Flavours Newsletter
Jun 2003 - What’s new in Flavours

Key Statistics
Irish consumers top global beer spending
The Irish spend an annual $1221 per head on beer, the most of any country in the world.
In terms of volume, they win second place with 300 pints per person per year, with the Czechs on top at 326 pints.
Ireland is the only country where dark beers sell more than lagers and Guinness ranks as number one brand.
Retail News, on Headlines from Mintel

Key Statistics
Own label at 6-year low
Britain's own label market has hit a six-year low as retailers and brands continue to slug it out in the aisles, according to new findings from ACNielsen.
The researcher's annual review found retailer brands accounted for 38.5% of the £53bn grocery market in 2002, down from the 39% in 2001 and representing a more than £250m dip in sales. Volume share was also down, by 0.2% to 40.8%.
The Grocer

Key Statistics
Pet owners spend £1bn a year protecting their animals
As advances are made in veterinary medicine, the cost of keeping a pet healthy escalates. Pet owners spend £1 billion a year protecting their animals. Vets' fees are increasing by up to 11% a year. Yet only 12% of dogs and 7% of cats are insured.
Competition among companies offering pet insurance is getting intense with an increasing number of household names joining the fray. Petplan, along with its sister company DBI, is the current market leader, with a combined 39% of the market. Other players include Axa, More Than, Churchill, Lloyds TSB, Marks & Spencer, Tesco Personal Finance and Direct Line.
Post Magazine, on Headlines from Mintel

Key Statistics
Gin gets boost from cocktail culture
Gin is making a comeback into UK bars with the return of the cocktail raising the popularity of the spirit.
On-trade initiatives are boosting off-trade sales, particularly of pre-mixed gin and tonics which have seen 100% sales growth. The traditional gin and tonic mix still accounts for 95% of sales.
Off-Licence News, on Headlines from Mintel

Key Statistics
Sierra survives Tequila downturn
The Drinks Company's Sierra label is the only Tequila brand to beat a decline in sales over the past few years. Whilst Jose Cuervo experienced a 27% fall, Sierra sales rose 50% despite a higher price tag. A bottle of Jose Cuervo retails for an average of £13.97 and Sierra sells for £15.29, 10% higher than its rival.
Off-Licence News, on Headlines from Mintel

Key Statistics
US bottled water market is booming (USA)
Demand for bottled water in the US has become huge, with grocery stores stocking the product in massive numbers. The market is not just confined to still versions, with sparkling, fizzy, mineral, distilled, purified and flavoured (lemon, black cherry, raspberry, kiwi and strawberry) water in abundance. During 2002, manufacturers sold over $7.7 billion worth of bottled water, up 12.3% from 2001.
Miscellaneous, on Headlines from Mintel

Key Statistics
Teen girls obsessed by weight
A survey of 1,000 girls aged between 10 and 14 by teen magazine, Mizz, has revealed that more than half of girls are worried about being too fat.
Daily Express, on Headlines from Mintel

Key Statistics
Chewing gum sales help drive confectionery sector growth
The chewing gum business in the UK experienced growth of 18% between 2001 and 2002, according to new research.
In total, British consumers bought over £315m (US$525.3m) of chewing gum last year, according to the Biscuit Cake Chocolate and Confectionery Alliance's (BCCCA) annual statistics.
According to the 2002 information from BCCCA members and customs data, chewing gum sales drove growth of sugar and non-sugar confectionery by 4.9% to £1.56bn at consumer values. In comparison, the chocolate confectionery market is now worth £3.69bn and the biscuit market £1.55bn.
Just-food.com
http://just-food.com/nd.asp?art=54388&dm=yes

Key Statistics
UK still drinks give sparkling performance
The UK non-carbonated soft drinks industry, and in particular some of the smaller brands, is performing above expectations, according to research. Consumption of still drinks in the UK increased by 9% in 2002, says a report from beverage industry analysts Canadean.
A major strength of still drinks is the fact that they are perceived by parents to be healthier for children. This has helped attract new consumers from the long-life juice and carbonates sectors. In addition, the image of still drinks is being greatly enhanced by a number of new products. The market may lose a little fizz but orange looking decidedly flat. The report predicts that the market will continue to grow in 2003 but at nowhere near the rate seen in 2002. Consumption is expected to increase by a further 2%.
Just-drinks.com
http://just-drinks.com/nd.asp?art=19995&dm=yes

Key Statistics
Britons have less time for tea
India and China might produce the most tea, but if there is one country above all which has a reputation for drinking the most tea then it is the UK. But the great British tea-drinking tradition is apparently on the wane, according to a new report from market analysts Datamonitor, and there are some surprising pretenders to the tea-drinking throne.
British consumers bought 127 million kilograms of normal teabags in 1997, but by 2002, consumption had decreased to 114 million, according to Datamonitor. But coffee, perhaps the most natural alternative to tea, is not filling the gap - instant coffee sales are falling, and even sales of ground coffee fell in 2002.
Instead, British consumers appear to be turning to more flavoursome or healthy alternatives, such as fruit and herbal teas, consumption of which increased by almost 50 per cent between 1997 and 2002. One exception to this rule, however, is decaffeinated tea and coffee, sales of which fell even faster than regular coffee.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7178

Key Statistics
Bigger Biscuit
The biscuit, cake, chocolate and confectionery market grew by 2.1% to £6.8bn between 2001 and 2002, according to trade association BCCCA. The data, compiled from BOCCCA members, showed chocolate confectionery were up 2.4% to £3.69bn, sales of biscuits and wafers down 1.2% to £1.55bn, while sales of sugar and non-sugar confectionery were up 4.9% to £1.56bn boosted by chewing gum, which saw sales rise 18% to £315m.
The Grocer

Key Statistics
Spirit sales in pubs were stagnant in 2002
Spirit sales in pubs were stagnant in 2002. However, the cocktail revival that has taken place in recently has heralded a renewed interest in spirits among drinkers.
In the style bars, people are drinking less but drinking better and are willing to pay for a carefully concocted cocktail or the latest premium spirit brand.
Spirit companies such as Diageo, Maxxium and Bacardi-Martini have embarked on a drive to promote spirits in pubs.
Publican, on Headlines from Mintel

Key Statistics
Across Europe, only one in seven new products survive in the long term
With only one in seven new products likely to succeed, NPD in Europe is a risky venture.
Information Resources analysed the launches of 484 new products, from household cleaners to margarine, over two years, in the UK, France, Germany, Spain, Italy and the Netherlands. Sales were tracked for 18 months from launch, using a retail tracking service. Distribution, sales value, sales volume, pricing and promotional support were recorded.
Sales tend to follow one of five patterns - early peakers, late peakers, growers, flatties or droppers.
Marketing Week, on Headlines from Mintel

Key Statistics
Sausage sales up
UK sausage consumption rose 11% in 2001. We ate 5.3 billion sausages that year compared with 4.9 billion in 2000, but that's still below the 6 billion eaten 15 years ago.
Recently, speciality and premium varieties have boosted the popularity of the sausage. These contain up to 85% meat and the cuts are of better quality. They now pull in £105 million per year, 23% of the sausage market share.
The British Sausage Appreciation Society says there are now over 400 varieties available. Around 88% of households eat them and 75% cook a 1lb packet a week, meaning Brits eat an annual 300 million kilograms of sausages.
Grocer

