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N EW N UTRITION BUSINESS www.new–nutrition.com NOVEMBER 2008 ISSN 1464-3308 VOLUME 14 NUMBER 2 THE JOURNAL FOR HEALTHY EATING, FUNCTIONAL FOODS & NUTRACEUTICALS Pages 15-16 Continued on page 3 Pages 8-10 Pages 11-14 Monkeying around maxes sales for dairy sports drink Norwegian launch for Smartfish looks a smart move New extract boosts a beverage’s “whole-fruit’ antioxidant power Debuting in Switzerland and Portugal – the two countries where Swiss dairy group Emmi has its best retailer coverage – the new energy brand Emminent will be the “first probiotic drink that offers to boost energy levels in a single shot”, according to Emmi. Are we talking about a Red Bull rival on the dairy shelf ? “We do not see Red Bull as our direct competitor, although there are some parallels,” Emmi’s media relations manager Stephan Wehrle told New Nutrition Business. “Most classic energy drinks are nightlife products, whereas Emminent will be consumed at home or in the office, and predominantly around breakfast time.” Emminent is a line of fruit- flavoured probiotic milk drinks enhanced with active ingredients taurine, guarana, dextrose and green tea extract. The bottles come in a 125ml daily dose format, sold through retailers in packs of four. Single Emminent bottles will also be available at gas stations and railway stations. Each 4-pack of bottles carries the claim “Energize your day” and each pack also carries the statement: “Supports performance and strengthens the immune system”. Due to its high caffeine content, the product is not recommended for pregnant women or children. On the reverse of the 4-pack the product claims that: - Energy complex of guarana and dextrose supports performance - Probiotic bacteria LGG enhances the immune system - Green tea extract contains catechines as antioxidants According to Emmi, one Emminent shot contains 40mg of caffeine, 15% berries or fruits, and a “daily portion” of the probiotic LGG – the world’s most-researched probiotic bacteria, which Emmi licenses from Finland’s Valio Dairy and 160mg of green tea extract. The shots come in three flavours – orange, berries and mango – and currently retail at Co-op, Switzerland’s second largest supermarket chain, at CHF4.90 ($4.32/€3.21) per 4-pack. Despite its premium positioning, Emminent’s price tag is in line with energy drinks typically sold for CHF0.90-2.30 ($0.79-$2.03/€0.59-€1.50) per can in Switzerland. According to Wehrle, Emmi comes up with innovative product concepts at least every other year, and spends considerable time analysing the elements which make a new product successful. “We learned our lessons from the LactoTab failure,” explains Wehrle, speaking of a brand based on CoEnzyme Q10, which Emmi briefly and unsuccessfully marketed. “The message has to be kept very simple. You need a good-tasting product that makes understandable claims for what it promises to do for the consumer.” Emmi has been fine- tuning its energy concept for over 18 months. It took a while to optimise the taste, says Wehrle, especially as Emmi had no prior experience in masking the bitter notes of guarana. Initial consumer response was positive, and gave assurance that product Emmi aims to energise dairy business By Kati Leskinen

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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 NOVEMBER 2008 ISSN 1464-3308VOLUME 14 NUMBER 2

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 15-16

Continued on page 3

Pages 8-10 Pages 11-14

Monkeying around maxes sales for

dairy sports drink

Norwegian launch for Smartfish looks a smart

move

New extract boosts a beverage’s “whole-fruit’

antioxidant power

Debuting in Switzerland and Portugal – the two countries where Swiss dairy group Emmi has its best retailer coverage – the new energy brand Emminent will be the “first probiotic drink that offers to boost energy levels in a single shot”, according to Emmi. Are we talking about a Red Bull rival on the dairy shelf ?

“We do not see Red Bull as our direct competitor, although there are some parallels,” Emmi’s media relations manager Stephan Wehrle told New Nutrition Business. “Most classic energy drinks are nightlife products, whereas Emminent will be consumed at home or in the office, and predominantly around breakfast time.”

Emminent is a line of fruit-flavoured probiotic milk drinks enhanced with active ingredients taurine, guarana, dextrose and green tea extract. The bottles come in a 125ml daily dose format, sold through retailers in packs of four. Single Emminent bottles will also be available at gas stations and railway stations.

Each 4-pack of bottles carries the claim “Energize your day” and each pack also carries the statement: “Supports performance and strengthens the immune system”.

Due to its high caffeine content, the product is not recommended for pregnant women or children. On the

reverse of the 4-pack the product claims that:- Energy complex of guarana and dextrose

supports performance- Probiotic bacteria LGG enhances the immune

system- Green tea extract contains catechines as

antioxidantsAccording to Emmi, one Emminent shot

contains 40mg of caffeine, 15% berries or fruits, and a “daily portion” of the probiotic LGG – the world’s most-researched probiotic bacteria, which Emmi licenses from Finland’s Valio Dairy – and 160mg of green tea extract.

The shots come in three flavours

– orange, berries and mango – and currently retail at Co-op, Switzerland’s second largest supermarket chain, at CHF4.90 ($4.32/€3.21) per 4-pack. Despite its premium positioning, Emminent’s price tag is in line with energy drinks typically sold for CHF0.90-2.30 ($0.79-$2.03/€0.59-€1.50) per can in Switzerland.

According to Wehrle, Emmi comes up with innovative product concepts at least every other year, and spends considerable time analysing the elements which make a new product successful.

“We learned our lessons from the LactoTab failure,” explains Wehrle,

speaking of a brand based on CoEnzyme Q10, which Emmi briefly and unsuccessfully marketed. “The message has to be kept very simple. You need a good-tasting product that makes understandable claims for what it promises to do for the consumer.”

Emmi has been fine-tuning its energy concept for over 18 months. It took a while to optimise the taste, says Wehrle, especially as Emmi had no prior experience in masking the bitter notes of guarana.

Initial consumer response was positive, and gave assurance that product

Emmi aims to energise dairy business

By Kati Leskinen

NOVEMBER 20082

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

LEAD STORY

1,3 Emmi aims to energise dairy business

NEWS ANALYSIS

4 BioGaia’s bugs bid for market share

4 Mulberries boast of being resveratrol powerhouse

EDITORIAL

5-7 Forget the mass market. Niches offer the best hope for successful innovation

CASE STUDIES

8-10 SPORTS NUTRITION: Monkeying around maxes sales for dairy sports drink

11-14 SUPERFRUIT: New extract boosts a

beverage’s “whole-fruit’ antioxidant power

15-16 OMEGA 3: Norwegian launch for Smartfish looks a smart move

17-18 WEIGHT MANAGEMENT: Dairy start- up promotes satisfaction with fewer calories

19-20 BRAND FAILURE: Satiety smoothie fails to fly

21-22 START-UP: Big Shotz takes a shot at the big time

23-24 BEVERAGE: Dutch fruit drink brand makes a virtue of water

25-26 STRATEGY: Stretching juice into soup

NEW PRODUCTS

27-29 Functional & healthy-eating new product launches

IMPORTANT NOTICE

30 A polite reminder to our subscribers

NEW NUTRITION ON THE NET

31 Get the most from your subscription

NEW CASE STUDIES

32 Trends & Strategies in Weight Management: Ten Key Case Studies

33 Powerpoint Slide Presentations

34 New Nutrition Business Publications

35 Order Form

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36 Subscription Order Form

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

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

STAFF

EditorJulian [email protected]

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Actimel ....................................22Activia .......................................5Aktifit .........................................3Albert Heijn ............................12Amazon ...................................18Anlene .......................................5Balance Bar .............................17Benecol ......................................3Berocca ....................................22Big Shotz .........................5,21,22BioGaia .....................................4Biola ..........................................4BioQ ..........................................4BodyCheck ..............................10Brakes ......................................21Campbell’s ..........................25,26Clif Bar ...................................17CocaCola ................................16Coffee Republic ......................21Cold Fusion .............................17Co-op ..............................1,12,15

Danone ..............................3,5,22Disney......................................15Emmi ................................1,3,5,6Emminent ........................1,3,5,6Evolus ........................................3Fonterra .....................................5Friggs .......................................10Fruit2Day ..........................6,7,24Gainomax Energy Bar ...........8,9Gainomax Recovery ...5,6,8,9,10Gatorade ...................................5General Mills ..........................26Healthy Request .................25,26Heinz Sunshine .......................24Heinz .............................23,24,25Hero ..................................6,7,24Innocent Smoothies ................20Intelligent Quisine ..............25,26Kavli Holding AS......................4Knorr Vie ................................22LactoTab ................................1,3

LightFull ..........................5,17,18Lipid Nutrition ...................19,20Luna Bar .................................17Marine Harvest Ingredients ....15Naturally Drinks .....................20Naturally Gorgeous .........7,19,20Norges Gruppen .....................15Norrmejerier ........................8,10Ocean Spray ...................5,12,13Petits Filous ...............................5Pharmalogica .....................15,16PinnoThin ..........................19,20Pom Wonderful .......................14Pomegreat ..........5,6,11,12,13,14Procter and Gamble ................21Progresso .................................26ProViva Active ........................10Q-Meieriene ..............................4Red Bull ....................................1Roosvicee .....................6,7,23,24Sanatogen ................................22

Shotz Health ......................21,22Skånemejerier .........................10Slim-Fast ..................................21Smartfish MyOmega .........15,16Smartfish ......................5,6,15,16Smartweek ...............................16Starbucks .................................17Tesco .......................................13Tine Dairy............................4,15Tropicana ..................................7Unilever .....................................3V8 .......................................25,26Valio ....................................1,3,4Waitrose..............................21,22Wegmans .................................17Weight Watchers ....................18Welch’s ...............................12,13Whole Foods Markets .............17Yoplait .......................................5

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.

© 2008 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.

NOVEMBER 2008 3

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N E W S A N A L Y S I S

development was going in the right direction. “I do not want to compare Emminent with LactoTab too much, but this time both the taste and the whole concept received excellent feedback,” says Wehrle. “With LactoTab there was much more controversy.”

In a business where probiotic drinks come in pretty much any shape and flavour provided they are marketed to women, Emmi seems to have done everything to make Emminent a brand magnet for men. Wehrle admits that the product has some masculine cues attached to it to highlight its image, but

denies that the product is designed for men only.

“Emminent has a certain aspect of masculinity, but in a very ironic way,” he explains. “And no – there are no sexual innuendos in the bottle design; men just tend to like to hold these types of things in their hands.”

“Men spend less time on breakfast than women, and that makes them an attractive target group for this type of product. Nevertheless, we like to think that Emminent is suited to all stressed people in

business life, not just men.”Emmi is powering its marketing muscle

with a “Save the Men” TV spot featuring three lightly-dressed heroines – Emma, Emmilia and Emmilou – on a quest to rescue tired office workers. The three Emmi girls will also attract potential consumers through a sampling campaign conducted at Swiss train stations, banks and other office buildings. “This time we will rely heavily on sampling, as we know that consumers will buy the product for its taste,” says Wehrle.

There’s no such thing as low-risk innovation and no company can create anything extraordinary without the confidence to take risks. You have to admire Swiss Emmi’s desire to take chances with new product categories, even though some have backfired – LactoTab, for example, was a dairy beverage based on CoEnzyme Q10 (CoQ10) with a sports message, which was withdrawn from the market early in 2008. Failure is rare for Emmi – the company’s ability to design and market products well has few equals. But Emmi has not only learnt from its LactoTab experience, the company shows an admirable openness about its experience of failure which is too rare in our industry.

EMMI – A LEADER IN DAIRY INNOVATION

Emmi has come a long way over the last fifteen years from Switzerland’s third-biggest cheese maker to the position as one of the most innovative food and beverage companies in Europe. Emmi has proven itself to be very effective in building markets for products that combine innovation in ingredients with innovation in packaging. The company pioneered the “daily-dose” probiotic dairy market in Switzerland, through its brand Aktifit, which uses the probiotic LGG licensed from Emmi’s R&D partner Valio Dairy, Finland’s biggest dairy group. This probiotic bacteria is also the active bacteria chosen for new Emminent launch. The company then went on to create a daily-dose version of the Benecol cholesterol-lowering brand which has been highly successful and has since been emulated by Unilever and Danone. More recently Emmi launched a blood pressure lowering dairy drink, branded Evolus, using a brand and technology licensed from Valio, that can be found in several European countries.

Lucerne-based dairy group Emmi is the leading Swiss cheese producer and has operations in Spain, Portugal, Chile and North America. Listed on the Swiss stock exchange the company had sales in 2007 of CHF2.5 billion ($2.2 billion/€1.6 billion).

Continued from front page

LADS IN THE LIMELIGHT

Here is how Emmi describes its campaign on the www.emmi-emminent.ch website:

It’s not so easy to combine work, free time, family and fitness. Men are doing worse than ever - it’s about time to save the species! The name of the campaign: Save the Men. Its mission: to improve men’s performance and immune system. The team: Emma, Emmilia and Emmi-Lou. Their vehicle, the “Save the Men” truck. The weapon: the new energy shot of Emmi.

EMMI EMMINENT INGREDIENTS & NUTRITION FACTS

100ml contain (all varieties) :

energy value 320kJ (76 kcal)protein 2,5gcarbohydrates(therefrom sugar) 15g (14g)fat (thereoff saturated fatty acids) 0,7g (0,4g)dietary fi bres 0,5g (Orange: 0,1g)sodium 0,05gcaffeine (from guarana) 32mggreen tea extract (thereoff catechines) 160mg (48mg)taurine 400mg

NOVEMBER 20084

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N E W S A N A L Y S I S

Q-Meieriene, a subsidiary of Norwegian-based Kavli Holding AS, has launched a new probiotic yoghurt drink, BioQ. It’s the fi rst result of an exclusive agreement that gives Kavli the right to use BioGaia AB’s patented probiotic Lactobacillus reuteri protectis in dairy products in Norway.

The launch pitches BioQ against Biola, the leading product in the probiotic sector in Norway, which is marketed by Tine Dairy, the dominant dairy group on the Norwegian market. The Biola range contains Valio’s LGG strain. Q-Meieriene’s category manager Kristine Skulstad says BioQ sells at a slight premium to Biola; at NOK28-29 ($4.77-4.94/€3.39-3.51), BioQ prices are NOK1-2 ($0.17-0.34/€0.12-0.24) higher than Biola.

Packed in a 1L carton, BioQ comes in three fl avours: raspberry & cranberry; blueberry & aloe vera; and blueberry & raspberry. Communication on pack explains that the product contains cultured milk with active bacteria, adding that scientifi c studies

have shown that Lactobacillus reuteri protectis has a benefi cial effect on the gastrointestinals, which in turn have an effect on the immune system: “If you drink BioQ every day, you help your stomach stay in balance”.

Skulstad says BioQ has been well-received by retailers and the products have full listings nationwide, with many supermarkets already reporting good sales. She says consumers have welcomed it as an alternative to Biola; some have liked the fresh taste; and some the new packaging design.

“The target group for the products is families with children and particularly the mothers,” Skulstad says. The brand is supported by media advertising, sampling, and marketing on other Q-milk packaging. Q-Meieriene is

focused on taking health into consideration in R&D; another foray into the area of health has been a successful vitamin D low-fat milk.

BioGaia’s bugs bid for market shareBy Patricia Wiklund

Mulberry trees are still a common sight in the English countryside, the legacy of a long-disappeared silk industry (the leaves were fed to the silkworms). But today they are not cultivated commercially and are little-known and rarely consumed in the UK – which is why a juice company that would like to make the mulberry into a superfruit has had to turn to China for its supplies.

Mulberry Fair Superfruit Juice is the first product from London-based start-up company Fairjuice. It is available in two blends, Mulberry and Sanguinello Orange and Mulberry, Grape and Pear. Fairjuice Managing Director Rachel Price told NNB that the brand, which is sold chilled, is pitching itself against pomegranate juice, citing the two leading brands, Pom Wonderful and Pomegreat (see page 11), the latter priced at the same level as Mulberry Fair at £3.29 ($1.54/€1.25) per litre.

Price says that mulberries – which resemble raspberries – are impossible to sell other than in a processed format because of the berries’ extremely thin skin. The complexities of the mulberry supply chain give Fairjuice an advantage over potential

competitors, she believes, who would find it difficult to source any mulberries at all. The company has signed exclusivity agreements with the factory in China that manufactures its juice.

The brand communicates – as would-be superfruit drinks usually do – the berries’ high level of antioxidants as the key benefit and Mulberry Fair breaks newish ground by focusing on the berries’ content of the antioxidant Resveratrol. Mulberry Fair claims that mulberries have a higher level of antioxidants than either cranberry or blueberry, as measured by the ORAC method (Oxygen Radical Absorbent Capacity).

Price explains that the Mulberry Fair packaging will include a “DNA friendly logo” with the words “Scientists believe antioxidants protect DNA.”

Price adds that in developing the packaging the company tried to avoid including anything that might need to be removed when new European Food Safety Authority labeling regulations come into force in 2010.

The target consumer for the juice is a 25-40 age female with no children and a sufficient income to buy premium juice. Mulberry Fair has debuted in 60 Waitrose and Selfridges stores – the most upscale foodstores in the UK market – in the London area, where the target consumers are likely to be concentrated. Conscious of the lack of consumer awareness of mulberries, Price says marketing the product essentially means educating people about mulberries and it is primarily using PR to achieve this.

