Healthful Beverages Growing
With Innovative Juices, Drinks, Teas
By Jack Grant
Consumers are looking for new beverages to quench their thirst as the problems of obesity, diabetes and other ailments are increasingly linked to what people eat and drink. As a result, consumption of carbonated soft drinks has dipped slightly.
Beverage manufacturers are responding with a bevy of new juices, drinks and teas that are natural and reportedly provide health benefits.
The U.S. refreshment beverage market contracted by 2.7% in 2009, based on preliminary data from Beverage Marketing Corporation. This represented the second consecutive year of declining volume and a more intense decrease than the 2.1% dip registered in 2008, which had been the first down year on record.
The weakened economy once again affected the market. Even so, certain key beverage types and brands continued to advance even as most of the larger categories lost volume. Reflecting consumer demand for healthier and more functional beverages, ready-to-drink tea and energy drinks both grew in 2009.
The performances of the leading companies’ liquid refreshment beverage portfolios reflected overall market trends. Coca-Cola’s total volume dipped by 3% in 2009, while Pepsi’s was off by 7.8% compared to the previous year.
“Although 2009 was the second year in a row of unusual weakness in liquid refreshment beverages’ performance, the worst may be over,” said Michael Bellas, chairman and CEO, Beverage Marketing Corporation. “Beverages are likely to be one of the first categories to benefit with a job-led economic recovery because they represent an inexpensive form
of pleasure.”
The Coca-Cola Co. has identified juice and juice drinks as its top priority after soft drink beverages. The beverage giant has launched three Minute Maid Enhanced varieties nationally in 12-ounce single-serve bottles: Minute Maid Pomegranate Blueberry Flavored 100 Percent Juice Blend of Five Juices, Minute Maid Lemonade and Minute Maid Strawberry Kiwi Flavored Juice Drink.
Beverages with functional claims are near the top of the list of consumed juice drinks, according to a January 2009 “Fruit Juice and Juice Drinks” report by Mintel International, Chicago. Recent new product introductions provide evidence of this trend.
Naked Juice, a unit of PepsiCo, Purchase, N.Y., introduced Naked Protein Zone Double Berry and Naked Protein Zone Mango. The former contains strawberries, blueberries, apples, banana and 30 grams of soy and whey protein per bottle. The latter also contains 30 grams of soy and whey protein per bottle.
R.W. Knudsen in Chico, Calif. expanded its line of organic beverages with 8-ounce single-serve organic juices, including superfruit flavors such as pomegranate and cranberry. All of the company’s beverages are made with 100% juice and are certified organic by Quality Assurance International.
The healthful beverage business gained some muscle when Pepsi-Cola North America Beverages (PCNAB) and Ocean Spray expanded their U.S. sales and distribution agreement to include a broader array of single-serve juices and juice drinks.
Beginning in February, PCNAB began producing, distributing and marketing several more varieties of Ocean Spray beverages. The agreement includes five Ocean Spray brand juices: 100% Apple; 100% Orange; Ruby Red Grapefruit; Pineapple Peach Mango; and Strawberry Kiwi. In conjunction with Ocean Spray's 2010 blueberry innovations, PCNAB also will distribute a 15.2-ounce Blueberry juice cocktail, the first nationally distributed of its kind.
The growing business of more healthful beverages is not limited to the well-know national companies and its new subsidiaries and partnerships. Bolstered by tempting flavors and creative marketing, regional players are gaining traction in the marketplace as well as recognition and enthusiasm among consumers.
For example, Chadwick Bay, based in Chadwick Bay, N.Y. offers a variety of teas, juices, smoothies, and lemonades in natural, organic, reduced calorie, and zero-calorie varieties.
“More than a place, Chadwick Bay is a state of mind – a way of living,” said Anne Pacifico, brand manager of Chadwick Bay. “As I check in with our growing number of enthusiastic fans at http://www.facebook.com/chadwickbay, I’m reminded of the love for the brand, and fans’ passion to enjoy a Chadwick Bay Day.”
Showing its marketing savvy, the company recently announced the availability of its beverages through a partnership with alice.com, a retail platform with convenient shopping and always-free shipping.
Chadwick Bay kicked off the online store launch at www.chadwickbaybeverages.com by offering Enhanced Teas in Black Sweet Tea with Raspberry and Southern Style Sweet Tea, both available in 16-oz. bottles. Delicious Pear Cider and popular Organic Apple Juice are also available for purchase. Both juices are available in 16.9-oz bottles. Consumers can also purchase their favorite beverage by phone.
“We are responding to the need to provide our consumers with ‘at your doorstep’ delivery of our delicious and nutritious juices and teas,” said Pacifico. “Each week I speak with consumers from all over the country looking to purchase our products and am thrilled to be working with alice.com to bring our brand of choice to consumers and their families.”
