Flavours Newsletter
Jan 2003 - What’s new in Flavours

Key Statistics OTC boom of £1bn
Trade magazine Checkout has found that Britons spend more than £1bn on OTC medicines each year, despite price cuts at supermarkets. Total sales reached £1.7bn and rose £10m on sales from 2001. Supermarkets made significant gains from the growth, however independent pharmacies saw their market share decline by 4%. Pain relief remedies took the largest portion of the market accounting for £406m of sales followed by cold remedies at £338m. New products to help people give up smoking took sales of £67m. The Times, on Headlines from Mintel

Key Statistics Product innovation soars in 2002
As we enter a brand new year a new report from market analysts Mintel reveals that 2002 proved to be the most successful year for new product introductions since 1995. The strongest category, confectionery, accounted for 14 per cent of the food product introductions. The four strongest categories within food - confectionery, bakery, beverages, and sauces & seasonings- accounted for half of all food product introductions in 2002. According Mintel, within the categories of Mintel's Global New Products Database, there were some astounding fluctuations for the tracked segments. In food segments, dairy and side dishes experienced a surge of growth - dairy with a 21 per cent increase and side dishes with a 38 per cent increase. Sweeteners and sugar plummeted 38 per cent, despite the increasing call for sugar substitutes by aging consumers. Confectionery, again the strongest of the food categories, faltered by only 2 per cent from 2001. Foodnavigator.com http://www.foodnavigator.com/news/news.asp?id=6688

Key Statistics Food and drink sector outpaces UK profit growth The average company within the UK food and drink sector saw sales of £147.2m in 2001, having risen steadily by12.6% from £130.7m in 1999, while pre-tax profits also grew at 13.6%, according to a report out this month by financial analysts The Prospect Shop. Pre-tax profit margins in the sector rose from 7.6% in 1999 to 8.8% in 2000, only then to fall back down to 1999 levels again in 2001. The report also reveals that total assets for the food and drink sector increased as well, but the average number of employees decreased, perhaps a sign of continuing automation and further technological advances, the report concludes. The total debt to net worth ratio for the sector as a whole jumped from 174% in 1999 o 239.4% in 2001. Of all the industries in the sector, alcoholic beverage companies recorded the highest debt levels with 262.2%. Compared to the average UK company - dubbed UK plc by the Prospect Shop - Food and drinks companies witnessed sales growth just below the average, which was 19.4%, but experienced profit growth which was much healthier than an average negative growth of 22.9%. Just-drinks.com http://just-drinks.com/nd.asp?art=18631&dm=yes

Key Statistics Still drinks move ahead
Still drinks are currently expanding sales on the world scene faster than their main competitors and are expected to improve their situation even further over the medium term future. In its annual look at the global still drinks market, beverage industry analyst Canadean shows that consumption is expected to rise 6% this year, bringing volume to 22.4 billion litres. Predicted growth rates until 2005 will then continue to be higher than those for still drinks' leading rivals juice/nectars and carbonates, although below those for packaged water, iced tea/iced coffee and sports/energy drinks. Despite an ill defined profile, partly due to the practice in some markets of not declaring the juice content on the packaging, still drinks are said to offer considerable potential for development due to their enormous range and diversity. Low cost products (with little or no juice content) sit at one end of the category spectrum, while more expensive, branded drinks, frequently highly innovative, occupy the other end. Just-drinks.com http://just-drinks.com/nd.asp?art=18656&dm=yes

Key Statistics Split decision on Scotland's top soft drink
The battle for the top slot in the Scottish soft drink market is once more this year a split decision between Irn Bru, from local producer AG Barr, and global giant Coca-Cola. According to AC Nielsen figures, the dominant player in the £428m market is Coca-Cola, which holds the number one spot with its Classic brand and the number two position with Diet Coke. Irn Bru came in third. However AG Barr has hit out at the figures, saying they do not take account of convenience store sales, or the 750ml glass bottle it sells. The Scottish company also said that a second set of data would confirm it as the owner of the country's number one brand. AG Barr was referring to a survey in the Scottish Grocer, the monthly trade magazine. The discrepancy between the two figures is apparently to do with the different weighting given to supermarket sales. Just-drinks.com http://just-drinks.com/nd.asp?art=18676&dm=yes

Key Statistics Market Analysis - Herbal Extracts
Six herbal extracts account for nearly 40 percent of the market; these are Ginkgo Biloba, Echinacea, Ginseng, Saw palmetto, Valerian and Green tea. St John's Wort and Kava Kava extracts also have significant shares of the herbal extract market, over 5 percent each, but uncertainty about their future legality within the European Union prevents sensible forecasting. Frost.com

Key Statistics Chocolate confectionery market
The challenge facing foreign companies entering the UK chocolate market is tough. Foreign companies, such as Hershey of the US which recently announced plans to introduce a range of products in the UK, have to break the stranglehold of Mars, Cadbury Schweppes and Nestle - brands entrenched in the UK market. The challenge is made all the more harder as the UK chocolate market is stagnant. Between 1997 and 2002 Mintel estimates that total sales in the sector increased by only 1%. Nevertheless, the possible rewards are huge for successful entrants. The confectionery market is worth over £3bn in the UK and even a small share in it could prove to be extremely lucrative. Also, UK consumers have a tendency to at least experiment and try new products. Marketing Week, on Headlines from Mintel

Key Statistics Whisky remains a popular drink
New research found that a quarter of the UK population are regular drinkers of whisky, while nearly two thirds of these consumers will buy the product in a bar or pub. Older people are more likely to order whisky while out of the home, with demand from those under 35 coming in marginally lower. A massive 81% of the 1,091 people questioned for the survey agreed that whisky is a seen as a drink for older or middle-aged people. Although this indicates that more promotional work needs to be done, it also emphasises that young people remain an untapped market for the drink. Marketing, on Headlines from Mintel

Business & Economics Lowest US retail growth in 30 years
It has been reported that US retail sales in the run-up to Christmas 2002 came in at their lowest in over 30 years. Bank of Tokyo Mitsubishi, which has monitored the largest US chain stores since 1970, claims that retail sales during November and December 2002 grew by only 1.5%. As a result, the New Year sales are set to be massive, with discounts of up to 75% being mentioned. The Times, on Headlines from Mintel

Business & Economics Drop in UK consumer confidence
A new poll suggests that UK consumer confidence has fallen to its lowest level since the petrol crisis in 2000. The influential Gfk poll found a sharp decline in British consumer confidence - almost as bad as in the aftermath of 11 September 2001. People are at their most pessimistic since 1995, the poll claims. Evening Standard, on Headlines from Mintel

Business & Economics UK growth 'faster than expected'
According to the Office for National Statistics, the economy of the UK grew faster than expected during the 3 months to September 2002, with Gross Domestic Product rising by 0.9%. The increase is the biggest in 3 years, and was higher than the 0.6% rise in the previous 3-month period (April-June 2002). BBC News Online, on Headlines from Mintel

Business & Economics BoE governor upbeat over 2003 Bank of England Governor Sir Edward George provides an encouraging view of the UK economy for 2003, in the wake of "doom and gloom" predictions recently. According to the Governor, there is likely to be a gradual levelling off in house prices and consumer spending, with a year or two of pretty weak economic growth. Consumer spending remains a focal point of the UK economy, adds Sir Edward. BBC News Online, on Headlines from Mintel

Business & Economics Rise in Irish inflation
Irish inflation grew to 5% in December 2002, its highest mark in 18 months. There are now fears that inflation, already twice the EU average, could soon increase to 6%. Financial Times, on Headlines from Mintel

Business & Economics UK retail sales stronger in December
Retail sales boomed last month, defying economists' expectations and dampening suggestions of a sluggish Christmas shopping period. Retailing & leisure briefing, FT.com News by email

