regulatory expert with Cantox.

�• Choline was found to benefit lipid metabolism; liver function; homocysteine metabolism.

�• Meat or fish can improve non haem iron absorption.

Similarly almonds and walnuts, quercetin, green tea catechins, beta-carotene, acacia gum, peanuts, peanut oil and peanut butter, rapeseed oil, maize oil, L-lysine, mycoprotein, sugar beet fibre, maltodextrin were deemed not to have demonstrated an effect on LDL cholesterol among other measures.

However, walnuts were found to help improve function of blood vessels, provided that 30g of walnuts are consumed daily. The wording of the approved claim has the absolute lack of consumer-friendliness or commercial value that has come to characterize most of EFSA�’s health claim decisions. It reads as follows:

Walnuts contribute to the improvement of endothelium-dependent vasodilation.

A �“Basic requirement of all living things�” claim for water was rejected as too general for NHCR.

Moritz Hagenmeyer, the German lawyer behind the submission of previously rejected article 14 disease reduction claims for water, suggested the positive opinions, including those for water, did not mask an ongoing inconsistent approach.

�“The assessment process as a whole thus remains somewhat non-transparent and slightly inconsistent,�” Hagenmeyer said.

�“In all fairness one should add that the regulatory overkill established by the regulation probably had to lead to such undesired results. Only abolishing the regulation altogether could really solve the problem. Who has the courage to tackle this issue?�”

THE PHARMA CONSPIRACY THEORY GETS AN AIRING

The NDA also found the time in April to issue rejection slips to a couple of article 14 lactoferrin-based immunity claims submitted by a Czech pharma-nutra firm called SVUS Pharma.

That rejection provoked the company�’s business development manager and vice president of the Czech Special Foods Association (CSFA), Vaclav Bazata, to raise an accusation against the NDA of a pharma bias and placing unattainable demands on nutrient science and communication.

�“EFSA wants platinum, not gold science,�” he told industry website NutraIngredients.com. �“It�’s a mess and the problem is that EFSA is not listening to industry, especially with the pharma industry behind the scene.�”

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R E G U L AT I O N

The European Food Safety Authority (EFSA) did more than just publish hundreds of general function health claim opinions in April.

It backed the flurry of Article 13 nutrition and health claim regulation (NHCR) activity with the publication of five guidance documents at the back end of the month that conjugate and congeal previous missives.

The initial industry reaction to the detail contained in these documents has been lukewarm at best and echoed previous criticisms of the agency�’s health claim verification approach.

In essence, industry and many academic peers of the scientists that sit on EFSA�’s health claims panel want greater clarity on claimed effects, biomarkers and trial design to meet the pharma-style claims criteria they now accept will not be changed.

They are frustrated by the case-by-case approach the agency says it is bound to follow due to the strictures of the NHCR and its own learnings as the European Union�’s appointed risk assessor within those strictures.

�“Scientists as well as industry have asked and asked again for a detailed list of acceptable outcome measures,�” observed Ger Rijkers, PhD, from the University Medical Center in Utrecht, in the Netherlands. They haven�’t been forthcoming, he reflected.

More and more, the dissenting voices suggest EFSA�’s �“our hands are tied by the regulation�” argument is contradicted by inconsistencies in its claim opinions for various substances (essential versus non-essential nutrients for instance), and that something more closely approximating a deliberate obfuscation of necessary data is occurring.

�“A comparison of different EFSA opinions

could leave the observer with the impression that other than purely scientific motives guide the authority,�” said Moritz Hagenmeyer, a German lawyer involved in a rejected water and hydration Article 14 disease reduction dossier earlier this year.

�“Only abolishing the regulation altogether could really solve the problem.�”

But is that just sour grapes from a healthy foods, supplements and ingredients industry that has had thousands of its nutrient-health benefit propositions pistol-whipped by the EFSA�’s interpretation of the NHCR?

GUIDANCE?

Three of the guidance documents are drafts in the following areas:

�• satiety, weight management and blood glucose concentrations.

�• antioxidants, oxidative damage and cardiovascular health.

�• bone, joints and oral health.

EFSA is giving stakeholders until August 31 this year to submit comments on the draft documents that spell out where the agency is at in regard to each area, reflecting its own self-confessed learning process, and most of which has been gleaned from already published opinions and various consultations.

Come September, the agency�’s health claims panel will scrutinise and reflect on the received industry and academic input before producing final guidance papers.

Further draft guidance and consultations on neurological and psychological functions and physical performance may come later in the year, but all of this activity will take place via correspondence and there will be no more

face-to-face meetings like the one that had occurred in Amsterdam last December.

EFSA will however publish in entirety all the received comments as it did in conjunction with the gut and immune health guidance it posted on its website last month.

GUT FEELINGS

That 176-page document makes interesting reading as it compiles the frustrations of 58 corporations, trade groups, government bodies and academia have with the EFSA approach.

Perhaps more telling are the way those queries, and others that were raised at the gut and immune health stakeholder meeting held in Amsterdam, have been addressed in the final guidance.

In issuing the documents, EFSA labelled itself a �“listening organisation�” but members of the probiotic sector say the content of the guidance document indicates otherwise.

Glenn Gibson, PhD, the Head of Food Microbial Sciences at the University of Reading in the UK, said the guidance only highlighted the widening gap between the consensus view of the effectiveness of probiotics among academia, and the view of EFSA�’s health claims panel.

�“What struck me in the comments was the overwhelming support in the scientific community for increased probiotics being significant for health irrespective of whether strains themselves were ingested or prebiotics were used to fortify indigenous species,�” he said.

�“Many examples of peer-reviewed research and mechanisms of effect are given. Given this sound body of argument, EFSA�’s health claims panel must surely now

EFSA issues claims guidance but industry still lost �– calls to abolish regulation get louder

The blanket rejection by EFSA �– the European health claim regulator �– of claims connected with probiotics, antioxidants, weight management, joint health and many other areas has left industry crying out for better guidance on what the regulator requires to give a claim approval. More and more, many people in industry suggest, EFSA�’s �“our hands are tied by the regulation�” argument is contradicted by inconsistencies in its claim opinions for various substances �– and that something more closely approximating a deliberate obfuscation of necessary data is alleged by some to be taking place. By HENRI DE BAIN.

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R E G U L AT I O N

revise their hitherto intransient position on bifidobacteria and lactobacilli.�”

Dr Rijkers said the published comments were interesting, �“because up until now we didn�’t know who had commented on what.�”

“HEALTH CLAIMS ARE OFTEN TECHNICALLY COMPLEX AND UNIQUE”

In its defence EFSA stated: �“Some comments were considered to be too detailed and technical to be covered in a guidance document, for example comments on experimental design and methods, statistical analysis or exhaustive lists of appropriate outcome measures for claimed effects. Some of the comments may need to be considered in the context of a specific application for health claims, and are difficult to be covered in a guidance document.�”

�“It should be noted that the guidance document represents the views of the NDA Panel based on the experience gained to date with the evaluation of health claims in these areas. Health claims are often technically complex and unique, and it is not possible for the NDA Panel to predict all potential claims, including appropriate outcome measures.�”

DOCUMENT “DEEPLY FLAWED” AND CONTRADICTORY

But a representative from one leading probiotic manufacturer said the document was deeply flawed, did not address debated points in Amsterdam and in the consultation period comments, and contradicted EFSA�’s own previous opinions.

�“The questions and answers were mostly not reflected in the guidance, which was very disappointing,�” she said. �“For example, for bowel functions, EFSA does not dare to give an example like which questionnaire can be used for stool consistency. The same goes for the questionnaire for common colds (upper respiratory tract infection) for which the WURSS-21 questionnaire was asked about and confirmed by the NDA panel to be the right one to use in Amsterdam.�”

On the validation of a potential biomarker called secretory IgA, a Yakult spokesperson referred to an Article 14 opinion that had stated: �“The Panel considers that increasing suppressed concentrations of secretory IgA might be a beneficial physiological effect in the context of reducing the risk of influenza

and common cold.�”This reference did not make the final

guidance however, rather another measure �– IgE �– but only in regard to some allergies.

�“It seems EFSA does not sufficiently update this document with their own assessment report and statement,�” she said. �“While everyone is looking for a possible risk factor, despite their own statement about sIgA, they are not including such useful information.�”

MANY WITH BONES TO PICK WITH EFSA

Those who submitted comments included Nestlé, Kraft Foods, the French Academy of Pharmacy, the International Life Sciences Institute, the Belgian Federal Agency For Medicines and Health Products, Danone, Yakult, Danisco, Chr Hansen, the British Nutrition Foundation, Barry Callebaut, Unilever, Tate & Lyle, Mead Johnson, Cargill, Beneo, Barts and the London School of Medicine.

Others to submit included Sudzucker, Puratos, the Association of the European Self-Medication Industry and the European Botanical Forum and the Committee for Human Medicinal Products at the European Medicines Agency.

Some of the queries included:

�• Is reduced diarrhoea a bene cial physiological effect? And should diarrhoea be included in the overall description of bowel function?

�• Are Irritable Bowel Syndrome (IBS) patients (adults or children) an acceptable study group?

�• Are there study groups other than IBS patients to support a claim for the general population?

�• Is reducing gastro-intestinal discomfort a bene cial physiological effect in young children?

�• What outcome measures are acceptable, for example, are quality of life questionnaires acceptable?

�• What are appropriate validation requirements for questionnaires for the purpose of the study?

�• What constitutes a bene cial microbiota?�• Can gastro-intestinal outcome measures

such as intestinal permeability, pH, and short-chain fatty acid production be

considered in themselves as a bene cial physiological effect?

�• What is an appropriate cut-off level at which a reduction of the numbers of relevant pathogens would be meaningful?

�• Can a claim on defence against pathogens be substantiated by clinical outcome measures only, for example traveller�’s diarrhoea without a measurement of pathogens?

�• Is the restoration of a disturbed microbiota considered as a bene cial physiological effect?

�• Can only increased bioavailability of a nutrient be considered a bene cial physiological effect?

�• Can immunological markers be used to substantiate a function claim if supported by a concomitant clinical outcome?

�• For a function claim on immune defence against pathogens is it suf cient to measure the clinical endpoint with concomitant immunological markers? Need the immunological markers be assessed in the same study?

�• Does EFSA only accept maintenance of immune function claims or also claims for an improved function of the immune system?

�• Which methods are appropriate to assess the incidence of infections?

�• Can disease risk reduction claims also be based on infection endpoints?

�• Is there a need to identify a risk factor for allergy risk reduction claims?

�• Is the reduction of in ammatory markers considered bene cial?

CRYING OUT FOR ANSWERS

There are answers to some of these questions in the guidance document but industry continues to cry out for more.

The Yakult spokesperson went further: �“EFSA is failing the challenge of food claims while also not living up to the level of complicated but speci ed medical guidance that has been established for decades. What will happen is that we will be back in the stone age with only vitamins and minerals, while there should be so much more to explore with foods.�”

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Jamba Juice, America�’s biggest juice bar chain, is co-branding with Nestlé a �“natural energy�” range and debuting smoothies with vegetables as part of an ongoing make-over designed to restore its pro tability and re-ignite growth.

SUPERMARKET DISTRIBUTION FOR JUICE BAR BRAND

Two years after Nestlé and Jamba Juice rst announced their intention to sell co-branded ready-to-drink smoothies in American supermarkets, the dynamic duo have debuted their rst product. But it isn�’t, as originally planned, a chilled smoothie. Instead the focus is on �“Natural Energy�” and competing head-on with classic energy drinks �– a category which grew 10.94% to a total retail sales value of over $5.815 billion (�€3.92 billion) in retail sales in 2010, according to SymphonyIRI data (see Case Study on page 24) .

Nestlé USA launched the new Nestlé Jamba All-Natural Energy Drinks in supermarkets in the northeast of the US in February and they will now go on sale in almost 600 Jamba Juice juice-bars across the US. A Nestlé spokesman claimed that reception in the supermarket channel had so far been �“better than we could have imagined.�”

With 80mg of caffeine (described as �“Natural caffeine to help support mental alertness!�”) in each 250m slim-pro le can �– the classic energy drink size and shape �– the brand comes in three avours: strawberry banana, crisp apple, and pomegranate blueberry.

The 70% juice drink is sweetened with stevia and has only 90 calories per can: overall it claims lower calories and sugar per serve than Red Bull. The product is also labelled as: �“All Natural (No arti cial ingredients, no taurine, no glucuronolactone)�” as well as containing no arti cial preservatives, avours, or colours and no high fructose corn syrup.�”

Jamba Juice All Natural Energy retails for around $2.20 (�€1.48) per can, equivalent to $8.80 (�€5.93) per litre �– putting it at the same price point as Red Bull.

TWO SERVINGS OF VEG

Also certain to be watched closely by the packaged beverage industry is Jamba Juice�’s decision to add vegetables to fruit with three new Fruit & Veggie Smoothies �– its rst ever fruit and vegetable smoothie platform.

Designed to provide three full servings of fruits and vegetables with only 250 calories in each 16oz (473ml) serving, the Jamba Juice

Fruit & Veggie Smoothies are available in three avours: Berry UpBeeT, Apple �‘n Greens and Orange Carrot Karma:

�• Apple �‘n Greens blends apple and strawberry juice with the juice from kale �– a dark leafy green vegetable �– spinach, bell pepper, carrots, lettuce, spirulina, peaches, mangos and bananas.

�• Berry UpBEET combines strawberries and blueberries with carrots, beetroot, broccoli, kale, spinach and lettuce.

�• Orange Carrot Karma is a blend of carrot juice, orange juice, mangos and bananas.

�“We know how important it is to get your daily recommended servings of fruits and vegetables, but we also know how dif cult it can be,�” said Susan Shields, senior vice president and Chief Marketing Of cer, Jamba Juice, in a statement issued by the company. �“With the Jamba Fruit & Veggie Smoothies we are not only providing a convenient way to get your daily servings of fruits and vegetables, but one that tastes great.�”

The Jamba Juice Fruit & Veggie Smoothies have no high fructose corn syrup, no arti cial avors, no arti cial preservatives. A 16-ounce serve will retail for about $4.25 (�€2.90) �– equivalent to almost $8.60 (�€5.80) per litre.

Founded in 1990, NASDAQ-quoted Jamba Juice is America�’s biggest juice and smoothie bar chain with 743 locations, consisting of 351 company-owned and operated stores and 392 franchise stores.

In recent years it has been striving to offer a wider range of better-for-you foods and beverages, including teas, hot oatmeal, wraps, salads, sandwiches and a variety of baked goods and snacks.

In 2008 the company began to develop a growth platform based on licensing its brands to third-parties to use on products intended for mainstream supermarket distribution. The recent launch of the All-Natural Energy drink jointly with Nestlé is a result of this strategy.

Jamba is working hard to rede ne itself and expand its store franchising �– in place of company-owned stores. Recently the company

Fruit, vegetables and natural energy focus for new Nestlé and

Jamba Juice launches

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announced a net loss for its 2010 nancial year of $16.7 million (�€11.27 million) �– an improvement on the company�’s net loss of $23.9 million (�€16.1 million) in 2009. Included in the scal 2010 loss were charges of $7 million related to re-structuring costs.

COMMENT

Natural Energy: Over the years the energy drink category has seen many �“all-natural�” offerings �– mostly based on caffeine or guarana �– but none has achieved any lasting success. Creating an all-natural energy drink proposition is the �“holy grail�” of many beverage companies. Without the co-branding with Jamba �– a brand with signi cant credibility among the target market of young, mostly female, consumers �– Nestlé could not have had any hope of launching such a product, since its brand has no credibility in categories such as these. Nevertheless, the new energy drink does still carry the Nestlé label. Nestlé has manufacturing, retail distribution and mass-marketing know-how, all of which add value �– but its brand has no value and it remains to be seen whether its presence is a hindrance. It will certainly not be a help.