Key Statistics
Surge in sweets market
UK sales of sugar confectionery reached £1.8 billion in 2002, up 6.9% on the previous year.
In the grocery sector, sugar sales were up 3.2%, but in impulse there was a 9.6% rise with chewing gum, mints and hanging bag sales leading the growth.
Convenience Store, on Headlines from Mintel

Key Statistics
US food and beverage sales on the Web to top $3.7 billion this year
US food and beverage sales on the Web by traditional mail-order merchants and Web grocers are predicted to top $3.7 billion (€3.2 billion) this year. That is up 40% from 2002 and exceeds sales of books, event tickets or toys.
Now the sector is about to get a big endorsement from the Web's best-known retailer. Amazon.com Inc. It is developing a food store that will provide a one-stop shop for a variety of food retailers on the Internet, from sellers of meat to cookies. Amazon will take a cut of the food orders processed through its site but leave the warehousing and shipping of goods to its retail partners.
Wall Street Journal Europe, on Headlines from Mintel

Key Statistics
The coffee love affair puts the lid on tea time
The British, once regarded as a nation of tea drinkers, are having a passionate affair with coffee.
The number of cups of coffee drunk in branded coffee bar chains has risen 60 per cent over the past two years with customers developing a preference for larger cups, according to the research by Allegra Strategies, a consulting and research company.
The UK coffee bar market, which some analysts had believed to be nearing saturation - particularly in London - is still growing after seven years of expansion. The growth comes in spite of cappuccino prices in leading coffee bars rising by 3.7 per cent between March 2002 and May of this year, now averaging £1.69 for a 12-ounce cup.
Allegra predicts the coffee shop market will grow at a compound annual rate of 5.1 per cent from May 2003 to December 2005. By then, Allegra is forecasting turnover from branded coffee chains, including Starbucks, Costa Coffee and Caffè Nero, to exceed £1bn.
Consumer industries briefing, from ft.com
http://tn01.com/ft/sbct.cgi?s=61423343&i=821957&m=1&d=4764439

Business & Economics
Retail sales recovering
As the end of war in Iraq tempted shoppers back to the high street, retail sales rose at their fastest pace in six months. The Confederation of British Industry (CBI) sales balance rose from +10 in April to +14 in May, vastly higher than predictions of +5.
Reuters, on Headlines from Mintel

Business & Economics
UK food & drink sales grew in May, 2003
Food and drink sales in the UK grew in May, 2003 with the warm spell of weather helping to boost sales of barbecue items, salads and soft drinks.
In particular, the last Bank Holiday in May encouraged people to buy more in supermarkets.
Grocer Today, on Headlines from Mintel

Business & Economics
Prices up 0.31%
Food prices rose by 0.31% in May over the previous month, and 0.61% compared with the same period last year, according to the BRC shop price index.
Non-food inflation was higher at 0.6% and 0.75% respectively
The Grocer

Business & Economics
UK growth downgraded
The Organisation for Economic Co-operation and Development says that growth in the UK economy will come in lower for 2004 than the most pessimistic forecast in Chancellor Gordon Brown's April, 2003 Budget.
Growth in 2003 will be 2.1% rising to 2.6% in 2004, says the OECD.
The Times, on Headlines from Mintel

Business & Economics
UK retail sales down in May
New statistics from the Office of National Statistics show retail sales were down 1% in May compared with April, making it the weakest month since January.
Retail sales rose by 0.5% in the three months to May, compared with the previous three months and by 3.4% compared with the same period in 2002.
BBC News Online, on Headlines from Mintel

Business & Economics
German inflation inching up
Consumer price data from the German states of Saxony and Brandenburg have confirmed the slight rise in German inflation in June, 2003.
These states reported increases in the price of food, heating oil and package holidays.
The Bundesbank said in its monthly report for June, that there were no signs Germany was experiencing a Japan-style, broad-based drop in prices.
Irish Times, on Headlines from Mintel

Business & Economics
French consumer prices dip in May, 2003
In May, 2003, French consumer prices dipped as energy prices fell for the second straight month, according to data from INSEE.
It revised down preliminary data showing prices flat, put year-on-year inflation rate at 1.0% on an EU-harmonised basis.
Irish Times, on headlines from Mintel

Business & Economics
Confidence growing for businesses
A survey of 3,000 firms has found that companies in eight out of nine British regions are forecasting growth over the next six months following the global economic slowdown. The report, by the Confederation of British Industry and the Government's nine regional development agencies (RDAs), suggests that confidence is improving due to indications of an increase in domestic orders and expected export demands, with the highest confidence coming from companies in the South West and the Midlands.
Sky News, on Headlines from Mintel

Business & Economics
UK economic growth slowest in 11 years
The UK economy expanded at its weakest pace in 11 years in the first quarter as businesses and consumers retrenched in the run-up to the war in Iraq, says data from The Office for National Statistics.
It said GDP rose by only 0.1% in the first quarter, lower than the 0.2% previous estimate and average forecast by analysts. On the year, GDP rose by 2.1%, down from the 2.2% estimate in May, 2003 and the weakest rate in a year.
Irish Times, on headlines from Mintel

International Developments
AUSTRALIA: Moo Joose to be banned
Alcoholic milk product Moo Joose has been banned from sale in the Northern Territory. Licensing Minister Syd Stirling said the drink was particularly attractive to under-age drinkers, and has ordered the Northern Territory Licensing Commission to ban it. He said the marketing of such products by liquor companies was irresponsible, and there was no doubt young people were encouraged to take up drinking.
Just-drinks.com
http://just-drinks.com/nd.asp?art=19879&dm=yes

International Developments
Sweden: Vodka-flavoured ice pops import banned
Food Ingredients First, on Drinks and beverages industry news http://c.moreover.com/click/here.pl?e77240477&e=6327

International Developments
PHILIPPINES: Flavours to make you scream
Ice cream manufacturers in Asia continue to lead the way in novel products with yet another combination of flavours that many in the Western world would find bizarre.
According to Mintel, Asian manufacturers are keen to produce savoury ice cream flavours. Recent creations have included Sweetcorn and black bean flavours. Now Nestle in the Philippines has launched its new ice cream called Puto Bumbong, made in a macupuno flavour (translated a as 'mutant coconut') with added pieces of rice cake and cheese for a novel ice cream eating experience.
Food Manufacture - NPD Supplement, June 2003

International Developments
IRELAND: Adding value to Ireland's food industry
The functional foods sector offers strong growth opportunities for the Irish food industry, according to Enterprise Ireland, a government-funded development body which recently organised a trade mission to Japan to assess the success factors of the booming health foods market there and to build relationships between the countries' food businesses.
Companies such as Glanbia, Dairygold, the Kerry Group and Kilkenny Springwater participated in the event along with research institutions including the University College of Cork (UCC) and BioResearch Ireland. Irish representatives met with Japanese companies like Yakult and Calpis as well as visiting research institutes. The event in Japan follows a similar mission to Finland in November last year.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7103

International Developments
DENMARK/SWEDEN: Arla sells Semper Clinical Nutrition to Novartis
Danish-Swedish dairy products group Arla Foods has sold its Semper Clinical Nutrition unit to Swiss pharmaceuticals company Novartis for an undisclosed sum. Semper Clinical Nutrition, which is a unit of Arla's Swedish foods subsidiary Semper, makes clinical food and dietary supplements. The unit has an annual turnover of DKr100m (US$15.8m). The sale forms part of Arla's long-term strategy to focus on its core activities.
Just-food.com
http://just-food.com/nd.asp?art=54301&dm=yes

International Developments
DENMARK: Danish consumers feel confident to spend
A new consumer survey from Institut for Konjunktur-Analyse (IFKA), which analyses economic trends in Denmark, shows that consumer optimism for the coming months is at its highest level for June that IFKA has seen in 20 years. Every fourth household now has more disposable income than a year ago, and according to IFKA the prevailing sentiment is spend, spend, spend.
Invest in Denmark, part of the Danish Trade Council under the Danish Ministry of Foreign Affairs.