Business & Economics Annual UK growth hit 1.7% in 2002
Preliminary data from the Office for National Statistics reveals that UK growth in the final quarter of 2002 was small, with gross domestic product of 0.4%. As a result, annual UK growth stood at 1.7%, the worst return since 1992. The 4th quarter figure was all the more revealing, when it is noted that 3rd quarter growth was 3 times higher at 0.9%. There are now concerns that the UK's expansion in 2003 could rise by just 1.8%, against earlier forecasts of between 2.5% and 3%. Financial Times, on Headlines from Mintel

International Developments TAIWAN:
Beverage sales to grow 2.6 percent - estimate Sales in the beverage market are forecast to hit NT$46.9 billion in 2002, up 2.6 percent from the previous year, according to a beverage manufacturers' association's estimate. Tomato juice is the best selling fruit and vegetable drink. In 2002, sales of this juice rose 10 percent. Tea had the largest market share, at 28.8 percent, up 3.8 percent from 2001, and was followed by sodas at 18.1 percent. Vegetable and fruit drinks recorded a 10 percent growth in 2002 as their market share expanded to 16.1 percent, or to NT$7.55 billion in sales in 2002 from NT$6.85 billion in 2001. For the first time, they surpassed coffee, which was ranked fourth in terms of 2002 sales, although its market share decreased 10.9 percent. Last year also wasn't the best of years for sports beverages, whose market share dropped 8.8 percent. The clear winner in the beverage market this year was tomato juice. During the second half of last year, major fruit juice suppliers spent a lot of money advertising this product, and as a result, Heysong, one of Taiwan's oldest beverage manufacturers, predicted sales of tomato juice would increase around 169.2 percent this year. China Post, on Drinks and beverages industry news http://c.moreover.com/click/here.pl?e55826827&e=6327

International Developments SWEDEN:
Steady performance The consumption rate for organic food in Sweden is one of the highest in the world. Organic food sales grew by about 15% to £315m in 2001; there are almost 200,000 hectares of organic farmland, representing 6.3% of total farmland; and the average consumer spend on organic foods at £35 per annum is the third highest in Europe (£18 in UK). Typical of Nordic countries, a major driver of consumer demand is environmental concern. Organic Business, January 2003

International Developments USA:
Stilton imports double Exports of Stilton cheese to the US have doubled from 600 tonnes in 1997 to 1,200 tonnes. Priced at £8,000-£9,000 a tonne, the surge has created a market worth £10m a year with 25% of Stilton sales in the US made during the Christmas retail period. The English trademarked cheese is now the US's 2nd most popular imported cheese behind Brie. Stilton's association with everything English makes it particularly popular in the US. Daily Telegraph, on Headlines from Mintel
International Developments SWEDEN: Lactose-free milk takes off in Sweden Finnish dairy company Valio has said sales of its lactose-free milk drink, launched in Sweden in November, have far exceeded expectations. If the pace holds up, annual sales could reach 300,000 litres - five times the initial goal. Nutraingredients.com http://www.nutraingredients.com/news/news.asp?id=6104

International Developments TAIWAN: Diageo advertisement upsets the Taiwanese Taiwanese politicians are calling on its country's citizens to shun Diageo products, following a London Underground campaign that mocked them. Such is the anger, that calls have been made on the Taiwanese government to ban imports of Diageo products, a market responsible for 4% of the company's trading profits. Daily Telegraph, on Headlines from Mintel

International Developments IRELAND:
Bottled water sales continue to grow at a rate of 8% in Ireland According to the Bottled Water Association of Ireland, despite an unpredictable year, due in part to the bad Summer, the bottled water sector has grown by 8% year to date and by 10% on a MAT basis. The market is driven by 2 key performers in terms of pack size - the 2 litre and the 500ml PET, securing 25% and 26% of the market, respectively. Bottled water has come a long way since its introduction to the Irish market in the 1980s. Water is no longer just about functional values. Style and image are key to the success of a water brand. Retail News , on Headlines from Mintel

International Developments IRELAND:
Budgens brand set for Northern Ireland entry Musgrave is to launch Budgens branded products into its Northern Ireland stores, with similar plans being considered for Irish Republic outlets. The move will see own label ready meals sold in a small number of Centra and SuperValu branches, on a trial basis. Grocer, on Headlines from Mintel
International Developments Alcopops help lift Kirin Kirin Brewery, said it would report a 39 per cent increase in annual net profit, thanks in part to stronger-than-expected alcopop-style drinks sales. Consumer industries briefing, FT.com News http://tm0.com/ft/sbct.cgi?s=61423343&i=715625&m=1&d=3835154

International Developments SCANDINAVIA:
The thirst for cheap alcohol draws Swedes across borders Spotting Swedes in the Danish harbour town of Elsinore is not difficult. They are the ones with the trolleys piled high with beer, wine and spirits. Every year, some 10m passengers make the 22-minute ferry trip from Helsingborg in Sweden to Elsinore, most of them day- trippers buying alcohol. The alcoholic arbitrage opportunity that draws British day-trippers to France for cheap wine and beer is spreading to new corners of Europe. In northern Europe, Danes travel to Germany for their liquor, Swedes shop in Denmark and Germany, and Norwegians go to Sweden. The savings can be huge. A bottle of Glenfiddich whisky that costs around SKr181 (£13) in Germany costs SKr298 in Denmark, SKr369 in Sweden and SKr476 in Norway. Consumer industries briefing, FT.com News by email http://tm0.com/ft/sbct.cgi?s=61423343&i=718841&m=1&d=3858628

International Developments IRELAND:
Tesco expands in Irish Republic Tesco is to open six new supermarkets in a €100m (£64m) expansion of operations in the Irish Republic, creating 1,500 jobs. This includes 400 jobs at an already-announced distribution centre in Dublin. Tesco entered the Irish market in 1997 buying the local Quinnsworth, Crazy Prices and Stewarts chains. Retailing & leisure briefing, FT.com News by email http://tm0.com/ft/sbct.cgi?s=61423343&i=718846&m=1&d=3858895

Retail & Company News Cadbury secures $4.2bn purchase of Adams
Cadbury Schweppes agreed the $4.2bn (£2.7bn) purchase of Adams confectionery - its biggest ever acquisition. consumer industries briefing from ft.com http://tm0.com/ft/sbct.cgi?s=61423343&i=690868&m=1&d=3637161 Adams gives Cadbury global leadership Cadbury Schweppes of the UK has become the world's biggest confectionery company following the acquisition of the US-based group Adams from Pfizer for $4.2 billion (Euro 4.1bn). Foodnavigator.com http://www.foodnavigator.com/news/news.asp?id=6642

Retail & Company News Whole Earth Group sells its organic food brand to Kallo Foods
Whole Earth Group has sold Whole Earth Foods, its organic food brand, to Kallo Foods for an undisclosed sum. Marketing, on Headlines from Mintel

Retail & Company News McDonald's recipe change?
Global fast food chain McDonald's is said to be considering a change to its hamburger recipe, hoping that a new taste to its core product will help to boost consumer demand, which has been on the wane. The Times, on Headlines from Mintel

Retail & Company News Supermarket wars
Tesco and Asda have launched a price war in order to lure post-Christmas shoppers through their doors. Tesco will cut £80m from the price of more than 1,000 products with some prices falling by nearly a third while Asda will be cutting some prices in its George clothing range. A spokesperson from Safeway has said that though price reductions will be highlighted, it is expected that the cost of other goods will increase. However both Asda and Tesco maintain that the cuts are responding to long-term customer needs, if this is true then smaller chains such as Somerfield could feel the affects on customer numbers. BBC News Online, on Headlines from Mintel