The future of fruit and veg? Jamba�’s launch of smoothies that provide two servings of vegetables will also be closely watched. In the never-ending quest for a point of difference product formulators have been giving closer attention to whether and how to formulate vegetables into fruit drinks. Marketers remain largely averse to the idea �– fearing that taste will be an issue or that even the idea of vegetables, which lack sweetness and often have bitter notes, will turn off consumers. No matter how healthy they are, taste is the key success factor for the new Jamba smoothies and whether they survive and thrive will be watched far and wide.

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Calcium for healthy bones and teeth has long been the number one health bene t from dairy, with no other category presenting any signi cant challenge. But Wrigley�’s launch of its rst calcium-forti ed gum shows how dairy�’s ownership of that message is set to be challenged by a gum industry that long-since succeeded in making various dental health bene ts the key selling point of its products.

In Australia in April The Wrigley Company �– part of Mars �– launched a new extension to its successful Extra Professional sugar-free chewing gum. Called Wrigley�’s Extra Professional Calcium, it is a calcium-forti ed gum designed to deliver 10% (or 80g) of the recommended daily intake of calcium �– if two pellets of the new gum are chewed for 20 minutes.

AUSTRALIAN FIRST

Extra Professional Calcium is an Australian- rst for sugarfree gum �– the rst and only gum to be allowed by the national food regulator (Food Standards Australia and New Zealand) to be forti ed with calcium.

�“With more than half of the Australian population already chewing gum, Extra Professional Calcium is an ideal way for consumers to add a little bit more calcium to their diet, without having to make and sustain any major lifestyle changes,�” said Wrigley Paci c Marketing Director, Andrew Leakey, in a statement issued by the company.

Wrigley�’s Extra Professional range has a 16.1% market share in grocery channels and a 15% share in convenience channels.

Wrigley, which is the market leader in the gum category in Australia, says that the Extra Professional range, which includes Extra Professional and Extra Professional White, has been a key category growth driver and �“has been enormously successful for Wrigley�”.

According to Aztec Data, which collects supermarket and convenience store sales data, in the year to 3rd April 2011:

�• Total sales of the Extra Professional brand were A$7.462 million ($8.16 million/�€5.5 million)

�• The total Australian gum market was worth $203.482 million ($222.46 million/�€150 million)

�“Calcium is something that should be on everyone�’s agenda because it is essential for strong, healthy bones and teeth,�” added Leakey. �“With approximately 90% of the Australian population reportedly not consuming enough calcium from their diet, Extra Professional Calcium provides consumers with an �‘on-the-go�’ option to complement a balanced diet and help boost their daily calcium intake.�”

The launch will be supported by a substantial investment in an integrated marketing and communications campaign across Australia and New Zealand, including above the line advertising, dedicated point of sale, experiential marketing, proactive media engagement and healthcare professional communications.

Extra Professional Calcium is available in a 10 pellet blister pack �– enough for ve days usage if you are making sure you get the 10% RDI daily dose �– at around A$1.20 ($1.31/�€0.85) per pack and a 3-pack multipack for around A$3.25 ($3.55/�€2.40).

COMMENT

Over the last 15 years the �“functional food make-over�” has been one of the most common strategies in mature and slow-growth categories.

Wrigley�’s approach is interesting because it is an approach which is described as �“category substitution�” �– taking the established health bene t of one category and applying it to another category with the promise of a more convenient format. In this case the bene t is that of calcium for healthy bones and teeth, which has long been the bene t most associated with dairy.

However, the low amount of calcium in the gum relative to the RDI of calcium means it won�’t be giving dairy marketers any sleepless nights.

But it is a good example of connecting a new bene t to a new category �– and in the consumer�’s mind it�’s a logical bene t to add to gums, which have already got a strong association with various dental health bene ts, such as preventing cavities.

Wrigley gives gum brand a calcium make-over

$ 2 ($ 2 )

Extra Professional Calcium is the rst and only sugarfree gum in Australia allowed to be forti ed with calcium. Wrigley says the Extra Professional range has been �“enormously successful�”.

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Consultants, faced with the twin challenges of a. finding new ideas to sell to their clients and b. ideas that can be implemented in an environment in which health claim regulation makes it harder to communicate a product�’s benefits, have recently pumped-up their focus on �“sustainability�” as a strategy.

At industry conferences you are almost guaranteed to find at least one presenter telling you that you can differentiate by �“dramatising your value chain�” or �“take transparency to a new level�” or �“use transparency to position for good �– and sell!�”. In other words, show consumers how sustainable you are being and you will be rewarded.

There�’s just one problem. Transparency and �“dramatising your value chain�” are not a strategy and they are no longer a point of difference. Like �“naturalness�” (see NNB April 2011), they have moved from being a point of difference 10 years ago to a basic requirement that your brand needs to have to be credible, even in the mass market.

That sustainability has moved from �“trend�” to �“business as usual�” is greatly to the credit of our industry. The shift is reflected in the massive array of efforts being undertaken by companies large and small to lower their carbon footprint, reduce water and energy consumption, minimise packaging waste, recycle, reduce wastage in transportation �– and much, much, more.

Happily, most sustainability-driven changes also reduce companies�’ input costs �– important in a world in which the price of many food ingredients is set to increase. To take one example, in its UK potato chip operations PepsiCo reportedly found that by reusing the water vapour lost when it turns potatoes into potato chips it could save an estimated $1 million a year (�€680,000) at its UK plant alone �– a saving that can be multiplied massively if the improvement is made across all the company�’s plant.

Mars-owned Wrigley is one of dozens of companies installing solar panels on the roofs of its factories and reducing their energy bills. At its Altoids mints plant in the US, the system produces 3% of the plant�’s energy usage and covers about 12% of the factory�’s roof and will be expanded �– Wrigley has committed to a �“zero carbon footprint,�” along with �“no waste to landfill�”.

Supermarkets are also driving sustainability to be an industry standard:

�• Even Wal-Mart, the most price-driven of food retailers, has a 15-point Supplier Sustainability Mandate, designed to minimize negative environmental impact of inputs, processing and post-consumer waste.

�• Safeway, one of America�’s largest supermarket chains, has claimed the top spot in the Greenpeace seafood sustainability report for discontinuing sales of unsustainably-caught species, including orange roughy. �“Safeway broke new ground with this new report,�” said Casson Trenor, senior markets campaigner for Greenpeace in a press statement.

There is also �– for many companies �– no separation in their strategy between �“health of the people�” and �“health of the planet�”. To take one example, Danone, which owns two of the world�’s biggest functional dairy brands �– Actimel and Activia �– has long made continuous improvements in packaging and other sustainability aspects of these two brands an everyday part of strategy (see illustration).

It�’s often claimed that consumers want brands from companies that score highly on sustainability, and this is true, but they will not reward you for your efforts with higher sales, nor will they pay higher prices for your products. These things are just what they expect you to do.

However, people may punish you if you are seen to fall down on sustainability issues. Advocacy groups such as Greenpeace and others have creatively incorporated social

media, blogs and search functionality to �“out�” green-washers and vet supply chains. As a result of such campaigns companies such as Nestlé and Burger King changed palm oil providers to ones using sustainable sources and in Australasia Cadbury discontinued its use.

Brand consultants are fond of claiming, when pressed, that brands that score highly on environmental sustainability command greater brand loyalty. That�’s true, but only if your brand addresses the 20% of consumers who are most-motivated by health and the environment, as organic brands do. But in the wider market it won�’t help �– it certainly didn�’t help Innocent, the UK smoothie giant, whose excellent sustainability credentials did not stop its sales falling by 30% during the recession.

The real driver of consumer interest in sustainability may not be concern for �“we�” but concern for �“me�”. According to Mintel, 45% of �“sustainable food and drink users�” cite a belief in superior quality as the reason behind their purchases �– compared to 43% concerned about environmental/human welfare. In other words, �“better for me�” is still as important as better for the planet.

The statement by one branding company that �“How companies articulate their sustainability commitments and the value of their green investments truly can distinguish a brand�” is becoming less and less true with every year that passes. Your reward for sustainability will be primarily the cold hard cash of reduced energy and packaging costs �– and the ability to sleep well at night, secure in the knowledge that you are doing the right thing as a citizen.

Sustainability its own reward

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Protein has the potential to be one of the growth ingredients of the future. But the sources of that growth may not be what we currently expect them to be. Right now, in fact, the biggest growth opportunities for protein are being overlooked, despite some very clear signposts.

Marketers and innovation teams are always on the lookout for the next �“hit�” ingredient and the big innovation idea that could transform their businesses. But one obstacle that stands in the way of many such quests ever getting the market-changing results they aspire to is the powerful desire that many companies have to find ingredients that can be formulated easily into the type of products they already produce. It�’s that type of thinking that dominates current efforts to make more of protein.

DEMAND GROWING

Protein is slowly �– very slowly �– starting to benefit from increased �“consumer pull�”. Demand for high-quality sources of protein is likely to grow significantly in the years ahead. The most health-conscious consumers are becoming more aware of the benefits of protein in the diet �– in relation to weight management for example �– driven by a wide range of influences, such as the publicity surrounding the publication late last year in the New England Journal of Medicine of the results of the world�’s largest diet study.

The large-scale randomised study, called Diogenes, found that high-protein, low-glycemic index (GI) diets were the most effective for weight management. The researchers favour diets with 25% of calories from high-quality, low-fat protein sources. Their recommendation is a higher intake of (high quality) protein than current guidelines recommend.

At the same time producers of protein, and in particular the dairy industry with its huge annual output of whey proteins, are working hard to find ways to take protein out of the body-builder and elite athlete

niche and into wider consumer markets �– as yet without any major successes. In fact, what successful high-protein brands there are remain firmly wedded to the more committed end of the sports market.

Industry�’s focus is on getting whey (and other) proteins formulated into more bars and beverages, for two main reasons:

�• partly because these formats are extremely convenient

�• and partly because of �“technology push�”: industry has already invested heavily in developing technological know-how to overcome problems of taste and texture and thus enable protein to be used in these formats at higher doses than in the past.

But what if these are the wrong formats? What if the biggest opportunity lay in other formats? And the reason we are looking at the wrong formats is because of �“technology push�”.

Some of the best examples of the flawed logic of �“technology push�” have been the many failed attempts to market bottled water loaded with protein. Consumers have strong views about the naturalness and purity of water (its chief selling point) and they certainly don�’t expect to find protein in their water. The failure of protein waters reminds us that it�’s a key success factor for any new technology or brand that the ingredient, the benefit and the product format have some sort of acceptable fit in the mind of the consumer.

If we apply the logic of fitting ingredient, benefit and product format together, then the biggest opportunity seems to lie where no one seems to be looking �– except possibly the consumer.

FORMAT KEY TO SUCCESS

Protein is an ingredient which makes most sense to consumers as a significant part of a meal. That�’s because of the power of history, custom and culture. Red meat,

chicken, fish �– all such proteins are primarily consumed as �“meal-centres�”.

A focus on meal-centres is one of the key reasons for the success of one of the industry�’s greatest innovations of the last 50 years, the �“fifth protein�”, marketed to consumers under the brand name Quorn.

Quorn was created back in the 1960s when it was widely believed that the 21st century would witness a protein shortage. The product is based on a totally new type of protein, mycoprotein, not taken from an animal, but produced by fermentation of a soil organism called Fusarium sp. A3/5.

If that sounds �“too weird�” and hard for consumers to swallow, it�’s worth remembering that since Quorn was launched in the consumer market in the early 1990s it has grown to become a profitable brand on sale in 10 countries with retail sales in excess of $269 million (�€194 million).

And Quorn has achieved this despite scant marketing investment from the debt-burdened company which owned the brand until recently and despite being a protein manufactured from a soil fungus.

PUSH PLUS PULL

Quorn was able to overcome the weirdness of being something new from a soil protein because its marketers did not rely on technology push �– they also worked hard to create consumer pull. A significant part of Quorn�’s success stems from NPD efforts that have presented Quorn in forms such as ready meals, escalopes, schnitzels and the like which are familiar and acceptable to consumers. Today the range encompasses over 32 items, both chilled and frozen, including deli meats in a range of meat flavours and ready meals ranging from spaghetti bolognese to red Thai curry as well as the more traditional meat-free options of sausages, burgers, mince and nuggets.

In these formats Quorn measures up well when compared against the bars and beverages which are attempting to

Protein: growth lies where technology push is matched

with consumer pull

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�“mainstream protein�”. For example, the fast-growing protein drink Mix1 delivers 15g of protein per 325ml single-serve bottle, compared to 12g of protein for a single 120g Quorn escalope. And the Quorn escalope can be consumed as part of a regular meal, it does not require the consumer to change their habits, nor does it fill them up with 325ml of liquid �– an off-puttingly large amount for many people.

MEETING THE NEEDS OF TODAY’S CONSUMER

Consumer pull for Quorn is also growing as health becomes more embedded in people�’s choices, since it boasts the perfect nutritional profile for today�’s consumer �– it contains no allergens, it�’s low in fat and high in fibre, and is an easily digestible protein that�’s on a par with meat in terms of essential amino acid content.

Recognizing and accepting people�’s habits and preferences is vital to creating consumer pull. When Applied Nutrition (see Case Study in NNB September 2010) set out to create a product for seniors that would help fight sarcopenia (muscle wastage) �– a condition that diminishes everyone�’s quality of life from the age of 60 onwards �– the company found that the format with most appeal for seniors was not a beverage (older people don�’t like large quantities of liquid) but an old-fashioned cookie.

Quorn may, for now, be unique, but that is set to change in the coming decade as the growing confluence of global trends and new technologies drives new opportunities for alternatives to animal proteins.

Consumer pull is one driver of the trend: the growing middle class in emerging countries from China to India to Brazil is demanding a richer protein diet, straining supplies and pushing up the prices of traditional proteins such as beef, lamb, pork, chicken and fish. As a result, in 2010 global meat prices hit a 20-year high �– and the UN Food and Agriculture Organisation sees higher demand for protein and higher prices being the �“new normal�” for this decade.

The other driver is technology push, which is creating new product possibilities just as consumer pull accelerates. One example is Solazyme, a San Francisco-based producer of renewable oil, which has joined forces with French ingredients supplier Roquette to produce food ingredients derived from microalgae on a massive scale.

The two companies have set up a joint-venture, called Solazyme-Roquette Nutritionals, to build a commercial-scale manufacturing plant with the capacity to produce tens of thousands of tonnes of microalgae-based ingredients every year for use in mainstream food applications.

Solazyme-Roquette believes microalgae-derived protein represents a major opportunity. �“We can change the fermentation conditions of the same natural strain of algae and create a protein-based product that�’s part protein and part fibre,�” said a company spokesperson. �“It�’ll offer complete amino acid structures, like whey or soy, but it will vary in terms of which amino acids it will be high in, which will provide the opportunity to add different amino acid structures to protein-based products.

“STRONG DEMAND” FOR NEW SOURCES OF PROTEIN

�“In addition, it will be vegan and gluten-free. There�’s a strong demand for new vegan sources of protein and algae is an attractive alternative to things like soy, pea and other protein-based plant products.�”

In the West, alongside growing consumer interest in the health benefits of protein, consumers who have been scarred by the economic downturn will be resistant to ever-growing meat prices thus creating more consumer pull for new proteins that are both healthy and affordable.

But the lesson from Quorn �– and the dairy industry�’s 10-year long effort to �“mainstream whey protein�” �– is that consumer pull will be strongest where protein is in the formats where people most expect to find protein. Quorn shows that the most health-conscious consumers will also be willing to accept new proteins �– even proteins produced by fermentation �– provided that they taste good, are healthy and look �“like real food�”.