International Developments
IRELAND: Irish companies among slowest payers
According to the Grant Thronton's 2003 International Business Owners Survey, Irish businesses are among the world's slowest payers.
It alleges that on average Irish businesses take 52 days to pay an invoice.
This puts the RoI among the six slowest-paying countries along with Spain, Italy, France, Japan and Greece. The survey also showed that 16% of Irish Republic businesses receive payment for their invoices within 30 days; 70% between 30 and 89 days; while over 8% wait over 90 days.
Irish Independent, on Headlines from Mintel

International Developments
IRELAND: In RoI, 'Generation T' the teetotallers
A new socio-economic group, 'Generation T' is gathering pace in the Republic of Ireland.
This is a group that have not tasted Guinness or other alcohol. They do not consume alcohol.
While still enjoying the music and other youth activities, they do not wish to go down the drink road, owing to experience they have seen of others.
According to market research from Mintel, all-Ireland is consuming more alcohol. This is up by some 50% since 1977. The company's 'World Drinks Trends' survey puts the Irish Republic second only to Luxembourg in per-capita volume of alcohol consumer in the EU.
The Irish drink 12.3 litres of pure alcohol per year, this compares with 8.4 litres in Britain. This research also found that the 18-24 age group accounted for the largest part of the Irish drinks market.
Irish Independent, on Headlines from Mintel

International Developments
USA: Americans' growing obsession with pets is fuelling major growth in the petcare industry
Americans' growing obsession with pets is fuelling major growth in the petcare industry.
About 63 million US households own some kind of pet and there are 117 million dogs and cats in the country.
In the two years to 2000, the US pet population increased at a faster rate than the human growth rate.
The US market for pet food is worth $11 billion, while the market for pet products is valued at $17.2 billion.
Americans treat their pet as a family member and will not scrimp on caring for their pets. There is a trend for more niche product areas as well. The major players in the US pet food industry are increasingly fighting the battle for a share of the mid-market on product quality and health benefits rather than price. Pet foods with nutritional supplements are now mainstream. A new trend towards low-calorie pet food is emerging aimed at owners who have less time to exercise and play with their pets. Some of the more bizarre developments is "shareable treats" for human and dog consumption and dog bakeries.
Marketing Week, on Headlines from Mintel

International Developments
Lakeland Dairies acquisition
The fourth largest food processor and cross-border milk company, Lakeland Dairies has made its third purchase in the space of 15 months.
This group has more than doubled it size in this time and is now generating an annual turnover of €400 million+. The latest acquisition is LE Pritchitt & Company, which is a foodservices group that is based in Newtownards and Bromley, Kent in the UK. The price paid was £13 million (€18.5 million).
This merged business will be the largest UHT supplier to the UK and Irish Republic foodservices market.
Irish Independent, on Headlines from Mintel

Retail & Company News
Nisa-Today's launches 2 new sub-brands
Nisa-Today's is introducing 2 new sub brands, boosting its £7m ready meal sales.
The ranges - Heritage Select and Heritage Healthy Choice - aim to tap growing consumer demand for both premium and better-for-you convenience meals.
Convenience Store, on Headlines from Mintel

Retail & Company News
Britvic gets a quick win
Soft drinks producer Britvic has selected an on-line tool for delivering time and cost savings, while encouraging self-sufficiency among its business users. Britvic has chosen On Web Integrator from NetManage to enable it to expand its existing computer systems infrastructure and develop new web-based applications.
The first project will address the company's purchase order management system. OnWeb will be used to enable easy navigation through multiple screens on the AS/400 mainframe and will provide users with a one-application interface into all the data.
Food Manufacture, June 2003

Retail & Company News
Budgens launches new convenience store type
Budgens has launched its first Budgens Qucikstop store in Brighton. The new convenience store-type will eventually replace its Express fascia, of which there are 33. The emphasis of the new store type is top-up shopping combined with a strong fresh-to-go range. The new outlet also has a Costa Coffee offer.
Retail Week, on Headlines from Mintel

Retail & Company News
Boots attacks lunchtime sandwiches market
Health and beauty group Boots The Chemists is introducing an exclusive drinks and snacks offer that could take a bite out of the lunchtime sandwiches market. Boots has recognised that lunchtime is integral to the whole business proposition. Forty new proprietary and own-brand lines have been added to the lunchtime mix, creating 73,000 meal combinations. The own-brand sandwich offer has been simplified to two lines - Menu and Shapers - rather than three. New Shapers snacks have been introduced and exclusive deals struck with manufacturers including Cadbury's. The key competition in sandwiches remains Marks & Spencer, but also Superdrug, as well as the supermarkets, which are starting to get more of a high street presence.
Retail Week, on Headlines from Mintel

Retail & Company News
Fox's to get attention
"Accelerated" NPD and fewer, more impactful promotions will tackle continuing problems in Northern Foods' troubled biscuits division, promised chief executive Jo Stewart.
Speaking of "disappointing" performance in biscuits overshadowed an otherwise positive set of full-year results, Stewart said more money would be pumped into above-the-line spend on Fox's biscuits, although costs would be cut elsewhere in the division..
A new range of healthier biscuits and new products under the Fox's Creations brand would help drive the recovery.
Overall, ore-tax profit for the year to March 31 was down 3.5% to £97.5m with sales on continuing operations up 5% to £1.42bn.
The Grocer

Retail & Company News
Sainsbury extends convenience operations
Sainsbury, the UK's second largest food retailer, is to extend its partnership with Shell, bringing its Local convenience store format to 100 petrol stations across Britain.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=2302

Retail & Company News
Swiss to blitz UK market
Confectionery and biscuit manufacturer Swiss Delice is planning to expand into the UK this Autumn. The Swiss-based firm believes that the UK market presents a major opportunity in confectionery.
Confectionerynews.com
http://www.confectionerynews.com/news/news.asp?id=224

Retail & Company News
Matthew Clark md quits for Carlsberg-Tetley role
Neil Fraser, the managing director of cider brands at Matthew Clark, has left the company after only four months in the job to work for Carlsberg-Tetley Brewing as head of the company's on-trade sales business.
Industry News alert
http://www.mad.co.uk/story.aspx?uid=482bb4fa-6e3e-4140-ade6-14eadd8b9698