Mulberries boast of being resveratrol powerhouse

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E D I T O R I A L

In tough economic times everyone will have to work harder than ever to make brands make sense to consumers – and reduce the risk of failure. For all businesses there are now three choices available:

a) do nothing new until better times comeb) focus on low-priced, mass-market brands

- which probably will have a low content of innovation and a low content of health.

c) create brands with maximum appeal to the health-conscious niches who are willing to pay premiums for “expert” brands – and who become loyal customers with high repeat purchase rates.

Most food companies will chose a) or b) and dismiss c) as “too risky”. But it is those who choose c) who will in the end be best-placed to weather the storm.

An analysis of the brands profi led in this issue of New Nutrition Business makes it clear what are the most important success factors for those who choose this path – and the most common causes of failure.

SUCCESSFUL BRANDS ARE EXPERT BRANDS

The past 15 years of functional foods have shown very clearly that the best way to get consumers’ loyalty and generate repeat business is to be “the expert brand”, the brand that’s the most credible source of the health benefi t that the customer is looking for.

Expert brands have a very clear benefi t platform and focus on a single benefi t, consistently, patiently, over many years. The reward for clarity of message and single-minded focus is that they establish very strong positions which it becomes almost impossible for others to challenge.

Examples of expert brands include:• Red Bull and energy drinks• Danone Activia probiotic yoghurt in

digestive health• Yakult probiotic dairy drink and digestive

health• Danone Actimel probiotic dairy drink and

immune health• Benecol and cholesterol-lowering dairy

drinks• Fonterra Anlene in dairy and bone health• Yoplait Petits Filous and bone health for

childrenAmong the case studies in this issue of NNB:

Gainomax, by staying focused on its “recovery” message, has become a very successful “expert in sports nutrition”. It offers a benefit that wasn’t previously available – scientifically demonstrated post-sports recovery – to consumers whose only alternative was bananas, water or sports beverages such as Gatorade.

Pomegreat is the acknowledged creator of a new segment of the fruit juice market and it is a company that has consistently been, and remains, “all about the pomegranate” – strategy deliberately modeled on Ocean Spray’s focus on cranberry. This “expertise in health from pomegranates” means that the company has been able to remain the number one in pomegranate juice, despite attacks by larger companies with bigger marketing budgets. Now Pomegreat is attempting to reinforce its expertise with the addition of a pomegranate extract which enhances the antioxidant power of its juice.

Emmi, the innovative Swiss dairy company, has successfully established very one-benefit-focused “expert sub-brands” in its markets including:

a. Aktifit in probioticsb. Benecol in cholesterol-loweringc. Evolus in blood pressure-loweringThe company does not attempt to

bring “new benefits” to existing brands – a mistake commonly made by marketers. With Emminent it is creating a new sub-brand with a very clear focus – energy. It’s a benefit that’s currently only available from conventional high calorie, high-sugar, high-caffeine energy drinks. Emminent is a low-

calorie dairy alternative from a trusted parent brand.

Smartfish is also built on a very focused expert position – the benefits of an effective dose of marine omega-3s (470mg per 200ml serve). The company is very open that its products contain fish oil and its position is to be “the best choice” for the niche of consumers who are motivated by the benefits of omega-3 for themselves and their children and who are health-knowledgeable enough to know that most commercially available omega-3 dairy and juice drinks provide only a small fraction of the recommended daily intake.

LightFull makes it clear both in the brand name and in the prominent on-pack messages that its position is a “surprisingly filling satiety smoothie” with few calories. The benefit is focused, the brand is focused and the company’s founders decided to resist the temptation to add any other ingredients. Vitamins, for example, were ruled out because there are very few that people can’t already get somewhere else – and supplementation, as most of our readers will know only too well, usually has an adverse effect on taste.

In strong contrast to the above brands, Big Shotz is a brand whose strategy runs counter to the “expert brand” lesson that has been learnt over the last 15 years, aiming to be “an everyday for everybody product”. One reason that all the brands above have a focused benefit platform is that it enables you to more easily communicate your benefit – essential in a world where consumers are bombarded by marketing messages about health – and create a clear point of difference by better targeting your marketing spend. A brand

Forget the mass market. Niches offer the best hope for successful innovation.

These brands are all premium-priced “expert” brands targeting clear niches.

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E D I T O R I A L

without a clear point of difference is a brand that is competing with everything else – and in the case of Big Shotz that means dietary supplements as well as foods and beverages. Big Shotz, for example, offers 100% of a whole raft of vitamins, yet for someone seeking a dose of vitamin C, the amount per serve is only a tenth of that they’d get from a well-known supplement brand such as Berocca, which has an “expert position” for those wanting B-group vitamins and vitamin C.

AIM FOR THE HEALTH-CONSCIOUS NICHES

Even in the good times, the mass market wasn’t willing to pay very much (or any) premium for health. That makes perfect sense: these consumers are price-sensitive, carefully managing their hard-earned cash to ensure they have enough left to pay for the necessities and the pleasures. In the mass market health is and always was a lower-level selling proposition after brand name, taste and price.

Better to look for the people for whom health is part of their lifestyle. These people, who are at best only 20%-25% of the population in most countries, often tend to be older – over 40 or 50 – and have noticed that life is bringing changes to the way they look and feel. A small segment have a medicalised-type of issue that they want to address, but the larger part are healthy people who are willing to pay a premium to maintain their wellness and they welcome new health concepts that enable them to do so.

As the chart on page 7 shows, these people are, as the founders of LightFull described them, “the early adopters”. They are the people who want “expert brands”.

Gainomax was originally only targeted at elite sportspeople. Sports nutrition is one of those market segments in which science matters as much as marketing: if the consumers can’t feel the benefi t quickly, they will soon turn away. The “elite athlete” niche is a perfect “technology consumer” niche (see chart), where the consumer is interested in, and needs, the technology to get a very specifi c and measurable result. Committed sports people are intensely loyal to a brand that delivers on their expectations – and willing to pay premium prices for effective, science-based products. This niche provided the beachhead from which to widen Gainomax’s appeal to “normal gym goers” – people who exercise frequently.

Pomegreat explicitly targets both the technology consumers and lifestyle consumers. It calls the former the “health concerned”, a slightly older age group with a specific heart health interest, and the latter the “health-conscious lifestyle” segment, made up of people who are focused on well-being but also refreshment.

Smartfish is clearly aimed at the technology consumers, informed consumers who look for high doses of omega-3 and if they don’t find it in a product they don’t buy it, as well as people like snowboarders who are “particularly interested in wellbeing”.

CHARGE PREMIUM PRICES

There isn’t much point in putting in a major effort to create a health brand, with all the development costs that entails, unless you’re going to be able to earn superior retail prices and therefore higher profit margins.

Well-designed products that deliver a clear benefit that’s credible and relevant to the consumer and are targeted at the health-conscious niche have thrived even in very price-sensitive markets even at premium prices.

From our case studies Gainomax is the most successful example, charging around €2 ($2.88) per 250ml package – which is around €8 per litre ($11.62). That places Gainomax at a massive premium to the retail price of milk, for example, which retails for around €0.75 per litre, and a premium even to sports drinks such as Gatorade.

Emmi Emminent retails in 4-packs of 125ml which sell at a price equivalent to €6.40 ($8) per litre – a premium for a dairy product but, compared on a price per litre basis, about 40% below the retail price of energy drinks. On a price per drink basis Emminent is also competitive. Yet the brand’s added ingredients – dextrose, green tea extract and guarana – will be eating up very little of this premium, leaving Emmi with sufficient margin to enable it to invest heavily in marketing support.

Pomegreat began with a mass-market price for its ambient juice, but on learning from experience that its appeal was as a niche brand for the early adopters it has directed its strategy towards maximising its appeal to this group, introducing new products targeted specifically at them, at premium prices. “We are not looking to the mass market,” says Pomegreat’s founder and CEO Adam Pritchard, speaking of what he describes as the “strong core” of health-conscious

shoppers. “We expect to cover an upper end of the market we know is there.”

DIFFERENTIATION THROUGH PACKAGING DESIGN

Good packaging supports the brand in asserting its difference from the competition. It’s the best way to catch the consumer’s eye and earn premium prices and better-than-average profit margins, as the examples above show.

Packaging innovation, in particular selling in single-serve packages, makes it very difficult for consumers to easily compare prices. Putting your new product in a standard 1-litre gable-top carton, on the other hand, makes your product look like every other brand on the shelf and enables consumers to easily compare prices between your product and regular products.

INNOVATION IN DISTRIBUTION

The supermarket is where most people shop – but it’s also the most intensely fought battleground. Many managements think that they have to succeed there from day one. In fact you can start with other channels and build up a loyal following, learn about the market, and from there graduate into the supermarket.

The Gainomax brand has grown fast since its introduction into mainstream supermarkets, but gyms and sports centres

Hero Fruit2Day has become a huge success - despite the fact that it retails, measured on a price per litre basis, at a 150% premium. Roosvicee, by contrast, has “played it safe” and offers its brand in a standard carton with a hydration message which has no uniqueness and provides little or no point of difference. The “risky” brand strategy of Fruit2Day has helped propel a 30% growth in Hero’s business since 2003, compared to just 11% growth for Roosvicee – and Hero’s 30% growth has been at much higher margins.

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E D I T O R I A L

remain an important distribution channel. It is here that the heaviest users are found. It is also here that the product is bought on impulse and where the consumers are willing to pay a premium for something they need “right now”. Selling through gyms also provides the brand association with serious sportspeople that it needs in order to be credible.

PLAYING IT SAFE – A RECIPE FOR FAILURE

Not only is it impossible to innovate without taking risks, playing it safe and avoiding risky innovation is about the riskiest thing you can do. Compare the fortunes of Roosvicee (page 23) with its rival Hero. The latter has been highly innovative, launching a brand, called Hero Fruit2Day, which is “an expert

brand” (in that it offers two portions of fruit and was one of the first brands in Europe to do so) and has very visible packaging innovation, using design to underscore the benefit (see illustration on page 6). Hero Fruit2Day has become a huge success – despite the fact that it retails, measured on a price per litre basis, at a 150% premium over leading juice brands such as Tropicana. Roosvicee, by contrast, has “played it safe” and offers its brand in a standard carton with a hydration message which has no uniqueness and provides little or no point of difference.

The result? The “risky” brand strategy of Fruit2Day has helped propel a 30% growth in Hero’s business since 2003, compared to just 11% growth for Roosvicee – and that 30% growth has been at much higher margins. The

riskier strategy has provided the best results. The marketers of Naturally Gorgeous (page

19) also played it safe, introducing a product that had no point of difference from any other product alongside it in the chiller cabinet except for the health benefi t (satiety). By packaging their product in a standard gable-top carton, they enabled consumers to see at a glance just how expensive it was compared to other brands. In other words, they aimed for a premium, but failed to do anything to either justify it or conceal it, relying solely on the health benefi t to do that. And one thing that’s a clear lesson from the last 15 years is that if you rely on the health benefi t as your brand’s primary benefi t you are building a house on quicksand.

THE NUTRITIONAL PRODUCT LIFE CYCLE

The chart below was developed to aid understanding of brand positioning and the evolution of markets. Many products start out on the left, targeting consumers who have a need for a product that has effective technology. They sell in low volumes at premium prices but over time their appeal increases and they move down the price curve to the right, eventually becoming mass-market products. Few functional foods have yet made this transition – many companies deliberately target the lifestyle area as a way of creating a defensible niche and maintaining premium prices.

The stages of the life cycle are: Technology consumers – These are the early adopters. Representing, according to research by HealthFocus International, between 2%-8% of the market, these are the people who have a medicalised or near-medical need for a product. They need the technology of the functional food to address their health condition. They put functional before food and see products in a medicalised context and, as with drugs, they will pay a substantial premium for something that addresses their condition.Lifestyle consumers – These are the people who like to be first with new benefits. They are interested in maintaining their wellness, not fighting illness. They will adopt new brands and will pay a premium for a product but only if it supports their lifestyle.Mass-market consumers – They are motivated when a benefit becomes a standard and is available in products with low or no premiums, ideally from well-known and trusted brands.

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

TECHNOLOGY CONSUMERS

LIFESTYLECONSUMERS

MASS-MARKETCONSUMERS

Solid line = sales volumes

Broken line = unit selling price

6% - 8% of consumers 20% - 25% of consumers 67% - 74% of consumers

SALES

TIME

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S P O RT S N U T R I T I O N C A S E S T U D Y

For a sports nutrition brand to appeal to both professional athletes and occasional gym goers requires some balancing. Often specialty brands lose their credibility among professionals when they go mainstream, whereas those who start off as a solution for the mainstream only rarely reach the inner circles of sport addicts.

Swedish dairy Norrmejerier is proving an exception to the rule. It manufactures and markets Gainomax Recovery, a high protein and high carb milk-based beverage intended as a recovery drink after training. It has tripled its sales since 2004 and this year sales are up 20% from last year.

FROM HOSPITALS TO GYMS

Gainomax Recovery’s roots date back to 1990 when a resourceful entrepreneur found that hospitals in Denmark were giving a milk-based beverage – similar to what Gainomax Recovery is today – to patients after surgery to facilitate their recovery. The entrepreneur saw the product’s potential for sports nutrition. He introduced the concept in Sweden and Norrmejerier came into the picture as the contract manufacturer. But the anticipated success never materialized – the customer base and the volumes were probably too small, suggests Gainomax’s marketing manager Johan Nylund – and the entrepreneur decided to withdraw some years later. Norrmejerier offered to buy the brand in 1997. The company trusted its knowledge of marketing and distribution channels, and began to push the brand forward.

Today Gainomax Recovery is well known in Sweden. The product is aimed at people who exercise regularly and is developed to replenish nutrients needed by the body to quickly recover energy and maximise the effects of physical exercise. Gainomax Recovery belongs to the fast growing category of recovery drinks and is recommended for

use 5-30 minutes after exercise.It has been on sale in gyms and

other sports facilities since 1990 and in supermarkets since 2004. Originally it was only targeted at elite sportspeople. Communications were focused on educating users about the recovery phase, and the necessary combination of protein and carbohydrates for optimum recovery. In all aspects, its communications and positioning were that of traditional sports nutrition: Focused on high-level athletic performance, with images of sweaty gyms and sportspeople working hard.

However, Norrmejerier is a traditional dairy company and its strength is in retail. In 2002 the company decided to take a chance by widening the consumer target market and heading into the supermarkets. “We started selling regionally, in the northern parts of Sweden, which traditionally is our strongest

area,” Nylund recollects. “It went amazingly well. In 2004 we upgraded to national scale, braced by this successful case.”

Nylund sees the retail route as one of the keys to success. “As we know, it is often diffi cult for smaller players to get in. The retailers want volumes and not too-small products. They also expect the producer to back up the product with promotion and marketing.” Norrmejerier met all these criteria and in return Gainomax got increased exposure.

THE GAINOMAX LINEUP

Currently the Gainomax Recovery beverage is available in raspberry, strawberry, vanilla, banana and chocolate. It is packaged only in a ready-to-drink 250ml Tetra Pak – not in 1 litre packs.

In 2006 the brand was extended with an energy bar, an idea that came directly from the most dedicated consumers who wanted a good snack product. Gainomax Energy Bar is a yoghurt-covered muesli bar which contains a balanced amount of carbohydrates, protein and fat. It contains 1/3 of the recommended intake of fi bre and has an energy content in line with the Nordic Nutrition Recommendations. The product is targeting active men and women who need a nutritious snack before or during training.

Both Gainomax Energy Bars and Recovery beverages retail at approximately SEK 20 ($2.88/€2.06); the beverages may be priced slightly cheaper in retail outlets than in gyms, at SEK 15 ($2.16/€1.54). New Nutrition Business estimates the total sales to be around SEK 100 million ($14.4 million/€10.3 million) a year. Given that Sweden has a population of just 9.1 million people, pro rata that rate of sales to a larger market such as France and Gainomax is equivalent to a €70 million ($94 million) annual sales brand – or in the US, a $400 million (€297 million) brand.

Monkeying around maxes sales for dairy sports drink

The northernmost dairy in Sweden, Norrmejerier, has shown how a brand can successfully broaden the market for a sports recovery drink, reaching beyond serious athletes to draw in occasional gym goers – and tripling sales since 2004. To illustrate how successful it has been, a brand that achieved a similar level of penetration in a market like the US would be worth over $400 million in retail sales. The key to a Swedish mass-market success? Monkeys and bananas. PATRICIA WIKLUND spoke with marketing manager Johan Nylund.

The Gainomax pack reads: “Gainomax Recovery is recommended 5-30 minutes after training. Gainomax Recovery quickly restores the carbohydrates and protein that the body needs to recover and maximizes the benefi ts of training.”

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DO YOU HAVE BANANAS IN YOUR GYM BAG?

2006 was an important year for Gainomax. It wanted to reach the broader sports segments and in order to achieve that it needed to be markedly different. To do that it introduced a new communication concept called “Bananas are for monkeys”.