Such new proteins might even be able to claim a sustainability benefit �– fermenting microalgae requires a lot less land than raising animals for meat, with none of the animal welfare issues that trouble many consumers nor the economic and environmental cost of grains and feeds.

Quorn is a perfect example of the innovation that�’s possible with high quality proteins.

Quorn was recently sold �– not to a food company but to a private equity firm. Private equity firms are ramping up their interest in protein �– hardly surprising given the future demand and price forecasts.

Whey protein has advantages as one of the most easily-digested and healthy proteins. But the long hoped-for growth into the mainstream won�’t materialize on the scale and speed which the dairy industry is counting on unless there is a re-think of how whey protein can best be used in foods �– that is, foods that consumers will accept and want to eat.

CHART 15: PROOF OF CONCEPT – QUORN SALES SUCCESS

Proof of concept: Quorn sales have grown steadily since 1990 and by 2008 it was on sale in eight countries rising to 10 countries by 2010.

Source: Marlow Foods

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The convergence of scientific and technological progress, corporate strategy, consumer knowledge and desire for foods that can claim to be �“naturally healthy�” is bringing cocoa to a tipping point. Though the growth curve may be a long and gentle one, cocoa�’s use in foods as a health ingredient is now clearly and firmly on the increase. Beverages, dairy and snacks look like the areas most likely to be able to make the most of cocoa�’s future potential.

1. Scientific and technological progressThanks to a huge investment in research by the leading cocoa processors �– Mars, Hershey, Barry Callebaut and Meiji �– there is a significant and ever-growing (over 100 published clinical studies so far) body of evidence for the health benefits of cocoa flavanols, particularly in relation to cardiovascular health.

Although Europe�’s health claim regulators have ruled that �– by their flawed criteria �– cocoa�’s health benefits don�’t measure up, most other countries would more than likely agree, looking at the totality of the evidence, that flavanols�’ science is strong. And it�’s getting stronger all the time �– to the point where a year or two from now perhaps even the European regulator won�’t be able to ignore it. Some recent examples include:

�• Japanese researchers found that cocoa flavanols boosted HDL cholesterol, the

type of cholesterol which is protective of cardiovascular health. Published in the Journal of Agricultural and Food Chemistry, their study says that: �“These results elucidate a novel mechanism by which HDL cholesterol levels become elevated with daily cocoa intake.�”

�• Activity of the angiotensin-converting enzyme (ACE) �– a target for blood pressure medication �– was significantly inhibited by dark chocolate containing 72% cocoa, with the degree of inhibition dependent upon the genotype of the human subjects, according to a study published in the Journal of Cardiovascular Pharmacology.

�• A meta-analysis in the Archives of Internal Medicine by researchers from the University Hospital of Cologne found that consumption of cocoa achieved a reduction in hypertension equivalent to that of antihypertensive medications: �“The magnitude of the hypotensive effects of cocoa is clinically noteworthy; it is in the range that is usually achieved with monotherapy of beta-blockers or angiotensin-converting enzyme inhibitors.�”

Scientific findings such as these are just the tip of an ever-growing iceberg.

At the same time, significant advances in processing technology allow cocoa to be formulated into many more new product formats with a better health image than chocolate confectionery, while also allowing it both to retain its health benefits and deliver good taste. One of the most recent examples of these advances is the development of a patent-pending process by Hershey and Honest Tea which allowed Honest Tea to create its first cocoa-based products.

Emerging science has even led to a re-think about products as humble as chocolate milk. Low-fat chocolate milk has given some promising results in terms of accelerated recovery after sports �– leading American dairies to reformulate chocolate milk brands with lower sugar and calories so that it has gone from being a substance once demonised by dietitians to one that is recognised in the US school nutrition programme as a useful way to get dairy nutrition into children, as well as one that enables people to recover after sports with a healthier and more natural beverage that the formulated sports recovery drinks which dominate the recovery market.

2. Ambitious corporate strategiesHershey and Mars are both working hard to turn the health benefits of cocoa into the basis for a business strategy. Both have introduced products �– or collaborated

Cocoa: next super-ingredient at the tipping point?

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with other companies �– to introduce cocoa-flavanol-based products outside their traditional chocolate confectionery markets, in Hershey�’s case through its specialist business Apure Foods, which has collaborated with Honest Tea (see Case Study on page 19) and is also test-marketing its own snack products and recovery drink: last year, the company attempted to leverage the antioxidant-rich qualities of cocoa with a protein-based sports beverage called �“reGen.�” (see Case Study in April 2011 NNB). The brand is currently on test-market in 26 sporting goods stores in Hershey�’s home state of Pennsylvania.

Mars has a similarly focused business unit, Mars Botanicals, and the company has been adventurous in experimenting with new product forms, new ways of delivering benefits and new brands (see case studies in March 2011 NNB). Mars has also formed an alliance with chocolate processing giant Barry Callebaut which will see Barry Callebaut

licensing Mars patents and will sport the Mars Cocoapro �‘bean in hand�’ logo on its Acticoa products in the US and other markets.

Barry Callebaut�’s marketing reach in the ingredients business is truly global and if the company couples this with concept development it can have a huge effect on helping brand owners to see the potential of cocoa as a superfood ingredient.

3. The consumer.Success of course depends on winning the consumer, but here cocoa has a head-start. The health benefits of antioxidants found in cocoa and chocolate have been gathering increasing attention from the media for almost a decade, and this has already raised consumer interest to the point where the confluence of perceived antioxidant benefits (with good taste) has produced double-digit growth in sales of dark chocolate products in many countries.

The media like to report stories about foods that it perceives as �“naturally healthy�” �– and cocoa meets that requirement to perfection. It�’s worth remembering that the surge in sales of blueberries over the last decade was not the result of marketing by the blueberry growers, but because the media carried stories about the growing scientific evidence and reported positively on these �“natural heath benefits�”. This force is now at work in cocoa�’s favour.

Consumers like to hear that things they enjoy are also good for them and that �“natural�” foods are �“naturally healthy�”. So in a sense all these efforts around cocoa are about giving people what they long for �– it is giving people �‘permission�’ to eat chocolate. They are about creating new products with healthy properties, and ingredients in new formats.

Cocoa has the potential to create a new functional category.

Mars has shown an admirable willingness to experiment with new product forms and new product ideas and test-market them �– an attitude to risk and innova-tion which is far, far ahead of that of most major companies.

Cirku�’s fruit- avoured mix-in form allows Mars to offer a concentrated source of avanols �– something that�’s dif cult to achieve with a chocolate bar.

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Europe�’s health claim regulator may not be willing to authorise any health claims for probiotics, but that�’s not stopping sales of probiotic products going from strength to strength �– and fuelling the success of the science-based companies behind the best-researched scientific strains. Whatever sector of the ingredients market you are in, the stories of two of these companies �– Probi and BioGaia, both based in Sweden �– continue to give a clear guide to how to successfully commercialise nutrition science.

Probi and BioGaia are both businesses based on patented science. Probi owns the patents to the probiotic strain L. plantarum 299v and BioGaia owns patents on L. Reuteri, both strains which are among the top-10 best-researched probiotic strains in the world. Probi�’s strain is the active ingredient in the highly successful ProViva probiotic fruit juice brand (see Case Study in NNB August 2010) which is marketed with a digestive health benefit. L. plantarum 299v was last year licensed to Danone, which acquired 50% of the ProViva brand prior to a global roll-out. BioGaia�’s strain is used in a number of infant formula brands.

Both Probi and BioGaia are today very successful, profitable, fast-growing businesses. For example:

Probi: 2010 was Probi�’s best year yet, with sales up by 23% to SEK (Swedish Krone) 80.4 million ($13.26 million/�€8.95 million) and operating profit up 31% to

SEK18.1 million ($2.9 million/�€2 million), an operating profit margin of 22.5%.

BioGaia: In 2010 sales were up 16% to SEK236.0 million ($39.1million/�€26.45 million). Operating profit was up 18% to SEK56.3 million ($9.3 million/�€6.3 million), an impressive 24% profit margin.

Growth rates and profit margins such as these are what every new company �– and its investors �– dream of. But the reality is that they are not achieved quickly or easily. In fact, NNB research into this sector over the years has found an 80% failure rate among science-based businesses �– and the ones that remain take so long to get to the sweet spot that we suspect it would put off most investors.

So what can we learn from the painful road that Probi and BioGaia took from concept to achieving today�’s profitable growth?

The first lesson �– patience about getting to profitability:

�• It�’s astonishing just how often the business plans of science-based health ingredient companies include a target of pro tability within three to ve years. These targets are often there at the insistence of investors �– since most venture capitalists are already thinking about how soon they can sell their shares.

�• The reality is that 10 years would be

an ambitious target. Both BioGaia and Probi took 10 years to turn their rst pro t. In this industry, there are very, very few companies who have done better.

�• Commercialising science is not just about doing the science and getting regulatory approval �– more than that it�’s about nding product formats in which your ingredient makes sense and partners who can take these formats to market under their own brands and create successes.

�• In the whole equation, the part that takes longest is nding partners who have the ability and innovative drive to launch new products with your ingredient.

The second lesson �– a global licensing deal with a corporate giant could be a terrible mistake:

�• Almost every business plan has written into it somewhere an aspiration to secure a single, business-transforming global licensing deal with a global multinational. Many people perceive this as being a less risky, less capital intensive and a faster route to market than (say) partnering with tens of regional players or small entrepreneurial companies. Such a view couldn�’t be more wrong. Ask the management of Probi �– it rst signed a global licensing deal with Danone back in 2003. But Danone did not bring any products to market �– and in 2006

Probi and BioGaia �– a masterclass in the business

of science commercialisation

An advertisement for BioGaia products in Brazil. BioGaia is one of the best examples of how a science company can also become a successful brand marketing company: �“Our standard business model is to deliver our own dietary supplements under the BioGaia brand to local and exclusive distribution partners.�”

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released Probi from the agreement �– before returning in 2010 to sign a new agreement.

�• However, marketing teams don�’t develop new products quickly and new brands based on Probi�’s ingredient are unlikely to show up in the market before the end of 2011 �– a full eight years after Probi rst teamed up with Danone.

�• This is not �– it must be emphasised �– an isolated case. In fact most �“global deals�” between science companies and consumer goods giants end in tears (for the science company). Probi�’s story will have a happy ending, but it underscores that you shouldn�’t count on anything to happen quickly.

�• BioGaia has a global partnership with Nestlé, which uses BioGaia�’s probiotics in infant formula in 19 countries, making an increasing contribution to BioGaia�’s sales and pro ts. But that deal was secured only in 2008 �– some 14 years after the company was founded.

The third lesson �– dietary supplements is where your fast-growth opportunity lies:

�• The regulatory environment is much, much less restrictive than that around foods and beverages (despite the complaints of supplement companies).

�• Claims are easier to make in most jurisdictions, there are many, many more possible channels of distribution available, ranging from internet sales to supermarkets to corner health stores to Amway-type direct sales, that give you much more scope to get your message to the consumer.

�• Moreover the supplements consumer is an active seeker after health �– so if your ingredient delivers the bene t they are looking for they will be willing to experiment and try it out.

�• What�’s more, there are none of the problems of taste and texture that come with trying to formulate an effective dose of an ingredient into a food or beverage.

�• Unlike grocery, which is increasingly concentrated in the hands of a few companies, there are thousands of supplement companies all looking for �“the newest thing�” to help them achieve a point of difference.

�• And nally the pro t margins in supplements can be much, much higher than in foods and beverages.

BioGaia�’s success has come because it has concentrated on supplying the dietary supplement markets. Its child-specific supplements have been successful worldwide and can be found in 60 countries.

After many years of focusing on foods and beverages Probi recently also increased its focus on supplements �– and in 2010 revenue from supplements grew 125% to account for more than 10% of the company�’s sales.

The fourth lesson - you are not just experts in science, you must be experts in markets.

�• Scientists naturally tend to recoil from this idea, but most science companies today also need to be experts in marketing branded consumer foods and supplements. There are two aspects to this.

�• One aspect is that you need to be able to talk to your client�’s marketing departments as equals and help them gure out how to take products to market that will include your ingredient and will also be successful. Don�’t rely on them to do this thinking for you �– many marketers have no time, many have no skills or ideas.

�• The good news is that scientists who learn about marketing usually make much, much better marketers than the people who have spent their entire careers in the marketing department, where �– as the high failure rate of most

new products attests �– they have little experience of applying rigorous thinking to business problems.

�• The other aspect is that sometimes you can save time by simply going direct to the consumer with your own branded products. For BioGaia this has been a central plank of its success.

BioGaia is one of the best examples of how a science company can also become a successful brand marketing company. As the company says of the strategy which has created its success: �“Our standard business model is to deliver our own dietary supplements under the BioGaia brand to local and exclusive distribution partners. Our network of partners, which now cover more than 60 countries, have sales forces that convince doctors and other healthcare professionals to recommend the products.�”

BioGaia is a company that focuses on building its own consumer brand in the supplement category working with local distribution partners.

Probi has also started to develop its own branded products, successfully launching supplements in Sweden under the ProbiMage and ProbiFrisk brands in cooperation with Bringwell, a supplement company, a move Michael Oredsson, CEO of Probi, has described as one of �“the most important reasons for 2010 being such a successful year�”.

Got all that? Good! Class dismissed!

Probi has also started to develop its own branded products, successfully launching supplements in Sweden under the ProbiMage and ProbiFrisk brands in cooperation with Bringwell, a supplement company, a move Michael Oredsson, CEO of Probi, has described as one of �“the most important reasons for 2010 being such a successful year�”.

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C O N F E C T I O N E RY C A S E S T U D Y

Three California women have turned their entrepreneurial dream �– creating �“chocolate with benefits�” �– into a new line of artisanal truffles called CocoXan Chocolates that promise to deliver doses of nutrients aimed at some of the most prominent health concerns of women.

Each of the 13g, European-style truffles is designed to deliver a specific nutritional or health benefit:

�• CocoBrain�• CocoHeart�• CocoPreggers�• CocoPMS�• CocoWell, for overall wellness.

Two of the founders of California-based Xan Confections are a mother-and-daughter team who already owned better-for-you startups when they joined to start Xan and produce all-natural �“lifestyle�” chocolates. The third founder is a chocolatier. Each of them harboured a passion for helping other women address particularly female health and wellness concerns in a way that also would indulge a love for chocolate, and they expressed all of that in the product lineup for CocoXan.

�“We felt that anything we could do that would fall a little bit outside the line of plain chocolate would work for consumers,�” Kerry Johnson Anthony, Xan�’s president, told New Nutrition Business. �“And it would work for Xan because we already have vegan- and gluten-free chocolates. So it made sense to have �‘chocolates with benefits�’.�”

WHAT WOULD WOMEN WANT?

But what kinds of benefits? �“We thought, �‘What would we want to buy? What are our particular pains?�” Johnson Anthony said. Her mother and business partner, Susan Johnson, liked the idea of a brain-enhancing chocolate because she works closely with an Alzheimer�’s organization. Xan chocolatier Tracy Downey felt strongly about creating a heart-health chocolate.

And Johnson Anthony herself �– with three pregnancies in the last three years �– favoured a truffle aimed at prenatal health. �“You have to take your vitamins, but they are

horse pills,�” she said. �“And pregnant women always talk a lot about craving chocolate. So we thought, why not combine things? We�’re going to eat chocolate anyway, so why not give it an extra benefit?�”

The entrepreneurial part came easy. The Johnson women already had established Susan�’s Healthy Gourmet, which has been delivering healthy, portion-controlled fresh meals to clients in southern California for 15 years; and LifeSpring Nutrition, which produces healthful frozen meals.