Retail & Company News
Budgen's: quick change to Quickstop
Budgen's is rolling out its 'Quickstop' brand, the new convenience format stores. This move follows the success of major food retailers and takes advantage of new trends in consumer behaviour, including more frequent top-up shopping and greater flexibility. However, knowing the market will be the key to making a success of this venture.
Food Digest from Datamonitor.com

Retail & Company News
Quality of UK sandwiches criticised
Mass-produced sandwiches in the UK have come under fire from Which? Magazine, who suggests they are stale, tasteless and over-priced.
The Consumers' Association title purchased and consumed sandwiches from chains such as Sainsbury's, Pret A Manger, Tesco and others.
Some were found to be contain soggy bread, limp lettuce and even chicken that was undercooked.
London Metro, on Headlines from Mintel

Retail & Company News
C-sector complain of words not action
Manufacturers supplying the convenience sector are failing to match their rhetoric with action according to a poll of executives of The Grocer Top 50 independent retailers.
With high levels of growth in the c-store sector, many suppliers are talking about making a greater commitment to the sector, but two thirds of our retailers said there had been no increase in commitment in the past year.
Retailers were divided over whether suppliers' understanding of the sector was improving.
The Grocer

Retail & Company News
Dairy Crest posts 4% rise in annual profits

Just-food.com
http://just-food.com/nd.asp?art=54363&dm=yes

Retail & Company News
7UP takes fizz out of Cadbury
Cadbury Schweppes predicted a 5 per cent fall in interim profits in a downbeat trading statement. Demand for its fizzy drinks, which include 7UP and Dr Pepper, was weak in the first half in the US because of wet and cold weather, innovation from cola rivals and weaker consumer spending, Cadbury said.
7UP volumes fell 18 per cent in the year to date because of a change in distribution. Cadbury said this decline was no worse than expected, although there have been suggestions that it will ease later in the year.
Cadbury Trebor Bassett, its UK sweets and chocolate arm, helped to compensate by enjoying a strong Easter and market gains. Confectionery businesses in South Africa and Egypt performed well, too.
However, the Dandy chewing gum unit bought last year was hit by difficult market conditions in Russia. In Australia, Cadbury struggled to regain custom lost after a troublesome revamp of its computer systems.
consumer industries briefing, from FT.com
http://tn01.com/ft/sbct.cgi?s=61423343&i=814191&m=1&d=4703135

Cadbury Schweppes' earnings flat
Food Ingredients First, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e75495104&e=6327

Retail & Company News
Indian tea bars set to launch in the UK
Plans have been unveiled to launch around 25 Indian tea bars into the UK during the next three years.
Fronted by the Indian Tea Board, it's hoped that they will have the same consumer impact as Starbucks etc has enjoyed with coffee.
The first bar has already been unveiled, within Mayfair restaurant Chor Bizarre, and branded as Chai Bazaar.
Further outlets are planned within restaurants, hotels or as standalone sites.
Marketing, on Headlines from Mintel

Retail & Company News
Dairy merger referred to Competition Commission
The proposed merger between Arla Foods and Express Dairies has been referred to the Office of Fair Trading. If the deal was approved it would create the largest milk company in the UK.
The Times, on Headlines from Mintel

Retail & Company News
M&S increases emphasis on innovation
Marks & Spencer, the UK food and clothing retailer, is to embark upon two new ventures which reflect the company's increasing confidence after several years of disappointing results.
The success of the company's Simply Food joint venture with the Compass group - which has seen the a number of food-only Marks & Spencer outlets spring up on railway stations across the UK - has now prompted the company to trial the format on Britain's motorway network.
According to the Financial Times newspaper, M&S will open a trial Simply Food outlet on one of Britain's busiest motorways, the M1, later this summer, again in association with Compass, which owns the Moto chain of motorway service stations.
According to the report, the Simply Food stores will focus on providing meal solutions to motorway travellers, with a particular emphasis on ready meals and fresh fruit and vegetables. There will also be the traditional service station fare of sandwiches and salads.
The Simply Food business has been a significant success for M&S, which is planning to roll out 50 more railway station outlets over the next three years. There are currently 30 or so high street versions of the Simply Food unit, and this number could rise to as many as 150 by 2006.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7148

Retail & Company News
Express Dairies bullish about future prospects
With solid gains in underlying profits and the proposed merger with Arla Foods expected to lead to further improvements, there is plenty for UK dairy group Express Dairies to be pleased about. But the group's optimism is somewhat tempered by the difficulties which continue to face the dairy sector, not least in the commodity market.
Express reported underlying operating profits from continuing businesses up 9.1 per cent to £37.3 million (€52.6m) in the year to 31 March, while underlying pre-tax profit increased by 23.5 per cent to £28.4 million.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7179

Retail & Company News
Express Dairies delivering CDs and books
Milk delivery company Express Dairies is supplementing its income with parcel deliveries of consumer items such as CDs, books, contact lenses, catalogues and directories.
The company saw profits rise 9.1% to £37.3 million in the year to the end of March.
theretailbulletin.com, on Headlines from Mintel

Retail & Company News
Asda named UK's favourite supermarket
UK shoppers rate Asda as their favourite supermarket, according to a new awards scheme unveiled by The Grocer magazine.
Shoppers were asked to rate supermarket chains, using five key attributes: price, range, quality, service and stock. Asda came top of the list, followed by Tesco, Sainsbury's, Marks & Spencer and Morrisons.
M&S in particular was praised for the quality of its products and was highly commended for the service it provides.
Grocer Today, on Headlines from Mintel

Retail & Company News
Funky rival to Parrot
Somerfield is launching a Funky Food Factory children's food brand in August. It is a similar concept to Sainbury's Blue Parrot brand, trying to create a children's range that's partly about fun. Although Somerfield has "been sensible in terms of fat salt and sugar content", it would not be "trailblazing" the range in terms of health.
The Grocer

Retail & Company News
Nestle and Colgate-Palmolive join in oral care market assault
Nestle and Colgate-Palmolive have signed a deal to jointly develop, market, distribute and sell a portfolio of oral care products, spearheaded by the initial Colgate Dental Gum offering.
Breaking News alert, from mad.co.uk
Nestle and Colgate-Palmolive join in oral care market assault

Retail & Company News
Coca-Cola fine
Coca-Cola is facing a fine from European Union regulators who will warn the global giant that it is abusing its dominant position in the soft drinks market in several EU countries. The conclusion of a four-year investigation is likely to find that the drinks group broke antitrust rules by offering discounts to retailers in the 1990's in the UK, Germany, Austria, Denmark and Belgium.
The fine could read up to 10% of Coca-Cola's worldwide turnover, equating to $1.9 billion.
Financial Times, on Headlines from Mintel

Retail & Company News
The own-label trend
The penetration of retailers' own products in British supermarkets is far higher in sales terms than anywhere else in the world.
In the UK, own-label accounts for about 45% of supermarket sales, whereas in the US that figure is just 20%. In continental Europe it ranges from 13% in Italy to 36% cent in Belgium.
M&S is thought to be at the crux of the own-label trend. Once Britain's biggest retailer, it has a strong heritage of unique product development and quality, making it acceptable to buy own-label.
Financial Times, on Headlines from Mintel

