Flavours Newsletter

Dec 2003 Jan 2004- What’s new in Flavours


International
Business
INDIA: Spicing it up: the Indian flavour industry
India is a major world market for flavour, fragrance and essential oil ingredients. Driven by the growing processed foods, pharmaceuticals and cosmetics sectors, the flavour market is booming.
Today, India is the largest market in South Asia, representing a vast yet largely untapped outlet for many western-type goods and services India is projected to be one of the world's largest economies in terms of GDP, at purchasing power parity. Interestingly in an ageing world the Indian population comprises of a relatively high proportion of younger generations.
India is presently a major world market for flavours, fragrances and essential oils and this is expected to grow further with the population and economy. The 'served market' is currently catering to the urban rich and the middle class, and there is a very large untapped potential that can be unlocked given the right triggers. In short it is a market that can be shaped and moulded.
Just-food.com
http://just-food.com/features_detail.asp?art=802

International
Business
SCANDINAVIA: Skane dairy to add Reuteri to milk products
Leading Swedish dairy firm Skanemejerier has gained the rights to use BioGaia's probiotic Reuteri bacteria in milk products for launch on the Scandinavian market at the end of next year.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48207

International
Business
NORWAY: Norwegians drinking more spirits
Spirit consumption in Norway is on the rise. Statistics Norway, the country's state statistics agency, has released figures showing an increase in the amount of spirits drunk by Norwegians.
The registered consumption of spirits rose in the third quarter by 22.3% year-on-year, to 477,000 litres. Total spirit consumption for the nine-month period of January-September 2003 increased to 946,000 litres up by 14.6% year-on-year.
According to the statistics, each Norwegian citizen over the age of 14 consumed 4.36 litres of pure alcohol during the first nine months of this year, an increase of 3.8% on the same period last year.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21586&dm=yes

International
Business
GLOBAL: Soft drinks to become leading category
Global consumption of soft drinks is rising by 5% a year, well ahead of all other beverage categories, according to a report released by Zenith.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21654&dm=yes

Soft drinks are hot - and getting hotter
Soft drinks are set to become the biggest beverage sector in the world, overtaking hot drinks, with consumption rising by around 5 per cent a year, according to a new report from Zenith International. But while the US remains the biggest market for now, it is Asia which is likely to be the main driver of sales growth in the future.
Growth in the global soft drinks market is far greater than that in other beverage categories, according to Zenith, and total sales should reach 467 billion litres this year, equivalent to 75 litres per person.
Nutra Ingredients, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e109833420&e=6327

International
Business
RUSSIA/FINLAND: Leaf to expand into Russia
Finland's leading confectionery company, Leaf, has said that it is to build a factory in St Petersburg, Russia, for the production of functional pastilles and lollipops.
Foodproductiondaily
http://www.foodproductiondaily.com/news/news.asp?id=48454

International
Business
IRELAND: Drinks firms merge to form major force
TWO leading drinks distributors have joined forces to create a major new force in the trade. The strategic partnership between Barry & Fitzwilliam and Maxxium.
Ireland has, at a stroke, created a powerful 55m operation that joins the big players at the top of the trade.
Irish Examiner, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e108515073&e=6327

International
Business
SCANDINAVIA: Scandinavian retailers forge Baltic venture
Kesko Food of Finland and the Swedish group ICA are to merge their businesses in the Baltic States in a bid to garner a 25 per cent share there over the next three years.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=48695

International
Business
RUSSIA: Over one-third of Russians do not drink vodka - poll
Over one-third of Russians surveyed - 37% - do not drink vodka at all and are therefore not concerned that it's going to become more expensive, a poll has shown.
ROMIR Monitoring polled over 1,600 respondents after a change was made in alcohol excise collection on January 1, 2004. This year, the producers of alcohol beverages will pay 20% of the excise rate.
Nearly the same number of respondents - 32% - answered that the fact that vodka is becoming more expensive is unpleasant news for them, but they have taken it quite well as their "family members do not drink much vodka.
Interfax Information Agency, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e119240049&e=6327

International
Business
Weak dollar signals tough times for cheese exporters
Many UK cheese manufacturers are preparing for tough trading as the weakening US dollar continues to push up prices, which produces a knock-on effect on sales.
Financial Times, on Headlines from Mintel

Supply Chain
Fab profits at Richmond Foods
Ice cream manufacturer Richmond Foods posted a 28% jump in full year pre-tax profit on the back of increased market share in the UK.
For the year to September pre-tax profit rose to £10.5m from £8.2m, as sales rose 9% to £127.2m.
Richmond's share of the take home market - which accounts for 80% of its turnover - rose from 24.8% to 27.7%, due to successful launches of own label lines at Sainsbury, Safeway and the Co-op and of its Nestlé tub range.
In the impulse sector share grew from 24.6% to 25.1% in a market boosted by the hot summer.
Grocer.TodayAlerts.com
http://www.grocertoday.co.uk/article.asp?s=1&a=262858

Supply Chain
A mixed year for Arla
Dairy giant Arla Foods has posted slightly increased profits of DKK 1094m (EUR147m) for the 2002/03 financial year - but it's not been all plain sailing.
Facilities have been closed and the Swedish vote against the Euro has cast doubt on long term stability. Nonetheless, the group is content to have recorded a small advance on last year's profits of DKK 1,085 million. In general however, the financial results indicate that this year's performance almost exactly corresponds with the company's performance in 2002.
Dairyreporter
http://www.dairyreporter.com/news/news.asp?id=48070

Supply Chain
Tesco launches Free From range
Tesco has also launched a new own-brand food range - called Free From - made without ingredients such as cow's milk, wheat and gluten.
Industry news alert from mad.co.uk
http://www.mad.co.uk/story.aspx?uid=dcb90ebb-c511-4c26-be59-56768c62d65c

Supply Chain
Coca-Cola to take on bottled water giants in France
France is the home of some of the world's biggest mineral water brands - Perrier, Vittel, Evian, Volvic, to name just four - but a new entry into the market early next year is likely to give brand owners such as Danone and Nestlé pause for thought.
For Coca-Cola, the Atlanta-based company which is the world's biggest soft drink producer, has announced that it is to launch its Dasani brand of bottled water in the French market next year, putting its not inconsiderable marketing might behind a brand which most French people have never heard of.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48204

Supply Chain
Tesco 55% at factory gate
Tesco has negotiated factory gate pricing contracts with more than 1,000 suppliers making up 55% of its volumes. Tesco has dismissed suggestions it's scored easy wins on chilled frozen - "the low hanging fruit" - but had been slower to get ambient suppliers on board. They claim that reluctance from suppliers in the early days was because Tesco wasn't clear about the objectives of control and visibility, not just saving money.
The Grocer

Supply Chain
Vodka bar shares at all time low
INVENTIVE Leisure, the Tameside-based group which operates Revolution vodka bars, is likely to become a takeover target after its shares plunged to an all-time low, analysts predicted.
The shares slumped 12.5p to 64p following a gloomy trading update by chairman John Green.
Just two months ago the shares reached a year-high of 140p. But, in mid-November, Inventive Leisure said sales had declined since June and warned full-year results may fall short of forecasts.
Like-for-like sales are about 8.5 per cent down on last year, although overall turnover is up 27 per cent, following the launch of bars in places such as Bath. A new Revolution bar will open in Hull before Christmas, taking the number in the group to 38.
The group is implementing cost-cutting measures and is trying to boost sales in those bars which have slumped the most.
Manchester Online, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e106999620&e=6327