The company’s consumer research had revealed that many sports people and normal gym goers ate bananas during and after training – not other sports nutrition products. Some resorted to water or even used nothing. Gainomax decided to use this knowledge to create some humour and quirkiness around Gainomax. “We wanted to get attention and start a debate,” Nylund says. “We wanted to get the message through that it isn’t enough only to eat a banana if you want to optimize your recovery.”

Nylund looks back on the decision making: “The safe bet would have been to continue as usual. We chose monkeys instead of what we had always done. We went through agonies, not to mention the challenge of convincing the rest of the company about it. But it was a strong concept and it gave us the courage to be creative and different. In hindsight it feels great – back then, not so much!” he muses.

The concept builds on the idea that

bananas are for monkeys, not something you should connect with sports. Television ads showed a chimpanzee given a choice between a banana and Gainomax Recovery. It chose the banana. The tag read:

“This monkey just did 700 pushups. Gainomax Recovery contains twice as many carbs as a banana and twenty times the protein”

or “This monkey has run a marathon. Gainomax

Recovery contains all the carbs and protein you need to recover. A banana doesn’t”.

The communications have developed through different web activities and event marketing. Today when you go to the Gainomax website you fi rst have to answer whether you are a human or a monkey. If you click monkey, you are sympathetically guided to a website called banana.com.

TALKING MONKEYS

More recently, the concept has been taken even further. It plays with the question of what would happen to the world if humans ate all the bananas. Now the monkeys have a message and they have produced their own TV adverts. You encounter the begging monkey baby, the hypnotic monkey and the scary monkey; all have the same message – don’t touch our bananas.

Has Gainomax pushed the concept too far? “In the latest clips we have taken it far – that is true,” acknowledges Nylund. “But the communication needs to evoke emotions and reactions. The

worst that can happen is that you get nothing. No reaction. We want the consumer to feel something and we want debate.” The target consumers are 15 to 35-year-old active people - the messages seem to go down well with them.

DEDICATED GYM GOERS KEY TO ENTRY

Gainomax Recovery is available in Sweden, Finland, Norway, Denmark and the UK. Both in Sweden and Finland, the product has a strong foothold. In the other countries, there is still much to be done. “The biggest challenge is fi nding the right collaboration partners in each new export country. We need to fi nd the right channels and how to best reach the active gym goers who train maybe three to four times a week. It doesn’t necessarily have to be the professional athletes. We need to reach these active ones fi rst, only then can we proceed into the supermarkets,” Nylund explains.

Gainomax wants to be number one in the recovery segment in the whole of Northern Europe. The company will capitalise on the concept that has worked well in the Nordic countries, but knows each country needs a customized approach.

What is to be expected in terms of communication? More monkeys and quirkiness? Nylund answers: “Maybe not. We have broadened ourselves a lot. It might be that we will go back to our origins now and start communicating more with the elite athletes again. It might also be that we’ll start segmenting our communications more.”

Nylund says the European sports nutrition market is not as developed as in the US, but the outlook is positive – there is demand

“Many people have a banana in their training bag. But the content of a banana doesn’t even come close to the amount of protein and carbs you need for your body to recover after a workout. Gainomax Recovery contains double the carbs and even twenty times more protein than a banana. A tricky equation for a monkey. An evident choice for those of you who train. What is in your training bag?”

Många har en banan i träningsväskan. Trots attinnehållet i en banan inte ens kommer i närheten av den mängd protein och kolhydrater du behöver för att kroppen ska återhämta sig efter träning.

En Gainomax Recovery innehåller dubbelt så många kolhydrater, och hela tjugo gånger merprotein än en banan. En klurig ekvation för en apa. Ett självklart val för dig som tränar.

22803-Saatchi-Gainomax-Cafe.ind1 1 2/22/06 11:03:34 AM

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GAINOMAX TIMELINE:

1990 An entrepreneur discovers that a dairy-based drink is used in Danish hospitals for speedy recovery of patients after surgery. He decides to introduce the concept as sports nutrition in Sweden and Finland. 1990 Norrmejerier becomes the contract manufacturer.1993 Gainomax Recovery is launched in the UK.1997 Norrmejerier acquires the brand.2000 Gainomax Recovery is exported to Ireland and Denmark. 2002 Regional test marketing is started in the northern parts of Sweden to see how Gainomax Recovery manages on the supermarket shelves.2003 The current packaging is introduced. Since then only minor face-lifts have been done. 2003 Gainomax Recovery is sold in gyms in Norway.2004 After good results the marketing and distribution is upgraded to nationwide.2004 Norrmejerier starts to put effort into the marketing of Gainomax.2006 The new marketing concept is introduced. The marketing focuses on presenting Gainomax Recovery as the smarter alternative to bananas, which seem to be the main food item consumed after training. 2006 In response to consumer requests the Gainomax range is extended with Gainomax Energy Bar. It is sold at gyms in Sweden and Finland. 2007 Gainomax Recovery is launched in retailers in Norway. 2008 Sales have tripled since 2004 and increased 20% from 2007. Annual sales are approximately SEK 100 million.

GAINOMAX’S KEY LEARNINGS IN SPORTS NUTRITION

Great taste: Sport nutrition is constantly facing preconceptions about terrible tasting products.Sampling: You have to convince the user that the product tastes as great as you claim. Gainomax is sampled at various events and sports competitions. Multiple distribution channels: Norrmejerier introduced Gainomax Recovery into retail chains. It hasn’t however forgotten the gyms and sport centres where the heavy users are found. Here the product is often bought on impulse and consumers are willing to pay a premium at the point of purchase. Listen to core consumers: Gainomax developed a new range of energy bars because its heavy users asked it to. The company is constantly working with Umeå University to optimise the recipes and develop new solutions. Be credible: Nylund says Norrmejerier has the advantage of being an established dairy company. Consumers trust the brand in terms of quality and safety. Educate the consumers: It wasn’t until the understanding of the product was well established among athletes that Norrmejerier could move on to communicating with the wider consumer segments.Be different: Where most sports nutrition brands focus on technical properties and top performance, Norrmejerier had the courage to stand out by using a little humour and provocation with the “Bananas are for monkeys” concept. Getting reactions and stimulating discussion is essential.Be patient: Take it step by step. For Norrmejerier it was important to have the successful regional trial done, well before stepping into the offi ces of the big shots to suggest nationwide distribution.

NUTRITIONAL CONTENT 100 ml 250 ml

Energy 440 kJ/100 kcal 1050 kJ/250 kcal

Protein 8 g 20 gCarbohydrates 16 g 40 gOf which: Sugars 5 g 13 g Starch (maltodextrin) 6 g 15 gLactose < 1 g < 2.5 gFat 0.5 g 1.3 g Of which saturated 0.3 g 0.7 gFiber 0 g 0 gSodium 0.04 g 0.1 gRibofl avin 0.13 mg 0.33 mg (21% of RDA)Vitamin B12 0.39 µg 0.98 µg (98% of RDA)Calcium 182 mg 455 mg (57% of RDA)

Ingredients:UHT-treated milk, maltodextrin, sugar, milk protein, fl avouring, stabiliser carrageenan, lactase.

NUTRITION FACTS PANEL FOR GAINOMAX RECOVERY

for credible players. “Consumers want convenient products, they are moving away from the traditional mixing of powders and want easy-to-use products.” The market will keep growing, and will probably segment further, predicts Nylund, who sees a myriad of new niches on the horizon: “We will start to see more products for instance targeting women, or certain sports.”

Gainomax Recovery is the market leader in the recovery segment in Sweden. During the past few years, some competition has

emerged, which Nylund welcomes. Another Swedish dairy, Skånemejerier, for example, approaches recovery through probiotics. Its ProViva Active doesn’t have the same sports profi le, but it addresses the body’s need to replenish its energy stores and return to a state of balance. It is also different in that it is a juice-based drink. And two years ago Friggs, a Swedish healthy nutrition and dietary supplement manufacturer, launched the range BodyCheck, a sports nutrition brand including recovery drinks. Friggs challenges

Gainomax Recovery directly by competing on the same shelves in the supermarkets with a similar brand proposition. “It is great that they came,” says Nylund. “It is tough to be alone in the market, and if more players are spreading the message, we all gain. They haven’t taken any sales from us.”

Nylund also sees the energy drinks market as driving the recovery category. “We want to see the whole segment grow. That gives our products more visibility”.

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S U P E R F R U I T C A S E S T U D Y

UK-based Pomegreat has hit upon an ingenious way to boost its market share, creating a ‘whole-fruit’ pomegranate beverage with the taste and consistency of a standard juice drink.

The company’s new Pomegreat Ruby and Sapphire chilled juice drinks are little different in their recipes from regular pomegranate juice drinks. Ruby is 32% pomegranate juice and 5% aronia plus water, flavours and sugars. Sapphire, meanwhile, is 28% pomegranate juice, 4% blueberry juice and 4% aronia.

But an extra ingredient – listed on-pack simply as ‘extract of pomegranate’ – takes the product to a different level altogether.

The extract in question is actually the seeds and the pith of the pomegranate fruit dried into a powder and blended with the juice/water mix, thereby creating a drink that contains the whole of the fruit.

It is a cunning solution to the challenges posed by the pomegranate, which in spite of its renowned nutritional benefits, is notoriously difficult to eat and pretty tricky to process into a juice. Karl Crawford, business leader for food and health at New Zealand’s HortResearch, the world’s largest fruit research institute, is impressed with the idea.

“It’s very unusual, but it’s a really cool thing to do,” he says. “It would be very difficult to make a pomegranate juice from the whole fruit. I haven’t heard of this before, but I think it is a way forward.”

Pomegreat, which has a 67.5% share of

the UK’s ambient pomegranate juice market and 20.5% share of the chilled market (IRI Infoscan, 52 weeks to 6 September 2008), is boldly marketing Ruby and Sapphire on the basis they contain an ‘elixir’, as the company refers to the powdered extract.

This elixir, the company promises, provides a big antioxidant punch. On the front of the carton, text reads: “Every pomegranate is packed full of precious juicy gems. Only Pomegreat contains the finest natural pomegranate elixir made from the whole pomegranate to ensure you get the maximum antioxidant goodness in every glass. So get the juices flowing.”

On the side of the pack, it says: “The power of pomegranate. Recent independent scientific studies show that Pomegreat Ruby contains more natural antioxidant power than orange and apple juice, grape or cranberry juice drinks. Only Pomegreat contains the powerful antioxidants from the whole fruit in every glass.”

It continues: “Literally meaning ‘against oxidation’, antioxidants can help strengthen your immune system as part of your balanced diet and healthy lifestyle. They help to eliminate free radicals and keep your body cells in balance. Only Pomegreat contains pomegranate elixir, harnessing the powerful antioxidants from the whole fruit in every glass.”

The comparison with the other fruits is based on oxidant radical absorbant capacity (ORAC) readings, calculated scientists

at Chemical Analysis Laboratories in Dublin. The ORAC readings are shown on Pomegreat’s website.

It is the addition of the pith and seeds that makes all the difference, says Pomegreat founder and chief executive Adam Pritchard, because “that’s where there is a lot of antioxidant value”. He adds: “It’s giving us a significant antioxidant reading and we are achieving it in a natural way.”

Pritchard is highly secretive about where Pomegreat is sourcing the powder, revealing only that the company has a period of global exclusivity for the ingredient. He says the launch of the product was driven by the twin desires to innovate and to make more of the fruit at the core of its business.

Launched in 2003, Pomegreat was the first pomegranate juice brand on the UK market (for Case Studies of the brand see New Nutrition Business May 2005 and May 2007).

“We are all about the pomegranate and we want to use the whole fruit, to get all the benefits it has to offer,” says Pritchard. “The problem with pomegranates is they are inherently difficult to eat. You can’t get round it. One of our challenges is to get all the goodness of the fruit out and make it easy for our consumers to drink.”

Pritchard admits the powder is expensive, but adds: “It certainly adds a lot of value to our product and brand proposition. We know that consumers understand the antioxidant message and what we are offering is genuine delivery of antioxidants from the fruit. That’s a significant point of difference.”

New extract boosts a beverage’s “whole-fruit’ antioxidant power

Pomegreat – the company that gave birth to the pomegranate phenomenon in western Europe – has come up with a novel way of differentiating its juice. Does the exclusive, antioxidant-rich ‘elixir’ put it ahead of rivals in the fruit-juice ‘antioxidant war’? RICHARD CLARKE reports.

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S U P E R F R U I T C A S E S T U D Y

ANTIOXIDANT WARS

Pomegreat’s ‘elixir’ is the latest salvo to be fired in the “antioxidant wars” between purveyors of various fruit juice drinks. The innovation comes against a backdrop of increased activity around antioxidants from rivals, in particular cranberry juice drinks supplier Ocean Spray and grape juice manufacturer Welch’s. Both of these companies have undertaken heavyweight TV advertising campaigns in the UK to promote the antioxidant power of their drinks.

Pritchard says Pomegreat lacks the financial clout of these two companies, but nonetheless it has managed to find £1.2 million ($2 million/€1.5 million) to spend on a high profile press advertising campaign, with adverts appearing regularly in national newspapers and glossy magazines.

As in Ocean Spray’s cranberry campaign, Pomegreat has a clear focus on targeting women, with a message suggesting that drinking Pomegreat can make you look better. There are two adverts, both featuring a beautiful woman lying naked on a bed surrounded by pomegranates.

The copy for one, under a banner saying: “Does my bum look great in this?”, reads: “Sexiness is about knowing you look good, from every angle. Take care of your body and you’ll love everything about it. A refreshing

glass of Pomegreat has twice the natural antioxidants of a glass of cranberry juice drink. It’s a tasty way to help you feel healthy and sexy. So drink up and stop sitting on your assets. Boosting your vitality has never been so much fun. Pomegreat. Get your juices flowing.”

“We chose this theme because we wanted to make an impact,” says Pritchard. “We

don’t have the budget of some of the large multinationals, with whom we are competing for shelf space and sales. We are a small business compared with someone like Ocean Spray or Welch’s. Welch’s may be small in the UK, but it’s got a great big very wealthy parent in the US. We needed to make an impact on a considerably smaller budget than our competitors.”

Although the campaign specifically features the new Ruby drink, it is designed to raise the profile of the Pomegreat brand in general. And Pritchard says it has worked. By his own admission, it has been a “tough year” in the UK’s juice category, marked by rising raw material prices and economic downturn. Retail sales have remained broadly static for the Pomegreat brand, he says. IRI Infoscan figures (which measure only supermarkets) put them at £15.2 million ($26 million/€19.6 million) for the year to 6 September 2008.

But he adds: “Having said that, we’ve seen some green shoots. Our advertising campaign has been pretty successful in raising awareness and in some of our biggest customers we are seeing our business improving on a like for like basis, which is encouraging at this rather testing time.”

Ruby and Sapphire have actually replaced a previous Pomegreat chilled drink, a 100% juice called Pomegreat 100. The early indications are that this has given sales a boost. The brand had a growth spurt in the 12 weeks to 6 September, with chilled sales up 15.5% compared with the same 12 week period in 2007.

GOING DUTCH

As if a raft of product innovation wasn’t enough, Pomegreat has also been exploring markets beyond the UK. A year ago, it launched into the Netherlands, the first of what looks set to be many overseas forays.

The company introduced its ambient range through a licensee, and although Pritchard admits to teething problems, he insists the value of the brand in the Netherlands is worth “significantly more” than the company invested in taking it there. Pomegreat products are now listed in Albert Heijn and Co-op stores.

“We launched in Holland because we felt it was a good market for us,” he says. “We needed a test bed to learn about internationalising the Pomegreat brand.

“It’s been fairly painful, quite frankly, but we’ve learnt a huge amount and we are now beginning to get the opportunity to look at other markets. We now understand the implications of entering a market – how much it costs, for instance, and where costs can get out of control a little bit. How do you manage the biggest retailer in the territory? These are big issues for a small business like ours.

“There are a few other brands out there so we weren’t the first, which has been one of our challenges. We’ve learnt from that. But the brand is worth significantly more in Holland than the investment we made behind it. It doesn’t change the fact that on a cash basis it’s been a pain in the arse, quite frankly. But we’ve held our listing in Albert Heijn and we’ve grown our business from that platform. We have a future in Holland.

“We now know how we want to enter future markets and how we don’t want to enter future markets. Having the right resources behind it and the right person on the ground in the territory are absolutely critical. We are working closely with one of our major suppliers on developing new markets, and that’s something that will start to take shape in 2009 and 2010.”

-42.8% -43.4% +0.7% +127.7%

-49.6% +9.2% -85.8% -21.0%

+15.5%

The Pomegreat (and Welch’s) high antioxidant brands have so far proven resilient in a market in which many leading brands are declining. UK market data provided by Nielsen.

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“Our repositioning was done in attempt to grow the category as well as our share,” says Pomegreat marketing director Rob Sutton. “Currently, we estimate that consumers of the £33 million ($56.5 million/€42.4 million) pomegranate sector are segmented into two groups.

TARGETING THE LIFESTYLERS AND THE “HEALTH-CONCERNED”

“The first is ‘health-conscious lifestyle’, made up of high volume purchasers of fruit juice, generally focused on well-being, but also high on refreshment. We value this segment at around £28 million ($48 million/€36 million).