Retail & Company News Growth rate of Cott impressive (USA)
In North America, Cott's growth has outpaced that of Coke and Pepsi over the past couple of years. In June 1998, Cott's, the world's biggest producer of private-label beverages was in trouble. Distribution problems meant shipments were late and retailers often received out-of-date Cott's drinks. With its production problems now solved, the company is now giving its brand-name rivals, Coca-Cola and PepsiCo, a run for their money by once again churning out new, copycat products in snazzy packaging. Cott's growth has outpaced that of Coke and Pepsi over the past couple of years in North America. From 1999 through 2001, Cott's share of the US carbonated soft drink market increased 0.7 percentage point to 3.8%, while Coke lost ground during the period and Pepsi barely inched up. To win consumers and supermarket accounts, Cott's launched new flavours and packaging, some of which are targeted at niche, regional markets. Cott's replaced generic, no-name drinks with "sub-brands," with distinct labels for each different flavour. For example, at Ahold, which operates Boston's Stop & Shop and Giant of Landover, Maryland, shelves feature distinctly packaged and named beverages, such as Rally, a cola packaged in bright red, and Ramp, a caffeinated lemon-lime drink. Wall Street Journal Europe , on Headlines from Mintel

Retail & Company News Morrisons bids for Safeway Troubled
UK supermarket group Safeway has been the focus of many rumours in recent months, with larger rival Asda seen as a potential buyer. But it is in fact the regional supermarket group Morrisons which will buy Safeway Nutraingredients.com http://www.nutraingredients.com/news/news.asp?id=6188

Retail & Company News New name of leading Ice Cream manufacturer
Richmond Frozen Confectionery, the UK’s largest ice-cream manufacturer, has changed its name to Richmond Ice Cream to avoid confusing people outside the industry. The company has also unveiled a new logo. food industry news ISSUE 03-01: 10 JANUARY 2003

Retail & Company News McDonald's to start selling organic produce in its restaurants
Fast-food chain McDonald's, famous for its processed food, is to start selling organic produce in its restaurants. The hamburger chain will replace all cartons of non-organic milk with organic milk, but it will continue to use non-organic milk in milkshakes and sundaes. The change is in response to customer demand. The news comes as the fast-food giant begins the process of closing restaurants around the world after warning it will make a quarterly loss for the 1st time in its 47-year history for the period ending 31 December, 2002. Its Swedish restaurants already selling organic milk and organic ice cream. Marketing Week, on Headlines from Mintel

Retail & Company News UK supermarket chain gains Royal Warrant
Upmarket grocery chain Waitrose has become the first UK supermarket to gain a Royal Warrant, after having supplied the Queen with food for 5 years. As a result, Waitrose will be allowed to include the Queen's Royal Arms on its goods, stationery and advertising. Evening Standard, on Headlines from Mintel

Retail & Company News Bacardi-Martini changes the way spirits are served
With the release of its Upsizing campaign, Bacardi-Martini aims to change the way that spirits are served in the UK. The promotion encourages drinkers to move up from 25ml to 35ml or even 50ml, but not pay over the odds. Checkout, on Headlines from Mintel

Retail & Company News United Biscuits lifts sales to £1.3bn
A one-off surge in advertising spending helped United Biscuits, owner of the McVitie's and Hula Hoops brands, increase sales to £1.3bn in 2002. Consumer industries briefing on FT.com News by email http://tm0.com/ft/sbct.cgi?s=61423343&i=707961&m=1&d=3759375 United Biscuits benefit from advertising spend United Biscuits reported an increase in sales to £1.3bn in 2002, following a one-off surge in advertising spend. The owner of brands such as Hula Hoops and McVitie's said that during 2002, sales increased by 3.1%. Operating margins increased by more than 14% in 2002 compared with 11.6% in 2000. Financial Times, on Headlines from Mintel

Retail & Company News Cider maker tipped to axe top brands
Cider company, Matthew Clark, has indicated that it may sell or ditch its top brands, including Blackthorn, Olde English and Diamond White in the face of increased competition from rival HP Bulmer. Industry News Alert, from mad.co.uk http://www.mad.co.uk/story.aspx?uid=8b610259-3a05-4682-b4e4-38db1d885975
Retail & Company News Latest figures put Tesco's share of the supermarket sector at 25.8% Latest data puts Tesco's share of the supermarket sector at 25.8%, followed by Sainsbury's at 17.4%, Wal-Mart-owned Asda at 15.9%, Safeway at 10% and Morrisons at 5.9%. (Although much is likely to change with recent take-over moves) Evening Standard, on Headlines from Mintel

Retail & Company News Constellation, BRL Hardy in merger talks
US drinks group Constellation Brands (owner of Matthew Clark) has confirmed it is in talks with Australian wine giant BRL Hardy regarding a merger or acquisition. Discussions are at an "advanced stage" and both companies have signed non-solicitation and break fee agreements, but no agreement has been reached on the transaction's structure or value. Just-drinks.com http://just-drinks.com/nd.asp?art=18710&dm=yes

Retail & Company News UK groceries get cheaper and cheaper The first shopping trip for The Grocer 33 index in 2003 has proved that supermarkets in the UK are backing up their claims to offer customers cheaper grocery products than ever before. According to the weekly survey, Morrisons at Rogerstone, Cardiff produced a basket of 33 goods totalling £36.54, some 18p cheaper than the previous record set from Asda in Tyne & Wear. Deciding factors this time around were lower-priced Stella lager and cheaper fruit and vegetables. Grocer, on Headlines from Mintel

Retail & Company News Independents fail to seize soft drink growth
The UK's Independent pubs are still missing out on soft drinks profits, despite rises in mature sub-categories such as juices and cola last year, a report from soft drinks company Britvic Soft Drinks says. The latest figures reveal that soft drinks are growing above the market rate of 4% in both managed and leased & tenanted outlets, at 8% and 7% respectively. However, independents are lagging behind, with 1% value growth in the last year and a 4% decline over the key summer months. Just-drinks.com http://just-drinks.com/nd.asp?art=18735&dm=yes

Retail & Company News Coke to buy Belgian mineral water
Coca-Cola Enterprises and Coca-Cola Services in Belgium plan to buy the region’s Chaudfontaine mineral water brand from Chaudfontaine Monopole. Chaudfontaine said the deal would only involve its mineral water and not its carbonated drinks, juices or Duke water products. No financial details were disclosed. Grocer.TodayAlerts http://www.grocertoday.co.uk/article.asp?s=5&a=251798

Retail & Company News Tesco claims a quarter of the Irish grocery market
Data for the 12 weeks to end-Dec. 2002 shows Tesco to have won almost 25% of the Irish Republic grocery market. Dunnes was ranked 2nd with 22% and SuperValu next with 19%. The smallest chain, Superquinn was said to have dropped below a 10% share of the market. Grocer, on Headlines from Mintel

Retail & Company News Supermarkets keep the price of groceries down
Supermarket grocery prices have fallen to their lowest level in 6 years. Although prices vary across the country, the growing rivalry between supermarkets has seen prices actually decreasing over the years. A basket of 33 basic items cost £36.43 from Asda in a poor area of Manchester compared with £42.22 from Co-op in an affluent area of East Sussex. Daily Express, on Headlines from Mintel

Retail & Company News Tax hike on spirits is a kick in the teeth
GBL International, maker of VK Vodka Kick, has shelved plans to build a new factory because of Gordon Brown's 65 per cent tax hike on spirit-based ready-to-drink (RTD) products last April. The company had planned to create 200 jobs with a new plant to support its fast-growing VK RTD, of which it sells 3.5m bottles a week. The chancellor decreed that any drink with a spirit base, such as VK, Bacardi Breezer or Smirnoff Ice, should pay the same tax levied on bottles of spirits. ThePublican.com http://www.thepublican.com/item/8375/11/5d40E43/299

Retail & Company News Nestle boosts its ice-cream brand with Moevenpick deal
Nestle has strengthened its hold on the ice-cream market following its acquisition of Moevenpick's ice-cream brand. The Swiss food giant announced it would extend its global reach by buying the ice cream unit of Moevenpick, the Swiss catering and hospitality group which sells around £136.35 million worth of premium ice cream annually. Nestle said it would continue to position Moevenpick ice-cream in the high-quality sector and manage it as an independent unit. The Moevenpick brand image is said to complement Nestle's ice-cream brand portfolio, particularly in Europe. It is Nestle's third big acquisition in the ice cream sector in recent months. Last year, it completed its control over global premium brand Haagen-Dazs, and took a stake in US producer Dreyer's. Nestle said it remained on the lookout for further acquisitions in the ice cream sector, which is one of its fastest-growing areas of business. Breaking News, from mad.co.uk http://www.mad.co.uk/story.aspx?uid=f881f752-7414-4878-91dd-d878fb2f7b65