Supply Chain
Juice trade tackles market
The World Trade Organisation (WTO) asserts that the world trade pattern for agricultural products in general, and for fresh horticultural and fruit juices in particular, is changing rapidly. Coming to terms with changes, two industry bodies in the US have joined together to increase their strength.
In the past decade the market has seen an 'important redistribution of the cards'. Coming to terms with changes, in the US two industry bodies have joined together to increase their strength.
Based in Washington, D.C. the National Juice Products Association and the Processed Apples Institute have joined up to become the Juice Products Association (JPA). The new 130-member body will set out to co-ordinate information and come up with strategies for the industry.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48280

Supply Chain
Nisa-Today's plans 200 Today's Express stores
Nisa-Today's plans to open 200 stores under its Today's Express forecourt format, launched in lmmingham, Lincs in November. The prototype offers groceries, alcohol, chilled sandwiches and snacks, soft drinks, confectionery, newspapers and food to go.
Grocer, on Headlines from Mintel

Supply Chain
De Roma calls in administrators
Wigan-based ice cream maker De Roma is entering administration, making 55 of its 200 employees redundant.
Ernst & Young is the appointed administrator of the business, which is the UK's largest own-label ice cream maker with an annual turnover of £21m.
Independent, on Headlines from Mintel

Supply Chain
Asda begins pet insurance pilot
Asda has started a pet insurance pilot in selected stores across the UK.
Grocer Today, headlines from Mintel

Supply Chain
Traceability controls for M&S
Marks & Spencer has launched a new code of practice for suppliers to its fresh produce range. The retailer said that all suppliers would have to meet its produce standards, which now define stricter rules on the protection of the environment. These standards cover food safety in the field, minimisation of pesticides and traceability controls.
Food Industry News, December 2003

Supply Chain
Kerry buys Hibernia ready meals
The receivers in charge of Ireland's Hibernia Foods since the company defaulted on a loan repayment back in October have announced the first disposals of the company's various businesses.
Receivers Myles Halley and Allan Graham of KPMG Corporate Recovery said that the first units to be sold were Hibernia's ready meals and chilled deserts operations, which have been bought by another Irish group, Kerry.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48581

Supply Chain
Safeway agrees to Morrison's £3bn bid
Shareholders at Safeway have accepted Sir Ken Morrison's £3bn offer for the troubled supermarket business, paving the way for the deal to go ahead early next year.
The Times, on Headlines from Mintel

Supply Chain
Cott predicts healthy 2004
Cott Corp. (Canada) predicts a healthy growth in earnings and sales next year. The company said that it expects earnings for fiscal 2004 to rise by around 15%.
Cott, the world's largest supplier of store-brand soft drinks, estimates an increase in sales next year of between 10% and 12% year-on-year.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21661&dm=yes

Supply Chain
Cott buys U.S. beverage group, signs supply deal
Cott Corp, the world's largest supplier of store-brand soft drinks, has moved to expand in the United States with the purchase of North Carolina-based Quality Beverage Brands L.L.C.
Subsidiary Cott Beverages Inc. will buy Quality's retailer-brand beverage business and also agreed to a long-term manufacturing contract with bottler Independent Beverage Corp., Quality's affiliate.
Financial terms were not disclosed, but Cott said the acquisition and related manufacturing deal will add about $45 million a year to Cott's sales in the United States.
The deals will give Cott greater access to the mid-Atlantic region, building on the company's U.S. expansion plans over the last three years.
Reuters, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e111269860&e=6327

Supply Chain
RHM planning overhaul of cakes business
Food company RHM has signalled that it is planning an overhaul of its cakes division, in the face of falling sales amidst pressure from supermarkets' own brand cakes.
The company, which owns the Mr Kipling cakes, Hovis and Bisto brands, will launch new initiatives in new product development, brand support and the supply chain. It said that there will be five new brands in January, with more planned for the near future.
Financial Times, on Headlines from Mintel

Supply Chain
Job cuts in colours
Hot on the heels of disappointing third quarter results, notably in the colours division hit by weaker sales in the US, Sensient Technologies has announced a round of cost cutting measures which include job losses.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48735

Supply Chain
Northern Foods sells Irish arm
Northern Foods, which counts Fox's Biscuits among its portfolio, has sold its Irish operations for €95 million (£66.7 million), as part of its attempts to reduce its debt pile.
Mad.co.uk
http://www.mad.co.uk/story.aspx?uid=6a9c55db-3217-455b-ae1f-ba2ad6e5caa5

Supply Chain
Christmas comes early for Cargill
Food giant Cargill has acquired OCG Cacao, a major supplier of industrial chocolate to the European food industry. The deal, which was initially announced in September, has been completed following the necessary regulatory approvals.
OCG Cacao has grown rapidly since it was founded in 1997 and claims to have the most modern chocolate processing plants in Belgium, France and UK. Belgian-based OCG Cacao operates a chocolate processing plant at Worksop, Nottinghamshire. It also operates sales offices in Germany and the USA.
Cargill believes therefore that the acquisition will give the group a significant foothold in the European chocolate market.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=48726

Supply Chain
Crystal Drinks sold
Crystal Drinks, the own label soft drinks supplier, has been sold to a team comprising part of the existing management, according to Roger Marsh, joint administrator at receiver PricewaterhouseCoopers.
Grocer Today, on Headlines from Mintel

Supply Chain
Waitrose named Compassionate Supermarket of the Year
Waitrose, the food retail division of the John Lewis Partnership, has scooped the title of Compassionate Supermarket of the Year. Waitrose was handed the award by the Compassion In World Farming Trust in recognition for its high sales of free-range and organic products, its commitment to reducing animal transport time and its stand against genetic engineering.
Natural Products, on Headlines from Mintel

Supply Chain
Hibernia Foods' frozen desserts business sold
KPMG, administrative receiver of Hibernia Foods, has announced the sale of the food company's frozen desserts business based at Stockton-on-Tees.
The sale was concluded on 2 January 2004 to Country Style Foods Limited, a Leeds-based manufacturer of frozen foods.
However, it was unable to conclude a sale of the Bridlington factory which predominantly manufactures frozen desserts under the Sara Lee brand. Consequently, the workforce has been made redundant.
Hibernia's Chilled Foods (Birmingham) and Ready Meals (Brenda Road, Hartlepool and Bristol) businesses and the frozen desserts business based in Oakesway, Hartlepool have already been sold.
Just-food.com
http://just-food.com/nd.asp?art=56329&dm=yes

Supply Chain
Arla Foods to milk innovation
Dairy giant Arla Foods has created a new UK Ideation team within its marketing department to drive category growth ahead of its competitors. The new team's objective is to pioneer new product development in the sector and will be headed by Danny Micklethwaite, who was previously Business Unit Controller for Yogurts and Desserts.
Food & Drink International, December 2003

Supply Chain
Sweet opportunity
Food giant Cargill has opened a plant to manufacture erythritol, a sweetener that is claimed to taste like sugar but contain no calories. The group believes there is real potential in the product, and has already signed an agreement with a Japanese company to supply the product in the Far East.
The construction of the first erythritol manufacturing plant in the US was carried out in response to an increased worldwide demand for healthy calorie-reduced foods. The $60 million facility in the US is now fully operational and set to manufacture Eridex-brand erythritol, Cargill's non-caloric bulk sweetener.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48891

Supply Chain
£9m plant upgrade
Richmond Foods has embarked on the final phase of a £9m investment at its Crossgate factory in Leeds to meet extra demand for its Fab lollies and to produce its new Yorkie and Toffee Crisp ice cream bars.
The Grocer