“The second group is ‘health concerned’ – made up of slightly older, early adopters of the pomegranate, looking for purity and quality first, and lower refreshment value. We value this at about £5 million ($8.5 million/€6.4 million).

“Pomegreat 100 was positioned at the latter group, and the new Ruby and Sapphire juice drinks are intended to actively take on the more mainstream opportunity within the chilled juice category.”

The Pomegranate 100 range retailed at a hefty £3.29 ($5.64/€4.23) for one litre. Ruby and Sapphire are priced much lower, retailing for £1.99 ($3.40/€2.56) for one litre in Tesco. “Ruby and Sapphire are intended to be more accessible, from both a price and a taste point of view,” says Sutton.

Nonetheless, the new products still carry a significant mark-up on many other juice products. For example, they carry a big

premium on Pomegreat’s ambient range in which products sell for between £1.21 and £1.38 ($2.07-2.36/€1.56-1.78).

They are also more expensive than rival Ocean Spray’s chilled range, Grower’s Select. Ocean Spray Cranberry & Pomegranate juice drink sells in Tesco for £1.50 ($2.57/€1.93) a litre, for example, although other products in this range sell for more, at £1.74-£1.79 ($2.98-3.07/€2.24-2.30).

The price of Ruby and Sapphire is more in line with Welch’s Purple Grape Juice, however, which retails for £1.94 for a litre ($3.33/€2.50).

INNOVATION CONTINUES APACE

With Ruby and Sapphire now on the market, Pomegreat is aiming to raise the profile of the pomegranate further still. The company

has commissioned research to underline its message about the antioxidant power of pomegranates. The meta-analysis of previous clinical studies is being undertaken by Dirk Budka, a London-based nutritionist, with results due to be published soon.

Pomegreat is also continuing apace with innovation. The next new product to hit the market will be a 100% pure pomegranate juice, designed to appeal to the consumer group that was predominantly buying the now defunct Pomegreat 100 range.

Due to launch in the next couple of months, Pomegreat Pure will be, says Pritchard, “a superb not-from-concentrate 100% pomegranate juice”.

He believes the new juice will overcome what he says is the problem of 100% pomegranate juice tasting unpalatable. “One of the main challenges with NFC pomegranate juice is that from a taste perspective it fails pretty much every time. With this product, for the first time, it’s quaffable. People won’t drink it thinking: ‘I’m drinking this purely for health’. They will drink it because they like the taste of it and because it delivers health benefits as well. Pomegreat Pure will address the taste issue without impacting the health benefits.”

The juice will be made using a technology developed in Israel. “It’s a process in which the seeds, the pith and the skin are spun in a very particular, delicate way which allows the juice to come through without any bitterness in the taste,” says Pritchard.

Pomegreat Pure will retail, like Pomegreat 100, for £3.29 ($5.64/€4.23) – although this will be for 500ml rather than one litre. But Pritchard is unfazed by the challenge of launching such a premium product on the market, even at this time.Press advertising for Pomegreat Ruby & Sapphire

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S U P E R F R U I T C A S E S T U D Y

WHAT THE EXPERTS THINK ABOUT POMEGREAT’S MOVE

Karl Crawford, business leader for food & health at New Zealand’s HortResearch, the world’s biggest fruit research institute, thinks Pomegreat’s elixir concept could be applied to other fruits to create more whole-fruit juice drinks:

“Take a really common juice fruit, like an apple. To make apple juice, you dump all the apples into a fruit press and you squeeze them down and squish as much of the juice as possible out of them.

What you’ve got left over is a product called apple pomace, and in that there’s all the fibre from the fruit, as well as the pips and the stalks. A lot of the phytochemicals, or antioxidants, are left behind in the pomace. If you could add the pomace back into the juice, you could supplement the antioxidants in the juice, like Pomegreat are doing.

“What these guys are doing is similar to what they do with mangosteen juice, which is a very expensive, premium product made by pulping the whole fruit including the rind. In the same way, Pomegreat is using the inedible part of the fruit to get a higher antioxidant content.”

Don Williams, chief executive of London-based branding and design consultancy PI Global, has reservations about Pomegreat’s new product:

“Pomegreat is playing a risky game. One of the biggest challenges they face is that the brand is very narrow in terms of where it can stretch. In the mid to long-term, descriptive brand names like this are a brand death sentence from the moment they are conceived. They rely entirely on the relevance of a product.

“‘Pome’ will only be ‘great’ as long as it remains in the public consciousness, and history shows that these superfood fads have a limited life. They work while there is hype surrounding them, which is usually until the next superfood comes along.

“Of course, manufacturers are desperate to find new ways of leveraging the assets of their brands and this is clearly no exception, particularly as it doesn’t seem to have many lucrative avenues it can feasibly explore. So finding yet another ‘health benefit’ claim will, I have no doubt, have a select group of consumers parting with their hard-earned cash.

“It’s also worth noting that if you make something very expensive it becomes immediately credible and desirable, regardless of whether it actually warrants the price tag or not. It’s the perception that’s important – it costs a lot so it MUST be good.

“However, times are hard, and when times are hard consumers tend to juggle the household budgeting to allow them to spend extra on things that make their lives a little more pleasurable by spending a little less on what they might see as more commodity purchases.

“Ultimately, though, what ordinary consumers look for in products like these is taste and trust, and more and more it’s hard to find juices that aren’t natural or that don’t taste good. So, when money’s tight, we may just take that extra few seconds to read the small print and choose a cheaper but equally natural brand. It’s hardly surprising that Innocent have been feeling the pinch.

“The juice category is undoubtedly too confusing, too difficult to decode, too hyped and much of it too expensive. Only the brands that offer a good product, at a reasonable price, will have real longevity. Fad-based products will continue to come and go until, that is, someone bottles the ‘Elixir of Youth’. Then we’ll all be spending our pensions on it….for a very long time!”

“It’s very expensive but when people taste it they’ll understand exactly why it’s so expensive. It’s a fantastic product. We are not looking to be mass market at £3.29. We expect it to cover an upper end of the market we know is there. Pomegreat 100 had a strong core of consumers attached to it, and we know that core is out there.”

It will need to be as good as Pritchard claims: its competitor will be Pom Wonderful’s 100% pomegranate juice, which at £1.99 ($3.40/€2.56) for 473ml in Tesco looks a bargain by comparison.

But Pomegreat is a company that could never be accused of playing it safe. Facing challenging market conditions and stiff competition from much bigger companies, it is following a strategy of genuine innovation, premiumisation and creative marketing. In an era where caution has become the watchword, Pomegreat clearly believes there are still rewards to be won by those willing to take risks.

Pomegranate Drinks Share of Juice Category

pomegranate

juices are

worth £33m

3.0%of total juices

Pomegranates are becoming established as a profi table new fruit variety within chilled juice, of greater importance than Pineapple, Grape and Tomato.

Juice Share of juice market

Orange Juice 59%

Apple Juice 26%

Cranberry Juice 4%

Grapefruit Juice 3%

Pomegranate Juice 3%

All Other Juice 5%

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O M E G A 3 C A S E S T U D Y

Norway’s Pharmalogica is not the first food manufacturer to add omega 3 to a fruit juice – and it certainly won’t be the last. But the company is finding success by marking itself out from the competition with a focus on the freshness of the omega 3 ingredient it uses in its drinks range, and the high doses it includes.

Pharmalogica buys in salmon oil from fellow Norwegian company Marine Harvest Ingredients and encapsulates it in an emulsion in the juice. There’s nothing unusual in that, perhaps. But the process by which it does this, says the company, is unique and patent-protected and prevents fish oil – which is notoriously unstable – from oxidising.

Pharmalogica says this is important because studies have suggested that oxidised omega 3 is less effective at providing health benefits than omega 3 that is fresh.

Whether or not this is the case – and the company is funding a major new trial in a bid to prove it – Pharmalogica is enjoying brisk business in its home market.

Since launching its range of Smartfish juices in January – both adults’ and kids’ products – distribution has increased dramatically, from 200 stores then to 1,100 now, a number which includes the whole Norwegian Co-op network and outlets owned by supermarket operator Norges Gruppen.

Pharmalogica has just added a lightly carbonated beverage to the range – Smartfish MyOmega – and is planning new products with ingredients other than omega 3. In addition, talks are at advanced stages with potential distributors in the US and Germany.

Despite being based in Oslo, Pharmalogica came late to Norway’s grocery market, and its story begins in Asia. The company was founded six years ago by Janne Sande Mathisen and her husband Henrik Mathisen, who had identified omega 3 as a nutrient offering a good commercial opportunity. So sure were they that it was a good bet, in fact,

that they didn’t even bother carrying out any consumer research.

“We just went with a gut feeling,” says Janne Sande Mathisen. “We were very interested in health ourselves and we had read about omega 3. We felt it had a strong scientific base.”

As parents to young children, the couple decided to develop a range of good-tasting omega 3 supplements for kids, marketed on the basis that the fish oil they contained would remain fresh until the point of consumption, thereby enhancing its benefits.

Mathisen was no stranger to the food industry, having worked for Norwegian dairy co-operative Tine before starting Pharmalogica. She was employed by Tine in a commercial role, but worked closely with the company’s new product development department. This gave her a taste of the importance of the technical aspects of creating food and nutrition innovations.

With this in mind, the Mathisens established a scientific advisory board and set about developing the technology to keep the omega 3 fresh – something they achieved via

the aforementioned patented process.The first product they developed was a

sachet supplement – but it was not launched on its home market. “The Norwegian market for supplements is crowded,” explains Mathisen.

Instead, it was introduced in Singapore. As it turned out, the brother of one of the members of Pharmalogica’s scientific advisory board had a contact in the country who was keen on the Smartfish concept.

It was as simple as that, and Mathisen admits that, at the time, she and her associates were playing things somewhat by ear. “We didn’t always have a clear idea of where we would be in three years’ time,” she confesses.

But in spite of the apparent lack of strategic planning, it soon became evident that the care put into developing the Smartfish brand and the technical quality of the product were paying dividends. After a successful launch in Singapore in 2003, the supplements were rolled out to Hong Kong and, just recently, China. They are also being sold in South Africa.

With things ticking over nicely in Asia (although Mathisen declines to reveal sales figures), Pharmalogica set about developing an omega 3 concept for Western markets.

The result was a range of Smartfish drinks for adults called Smartweek, and Smartfish drinks for children carrying Disney licenses Winnie the Pooh and High School Musical. The drinks mix exotic fruit flavours such as jackfruit, aronia, lychee and pomegranate with tastes more familiar to northern European consumers such as apple, pear and mandarin.

“The drinks represented something very new so we were prepared to launch them in Norway,” says Mathisen. “There is nothing else like this on the market here.”

One of the things that makes Smartfish drinks stand out, Pharmalogica believes, is the high dosages of omega 3 in the drinks.

Norwegian launch for Smartfish looks a smart move

Making a focus of the benefits of the high dose of omega-3s used in its fruit juice brand, and finding a way to keep the omega 3 fresh, have been key to the success of Pharmalogica in its initial markets of Singapore, Hong Kong and China. Now the drinks are enjoying increasing distribution in their homeland of Norway, just months after their launch in January this year. RICHARD CLARKE reports.

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O M E G A 3 C A S E S T U D Y

The adult product Smartweek, and the new MyOmega, contain 940mg – about double the generally accepted recommended intake for an adult (although there are no official recommended doses), of which 300mg is EPA (eicosapentaenoic acid), 200mg DHA (docosahexaenoic acid) and 100mg DPA (docosapentaenoic acid). The kids’ drinks offer 470mg of omega 3 (150mg EPA, 100mg DHA and 50mg DPA), which the company says gives the generally recommended daily intake in a 200ml serve.

Mathisen says Pharmalogica went for high doses because consumers in Norway care about the levels of omega 3 in a product. “If it’s too little, they don’t bother,” she says.

But perhaps the most interesting selling point Pharmalogica promotes is the claim its omega 3 stays fresh because of the way it is processed. That gives the drinks, which are packed in 200ml aseptic Tetra Pak cartons, a shelf life of three months for Smartweek and the kids’ SmartFish products and six months for the carbonated product MyOmega. Mathisen says this is achieved by combining the marine oil with antioxidants in the form of rosemary extract and tocopherols. “There are of course also other steps in the process which are essential to keep the freshness,” she adds, “but I don’t wish to reveal more than this.”

Pharmalogica is to fund its own trial to establish whether fresh omega 3 is better for health, as Mathisen explains. “We are planning a comprehensive clinical trial in which the main issue is whether the health benefits of marine omega 3 supplements to humans are limited by oxidation. Few human trials have addressed this issue, the sample sizes have been small, and most have been in subjects with medical conditions.”

The study, which begins in January 2009 and concludes in December 2011, will compare Smartfish with both fish oil supplements and fish itself. The trial will be conduced by Norway’s NIFES (the National Institute of Nutrition and Seafood Research) and the University of Oslo.

Health claims are kept to a minimum thanks to Norway’s strict rules in this area. MyOmega reads: “MyOmega contains a high dosage of Omega 3. Enjoy the well-documented health effects. Think n drink.”

Pharmalogica is very open that its drinks contain fish oil, even though evidence is mounting that some consumers find the addition of marine-derived omega 3 to some functional foods unappetising.

Also on MyOmega, for example, the

carton reads: “Smartfish MyOmega is made of lots of fruits rich in antioxidants – and a dash of natural oil from Norwegian salmon.” The source of the omega 3 – and its freshness – is also discussed openly on the Smartweek and kids’ products.

“Sometimes you have to tell people what it is,” says Mathisen. “If you try to hide that it’s omega 3 from fish then you’re not standing up for what’s in there. We want to make it so clear that this is really the relevant dosage, that it is a very healthy recipe with no sugar or preservatives, and that it’s fish – but it’s natural and really good for you.

“I think we scare off a lot of people, but our products also have an edge to them which some people like.”

It does seem that the range is considered by consumers to have a certain “edge”. Part of Smartfish’s success is that it has built up a cult following among Norway’s snowboarding community. This group, says Mathisen, are particularly interested in wellbeing because of the physical nature of their hobby, and they like Smartfish as a healthier alternative to mass-market beverages such as Coke.

Smartfish drinks are endorsed by Terje Hakonsen, Norway’s most famous

snowboarder who, incidentally, also holds a stake in Pharmalogica. Hakonsen’s endorsement is central to an advertising strategy focused around cinemas, the internet and press. Pharmalogica also attends snowboarding events to keep its profile high in this community.

New MyOmega should help enhance Smartfish’s status further. Its carton design is more modern than Smartweek. “I guess it has a bit of a cooler look,” says Mathisen.

Smartfish drinks are far from cheap, even in a country noted for high prices such as Norway. Smartweek retails at around €1.80-1.90 ($2.45-2.59) for 200ml, while the kids’ drinks sell for about €1.60 ($2.18). MyOmega is more expensive – around €2.20 ($3.00).

“Smartfish is not a cheap product,” says Mathisen. “But then again it is not that expensive and it’s in line with upmarket juice drinks.”

Pharmalogica has plans to add to its product range, with a version of MyOmega containing lycopene in development. But Mathisen says omega 3 will remain central to the company’s offerings.

Growth will come not just from NPD, however, and expansion into the US, other parts of Europe and also Asia is on the cards. The company isn’t profitable yet, but expects to be next year.

With momentum building following a successful launch on home ground, Pharmalogica will be hoping consumers further afield will also buy into its central messages about high dosages and freshness of omega 3, to take this emerging business on to the next level.

Fruit juice with marine oil in water emulsion, providing children with the daily recommended dosage of Omega 3 (EPA, DHA and DPA) in one 200ml Tetra brick.

Fruit juice (from concentrate of apple, pear, pomegranate and aronia), fi sh oil, emulsifi er, natural raspberry and orange fl avouring, rosemary extract, natural tocopherols.

MyOmega’s pack promotes freshness with the message: “The marine oil in Smartfish MyOmega is super fresh and kept fresh with natural antioxidants – trust your taste buds”.

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W E I G H T M A N A G E M E N T C A S E S T U D Y

Dairy start-up promotes satisfaction with fewer calories

Spotting a gap in the market for low-calorie, all-natural snacks, former college athletes Lynn Graham and Lara Jackle have created a dairy smoothie that offers satiety without weight gain. Sweetened with erythritol and containing fewer than 100 calories, the drink is fi nding favour with the Weight Watchers community. SHENOA CHEE reports.

San Francisco-based start-up LightFull Foods is catering for the health and weight-conscious with its Satiety Smoothie, said to be the only smoothie available in the US that is both all-natural and low-calorie. The company says that the product has been tracking well against expectations since being launched in May 2006 and plans for expansion are underway.

Co-founders of LightFull Foods Lynn Graham and Lara Jackle were athletes in college before embarking on careers in the natural food industry. Jackle was a marketing and sales executive at Balance Bar and Cold Fusion, and Graham previously worked for Clif Bar and Luna Bar.