Retail & Company News
Starbucks Corp. committed to open 15,000 stores in international markets
While it is mindful of the financial cycles in the global marketplace, Starbucks Corp., the coffee retailer, says it has not had significant impact on its overall business. Starbucks says it's committed to plans to open at least 15,000 stores in international markets.
iii.co.uk, on Headlines from Mintel

Retail & Company News
BP sets up convenience operations division
Petrol stations operator BP has set up a convenience operations arm, focusing on its estate of 1,240 forecourt stores which achieved sales of £300 million in the 2002 calendar year.
BP Connect will be the main focal point of the operation, while the Wild Bean Café side seeks to rival Pret a Manger with a premium food-to-go offering.
Grocer, on Headlines from Mintel

Products & Brands
Cheesecakes lead Sara Lee's premium dessert range
Sara Lee Gold launched as the new premium range of frozen desserts from Sara Lee, promises to "reinvigorate consumer interest" in a sector that has been under pressure. Initially the range will feature three premium cheesecakes - Strawberry Shortcake, Lemon & Lime, and Chocolate & Hazelnut - but will be expanded quickly with additional products later in the year.
Bake & take, May 2003

Products & Brands
Conscience cola's new flavours
Derby-based drinks company Qibla Cola Company has extended its portfolio of soft drinks with the development of three new beverages.
The new range of drinks consists of Qibla-5, a lemon and lime carbonated cocktail; Qibla Fantasy, a carbonated drink available in orange and mango flavours; and Qibla Spring Water. All to compliment Qibla Cola introduced for the Muslim community, to challenge the major western multinationals like Coke.
Food Manufacture, June 2003

Products & Brands
New bottled water has added health benefits
New bottled water, Lakeland Willow Water is going on sale, containing high levels of salicin, a trace element said to add health benefits.
The drink will be listed in 130 Waitrose and 146 Sainsbury's branches as from the beginning of June, 2003.
Grocer Today, on Headlines from Mintel

Products & Brands
Sweet dishes are spiced up
Samosa and spring rolls may have entered the mainstream UK food industry, but rarely have they been manufactured quite like this before. Instead of containing ingredients such as peas, bean sprouts and potato, the new sweet samosa and spring rolls from Authentic Food Company contain exotic fruit. The samosas have a combination of tropical fruits, including papaya, pineapple, guava and coconut wrapped in crisp pastry; while the spring rolls contain papaya, pineapple, mango and banana.
Food Manufacture, June 2003

Products & Brands
Carbonation for kids
Producer of fruit cordials and presses Belvoir Fruit Farms is adding a touch of effervescence to its drinks range with the introduction of Organic Fizz, organic carbonated fruit drinks aimed at children. The drinks are targeted at children aged between five and twelve. They are organic, low in added sugar and with no artificial colours, preservatives or sweeteners. After extensive testing by the company the flavours that appealed most to children and adults - and developed to complement the healthy image of the product are Orange, Apple and Strawberry.
Food Manufacture, June 2003

Products & Brands
Beer-absinthe drink attacked
A new alcoholic product which mixes strong lager with a potent spirit was condemned by campaigners today for encouraging "binge drinking".
Deco, made by Edinburgh-based Scottish Courage, consists of a bottle of 5% strength Kronenbourg lager with a shot of absinthe - which is 45% alcohol - in a small container attached to the top.
Edinburgh Evening News, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e73671151&e=6327

Products & Brands
Shloer launches new flavour
Adult soft drink company Shloer is launching a limited edition sparkling drink in white grape, rhubarb and ginger flavour.
Food Industry News, on Headlines from Mintel

Products & Brands
'Goodlooking' health drink launched (USA)
The first so-called skincare beverage is to launch in New York this summer, to rehydrate skin in the warm weather. It contains oxygen, purified water and a blend of zinc and vitamins E and C.
SkinCola contains purified water, activated oxygen and Z-Bec, a combination of zinc and vitamins, said to boost the immune system and promote cell growth and repair. The oxygen content has been shown to repel free radicals and helps to prevent tissue breakdown, according to the business founders.
BeverageDaily News Headlines.com
http://www.beveragedaily.com/news/news.asp?id=582

Products & Brands
Parmalat developing global mineral water brand (USA)
Parmalat is trying to develop a global mineral-water brand starting in North America with its new Canada-produced Esker Natural Spring Water. The Italian food group's strategy is to educate consumers that an "esker" is an ancient geological formation created when rivers of melting glacial ice filtered through rocks and sand to flow deep underground. The selling point is that esker water is pure and un-touched by humans.
Advertising Age, on Headlines from Mintel

Products & Brands
Britvic expands Robinsons range
Soft drinks firm Britvic is launching Fruit Spring as an extension to its Robinsons range early next year.
The company will not reveal the nature of the new product but industry insiders are guessing that it will be a flavoured water.
Marketing Week, on Headlines from Mintel

Products & Brands
Schweppes Mixsch being launched
A new selection of soft drink mixers is being launched by Coca Cola Enterprises, called Schweppes Mixsch, aiming to cash in on consumer demand for white spirits such as vodka.
Design Week, on Headlines from Mintel

Products & Brands
Putting the fizz in milk (USA)
Sparking milk-based drink Crazy Cow soda has been launched in the US. Manufacturer The Sparkling Milk Company believes that this is the first shelf-stable milk-based product to hit the supermarkets with a two-year shelf life.
BeverageDaily News Headlines.com
http://www.beveragedaily.com/news/news.asp?id=584

Products & Brands
GBL launches fruity vodka RTD
GBL International is launching VK Coast, a fruit-based range of still vodka alcopops. The RTD range will be available in orange & passion fruit, apple & mango and strawberry & vanilla flavours in 27.5cl bottles with a 4% abv.
A £10 million national marketing and PR campaign will support the launch.
Off-Licence News, on Headlines from Mintel

Products & Brands
Kronenbourg launches aromatic beers
France's biggest brewer, Kronenbourg, has launched a range of aromatic flavoured beers aimed at the trendiest of consumers. "Kronenbourg Fizz" is flavoured with gin and lime while "Rhum Spirit", part of the 1664 brand is laced with rum extracts.
Just-drinks.com
http://just-drinks.com/nd.asp?art=19937&dm=yes

Products & Brand
Dairy-free chocolate milk launched
The UK's first dairy-free chocolate milk drink is being launched by Alpro. Available in one-litre packs and selling for £1.39, the drink will be promoted via a national TV and press campaign.
Marketing, on Headlines from Mintel

Milk-free choc drink launched
Belgian soya milk manufacturer Alpro has introduced a chocolate flavour of its alternative milk drink in the UK market.
The chocolate variety is said to be the first fresh dairy-free chocolate drink to be launched in the UK and will be merchandised alongside its dairy equivalent in supermarkets.
Alpro, Europe's leading supplier of soya products, says the chocolate variety has been introduced in response to growing consumer demands for more variety in the dairy-free sector.
BeverageDaily News Headlines
http://www.beveragedaily.com/news/news.asp?id=597

Products & Brands
Maxxium launches £1m cocktail drive
The distribution company Maxxium UK, owned by Highland Distillers, Remy Cointreau, Vin & Sprit and Jim Beam Brands is to pump £1m into a free on-trade cocktail training initiative.
The Maxxium Cocktail Master classes have devised and delivered by award-winning in-house mixologist Wayne Collins. They will take place in a mobile bar within a 1950s Airstream bus called MaxxAirstream.
Just-drinks.com
http://just-drinks.com/nd.asp?art=19940&dm=yes