Supply Chain
British Vodka maker to change name
British vodka makers Blavod are set to change their names to Blavod Extreme Beverage after a reverse takeover by the American company Extreme Beverages. This has raised £10 million as opposed to the expected £8 million.
Daily Telegraph, on Headlines from Mintel

Supply Chain
Price pressure to dominate UK retail in 2004
If 2003 was all about Safeway, and in the end Morrison's, in 2004 the UK grocery market agenda will be dominated by price. That is the key finding of a new report from retail market analysts Verdict.
The Morrison's acquisition will emerge as one of the key defining events in the history of UK grocery retailing and the impact from the deflationary fall-out will be considerable, according to Verdict.
With price deflation expected to be -1.0 per cent this year, compared to inflation of +0.9 per cent for 2003, the UK supermarket sector will be a very different place to do business in 2004 than it has been over the past few years, Verdict suggested.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=49038

Supply Chain
Sales rise for Richmond Foods
The company who owns the ice cream business Nestle, Richmond Foods, saw sales rise 17% in the traditionally quietest quarter of the year.
The Times, on Headlines from Mintel

Supply Chain
Co-op sets Fairtrade precedent
Co-op has sent a dramatic message to the big coffee brands by announcing its pledge to switch all its own-brand and instant coffee to Fairtrade.
Ethical Consumer, on Headlines from Mintel

Supply Chain
Glisten continues to carve confectionery niche
Glisten is already one the UK's biggest suppliers of own label confectionery products, and with the acquisition of F Fravigar it will further strengthen its position.
Glisten is not a name that will be known to many consumers in the UK, but with Britons among the most sweet-toothed consumers in Europe, the chances are that many of them will have eaten confectionery products made by the company, one of the UK's leading own label suppliers.
A possibility which is likely to become even more of a certainty in the future with the announcement that Glisten has bought another niche player in the UK confectionery market, the family-owned F Fravigar group, for £6.5 million.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=49077

Supply Chain
Diageo appoints UK innovation director
Virginia Proud has been appointed UK innovation director at Diageo. Proud will be responsible for new product launches in the UK as well as developing new concepts as part of Diageo's international innovations team.
Marketing Week, on Headlines from Mintel

Supply Chain
Supply chain to suffer from supermarket price war
An impending supermarket price war, due to kick off as the major players compete for market share in the wake of Wm Morrison's acquisition of Safeway, could spell disaster for British farmers, according to government farming tsar, Sir Don Curry. It is thought that the leading supermarket chains are planning to cut as much as £1 billion off grocery bills this year, with Sainsbury's, Asda and Morrisons, which command 16-17% each of the market, aiming to make up ground of market leader Tesco, which commands a 25.8% share.
Guardian, on Headlines from Mintel

Supply Chain
Muller leaves Kellogg for McVitie's
Muller Dairy UK has ended its co-branded venture with Kellogg after three years, but has linked with McVitie's in a joint venture which will see the launch of a range of indulgent products.
Marketing Week, on Headlines from Mintel

Supply Chain
Tate & Lyle profits warning
Tate & Lyle, the sugar company, has issued a profits warning. Last summer's heat-wave has triggered a dearth of wheat and hit margins in its Amylum sweeteners business.
thisislondon.co.uk, on Headlines from Mintel

Products & Brands
New packaging to crack Russian yoghurt market
A new yoghurt container which can be used as a toy for children after the contents are eaten is the new Russian patented design which the producers have this week decided to put the licensing for reproduction up for sale.
Foodproductiondaily.com
http://www.foodproductiondaily.com/news/news.asp?id=3876

Products & Brands
Richmond Foods goes for low-cal product
Richmond Foods is to launch a low-calorie ice cream in response to the growing fears over obesity.
The ice cream, called Skinny Cow, claims to have fewer than 100 calories per bar. The group already manufactures Weight Watchers ice cream for Heinz.
Grocer.TodayAlerts
http://www.grocertoday.co.uk/article.asp?s=1&a=262864

Products & Brands
Horlicks brand extension
In a bid to take on the main drinking-chocolate brands, GlaxoSmithKline is planning to extend its Horlicks brand into the children's market. Three new flavours, including chocolate and strawberry, in single-sachet packs are planned.
Marketing Week, on Headlines from Mintel

Products & Brands
First soy-based alcoholic drink to launch (USA)
Chicago-based drinks company Sovereign Brands LLC has created what is says is the world's first alcoholic beverage distilled from soy. Called 3 Vodka, this super premium vodka took three years to develop. However, a pending patent, has kept the manufacturing and distillation process a secret with only "soy isolates" being declared as a key ingredient; they are broken down into a liquid concentrate that that is combined with fermented grains to make the finished product.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21540&dm=yes

Products & Brands
Lattice Fingers point to the buffet table
Apetito has launched four new flavours of Lattice Fingers: Cheese & Onion; Cheese, Ham & Egg; Cheese, Garlic & Mushroom; and Mediterranean Vegetable. The company claims they are perfect for festive buffets.
British Baker, November 2003

Products & Brands
Tesco tops Christmas pudding list
A Consumers' Association tasting panel has judged that Tesco Christmas puddings are the best available, significantly ahead of the Queen's supplier, Fortnum & Mason. The panel gave Tesco's Finest Vintage Christmas pudding the top score with eight out of 10.
The Times, on Headlines from Mintel

Products & Brands
Limited-edition green Ribena
As part of a tie-in with animated film Shrek 2, GlaxoSmithKline is planning to launch a limited-edition green Ribena. The limited-edition drink will be apple and cranberry flavour.
Marketing Week, on headlines from Mintel

Products & Brands
Watermelon addition
Watermelon is set to hit the ambient juice drinks fixture in the form of a new Brazilian addition to Del Monte's World Fruits range.
Watermelon joins Ecuadorian Passion Fruit, Italian Blood Orange, New Zealand Kiwi Fruit and Indian Mango and Papaya in the multicultural range. It replaces the Costa Rican Banana due to be de-listed and previously axed Peruvian Star Fruit.
The Grocer

Products & Brands
Radnor Hills Mineral Water launching own-brand
Own-label mineral water supplier to several UK companies Radnor Hills Mineral Water is introducing its own brand, Heartsease Natural Spring Water. It follows the discovery of a new water source in mid-Wales.
The brand is named after the Heartease pansy which, according to folklore, has special properties that can mend a broken heart.
Marketing, on Headlines from Mintel

Products & Brands
Organic, exotic
A new range of organic teas and fruit infusions will debut in the new year. The Numi range, to be distributed by Union Coffee Roasters, is already available in the US and will go on sale in UK independents after Christmas.
The 10 variants carry exotic names such as Morning Rise black tea, Monkey King jasmine green tea, Temple of Heaven which is a gunpowder green tea, and Sweet Meadows - a blend of camomile, lemon and myrtle.
The Grocer

Products & Brands
Beverage Brands axes 'tired' Woody's
Beverage Brands is axing its Woody's brand because it failed to maintain its "kudos". According to the company, Woody's gelled with older people but not with new, younger consumers.
The Grocer

Products & Brands
Jack RTD fails the test
Bacardi Brown-Foreman has scrapped plans to launch a pre-mixed Jack Daniels and cola RTD after consumers complained it was too expensive.
However, a second RTS, Tennessee Gold, which combines whiskey and ginger ale and has been on test since the summer, is faring better and will remain on test.
The Grocer