So they and Downey also understood some important things about the science of nutrition. The basic proprietary vitamin blend found in some CocoXan products is the same as in some of the meals produced by Susan�’s Healthy Gourmet and LifeSpring. And Xan�’s previous product lines included Saintly Sins, made with fruit and organic blue agave nectar, and non-dairy Jewel Caramels.

Once they began working on CocoXan in 2009, the women quickly finalized their initial five-product lineup of dark-chocolate truffles:

CocoPreggers: This was the most obvious one. The candy contains DHA omega-3 fatty acids �– specifically, Life�’sDHA by Martek Biosciences �– and folic acid, which CocoXan notes are �“essential nutrients that may reduce a woman�’s risk of having a child

with a brain or spinal-cord defect�”. But, Johnson Anthony said, �“We can�’t promise that your baby isn�’t going to have brain issues.�”

The package carries the slogan, �“Happy Mommy = Healthy Baby�”. �“We address the things that people think they have to give up when they�’re pregnant,�” she said. �“A miserable mom can affect a developing fetus. So if you have a happier mom, that does lead to a healthier baby.�”

Interestingly, CocoPreggers proved the biggest formulation challenge to Downey. The women wanted to make sure there was enough omega-3 (50mg per 13g chocolate) to impress pregnant women who are obsessive nutrition-fact checkers. �“But DHA is difficult to work with,�” Johnson Anthony said. �“It keeps getting diluted, and it�’s volatile, and you have to test it time and time again. But we got it to the point where we could promise the daily recommended amounts of DHA and folic acid were in two chocolates.�”

CocoPMS: Using the decidedly eye-catching slogan, �“Un-Bitch Yourself �”, CocoPMS relies on antioxidant-rich chasteberry and bilberry ingredients that Xan says �“have been used for thousands of years for their anti-inflammatory properties to alleviate PMS symptoms�”. �“For me, humour

Chocolate from heart to pregnancyDelivering health benefits through confectionery is an ambition of many companies, but it�’s an area in which few have had any success. But three serial food entrepreneurs are setting out to change that with a range of chocolate for women. By DALE BUSS.

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was important,�” Johnson Anthony said. �“I wanted to have a message that would make me want to pick up the product myself. Just because you�’re healthy doesn�’t mean you have to be boring or ugly or serious or medicinal, which is a mistake a lot of companies make.�”

CocoBrain: This product also relies on Life�’sDHA and folic acid as well as a proprietary blend of vitamins A, C, D3 and E. Xan promotes omega-3 as supporting �“memory function�” and uses the slogan �“Stimulate Your Grey Matter�” for this product. This product also challenged Downey�’s skills because again it was difficult to mask the omega-3 adequately. �“We tried a mint flavour, but you could taste something through it,�” Johnson Anthony said. So Xan switched to an orange masking flavour for CocoBrain, which proved effective.

CocoHeart: In addition to Downey�’s personal interest in a heart-health truffle, Susan Johnson�’s mother had died of a heart attack, and Johnson takes CoQ10 for that reason. CocoHeart, which Xan says keeps �“your ticker tocking�”, includes �“the next generation of CoQ10, Kaneka QH (Ubiquinol) that is a pre-converted form of CoQ10 for immediate utilization by the body�”. The company notes that CoQ10 is �“the most powerful known lipid-soluble antioxidant�” and �“helps maintain and promote a healthy heart.�” Johnson said that �“CoQ10 is difficult to get and ingest, so we felt we should have a chocolate for that.�”

CocoWell: Promoted as an overall wellness treat, it relies on Wellmune WGP, which Xan says is a natural ingredient produced by BioThera that is �“known to activate key immune responses to help combat daily health challenges�”. Wellness was a natural positioning for a variety of CocoXan, Johnson Anthony said. �“We figured among other things, it could be sold

in spas. And everyone is looking at boosting their immune system.�”

In fact, Johnson Anthony said, the women concluded that one of the strengths of the CocoXan lineup was that �“each of these products can be its own market, but you can put the five of them together and that makes a market too.�”

As for further variants, coming up with CocoEnergy or something like that will be a challenge, Johnson Anthony said, in part because there are so many products already in the marketplace �– ranging from beverages to nutrition bars �– that purport to bring energy. �“And you can�’t be putting anything in there that isn�’t good for you,�” she said.

A CocoXan variety aimed at vision health also seems to be a logical introduction. Although, because such a product probably would rely on a healthy dose of Life�’sDHA, Xan �“must be careful about promising what we can�’t deliver�”, said Johnson Anthony.

A VITAMIN OR A CHOCOLATE?

Xan Confections already has impressive retail distribution across the entire US for its existing confectionery ranges �– regular indulgent products under brands such as Xan Signature Collection, Ladybug Truffles and its low-glycemic index, gluten-free and vegan range Saintly Sins. Its established distribution puts the company in a much stronger position to make CocoXan work than the many start-up companies which have entered the healthy confectionery arena, but with such a new and clearly defined health concept it isn�’t clear exactly how stores will merchandise the CocoXan line, which was only unveiled at a trade show in January.

Many branches of Whole Foods �– by far America�’s biggest natural products supermarket �– carry Xan products and

Johnson Anthony said that they�’re working with store managers about where to position CocoXan at retail.

�“What are they? A vitamin or a chocolate?�” is one issue, she explained. Another question is whether each CocoXan product should be merchandised with other products with particular benefits, such as for pregnancy or for heart health, or whether the entire CocoXan line should have its own integral space.

CocoXan is moderately expensive for small truffles. The company is offering these truffles in 1.38oz (40g) 3-packs that typically retail for under $5 (�€3.41), 3.21oz (90g) 7-packs that usually retail for under $20 (�€13.65), and 6.5oz (185g) 14-packs that typically sell for under $30 (�€20.48). CocoXan also is available in 30-piece bags.

Johnson Anthony said that CocoXan doesn�’t get much criticism about combining fatty chocolate with nutritional benefits. �“Our chocolates are only about 40 calories apiece, and they are dark chocolate,�” she said. CocoXan doesn�’t specifically tie any of its messaging to the promoted health benefits of dark chocolate, but Johnson Anthony believes its customers understand the connection.

And, she said unapologetically, people are healthier if they�’re happy, and eating chocolate generally makes people happy.

At the same time, CocoXan is careful not to make specific medical claims or promises for its products; that is one reason, for instance, that the women have rejected the idea of a CocoXan variety aimed at the symptoms of menopause. �“It�’s difficult,�” Johnson Anthony said. �“We�’re not doctors, not a pharmaceutical company, not even a vitamin company. We�’re a chocolate, and we add something to it for you. Our intention is you should be able to eat chocolate and not feel guilty about it.�”

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S T R AT E G Y C A S E S T U D Y

After more than a decade steadily growing his fair trade and organic ready-to-drink tea brand Honest Tea, innovator and entrepreneur Seth Goldman is leading his company into a place where no organic beverage brand has gone before, a future as part of Coca-Cola as the newest acquisition of Coke�’s Venturing and Emerging Brands unit. Founded in 1998, Honest Tea�’s sales have more than tripled �— to $72 million (�€49 million) in 2010 �— since Coca-Cola took a 40% stake in the company in 2008.

At the same time, Goldman is taking the company that he started 12 years ago further afield in new products than ever before, including a cocoa-based better-for-you drink called CocoaNova developed jointly with chocolate giant Hershey.

DISTRIBUTION AND INNOVATION

To Goldman, the two areas of emphasis are opposite sides of the same coin for his company, the best-known organic ready-to-serve tea brand in the North American market.

�“Most of what we�’re doing right now is focused on expanding distribution,�” Goldman told New Nutrition Business �– especially via Honest Tea�’s new relationship essentially as a unit of behemoth Coke. �“But we�’re absolutely continuing to innovate with new products as well.�”

Honest CocoaNova may be Goldman�’s biggest brand stretch so far. CocoaNova is a brewed cacao infusion that contains 50 calories and 13g of sugar in a 10.1oz (300ml) bottle as well as 50mg of theobromine (see box), which occurs naturally in cocoa and dark chocolate and has well-established cardiovascular effects (although the product carries no claims). �“It�’s really a chocolate drink,�” Goldman explained.

USDA Certified Organic and Fair Trade Certified cacao beans, the main ingredient in chocolate, are roasted and ground into a

cocoa powder, which is then brewed through a patent-pending process to create Honest CocoaNova. Honest CocoaNova labels display the CocoaSource mark �– which denotes the antioxidant power naturally found in cocoa �– developed and licensed by Apure Foods, a company owned by Hershey.

COCOANOVA PROCESS A LONG TIME BREWING

Launched in April 2010, the Apure Foods Company is focused on creating products that provide positive nutrition from harnessing the antioxidant power of natural cocoa.Apure Food�’s products include ReGen, a high-protein recovery beverage (see NNB April 2010), and Eat. Think. Smile, a line of cocoa-based snacks.

Honest Tea worked out the CocoaNova-brewing process with Hershey in a partnership that predated the company�’s relationship with Coca-Cola. �“We�’ve been working on this with Hershey for years; it took a while to get it to market,�” Goldman said. �“But Coke�’s been supportive of it. It�’s consistent with the Honest Tea history of

innovation.�”CocoaNova is initially going into

distribution in Mint Cacao, Mocha Cacao and Cherry Cacao flavours at a suggested retail price of $1.99 (�€1.35).

�“To the extent that consumers have a positive health association with dark chocolate, that�’s where this product delivers. We get the cocoa flavanols by taking the cacao pod, crushing it, and taking out the cocoa butter, which is fatty, and then we brew it like tea,�” explains Goldman.

�“It has the cocoa flavour to it but it doesn�’t have the fat. It�’s got a nice taste to it and we believe it will do really well in the marketplace. It has healthy properties and is low in calories. If you think about the ingredients, everyone has tasted them, but not in this form. It�’s really a new functional category.�”

CRACKING BRANDING CHALLENGES

Besides formulation, Honest Tea faced challenges in terms of branding and identifying CocoaNova and explaining it to a consumer constituency that was accustomed

Cocoa antioxidants plus Coca-Cola future for Honest Tea

The recent acquisition of market-leading organic drink brand Honest Tea by Coca-Cola�’s Venturing and Emerging Brands unit has grabbed headlines. But what is even more interesting is Honest Tea�’s newest launch, a cocoa-based high-antioxidant drink made using a patent-pending process developed together with chocolate giant Hershey. Teamed with Coca-Cola�’s distribution muscle, it takes the Honest brand in a new direction. By DALE BUSS.

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only to Honest Tea iced-tea products and Honest Ade fruit drinks.

�“We had to come up with a separate name for it so people don�’t think it�’s tea,�” Goldman said. �“And it�’s not a cocoa drink like they�’re used to. It is cocoa as they�’ve never known it.�” CocoaNova is good �“for hydration, and for functionality, and if you need a cocoa fix.�”

Goldman said that retail buyers responded strongly positively to CocoaNova as the company began moving the new product out to stores in April and that �“consumers at some [exhibitions] just flipped�” over the product.

STEVIA “SURPRISINGLY GOOD”

Also in April, Honest Tea launched a stevia-sweetened, zero-calorie lemonade. �“Lemonade with no sugar is tough to make,�” he said. But partly because of general consumer demand and partly because of increasing prohibitions against sugar-sweetened beverages in vending-machine systems across the United States, Honest Tea turned to stevia as the basis of the new product.

�“I don�’t want to say that it�’s surprisingly good, but using stevia as a sweetener is challenging because it�’s got a citrusy note to it,�” Goldman said. �“But it�’s zero-calorie and it�’s organic.�”

At the same time, Honest Tea is launching a new variety, Heavenly Lemon Tulsi Tea, in the natural-foods channel. It�’s based on a formula that is known in India, Goldman said, as �“heavenly basil.�”

HONEST STRIVES TO KEEP INDEPENDENCE UNDER COKE DEAL

Of course, getting swallowed by Coca-Cola was an even bigger move for Honest Tea than anything it is doing with new products.

Coca-Cola first invested in Honest Tea three years ago as it ramped up its Venturing and Emerging Brands unit. Actually, the move more seemed to fit the personality of Coke�’s arch-rival, PepsiCo, which obviously also has been trying to build its portfolio of better-for-you beverages via acquisition and internal generation of new brands.

�“There�’s no question, if you look at Honest Tea, that it represents something that looks more like it would be a Pepsi deal than a Coke deal,�” said Tom Pirko, president of Bevmark, a Santa Ynez, Calif.-based consulting firm that has counted both giants among its clients. �“It�’s the kind of company

that fits [PepsiCo CEO] Indra Nooyi�’s mantra.�”

Nevertheless, at this point the Coke group also has acquired stakes in other up-and-coming beverage brands including Zico, the coconut-water company, and has launched its own brands.

COKE TRIES TO DO BETTER WITH NURTURING UNIT

The formation of the unit largely was a response to Coke�’s earlier failure to effectively identify, evaluate, invest in and nurture startups that were helping redefine the beverage industry away from the soft-drink segment that Coca-Cola has dominated for so long but which has been declining. In 2007, for example, Coke bought a 23% stake in trendy Los Angeles-based acai-juice startup Bossa Nova.

�“Bossa Nova should have been a great deal,�” said Lloyd Greif, president of Greif & Co., a Los Angeles-based investment bank that brokered Coke�’s initial investment in

WHAT IS THEOBROMINE?

• Theobromine is found in cocoa and chocolate, as well as in a number of other foods, including the leaves of the tea plant, the cola nut and the guarana berry. It is in the same class of chemical compounds as coffee but theobromine has a lesser impact on the human nervous system than caffeine.

• Cocoa powder can vary in the amount of theobromine, from 2%

to 10%. Following its discovery in the late 19th century, theobromine was fi rst put to medical use as a treatment for circulatory problems including arteriosclerosis and hypertension.

• In modern medicine theobromine is used as a vasodilator (a blood vessel widener) and heart stimulant.

CHART 1: HONEST TEA SALES IN MASS MARKET

2006 2007 2008 2009 2010 52 Weeks Ending Mar 20, 2011

$5,397,738

$6,484,025

$8,878,779

$10,435,940

$14,988,490

$16,463,120

0

2

4

6

8

10

12

14

16

18

Sales in $

millions

The Honest Tea brand had retail sales of $72 million (�€49 millon) in 2010. However this was largely in natural product stores and convenience.

This chart shows progression of sales in the mass market (supermarkets, drugstores but excluding Wal-Mart) as measured by SymphonyIRI supermarket scanning data.

Honest Tea has a 1.23% share of America’s $1.35bn RTD tea market.

Source: Infoscan Reviews, SymphonyIRI Group - the leading global provider of enterprise market information solutions

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Bossa Nova. �“But it didn�’t work out because Coke didn�’t have the experience to know what to do with it once they did a deal. It should have been growing hand-over-fist, but [Bossa Nova] was only a stepchild.�”

Goldman got some unique help in figuring out his side of the escalating relationship with Coke. Fellow organic-food pioneer Gary Hirshberg, who built the Stonyfield Farm yogurt brand, bought a small stake in Honest Tea 10 years ago, led Stonyfield itself to invest in Honest Tea, and then joined the company�’s board.

At about the same time, Hirshberg and Stonyfield were coming under the auspices of a huge corporation themselves, as Groupe Danone acquired 40% of Londonderry, N.H.-based Stonyfield and then 80% a few years ago.

A DIFFERENT WAY TO ACQUIRE A COMPANY

�“As we went through this with Coke,�” Goldman said, Hirshberg �“was advising me to keep the company as independent as possible. And when we met in Atlanta with Coke, we sought a transaction that had a lot of input from Gary though it wasn�’t completely modeled after�” Danone�’s relationship with Stonyfield Farm.