The pair found that while they were busy working in roles that confined them to a desk, their eating habits remained the same as they had been while they were training in college. The resulting weight-gain encouraged them

to seek out low calorie snacks. But the duo found there was a lack of

offerings that combined the benefits of being low in calories, all-natural and satisfying. The idea for the Satiety Smoothie followed, the partners setting out to create a snack food that would fulfill the low-calorie and all natural criteria, provide on-the-go convenience, and create a feeling of lasting satiety.

Development began in 2004, and the resulting dairy drink was test-launched in January 2006. The pilot saw the smoothie introduced into Whole Foods Markets and Wegmans, retail chains that Graham – who is VP of Marketing for the company – described as early adopters. “They are at the forefront with new products, they embrace them,” Graham said, adding that if a product does well in these chains, it can be expected to do well in the mainstream.

The Satiety Smoothie did do well in Whole Foods Markets and Wegmans. Graham attributes this to the unique attributes of the smoothie. “Luckily there aren’t any other products out there that offer quite a bit of satiety for 100 calories or less and that are still all-natural,” she said. As a sweetener, LightFull uses erythritol, a very low calorie sugar alcohol.

There are five flavours in the Satiety Smoothie range: Mango Oasis, Chocolate Satisfaction, Peachy Cream, Strawberry Bliss and Café Latte. Graham says that chocolate is by far the best-selling flavour because it allows people to enjoy an indulgence even if they are managing their weight. Café Latte takes second place – the company promotes this blend as a low calorie replacement for the Starbucks Frapuccino which the LightFull Foods website (www.lightfullfoods.com) says can contain up to 700 calories.

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W E I G H T M A N A G E M E N T C A S E S T U D Y

A full product launch took place in May 2006 and the Satiety Smoothie is now available nationwide in the US in just under 2000 stores, with good penetration of natural grocery stores. Distribution is focused on the natural food hubs of the East Coast, the West Coast and Colorado. The smoothie is also available online via Amazon.

NATURALLY ATTRACTIVE TO DIETERS

LightFull Food’s brand statement is “We help people juggle without struggle” and the main health benefit of the smoothie is described as being to assist people in achieving or maintaining a healthy weight naturally.

LightFull’s satiety benefit is based on its content of fibre and protein. Graham’s opinion is that the science of satiety was nothing new; at the time the product was being developed it was already well-known that fibre and protein help keep people feeling full.

Each 244ml bottle provides 5g of fibre – the prebiotic inulin, from chicory root – as well as 5g of protein from dairy (including whey). Additional calcium is added so that the drink provides 20% of RDI. The company made the decision not to supplement with any additional vitamins, for two reasons: firstly, there are very few vitamins that people do not get elsewhere, and secondly, supplementation can have an adverse effect on the taste.

These attributes have helped LightFull, which is gluten-free, gain traction with the natural food community and also within the Weight Watchers community, which in the United States has a large following. The Satiety Smoothie, being low in calories but high in fibre, is worth only one point in the Weight Watchers system in which foods are allocated points according to their content of kilojoules and saturated fats – making it an attractive proposition to dieters.

However, Graham says that people who are watching their weight have a tendency to become focused more on weight than on health. “We are trying to discourage this,” she commented. “You do not have to compromise and consume artificial products. Unfortunately people do this. We want to give them something all-natural so they don’t have to do this. We give them the option”.

As with most start-up companies, small budgets for marketing lead to creativity of approach, and LightFull Foods has employed ‘guerilla-marketing’ methods. “We intercept people at Weight Watchers meetings and

hand out samples,” said Graham, noting that educating people and having them try the smoothie is the best way to spread the word. The company has also been promoted through third parties, such as the blogger Hungrygirl (www.hungrygirl.com), whose website offers “Tips and tricks for hungry chicks.”

PREMIUM POSITION

Graham said that the positioning of the brand was in the premium space as there was no compromise in ingredients, and consumers must be willing to pay for that. As with many healthy products aimed at time-poor cash-rich customers, the target consumer had a higher income, an education above the average, and was willing to pay for the benefits the smoothie offers. Graham said that smoothies tended to skew younger, so college students in their twenties were potentially drinking the product, but the satiety age bracket was from 30-50. Therefore, the company had the 20-50 demographic covered, she said.

The smoothie’s price ranges from $2.49-$2.99 (€1.77-€2.12) depending on the retail venue, and if purchased online in a pack of 12 the price can drop to $1.99 (€1.41) per bottle. Prices of other brands of smoothie range considerably: all-natural offerings can be around the $3.00 (€2.13) mark, while products that are artificially sweetened are considerably less expensive and may cost approximately $1.25 (€0.89) in a multi-pack, or up to $2.00 (€1.42) for a single unit. The Satiety Smoothie is sold at a premium to these prices, because of the higher raw material costs.

Graham believes that there is no close competition for the smoothie, noting that healthy snackers may choose an apple, or a bar. Healthy bars are the smoothie’s closest competition; all other low-calorie smoothies that Graham is aware of contain artificial sweeteners, while other natural smoothies may contain as much as two-to-three times the calories in the Satiety Smoothie.

CONVENIENCE IS KEY

As a result of the test launch, the company realized it had to make the packaging more convenient. During the test the smoothie was packaged in an 11-ounce Tetra-pak, but consumers indicated that they preferred bottles with a screw-on top to give the added convenience of being able to carry

them around without the danger of spills. The serving size was also modified, and is currently 8-ounces (244 ml).

Graham said it was still early days for the product, but added that sales matched expectations. She believes that the product has potential mass-market appeal and the company plans to expand its product range. It is currently developing new snack products which will complement the smoothie, and offer the same benefits of satiety, low calorie, all natural, convenient snacking.

NUTRITION FACTS PANEL FOR LIGHTFULL SATIETY SMOOTHIE

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B R A N D F A I L U R E C A S E S T U D Y

Netherlands-based ingredient company Lipid Nutrition aims to make PinnoThin one of the ingredients that food, beverage and supplement companies can turn to if they want to market a product for satiety.

“The idea of satiety, of something that suppresses your appetite, is easy to understand for consumers,” asserted John Kurstjens, the company’s international marketing manager, in an interview with New Nutrition Business earlier this year.

“Many consumers know they have to reduce food intake to stay healthy – and a product that can help them to do that is something that’s easy to explain and for a food brand it’s an easy message. Other types of weight management – fat burning, for example – are more diffi cult to explain to the consumer.”

When Lipid Nutrition’s attention discovered that in Korea farmers would eat pine nuts in the morning so that they could work all day in the fi elds without feeling hungry, they began to investigate pine nut oil’s effect on satiety. The active component of the oil was found to be the fatty acid pinolenic acid, present in high concentrations in the nuts of the Korean native pine tree (Pinus koraiensis).

Pinolenic acid stimulates the release of two hunger-suppressing hormones in the body, CCK (cholecystokinin) and GLP1 (glucagon-like peptide 1). CCK is usually released in the upper part of the small intestine in response to the presence of fat or carbohydrate in the duodenum. GLP1 is released in the last part of the small intestine in response to fat or carbohydrate in the duodenum. GLP1 is established as a potent regulator of food intake in humans and both hormones exert their

effect by sending satiety signals to the brain, signifi cantly reducing the urge to eat.

An in vitro study comparing Korean pine nut oil with Italian pine nut oil and linoleic acid and conjugated linoleic acid (CLA), found that the effect of pinolenic acid in stim-ulating the release of the appetite-suppressant hormone CCK was significantly larger.

The effect was next evaluated in a randomised, double-blind crossover clinical study conducted by TNO, the Netherlands’ leading nutrition research institute and one of the leading research centres of its kind in the world. Women who were overweight but otherwise healthy middle-aged women were given a simple breakfast that included 3g of PinnoThin or 3g of a placebo. The subjects who were given PinnoThin were found to have signifi cantly less desire to eat than those given a placebo and within 30-60 minutes PinnoThin had signifi cantly increased the amount of CCK and GLP1 hormones in the blood.

PinnoThin has many things in its favour, such as the support of several scientifi c studies which have formed the basis of a

health claim petition to the European Food Safety Authority (EFSA) under the European Union’s new health claim regulations.

Lipid Nutrition also aims to provide marketing support for companies who use PinnoThin in their brands through the www.PinnoThin.com consumer website and PR. The company is also aiming for co-branding, whereby the PinnoThin logo will appear on product packaging.

Today, a growing number of dietary supplement brands in the US, Europe and Asia use PinnoThin as their active ingredient. Naturally Drinks was the fi rst company to market a food or beverage containing Pinnothin, launching the Naturally Gorgeous drink brand in the UK market in January 2008. A blend of juice and low-fat milk, it delivered the recommended 3g dose of PinnoThin in each 250ml serve with the ingredient added to the juice as an emulsion. As a chilled, short shelf life product there were no oxidation concerns with PinnoThin.

The brand was marketed on the basis that it could help the consumer feel “fuller for longer” and PinnoThin was described

Satiety smoothie fails to flyThe launch of the Naturally Gorgeous beverage brand, marketed with a weight-management message, was the fi rst foray into the food and beverage category for PinnoThin – an appetite-suppressing ingredient based on Korean pine nut oil that is being commercialised by Netherlands-based lipids specialist Lipid Nutrition. But within a few months of its launch the Naturally Gorgeous brand had been withdrawn from the market. It is a case study that illustrates that no-matter how good the science of the ingredient, the risk of failure is high unless brand marketers can avoid making basic errors in strategy. By JULIAN MELLENTIN.

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in marketing as “a combination of essential fats that helps us take control of our hunger urges”.

Two fl avours were launched – Blood Orange & Strawberry and Pineapple & Coconut – and Naturally Drinks also had plans to launch Blueberry & Mango and Chocolate, Orange & Espresso fl avours.

On-pack, messages were kept simple, with a distinct lack of scientifi c claims. On the side of the one-litre cartons it read:

We thought it was time for the smoothie to come of age so we created Naturally Gorgeous so you can enjoy divine taste, great texture and sophisticated ingredients. Be Naturally Gorgeous. Be you.

The PinnoThin logo appeared on the back of the carton underneath the ingredients list, which included as an entry “Pine Kernel oil”, and the nutritional information, along with the text:

Pine kernel oil contains essential fats which helps take away the need to be naughty, keeping you fuller for longer.

Consumers were also advised that: 250ml is the perfect portion to keep you fuller for longer.

Naturally Drinks described the primary target audience for Naturally Gorgeous as both “male and female consumers aged between 20 and 50 years who take an active interest in their health but do not wish to compromise on taste while gaining nutritional benefi ts”.

Priced at £3.29 ($6.45/€4.36) for a 1-litre carton, Naturally Gorgeous was retailed at a signifi cant premium not only over standard chilled fruit juices but also premium smoothies: 1-litre cartons of Innocent’s Superfoods smoothies retail for £2.26 ($4.43/€2.99), and 1-litre cartons of Tropicana smooth orange juice for £1.68 ($3.29/€2.23).

But getting consumers to pay a premium price for a food or beverage with an added health benefi t is no easy task. It’s also an unavoidable fact that most companies have no choice but to sell their new health-enhancing foods or beverages at a premium if they are to recover the cost of added functional ingredients, few of which are cheap. Getting consumers to pay that premium is no easy task, however.

The marketers of Naturally Gorgeous clearly believed that the satiety benefi t was a suffi ciently strong primary – indeed only – product benefi t. But Naturally Gorgeous faced many challenges:

• a new brand: consumer adoption of new and unknown brands is always slow.

• a new ingredient, which is, as Lipid

Nutrition themselves said: “a change for the food ingredients industry – for the ingredient to be known and accepted by the end-users if it is to be accepted.” Where an ingredient is new it may not be accepted by the consumer – or only very slowly

• a new benefi t: satiety is a new benefi t in the supermarket – new to both consumers and the chiller cabinet – and communicating it and getting it established in the minds of consumers will take time, effort and a continuing investment in consumer education.

• the company behind the brand was a small one with limited resources to invest in growing its brand

• the product had no point of difference from any other product alongside it in the chiller cabinet – not in fl avours, nor in packaging. The health benefi t was the only point of difference – and the last fi fteen years of functional food marketing has made it clear that a health benefi t alone is not enough of a point of difference for most consumers.

• lack of packaging innovation: Naturally Gorgeous made the mistake of packing its drink in a standard gable-top carton, enabling consumers to see at a glance just how expensive it is compared to other brands.

• moreover, the drink was a fruit-and-milk combination – a concept which has limited appeal in the UK, where consumers prefer products that are either clearly purely dairy or purely juice.

It’s almost as if the makers of Naturally Gorgeous set out to maximise their risk of failure, entering the chiller cabinet – where the battle for shelf-space is one of the most bitterly fought contests in the supermarket – with nothing to offer for its signifi cant price premium except a new benefi t.

Naturally Gorgeous was listed in upscale supermarket chain Waitrose, but failed to obtain listings with any other supermarket groups and by October 2008, nine months after launch, Naturally Drinks confi rmed to NNB that the product was no-longer on sale.

In today’s market, ingredient companies have to do as much as they can to help branded food and beverage companies that choose to use their ingredient. Successfully commercialising science is not only a question of developing a scientifi cally proven ingredient, it’s also – perhaps mostly – about helping business partners reduce their risk of failure. Ingredient companies can best achieve this by understanding the rules of success – and the most-common causes of failure – and helping consumer goods companies understand how to apply them.

B R A N D F A I L U R E C A S E S T U D Y

0

.50

1.00

1.50

2.00

2.50

3.00

3.50

£/litre

Tropicana Smooth orange juice

£1.68

InnocentSuperfoodssmoothie

£2.26

Naturally Gorgeous smoothie

£3.29

SATIETY AT BEYOND SUPERPREMIUM PRICES

Naturally Gorgeous sells at a significant premium not only over standard chilled fruit juices (nearly 100%) but also premium smoothies (45%).

Source: Waitrose supermarkets (www.Waitrose.com)

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S TA RT- U P C A S E S T U D Y

Deborah Maxwell, the brains behind a new UK functional beverage called Big Shotz, believes she has created a unique product.

The concept, a chilled fruit juice shot packed with 20 nutrients, is neither a simple drink in the purest sense, nor a straightforward dietary supplement. And, she asserts, market observers are already unsure how to classify it.

“I was at a conference recently,” she says, “and a guy from Euromonitor said to me: ‘we had to have two meetings last week about you, because you really are starting a new category’.”

Big Shotz is a 120ml bottle of mango and passionfruit juice fortified with significant levels of 11 vitamins, six minerals, omega 3, prebiotic fibre and ginseng.

It has gone on sale in UK supermarket Waitrose, café chain Coffee Republic and has a listing with foodservice wholesaler Brakes, which will widen its potential distribution to thousands of independent cafes and sandwich shops. Listings in other major grocery chains are anticipated in the New Year.

The product is not being pitched as a one-a-day concept like most other active health shots – and at a recommended retail price of £1.99 ($3.55 / €2.52) per 100ml bottle this is probably wise. Instead, Big Shotz is designed for busy, on-the-go consumers such as city workers and mums, who feel they do not always get the nutrients they require from their diet. Projected sales, which Maxwell declines to reveal, are based on target consumers buying Big Shotz two to three times a week.

Maxwell is so bullish at the prospects for Big Shotz that she believes it will not fall victim to the economic downturn which has been blamed, for example, for a slump in sales of expensive smoothies in the UK.

“Consumers are going to be more squeezed than before, and one argument might be that they wouldn’t buy Big Shotz where they would have done so before. But another argument would be that when people are feeling stressed, under pressure and down, the one thing they won’t stop buying is something that is giving them a boost.

“I’m sure that if one could look through a looking glass and see what our sales would

be if there was a boom going on, compared to what we are going to see in reality, I would imagine they would be more. But do I think it’s going to affect our chances of success? No, I really don’t.”

Maxwell identifies with her target customers, and the back-story of how Big Shotz came into being is rooted in her own life experiences. In 1979, after graduating with a law degree, she moved to London to practise in the lucrative field of corporate finance, got married and started a family.

She found it a strain working long hours while bringing up young children, and became concerned about her diet. “I just felt exhausted,” she remembers, “and I realised I wasn’t eating the right foods every day, so I started looking into supplements.”

Now aged 50, Maxwell is quite evangelical about the benefits of supplementation. “I’ve been taking supplements for nearly 30 years and I think I have energy levels way beyond a lot of my 50 year old friends,” she says.

Maxwell believes there are many people facing the same challenge she was: balancing a busy lifestyle with healthy eating. But she realises taking supplements in capsule form, as she did, is not right for everyone.

“We all try to eat the right diet, but we don’t always achieve it. And at the same time

you have the government putting on us what I call the great 21st century guilt-trip. Are you getting your five a day? Are you eating too much salt and fat? Consumers do turn to supplements. But what I have learned is that the average person might buy some supplements, but then they forget to take them. They leave them in their bathroom cabinet, or in the bottom drawer in their desk at work. Or they run out and they fail to replace them. They know they’re not getting the nutrients they need but don’t know what to do about it.”

Maxwell thinks Big Shotz is the answer. Sold as a single bottle, rather than in multipacks, it is being marketed as a grab-and-go option. Even in the supermarkets where it will be sold, it will be merchandised alongside sandwiches in the lunchtime fixture, usually placed at the front of a store.