Products & Brands
Three flavours added
SOBE Beverages is adding three new flavours to its beverage portfolio.
SoBe Black and Blue Berry Brew has a natural berry flavour, a blend of blackberry and blueberry juice, and is the latest entry in the dairy Lizard Line. It contains vitamin C, E, guarana and juniper berry for the health conscious consumer.
SoBe Pomegranate Cranberry Elixir features real pomegranate and cranberry flavours with SoBe's 3 C package of carnitine, chromium and vitamin C, to give a better-for0you boost.
SoBe Courage offers a cherry flavour with added ginseng, guarana and taurine.
Soft Drinks International, December 2003

Products & Brands
Soy drink
Vancouver-based Leading Brands Inc has launched a new beverage brand called Soy20 to target the multi-billion soy-drink market. The drink is a combination of fruit flavoured water and natural soy isoflavones, which are reputed to have health benefits.
Soft Drinks International, December 2003

Products & Brands
Pot Noodle to launch Mexican flavour
Unilever Bestfoods is launching a Mexican Pot Noodle flavour with a £3 million marketing drive, which will incorporate the controversial dirty theme of previous campaigns.
Industry alerts from mad.co.uk
http://www.mad.co.uk/story.aspx?uid=728048dc-eb56-4854-b8e2-49d1d1fe7e06

Products & Brand
Qibla adds mango to drink range
Qibla Cola has added a new flavour to its soft drink range. The company, which markets its products as an ethical alternative to those produced by global corporations, has launched a mango-flavoured carbonate. The mango drink joins cola, lemon and lime and an orange drink in the UK company's assortment of drink products. Qibla is also planning to introduce a guava flavour next year. The drinks are available in 500ml and two-litre sizes.
Food Industry News, December 2003

Products & Brands
Diet coke becomes UK's top-selling drink
Diet coke has overtaken its sugar-filled counterpart to become Britain's best-selling soft drink with sales tripling over the past five years.
Financial Times, on Headlines from Mintel

Products & Brands
Slingshot on target with new flavoured vodkas
A new range of flavoured vodkas is being launched into the UK on-trade by a Gloucestershire-based firm.
The Candy Shot Company has unveiled its Vodka Slingshot range, consisting of more than half a dozen flavours including Raspberry Rush, Straight Banana and Lemon Lime Lick.
The liquid is a mix of premium vodka and candy flavours sourced from Sweden.
With an ABV of only 25 per cent, the Slingshot range is designed to be consumed in cocktails, long drinks or as a down-in-one concept.
thepublican.com
http://www.thepublican.com/item/12023/11

Products & Brands
Bovines to inherit the earth
Dublin-based Excite! Beverage Co. and US partner the Sparkling Milk Company have launched Sparkling Cow, the latest beverage to follow the dairy-based beverage trend. But Sparkling Cow isn't just another flavoured milk. The carbonated fat-free beverages are enriched with vitamins A, C and D and packaged in slim 8-ounce cans. There are three flavours - Luscious Lemon, Outrageous Orange, and Sweet Strawberry.
BeverageWorld, November 2003

Products & Brands
A whiter shade of cranberry arrives
Gerber Foods is aiming to persuade more families to drink cranberry juice with its biggest UK launch yet.
It is following US success by introducing UK consumers to a range of sweeter, white cranberry-based blends under its Ocean Spray banner. The aim is to emphasise the less tart taste of white berries, the fruit's second stage of development, harvested several weeks before they turn red and acquire the familiar sharp flavour.
The three white cranberry combinations - with grape, apple or peach - are targeted at households with children who do not currently drink red cranberry products.
The Grocer

Products & Brands
Acid test
Mixed results from the Grocer consumer and buyer test of new Bacardi Breezer Diet Orange and Vanilla.
Consumer rating 12 out of 25; buyer rating 12 out of 25; total 24 out of 50
Consumer comments question whether orange and vanilla can work together; and a noticeable lack of sweetness.
The Grocer

Products & Brands
GSK's failed assault on chilled drinks
GlaxoSmithKline is axing its healthy juice brand Plenty.
It seems that GlaxoSmithKline has finally admitted defeat with its 'super-juice' brand. Plenty's product life cycle has spanned two years and has been particularly troublesome. The case highlights the importance of effective brand positioning and developing lifestyle supporting functional benefits.
The decision to axe Plenty follows a period of disappointing sales. Leading retailers Asda, Tesco and Safeway all stopped stocking the juice in November after reviewing the brand's performance. Unfortunately, there seems to be an element of deja vu for GSK. In 1999 the company attempted to enter the smoothie market using its well-established Ribena brand, only for the product to be withdrawn in 2000.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21703&dm=yes

Products & Brands
Unilever to introduce diet ice cream
Anglo-Dutch food and consumer goods giant Unilever is reportedly planning to introduce diet versions of several of its key ice cream brands, including Magnum and Carte d'Or.
In a move aimed at winning back customers who are concerned about obesity, Unilever plans to re-launch around 20% of its ice cream portfolio in April, reported the Sunday Times.
The company also plans to remove E-numbers, highly refined sugar and other unhealthy ingredients from its products within three years.
According to Unilever, one of the great myths is that you can't sell a diet ice cream, but about 20% of their total ice-cream portfolio will be changed in a significant way to gain it a competitive advantage.
just-food.com
http://just-food.com/nd.asp?art=56290&dm=yes

Products & Brands
MiniRolls go bananas
Manor Bakeries is getting straight onto the campaign trail for Cadbury MiniRolls in 2004.
Despite retaining its position at the top of the cake category (The Grocer Top Products Survey, December 13), the brand saw a 7.1% dip in sales in the multiples in the year to October 4.
But Manor has signalled its intent to bolster the brand by adding a new Banana variant, available from the new year.
Grocer.ToadayAlerts.com
http://www.grocertoday.co.uk/article.asp?s=2&a=263799

Products & Brands
World facing a tequila drought
The world is facing a tequila drought because of the popularity of designer drinks. Tequila is distilled from the Blue Agave, a Mexican cactus, but the plant takes 10 years to mature. As more tequila is used in designer drinks, stocks are becoming depleted.
Daily Express, on Headlines from Mintel

Products & Brands
Kombucha variant added to RTD chilled tea range
Drinks company MangaJo has added a Kombucha variant to its ready-to-drink chilled tea range. Kombucha Tea is positioned as a vitality drink and contains a yeast and bacteria formulation.
Marketing Week, on Headlines from Mintel

Products & Brands
Tropicana launches new Essentials Line
Food Ingredients First, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e114420429&e=6327

Tropicana releases health-conscious sub-line (USA)
Tropicana Products has announced immediate availability of a new sub-line of products for the health-drink market. The five varieties, known as Premium Essentials, include products with less sugar and calories or more vitamins and minerals.
The five varieties in the new sub-line are: Light 'n Healthy, with one-third less sugar and calories than orange juice; Healthy Heart, with six vitamins and minerals proven to positively effect risk factors for cardiovascular disease; Immunity Defense, with all three essential antioxidants - vitamins C and E and selenium - to support a healthy immune system; Low Acid, which delivers less acid without compromising taste, and Healthy Kids, with immunity-supporting vitamins, calcium for strong bones and a specially formulated, 'kid-friendly' taste.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21783&dm=yes

Products & Brands
Safeway launching children's food range
Safeway is launching Safeway Kids Food, a food range aimed at children aged between three and eight-years old.
Marketing Week, on Headlines from Mintel