�“Where [Hirshberg] was especially helpful was in getting the Coke people to appreciate that there was a different way to [acquire a company] than they had used before,�” Goldman explained. �“Their model had been just to buy it. But there had been many times when big companies have invested in small companies and didn�’t yield the kind of results that either side expected.�”

Goldman�’s biggest emphasis was on being able to continue to run Honest Tea as he would have pre-Coke but, obviously, with many more resources at his disposal. The new products are part of that approach. But while Goldman retains a small stake in Honest Tea and will continue to run it, part of the deal with Coke was that other Honest Tea employees no longer have an ownership share. It was part of the balancing act that Goldman is still trying to retain as he counts on Coca-Cola to help Honest Tea grow even further.

DISTRIBUTION CLOUT WELCOME

The biggest boon to Honest Tea from Coke, of course, will be in distribution, especially as Coca-Cola trucks begin delivering Honest

Tea to more mainstream supermarkets and putting its sub-brands and products in the kinds of prominent merchandising spaces that only such a giant can command.

�“We just can�’t market to ourselves, our consumers, anymore,�” Goldman told Advertising Age. �“We need to stay consistent and authentic with them, but we need to expand. Coke obviously wouldn�’t have done the deal and said, �‘Let�’s keep them [only] in the natural channel.�’�”

Goldman expects big marketing contributions from Coke as well. �“We haven�’t built the Honest Tea brand by spending millions of dollars,�” he said. �“But now a brand campaign with millions of dollars could go somewhere.�”

Now that Honest Tea is fully in the Coke stable, Goldman told AdAge, �“Coca-Cola sales people can now fully represent our brand. That changes ... where we get to have opportunities, whether it�’s a food-service account or a retail account.�” Simultaneously, he told New Nutrition Business, Coke will be counting on Honest Tea and its distribution network and retailer relationships to spread the footprint of other better-for-you beverages produced and marketed by Coca-Cola.

WILL COKE ADD MUCH TO HONEST TEA?

Still, while acknowledging that distribution and other �“business issues are straightforward�” for Coke with Honest Tea, Pirko was skeptical that Coca-Cola would be able to help its new acquisition much with sharpening its brand.

�“Yes, there�’s a lot you can grab onto and market Honest Tea closer to mainstream Coke brands,�” Pirko said. �“But I don�’t know how much you can turn Honest Tea into a faux soft drink and grow them that way. A lot depends on how much money you plow into marketing efforts. But you think about whether Coke will suddenly become more Pepsi- and Nestlé-like and have those kinds of values that are contrary to the conservative values of many Coke drinkers.�”

All that is for the future, of course. In the meantime, Goldman said recently, he remains just a bit overwhelmed by the idea that Coke has bought his little company.

�“At a media event recently, there was a vending machine with Coke products on one side and Honest Tea products on the other side,�” Goldman recalled. �“When I pushed a button and an Honest Tea bottle came out, I was just wowed.�”

S T R AT E G Y C A S E S T U D Y

ABOUT HONEST TEA

Honest Tea – founded in Bethesda, Maryland in 1998 – is America’s top-selling organic bottled tea company with retail sales of $72 million (�€49 million) in 2010.

Honest Tea describes its mission as making great-tasting, healthy organic beverages with less sugar and fewer calories than most bottled beverages.

Coca-Cola bought the remaining 60% of Honest Tea this year, after purchasing 40% in 2008 for $43 million (�€29 million). Founder Seth Goldman will continue to run the company on a day-to-day basis.

Honest Tea’s product lines include: • Honest Tea ready-to-drink bottled teas in glass and PET #1 bottles• Honest Ade organic thirst quenchers• Honest Kids drink pouches

All varieties are USDA-certified organic and by the end of March 2011 all teas became Fair Trade Certified.

Honest Tea has been recognized for its business practices:• Named one of The Better World Shopping Guide’s “Ten Best Companies on the

Planet based on their overall social and environmental record” • Named one of PlanetGreen.com’s “Top 7 Green Corporations of 2010” • It received Greenopia.com’s coveted 4-Leaf Rating as “the greenest beverage

company” for the third year in a row• It was recently ranked by The Huffington Post as one of the leading “8

Revolutionary Socially Responsible Companies.”

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When the US experienced a massive surge in sales of energy shots a few years ago, it was only a matter of time before suppliers turned their gaze towards the European market. There, just as in America, energy drinks had already proven to be a huge hit. So surely it would be a similar story with energy shots?

This was certainly the expectation when, in 2009, the European market witnessed a flood of new energy shots coming on to the market �– as documented in separate articles in New Nutrition Business (see the May 2009 and November 2009 editions).

But the hoped-for rich pickings are yet to materialise. In the event, sales of energy shots in Europe have been significantly less impressive than in the US, in spite of the launch of a host of products from major brands, such as Coca Cola, GSK and Red Bull, as well as several small independent players.

Data from Canadean, the drinks sector market research consultancy, illustrates the divide. The company has provisionally calculated that the Western European market for energy shots was 2.1 million litres in 2010 �– compared with 33.3 million litres in the US.

Among those hoping for great things back in 2009 was Powershot, a pioneer in Europe�’s energy shots category. Its 10ml all-natural, ginseng-based shot, also called Powershot, was launched in Denmark in 2005 and quickly achieved sales of around $3.3 million/�€2.3 million a year �– admirable in a country of just 5.5 million people. The product promised a natural source of sustained energy, in contrast to the increasingly popular energy drinks which, the company claimed, created an energy spike followed by a crash.

With domestic success behind it, Powershot decided to roll the brand out across Europe. To pave the way, it moved its sales office to the UK, the market it believed

would prove to be the frontier for the growth of energy shots across the continent.

Early on, Powershot achieved listings in supermarket operator Waitrose and health food chain Holland & Barrett, and the future looked promising. But in the event sales have been relatively modest, forcing Powershot to reassess its views on the potential of Europe�’s energy shots market. In the UK, for example, the company says sales of the 10ml Powershot product are still under £1 million ($1.7 million/�€1.1 million).

NPD SHIFTS FROM SHOTS

And now, two years after launching this product in the UK, the company is shifting its NPD away from shots as it seeks to make in-roads with Little Miracles, a range of 330ml organic energy beverages containing a variety of botanicals and aimed at women.

Little Miracles comes in three varieties:�• Black tea, ginseng, peach and acai�• White tea, ginseng, cherry and acai�• Green tea, ginseng, pomegranate and

açai

It is Powershot�’s experience in the shots market that has helped shape this switch in emphasis. Sales director Ray Rohrbach says: �“Very early on we probably thought, incorrectly, that they [Powershot shots] could be totally mainstream �– that you�’d find them in your local Spar shop, in your local garage forecourt, as well as Tesco and Sainsbury�’s and all the health food shops. But that hasn�’t been the case.�”

Why? �“Because, overall, people�’s perceptions of a shot in the UK haven�’t grown in the way that I think a lot of people forecast, ie taking on from where the US has led us to. In the UK it hasn�’t done that. It�’s something cultural, that hasn�’t quite grabbed people.�”

Rohrbach admits the entrance of major brands into the UK�’s energy shots market soon after Powershot launched there made life harder. With its all-natural ingredients positioning, he claims, Powershot 10ml was unique �– but he says it wasn�’t easy to make retailers understand this.

�“Buyers were not able to differentiate between different shots, ours being the only natural one,�” he says. �“Buyers weren�’t initially able to understand that, or weren�’t willing to understand that. When you�’ve got the likes of Red Bull, Coca Cola and Glaxo coming in, there�’s heavy pressure for them to expand their range and just take it on face value without drilling down into the details.�”

There was a certain amount of aversion to risk among buyers, he says. �“If they make a mistake and they�’ve taken on a big brand it won�’t hit them so hard. I always maintain that no one�’s going to get blamed that much if they�’ve taken a Coca Cola brand on and it hasn�’t really worked.�”

Having launched its 10ml shot in the UK, Powershot initially pledged to stretch the Powershot brand to develop a 330ml energy beverage and a 60ml fruit juice-based energy shot, the latter to offer an alternative to the

Powershot puts faith in Little Miracles

Having made a success of the Danish market, energy shots brand Powershot next turned its attention to the UK market. But the company soon encountered challenges �– one of which was that retail buyers didn�’t understand the consumer appeal of a brand with a strong all-natural ingredients positioning, preferring to give shelf space to big brands like Red Bull. It�’s a Europe-wide problem �– and as a result energy shots have not taken off to the same extent as the US. Undeterred, Powershot has re-thought its strategy. By RICHARD CLARKE.

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rather medicinal flavour characteristics of the 10ml shot. The 60ml shot has never come to pass �– and Rohrbach admits this is because of the way the shots category has performed.

�“We still haven�’t abandoned the idea [of a 60ml shot] but going back to what I said earlier in terms of the acceptance of shots [by consumers], I think it�’s wise for us to see what happens.�”

PACKAGING, BRANDING REVAMP

However, Powershot kept the other half of its promise and, 18 months ago, launched a range of three Powershot branded 330ml organic energy beverages expressly targeting female consumers, as opposed to what Rohrbach describes as �“standard 18-35 Red Bull drinkers who are male�”.

As with the 10ml Powershot, the beverages won listings in Waitrose and Holland & Barrett. In a bid to enhance the appeal of the brand in the eyes of women, Rohrbach explains that the company sponsored the Miss Great Britain beauty contest and the Women of Inspiration Awards. But sales, he says, have remained at around the £1 million ($1.7 million/�€1.1 million) mark. And Powershot now admits it did not get the branding of the range quite right.

Rohrbach says the Powershot brand name was �“very masculine�” and not right for female audiences, describing it as a �“misnomer�”.

�“The differentiation wasn�’t clear,�” he says, which deterred some retailers. �“They said: yes, you have the differentiation with the formula, and the way you want to position it, but it�’s purely the packaging that�’s not sending out the right signals.�”

As a result Powershot has now relaunched the concept under the aforementioned Little Miracles brand. While the recipes of the beverages in the range are the same as before, everything else is unrecognizable from the original packaging design.

LITTLE MIRACLES WINS OVER BUYERS

Although Little Miracles is not on shelves yet, it soon will be, and Rohrbach says Waitrose and Holland & Barrett have already said they will be retaining the product with its new look. Even better for the company, supermarket chain Morrisons has agreed to list Little Miracles in 305 of its stores. �“We couldn�’t get anywhere near them with Powershot,�” he says. �“But they thought Little Miracles really does tick all the boxes, including the branding and packaging.�”

Little Miracles will be rolled out across Europe, too, and Rohrbach says that it is intended that the brand will act as an �“umbrella�” for a line of functional drinks offering other benefits, such as improved digestive health. These will be �“new pillars under Little Miracles�”, he says, adding: �“We have a fantastic team of nutritional bio-scientists in Denmark creating other functional beverages as we speak.�”

The launch of Little Miracles doesn�’t signify that Powershot is calling time on its 10ml Powershot product, which is now available in three varieties �– the original ginseng, a gingko biloba variety, and a shot offering a blend of both of these.

Rohrbach is anticipating further growth for the 10ml Powershot in the UK. It still has its original listings in Waitrose and Holland & Barrett �– and has recently won a further

contract to supply Tesco, the UK�’s largest retailer. As such, Rohrbach says sales will �“easily�” exceed £1 million in 2011.

Powershot 10ml has also been launched in mainland Europe. The company was unable to supply NNB with sales figures, but Rohrbach said that sales in Denmark had held firm, and revealed Iceland had proven to be a particularly strong market. �“It�’s gone down a storm in Iceland,�” he says. �“It�’s got great penetration there; amazing actually.�”

Rohrbach even holds out hope that shots may yet have their day in Europe, arguing that they took time to flourish even in the US. He has a point �– according to Canadean, volume sales in 2008 were as low as 2.7 million litres before they took off a year later.

The unanswere d question is, therefore: are energy shots in Europe a slow burner, or are they destined never to ignite?

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According to checkout scanning data from SymphonyIRI �– data which includes all supermarkets except Wal-Mart, as well as drugstores, convenience stores and gas stations �– the US energy drink category grew by 10.94% in 2010 to a total retail value of $5.815 billion (�€3.919 billion).

What is even more striking is how, after 20 years, the market leader �– Red Bull �– not only continues to be the powerhouse of the category�’s growth but to outpace the category. Red Bull�’s sales grew by 14% in 2010 and it slightly increased its market share, to 38%.

The number two brand �– Monster from Hansen Natural with a 29% market share �– produced 16% growth. But Monster has to sell a much greater number of product variants than Red Bull in order to achieve that growth �– and not all of them were successful (with some actually losing sales markedly). Monster�’s logistical and production costs will be higher than those of its larger rival.

Not only that, but Red Bull�’s sales value is so much bigger �– measured in dollar terms �– than that of Monster that Monster will actually have to lift its growth rate to 20% per annum, every single year, if it is to have any hope of catching up with Red Bull by 2015. That�’s a probably unachievable stretch for any company even in a market like this one so Red Bull is likely to retain the top position for many years to come.

POWER BRANDS DOMINATE

What�’s also interesting is, as Chart 1 shows, that despite the launch of hundreds of varieties of energy drinks over the years, the market is now concentrated in the hands of a small number of brands (just eight have a 92% market share) and becoming more concentrated all the time as a smaller number of brands de ne and drive the market.

To illustrate that, note that the energy

drink market, when measured in straight dollar terms, increased by $573 million (�€386 million) in 2010 of which:

�• Red Bull generated $275 million (�€185 million)

�• Monster accounted for $240 million (�€162 million)

�• Rockstar (the 3rd biggest brand with a 10% market share) grew 6%, generating an extra $32 million (�€22 million)

NEW CHALLENGER

A relatively new entrant �– Starbucks Doubleshot �– turned in a better performance than Rockstar. The debut in the category of this major brand with a product based on coffee �– a logical format for a dose of stimulation from caffeine �– produces the possibility of a new challenger among top brands. Doubleshot has a just 3% market share, worth $180 million (�€121 million), but its sales grew by 24% in 2010.

The energy category also illustrates how �– contrary to a widely-held belief �– being �“a big company�” with big distribution muscle isn�’t always an advantage. PepsiCo-owned AMP, for example, which has a 4% market share,

saw its sales decline slightly in 2010, after years of lacklustre performance. Coca-Cola�’s NOS brand is slightly smaller and has also been a consistently poor performer.

Both companies are paying the price for bringing to market me-too brands with no real point of difference other than some super cial aspects of brand strategy. The mediocre performance shows how, despite advantages in distribution and marketing spend, a brand cannot succeed unless it creates true point of difference.

Starbucks may be late to market but it at least has a brand with an appeal beyond the traditional energy drink demographic (males aged 18-25) and a �“different�” carrier for the bene t.

“EXPERT BRAND” POWERS CATEGORY

The continued success of Red Bull is a testament to the effectiveness of the strategy of being the �“expert brand�” in the category �– the brand that consumers see as being the most credible provider of the bene t on offer.

Red Bull has established itself as the expert brand by consistently focusing �– year after year �– on its single eponymous energy drink and the message that it �“gives you wings�”. It has not tweaked its brand position and, perhaps even more importantly, but for a single weak foray into upscale colas, it has resisted the temptation to extend its brand in all directions.

Brand extension is beloved of large companies and many senior executives believe that all brands could and should be extended as much as possible. However, as various studies from Symphony IRI to Harvard Business School have illustrated time and again, brand extension in food and beverage is very rarely as successful as the original parent brand and usually produces disappointing results.

Red Bull is also earning the reward for being

Energy drinks sustain impressive performanceThe unstoppable rise of the energy drink category continues to astonish. That a market that is (in the West at least) now twenty years old can continue to produce 10% annual growth �– against the background of a stagnant economy and despite premium pricing �– is scarcely believable. So how is it possible? And what can we all learn from the phenomenon?