And as well as public cafes and sandwich shops, it will be sold in the staff canteens located inside the offices of big banks and legal firms. The latter are, she says, “stuffed full of our target market of tired, busy 25-45 year olds, male and female, intelligent and know what they should be doing, but they don’t always do it.”

The key to the product’s distribution is, says Maxwell, making sure it is “widely available in places that people visit every day”. She adds: “It’s about bringing supplementation to people, in acknowledgement of the fact that people don’t go out and find it themselves.”

Big Shotz was devised three years ago over lunch with a business acquaintance, former Procter & Gamble executive Keith Eden. He is now chairman of Shotz Health, the company that markets Big Shotz and which Maxwell founded, having sacrificed her highly paid job as a lawyer and her life savings.

Maxwell and her co-investors – Eden and CEO David Farrar (credited by Maxwell with having brought SlimFast from the US to Europe in 1989) – have ploughed in excess of £1 million ($1.78 million / €1.26 million) into starting up the company.

Some of this has gone on extensive consumer research, carried out in six major UK cities. “People told us they loved the idea that they can pop into places they go every day anyway, to get something that

Big Shotz takes a shot at the big timeFormer lawyer Deborah Maxwell knows firsthand how difficult it can be to balance a busy job with bringing up children – and still eat well and stay healthy. That experience inspired her to create a well-financed start-up company that has launched a super-premium-priced functional beverage which delivers 20 nutrients, including omega 3 and prebiotic fibre. Maxwell intends to target cash-rich, time-poor consumers through alternative distribution channels. RICHARD CLARKE reports.

Deborah Maxwell’s own struggle to balance a busy life with healthy eating sparked the creation of Big Shotz.

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S TA RT- U P C A S E S T U D Y

has a meaningful number of nutrients at meaningful levels,” says Maxwell.

Much of the budget, however, has been spent developing the product over the past two years or so with help from scientists at Reading University, a process that was fraught with technical difficulties.

Initially, Maxwell wanted to use a red berry fruit juice base, to cash in on the popularity of superfruit, but found adding iron turned it an unappetising brown.

She also had to drastically reduce the number of nutrients in the product to keep costs down. One victim of the cull, for example, was CQ10. This was sacrificed because it was so expensive, says Maxwell, and consumer recognition of the ingredient was low anyway.

Maxwell had wanted to include 50% of the 450mg/day of omega 3 recommended by the UK government’s nutrition committee (this is not an RDA), but reduced this to 33% for taste reasons. “The taste was just starting to come through. If you are going to do something that’s appealing to consumers, it’s got to taste nice,” she says.

The key was to ensure the product contained an affordable number of nutrients at respectable levels which did not impact on taste, she says, adding: “It’s a nonsense to say you’ve got 50 ingredients if you’ve only put a tiny amount of them in.”

No specific health claims are made on-pack for Big Shotz, which Maxwell says is deliberate. “We feel the message of the product is that you are getting 20 nutrients, some at very significant levels and others at acceptable levels, in one little fruit juice shot. To start saying, this product may help heart health, just starts to confuse the message. People might say: ‘Oh, is it a heart-health

drink?’ For ginseng, we could probably make an energy claim. But people might think: ‘Oh, is it just an energy drink? Do I only take it for sport?’ We are an everyday for everybody product.”

Instead, text on-pack is more general, stating: “Much more than just a juice. It’s a nutrition revolution. Bursting with vitamins and minerals.”

The inclusion of so many nutrients has impacted on the retail cost of the product, which doesn’t compare well with other active health drinks. For example, Danone’s Actimel, a probiotic yoghurt drink, retails in

Waitrose for £2.79 ($4.97/€3.53) for a pack of eight 100g bottles.

But Maxwell is unconcerned. She believes Big Shotz’ target consumers will be willing to meet the price, which she says compares more favourably with the price of, say, a cappuccino in the coffee shops where the product will be sold.

She adds: “We did significant testing of the price point in our research and we got a very good reception. What was more telling was that when we went out to the trade, they didn’t bat an eyelid at the recommended retail price. In fact, quite a few of the retailers said, oh no, we will sell it for more than that. Which, of course, is up to them.”

Effective marketing of the product – which will be done primarily through PR – will be important to communicate the message that £1.99 for “20 nutrients at significant levels” represents “value for money”, says Maxwell.

Going forward, Maxwell has a clear picture of how the Big Shotz concept might develop, in a strategy she dubs “The Four F’s”.

The first F is flavour, with another due for launch next year. The second F is foreign expansion, with the US, Germany and Scandinavia in the company’s sights.

The third is function, which will see Shotz Health explore more benefit-specific products, such as Slim Shotz for weight loss, or Sports Shotz for energy. A kids’ product, more affordable and with lower dosages and fewer nutrients, could also be on the cards.

The last F is format, with the possibility that Big Shotz might find itself sold in larger packs designed for in-home consumption.

Energy 222kJ / 56kcal Fat 0.40gProtein 0.02g Of which saturates 0.29gCarbohydrate 12.1g Polyunsaturates 0.12gOf which sugars 9.3g Fibre 3.4g

Sodium 0.02g

Vitamins and Minerals %RDA* %RDA*Vitamin A (from Beta-carotene)

220µg 33%* Pantothenic acid 5mg 100%*

Vitamin D 4.2µg 100%* Calcium 100mg 15%*Vitamin E 8.3mg 100%* Iron 3.5mg 30%*Vitamin C 50mg 100%* Magnesium 75mg 30%*Ribofl avin 1.3mg 100%* Zinc 6.3mg 50%*Niacin 15mg 100%* Copper 0.4mg +Vitamin B6 1.7mg 100%* Selenium 83.3µg +Folic Acid 167µg 100%* Ginseng 33mg +Vitamin B12 0.83µg 100%* Pre-biotic fi bre 3.4g +Biotin 0.13mg 100%* Omega 3 149mg 33%**RDA=Recommended Daily Allowance per 120ml serving; + =No RDA established

Source: Shotz Health

NUTRITIONAL INFORMATION FOR BIG SHOTZ (PER 100ML)

CHART 1: PRICE COMPARISON FOR BIG SHOTZ

Price per 100ml serve(£)

0Big Shotz

£1.99/100ml

1.99

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2.00

Innocent Detox Smoothie

£1.99/250ml

0.80

Danone Actimel

Multifruit Drink £1.42/4 X 100ml

0.36

Knorr Vie Shot Drink

Orange Carrot & Banana

£1.88/3x100ml

0.63

Berocca Effervescent 30’s £7.85

0.26*

Sanatogen Gold One A Day A-Z Vitamins 90s (complete multivitamin and mineral)

£6.97

0.08*

*Berocca and Sanatogen shown as price per tablet

Source: Tesco.com

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B E V E R A G E C A S E S T U D Y

Roosvicee, first launched in 1956, is one of the Netherlands’ best-known brands, with a brand awareness above 80%. It is hard to find any Dutch adult who wasn’t raised drinking Roosvicee’s vitamin C-rich rosehip cordial and ready-made ambient lemonades.

In the 1990s the range was extended with products such as the bestselling Roosvicee Multivit, a multi-vitamin juice.

In 2001, the Roosvicee brand was acquired by Heinz. Peter Boterman, Communications Director with Heinz, says the company’s approach is to combine its worldwide business with investments in local brands: “The idea behind this is: the closer to the consumer, the better. We give local brands the opportunity to grow and local teams a lot of freedom to manage their own brands,” he explains.

According to Boterman, Roosvicee makes a good fit with the Heinz philosophy: “People consider the brand as honest and sound, and appreciate the positive health message that comes along with its products. Roosvicee drinks offer consumers the opportunity for a healthy treat.”

In order to define Roosvicee’s growth direction, in 2005 the company undertook

research into consumer needs in relation to fruit juices and drinks, to find how existing brands and products fulfilled these needs and where possible gaps existed. As part of the research, people were observed at home to learn more about their behaviour.

At that time, the company was already well-aware that it should address the concerns about obesity and overweight that, as in other western countries, were also gaining ground in the Netherlands. In addition to low physical activity, the consumption of energy dense foods - including drinks with sugars, such as juices - plays a role in overweight, which lead the company to focus on developing more products with less or no added sugars and no artificial sweeteners.

The insights from consumer research were translated into a range of new products, such as Roosvicee 50/50, which is made from 50% pure fruit and 50% water, with no

added sugar or sweeteners. Developed for a broad, health-conscious target-group and launched in 2006, the idea for Roosvicee 50/50 originated from a finding in consumer research that people believed that they should drink one and a half litres of water a day. But they struggled to meet their goal.

“Consumers could not cope with drinking one-and-a-half litres of water only. They were looking for a drink that tasted less sweet and contained less energy than existing drinks. Roosvicee 50/50, a thirst quenching drink with no added sugars or added sweeteners, is an answer to this,” says Boterman.

A product like Roosvicee 50/50 helps consumers get used to a fruit drink that tastes less sweet than a conventional drink, adds Boterman: “In this way, we are also creating a market for new or existing fruit drinks with less or no added sugar.”

Dutch fruit drink brand makes a virtue of water

Roosvicee, a mass-market juice brand owned by Heinz, is leaning on sugar-reduction, multi-vitamins and the benefits of a product that’s 50% water in a bid to compete in an increasingly tough, health-driven market. By LISETTE DE JONG and JULIAN MELLENTIN.

Roosvicee 50/50nu ook in de smaken Geelfruit en Groenfruit

Voldoende drinken helpt je om gezond te blijven en je goed te voelen.

Voor veel mensen is het een opgave om minstens 1,5 liter per dag te drinken.

Roosvicee 50/50 zijn vier makkelijk te drinken lichte sappen, gemaakt van 50%

puur fruit en 50% zuiver water. Doordat er geen suikers en geen zoetstoffen

zijn toegevoegd is Roosvicee 50/50 niet zoet, lekker verfrissend en heeft het

een natuurlijke fruitsmaak. Zo kun je op een lekkere, verantwoorde manier

voldoende drinken.

This “drinking water assessor” was developed to support the healthy hydration positioning of the Roosvicee 50/50 brand. Visitors to the website www.gezonddrinken.nl can download this simple tool to help them manage their water intake during the day. Translated from Dutch, the website says: “Do you drink suffi cient each day? Drinking what you need helps you to stay healthy and feel good. Roosvicee has developed the 50/50 drinkmeter, to help you keep up with how much you have drunk. Click here to try out the drinkmeter. You can also download the drinkmeter onto your desktop.”Print advertising for the Roosvicee 50/50 range.

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B E V E R A G E C A S E S T U D Y

Roosvicee 50/50 was originally available in five different flavours: Roodfruit (Red Fruit) and Fruitmix – which are the two top-selling flavours – as well as Forest fruits, Tree fruits, Apple and Orange. In September 2008 the success of the two best-selling mixed fruit flavours was translated into two new flavours Geelfruit (yellow fruits) and Groenfruit (green fruits), which replaced the Apple and Orange flavours.

The sides of the Roosvicee 50/50 package feature nice-to-know health facts, such as “the body consists for 60-70 percent of water” and “in his life, a human being, drinks an amount of 75,000 liters of water”. It retails in 1.5 litre cartons which sell at a competitive mass-market price of €1.14 ($1.64) each. In September 2008 Roosvicee 50/50 was extended into 250ml single-serve packs, sold in threes.

As well as TV, radio and print advertising, Roosvicee uses some more interactive techniques. A good example is the “drinking water assessor” which was developed to support Roosvicee 50/50. Visitors to the website www.gezonddrinken.nl can download a simple tool (see picture) to help them manage their water intake during the day.

Recently, Roosvicee has decided to focus its marketing strategy on its new products. “More established products such as Multivit – launched in 1998 - and Vruchtvitaal – launched in the eighties - already have a steady growing number of users. They automatically profit from our marketing support to new products,” says Boterman.

Heinz doesn’t disclose sales figures or market shares, saying only that Roosvicee is growing and the brand is increasing its market share.

According to publicly available IRI supermarket scanning data, the Roosvicee brand was worth about €41 million ($52 million) in retail sales in 2007. Moreover, if the IRI data is used as a guide, then the gap between Roosvicee and its larger competitor, Hero, one of Europe’s biggest juice companies, is widening each year as Hero’s growth rate, driven by innovations such as its very successful Fruit2Day brand, continues to exceed that of Roosvicee. In fairness to Heinz, the IRI supermarket scanning data doesn’t include convenience channels, but the supermarkets are the largest channels by far in the Netherlands. The story told by IRI sales and growth figures is:

2003 Roosvicee €37 million Hero €58 million,2006 Roosvicee €40.3 million (+8.9% over 2003) Hero €68.3 million (+17.8% over 2003)2007 Roosvicee €41 million + 1.8% Hero €74.2 million +8.6%

For the coming years, however, Boterman expects the Roosvicee brand to take an upward line. “Consumers are looking more and more for authenticity: sound products with a clear origin. In addition, people tend to take less sugar. The Roosvicee brand fits

well into these developments. We already have the image of being honest and sound, and our products will continue to be further improved according to consumer wishes.”

A major challenge is the increase of the number of players within the drinks market, both A and B brands. “It is important that we keep distinguishing ourselves,” says Boterman, “not only with the products themselves but also in the consumer’s mind. Therefore we will keep focusing on products that add real value to the category, such as Roosvicee 50/50. If we do so, we do not need to cross any country borders and will still have a world to win within the Netherlands.”

BRAND HISTORY – A HERITAGE OF HEALTH

Roosvicee’s first syrup was introduced in 1956, by pharmacists’ sons Gert and Herman Recter and was sold for its health benefits. A mixture of rose hip, red berries, raspberries, tomatoes and sugar, it was sold in 300 ml-bottles. It carried the name Ro-vicé, a merger of the Dutch words Rozebottel (meaning rosehip) and Vitamine-C (Vitamin C). Later on, in the early 1960s, the name was changed to Roosvicee.

The Recters went on to develop a number of product variants. In 1968, for example, Roosvicee Laxo and Stop were launched, as digestive health problem-solvers for kids. Another variant was Roosvicee Ferro - with extra iron for pregnant women - followed by Roosvicee Rosehip jam and Roosvicee Dieet with sweeteners instead of sugar.

In the 1990s Roosvicee was developed into a broad drink brand, with the introduction of Lessini Syrups (1995) and the ready-to-drink lemonade Multivit (1998) in 200 ml- and 1-litre packages. The brand was acquired by Heinz in 2001.

As part of its efforts to extend its presence in health-enhancing fruit drinks, in late 2007 Heinz launched Heinz Sunshine in both Spain and the Netherlands. A 100ml “daily dose” fruit drink with tomato. In the Netherlands it is available in three varieties: fruits of the forest with tomato; exotic fruits with tomato; citrus fruits with tomato. Each 100ml drink contains only 61kcal and gives a dose of 1.4mg of lycopene and 20mg of vitamin C.

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Soups are one of the most beloved processed foods in the North American pantry, but the maturity of the slow-growing segment long has caused big problems for major players such as Campbell Soup. Now, the Camden, N.J.-based industry giant is taking some further, although tentative, steps toward turning its canned soups into the functional vehicles that many in the industry have long hoped will spur new growth in the category.

Two developments point toward this strategy:

• The first is Campbell’s decision to introduce a functional product, Healthy Request Tuscan Minestrone, which is made with whole grains and boasts of including omega-3s. So far this product has only been introduced in Canada.

• Second, and more significantly, Campbell’s V8 brand – long known as a beverage brand based on a blend of vegetable juices and, more recently, as a platform for vegetable-and-fruit juice blends – introduced its first soups, a line of vegetable purees that are positioned to help American consumers easily get more servings of vegetables.

“Most people want to get more vegetables in their diet, but say it can be a challenge because there aren’t a lot of choices that deliver on both convenience and taste,” said Kelly Berrie, business director of wellness

innovation for the parent Campbell Soup, of the V8 soup debut.

The company declined to discuss its overall approach toward functionality in its soup offerings. But clearly, these two product introductions represent significant new steps in Campbell’s efforts to grapple with a broad platform that so easily falls within the bailiwick of a category and brand whose stock-in-trade is wholesomeness and real ingredients.

One reason for their hesitance to put these new offerings in a functional context is that Campbell executives have struggled mightily with how to use the inherent nutritional appeal of their products and brands to capture a larger share of consumers who are explicitly interested in greater added functionality in their foods.

Back in 1998, for example, Campbell launched an entire new business called Intelligent Quisine, a line of functionally optimized, home-delivered frozen meals. It went nowhere in the market. And a few years ago, Campbell test-marketed calcium and vitamin-fortified soups, but similarly they didn’t fly (see box on page 26).

Perhaps Campbell’s hesitance also has been a matter of small and natural-foods brands capturing most of the sales of functional and “fresh” soup products to health-and-wellness customers.

In any event, Campbell has settled into

simply promoting some of the inherent nutritional appeal and functionality of its products, such as the amount of the antioxidant lycopene in its tomato soups (see box). Campbell – along with Heinz, which also a major interest in tomatoes through its soup and tomato sauce businesses – has invested consistently since the 1990s both in developing the science of lycopene and its effects in reducing cancer risks, and in consumer communications about this “intrinsic health benefit” of tomatoes. Whether this has had much lasting effect on sales is not clear.