Products & Brands
Unilever plans diet ice cream launch
Unilever Ice Cream and Frozen Foods is planning to introduce diet versions of some of its
best-known ice-cream brands as part of a move to promote a healthier product to consumers. Brands such as Magnum and Carte d'Or will also see E-number ingredients and highly refined sugars being removed in products under a three-year plan from Unilever. The diet brands will launch in April and will go into competition with Richmond Foods' Skinny Cow brand, which is also coming on to the market this year.
Food Industry News, January 2004

Products & Brands
Best of 2003 (USA)
The website monitoring soft drink product development in America has issued its BevNET "Best of 2003" Awards, recognizing those products that had a special impact on 2003. The list includes:
Best New Product / Best Carbonated Soft Drink - STEAZ GREEN TEA SODA
Best Non-Carbonated Soft Drink - INKO'S WHITE TEA
Best Energy Drink - MONSTER ENERGY DRINK
Best Dairy Based Beverage - SPARKLING COW
Best Packaging - POM WONDERFUL
Most Outrageous Product - JONES TURKEY & GRAVY

There is also a section for readers' favourites, which includes:
Best New Product - STEAZ GREEN TEA SODA - 11,521 votes
Best Energy Drink - Pimp Juice - 34,904 votes
Strangest Product - Jones Turkey & Gravy Soda - 20,087 votes
BevNet.com
http://www.bevnet.com/news/2003/01-08-2004-bestof2003.asp

Products & Brands
World's "first" soya vodka
Chicago-based drinks firm Sovereign Brands LLC has created what it says is the world's first alcoholic drink distilled from soya. A pending patent has meant only 'soy isolates' have been declared as a key ingredient.
Wine & Spirit International, January 2004

Products & Brands
Top viewed reviews (USA)
Also of interest from BevNET, is the list of most viewed soft drinks reviews. Those product reviews that attracted the most interest, or visitors to their website. The top ten in 2003 were:
Red Bull Energy Drink
Glaceau Vitamin Water
Orbitz
Pimp Juice
Starbucks Frappuccino
SoBe Adrenaline Rush Energy Drink
XS Energy Drink
Bong Water
Impulse Energy Drink
Stewart's Fountain Classics
BevNET.com
http://www.bevnet.com/reviews/rankings.asp

Products & Brands
Going Sloe for the young
Diageo is hoping to recruit younger consumers into the gin sector with the re-launch of Gordon's Sloe Gin.
The makeover is intended to propel it from niche product to "the new drink of 2004". The liquid will not change, but the packaging has been radically overhauled, bringing its appearance in line with Gordon's principal line.
Made from a combination of sloe berries and gin, the 26% abv spirit is being positioned as a versatile spirit, suitable for cocktails and "new drinking experiences".
The Grocer

Products & Brands
Diet mineral water launched by Nestle
Contrex, a mineral water which claims to help drinkers lose weight, has hit the UK's shelves. The 'diet' mineral water contains calcium and magnesium which, according to maker Nestle, clears toxins and fights tiredness.
Nestle also claims that Contrex can work as a slimming aid.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21865&dm=yes

Products & Brands
New Casterbridge chewy cookie collective (USA)
The cake company, Casterbridge is adding a new selection of chewy cookies to its bakery product range. There will be four varieites; Chocolate, Banoffee, Coconut & Cherry and Mochaccino.
Independent Retail News, on Headlines from Mintel

Products & Brands
Rachel's Organic launching chilled dessert
Dairy company Rachel's Organic is launching Rachel's Divine Rice, its first chilled dessert.
Marketing Week, on Headlines from Mintel

Products & Brands
Unilever and Pepsi join low-carb trend
Unilever and Pepsi have announced plans to launch low-carbohydrate versions of some of their most popular brands, in an attempt to capitalise on a perceived growth in demand for such products among consumers.
Unilever and Pepsi have announced plans to launch low-carbohydrate versions of some of their most popular brands, in an attempt to capitalise on a perceived growth in demand for such products among consumers.
Following a fall in sales for its Slim-Fast range of diet products, Unilever plans to launch a line of brands under the Carb Options Tag, while Pepsi revealed that it will develop reduced carbohydrate versions of its Doritos and Tostitos tortilla chips.
Mad.co.uk
http://www.mad.co.uk/story.aspx?uid=edda3322-6c1e-424e-9097-9f739c6bda91

Products & Brands
SKYY to roll out melon vodka (USA)
SKYY Spirits, a unit of Milan-based Gruppo Campari, will roll out melon-flavoured vodka this spring. Blended from honeydew, cantaloupe and watermelon flavours.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21891&dm=yes

Products & Brands
Tesco launches slimming foods for pets
Overweight pets are being catered for by a new range from Tesco in the UK.
These fat-busting goods follow a report from pet charity 'Blue Cross' that said 20% of animals treated at its UK animal hospitals are obese. Tesco's product range will be on shelves by early Summer, 2004.
Irish Independent, on Headlines from Mintel

Products & Brands
Coke launches lime variant
The last few years have seen new product launches by the world's top two soft drinks companies, with new flavour or formula variants. The latest is Diet Coke with Lime, launched in the US.
Beveragedaily.com
http://www.beveragedaily.com/news/news.asp?id=49134

Products & Brands
Erotic chocolate cosmetics, anyone?
Confectionery has joined forces with cosmetics in a rather erotic manner. Pop singer Jessica Simpson has launched a new line of beauty products that features whipped body cream and chocolate body gloss.
Simpson, along with designer Randi Shinder, launched the 'kissable, lickable' line of cosmetics and fragrances that carry one of the three scents - creamy, dreamy or juicy - in New York
Confectionerynews.com
http://www.confectionerynews.com/news/news.asp?id=49208

Products & Brands
Lion Confectionery re-launching Sports Mixture
Lion Confectionery is re-launching Sports Mixture, its bestselling sweets brand, with packaging designed to be convenient for consumers on the move.
Marketing, on Headlines from Mintel

Products & Brands
Britvic withdraws Tango Strange Soda
Britvic has withdrawn Tango Strange Soda after less than a year, following a troubled launch and poor take-up.
Marketing Week, on Headlines from Mintel

Products & Brands
Lucozade berry variant announced
GlaxoSmithKline is to expand the Lucozade Energy range with the launch of a wild berry variant following the introduction of Lucozade Citrus Clear last year.
Marketing Week, on Headlines from Mintel

Products & Brands
Sleep-promoting milk grows up
Richard Lealan Associates has redesigned the packaging of Red Kite Farms' Slumber Bedtime Milk, in a bid to reach a higher level of sophistication.
Packaging, on Headlines from Mintel

Products & Brands
Mid-morning snacks team up
Orchard Maid is set to embark on a joint promotion with Jordans, which will see a free Frusli bar given away with each purchase of the company's yoghurt drink from Tesco and Sainsbury's. The campaign is aimed at workers taking a healthy mid-morning snack.
Packaging, on Headlines from Mintel

Ingredients & Innovation
Bio-organic glucose syrup is cool choice fro Italian ice cream producers
Cerestar Food & Pharma Specialities Europe has added a new grade of bio-organic glucose syrup to its C*BioSweet product portfolio.
The new product meets demand from Italian ice cream producers, as the bio-organic food market grows rapidly with new developments identified in many food categories. C*Sweet DE 60 has particular benefits for ice cream manufacturers where the difficulties in balancing sweetness, freezing point depression and texture can be overcome through its use.
Food & Drink Business, October 2003