The brand’s tea line also includes Green Tea with Ginseng and Honey, Black Tea with Citrus, White Tea with Pear, Organic Black Tea with Lemon, and Zero Calorie Enhanced Green Tea with Pomegranate and Blueberry.
Other 100% juices available in 16.9-oz. bottles include Grape, Cranberry Blend and
Tropical Citrus. Chadwick Bay offers its consumers Natural 100% juices in 32-oz. family size Sweet Cherry, Cranberry, Tropical Blend, Orange Spice Blend, Pomegranate and Prickly
Pear Lemonade.
Chadwick Bay’s Strawberry Sensation and Reduced Calorie Very Berry enhanced dairy-free shelf-stable smoothies provide multi-vitamin benefits and at least one serving of fruit per 8-oz. serving. Rounding out the assortment is Lemonade, Lite Half ‘n Half Tea Lemonade and mouth-watering ciders, all presented on the brand’s website www.chadwickbaybeverages.com.
JUNE 2010
Market Watch
Typical American Diet Lacks Enough Fiber
By Rose Anthony
Fiber is noticeably absent from the typical American diet, according to new research by Mintel.
One in three respondents to a recent survey consider their diet to be healthy, but only one in five report actively looking for and buying products with added health claims. Based on these results, only a minority of adults are likely to be interested in fiber-enhanced products with digestive claims.
While 30% of consumers say they make it a point to eat naturally fiber-rich foods, studies show most Americans are failing to meet their recommended daily fiber intake. This may be explained by the 27% of respondents who think food with added fiber usually has an unpleasant taste.
“Many people have negative perceptions about the taste of fiber,” said Molly Heyl-Rushmer, senior health and wellness analyst at Mintel. “The taste deters them from eating a fiber-added product that has numerous health benefits.”
One of four (25%) of survey respondents think fiber is only necessary for those who suffer from irregularity or other digestive problems. Men are more likely than women to hold this belief. Thirty percent of men (compared to 23% of women) also believe supplements are just as effective as fiber-enriched foods.
Despite the fact that research shows that a lack of fiber is linked to various cancers, heart disease and diabetes, 22% of consumers don’t know enough about fiber to know if it is important to their health. Furthermore, 37% believe they can get enough fiber from regular foods, so supplements and food with added fiber are unnecessary.
“Consumers are more likely to report limiting sugar, fat, sodium, and calorie intake than they are to eat naturally fiber-rich foods,” noted Heyl-Rushmer. “Adults don’t fully understand the link between fiber and health.”
“The way men view fiber is a considerable obstacle for marketers to overcome,” added Heyl-Rushmer. She recommends using “macho” spokesmen in commercial advertising to gently poke fun at these false beliefs, and convince men they’re incorrect could be a successful marketing tool.
She further advises marketers to implement money-back guarantees and educational initiatives to dispel negative perceptions, as well as inform the consumer about fiber’s importance in
their diet.
Online Beauty Revs Up
The female Baby Boomer population is more web-savvy than ever, says a recent Beauty Retailing report from Mintel. They could be wielding their digital dollars at online beauty sites if retailers play their cards right.
One in ten respondents to a recent Mintel survey report using some type of online retailer to purchase cosmetics and skin care aids, and the female Boomer population is expected to increase by 30.9% from 2005-2015.
When looking strictly at online sales, 8% of those surveyed visit mass merchandiser sites for beauty products, 8% order from Wal-Mart.com, 8% order from Target.com, 5% patronize drugstore sites like CVS or Walgreens and 8% visit other unnamed online retailers.
According to Mintel, the online market will continue to grow, as nearly every retailer has a website, from Wal-Mart and Walgreens to Saks Fifth Avenue and Sephora. With the continued popularity of Twitter, Facebook and Videoegg, beauty retailers can use social networking platforms to measure consumer preferences and tailor their sites to appeal to
online shoppers.
Strengthening Combat Meth Act
The Consumer Healthcare Products Association (CHPA) has called on Congress to amend and strengthen the federal Combat Methamphetamine Epidemic Act (CMEA) by requiring nationwide electronic tracking (e-tracking) for all over-the-counter (OTC) sales of cold and allergy medicines containing pseudoephedrine (PSE). E-tracking is the only solution that will immediately block illegal sales and prevent criminals from buying illegal amounts of PSE to manufacture methamphetamine.
CHPA made a commitment on behalf of industry to fund a national system and work with the retail community to expand the National Precursor Log Exchange (NPLEx) system currently being implemented in eight states that have passed e-tracking legislation.
The NPLEx e-tracking system works in real time to stop individuals from exceeding package limits when purchasing PSE-containing medicines. Using sales records that CMEA already requires retailers to keep and which are only made available to law enforcement, NPLEx works across state lines and provides law enforcement with an effective tool to stop methamphetamine production.