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the new category creator �– the brand that gave birth to the energy drink category in the West and has de ned its shape and direction. All other brands are inevitably me-toos for whom it is dif cult �– even impossible �– to establish a meaningful point of difference, a task made all the harder by the fact that most companies are so risk-averse that they choose me-too over innovation every time. It�’s no accident that the only other brand which can be said to compare to Red Bull is 5-Hour Energy, which is also a new category creator brand, giving birth to the 100ml energy shots category (not included in our data here). It too, provided an innovative product that no corporate giant dared to and its reward is a $700 million (�€471 million) business.

“FEEL THE BENEFIT” IS KEY

The reason that the energy drink category is the biggest part of functional foods worldwide, with probiotics for digestive health, and the reason that these two categories have continued to grow healthily despite the economic downturn, is that they deliver a quick shot of stimulation that you can immediately feel. For consumers, the fact that a product gives them a bene t they can feel is one of the most compelling reasons to buy a product �– especially during economic hard times.

PREMIUM PRICING NO BARRIER TO SUCCESS

A �“feel the bene t�” advantage also makes people less price-sensitive. And in fact a signi cant element in the energy drinks success story is that it is a super-premium price market. Chart 2 compares the pricing of the leading energy drink brands in the US, using a price per litre equivalent, with each other and with the world�’s best-known �“regular�” refreshment drink, Coca-Cola.

Red Bull sits at a huge premium to all its competitors �– yet it outperforms them. It was rst to market, it is the expert brand, it gives you an effect you can feel, it has been consistently marketed �– all elements that support its continued super-premium pricing.

Even the most price-competitive energy drinks are at a huge premium to regular drinks like Coca-Cola, which have no comparable �“feel the bene t�” advantage.

CHART 1: US ENERGY DRINK MARKET SHARES

Total energy drink sales in 2010 in supermarkets, drugstores, gas/C-stores and mass market retailers, but excluding Wal-Mart

SalesUS $

(million)

0

.5

1.0

1.5

2.0

2.5

3.0

$2,2

39,4

57,0

00

$1,7

29,4

78,0

80

$601

,257

,380

$236

,550

,340

$212

,882

,400

$180

,321

,000

$153

,261

,490

$37,

901,

760

Red Bull Monster(Hansen Natural)

Rockstar AMP(PepsiCo)

NOS(High

Perfromance Beverage)

Doubleshot(Nth American

Coffee)

Full Throttle(Coca Cola)

SoBe(Sth Beach

Beverage Kraft)

Market share 38.51% 29.74% 10.34% 4.07% 3.66% 3.10% 2.64% 0.65%

Source: Infoscan Reviews, SymphonyIRI Group

CHART 2: US ENERGY DRINK PRICING – THE BIGGEST BRAND EARNS THE HIGHEST PRICE

Prices shown converted to a $ price per litre equivalent, for easier comparison. The price of regular Coca-Cola is also shown to illustrate the huge premium energy drinks command compared to “regular” soft drinks.

SalesUS $

0

1

2

3

4

5

6

7

8

9

Red Bull($2.20 per 250ml can)

Coca Cola($0.45 per 12oz can)

Monster($2.59 per 16oz can)

Rockstar($2.59 per 16oz can)

AMP($2.59 per 16oz can)

NOS($3.29 per

22oz)

Doubleshot($2.59 per 15oz can)

Full Throttle($2 per

16oz can)

SoBe($2.0 per

250ml can)

Source: New Nutrition Business price survey in branches of Safeway in southern California and other channels.

$8.80

$1.28

$5.50 $5.50 $5.50$5.06

$5.84

$4.22

$8.00

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N E W P R O D U C T S

Country Company Brand & Product DescriptionPART 1: NORTH AMERICA �– FOODS & BEVERAGES

All new product information is sourced exclusively from Mintel�’s GNPD (Global New Products Database), which can be visited at www.gnpd.com. Mintel can be contacted at 18-19 Long Lane, London EC1A 9PL, U.K.. Tel. +44-(0)20-7606-4533, Fax +44-(0)20-7600-3327

FUNCTIONAL & HEALTHY-EATING NEW PRODUCT LAUNCHESEach month we summarise new product launches from around the world.• Part 1: North America • Part 2: Rest of the World

BAKERY

USA Arnold Foods Arnold Health Full Nutty Grain Bread With wholegrain, protein and fiber to help satisfy hunger. Contains no artificial colours, flavours or preservatives. A source of fiber and provides 80 calories and 5g of protein per slice.

USA Interstate Brands Corporation Nature�’s Pride OvenClassics Honey Wheat Bread with Fiber

100% natural and a good source of fiber. It contains 10g whole grains, 4g protein and 90 calories per slice, 30% less sodium and no high fructose corn syrup, trans fat, artificial colours, flavours or preservatives. Pack features Heart Healthy logo. According to the manufacturer, diets rich in whole grains may help reduce the risk of heart disease and certain cancers.

USA Weight Watchers International Weight Watchers Coffee Cake Contains 5g of fibre, 3 PointsPlus and only 120 calories per cake.

USA Pepperidge Farm Pepperidge Farm Goldfish Soft 100% Whole Wheat Sandwich Bread

Comes in a goldfish shape. Enriched with vitamin D, contains no high fructose corn syrup and is said to turn a boring sandwich into fun and exciting soft delicious sandwiches that make everyone smile. Aimed at children, and are formulated with 3g of fiber and 18g whole grain per serving.

BEVERAGES

Canada Coca-Cola Minute Maid Heart Wise Orange Juice A pulp-free juice from concentrate with added plant sterols to help lower cholesterol. Each 250ml serving provides 50% of daily amount of plant sterols, 120 calories and two fruit servings. It is also a good source of vitamin C, folic acid, potassium, magnesium and thiamine. No added sugar or preservatives.

Canada Cadbury Beverages Mott�’s Garden Cocktail Tomato Clam Cocktail Juice

Claimed to be a healthy drink rich in a variety of vegetables which �“may help reduce the risk of some types of cancer�”.

Canada Loblaws President�’s Choice Blue Menu 3 Servings Fruit & Vegetables Juice

Each bottle contains three servings of fruit and vegetables with no artificial colours, flavours or preservatives. One serving contributes towards the daily recommended amount of fruit and vegetables. An excellent source of vitamin C. The following variants are also available: Blueberry, Beet & Concord Grape; and Orange, Carrot & Apple; and Reduced Sugar Mango Orange Juice Beverage.

Canada PowerBar Foods Power Bar ProteinPlus Protein Powder Drink Mix

Helps build lean muscle with sustained amino acid delivery. Sweetened with acesulfame potassium and sucralose. It contains 20 grams of TriSource protein, a blend of the highest quality whey protein concentrate, calcium caseinate and soy protein isolate for satisfying good nutrition.

Canada Cordoba Wellness Coffee Cordoba Wellness Organic Enhanced Coffee

An organic blend that �“delivers health benefits in every great tasting cup�”. Available in a Sensuality variety and is made with 100% fair trade Arabica. Formulated with horney goat weed, maca and damiana, which have been used since ancient times to strengthen the libido in both men and women and enhance the sensual experience.

USA Hy-Vee Manufacturing HyVee Vegetable Juice A natural source of antioxidants and a good source of vitamins A and C. Also available in the range is Prune Juice which contains no added sugar.

USA Monavie Mona-Vie EMV Lite Healthy Energy Supplement Drink

Free from artificial flavors, colors, sweeteners and preservatives. Lightly carbonated, contains 20% juice. The low calorie product contains a proprietary blend of antioxidant rich fruits, including the superfruits açai and maqui. Said to increase performance, endurance and concentration by picking up energy levels and maintaining them without a subsequent crash.

USA Triple Leaf Tea Triple Leaf Tea Cold & Flu Time An all natural herbal tea with no caffeine. It supports respiratory health, helps maintain a healthy immune system. promotes normal detoxification, supports healthy stomach and digestion and also promotes healthy resistance.

USA Sundance Beverage Co. La Croix Natural Coconut Sparkling Water

Free from calories, sweeteners and sodium.

USA Abbott Laboratories Abbott Ensure Immune Health Homemade Vanilla Shake

Contains a unique blend of prebiotic fiber to help promote digestive tract health, antioxidants to support the immune system, omega-3s and is enriched with 24 vitamins and minerals. Gluten free, suitable for lactose intolerance.

USA Nestlé HealthCare Nutrition Boost Chocolate Flavored Nutritional Energy Drink

Now available with a CalciLock blend of nutrients to help maintain lean muscle and healthy bones. Nutritionally balanced for energy and contains 26 vitamins & minerals. An excellent source of high-quality protein, vitamins C & E and selenium. Gluten- and lactose-free.

USA Bolthouse Juice Products Bolthouse Farms 50/50 Tropical Juice Blend

Made from concentrate and contains four servings of fruit and four servings of vegetables in every bottle. It is made with three oranges, 2/3 passion fruit, one guava, 12 1/2 carrots, 2 1/3 pears, and 2 3/4 apples. 100% natural, free from gluten and contains no preservatives, artificial colours, artificial flavors or genetically modified ingredients.

USA Ex Drinks Ex Chillout Natural Calming Drink Ex Chill Relaxing Beverage has been released under a new name Ex Chillout Natural Calming Drink. The product features a new taste and a new packaging design, however it contains the same calming ingredients chamomile, Valerian and lemon balm extract. Sweetened with �“Fruit up�”, a natural sweetener extracted from fruits without using chemicals or additives. Contains a high source of vitamin C and a good source of B vitamins and is free from high fructose, artificial flavours or preservatives.

USA Genesis Today Genesis Today Pomegranate Berry Boost

Made of 100% fruit juice and contains 15g resveratrol per serving. A blend of grape, pear, apple, black cherry, pomegranate, blueberry and cranberry juice with added nutrients and no added sugar. Contains nine essential vitamins for energy and health and is claimed to support cardiovascular health and youthful appearance.

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Canada Oatly Oatly Vanilla Flavoured Fortified Oat Beverage

Enriched with calcium and vitamins, and free from lactose, milk protein, soya, stabilisers and cholesterol. A source of fibre, and low in saturated fat.

Canada Danone Danone Danacol Drinkable Yogurt Contains natural plant sterols, which help reduce LDL cholesterol by blocking the absorption of cholesterol. Each 80ml serving provides 50% of the daily amount of plant sterol and it is also a source of calcium and a good source of vitamin B12, vitamin A and vitamin D. The Blueberry flavoured product contains no saturated fat or added sugar and is retailed in an environmentally-friendly pack of eight 80ml bottles. The range also includes the following flavours: Raspberry & Cranberry; Vanilla; Pineapple & Red Fruits, which comes in a pack with four bottles of each flavour. The company donates ten cents of each pack sold to Heart and Stroke Foundation.

Canada Loblaws President�’s Choice Blue Menu Celeb Margarine with Plant Sterols

A non-hydrogenated margarine with plant sterols that help lower cholesterol. The kosher certified product is low in saturated fat, contains no trans fat and retails in a 454g tub.

Canada Yoplait Yoplait Minigo Probiotic Fresh Cheese Previously available under the Yoplait Minigo Duo brand. Targeted at children, is said to be a good source of calcium and is enriched with vitamin D. It contains as much calcium and as little sugar as a 125ml glass of milk and more than 1 billion probiotics per serving to contribute to healthy digestive tract flora.

Canada Loblaws President�’s Choice Strawberry Yogurt Drink with Probiotics and Inulin

With Howaru Protect and contains 10 billion probiotic live active cultures per bottle. Said to be kid approved. It is free from artificial flavours, contains 1% fat and is a source of calcium.

USA Horizon Organic Dairy Horizon Organic Fat-Free Milk Plus DHA Omega-3

With vitamins A & D contains 0% fat and is organic certified by USDA. It is said to be an excellent source of plant-based DHA, calcium and vitamin D. DHA helps support the brain, heart and eyes, while calcium and vitamin D supports healthy bones in childhood and beyond. It also contains eight essential nutrients for growing babies. Variants: Whole Milk plus DHA Omega-3; and Reduced Fat Milk plus DHA Omega 3.

USA Oat Solutions Simpli Chocolate Oat Shake �“Provides all the satin-smooth satisfaction of chocolate milk without dairy or soy ingredients�”. The all natural product is free from cholesterol, trans fats, corn syrup, GMO�’s, lactose, artificial colors and preservatives. Said to be perfect for mealtimes, craving control, afternoon pick-me-up, exercise, grab and go, and for anytime you�’re hungry. This low gluten product contains natural fiber and vitamin D. Also available in Wild Berries and Tropical Fruits.

DESSERTS & ICE CREAM

Canada ConAgra Foods Swiss Miss Creamy Vanilla Reduced Calorie Pudding

Contains 50% fewer calories than the company�’s regular vanilla pudding. This sugar-free product is sweetened with Splenda. Naturally and artificially flavoured.

USA Dreyer�’s Grand Ice Cream Edy�’s Slow Churned Rich & Creamy Yogurt Blends Key Lime Pie Cultured Frozen Dairy Dessert

Contains live and active cultures, and is a good source of calcium. According to the manufacturer daily consumption of probiotic cultures may help maintain a healthy digestive system.

MEALS & MEAL CENTERS

USA Nestlé Lean Cuisine Market Creations Chicken Pot Stickers

Accompanied by green beans, red peppers, water chestnuts, edamame and orange and yellow carrots in a sweet chili ginger soy sauce. This preservative-free meal can be steamed in a microwave and is ready in minutes. One serving is worth five Weight Watchers points.

USA Harris Food Group The Biggest Loser Simply Sensible Lasagna with Meat Sauce

An excellent source of protein, is low in cholesterol, low in saturated fat, contains no trans fat and 200 calories per serving. Pack features the health check by the American Heart Association.

SIDE DISHES

USA Otis McAllister Village Harvest Quinoa Premium Whole Grain

A natural protein from the Andes. Features a chewy texture and all eight essential amino acids. Pack bears the Heart Healthy Whole Grains logo.

USA New World Pasta Ronzoni Smart Taste Rotini Pasta Reformulated and now contains vitamin D which helps build stronger bones and healthier bodies. An excellent source of calcium and fiber, is low in fat, low in sodium and free from cholesterol.

SNACKS

USA Bio-Engineered Supplements Finish First Syntha-6 Decadence Chocolate Caramel Pretzel Meal Replacement Bar

Contains 30g protein and is described as a multi-functional ultra-premium protein matrix. Free from aspartame.

USA Monavie Mona-Vie RVL Premier Weight Solution Nutrition Snack Bar

Contains 24 vitamins and minerals. They have a low glycemic value and are packed with antioxidants. The bars are also free from artificial flavors, colors, sweeteners and preservatives.

USA Brothers International Food Corporation

Brothers-All-Natural Fruit Crisps Freeze-dried sliced Fuji apples with 100% pure cinnamon. Contains no added sugar, and is said to be made with a process that removes the water from the fresh fruit, and transforms it into a light, flavorful crisp. No artificial ingredients and is said to be the perfect snack at anytime. Free from peanut, tree nut, gluten, soy, dairy, and GMOs. Pouch features the MyPyramid.gov logo. A pack provides two fruit servings.

USA Kind Kind Healthy Snacks Minis Variety Pack Includes mini bars in the following flavors: Almond Cashew + Flax (Omega-3); Cranberry Almond + Antioxidants, Almond & Apricot; and Fruit & Nut Delight. No gluten, wheat, cholesterol, GMO, trans fat or dairy, all-natural and very low in sodium.

USA ResVez Winetime Chocolate-Raspberry Resveratrol Bar

Made with high-grade resveratrol and premium French red grapes, each portion provides eight gram of fiber with only 190 calories per bar.

SWEETENERS & SUGAR

USA Domino Foods C&H Light Organic Agave Nectar With a low glycemic index, made from the succulent leaves of the agave plant. Low glycemic index foods help keep energy levels balanced and are a good part of a healthy diet. No additives or preservatives. It can be used in baked goods and to sweeten all favorite foods.