Retail & Company News Bulmer says it may have to sell
The troubled UK cider group, HP Bulmer, has said that it may have to consider takeover offers following a further deterioration in trading. The company said it was considering a rescue rights issue or even selling the company, adding that it will initiate, as appropriate, discussions with potentially interested parties which, in due course may or may not lead to an offer being made for Bulmers. Just-drinks.com http://just-drinks.com/nd.asp?art=18822&dm=yes

Retail & Company News Cakes producer goes into receivership
Lowthers Cakes and Country Bakehouse, a producer of cakes and tarts, has been put into receivership. Potential buyers are now being sought for the company, which supplies own label products to leading UK supermarkets. Grocer, on Headlines from Mintel

Products & Brands Bailey’s gets lower-alcohol PPS spin-off Diageo
GB is giving Baileys its first range extension, with the launch this week of Baileys Glide, a lower-alcohol, "long" version of the liqueur. Industry News alert, from mad.co.uk

Products & Brands Coca-Cola Co. to launch popular Asian children's fruit drink
Germany Soft drinks giant Coca-Cola Co. is to launch Qoo, a popular Asian child's fruit drink, in its 1st European market, Germany, in January 2003. Qoo was 1st introduced in Japan in 1999, and spread across Asia to Korea, Singapore, China, Thailand and Taiwan. Separately, Coca-Cola Co. is launching in Peru a children's vitamin-enriched fruit juice popular elsewhere in Latin America called Kapo Super Power. Advertising Age, on Headlines from Mintel

Products & Brands Fanta gets new flavour
Coca-Cola is bidding to push the meteoric rise of Fanta in the UK even further - by introducing another new flavour. Zesty Berry (blackcurrant and lemon) could even eclipse the success of recently introduced variants Icy Lemon and Fruit Twist which helped propel the Fanta brand to fifth place in the soft drinks section of The Grocer’s Top Products Survey. The Grocer

Products & Brands Absolut Spirits Co. in February 2003 launches its first new flavour since 1998
In February 2003 Absolut Spirits Co. launches its 1st new flavour since 1998, Absolut Vanilia, in a bid to revive sales flattened by high-end competitors. Absolut is still the US' No. 3 liquor brand and the leading imported vodka, but sales were flat last year at 4.56m cases, and its share among vodkas slipped to 11.7% from a 2000 peak of 12.2%. Absolut Vanilia is designed to tap into Americans' desire for super-premium spirits and flavoured products. Advertising Age, on Headlines from Mintel

Products & Brands AD extends Stoli flavours range (USA)
The market for flavoured white spirits has seen a lot of activity this year, not least in the US where the market is growing at around 25 per cent a year. In the last few months alone we have reported on the launch of a green apple variant for Smirnoff and the introduction of a pear-infused gin under the Beefeater brand, and now two new products have been added to the popular Stolichnaya vodka range. Allied Domecq the driving force behind the introduction of the new 1.75-litre bottles for two of the most popular Stolichnaya flavours, Stoli Razberi and Stoli Vanil. The imported vodka category in the US has grown by 58 per cent in the past five years, with flavoured vodka in particular proving extremely popular, rising 191 per cent during the same period. The British company cited data which it claimed showed that Stoli Vanil and Stoli Razberi (in the more traditional 750ml size) had shown the greatest increases in sales among all imported flavoured vodkas in the last six months, one of the main reasons for the addition of the new pack size. Stolichnaya first introduced its flavoured line in the late 1970s with Limonnaya and has since grown and enhanced the line with great success with Stolichnaya Ohranj, Strasberi, Razberi and Vanil each increasing in sales yearly since their inception. The company claims to offer the widest variety of flavours in the vodka category. Foodanddrinkeurope.com http://www.foodanddrinkeurope.com/news/news.asp?id=1234

Products & Brands Obsidian calls the Shotz
A risqué range of shot drinks is looking to break into the trusty down-in-one sector with the “sex sells” strategy. Following a trial with Springwood Leisure, the Obsidian Bottling Company has rolled out Shotz, its eclectic selection of vodka based shooter drinks packaged in a bawdy bottle featuring a raunchy-looking female on the front label and her scantily-clad behind on the rear. Brands newswire, form thePublicancom http://www.thepublican.com/item/8061/11/5d40E43/289

Products & Brands Kickapoo Joy Juice (USA)
A unique soda from Monarch Beverage, Kickapoo Joy Juice was created based on a punch that was created in a comic strip known as "Dogpatch". Today, it's soda made for Malaysia and Singapore by Monarch Beverage. It is best described as a light and refreshing ginger flavoured soda. BevNET.com Nutrition Facts and Ingredients

Products & Brands Who are the top dogs?
The Top Products Survey for 2002 has been produced exclusively for the Grocer and is sourced from electronic point of sale data from more than 5,000 stores processed by Information Resources. All own-label products were excluded. The full 63-page article is available from the Marketing Department. It covers 21 different grocery categories, 15 of which are within food or drink. Highlights include trends and top brands for the following: Hot Beverages - tea overtaking instant coffee, as healthier lifestyle factors come into play Nescafe Original; PG Tips Pyramid Tea Bags Biscuits - mini versions and promotional activity become popular Nestle Kit Kat; McVitie’s Homewheat; Quaker’s Snack-a-Jacks; McVitie’s Penguin Cakes - a buoyant market, driven by slices, sweet muffins and flapjacks; with the possibility of a mini revolution to come Cadbury MiniRolls; Mr Kipling Pies; Soreen Malt Loaf; Mr Kipling Cherry Bakewells Confectionery - chocolate dominates, with new product developments targeting the indulgence sector Cadbury Dairy Milk; Galaxy; Mars; Wrigley’s Extra; Maltesers Dairy Drinks - yogurt drinks outpacing overall milk drink growth as demand for healthy and functional foods grows Danone Actimel; Yakult; Frijj Fresh Classic Shakes; Yazoo Dairy Desserts - growth driven by indulgence and health, for adults and children alike Muller; Ski; Shape; Onken; Cadbury Ice Cream - luxury boom, and growing move towards sharing and smaller tub format Wall’s Magnum; Wall’s Cornetto; Haagen-Dazs; Mars; Carte d’Or Soft Drinks - top brands stable, but NPD and incentives to trade up creating volatility for others Coca-Cola; Diet Coke; Robinsons Squash; Tropicana Pure Premium; Fanta Alcoholic Drinks (off-trade) - PPS market settles into maturity, in the post-budget world Beers - Stella Artois; Carling; Foster’s: Wines - Jacob’s Creek; E&J Gallo: Spirits - Bell’s 8-year-old; Smirnoff Red Label; The Famous Grouse: PPS - Bacardi Breezer; Smirnoff Ice; Archers Aqua; Red Square; WKD The Grocer (December 14th 2002)

Products & Brands Flavoured breath fresheners range being launched
A selection of flavoured breath fresheners entitled Kiss Freshener is to be launched in pharmacies during February 2003. The spray-based products include Cherry (pink), Cola (blue) and Black Pepper (red). Chemist & Druggist, on Headlines from Mintel
Products & Brands Roc-a-fella Records aiming to capitalise on influence of hip-hop to sell a super-premium vodka Record label Roc-a-fella is investing in an expensive vodka brand with the aim of developing a full-scale spirits division. The label is marketing Armadale, a super-premium vodka from Scotland, in an attempt to cash in on all the thirsty hip-hop fans who watch its music videos. Roc-a-fella decided to market the vodka after seeing the buzz created by rapper Jay-Z when he mentioned Belvedere in one of his songs. Hip-hop music has spawned numerous film extensions and fashion lines aimed at urban culture. Wall Street Journal Europe, on Headlines from Mintel