Products & Brands
New flavours added to the Kommissar Vodka Ice RTD range
Strawberry and Passion Fruit, Cola and Lemon, Orange and Vodka Black Ice have been added to the Kommissar Vodka Ice ready-to-drink range.
The new variants of the 4% ABV selection is aimed at the 18-30-year-old "style conscious" drinker.
Morning Advertiser, on Headlines from Mintel

Products & Brands
Britvic launches a Tropical juice drink
A Summer variant called Tropical is joining the Robinsons High Juice range. Take-home sales of Robinsons increased by 14% to £233 million during 2002.
Marketing, on Headlines from Mintel

Products & Brands
Beer in a cone from Scottish Courage?
Brewers are frequently looking to extend their product ranges via sub-brands and flavour variants, but Scottish Courage in the UK has taken this one step further with the launch of a Newcastle Brown Ale ice-cream.
Ice cream producers have been looking to develop new flavours in recent months, with savoury varieties such as curry or cheese, but beer is not a variety which many of them have considered, until now. Scottish Courage has signed a six month licensing agreement with local ice cream maker Doddington Dairies, which will produce the ice cream by hand. The product will have a predominantly caramel flavour, but with a hint of Newcastle Brown thrown in for good measure.
Fears that such a product could appeal to young people will be assuaged - if not entirely eliminated - by the fact that the product will contain less than 1 per cent alcohol.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=2355

Products & Brands
Pale beers increasing in popularity
Pale beers are increasing in popularity in the UK as brewers respond to European influences.
There is a greater variety of imported, light-coloured beers than dark, English ones. Recent launches seem to bear out the argument that Britain is definitely looking on the lighter side of beer, particularly when it comes to traditional real ale.
Acceleration in this trend is aimed at attracting younger drinkers. Brewers believe pale ales are more accessible than a traditional beer, particularly to the younger drinkers in the 30+ age group. The food factor is also proving compelling in the sale of ales.
Morning Advertiser, on Headlines from Mintel

Products & Brands
Coke to launch premium root beer drink
The Coca-Cola Company has continued the recent spate of new product launches to emanate from the world's leading producers, by introducing a root beer float-flavoured beverage onto markets in the Southern US.
The new drink is called "Barq's Floatz," and will be available in supermarkets, convenience stores, and restaurants in Mississippi and Louisiana.
The drink is being positioned as a premium beverage, packaged as it is in a retro glass bottle.
Just-drinks.com
http://just-drinks.com/nd.asp?art=20009&dm=yes

Products & Brands
Müller launches fromage frais for children
Leading UK yogurts brand Müller aims to win sales in the children's market with the release of My First Müller Corner, a new fromage frais product targeting mothers of children under five years old.
Grocer Today, on Headlines from Mintel

Products & Brands
Appletiser appeals to female market
Recently re-launched Appletiser is aiming to become UK women's favourite non-alcoholic drink.
The focus of the strategy is "Pure pleasure for women", based on Appletiser being 100% pure with no artificial preservatives, colours or additives and no added sugar.
Brand Magazine, on Headlines from Mintel

Products & Brands
Summer Flavours
Sainsbury has given its own label yogurts and juices portfolio a summer makeover.
Three new organic yogurt lines have been introduced - prune, barley and rye flavour - to join grapefruit and orange, and raspberry and cranberry variants.
Three Greek-style yogurts with fruit on top are also making their debuts, one with berries, one with orange and another with passion fruit.
The juices category has also received a revamp, with new pack designs across the range.
The Grocer

Products & Brands
Cordial with high juice
Vimto has launched a high juice cordial named Vimto High Juice. It has 50% fruit juice content, comprising a blend of grape, blackcurrant and raspberry juices together with Vimto's secret blend of fruit extracts, herbs and spices.
Soft Drinks International, June 2003

Products & Brands
How the star players pursued their goals
A review of product launches picked by The Grocer team at the beginning of 2003 for success gives an interesting view into where things are 'happening'. From food and drink, the various categories include:
Pace-setters - Maltesers ice cream stick;
Serious contenders - Nestle Double Cream chocolate, Cirio Del Monte World Fruits, Wrigley's X-Cite;
Stalwart performers - Fox's Moments cakes;
Survivors - Twinings Green Tea Selection;
Relegated - Tropicana Smoothies, Gordon's Edge
The Grocer

Products & Brands
Hot Shot Beverages
Hot Shot is a new concept that's all about making living easier and more convenient. You're on the go. You ant a coffee, a tea, a hot chocolate. The solution - a hot drink in a cool can. Simply shake the can, pull the ring - and go!
The drinks are dispensed from a Hot Shot heated display which serves the product at 50C/55C - so the drinks are hot, but can be handled safely. Prior to display the cans are stored at ambient temperature.
Hot Shot comes in six different varieties: Black/White Coffee (with or without sugar), Tea (white, with sugar) and Hot Chocolate, with a range of soups to be added in the Autumn.
Food & Drink International, June 2003

Products & Brands
Fruit blend
Following the success of Vimto Still, launched in 2002, comes a new ready-to-drink product, Vimto Blast. The drink is a no-added sugar blend of grape, blackcurrant and raspberry juices together with the brand's secret blends of herbs and spices with added vitamins. It comes in a 250ml bottle suitable for children's lunchboxes, with a re-sealable sports cap and is packaged in 6 x 250 ml multi-packs.
Soft Drink International, June 2003

Products & Brands
New spiced rum named after tattoo artist
A new spiced rum named after the world's most famous tattoo artist and a super premium gin containing cucumber and rose petals are at the forefront of a new premium spirit push by William Grant & Sons.
Sailor Jerry, a blend of Caribbean rum, vanilla, lime and spices, is on trial in selected pubs with a national roll-out planned for later this year. Sailor Jerry Collins was the founding father of modern tattoo art.
Hendrick's is a super premium gin with a 41.4% ABV. It has already gained listing in London bars.
Publican, on Headlines from Mintel

Products & Brands
Diageo, Bacardi drop strength of RTDs
For the second time in 12 months Bacardi-Martini has reduced the alcoholic content of its Bacardi Breezer range in the UK.
In June 2002, following the budget the company reduced the alcoholic content from 5.4% to 5.1%. In February 2003, 70cl bottles of the range's most popular variants, Orange, Pineapple and Wartermelon were introduced with a 5% content. Now the complete Breezer range has been changed to the lower level.
To coincide with the launch of their new 30.0cl cans Diageo has also reduced the alcohol content of both Smirnoff Ice and Smirnoff Black Ice to 5.0%
Just-drinks.com
http://just-drinks.com/nd.asp?art=20033&dm=yes

Products & Brands
Diageo to cut the prices of Smirnoff Ice and Archers Aqua to reverse slide in sales
In an attempt to reverse a slide in sales, Diageo is expected to cut the prices of its market-leading Archers Aqua and Smirnoff Ice ready-to-drink brands by up to 5%.
The decision will coincide with a cut in the alcohol content of Smirnoff Ice and Smirnoff Black Ice to 5%, matching a similar drop in the alcohol content of rival Bacardi-Martini's Bacardi Breezer range.
Diageo was forced to increase prices in 2002 in response to an increase in excise duty, which has adversely affected sales across its spirits brands.
Marketing Week, on headlines from Mintel