Campbell has instead made progress with other types of healthful offerings. But its reduced-sodium and low-fat versions of traditional condensed and wet canned soups are notable for what has been taken out, not for health benefits that Campbell has added. In any event, those products largely are the only ones in the category that have been growing in the U.S. market.

Campbell’s Healthy Request line, for example, is 98% fat free and has up to 45% less sodium than regular varieties. Even the salt in Healthy Request is “lower-sodium natural sea salt”.

So far this year (January-September 7th) Healthy Request condensed wet soups reached sales of $70 million (€52 million), year-to-date growth of nearly 6%, according to data compiled by Information Resources

Stretching juice into soupCan a vegetable reinvention based on taste, convenience and a one-a-day message breathe new life into an old market? Campbell’s executives have struggled with how to use the inherent nutritional appeal of their products and brands to capture a larger market share. Their latest bet is that the V8 drink brand can be extended into a new category. By DALE BUSS.

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

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

Inc. in U.S. supermarkets (except Wal-Mart), drug stores and mass merchandisers. In 2007, for the full year, they were a $104-million (€77 million) product with sales growth of about 10% over the year before, according to IRI.

Meanwhile, Campbell’s Select Healthy Request ready-to-serve soups achieved $28 million (€20.8 million) in year-to-date sales by early September, according to IRI, and 61% growth over the same period a year earlier, after posting full-year 2007 sales of $35 million (€26 million).

These products have contributed to a slight uptick in actual top-line growth for the industry in the U.S. – which Campbell’s dominates – after years of flat or declining sales. Year-to-date sales for the overall category were up more than 3% through early September, IRI found, following a gain of nearly 2.5% for all of 2007 for the $4-billion (€3 billion) industry; about 2.8% for 2006; and about 2.5% for 2005, and a decline in sales of nearly 1% in 2004.

Economics also are bringing the prospect of stronger growth for all of 2008

as increasingly financially strapped U.S. households turn to more at-home eating, where soup is a favourite and convenient choice. That factor alone, predicted one Wall Street analyst, could contribute a 2% increase in Campbell’s soup sales next year.

In Canada, Campbell’s wanted to go beyond low-sodium offerings, said Anne Yourt, brand communications manager for Campbell Co. of Canada, because the Canadian consumer “is interested in more than that.”

So in addition to mentioning heart health on the package, Healthy Request Tuscan Minestrone touts itself as being a source of omega-3s, each 250ml serve providing 300mg of omega-3s from flax seed. Made with whole-grain pasta or brown rice, it is also free of trans fat, low in saturated fat, and made with 25% less sodium than Campbell Canada’s Ready to Enjoy soups.

Available in a microwaveable-bowl format, Tuscan Minestrone retails for a suggested price of CAD $2.59 to $2.79 ($2.20-$2.37/ €1.63-€1.76).

With its V8 soups in the U.S. market, Campbell’s is trying to tap directly into Americans’ growing consciousness that they need to eat more vegetables.

“We’re basically elevating access to vegetables to the next level with this product,” said Lindsay Brady, brand manager for Campbell’s V8 soups. “We see it as a huge opportunity.”

Each variety of Campbell’s V8 soups – Golden Butternut Squash, Garden

Broccoli, Tomato Herb, Southwestern Corn and Sweet Red Pepper – gives the equivalent of one serving of vegetables per 240ml serve of soup. The puree format “allows us to do that,” Brady said. “It’s really all about delivering vegetables.”

The products contain no artificial flavours or preservatives. Some of them are “good” or “excellent” sources of nutrients including Vitamins A and C, potassium, and fibre. Each soup is packaged in a fresh-sealed box that locks in freshness and flavour.

The 18.3-ounce containers retail for a suggested price of $2.99 (€2.22), which Brady called “consistent” with other Campbell’s ready-to-serve soups.

For its V8 soups, Campbell’s is keeping the parent company’s own name as part of the brand. “It’s really about the marriage of the two,” Brady explained. “V8 certainly brings the vegetable credentials, and Campbell’s brings soup credentials – two iconic brands known for their own respective reputations.”

A FAILED FORAY INTO VITAMIN-FORTIFIED SOUPS

Having learned from its major misstep in the burgeoning nutraceutical market with the ambitious and quickly aborted Intelligent Quisine product in 1998 Campbell returned to the fray in 1999 with a line of calcium- and vitamin-added soups that was test-marketed in the U.S. Northeast. Similar products were also offered in foodservice.

Campbell’s Plus made an overt appeal to female consumers and their efforts to “maintain a more healthful lifestyle,” as Kathryn Block, business director for the new product line, told NNB at the time. Available in four varieties, the soups each supplied 10% to 30% of the RDV for calcium and vitamins A, B1, B2, B6, B12, C and E. And at prices averaging around $1.79 (€1.33) for a 16-ounce ready-to-serve can versus around $1 (€0.74) a can for Campbell’s regular condensed-soup line, Campbell’s was clearly banking on the additional vitamins in Campbell’s Plus counting as a huge “value-add” to American grocery shoppers.

Dionne Vernon, brand manager for Campbell’s Plus, told NNB at the time that Campbell’s was emphasizing the added calcium in the new line in part because so many other foods now boasted added calcium, ranging from juices to cereals to waffles. And the vitamins that Campbell chose to add to Campbell’s Plus “are those that are considered the ‘hot’ vitamins, including antioxidants, thiamin, riboflavin. They were carefully chosen with consumers’ needs and wants in mind.”

Campbell’s Plus soups are thought to have been withdrawn in 2000.

LOWERING SODIUM – A MARKET STANDARD IN SOUP

Since the 1980s Campbell, in common with most food companies, had been quietly reducing the amount of sodium in its recipes, achieving reductions of up to 25% in some cases, but it wasn’t until 2006 that Campbell began aggressively promoting that more than 30 of its soups had reduced-sodium recipes.

At about the same time Campbell’s main competitor, the Progresso line of soups sold by General Mills, also started to make soups with less sodium.

The Campbell campaign began with television commercials, print and online advertising, promotions, PR and a partnership with the American Heart Association. The Campbell campaign used the theme “Lower sodi-yummm” as well as the brand’s longtime umbrella theme, “M’m! M’m! Good!” and aimed to dispel the belief that soup with lower sodium or reduced sodium is doomed to be tasteless and flavorless.

The products promoted were all ones which had 25%-45% less sodium than the original versions, some achieving the reduction by using lower-sodium natural sea salt.

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N E W P R O D U C T S

Country Company Brand & Product Description

PART 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 George Weston Bakeries Arnold Grains & More Double Oat Bread

Contains Heart Choice cholesterol-lowering plant sterols, from Cognis Nutrition & Health.

Canada Biscuits LeClerc LeClerc Praeventia Dark Chocolate Cookies

Made with 70% cocoa chocolate. This product contains antioxidants, inulin, a prebiotic and red wine extract.

BEVERAGES

USA Bodywell Nutrition E2 Voltage Energy Drink Claimed to increase energy and endurance, to reduce mental and physical fatigue, and to improve concentration and training endurance up to 34%. The product has antioxidant properties and is said to be great for high altitude training.

USA Sudden Impact Partners Olé Energy Drink Said to improve performance particularly in times of stress, to increase concentration, to stimulate the metabolism, and to help the body burn fat for fuel.

USA Arizona Beverages Arizona Rx Energy Quick Shots Said to be the first to bring great taste and the natural benefits of green tea to the energy shot segment. Made with a green tea base and a proprietary performance blend of vitamins and herbs, including milk thistle, taurine and several B vitamins. It is claimed to be low in sugar, free from artificial colours, flavours and preservatives. This product is retailed in a 2-fl. oz. pack.

USA Soma Beverage Micronutrient Water A combination of pure water to hydrate the body, antioxidants to protect cells, electrolytes to replenish essential minerals and zinc to boost the immune system. Free from sweeteners, calories and artificial flavours.

USA Vitaminfiber Vitamin + Fiber Water Functional Water Range

Claimed to be the first in America to include vitamins and fibre. With a high content of vitamins C, B and A and “other essential antioxidants”. Free from preservatives and additives.

USA Natural Factors SlimStyles Weight Loss Drink Mix with PGX

Said to be clinically proven, natural and safe. Designed to be an effective way to diminish appetite, making it easier for consumers to eat less and “lose weight almost effortlessly”. The product retails in a pack of seven 2-oz. packs and is available in Double Chocolate and French Vanilla.

USA National Beverage Àsanté Vitamins Pomegranate Flavoured Energy Drink

Claimed to be a refreshing alternative with an added 10mg of guarana, for an energy boost. Contains electrolytes and vitamins B6, B12, taurine and ginseng.

USA National Beverage Àsanté Vitamins Vitamin Enhanced Sport Drink

Described as a refreshing alternative with the added bonus of 30mg blueberry extract and açai berry for nourishment. It is claimed to contain essential vitamins and minerals, including vitamins C, B6 and B12.

DAIRY

Canada Danone Danone Silhoutte 0+ Raspberry-Green Tea Yogurt

Contains 0g fat and no added sugar. The yogurt contains more vitamins, calcium and protein per calorie than regular yogurt. Made with natural green tea extract and fruit puree, it is sweetened with Splenda and contains no aspartame. The product retails in a 650g tub. Also available is a multi pack containing 12x100g tubs in four flavours: strawberry, kiwi, pineapple, and mango.

DESSERTS & ICE CREAM

USA Mott’s Mott’s Plus Apple Sauce with Antioxidants

With added vitamins A, C and E and no added sugar. Flavoured with pomegranate. Also available is Apple Sauce with Calcium in Harvest Apple flavour.

Canada Cadbury Beverages Mott’s Fruitsations Fruit Dessert Unsweetened + Antioxidant

Comes in an Apple Pomegranate variety and is made with natural flavours and colours. The product contains antioxidants including Vitamin C, to “help the body to metabolize fats and proteins, and helps in connective tissue formation”.

SNACKS

USA Forward Foods Detour Energy Bar For Runners Said to contain whey protein and microlactin, a naturally occurring anti-inflammatory derived from milk proteins that has been reported to improve joint health and function. Available in: Lemon Yogurt; Chocolate Chip Cookie; and Chocolate Peanut Butter flavours.

USA Nature’s Plus Nature’s Plus Ultra Energy Bar Described as suitable for diabetic lifestyles due to a low glycemic value, it is high in protein and provides a controlled release of carbohydrates with vitamins and minerals. This energy bar is available in a new Chocolate Peanut Crunch flavour and contains “whole food antioxidants”.

USA Trader Joe’s Trader Joe’s Peanut Butter Crunchy Granola Bars

Contain 20g whole grains and 5g protein per serving. The kosher certified product is suitable for vegetarians and is said to be loaded with all natural peanut butter and wholegrain goodness. Retailed in an 8.9-oz. carton containing 12 bars. Also available are Nuts About Antioxidants Trek Mix Bars, which are a good source of fibre and antioxidant vitamins A, C, and E. The grab-and-go bars are said to be “a perfect blend of taste and convenience” and contain 140mg omega-3 (ALA) per serving. The certified kosher product consists of: almonds; cranberries; raspberries; and blueberries blended with rolled oats and crispy rice. The bars retail in a 6 x 1.23-oz. pack.

USA Product Partners Wildberry Protein Bars Contain 18g of protein per serving and naturally support fat-loss goals while delivering healthy fuel to muscle. Retails in a pack containing 12 x 2.54-oz. bars.

USA Forward Foods Detour Yoga Blueberry Açai Energy Bar

Contains whey protein “for muscle repair” and lemon balm “for increased calmness after exercise”. This product contains 11g protein and is made with natural flavours. It retails in a 45g bar and is aimed at women.

SWEETENERS & SUGAR

USA Schnuck Markets Schnucks Granulated Sucralose A calorie free sweetener said to be for cooking and baking and tastes just like sugar.

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Country Company Brand & Product Description

PART 2: REST OF THE WORLD – FOODS & BEVERAGES

N E W P R O D U C T S

BAKERY

France United Biscuits Verkade Fruit & Form (Fibres +) Biscuits Céréales Complètes (Wholegrain Cereal Biscuits)

Contain 10% fibre and vitamins B1, B2, B5 and B6. This product is said to promote wellbeing as well as digestion. Two varieties are available: Prune-Cranberry and Prune-Apple.

Japan Kellogg’s Kellogg Chocolate & Coconut Flavoured All Bran Shortbread

Bite-sized and packaged in small on-the-go individual wrappers sold in 6-packs of 5g bars. Formulated with fibre, iron, calcium and seven vitamins.

BEVERAGES

Australia Balance Water Company Balance Water For Children Infused with four Australian flower essences specifically selected for children. These essences are claimed to help promote calm attentiveness, focus and concentration, and come from the most remote, pristine and unpolluted areas of Australia. The water is unflavoured and free from preservatives. It can be consumed by children of any age in the same quantity and frequency as regular water. Retailed in a 400ml bottle.

Czech Republic Phoenix Division Vilcacora Tea Powder Said to support the body’s natural immune system and also said to help relieve the side effects of chemotherapy and radiotherapy. This tea is made from an extract of Amazonian creeper.

Finland Coca-Cola Fanta B’Good Berry Delight Lightly Carbonated Drink

Low-calorie and contains orange, apple and cranberry juices as well as fibre. This drink is suitable for the weight-conscious and contains only 13kcal per 100ml.

Finland Olvi Olvi Vichy Omena After Sport Drink Powered by Alfa Hica and said to be the first mineral water in Finland that contains a dietary supplement. It contains pure Finnish alfahica – leucine acid – that blocks the operation of decomposing enzymes in the body and facilitates the burning of fat. The product is claimed to speed up recovery, and is available in a 0.5L bottle.

France Unilever Knorr Vie Fruit and Vegetable Juice Now available in a Pêche-Carotte-Poire (Peach-Carrot-Pear) variety. This prod-uct is naturally rich in vitamin C and is said to promote the immune system. It does not contain preservatives or added sugars and is a source of fibre. The pack contains three 100ml bottles, each made from 200g fruits and vegetables.

Ireland Rubicon (Irn Bru) Rubicon Papaya Superjuice Has a sweet delicate taste, as well as boasting a wealth of natural health benefits. The fruit is described as containing the antioxidant lutein for eyes and skin, good for aiding digestion. It has no added crystalline sugar, contains no preservatives, artificial colourings or sweeteners. The company is working in association with The Eyecare Trust.

Japan House Foods Japan Black Garlic Power Energy Drink An energy drink with 30% fruit juice. It contains vitamin B1 and 500mg of fermented black garlic, which is garlic turned black by fermentation to make the beverage rich in S-allyly cysteine and garlic polyphenols.

Japan House Wellness Foods C1000 Vitalemon Hot Drink Mix A lemon flavoured beverage mix available in a pack of four 10g sachets. It should be dissolved in hot water and is ideal for the winter. A 200ml cup contains 1% lemon juice and 1,000mg of vitamin E, which is equal to 50 lemons.

Japan Morinaga Milk Industry TBC Series Lychee Flavoured Beauty Drink

Made of moderately sweet lychee juice, combined with plenty of aloe pulp, the product contains 200mg of collagen, as well as CoQ10. This functional range was originally introduced in April 2001 and since then it has become popular as diet- and beauty-positioned drinks to women in their 20s and 30s. This product is retailed in a 240ml cup, including a disposable straw.

Mexico PepsiCo Be Light Agua con Vitaminas (Vitamin Water)

Available in a Today variety with a tropical citrus flavour. Free from calories and contains vitamins B3, B6 and B12 to help the brain function. Retailed in a 700ml bottle.

Mexico Unilever Maizena Fecula de Maíz (Corn Starch Drink Mix)

Available with a Banana flavour and contains folic acid, zinc, iron and vitamins A, B1, B2, B3, B12 and C.

New Zealand Vitality Brands Worldwide Mangosteen & Pomegranate Juice Drink

Made from two fruits rich in antioxidants, the two “super-fruits” have been blended into a conveniently packaged shot bottle of premium fruit juice to be enjoyed daily for optimum health benefits. The product is available in a pack containing 3 x 90ml bottles.

Philippines Sydenham Laboratories Juslicious Peak Dalandan Juice Drink Contains: L-carnitine, to help burn fat faster for more energy, strengthening immune cells, and sharpening cognitive ability; calcium, taurine, vitamins A, C, E; zinc and iodine. The anti-stress drink is said to aid energy and memory and retails in a 350ml bottle.

Portugal Emmi Fondue Emmi Emminent Energy Drink Emmi is launching Emminent, an energy drink made with Swiss milk, fruit, pro-biotic bacteria, taurine and green tea extract. The energy drink is aimed at men and is claimed to support performance and the immune system. Three flavours are available: Orange, Berry and Mango. The drink is retailed in a 125ml bottle.

Sweden Coca-Cola Coca-Cola Light Plus Drink Available in Green Tea and Vitamins variants. The Green Tea variant contains green tea extract, which is a good source of antioxidants. The Vitamins variety contains vitamins B3 and B12. Both variants are zero calorie.