Products & Brand Galaxy-branded chilled desserts
With the introduction of new Galaxy-branded desserts, Eden Vale aims to strengthen its position within this competitive market. The new additions comprise 2 Galaxy Sundaes - chocolate and caramel, plus chocolate and praline. Also new is Galaxy Torte, a rich chocolate dessert on a bed of biscuit finished with swirls of chocolate. Galaxy Sundaes come in single 125g pots selling at 89p each, while the Galaxy Torte serves 4 to 6 people, weighs 365g and is priced at £2.99. Checkout, on Headlines from Mintel

Products & Brands Sugar-free Red Bull to launch Leading UK energy drink brand
Red Bull is to launch a sugar-free version, entitled Red Bull Sugarfree. The product will initially be on shelves in Sainsbury's and key petrol forecourts. Containing Aspartame and another sweetener by the name of Acesulfam K, each can of the new drink has just 8 calories, and is targeted at diet-conscious young adults. In the US market, a third of all soft drinks consumed are either sugar-free or have a reduced sugar content. Grocer Today, on Headlines from Mintel

Products & Brands Mecca-Cola sells 2m bottles in France in just 2 months
Buoyed by a wave of anti-US feeling, Mecca-Cola has sold more than 2m of its 1.5 litre bottles since its launch 2 months ago. The drink which promises to donate 10% of its profits to a Palestinian children's charity is expected to go on sale in Britain shortly, which represents a potentially bigger market than France. The company has signed a contract to send 20 lorries a month to Britain and 2 UK companies are now being set up, Mecca-Cola UK Ltd and with a partner in Birmingham, Mecca-Cola Distribution. Originally targeted at small epiceries in France's predominantly Muslim neighbourhoods, the demand for the drink has landed the product a place in the major hypermarket chain Auchan. Coca-Cola's revenues in the Middle East represent less than 2% of its global business, however concern is growing among iconic American brands about working in countries perceived as hostile to US interests. Guardian, on Headlines from Mintel Also reported as … Muslims target Coke Guardian Unlimited, on Drinks and beverages industry news http://c.moreover.com/click/here.pl?e56470845&e=6327 Muslim brand of cola launched to capitalise on anti-American sentiment has sold 300,000 litres in its first 2 weeks on sale in Britain Mecca-Cola, a Muslim brand of cola launched to capitalise on anti-American sentiment has sold 300,000 litres in its 1st 2 weeks on sale in Britain. It is aimed at Muslims who like the taste of the classic American drink but do not want to contribute to American economic success. Although its monthly sales target of 2m litres in Britain is dwarfed by Coca Cola, the drink could win a following among British Muslims concerned at American and Israeli policies in the Middle East. Mecca-Cola also plans to start a chain of Halal Fried Chicken fast-food restaurants. Sunday Times, on Headlines from Mintel

Products & Brands Rising demand for Strongbow
Latest figures show increasing demand for cider brand Strongbow, which has risen from 8th to 4th in a league table of best-selling long alcoholic drinks. Marketing, on Headlines from Mintel

Products & Brands Baked Bean flavoured crisps
To help raise money for Comic Relief 2003, snacks firm Walkers is launching limited edition Baked Bean flavours to its traditional crisps and Monster Munch products. Supported by an advertising campaign featuring ex-footballer Gary Lineker, the packs will go on sale from the start of February, with 1p from each packet (5p from multipacks) being donated to the charity. Walkers also has plans to donate an extra £1m to the Comic Relief event. Grocer Today, on Headlines from Mintel

Products & Brands Re-launch for Canderel
Canderel is having a re-launch with improved taste and a new look. This is an attempt to widen its appeal to new users. Research has shown that there are over 5m sugar users in the UK looking to reduce their sugar intake, of which over 3m are lapsed low calorie sweetener users. The re-launch is being supported by a £1m TV and print advertising campaign. Chemist & Druggist, on Headlines from Mintel

Products & Brands New flavours for healthy yoghurt range
Austrian dairy cooperative Tirol Milch launched its Pro Frucht yoghurt in three new flavours on the home market. Tirol Milch’s Pro Frucht 0% now comes in strawberry, apricot and berries flavours. They contain no gelatine, preservatives or colourants. The product, primarily aimed at health-conscious consumers, contains probiotic bacteria including acidophilus and bifidus cultures. These bacteria have a positive effect on the balance of the intestinal flora and strengthen the immune system. It also has added inulin, a natural fibre derived from chicory roots, and vitamins. Pro Frucht 0% is described as delicate, slightly sweetened, creamy yoghurt. The company said it is not planning to launch a new flavour in the near future. Foodnavigator.com http://www.foodnavigator.com/news/news.asp?id=6727

Products & Brands Vanilla cola is a UK first
Virgin Drinks has launched a vanilla flavoured cola which it says is a first for the UK cola market. The move is part of Virgin’s strategy to drive brand awareness and loyalty by capitalising on the trend for new innovative cola flavours. Richard Barlow, commercial controller of Princes Soft Drinks, which handles distribution and marketing for Virgin Drinks, said of the development: “To be the first major cola brand to the UK market with vanilla is a major coup for the Virgin Cola brand. “The launch provides an opportunity for Virgin Cola to be innovative, and fun, whilst strengthening the brand’s presence within the trade and grow our consumer franchise. New product development is key in driving market expansion and Virgin aims to be very active in the future.” food industry news ISSUE 03-01: 10 JANUARY 2003

Products & Brands At Last! Bars Launched for People with Diabetes (USA)
Carbolite Foods, Inc. is introducing a new line of candy bars specifically designed for people with diabetes. Consumer taste tests conducted by Carbolite confirmed that people with diabetes who tasted the new bars thought they tasted like "real" candy, with none of the "cardboard taste" usually associated with sugar-free candy bars. Not only do the new bars taste like real candy, but also due to a new sweetener, the traditional laxative effect associated with sugar-free candy has been virtually eliminated. This means that people with diabetes can now enjoy candy without uncomfortable digestive upset. Additionally, the At Last! bars contain Insulade(TM), a blend of minerals including magnesium, zinc and chromium, which studies have shown promote better glucose metabolism. The bars are now being shipped to retailers and should be available nationwide in March and April in five flavours: Chocolate Truffle, Chocolate Crunch, Chocolate Almond, Peanut Butter and Chocolate Mint. PR Newswire on Consumer industries briefing, FT.com News by email http://tm0.com/ft/sbct.cgi?s=61423343&i=707961&m=1&d=3759382

Products & Brands New adult energy drink
Private Energy is a new adult energy drink bursting onto the nightclub scene. It claims to offer something different to the multitude of drinks available. Private Energy includes ginseng for an increased energy boost. Night, on Headlines from Mintel

Products & Brands Extreme Chill Out is a new addition to the functional drink category
Extreme Chill Out is the latest addition to the functional drink category. Containing valerian and camomile, it is a light tasting drink to recover from the day or the night before. Night, on Headlines from Mintel

Products & Brands Kraft Foods to extend its Philadelphia Cream Cheese into the bagel business (USA)
Kraft Foods is extending its Philadelphia Cream Cheese brand into the bagel business in a bid to boost sales. Kraft believes a raft of new advertising and innovation could drive sales not only for the base cream cheese business but also for extensions of the franchise into other added-value convenience sectors. Kraft introduces Philadelphia To Go Bagel & Cream Cheese this month. The 2-pack of bagels and cream cheese will retail for $1.99. The bagel and cream cheese product is a 1st foray into the grab-and-go breakfast segment. Advertising Age, on Headlines from Mintel

Products & Brands Britvic Soft Drinks forced to rename new soda drink
Just weeks before it hits the shelves, Britvic Soft Drinks has been forced to rename Freekin' Soda, 1 of its key launch products for 2003 after being advised that the original name "Freekin" would be unsuitable for Britvic Soft Drinks has been forced to rename one of its key launch products for 2003, after being advised that the original name "Freekin'" would be unsuitable for a children's carbonated milk-based drink. Marketing Week, on Headlines from Mintel