Canada Ecoideas Ecoideas Coco Natura Coconut Sweetener

Made from all natural pure coconut sap that is a nutrient rich sweetener. Has a low glycemic index, free from additives or artificial flavorings.

DAIRY & DAIRY SUBSTITUTES

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N E W P R O D U C T S

Country Company Brand & Product DescriptionPART 2: REST OF THE WORLD �– FOODS & BEVERAGES

BAKERY

Czech Republic Vega Provita ProVita Oat Biscuits with Dates Hand made without added sugar. Oats are rich in soluble fibre, which lowers blood cholesterol, helps with losing weight as fibre ensures satiety and reduces feeling of hunger. Protein contained in oats has almost an ideal amino acid pro-file. Oats are also a source of essential minerals and vitamins.

Finland Semper Semper Gluten-Free Fibre Round Breads

Said to be free from lactose and gluten. Baked with sour dough.

France Helsingin Mylly Régime Dukan Oat Bran Claimed to be an essential ingredient for the Dukan diet plan and to help regulate cholesterol, satiety and bowel movements. This 100% natural product can be used to easily prepare pancakes, bread or porridge and to sprinkle on milk, yogurt or fresh cheese. The microwavable oat bran is organic certified and retails in a 500g pack.

Italy Riso Scotti Riso Scotti Risette Rice Cake Formulated with beta glucan that is said to help to reduce cholesterol. The product is retailed in a 150g pack.

Poland Healthy Food Production Sonko Lekkie Wholegrain Crispbread Baked with prebiotics and fibre, and contains no added sugar. Each 170g pack comes with two individually wrapped packets.The company donates 1% of its profits to Na Ratunek Foundation, which helps children with cancer.

Portugal Pagesa Diet Rádisson Rosquidiet Wholemeal Rusks with Dark Chocolate

Free from added sugar and trans fat, and contain a high fibre content, which is said to help regulate the intestinal transit. The vegetarian product is made with non hydrogenated vegetable fat, which provides 9% of oleic acid that, accord-ing to the manufacturer, is claimed to regulate cholesterol levels. It is enriched with folic acid providing 12.5% of the required daily amount, and features a bifidus effect due to its content in prebiotic fibre, which helps bifidobacteria growth.

UK Kraft Foods Nabisco Belvita Breakfast Honey & Nuts Wholegrain Biscuits

Crunchy biscuits designed for consumption at breakfast time. They are rich in cereals, a good source of fibre, and contain added vitamins B2, B3, B5, B6 and B9, and minerals. These vegetarian biscuits have been made without the use of artificial colours or preservatives, and provide a gradual release of energy. Also available in this range is a Crunchy Oats Wholegrain Biscuits variety.

BEVERAGES

Germany W.P.T. Well Trade Power System Protein 90 Protein Concentrate

Contains a combination of high-quality protein components, essential amino acids and L-glutamine, which are indispensable for muscle growth and protein synthesis. The product is also formulated with zinc, which is said to be a vital co-factor for the fatty acid metabolism.

Philippines Del Monte Del Monte Fit �‘n Right Four Seasons Juice Drink

Described as a delicious juiced drink containing real fruit juice, 300mg L-carnitine that helps burn fat and B-vitamins that help speed up metabolism. It is said to refresh any time and anywhere. This low-calorie drink contains no added sugar.

South Korea Korea Yakult Yakult Yellow Fruits Juice Now available with a new packaging. This product is made with 100% vegeta-bles and fruits. It contains juices from yellow fruits and other vegetables such as pineapple, lemon, banana, white grapes, apple, lettuce, carrot, spinach, pump-kin, yam, squash, and other vegetables. It has been formulated with antioxidant and fibres and contains no artificial additives. The product retails in a 145ml pack which provides 85 calories. Also available are the following variants: Red Fruits and Vegetables; and Purple Fruits and Vegetables.

UK GlaxoSmithKline Lucozade Energy Sparkling Blackcurrant Flavour Glucose Drink

Provides glucose which acts fast to refuel the body for physical activity.

BREAKFAST CEREALS

Australia Cereal Partners Nestlé Milo Nutritious Energy Cereal Now formulated with 50% wholegrain, which is a good source of fibre essen-tial to maintain digestive well-being. This cereal has been enriched with 10 vitamins and minerals to assist normal growth and development.

Egypt Kellogg Kellogg�’s Special K Berry Flavoured Breakfast Cereals

Crunchy rice and wheat flakes with freeze dried red fruits and are now avail-able with a new packaging featuring the Love Your Shape in The Spotlight event in association with Sex and The City 2 DVD launch. This halal certified product contains less than 2% fat and is guaranteed to contain at least nine essential nutrients such as iron, vitamin C, B vitamins, and folic acid.

France Ceprodi Kot Wholegrain Cereal & Chocolate Shavings

Rich in protein and fibre and contains 70% less sugar and 50% less carbohy-drates than standard cereal with chocolate. This product features a low glyce-mic index, is suitable for the Kot weight control diet plan.

Germany Mönnich Gletscherkrone Activ Crispy Breakfast Cereal

A quality prebiotic breakfast cereal with oligofructose and inulin, for an active digestion. Formulated with coconut flakes and wholemeal flakes, is rich in fibre and does not contain sultanas.

UK The Good Carb Food Co. Lizi�’s Passionfruit Pistachio Granola Made with natural ingredients and has a low glycemic index for slow energy release. It is formulated with oligofructose, which is a prebiotic natural soluble fibre which helps maintain a healthy digestive system. Also available in the same range is a Mango Macadamia Granola variety.

Belgium Nutrition & Santé Céréal Gluco Control Milk Chocolate

Rich in fibres and contains 78% less sugar compared to a standard chocolate. It provides reduced influence on glycemic index and is free from preservatives, colourants and artificial flavours.

Germany Confiserie Heidel Heidel Nerve Strengthener Consists of crunchy chocolates made with milk chocolate, puffed rice cereal, cocoa and cornflakes. The chocolate clusters can be eaten on the go and con-tain 30% cocoa. This product retails in a 125g pack, which features a design of two batteries, to convey that the product helps to strengthen nerves.

CHOCOLATE CONFECTIONERY

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N E W P R O D U C T S

South Africa Solal Africa Technologies Solal Technologies Functional Superfoods Belgian Milk Chocolate Praline Bar

Contains omega 6 essential fatty acids for heart, brain and immune system health, and the following added nutraceuticals: prebiotic for healthy digestion and immune support; 100% RDA multivitamins for healthy body and brain; chromium polynicotinate, which helps balance blood sugar levels and boosts energy; and SuperNutrient antioxidants, which comprise grape seed extract, lutein, lycopene, zeaxanthin, and astaxanthin. The product with low glycemic response is free from gluten, colourants, tartrazine, preservatives, added sugar and aspartame.

DAIRY

Austria Nöm Nöm Nutrachol Cholesterol-Lowering Strawberry Drink

Contains natural plant sterols to lower cholesterol by as much as 10%.

France Danone Danone Activia Nature Yogurt Available in newly designed packaging, which emphasises the reduction in pack-aging. The pack also encourages consumers to recycle. The yogurt contains Bifidus ActiRegularis to support the digestive system. Retails in a 1.5kg pack containing 12 tubs.

Netherlands FrieslandCampina Mona Yoki Strawberry & Raspberry Yogurt Drink

Repackaged and is now retailed in a 1L carton with a new look. It is made with aronia juice and extra calcium, and provides a source of phenylalanine. This drinking yogurt contains no fat, added sugar or colourants. The pack bears the Ik Kies Bewust logo, which indicates healthy food choices containing less salt, sugar and saturated fat.

New Zealand Whitestone Whitestone Probiotic Camembert Cheese

Said to promote stronger immunity and a healthy digestive system.

Poland Jeronimo Martins Dystrybucja Pro Serce Classic Functional Yogurt Drink

Contains vegetable sterols said to lower cholesterol level. It is recommended to drink one bottle per day.

Russia Wimm-Bill-Dann Zdrayvery Orange Flavoured Sour Milk

Suitable for children over three years of age. It contains a vitamin complex and natural antioxidant lutein, which helps to improve memory and eyesight and provide concentration.

UK Nom Dairy Nom Friendly Senga Strawberry Probiotic Yogurt Drink with L. Casei

Said to be a delicious combination of natural ingredients and probiotic cul-tures. According to the manufacturer, each bottle works in harmony with the body to support digestive health. This drink is made from 100% British milk and contains no artificial colours, sweeteners or preservatives.

DESSERTS & ICE CREAM

Finland Bioferme Yosa Citrus Probiotic Oat Snack A 100% vegetable based milk free and fibre rich organic oat snack. This organic product is free from preservatives.

France Materne Materne Plain Apple Free from preservatives, artificial colours and flavours and is claimed to con-tain 25% less sugar than standard fruit compote. It contains proteins, which help muscle building, fibres for a healthy bowel function, and it is naturally low in fat.

FRUIT & VEGETABLES

Italy Orogel Surgelati Orogel Minestrone Vegetable Mix It contains 16 vegetable naturally rich in fibre, said to aid weight control and bowel regularity, and vitamin A, said to support a healthy skin and eyesight. According to the manufacturer, this GMO free product provides all the nutrients for a healthy diet and is quick to prepare. Now available in a pack containing 750g plus 150g for free.

New Zealand Pave Consumer Brands Dole Fruit & Oats Breakfast Apple Made up of apple pieces in a delicious fruit sauce with a crunchy oat topping. The microwaveable product is a good source of fibre and can be eaten hot or cold.

MEALS & MEAL CENTERS

Australia Simplot The Biggest Loser Beef Ragu with Pasta

Said to be a satisfying and balanced way to help with weight management. It provides less than 400 calories per meal and can be prepared in the micro-wave. Also available are the following variants: Sweet & Sour Chicken with Hokkien Noodles; Flame Grilled Meatballs with Penne Pasta; and Satay Beef Sausage with Rice.

Japan Kewpie Healthy Kewpie Salmon Brown Rice Risotto

A healthy risotto with brown rice, which is said to be delicious and made with Kewpie�’s original puffing-up technology. Contains less than 2g of salt per pack and is also low in calories. It is formulated with more than one third of the adult recommended daily amounts of calcium, iron and seven vitamins. It also contains 20mg of GABA, and can be prepared easily by just adding boiling water. Comes with a soup base made from matcha green tea, and toppings including salmon flakes, sesame seeds and nori seaweed.

SIDE DISHES

Netherlands Heinz Honig Fibre Rich Penne Made from 100% durum wheat and contains 30% more fibre than regular wholegrain pasta. The product is suitable for vegetarians and is retailed in a 500g pack. Also available are Vezelrijk Fusilli (Fibre Rich Fusilli); Vezelrijk Farfalle (Fibre Rich Farfalle); Vezelrijk Macaroni (Fibre Rich Macaroni Elbows); and Vezelrijk Spaghetti (Fibre Rich Spaghetti).

SNACKS

Brazil Kobber Alimentos Probiótica Whey Bar Low Carb Protein Bar

Repackaged with a new look. The product, which is aimed at athletes, features 16g protein and 2.7g BCAA per serving. It also contains added vitamins and minerals, and is formulated with Chocoterm, a blend of cocoa and other nutrient ingredients. Gluten-free.

Mexico Fullbar Fullbar Cereal Bar Available in a caramel apple crisp flavour and is 100% natural. It is naturally flavoured, contains 160 calories, is low in fat, and contains 4g fibre and 5g of protein. This product is certified kosher and has been developed by a leading weight loss surgeon. It retails in a 45g pack.

UK Maximuscle Maximuscle Cyclone High Performance Muscle Growth Bar

Formulated with BioMax fast-acting whey protein. This bar contains 2g glutamine and 1.5g HMB for muscle repair and recovery after exercise, 23g high quality protein to aid muscle growth, and 5g creatine to support gains in muscle and strength. This product is available in a Dark Chocolate flavour and is retailed in a 60g pack.

UK Maximuscle Maximuscle Promax Meal High Performance Protein Bar

Specially designed to support muscle growth and recovery. Each bar contains BioMax fast-acting whey protein, 21g high quality protein to support lean muscle growth, only 204 calories, under 3g saturated fat, and features a low GI content. This product is available in a Dark Chocolate Orange flavour and is retailed in a 60g pack.

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MAY 2011 31

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Apps and social media strategies in healthy foods and beverages Key lessons and case studies

February 2011

This concise 47-page report:

Wat-aah

Ordering is easy…see inside back cover or visit www.new-nutrition.com

PRICE FOR EITHER PDF OR PPT: !300 / $395 / £255 / A$420 / NZ$530 / ¥33,000 / C$395PRICE FOR PDF & PPT TOGETHER: !480 / $630 / £400 / A$670 / NZ$840 / ¥52,000 / C$630

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A 20% DISCOUNT

Apps and social media

www.new-nutrition.com

Case study 2: Wat-aah �– creating an urban lifestyle brand with social mediaHeavy use of social media, provocative

marketing messages, campaigning style and intense cultivation of a heavy dose of �“attitude�” and �“cool�” are getting the start-up Wat-aah! kids�’ water brand attention and growing its sales and distribution. Launched in 2008, Wat-aah! describes

itself as the first functional bottled water for kids without sugar, colouring or calories �“that tastes great, is legitimately healthy, and genuinely cool�”. Wat-aah! was founded by three New York-

based advertising and media executives, all of them women, who financed the initial stage, then turned to friends and family and now are said to have won backing from an unidentified European investor.

What is notable is that the products themselves have little or no point of difference from many others already available. Instead the company focuses on carving out its point of difference by building an independent and quirky brand identity, using its considerable marketing skills and its anti-big brand campaigning style.�“The soda bubble is bust. Kids know

it, their moms know it, but so do the soda manufacturers,�” said Wat-aah!�’s CEO and founder Rose Cameron in a press statement.

�“That�’s why they have launched an overwhelming number of so-called �‘healthy alternatives�’, such as juice-based drinks or enhanced water beverages. But the truth is that these �‘healthy alternatives�’ often have as

33

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Fortitech has managed successfully to engage its business-to-business audience with a content-rich approach – a strategy that will eventually become an industry standard, but one which few companies have yet emulated.

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Apps and social media

www.new-nutrition.com11

Here�’s how better-for-you brands are making

the most of social media:

2.1 SET THE RIGHT ENGAGEMENT

LEVEL

Social media probably are the best way to

create buzz about a new brand these days.

�“You can engage your consumer directly,�”

said Larry Weintraub, CEO of Fanscape, a

Los Angeles-based social-media consulting

firm. �“How do you like our product? What

would you recommend we do next? How does

it impact your life? Give us case studies and

stories to tell.�”

Despite the fact that social media really

have been part of the marketing mainstream

only for a few years, some major brands

already have used them to turn around their

sagging fortunes.

Starbucks is one of them, Weintraub said.

�“The shine was coming off the brand two

years ago,�” he noted. �“But Starbucks went

heavily into social media: asking customers for

ideas, giving them free things for being part

of the community. It�’s a benchmark for how

you can see a brand grow as a result of this

strategy.�”

But don�’t talk too much. Hawaiian Springs

water launched a Facebook campaign to

help build market appetite in the US for its

product, which genuinely is bottled in Hawaii.

It has found that two or three posts a week

to update the brand�’s fans �– maybe four

including the weekend �– are plenty.