Thailand K.T.Y. Foods Buddy Dean Hi-Collagen Coffee A coffee that is rich in fish collagen, said to help to build collagen in the layers of skin, to prevent skin from wrinkles, to make muscle naturally firm and to promote healthy elastic joint cartilage. The product also contains grape seed extract and pomegranate extract and uses aspartame as a sweetener. This halal certified product is retailed in a 110g box containing ten 11g sachets.

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N E W P R O D U C T S

BREAKFAST CEREALS

Colombia Signa Grain Miller’s Optima Oat Flakes Contains added omega-3, calcium and fibre. This microwaveable product is said to help maintain a healthy heart.

Portugal Kellogg Kellogg’s Optivita Frutos Secos (Nut Flakes Cereal)

Made with wholegrain oats and low in saturated fat and salt. The product also contains beta-glucan, which helps control cholesterol levels, and vitamin B1, which helps maintain a healthy heart.

DAIRY

Belgium Campina Campina Viejeune Semi-Skimmed Milk A semi-skimmed milk with an antioxidant complex containing selenium, zinc and vitamin E. The product retails in a 1L bottle.

Denmark Arla Foods Arla ProBio Cultura Organic Yogurt Drink

Arla has launched an Organic version of its Cultura Yogurt Drink in a concentrate format, said to be the first one of its kind in Nordic countries. ProBio Cultura contains three probiotic lactic bacteria such as F19 to promote digestion and the immune system. The yogurt drink also contains added fibre and is low in fat and sugar. It is flavoured with Strawberry and Red Tea and retails in a four-count pack of 100ml bottles.

Denmark Arla Foods Arla Yoggi & 3 Korn Arla has launched a range of yogurt containing whole grains of rye, wheat and oat, as well as extra natural milk proteins. The yogurt contains both soluble and insoluble fibre, which have a good effect on intestinal flora and blood sugar levels. The product is available in a strawberry flavour that contains 3% fibre, 6% protein, 6% sugar and 1.5% fat. It retails in a 1L pack.

Finland Bioferme Yosa Vanilja Vanilla Oat-Based Yogurt This probiotic oat dessert is free from preservatives, milk, lactose and cholesterol, and enriched with calcium. It is available in a 400g tub.

Germany Bauer Bauer Fit & Aktiv Probiotischer Fettarmer Frucht-Joghurt Heidelbeere (Probiotic Low-Fat Yogurt)

Now available in a Blueberry flavour. The product is described as a mild, low-fat, probiotic fruit yogurt with 17% blueberry preparation, Lactobacillus acidophilus LA5 and Bifidobacterium BB-12.

Germany Strass Frischdesser Biac Probiotic Fitness Drink Available in an Orange variety, which is formulated with yogurt, vitamins C, E and B6, oligofructose and L-carnitine. It is high in fibre and said to increase well-being. Available in a pack containing six 125ml bottles.

Hong Kong Nestlé Nestlé Dairy Farm Delight Live Culture Low Fat Drinking Yogurt

Now available in a Mango and White Peach flavour. This drink is formulated with Nestlé’s branded ingredient Calci-N to “lock in calcium inside the body”. It contains only 0.21g fat per 100ml serving. Comes in a 220ml bottle.

Japan Danone Danone Bio 0% Fat Yogurt (Strawberry)

As low/non-fat and low-sugar yogurts gain popularity, Danone Bio has intro-duced a 0% Fat Yogurt. The product contains BE80 bifidobacteria, which is claimed to reach the intestines alive in high percentages.

Mexico Alimentos La Concordia Al Día Saludable Milk with Oat Milk with Oat is a cinnamon flavoured beverage with natural fibre. It comes in a 250ml carton with a straw. According to the manufacturer, this product provides energy and vitality for longer, provides more proteins than other cereals, develops intestinal performance, helps maintain glucose and cholesterol levels, lowers arterial pressure and restores skin tissues.

Mexico Nestlé Nestlé Svelty Gastro Protect Alimento Lácteo Fermentado (Fermented Lactic Drink)

Low in fat and is available in a Natural variety. The drinking yogurt is formulated with Lactobacillus La1, which is said to help reduce symptoms of gastritis. The product is retailed in a 530ml pack containing five bottles.

Portugal Kaiku Corporacion Alimentaria Kaiku Sin Lactosa Plus A lactose-free skimmed milk enriched with vitamins A, D, E and folic acid. This product is retailed in a 1L carton pack.

Russia Danone Danone Danakor Cholesterol Reducing Yogurt Drink

Now also available in a Blueberry flavour. The product contains plant sterols. Each pack contains four bottles.

Russia Valio Valio Gefilus LGG low fat milk yogurt The product is enriched with Lactobacillus GG and contains 2% fat. Comes in a Raspberry and Blackcurrant flavour.

Taiwan Tatua Co-Operative Dairy Oak Nutritional Milk Powder for Women

Formulated with colostrum, collagen, vitamin A, C and E and iron; vitamin C helps the formulation of collagen and the absorption of iron, according to the manufacturer. Colostrum contains immunoglobulins, to support immune func-tion; vitamin A keeps skin healthy, and vitamin E fights oxidation.

SAUCES & SEASONINGS

South Africa Nola Nola Cholestro Go Sunflower Oil Said to be the first cholesterol-lowering sunflower oil on the South African market. The oil contains plant sterols, which are, according to the manufacturer, “Nature’s way of reducing LDL- cholesterol”. Cholestro Go is endorsed by the South African Heart & Stroke Foundation. This premium quality oil has a neutral taste and is retailed in a 750ml bottle.

SIDE DISHES

Argentina Nestlé Nestlé Puré Chef Instantáneo Para Preparar Puré (Instant Mashed Potato Mix)

Enriched with calcium and Calci-N from milk. The microwavable product cre-ates five portions and retails in a 125g pack.

Japan Sapporo Agency Starchy Barley To add to and cook with white rice. According to the manufacturer, by mixing one 35g pack barley with 330g of rice, the consumer can take in five times more fibre than from plain rice. The product contains barley grown only on contract farms and has a positive effect on digestive function.

SNACKS

Malaysia HPG Marketing Good Brothers Dried Mulberry A source of vitamin C, dietary fibre, glucose, minerals, potassium, magnesium, copper, antioxidants and vitamin E. Mulberry is said to help improve digestive function and bowel movement, increase appetite, relieve constipation, and help the production of blood.

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Trends & Strategies in Weight Management: Ten Key Case StudiesConsumers’ ideas about weight management have changed. Companies are wrestling with how to successfully create, price, position and market weight management brands. New ingredients – from over 40 different suppliers – are fighting for space in the embryonic market.

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Weight Management

23 www.new-nutrition.com

dairy drink retails for €2.99 for a pack of seven 65ml bottles. That’s equivalent to €6.57 a litre ($9.64). Compare this to regular, non-probiotic milk, which retails for just €0.69 ($1.01) a litre. Needless to say, Yakult is something of a niche brand – its €42 million ($61.7 million) annual sales in the Netherlands amount to just 5.6 million litres a year – a tiny number compared to the 800 million litres of liquid milk sold in the Netherlands. Moreover, Yakult’s sales are just 250,000 bottles a day – suggesting that just 1.4% of the Netherlands population of 17 million people is drinking Yakult each day.

In weight management it already seems that the same high value-low volume niche opportunity exists. For example, in the Netherlands – a highly price-driven market – Optimel Control secured a loyal following among a niche of consumers, despite being priced at a 450% premium to regular yoghurt:

• Optimel Control had retail sales in the Netherlands in 2007 of over €8.8 million ($13.7 million).

• In volume terms Control sold just 1.2 million litres in 2007 (mainstream Optimel sold over 80 million litres).

• Optimel Control sold on average 13,000 bottles a day.

Taking into account that such products have loyal consumers and high repeat purchase rates – 60% is not uncommon – that means that just 0.1% of the population of the Netherlands has consumed Optimel Control. Clearly it is a niche product.

For an expert weight management brand, supported by effective marketing, even in categories where packaging innovation is almost impossible, a price premium can be achieved. Kellogg’s Special K breakfast cereal, for example, sells in Dutch supermarkets for €3.40 ($5.36) for a 300g box. Kellogg’s own Cornflakes retail for €2.20 ($3.47) for a 500g box, and retailers’ own-label products for even less. On a price per kilo basis Special K sells at a 150% premium to Cornflakes and a massive 270% premium to retailer’s own label. It’s a similar story elsewhere in Europe.

2.6 DIFFERENTIATE WITH PACKAGING

One of the key lessons of the last 15 years is that packaging innovation is important to differentiate a brand – as important as the benefit offered and as important as the underlying science, if not more so. Optimel Control comes in a 100ml ‘daily

0Supermarket

Own-labelDrinking Yoghurt

€1.00

Price

per litre

(€)

1

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7

“Regular” OptimelDrinking Yoghurt

€1.24

Optimel Control€2.77 ($4.37)per 4 x 100ml

€6.92

CHART 1: CAMPINA OPTIMEL CONTROL – PACKAGING INNOVATION AND A HEALTH BENEFIT SUPPORT SUPER-PREMIUM PRICING

Source: Albert Heijn Shelf Survey

Weight Management

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2.2 BE AN “EXPERT BRAND”

There’s a powerful argument in favour of making weight management the sole focus of your brand. The most successful nutritional brands are those that are “expert brands” – focusing solely on delivering a single benefit, never deviating from their positioning. Examples include Danone Actimel (immunity); Danone Activia (digestive health); Red Bull (energy); Benecol (cholesterol-lowering); Pom Wonderful (pomegranate juice and heart health), to name but a few.

Kellogg’s Special K is one of the best examples, worldwide, of a weight management “expert brand”. With a focused message and skillful marketing Special K has pursued exactly the same line around the world, illustrated by communications such as its ‘Drop a Jeans Size’ promotion. They are as popular in Spain and France as in the UK and US. Planting its flag on expertise helped Kellogg’s to reposition the Special K brand in consumers’ consciousness as one of ‘shape management’ and moved it away from its traditional ‘diet’ image.

Unless you have a brand with a clear healthy image or it is your intention to create a new and

specific weight-management brand from scratch, then the best platform for your weight control product will be as part of a brand with an existing strength in weight control. For example:

Danone Shape Lasting Satisfaction (Case Study 5): Danone has already pursued exactly this strategy with its Shape diet brand in the UK, re-formulating it with added fibre and whey

protein to offer a satiety benefit and relaunching it as Shape Lasting Satisfaction. Shape more than doubled its sales in the wake of this re-positioning.

SlimFast Hunger Shots: Unilever’s decision to position its satiety dairy drink under its Slimfast brand is a perfect example of a company accepting this reality. Whether it can revive an old brand such as

Slimfast, which has a difficult heritage, is another question.

Optimel Control (see Case Study 3):Optimel Control is positioned as an extension of Campina’s highly successful Optimel brand – and to Dutch consumers its message is a logical fit to Optimel, which is a brand targeted at anyone who is conscious about

their weight. However, Optimel keeps far away from messages about “dieting”. In fact Campina Optimel is itself an “expert brand” in eating with a healthy weight in mind, thus providing the Control brand extension with a perfect platform.

Naturlinea (Case Study 4): In Spain the successful Naturlínea range is positioned as an extension of the brand Central Lechera Asturiana, one of the leading brands in the Spanish market. It’s a logical fit, since this brand already has a strong health positioning as Fuente Natural de Salud, meaning, “the natural well of health”.

Kellogg has built its Special K brand into a world-leader in weight management using campaigns that enable consumers to “feel the benefit” by actually losing weight

Weight Management

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1. Key trends in weight management

1.1 CONSUMER TRENDS

The clearest trend in European and American markets is the decline of the concept of dieting and the rise of weight management as one component of a broader healthy lifestyle.

While consumers continue to think about their weight, they have become disillusioned by diets focused on what they can’t eat – or offering products that don’t taste good - and are hungry for a different kind of solution. This was illustrated in the UK, where German dairy Müller turned around the fortunes of its ailing Müllerlight yoghurt brand by repositioning it as a healthy product rather than an option for dieters.

As Michael Gusko, managing director of German company Kampffmeyer Food Innovation, which has developed a satiety bread, explains: “People are more or less fed up with diets. Diets fail and they end up having to look for something different. Dieting concepts, such as low fat spreads, tend not to taste as good, either.”

Most consumers are no-longer really willing to follow very structured or regimented dieting programs. They’ve concluded that diets that are deprivational and require strict regimentation are “too difficult” over the long run.

According to Virginia Blake West, brand-

development director of Unilever’s Slim-Fast brand in North America: “Generally speaking, if you ask them, ‘How are you dieting today, and how is it different than three to four years ago?’ they’ll pretty much say, ‘I’m doing my own diet now.’ They’re cobbling together different philosophies and approaches from the wide range of what they see and are exposed to out there.”

While some consumers will be drawn to weight management foods and beverages because they are seriously overweight, the evidence is accumulating that the larger part of the market – and the ideal target market for new products – is people who are only a couple of kilograms overweight. In other words, healthy people with a small and manageable weight problem.

These healthy people are the target group of the successful Optimel Control brand in Europe (see Case Study 3). They are also the people who have driven the weight management market in Japan, a country which does not have a problem of overweight or obesity on anything like the scale of the western world, but it does have the world’s second-biggest market for weight management products after the US. Japanese consumers are mostly healthy people who want to stay that way.

In all markets these healthy people will form the bulk of consumers for weight-management

Fuze Slenderize, a lifestyle beverage brand owned by Coca-Cola, is one of several on the US market that uses Super CitriMax (anextract of the fruit Garcinia cambogia) as its active ingredient. The brand carries the claim that it: Helps support a healthy appetite and a normal metabolism

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

Healthy Snacks & Beverages for KidsThis report begins with a concise 23 page summary of the key drivers in kidssnacking and ends with a practical check-list for new product development.The report then sets out ten detailed case studies of success and failureand includes a range of companies large and small, from Unilever’s kids’“Brain Food” range to Healtheries rice snacks.

Superfruit: strategy for superfruit successSuperfruits are the product of a strategy, not something you find growing on a tree.Superfruits 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.

7 Outstanding Companies in Functional & Health-Enhancing FoodsThis report provides insights into the strategies of the most outstanding companies in the field of food and health. Companies featured in the report have the most advanced and successful strategies in nutrition and health; have strategies which illustrate the future direction of functional foods; and deliver valuable lessons about how to be successful in the business of food and health. Our selection includes: Danone, Unilever, PepsiCo, Emmi, Yakult Honsha, Pom Wonderful and Innocent Drinks.

10 Key Trends in Food, Nutrition & Health 2008Our annual review, 10 Key Trends in Food, Nutrition & Health, is one of the most sought-after publications in the food industry. The report identifies the 10 mega-trends that will have the most impact on the food and beverage industries over the year ahead. It points companies towards some clear and practical strategies for their functional food and beverage developments, production and marketing.

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Functional and Health-Enhancing Juices: 7 Key TrendsUsing 15 detailed case studies this report analyses the functional and health-enhancing juice business. It explains that digestive health, behind superfruits, is the single most-promising trend for the juice industry – and demonstrates how two companies have quietly built digestive brands worth over $50 million in annual sales. It explores juices with added ingredients and it points out that the areas of beauty, energy and weight management all have the potential for profitable growth.

Failures in Functional Foods: 10 Key Case Studies & 10 Key LessonsThe functional foods market is a highly complex one. Success with a new product or ingredient in this harsh and demanding market is very rare. In fact, failure is far more common than success and most products sell on a niche basis with very, very select few ever graduating into the mass market. The report analyses some of the more spectacular failures and offers strategies for reducing risk in the functional foods world.

Success and Failure in Functional Water: Eleven Case Studies from Europe, the US and AsiaWhat makes consumers choose functional waters? What are the critical success factors in marketing waters with added health benefits? Why is the category mass-market in Japan, but still only niche elsewhere in the world? Why have so few brands been successful? And why have most product launches failed? The report examines the marketing strategies of 11 different functional water brands and identifies the critical factors for bringing functional waters to market.

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.

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Anlene: What makes the world’s biggest bone-health brand so successful? Positioned as “Expert in Bone Nutrition”, Fonterra’s Anlene dairy brand dominates the high-calcium milk segment in Asia and is the biggest bone health brand in the world. Anlene has achieved that position as the result of both innovation in science and innovations in marketing, marketing communications, packaging and products. It’s a case study that provides a model of best practice for anyone looking to communicate clinically-proven benefits.

Danone Actimel: Innovation Builds a Probiotic Mega-BrandDanone’s Actimel probiotic drinking yoghurt is the world’s biggest immunity brand and one of the world’s biggest and most successful probiotic brands. In this report Actimel’s marketing communications, pricing, packaging, labeling, merchandising, advertising and consumer insights are analysed and explained in detail and illustrated with colour photographs, charts and images from advertisements to provide valuable lessons from which all food and beverage businesses can learn.

Innocent Drinks: What makes Europe’s fastest-growing smoothie brand so successful? For any company, large or small, looking to create a successful health proposition the story of the meteoric rise of smoothie makers Innocent Drinks shows what can be achieved in a tough, highly competitive category. Innocent’s strategies are not elusive, nor unachievable – they are instead steps that any company can easily take to propel its brands to new levels.

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