Products & Brands
Water Joe, a caffeinated water product, to hit UK stores
Water Joe, a caffeinated water product from the US, is set to hit UK stores, making it the country's first such water brand. WaterJoe will be marketed as a functional energy drink. Functional drinks, which contain added vitamins or performance enhancing ingredients, are forecast to be the fastest-growing sector for the soft drinks market.
Marketing Week, on Headlines from Mintel

Products & Brands
Cape Escape juice drinks
The UK's leading branded fruit supplier Capespan is launching Cape Escape, a range of chilled fruit juices in orange and mango, grape and cranberry, plus pineapple, coconut and ginger. Capespan's new juice drinks incorporate rooibos, an antioxidant with an energy kick that is popular as a tea in South Africa.
Marketing, on headlines from Mintel

Products & Brands
English addition
The Bottle Green Drinks Company has added an English Summer cordial to its adult-orientated range as a seasonal sister to its Spiced Berry variant. The new addition combines raspberries, strawberries and mulberries.
The Grocer

Products & Brands
Merrydown has its finger on the Pulse
Perry's going large thanks to the launch of Pulse, a new flavoured perry wine courtesy of Merrydown Cider.
Pulse, 6.3 per cent ABV, comes in three flavours and has been released exclusively into the on-trade complete with a funky looking font that not only flashes but also delivers the liquid at 4°C.
Chris Carr, managing director of Merrydown Cider, said: "We are very excited by the launch of Pulse. Merrydown sparked the 'alcopop' boom when it launched the first alcoholic lemonade Two Dogs in 1994. Now we are again leading the way by developing a new trendsetting drink."
Other brands in the miniscule perry sector include Babycham and Pink Lady, but Pulse is set to vie with wine and premium packaged spirits for the attention of women aged 20 to 35-years-old.
Available in cranberry and ginger, citrus and juniper and pear flavours, Pulse will seek listings in style bars.
Thepublican.com
http://www.thepublican.com/item/10021/11/5d40C43/415

Products & Brands
Freekee Soda is faltering three months after launch
Three months after its launch Britvic Soft Drinks' "texture-based fizz" Freekee Soda is faltering.
Retailer Asda has slashed the price of Freekee Soda multipacks from £2.08 to 98 pence to shift stock.
Analysts believe the product is "an acquired taste" and queries the premium price of the product, given that it is targeting youngsters.
Marketing Week, on Headlines from Mintel

Products & Brands
Twist on old favourites
UK biscuit manufacturer McVitie's has developed new variants of its traditional Digestive and Hobnobs ranges.
McV Lemon and Ginger Digestives, and McV Caramel and Hazelnut Hobnobs are the offerings.
Kennedy's Confection, June 2003

Products & Brands
Summer ice cream introductions
The start of summer has initiated a flurry of super-premium and premium ice creams to the global market. In Japan, Haagen-Dazs has introduced its Maple Crispy Sandwich. The maple ice cream with wafer is chocolate coated and made from maple sugar.
Blue Ribbon Chocolate Cake Ice Cream has joined Dreyer's Edy's Grand Ice Cream range in the US. The new product consists of chocolate ice cream, chocolate cake pieces and a chocolate frosting swirl.
In Norway, Diplom-Is has launched a Jubilee ice cream cone, including almond brittle.
Kennedy's Confection, June 2003

Products & Brands
Jaffa with a citrus tang
Lees of Scotland has added a tangy variant to its Jaffa Delights range. Jaffa Orange Bar consists of an orange-flavoured fondant and dark chocolate exterior. The company sys it ha re-developed the fondant to give it a citrus tang.
Kennedy's Confection, June 2003

Products & Brands
Haribo roll-out hits the UK
As part of a European roll-out, Haribo has launched a fizzy sour version of its Mega-Roulette fruit-flavoured gums. It consists of six different fruit flavours - pineapple, lemon, orange and strawberry, raspberry and blackcurrant - and has a sour taste.
Kennedy's Confection, June 2003

Products & Brands
Fizz and cinnamon in a tin
Canadian Big Sky Brands has launched CO2 Carbonated Hard Candy. CO2 is a breath freshener which combines the sensation of a beverage with fruit flavours. It comes in sparkling orange, cherry and lemon-lime variants.
Kennedy's Confection, June 2003

Products & Brands
Oasis juice drink re-launched
The Oasis still juice drink is being re-launched in the UK by the Coca-Cola company, with the product receiving a 'bolder' and more 'enlivened' identity. At the same time Oasis is introducing fruit fushions to replace single fruit flavour formulations. Three existing flavours are being reformulated and two new flavours, Berry Apple and Lemon Lime Light, introduced.
Design Week, on Headlines from Mintel

Products & Brands
Lilt goes after youth market revamp
Coca-Cola Great Britain is planning a £5m re-launch of Lilt tropical fruit drink in an attempt to capture a younger, urban market. The re-launch will coincide with the roll-out of a new banana and peach-flavoured variant.
Marketing Week

Products & Brands
Entenmann moves into frozen aisle
Cake maker Entenmann has expanded into the frozen cake category with a range of ice cream cakes. The ice cream cakes, which will compete in the premium dessert category, come in three different varieties: sticky toffee blondie, carrot cake, and mango and passion fruit yoghurt ice cream smoothie.
Food Industry News, June 2003

Ingredients & Innovation
Drinks giant looks to tagatose
Tagatose developer Spherix says that global drinks manufacturer PepsiCo is exploring the use of the sweetener in several products, including beverages. At the same time, the Australian and New Zealand foods regulatory authority has recommended the approval of the low-calorie, full-bulk sweetener in a variety of products.
BeverageDaily News Headlines.com
http://www.beveragedaily.com/news/news.asp?id=580

Ingredients & Innovation
Dried Fruit New Products Awards
The sixth annual Dried Fruit New Products Awards are due soon and the categories for award give an interesting insight into areas perceived as key for the future of the sector. There are five categories: health, convenience, luxury, snacking, and alternative lifestyle. In addition there will be a prize for the best new use of dried vine fruits and an overall winner - this accolade was picked up by Sunsweet Dried Fruit Bars in the last awards.
The awards are sponsored by Whitworths, Sun-Maid, Sundora, Community Foods, California Raisins, Sunsweet, Demos Ciclitira, Flagship and Fanpac.
The Grocer

Ingredients & Innovation
Sethness adds colour
A rich hue combined with a bland flavour profile is the latest caramel colour from US company Sethness. The colour is soluble in salt solutions of up to 20 per cent saline concentration.
Confectionerynews.com
http://www.confectionerynews.com/news/news.asp?id=222

Ingredients & Innovation
The Natural Ingredients Market
In recent years, natural products have grown from a niche segment to one of the fastest-growing categories in personal care, according to marketing research companies.
In fact, although health and beauty care sales in grocery and drug stores (excluding Wal-Mart) declined 1.2% in 2002 according to Information Resources Inc., Chicago, natural personal care (NPC) grew 10% to $4.1 billion in 2002, according to executives for the Nutrition Business Journal.
NPC outperformed other natural product segments, such as functional foods, which grew 7-8%, and supplements, which increased 3-4%, according to preliminary NBJ estimates for 2002.
Happi.com
http://www.happi.com/current/June031.htm