Products & Brands Boost for UK soft drinks brand
British soft drinks producer T Kearns has been acquired by the soya ingredients group Soya International, a deal which should significantly boost both companies' distribution and marketing capacities. FoodAndDrinkEurope.com http://www.foodanddrinkeurope.com/news/news.asp?id=1366

Products & Brands Hershey making its first major foray into the UK market
US chocolate giant Hershey is making its 1st major foray into the UK market with the launch of its Reese's Nutrageous bar. Nutrageous is a chocolate bar with peanuts, caramel and peanut butter. Marketing Week, on Headlines from Mintel
Products & Brands New bottled water aimed at sports enthusiasts Extreme Drinks is introducing H20 No Gas, a bottled water aimed at sports enthusiasts. Marketing Week, on Headlines from Mintel

Products & Brands Britvic unveils new kids drink
Britvic Soft Drinks is furthering its assault on the UK beverage market with the launch of a new children’s' drink, backed by a £6.25 million ad spend. Called Freekee Soda, the drink is a blend of milk and fruit juice, and has been under development for three years. The drink will be launched into certain sectors of the market at the end of February before a national roll out later in the year. Aimed at both "tweens" and their parents, the drink comes in two flavours, Odd Orange and Strange Strawberry. While details of the ad campaign supporting the launch have yet to be revealed, it is likely to include a range of activity, including a sampling campaign. Breaking News alert, from mad.co.uk

Products & Brands New additions to Pot Noodle and Magnum brands
Unilever is planning to introduce Sizzler, a new bacon variant to its Pot Noodle line-up. Meanwhile ice cream brand Magnum is to launch a limited edition product, entitled Seven Deadly Sins. Grocer Today, on Headlines from Mintel
Products & Brands Wall's to launch sausage balls Famous sausage brand Wall's is being extended, with the February 2003 release of Wall's Balls, bite-sized sausage meat in a crumb coating. Aimed at children's mealtimes, Kerry Foods will use their launch for more than half of the Wall's brand's £4.1m marketing spend in 2003. Grocer Today, on Headlines from Mintel

Products & Brands Ocean spray launch lemonade
Ocean Spray has launched Ocean Spray Ruby Lemonade grapefruit juice. The launch has responded to a growing demand for lemonade across the US. Ocean Spray is the No. 1 brand of canned and bottled juice drinks in the US, with 2001 sales of $1.3bn. Soft Drinks International, on Headlines from Mintel

Products & Brands Coca-Cola trials new soft drink in Ireland (Ireland)
A new soft drink is to be trialled by Coca-Cola in Ireland, under the name BPM Energy and if successful, may be rolled out to the UK and worldwide. Although details are sketchy at present, it is believed that BPM will be targeted at 18-34 year olds, providing energy and alertness benefits. BPM stands for 'beats per minute', with its launch being deemed "very big". Marketing, on Headlines from Mintel

Products & Brands GSK to launch a new flavoured water under the Lucozade Sport umbrella
GlaxoSmithKline is to launch a new flavoured water under the Lucozade Sport umbrella brand to target gym users. The flavoured water, expected to be called Hydroactive, helps re-hydration and replaces lost minerals after exercise. Marketing Week, on Headlines from Mintel Lucozade Sport unveils sugar-free drink variant GlaxoSmithKline is preparing the launch of a new flavoured water under the Lucozade Sport umbrella brand to target gym users. Insiders suggest that the flavoured water will be called Hydroactive and will be aimed at fitness fans looking for an isotonic drink that helps rehydration and replaces lost minerals after exercise. The appeal will be that, unlike the Lucozade Sport and Energy brands, the product will contain no sugar. Mad.co.uk http://www.mad.co.uk/story.aspx?uid=b3290260-0f98-4565-a90b-d2e5208adb84

Products & Brands Healthy snacks planned by Mars
Confectionery producer Mars UK is creating a selection of healthy snack products, supported by research claiming that cocoa is good for you. The business has established a new division by the name of The Positive Food Company, and is trialling the new products in upmarket London stores. Research undertaken over 10 years revealed that cocoa beans include antioxidants, which are good for the heart. First item off the production line is a single-dose chilled chocolate drink, which will 'top up your body's defences', promoted with the tagline 'positively healthy cocoa'. Marketing, on headlines from Mintel

Products & Brands Appletiser plans a re-launch campaign
Adult soft drinks brand Appletiser (previously Appletise), is in talks with agencies regarding a re-launch campaign. In the UK market, Appletiser battles it out with brands such as Aqua Libra, for adult, mainly female, consumers. The brand is owned by SAB Miller but is bottled and distributed by Coca-Cola Enterprises within the UK. Campaign, on Headlines from Mintel

Products & Brands Dr Pepper gets in on the milk drink act
Dr Pepper, the Cadbury subsidiary which claims to be the biggest non-cola soft drink producer in the US, is the latest company to see the potential of milk, launching a range of flavoured milk drinks under the Raging Cow brand and targeted at core soft drink consumers - teenagers. Foodanddrinkeurope.com http://www.foodanddrinkeurope.com/news/news.asp?id=1491

Products & Brands Bacardi-Martini to launch a diet variant of its Bacardi Breezer
In an attempt to attract females who have avoided drinking premium packaged spirits (PPS) because of their calorie content, Bacardi-Martini is to launch a diet variant of its Bacardi Breezer. The drink, Diet Lemon, will be the 1st diet variant for the booming PPS sector. The ABV of Bacardi Breezer Diet Lemon remains the same as the core product but it contains only 100 calories and half the sugar of regular Bacardi Breezer. Marketing Week, on Headlines from Mintel

Ingredients & Innovation A dream for chocoholics Forbes
Medi-Tech reports on study results showing that chocolate, containing its cholesterol-lowering phytosterol ingredient Reducol, significantly reduced LDL cholesterol in people with slightly raised cholesterol levels. Foodnavigator.com http://www.foodnavigator.com/news/news.asp?id=6632

Ingredients & Innovation Supermarkets driving down prices and competition from overseas threatens English orchards
Supermarkets driving down prices and competition from overseas producers are threatening the survival of England's world-renowned fruit orchards. English apples and pears could disappear from supermarket shelves within 10 years. The number of fruit trees across the country has nearly halved since 1990, when there were 41,200 hectares of orchard producing millions of Cox's Orange Pippins, Conference pears and Victoria plums each year. Trade association English Apples and Pears, says that at the current rate of decline English fruit will become an expensive luxury found only in upmarket stores and delicatessens. Growers claim the government and major supermarkets have failed to help them enough to fight off foreign competition. According to Friends of the Earth, nearly two thirds of consumers believe the supermarkets fail to do enough to help the home fruit industry. Independent On Sunday, on Headlines from Mintel

Ingredients & Innovation Healthy gum - for kids (SA) In South Africa,
a company called American Concepts is distributing a gum alternative to the traditional dietary supplement, under the brand name A 2 Z. The product is a multi-vitamin, multi-mineral chewing gum for children, containing 11 vitamins and 8 minerals. It is claimed to be ‘good for teeth, good for health’, and it is recommended children should chew one or two pieces for five minutes every day to get the full benefit. Food & Beverage International, December 2002

Ingredients & Innovation Healthy gum - for adults Retailer Delhaize Ltd.
Le Lion has recently introduced a chewing gum product aimed at adults in Belgium. Sold under private label, the company’s Specific gum line is designed to support the body and comprises three varieties - Structur Calcium, spearmint flavoured and enriched with calcium for the bones; Zuiverend Groene Thee, mint flavoured cleansing chewing gum with green tea; and Vitaliteit Vit. ACE, and orange and carrot flavoured gum enriched with antioxidant vitamins a, C and E. Food & Beverage International, December 2002