Ingredients & Innovation
Carotenoids, untapped potential for supplement makers
Europe's health food industry has 'under-utilised' the nutraceutical properties of carotenoids and consumers are still unaware of their health benefits, finds a new report on the $348.5 million (€291.4m) carotenoid market.
Market research firm Frost & Sullivan says that carotenoids, still used primarily as a colouring agent for the food and feed industries, have only been widely used in supplements in Germany.
Consumers in other European regions are unaware of their use as a food fortifier or as a new ingredient in a supplement, shows the new report, and this low level of public awareness about the health benefits of carotenoids is expected to stifle market growth in the short term.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48112

Ingredients & Innovation
New rules tackle unfair competition in additives
In a move to beat unfair competition, the European Council has adopted an amendment of its directive on food additives other than colours and sweeteners. The changes set out to harmonise the use of food additives in flavourings at an EU level.
The use of food additives is harmonised, which means that it is legislated at EU-level rather than national level and only substances that are explicitly authorised may be used.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=48185

Ingredients & Innovation
English soft fruit season success
The English soft fruit season proved one of the best on record, say industry leaders. Soft fruit had made a substantial contribution to the 7% increase in the value of the total fruit market this year, with soft fruit now worth £309m, beating stoned fruit at £261m.
Soft fruit is the fastest growing category, with melon the nearest growth competitor.
Strawberry volumes were up 30%, Raspberries = 56%.
The Grocer

Ingredients & Innovation
A step towards the Holy Grail
New from Belmay, a Natural Rhubarb flavour. Such a product is extremely rare in the industry and will be of interest to many food and drink manufacturers. It is especially well suited to Dairy, Bakery, Confectionery, Soft Drinks, and Organic applications

Ingredients & Innovation
Frost hits EU kiwis
Latest estimates point to the European kiwifruit crop being lighter than last year as a result of frost damage. The total EU crop I expected to total around 450,000 tonnes, down 4% on last season. Worst affected areas look to be Greece and Italy.
Also, California is expected to have the smallest volume in 20 years, only reaching 5m cartons.
The Grocer

Ingredients & Innovation
Key indicators
The following commodities have been reported as having significant price changes between October and November:
Coffee, LIFFE -1.7%; Orange Juice, NYCE + 3.7%; Tea, Kenya - 5.4%; Hazelnuts, Turkish + 58.1%; Almond, California + 5.6%
Food Manufacture, December 2003

Ingredients & Innovation
Here comes the super blackberry
Guatamalan berry producer Planesa is introducing a new super blackberry called Kiowa to replace the traditional Brazos. Said to be larger and sweeter, it is expected to increase the export potential of a crop which is continuing to find more favour with UK supermarkets as part of the soft fruit range. UK imports are rising and have seen a year-on-year increase of 64% to £2.5m.
The Grocer

Ingredients & Innovation
Turkey's volume up
The Turkish orange crop is forecast to be 20% higher this year topping one million tonnes. Grapefruit will show a similar increase reaching 150,000 tonne, although fruit size will be smaller than last season.
Lemons too have felt the effects of hot weather, with producers forecasting some crops could be 30% higher.
The Grocer

Ingredients & Innovation
Flavouring scandal taints Cape reputation
The allegation that South African wineries are adding flavourants to Sauvignon Blancs has shocked the industry both at home and abroad. But while some continue to point the finger of blame others are more concerned with the long-term implications for the Cape. Arnold Kirkby reports.
Over the past two weeks the South African wine industry has been in a state of angst following allegations that fruit flavourants are being added to Sauvignon Blancs in the country, in an effort to improve the "quality" of this growing sector.
Some have blamed UK supermarkets demanding an unreasonable taste profile for the varietal at the lower end of the price spectrum. The strength of the Rand has no doubt also contributed to the pressure felt by exporters serving the middle to lower end of the market. And there have also been some unscrupulous tactics practised by a small group of cowboy winemakers.
But whatever the cause, clear damage has been caused to the Cape wine industry's reputation in the last month.
Just-drinks.com

Ingredients & Innovation
The potential for prebiotics (in confectionery)
Regular consumption of the sugar replacer Isomalt appears to have a prebiotic effect on gut bacteria, according to preliminary findings of a study being carried out in Germany.
The early results, revealed at FiE last month, highlighted a functional health benefit of the low-calorie bulk sweetener, often used as a sugar replacer in hard sweets, and also in backed goods and snacks.
It also revealed the growing awareness of prebiotics.
Confectionerynews.com
http://www.confectionerynews.com/news/news.asp?id=48194

Ingredients & Innovation
Flavoursome fibres
The healthy components of fibres such as oats and rye can also enhance the flavour of foods if the correct processing techniques are used, claims new Finnish research.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48404

Ingredients & Innovation
Reduced gum stocks push prices up
Early depletion of African gum stocks have driven up global prices of gum acacia. US company TIC gums passed the price rise of gum arabic on to the market.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48446

Ingredients & Innovation
Alcohol rise in retailer goods
UK-based culinary alcohol supplier Thomas Lowndes & Co says a rise in alcohol demand for private-label retailer product has contributed to a corresponding increase in its profits. According to Lowndes there has been a 25 per cent increase in the use of alcohol within retail-food product this year.
Examples include Tesco Finest Mince Pie Ice Cream with Courvoisier VS Cognac and Italian-style profiteroles and Coffee Liqueur Cups from M & S.
Kennedy's Confection, December 2003

Ingredients & Innovation
Sweet packaging ideas
Scientists in the US have developed edible adhesives for food packaging. The concept, developed by Agricultural Research Service (ARS) chemist Sevim Erhan and colleagues at the agency's National Center for Agricultural Utilization Research in Illinois, has been formulated at the request of a beverage packing company.
The company needed a flavourless, food-grade adhesive that it could use for an assembly line operation that inserts drinking straws into beverage cans, cartons and bottles. Specifically, the company needed a strong, fast-curing adhesive that could bond the straws to a special holder that's lowered into the containers before they're filled and sealed.
Of the possible ingredients for the edible adhesive, Erhan chose sugar because of its availability, familiarity to consumers, and widespread use in beverages. Sugar alone isn't a strong adhesive, so the researchers mixed it with water and various organic acids. They then boiled the mixture until the sugar and acids bonded, or cross-linked, forming a dark-yellow adhesive. Over 10 different sugars were trialled, including sucrose, lactose and maltose, and 12 organic acids, including citric acid, malic acid and tartaric acid. Exposed to liquids, the adhesives dissolve and lose their grip in 20 to 60 minutes, depending on the sugar/acid combination used to make them.
ARS has patented the sugar-based edible adhesives on behalf of the US department of agriculture. Besides holding the straws, the adhesives have potential applications in binding food items, food and utensil packaging, and drug capsule layers.
Foodproductiondaily.com
http://www.foodproductiondaily.com/news/news.asp?id=48693

Ingredients & Innovation
European energy drinks reaches €2.3 billion
After runaway success in the late 1990s, the West European functional energy drinks market has slowed down, but looks set to sustain encouraging growth rates in the coming years. According to the 2004 West Europe Energy Drinks report from drinks consultancy Zenith International, 2003 sales motored ahead by a further 6.5% to 311 million litres, translating into a market value of €2340 million.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21781&dm=yes

Ingredients & Innovation
US pistachios face disease
Worth over USD 220 million and producing more than a quarter of the world's production of pistachios, scientists warn the pistachio industry in California that a devastating disease could put paid to future growth.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48949

Ingredients & Innovation
Christmas snack under threat?
Scientists warn that our traditional Christmas snack of brazil nuts might not be for much longer if intensive harvesting practices continue in 'persistently exploited' areas.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48621