�“You have to be real careful to keep them

interested but not to talk too much,�” said

Margaret Fuentes, marketing director of the

Costa Mesa, Calif.-based company. �“Because

if you send out too many updates, people start

taking you off their feed.�”

2.2 DEVOTE THE RIGHT

RESOURCES

Nestlé�’s palm-oil problem �“wouldn�’t have

happened if they�’d put real, dedicated

resources�” into social media, Weintraub

maintained. �“They weren�’t treating it as a

significant outlet or a resource for growing a

customer base.�”

PepsiCo�’s Gatorade doesn�’t intend to

overlook social media. It is betting big on

Facebook and other social media in its efforts

to turn around the brand from its recent sales

slide with a new, expanded, tripartite product

2. How to make social media work for you

Hawaiian Springs found that two or three Facebook posts a week were enough to keep the brands�’ fans satisfied �– more than that could

lead to consumers taking a company off their feed.

Apps and so

11

Here�’s how better-for-you brands are making

the most of social media:

2.1 SET THE RIGHT ENGAGEMENT

LEVEL

Social media probably are the best way to

create buzz about a new brand these days.

�“You can engage your consumer directly,�”

said Larry Weintraub, CEO of Fanscape, a

Los Angeles-based social-media consulting

firm. �“How do you like our product? What

would you recommend we do next? How does

it impact your life? Give us case studies and

stories to tell.�”

Despite the fact that social media really

have been part of the marketing mainstream

only for a few years, some major brands

already have used them to turn around their

sagging fortunes.

Starbucks is one of them, Weintraub said.

�“The shine was coming off the brand two

years ago,�” he noted. �“But Starbucks went

heavily into social media: asking customers for

ideas, giving them free things for being part

of the community. It�’s a benchmark for how

you can see a brand grow as a result of this

strategy.�”

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Hawaiian Springs found that two or three Facebook posts a week were en

lead to consumers taking a company off their feed.

Report

Apps and social

media strategies

in healthy foods

and beverages

Key lessons and case studies

By Julian Mellentin

MAY 201132

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Smart start-up strategy in healthy food and beverage 28 key case studies

November 2010

PDF – 162 pages, product illustrations, charts and tables of data

Ordering is easy…see inside back cover or visit www.new-nutrition.com

PRICE FOR PDF $395/!300/£255/C$395/A$420/NZ$530/JPY33,000

Taking together the strategy section and the insights from entrepreneurs this report enables you to maximize your chances of success by:

Smart start-up strategy

www.new-nutrition.com

Heavy use of social media, provocative marketing messages, campaigning style and intense cultivation of a heavy dose of �“attitude�” and �“cool�” are getting the start-up Wat-aah! kids�’ water brand attention and growing its sales and distribution. Launched in 2008, Wat-aah! describes itself as the first functional bottled water for kids without sugar, colouring or calories �“that tastes great, is legitimately healthy, and genuinely cool�”. Wat-aah! was founded by three New York-based advertising and media executives, all of them women, who financed the initial stage, then turned to friends and family and now are said to have won backing from an unidentified European investor.

What is notable is that the products themselves have little or no point of difference

from many others already available. Instead the company focuses on carving out its point of difference by building an independent and quirky brand identity, using its considerable marketing skills and its anti-big brand campaigning style.�“The soda bubble is bust. Kids know it, their moms know it, but so do the soda manufacturers,�” said Wat-aah!�’s CEO and founder Rose Cameron in a press statement. �“That�’s why they have launched an overwhelming number of so-called �‘healthy alternatives�’, such as juice-based drinks or enhanced water beverages. But the truth is that these �‘healthy alternatives�’ often have as much (and sometimes more) sugar than the sodas they are meant to replace.�” Cameron continued: �“Water is the true alternative to soda, but up until now kids have

Case study 6: Wat-aah �– creating an urban lifestyle brand with social media

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for many companies �“distribution�” means the supermarket channel �– a channel whose constraints are such that many innovations never see the light of day.

Supermarket chains�’ margin targets, their control over pricing, their desire for products to be successful within eight weeks or they are kicked off the shelf, the fact that retailers aren�’t willing to give more shelf space to existing categories and that for a new product to go on the shelf another one usually has to come out �– these are just a few of the factors in supermarket retailing that mean that many innovations never make it out of the ideation stage, and many that do don�’t last long in the warzone of the supermarket.

In large part the problem is because in many countries �– perhaps most �– there is an ever-greater concentration of power among a shrinking number of grocery retailers. It�’s a trend that�’s well-advanced in most markets and in some has already reached its logical conclusion �– in Australia, for example, 90% of the grocery market is controlled by just two supermarket chains.

As a start-up company you have two choices. You can either accept the status quo and live with the stranglehold of the supermarket chains �– who may not give you any space at all and if they do will be looking for you to be as successful as a mass-market brand in a matter of weeks �– or you can think how to get round it.

Even a huge company like Danone is clearly a company that is thinking �“outside the box�”: the summer of 2010 saw the opening of two �“Yoghourterías Danone�” at Madrid�’s Barajas international airport.

In a joint venture with Areas �– the leading Spanish foodservice company which runs the services at Barajas �– Danone has opened two 48 square metre branded retail outlets at Barajas offering yoghurt and ice-cream that can be garnished with cereals, fruits or other more indulgent ingredients, such as chocolate sauce and candy.

For those of you who speak Spanish (and the pictures tell the story interestingly enough for those of you who don�’t) you can find a short film about the new Yoghourterias by

Danone�’s joint venture with a Spanish foodservice company means customers can enjoy the company�’s ice cream and yoghurt from two Danone-branded �‘yoghourterias�’ at Madrid�’s Barajas international airport.

17

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CHART 3: LIFESTYLE CONSUMERS, A KEY SEGMENT FOR HEALTH BRANDS

Lifestyle consumers are a key consumer group, accounting for 25%-30% of the population in most

markets. It is a low-volume, high-value segment of the market. Most health brands start out targeting

this group – a few use it as a beach-head from which to evolve into the mass market. But for many

brands it is better to stay in this segment, which has the benefit of loyal consumers with high repeat

purchase rates (80% or better) and high margins.

Also an early adopter market, these people have no specific medical need but they aim to have a lifestyle

of health and wellness. They are not afraid to experiment and take the risk of trying out new products.

This part of the market is the perfect starting point for most healthy food and beverage start-ups. Of our

28 case studies, 23 are clearly positioned towards these consumers.

Products that target the lifestyle consumer can often have an appeal that means they overlap with the

needs of technology consumers. Beet It, for example, (Case Study 1) has benefits that appeal both

to elite athletes and to committed gym-goers who are not professionals, as do Provita and Click (Case

Studies 8 and 9).

Source: Mellentin & Wennström, The Food & Health Marketing Handbook

Health Focus consumer segmentations and percentage of consumers in each segment

Technology Consumers

LifestyleConsumers

Mass-marketConsumers

Solid line = sales volumes

Broken line = unit selling price

Sales

TIME

MEDICAL

HEALERS

9% 9% 19% 44% 12% 6%DISCIPLES INVESTORS MANAGERS STRUGGLERS UNMOTIVATEDS----- EARLY ADOPTERS ----- EARLY MAJORITY ----- LATE MAJORITY ----- LAGGARDS

Health Focus research is a respected source of insight into consumers. Its segmentation also finds an

important group of early adopters, accounting for 27% of the population, called Disciples and Investors.

8

CHART 3: LIFESTYLE CONSUMERS, A KEY SEGMENT FOR HE

Lifestyle consumers are a key consumer group, accounting for 2

markets. It is a low-volume, high-value segment of the market. M

this group – a few use it as a beach-head from which to evolve

brands it is better to stay in this segment, which has the benefit

purchase rates (80% or better) and high margins.

Also an early adopter market, these people have no specific me

of health and wellness. They are not afraid to experiment and ta

This part of the market is the perfect starting point for most hea

28 case studies, 23 are clearly positioned towards these consu

Products that target the lifestyle consumer can often have an a

needs of technology consumers. Beet It, for example, (Case St

to elite athletes and to committed gym-goers who are not profe

Studies 8 and 9).

Source: Mellentin & Wennström, The Food & Health Marketing

Health Focus consumer segmentations and percentage of cons

TechnologyConsumers

LifestyleConsumers

Sales

T

MEDICAL

HEALERS

9% 9%9% 19%DISCIPLES INVESTORS

----- EARLY ADOPTERS- ----- EARLY MY

Health Focus research is a respected source of insight in

important group of early adopters, accounting for 27% of

8

Report

Smart start-up strategy in healthy food and beverage28 key case studies

market?

targeted the right consumer group – a mistake that he

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D A I RY C A S E S T U D YConsultancy and strategic advice

Data is everywhere, explanation is rare. We focus on the explanation.Our exclusive focus on the business of food, beverages, nutrition and health gives us unrivalled knowledge of our sector globally. Our customers appreciate our ability to explain what is happening and what it means to them. This is why we are uniquely positioned to deliver significant value through a range of services including:

Health & Nutrition Trend Analysis: what we do better than anyone else. All year round we monitor consumer research, supermarket sales data and interview 400 industry executives to give our customers clear, actionable insights. Then we tailor these to individual companies’ specific areas of interest. From Australia to America to Europe, businesses use our unrivalled health trend analysis to inform their strategy and guide the direction of product development. We individually tailor a package for each company. We make the content as convenient and accessible as possible, using web delivery tools, webinars, audio files and in-house presentations.

For a taste of our trends analysis, take a look at our annual Ten Key Trends report at www.new-nutrition.com/10kt2010.asp. Julian Mellentin’s in-person presentations of the Key Trends are popular with companies around the world. For more information e-mail: [email protected]

Health & Nutrition Success Factors: our expert focus means that we are able to identify and constantly refine and evolve – in response to the evolution of markets and regulations – the “Golden Rules” for success for products with health benefits. Tailored to your category and market, our Success Factors guides are widely used by many companies. For more information e-mail: [email protected]

Business Models: since 1995 we have identified models which are now widely used to help businesses think clearly about how to get the best results, whether for commercializing science, new ingredients or food and beverage brands.

Workshops and presentations: insight into how to create specific advantages for your business, explanations of successes and failures across many categories and markets, and much, much more. Julian Mellentin delivers these in person or long-distance via webinars.

Market overviews and research: enabling companies to identify and validate opportunities.

Case studies: analyses of particular brands and what key lessons can be applied in your business.

Strategy consulting: strategic guidance and strategy reviews that allow you to define and analyse your strategic choices.

Brand development and positioning: market and strategic analyses to ensure your brand propositions make sense.

Confidentiality: All of our work is carried out under complete confidentiality. Unless given prior permission we never disclose the names of any clients or the details of any projects in which we have taken part.

To find out more contact [email protected]

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PUBLICATIONS

Apps and social media strategies in healthy foods and beveragesSocial media and apps are the fastest-moving, biggest bandwagon in global marketing and branding – and food and beverage marketers know they’ve got to get to grips with this new technology. But there are still more questions than answers about how best to use social media – and how to avoid the pitfalls. This concise 47-page report outlines seven practical ways to make social media work for you, based on real life examples.

Ten Key Trends in Food, Nutrition & Health 2011This is the food and beverage industry’s most important guide to the business trends in nutrition and health. Companies all over the world already use our trends analysis to inform their innovation, R&D and marketing strategies. Whether you are in ingredient supply or consumer foods and beverages, our annual forecast 10 Key Trends provides unrivalled practical insights.

Smart start-up strategy in healthy food and beverageIf you have an idea for a new food or beverage with health benefits, or nutrition science that you want to commercialise, how do you successfully take it to market? Starting up a new business in healthy foods and beverages is risky; the cost of marketing is always higher than entrepreneurs believe it is going to be, and the rate of sales growth is always slower. This report sets out the five elements of successful start-up strategy over 21 pages, drawing on lessons from 28 key case studies of recent start-ups, both successful and unsuccessful.

Coconut water: innovation and natural health benefits drive a new categoryFrom Brazil to America to Europe: coconut water is the fastest-growing new category, with retail sales already above $450 million (!327.5 million), thanks to its strong isotonic, hypo-allergenic and all-natural health benefits. Using new processing technologies and new brands, start-ups in Germany, the US and elsewhere are growing coconut water sales and getting premium prices. Coca-Cola, PepsiCo, some of Europe’s biggest brewing families and even Madonna have invested in the sector.

Innocent Drinks: seven strategy lessons from the setbacks of Europe’s biggest smoothie makerInnocent Drinks rocketed from start-up to over $200 million in retail sales within eight years, creating a new category in Europe – fruit smoothies. But between 2007 and 2009 its sales plunged by 29% and prices were slashed. This unique 27-page report sets out the seven strategy lessons that can be learnt from the experience of Innocent.

Pom Wonderful: how innovation in science, packaging and branding can create a new superfruit categoryPom Wonderful pomegranate juice is the world’s most distinctive beverage brand. First launched in 2002 in innovative and eye-catching bottles, its meteoric rise helped create a category which did not previously exist.This case study delivers a close-up view of Pom Wonderful’s strategy and positioning and the lessons that everyone can learn from this extraordinary brand.

Beauty foods and beverages: 7 strategy lessonsBeauty foods and beverages are big in Japan, but in the West few brands have gone beyond a niche. This unique report sets out the seven strategy lessons that can be learnt from the experience of Danone Essensis, Nestlé Glowelle and Borba Skin Balance Water - three case studies which provide the most clear insights into the risks and opportunities in the “beauty-from-within” business.

20 Key Case Studies in Functional and Health-Enhancing Beverages 2010Using 20 Case Studies of brands addressing a range of benefits – energy, joint health, sports beverages, protein boosting, digestive health, weight management and heart health – this report looks at why some brands succeed and why others fail.

Probiotic juice: five key strategy lessons from Europe and the USCase studies in digestive and immune healthProbiotic juice is one of the biggest untapped innovation opportunities in the healthy beverage business, worldwide. Drawing on case studies from Europe and the US, this report sets out sets out the five key lessons that are essential reading for anyone who wants succeed in probiotic juice.

Failures in Functional Foods & Beverages: And what they reveal about successThe functional foods market is a complex one. Success with a new product or ingredient is rare. This unique 98-page report examines failures by functional brands and ingredients. It sets out the lessons that can be applied by anyone trying to develop an effective strategy for a brand or trying to commercialise nutrition science and offers concise strategies for reducing the risk of failure.

Organic and all-natural kids’ snacks and baby foodsSeven Key Case StudiesHealth-conscious parents seem committed to continuing to buy healthy food for their children despite the recession, even as they economise in other areas.

Energy shots: birth of a new premium-priced, high-growth categoryStrategies, trends and case studies from the US and UKSuch is the value to consumers of the proposition of a daily dose of energy with no added sugar that in the US alone this new category has soared to over $350 million in retail sales in less than two years - despite recession and despite selling at a massive 400% price premium over “mainstream” energy drinks such as Red Bull!

Trends & Strategies in Weight Management: Ten Key Case StudiesOur concise analysis shows which brand strategies are most effective and why, which ingredient strategies are most effective and why and sets out the key market and consumer trends. Our analysis is illustrated with ten detailed case studies which cover satiety and fat burning and look at how to use weight management to revive old brands or create new ones.

Superfruit: strategy for superfruit successSuperfruits are revolutionising the way consumers relate to fruit and fruit-based products and they’re growing their market fast – from 40%-100% every year. And yet just a handful of fruits have crossed over from commodity status to superfruit stardom. This guide provides a checklist for superfruit success.

Probiotics: Successful Strategies from the Global MarketplaceThis report is written for anyone trying to develop an effective strategy in the challenging and fast-changing area of probiotics. It sets out the seven steps to creating a successful probiotic brand and describes probiotic strategy both in dairy and emerging new segments such as fruit juice and solid foods.

The Food & Health Marketing HandbookIn a competitive world how do you take your technology to market so that it’s your product that wins at the point of purchase? This handbook tells you how to get the best out of the science and the health benefits of your ingredients or products.

Our case studies and reports give you unique insights into the vital and changing food, beverage and nutrition market.

For more New Nutrition Business case studies visit www.new-nutrition.com

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20 Key Case Studies in Functional and Health-Enhancing Beverages

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