Ingredients & Innovation Guilt-free pleasure?
Even though chocolate may be high in calories, there is the potential to market it as a product that is ‘good for you’. Companies in Japan, for example, have been promoting the fact that cocoa beans contain antioxidant polyphenols, claimed to help reduce heart disease. New in France, from Klaus, is the Delecta range of confectionery sticks with beneficial ingredients. The range includes antioxidant-rich green tea caramels, caramels with chicory fibres to aid the digestion, and three varieties of chocolate stick - Vitalite white chocolate sticks with apricot and wheat germ; Antistress dark chocolate sticks rich in magnesium to help reduce stress; and Bifidogene milk chocolate sticks formulated with oligofructose to aid calcium absorption. Food & Beverage International, December 2002

Ingredients & Innovation New product development, a hit and miss affair
Making a success of new products within the UK grocery market is a hit and miss affair. Amazingly, some 5,000 new products are introduced a year, but 1 in 6 of them will fail. Just 300 of the total launched will manage to achieve sales of over £1m. Just to show how tough successful NPD is the example of Nestlé's Hot When You Want coffee cans, and the Enjoy! frozen ready meals line-up from Birds Eye, both of which are deemed by some to have failed in 2002. According to Mintel, there were very few new products that were truly innovative in 2002, but the winners were those who took simple ideas and implemented then well e.g. Walkers Sensations, crisps which adopted an upmarket stance. Grocer , on Headlines from Mintel

Ingredients & Innovation Beverage Developers Handbook (USA)
As a 32-page supplement to the American publication Beverage World, the November 2002 issue includes a Beverage Developers Handbook. Included in this magazine is an extensive article on benchmarking. Also included is an extract from a presentation by Cott Corporation senior vice president for technical service and product development. The suggestion is that new ideas come from three sources. Primarily from internal R&D. But also Cott look to other food categories, such as confectionery; and from ideas in markets worldwide. For Hansen’s Beverage Company however, the most important driver in developing a product concept is input from the trade - ‘can it be sold?’ - based on a balance of six inputs: Distributor request; market trends; sales team input; retailer input; competitive issues; management goals The full supplement is available in the Central Library Beverage World, November 2002

Ingredients & Innovation Authorities chew over additive that helps gum retain its flavour
The environment committee of the European Parliament meets next week to discuss a draft law permitting the use of two additives that promise to help chewing gum retain its flavour longer. Aspartame-acesulfame salt and sucralose were approved by the executive Commission of the EU last summer once scientists gave them the all-clear as far as consumer health is concerned. Sucralose, some 600 times sweeter than sugar, has already been approved in 40 countries outside the EU, including Australia, Japan and the US. It is commonly found in carbonated soft drinks, desserts and confectionery products, reports Reuters. Marketed by Johnson & Johnson as Splenda in the US, sucralose is unusual in retaining its sweetness even at high temperatures. Aspartame-acesulfame salt is a hybrid of two sweeteners that are already permitted, aspartame and acesulfame. According to its manufacturer, the salt retains the sweetness of the chewing gum for longer. Should the two products get the go-ahead from the environment committee, it is expected that a full parliamentary session will address the bill within the next few months. Just-food.com http://just-food.com/nd.asp?art=52877&dm=yes

Ingredients & Innovation Tetra launches 'squirty' straw
Tetra Pak Carton Ambient has launched a new straw concept, Sensory Straw. Targeted at children and young teenagers it “squirts” liquids directly into the drinker’s mouth. After market tests were carried in the UK and Australia, Tetra Pak said that comments like “tickling”, “fun” and “it squirts” were spontaneously expressed, especially by the older children. Foodnavigator.com http://www.foodnavigator.com/news/news.asp?id=6803

Ingredients & Innovation Functional foods to fill individual needs for health and happiness
So-called functional foods, now a niche market, could become the norm in 20 years time. Demographic trends point decisively toward a diet heavy on designer foods that optimise health and performance. Longer life spans will mean more older people who will need to fight age-related diseases if they want to remain energetic and mentally sharp into their old age. Food and biotechnology companies are investing heavily in functional foods in a search for premium products to sell in industrialised countries that already enjoy an abundance of food. The result will be foods that are enhanced through genetic modifications or the addition of certain natural components to address needs, such as fighting cancer. Scientists are also trying to understand the mood-enhancing components in chocolate in the hope of developing less-indulgent pick-me-up foods. While such designer foods will appear 1st in rich countries, related developments could help solve some of the developing world's most difficult nutritional problems. Wall Street Journal Europe, on Headlines from Mintel

Ingredients & Innovation Herbalist help Bottle
Green Drinks has enlisted the services of a qualified herbalist to help develop its new three-strong range of Wellbeing Cordials with herbal infusions. They are positioned as dilutable drinks for health-conscious adults. The Grocer

Ingredients & Innovation Dr Pepper gets in on the milk drink act
Milk, it seems, is the next product to get the major marketing makeover. For years a staple product in most western diets, milk has become increasingly important in recent years not least because of growing awareness of the health benefits of regular calcium intake. As usual, the marketing people have not been slow to realise the potential that milk now has, and as a result we have seen increasing numbers of major food and drink producers try to get in on the act. Recently there was the launch in the UK of a new juice/milk blend soft drink by Britvic, following in the footsteps of similar drinks from the likes of Tropicana (PepsiCo) and Danone. And last year Coca-Cola, perhaps the company with the finest pedigree when it comes to marketing soft drinks, unveiled its plans to produce a chocolate milk drink, called Choglit, in association with Nestlé. Now Cadbury Schweppes, the London-based confectionery and drinks group, has announced that it too is to get in on the act with the launch of a range of flavoured milk drinks under the brand name Raging Cow. Foodanddrinkeurope.com http://www.foodanddrinkeurope.com/news/news.asp?id=1491

Industry Initiatives Growing old sensibly
Early next century there will be more Europeans over 60 years old than under-20. As a result, there is a major European funded project to examine factors that determine food choice in a bid to improve nutritional intake among the elderly population. Foodnavigator.com http://www.foodnavigator.com/news/news.asp?id=6625

Industry Initiatives Advertising campaigns for alcoholic drinks do not encourage binge drinking
According to research carried out for Marketing Week, advertising campaigns for alcoholic drinks do not encourage binge drinking. 44% of 2,436 people questioned said that alcohol advertising campaigns do not encourage the kind of binge drinking which has been alarming pressure groups. 39% said they believed alcohol advertising campaigns encouraged binge drinking "to a certain extent". 14% said campaigns "definitely" contributed to binge drinking. Recently, the Department of Health unveiled research showing that the average alcohol consumption of children aged 11 to 15 has nearly doubled since 1990. Flavoured alcoholic beverage products, such as Bacardi Breezer, are being blamed for the increase. Their sweeter flavours and advertising appears to be aimed at a younger, though legal, drinker. Marketing Week, on Headlines from Mintel

Industry Initiatives Fruit beverages replace healthier fruit juices (USA)
Parents should beware the many new fruit-based drinks on the market as children are drinking less of the healthier pure fruit juice, suggests new research published in the Journal of the American Dietetic Association. Nutraingredients.com http://www.nutraingredients.com/news/news.asp?id=6139

Industry Initiatives Gee, Your Beer Smells Terrific
After decades of advances in artificial enhancements to vision and hearing, the oldest human sense is finally getting some attention. The race has begun to build a better nose. Several electronic sniffers, or e-noses, have entered the market in recent years. These mostly cumbersome and expensive contraptions, which are employed by industries ranging from food processing to airport security to health care, sell for anywhere between $10,000 and $50,000. Wired News, on Drinks and beverages industry news - daily newsletter http://c.moreover.com/click/here.pl?e56118630&e=6327

Industry Initiatives Getting drunk is a state of mind
An experiment using 148 undergraduates shows that people who think they are drinking alcohol behave as though they are drunk. When volunteers were given an alcohol-free, vodka flavoured tonic water and told it contained alcohol, they performed worse in memory tests than those volunteers who knew that their drinks were alcohol-free. Daily Mail, on Headlines from Mintel