Ingredients & Innovation
Rainforest produces low-cal sweetener
As an army of chemists around the world continues the march towards replicating in the laboratory the sweetest gifts from nature, a small group in West Africa is determined to stake a claim in the process.
Spurred on by the assertion that companies send researchers into the rainforest to discover promising new natural substances and once found, the company registers a patent or trademark and begins to cash-in, Ghana has decided to counter this.
A useful plant that can easily be cultivated under plantation trees is the katemfe bush, a plant native to the African rainforest. That thaumatin, one of the strongest known natural sweeteners, can be extracted from the katemfe berry is not a new discovery.
The US FDA long ago classified thaumatin as "generally recognized as safe" and the EU approved its use in chewing gum, desserts and soups under E 957.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48843

Ingredients & Innovation
Herbals industry endangering plant species, economies
Growing sales of herbal medicines are threatening to wipe out up to a fifth of the plant species on which the industry depends, a new report will claim. It also accuses the herbal medicines industry of doing nothing to stop the problem.
The new report, to be published later this year, suggests that two-thirds of the 50,000 medicinal plants in use are still harvested from the wild, and between 4000 and 10,000 of them may now be endangered.
The findings, revealed by the New Scientist, lay the blame at the feet of the herbal industry, which has not ensured sustainability of its supplies.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48925

Ingredients & Innovation
Popularity of soya products grows rapidly
Per capita consumption of soya-based drinks and desserts in Europe has grown by over 20 per cent in 2002 and is currently as large (valued at €1.3 billion) as the per capita consumption of meat-free and tofu products in Europe, according to a recent report from Netherlands-based organisation Prosoy.
The popularity of soy-foods is being driven by growing consumer awareness of soy's health benefits, particularly its role in lowering cholesterol. In the UK, the Joint Health Claims Initiative supports the use of a health claim stating that when at least 25 grams of soy protein a day is consumed as part of a diet low in saturated fat, it can help reduce the risk of heart disease.
The emerging popularity of the high protein Atkins diet in the UK has also boosted sales of soy products.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48953

Ingredients & Innovation
Z-trim for inclusion in Nestle products
Forging a deeper share of the fat replacer market, the Circle Group Holdings subsidiary FiberGel Technologies will supply its Z-Trim zero calorie fat substitute to Swiss food giant Nestle.
Confectionerynews.com
http://www.confectionerynews.com/news/news.asp?id=49137

Ingredients & Innovation
Grapefruit may be easy weight loss remedy
Eating grapefruit, long recommended by diet programmes for weight loss, may indeed impact the body's insulin levels, speeding up metabolism and leading to weight loss, say researchers from the US-based Scripps Clinic.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=49483

Industry Initiatives
UK drinks industry worth £49.5 billion
The UK drinks industry is now worth £49.5 billion. However, Research and Markets' 2003 UK Drinks Market report says that in the 5 years leading up to 2003, spending on drinks is estimated to have risen by only 16%, or by 6% in real terms (at 1999 prices).
The low annual average rate of growth stems from a combination of factors: the maturity of many drinks sectors, including beer, cider, cola, fruit juice and most spirits; generally low inflation and severe price competition on drinks in the grocery sector and a lack of real innovation in the marketplace, with no major drinks categories breaking through.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21525

Industry Initiatives
A guide to alcoholic drinks
A recent issue of the Grocer has included its regular advertising supplement on the alcoholic drinks sector. Companies included in the 44-page guide include:
Anheuser-Busch, Bacardi Breezer, Beverage Brands, Blavod Drinks, Mickey Finns, Bottle Green, Carlsberg-Tetley, First Drinks, Glen Catrine, Greene King, Halewood, Holsten Pils, Les Grand Chaise de France, Maxxim, Mentzendorff, United Brands, Vladivar and WDB Brands
(Full supplement available in the Marketing Department)
The Grocer

Industry Initiatives
Portman Group slams new alcohol inhalation product
The Portman Group has slammed a new invention that allows people to snort alcohol.
The Alcohol With Out Liquid (AWOL) system mixes spirits with pure alcohol creating a cloudy vapour, which is snorted or inhaled.
The inventors claim the mixture will give the user a "feeling of well-being, which increases the longer the gas is inhaled".
Thepublican.com
http://www.thepublican.com/item/11833/11

Industry Initiatives
Vodkas show strength in response to FAB slowdown
With growth in FABs showing signs of a significant slowdown in 2003, industry analysts, Euromonitor, predict that the emergence of a new type of stronger vodka pre-mix may provide the spark for much needed growth over the next few years.
Taking advantage of this vodka trend, the very fact that the new vodka-based product falls between two stools, being neither a FAB nor a standard spirit, has been beneficial to its positioning. Take Ursus Roter which is a variant of the Ursus vodka brand but contains only 21% alcohol, half the content of standard vodka. It is mixed with a fusion of sloe berries, which gives it a distinctive sweet and fruity taste, a characteristic which has appealed strongly to the younger generation of drinkers.
The drinks, containing around 20% abv, are either consumed as a shot or mixed with energy drinks such as Red Bull.
Vodka has already proved to be one of the market's best performing sectors, with growth in countries such as the US and UK outstripping that of whiskey, brandy and gin in 2003. This is due largely to its versatility and stylish image, underpinned by brand support from some of the world's largest players.
Although FABs continue to show growth in most markets, manufacturers are realising that the boom is definitely nearing the end of its course, and are being forced to brace themselves for a slowdown in demand and fiercer competitive activity to maintain market share.
Just-drinks.com
http://just-drinks.com/fd.asp?art=863

Industry Initiatives
Is calcium involved in taste transfer?
New research into the mysterious domain of taste by a US neuroscientist suggests that calcium plays a key role in the detection of tastes by taste cells in the tongue.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48371

Industry Initiatives
Sales of OTC remedies soar
Indigestion remedies are the fourth biggest OTC category with an annual value of £103m, while the stomach upset treatment market is worth £16m. Indigestion remedies' growth of 3% year-on-year is due in part to the products being more readily available.
Grocer, on Headlines from Mintel

Industry Initiatives
Ethical shopping costs UK firms £2.6bn
With increasing numbers of consumers choosing to boycott products from companies they see as unethical, UK firms are losing out on sales to the tune of £2.6bn per year.
The Co-operative Bank's Ethical Purchasing Index has found that 52% of consumers boycotted at least one product last year and that two thirds of them plan never to return to a brand once it has been associated with unethical practices.
Independent, on Headlines from Mintel

Industry Initiatives
Red Square shows RTDs way forward
Halewood International's vodka-lager mix is a good example of new product development. It targets emerging consumer needs based on observed behaviour. In order to develop the RTD market, innovation needs to go further than just adding a new flavour to an existing range.
Following fears that the RTD market is finally entering a decline, or at least plateauing, Halewood International is aiming to liven up the market with its new Red Square branded vodka and lager mix. The new citrus flavour drink aims to appeal both to women who find lager too bitter and men who find RTDs too sweet.
Innovation is certainly the key to maintaining the momentum in the RTD market, which has seen record growth over the past five years. But this is not just novelty for novelty's sake. The product's strange mix of ingredients is apparently based on consumers' actual behavior - Halewood claims to have observed consumers mixing vodka and lager in bars and clubs.
Other recent innovations in the market tend to revolve around introducing new flavours. Cranberry was very popular for a while (due partly to over supply) but now apple and even pear are gaining ground. Bacardi in particular has tried to maintain excitement when introducing new flavours by only releasing them as limited editions. This prevents the public from becoming jaded by yet another variation on a theme.
However, simple innovation in flavour is not enough to keep consumers interested. Innovation strategies need to identify consumer needs and find a novel way of fulfilling them.
Just-drinks.com
http://just-drinks.com/nd.asp?art=21541

