ClarityFocusPremix

Ideation PrototypeShown at the 2013 IFT Food Expo

Chicago, IL

Core Competencies

Contact Information

Corporate Headquarters

Address: 301 Heffernan Drive West Haven CT 06516 U.S.A.Telephone: 800-388-3481 or (203) 932-3000 (203) 932-8266 (fax)E-mail: info@watson-inc.com

Additional Locations:

Orange CT 06477 U.S.A.Taylorville IL 62568 U.S.A.

www.watson-inc.com

Founded in 1939, our headquarters located in West Haven, Connecticut, is home to our modern 85,000 and 50,000 sq. ft. facilities which house our manufacturing, warehouse, analytical and Research & development departments. Watson has a 66,000 sq. ft. manufacturing and distribution center in Taylorville, Illinois.

IngredientsWater, Agave nectar, Flavor, orange extract, pure, Flavor, vanilla extract, Citric Acid, Choline Bitartrate, Ascorbic Acid, Sodium Chloride, Maltodextrin, L-Carnitine, Niacinamide, FD&C Blue #1 Pyridoxine Hydrochloride, D-Calcium Pantothenate, Folic Acid, Biotin, Cyanocobalamin.

Custom Nutrient Premixes

Micro-Encapsulated Vitamins & Minerals

Perfect GrainTM - The Wholegrain Solution

Clear-ETM for Beverages - CWS Vitamin E

Beta Carotene

Functional Bakery Ingredients

Overview of this Beverage ConceptClarity is formulated as an energy beverage without any caffeine or guarana. It contains mental clarity and acuity enhancing ingredients.

The Market OpportunitiesPeople buying energy beverages are predominantly those 18 to 34 years of age. They are VERY loyal to their brand and there are two brands that dominate the market right now. This makes entry to this market very challenging.

The one group that is typically not consuming energy beverages is the 55 and older demographic. This group has the biggest projected population growth during the period of 2011-16. They do not consume many energy beverages right now. The reasons they cite (according to Mintel) include safety concerns and that they make them feel jittery. Interestingly enough, 78% of consumers over age 55 drink coffee, and 68% of those 55 and older take a vitamin supplement.

There are lots of ingredients in energy beverages other than caffeine and vitamins that might be a concern based on the level of caffeine.

Mental clarity should also appeal to the 18-34 age group. Non-users of energy drinks in this age group cite concerns over the safety of energy beverages for the reason they do not use them; in particular they are concerned about the caffeine level.

What Makes Clarity Different?Clarity does not contain a number of ingredients commonly found in energy drinks such as glucoronolactone, inositol, milk thistle extract, and guarana or taurine. Most importantly perhaps we are not using caffeine or guarana for energy. This simpler profile should make it attractive to the 55+ age group. Senator Durbin’s famous August 2012 letter to the FDA on energy beverages calls out the use of taurine in particular. It does not have GRAS status for use in foods and beverages. It is approved for use as a flavor only.

One concern with energy beverages right now is the caffeine level. Colas have about 30 mg of caffeine per serving and coffee has about 135 mg. Energy beverages on the market today have caffeine levels running from 80 mg to over 250 mg. Senator Durbin’s letter speaks to beverages with 200 mg and more. The amount sanctioned by the FDA for cola beverages was limited to 200 mg. In today’s market with all the bad press, less may actually be more.

The Clarity beverage prototype appeals to the 55+ demographic and gives them something they do want … mental focus. There is a lot of overlap between energy and mental focus. The 55+ group is very concerned about mental wellness and focus. Clarity contains choline (a GRAS ingredient) and vitamin B5, which combine to form the neurotransmitter acetylcholine.

Roughly 35% of all adults aged 18+ have no interest in energy drinks. Concern about the caffeine content in energy drinks is the second highest reason for not using energy drinks among the 1,460 consumers surveyed by Mintel who did not personally consume energy drinks in the past three months, according to Energy Drinks and Energy Shots—U.S., June 2012.

Although energy beverages have a loyal following, negative news surrounding the possible dangers of consumption likely will impede usage among users and non-users alike.

How Clarity WorksThe B vitamins niacin, pyridoxine, vitamin B12, pantothenic acid, biotin and folic acid convert the carbohydrates in the agave syrup to energy. Agave syrup has a low glycemic index and releases slowly for sustained energy. Choline in combination with vitamin B5 forms acetylcholine, a neurotransmitter. L-carnitine is a vital amino acid found in our bodies which is responsible for the production of energy. When the level of L-carnitine is too low, memory function and energy levels can be affected. The electrolyte blend supports physical and mental stamina.

Watson’s RoleIn a beverage similar to this prototype Watson’s role would be to help the beverage manufacturer or marketer with formulation of the nutritional profile of the beverage. We utilize our expertise in selecting the optimal nutrient forms based on the characteristics of the beverage, processing, shelf life and packaging. Watson then formulates and produces a complete nutrient premix in one of our two manufacturing facilities. All nutrient premixes are shipped with a Watson Certificate of Analysis which is a guarantee that the product when used at the prescribed rate contains the appropriate nutrient levels.

Watson produces custom nutrient premixes for a wide range of foods, beverages and baked goods. Contact us for additional information.

Consider us your nutrition experts.