Industry Initiatives Ofsted to investigate nutrition in English primary schools
Inspectors from the Office for Standards in Education (Ofsted) are planning to investigate nutrition in England’s primary schools as prompted by the UK’s Food Standards Agency. The move is a result of increasing concern about the rise in child obesity. One in three British children is overweight, and the number of overweight teenagers is estimated to have doubled in the last 20 years. BBC Online, on just-drinks.com http://just-food.com/nd.asp?art=52763&dm=yes

Industry Initiatives Fizzy drinks 'affect children's sleep'
Fizzy drinks can affect children's behaviour, scientists have confirmed. Doctors in the United States say caffeinated drinks disrupt children's sleep and leave them feeling tired during the day. The study of almost 200 teenagers found that boys are most at risk because they consume more soft drinks than girls. BBC News Online, on Drinks and beverages industry news http://c.moreover.com/click/here.pl?e56483222&e=6327

Industry Initiatives No grounds to suppose that fizzy drinks affect sleep
The study on the effect of the consumption of carbonated soft drinks on sleep patterns reported in the Daily Mail on 8 January does not support the conclusion that there is any connection. The authors of the study themselves accept that their research is inadequate. Additional studies should address some of the shortcomings of the present study. These include limited sample size, insufficient demographic characterization of the sample, limited geographic representation, and lack of objective verification of caffeine intake. Drinks Focus - January 2003, from BSDA

Industry Initiatives Beer belly 'gene' found
Genetic make-up could be to blame for the beer belly. Scientists have found that men with a certain gene variation have a tendency to get a flabby stomach. The men were more likely to become overweight and to put on fat around their abdomen. Experts say other factors - such as diet and exercise - also play a role in obesity. It appears, however, that some men may be genetically programmed to get a beer belly as they get older if they lead an unhealthy lifestyle. The culprit seems to be a substance called angiotensin-converting enzyme (ACE) which helps regulate blood pressure in the body. Scientists acknowledge that more research is needed to unravel the relationship between particular genes and obesity. As genes are identified and their roles better understood, so is the fact that obesity is a chronic disease, said a spokeswoman for the American Obesity Association. Understanding genetic predisposition to weight gain is an essential step in defining obesity prevention and treatment strategies, and in arresting the stigma that obesity is always an individual's fault. BBC News Online, on Drinks and beverages industry news http://c.moreover.com/click/here.pl?e56430444&e=6327

Industry Initiatives German deposit fiasco threatens UK market
A new deposit law introduced in Germany on 1 January 2003 threatens to disrupt the UK soft drinks market. Deposits of between 16 and 33 pence have been imposed on non-refillable carbonated soft drinks packaging, consumers being given receipts so that they can reclaim their deposits from retailers. BSDA is receiving reports that retailers are now refusing to stock soft drinks in non-refillable packaging, which in turn will affect the rest of Europe. Fears are now growing that German production of soft drinks in non-refillable packaging will be diverted to export, with the UK as the principal target. Unless German manufacturers suddenly become experts in UK labelling law, there could well be a renewed threat to the welfare of British consumers if the cans and bottles are not labelled properly. This is of course the subject of an ongoing BSDA campaign. The introduction of deposit schemes in other European countries is something that BSDA regularly asks the DTI to argue against within the European Union. Deposit schemes tend to make compliance easier for domestic manufacturers than importers and so act against competition, as well as driving up costs and reducing choice for consumers. BSDA is monitoring the situation closely, and is in regular contact with both the DTI and DEFRA. Drinks Focus - January 2003, from BSDA

Industry Initiatives Flavourings using alcohol as solvent defended
Following representations by BEMA (the British Essence Manufacturers Association) and BSDA, HM Customs and Excise objected to changes to customs codes proposed by the EU Excise Committee. Germany and Holland supported the objection. Representatives from BEMA and UNESDA met with the European Commission in Brussels on 3 December 2002 and it has been agreed not to introduce any changes without a detailed impact assessment and consultations with industry. It is hoped that pre-emptive action by BSDA and BEMA has prevented the introduction of rigorous control of flavourings using alcohol as a solvent. Drinks Focus - January 2003, from BSDA

Industry Initiatives Long life dairy drinks without preservatives (USA)
New aseptic filling technology that will give a longer shelf life to dairy beverages without the need for additives or preservatives has just been approved by the FDA. The technology involves pasteurization and homogenization in a sterile environment. Dean Foods, the largest dairy product manufacturer in the US, is to introduce Stork plastic bottle technology in its Morningstar Foods division in Mount Crawford, Virginia. The new system is capable of producing dairy beverages with a shelf life of 180 days. As the bottled drinks can be shipped and stored at room temperature the technology will enable Dean Foods to expand its distribution beyond its present limits without the need for refrigeration. Dean is the first US company to adopt the Stork technology for dairy products. Primarily, the new Virginia plant will produce single-serve Hershey's flavoured milk and shake products and Folgers Jakada coffee beverages. Dean has plans to install a similar line at its unit in City of Industry, California. Yahoo News, on foodlineweb from LFRA http://www.foodlineweb.co.uk/foodweb/displaynews.asp?newsid=1039

Industry Initiatives 5-a-day message gets tough
British food producers and retailers will have to comply with strict criteria if they wish to use the new 5-a-day logo, to be launched by the UK government’s Department of Health, on their packaging, according to the government. Nutraingredients.com http://www.nutraingredients.com/news/news.asp?id=6200

Industry Initiatives Bread market needs reorganisation
Research shows that value sales of plant bread jumped by 7% in 2002, however volumes were static and the market remains badly promoted, needing a reorganisation. Growth has been seen in premium wrapped loaves and speciality offerings, but more efforts are needed to boost the image of bread, possibly highlighting nutritional benefits. Grocer, on Headlines from Mintel

Industry Initiatives Pure filtered water at the turn of a handle from Carron
The new tap system Carron Phoenix's Tri-Pure, provides pure filtered water at the turn of a handle. It is installed in the same way as a conventional tap, and combines minimalist styling with the very latest in tap and filter technology. As well as providing cold and hot water, the Tri-Pure system incorporates an additional pipe and cartridge which diverts the incoming cold water through a dual ceramic and carbon filter cartridge providing pure, filtered water. Builders Merchants Journal, on Headlines from Mintel

Industry Initiatives Fresh orange juice through a vending machine
Capespan aims to appeal to consumer's thirst for all things healthy, with the launch of a new vending machine that provides freshly squeezed orange juice. On trial in some Tesco branches, and London rail stations, there are also plans to launch them into schools. The initiative is being run by Outspan Fresh, an offshoot of Capespan. Grocer, on Headlines from Mintel

Industry Initiatives The transformation of the biscuits market
Only a year ago, the biscuits market was suffering from a poor image, with consumers linking these products mainly with hot drinks consumption. However, a major change has occurred, with new products helping to push biscuits as trendy, to be consumed 'on-the-go'. Smaller and more portable biscuits have given the market a boost, with new launches and revamped designs from the major brands. According to Burton's, trends include indulgence, health, cereal bars, eating on the hoof plus grazing and sharing. Multiple Buyer & Retailer, on Headlines from Mintel

Industry Initiatives Focus on well being and functional foods
The last 4 years have seen functional or "well being" foods move from a niche sector into a health-plus market, claiming benefits for those consumers who use them. One of the struggles facing companies involved in this area is consumer apathy, as they begin to ask questions such as 'Am I actually feeling better?' The health benefits are likely to come from regular consumption, and will not always be instant. According to Mintel, the largest and fastest-growing area is functional breakfast cereals, growing by 872% in value between the years 1999 and 2001, worth some £175m. This is all the more amazing when you consider that traditional breakfast cereals have declined in value. Grocer Today, on Headlines from Mintel

Industry Initiatives Confectionery challenge for private label
Private labels are yet to make much of an inroad into the confectionery segment, but new analysis from Euromonitor suggests that the premium chocolate market could provide a rich vein of growth for private label in the future. foodanddrinkeurope.com http://www.foodanddrinkeurope.com/news/news.asp?id=1488

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