Industry Initiatives
UK consumer increasingly opts for functional foods
Functional food makers present in the UK market will reap the rewards of consumers who are among the biggest spenders on functional foods and drinks in Europe, and growing.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48485

Industry Initiatives
Confectionery market growth, but facing challenge
The UK confectionery market has grown from £5.41bn in 1998 to £5.96bn in 2002, according to a market report from Key Note. The market analyst said the trend towards "snacking and grazing" culture and the need for quick and easy food to match busy lifestyles had increased consumption. The UK population ate its way through 7.8kg of chocolate in 2001, while its per capita consumption of sugar confectionery products was 5.8kg. However, it warns that manufacturers will need to respond to the demands of a more health-conscious public over the next few years to keep consumption levels up.
Food Industry News, December 2003

Industry Initiatives
Ethical purchasing a big motivator
Consumer boycotts of big brands cost businesses an estimated £2.6bn last year. The
Co-operative Bank's annual Ethical Purchasing Index report said that the grocery trade had been affected most by consumer unhappiness over trading practices. An estimated £787m of grocery spending in the past year had been switched between brands for ethical reasons, the report claimed. It also said that 52% of consumers claimed to have boycotted at least one product in the past 12 months because of their principles. The bank estimates consumers spent around £1.77bn on Fairtrade and organic food.
Food Industry News, December 2003

Industry Initiatives
Eateries to disclose nutritional information on menus
Eateries are under increasing pressure to disclose the nutritional information on their menus in order to tackle Britain's obesity problem. The Food and Drink Federation, the trade body that represents food and drink makers, has called for calorie labelling at all cafes and restaurants.
Financial Times, on Headlines from Mintel

Industry Initiatives
Kids know their food
Children know which foods are good for them and which are less healthy, despite their exposure to fast food advertising, according to a new report.
Family-focused organisation Kids' Clubs Network carried out research in partnership with Sainsbury, which showed that eight out of 10 children are aware that they should eat five portions of fruit and vegetables per day.
However, less than three out of 10 parents believed their children knew how to eat healthily.
When asked which foods were good for them and which were bad, children graded salad +9, fruit +8 and cereal +8. Chocolate and pizza were both given -8 and chips and fried food were given -7.
Grocer.TodayAlerts
http://www.grocertoday.co.uk/article.asp?s=1&a=263264

Industry Initiatives
Mintel's GNPD food trend predictions for 2004
Mintel's Global New Products Database predictions for what will be hot or not in 2004 include:
Ingredients - pomegranate, with lemongrass as runner-up
Packaging - bottle can; an aluminium bottle-shaped container with a screw-top cap: with easy-open packages for the aging baby-boomer population runner-up
Cuisine of the year - Indian
Old brands are new again - Black Jack gum
Other big issues are thought likely to include:
Limiting consumption for kids; Is beauty only skin deep?; Health initiatives; Health positioning claims; Naturally rich vs. vitamin fortified
Just-food.com
http://just-food.com/nd.asp?art=56229&dm=yes

Industry Initiatives
UK consumer increasingly opts for functional foods
Functional food makers present in the UK market will reap the rewards of consumers who are among the biggest spenders on functional foods and drinks in Europe.
A new report from Datamonitor shows that UK consumers spend on average £110 (€157) a year each on functional foods. The number of functional food buyers has also more than doubled over the past five years and is set to reach 5 million by 2007.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48485

Industry Initiatives
Steady growth for US flavours
The ongoing consumer desire for natural ingredients, combined with a growing interest in more complex and authentic flavours, will drive market demand for flavours and fragrances in the US.
A new report from US market research company Freedonia estimates that the market will increase by a steady 3.5 per cent over the next three years, on the back of more expensive natural ingredients, complex flavours and a strong growth in low fat and low carbohydrate foods and beverages that will spur demand for flavours and fragrances to enhance tastes.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=48841

Industry Initiatives
Consumer knowledge low on supplements
Consumers are baffled by the names of supplements and often do not know exactly what they are consuming when they take them, suggests a new survey.
The findings reveal the need for marketers to better explain the benefits and properties of their products, but proposed new legislation on health claims will do little to help companies clear up the confusion.
The survey of 2000 British consumers, carried out by natural health retailer The Nutri Centre, said to stock the largest number of complementary health products in the world, showed that a staggering 65 per cent "weren't entirely sure" of the ingredients of the complementary health supplements they were buying.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48857

Industry Initiatives
Cool Confectionery
The innovative confectionery sector saw the introduction of over 1,400 new items to the US market in 2002 alone. Novelty, functionality and patriotism are the buzz words prominent in 2003.
World of Food Ingredients, October/November 2003

Industry Initiatives
Childs play for food makers
Healthy foods targeted at children represent a major opportunity for the food and drink industry, according to a new report that demonstrates growing parental concern about the family diet.
The research carried out by the UK-based Engine House consultancy found 47 per cent of UK parents regard their children's diet and exercise as one of the top three things they worry about. For 8 per cent this issue is the most important concern today.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=48893

Industry Initiatives
Children still refusing to eat their greens
A survey of 500 families published yesterday by supermarket chain Safeway has found that more than half of parents have to disguise healthy food in order to get their children to eat it, while some 40% of children refuse to eat meals at the dinner table.
Daily Telegraph, on Headlines from Mintel

Industry Initiatives
Robot scientist outperforms humans in lab
The robot decides which genetics experiments to perform, does them, interprets the results and then comes up with new hypotheses.
(Thanks to Darren for submitting this article)
New scientist
http://www.newscientist.com/news/news.jsp?id=ns99994564

Industry Initiatives
China to put pressure on European ingredients industry
Top line growth for suppliers to the food industry will have to be delivered through innovation and focused branding strategies, finds a new report, at the same time stressing that emerging markets could threaten the ingredients industry.
The warning from investment bank Goldman Sachs comes after a tough 2003 when retailers continued to tighten the screw on their supplier base, a trend likely to continue into 2004, said the report.
This need is likely to increase as the ever more cost-conscious consumer continues to put the pressure on.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=49189

Industry Initiatives
Sweetened milk healthier than soda alternatives
Even pre-sweetened dairy foods and drinks have a healthier impact on children's and adolescent's diets than carbonated soda-type drinks, a new study has revealed.
Dairyreporter.com
http://www.dairyreporter.com/news/news.asp?id=49067

Industry Initiatives
Emmi launches lactose-free milk
Concern over the increase in Lactose intolerance has encouraged a new sector to emerge in the dairy industry. Emmi the Swiss dairy group is the latest to produce lactose-free milk.
Diaryreporter.com
http://www.dairyreporter.com/news/news.asp?id=49094

Industry Initiatives
Moto to offer self-heating ready meals
Just-food.com
http://just-food.com/nd.asp?art=56479&dm=yes

Industry Initiatives
Dreyer's develops new process to improve taste of light ice cream (USA)
US ice cream maker Dreyer's Grand Ice Cream has said it has developed a "slow churned" method of making ice cream that produces a "light" product with the taste and texture of full-fat ice cream.
Just-food.com
http://just-food.com/nd.asp?art=56497&dm=yes

Industry Initiatives
Major issues facing the industry this year
Hot topics for 2004 include marketing food to children, low-carb diets, bio-terrorism, GM food and irradiation.
Just-food.com

Flavour House Ireland Disclaimer: no liability for accuracy of statistics; without prejudice; views and opinions do not necessarily represent those of Flavour House Ireland Limited