Ingredients & Innovation
Cooking oil takes on fat and cholesterol fight
A new 'functional' cooking oil made from a blend of tropical, olive, coconut and flaxseed oils, may soon offer relief to calorie-counters and cholesterol-watchers, according to Canadian researchers.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7105

Ingredients & Innovation
Improving fibre in drinks formulation
Soluble fibre, the rising star of the ingredients world, has traditionally been found and consumed in solid foods such as cereals, vegetables and fruits. A new generation of soluble fibres - formulated by a number of ingredients companies in Europe and elsewhere - allows the addition of dietary fibre to various foods, including dairy, beverage and confectionery products.
Nutra Ingredients, on Drinks and beverages industry news.com
http://c.moreover.com/click/here.pl?e74301109&e=6327

Ingredients & Innovation
Fruit and veg lessen risk of arthritis
It is stated by researchers at the Arthritis Research Campaign that by increasing personal intake of fruit and vegetables may reduce risk of arthritis. They looked at around 25,000 people who took part in an ongoing study of diet and chronic diseases. It was found that there is strong link between the risk of developing arthritis and low intake of vitamin C, the latter is found in vegetables and fruit.
Natural Products, on Headlines from Mintel

Ingredients & Innovation
Health benefits of pomegranate juice revealed
California based POM Wonderful, the first company to sell a refrigerated super premium pomegranate juice, has released medical research information on the health benefits associated with its product.
The antioxidant activity of pomegranate juice is high, due to the natural antioxidants it contain, called polyphenols. The company claims the antioxidant activity in pomegranate is greater than for other beverages known for these properties - red wine, cranberry juice, blueberry juice, orange juice and white wine.
Softdrinksworld, March 2003

Ingredients & Innovation
Kiwi output down
A report from the Ministry of agriculture and forestry has revealed that New Zealand kiwifruit production fell 11% to an estimated 242,000 tonnes in the year ended March 2003. The fall in production resulted from dull, wet conditions in the autumn of 2001 and cool, wet conditions during pollination.
Fruit and Vegetable Markets, on Headlines from Mintel

Ingredients & Innovation
Dairy drinks target teens with berry, jamocha flavours
After finding new growth in water and juices, the soft-drink giants are applying their marketing muscle to a big beverage category they've long overlooked: milk, or at least a colourful, sugar-laden version of it. Coca-Cola Co., Cadbury Schweppes PLC and others are moving in with new drinks that scarcely resemble the stuff the milkman used to bring.
Next month, Coke, Atlanta, plans to roll out blueberry, chocolate and vanilla-banana flavours of Swerve, a milk-based drink. Raging Cow, launched by Cadbury in March, comes in five flavours, including Pina Colada Chaos and Jamocha Frenzy. Other drink makers are promoting milkshakes and, believe it or not, carbonated milk.
The soft-drink companies hope to use milk's wholesome qualities to buff their image and build sales, particularly in schools, where they have been criticized heavily for pushing sodas -- and for contributing to the sharp rise in childhood obesity. Their pitch: The milk drinks, with vitamins and protein, are more nutritious than soda and a good source of calcium, a mineral sorely lacking in kids' diets.
Wall Street Journal, AP via New Jersey Online, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e75079800&e=6327

Ingredients & Innovation
An alternative to gum arabic
French starch ingredients company Cerestar Food & Pharma Specialties Europe, a business unit of US agri-giant Cargill, has added a new spray-dried n-OSA starch to its C*EmCap product range.
C*EmCap 12683 - a cold water dispersible, modified starch - has been developed as an alternative to gum arabic as a flavour encapsulate in drinks. The company claims that the product provides emulsion stability and protection to essential flavour oils.
BeverageDaily News Headlines
http://www.beveragedaily.com/news/news.asp?id=596

Ingredients & Innovation
Achieving the perfect sweetness
New sensory research commissioned by speciality ingredients manufacturer Nutrinova has shown that the sweetening system used in hot tea and coffee can influence the overall taste profile of the drink.
The study allows Nutrinova to provide table top sweetener and instant or ready-to-drink tea and coffee manufacturers with valuable guidance in selecting the optimum sweetener combination for their products.
The study looked at nine different sweetening systems: sucrose, sucralose and aspartame as single sweeteners, as well as two- and three-way blends with Sunett (Acesulfame-K)- all with the equivalent sweetness of 5 per cent sugar. An independent sensory panel tasted the sweetening systems in instant coffee and tea drinks at 60°C.
BeverageDaily News Headlines
http://www.beveragedaily.com/news/news.asp?id=595

Ingredients & Innovation
Fibre-powered drinks
Soluble fibres currently being formulated by a ingredients companies in Europe can now be used in beverage products.
Soluble fibre, the rising star of the ingredients world, has traditionally been found and consumed in solid foods such as cereals, vegetables and fruits. A new generation of soluble fibres - formulated by a number of ingredients companies in Europe and elsewhere - allows the addition of dietary fibre to various foods, including dairy, beverage and confectionery products.
As science accumulates evidence that supports the benefits to our overall health of a regular soluble fibre intake, food manufacturers adding fibre to products such as beverages can clearly help to increase the total dietary fibre intake in a population.
BeverageDaily News Headlines
http://www.beveragedaily.com/news/news.asp?id=585

Ingredients & Innovation
Chinese herb to ease memory loss?
The Chinese herb gastrodine is at the centre of new findings that suggest it could improve memory, orientation and language in people who have mild to moderate vascular dementia as the result of a stroke.
Nutraingredients.com
http://www.foodnavigator.com/news/news.asp?id=7818

Ingredients & Innovation
A cup of noni juice with DHA please
The wheels of European bureaucracy continue to turn with the European Commission granting approval to two novel foods for use as food ingredients. The move comes after an agreement between member states in the Standing Committee for the Food Chain and Animal Health.
The approvals are for two non-genetically modified products, noni juice, and DHA-rich oil derived from microalgae.
Novel foods are foods and food ingredients that have not been used for human consumption to a significant degree in the EU before 15 May 1997. In order to protect consumer health, novel foods must undergo a safety assessment before being placed on the EU market. Only products considered safe for human consumption are authorised for marketing, as laid out in the Regulation EC 258/97 of 27.1.1997.
Noni juice is the juice of the Indian mulberry or morinda citrifolia that grows in Polynesia and other parts of South East Asia. The authorisation - requested by the US based Morinda company - concerns the juice of the fruits as an ingredient to be used in pasteurised fruit drinks.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=7779

Ingredients & Innovation
UK gives green light for new sweetener
The UK Food Standards Agency (FSA) announced that new regulations giving a two-year temporary national authorisation to market a new sweetener - 'salt of aspartame-acesulfame' - have come into force as of the 27 May 2003.
The new regulations for the salt - a chemical combination of two already permitted sweeteners, aspartame (E951) and acesulfame K (E950) at an equivalent mixture of 1:1 - fall under 'The Sweeteners in Food (Amendment) (England) Regulations 2003 (SI 2003 No. 1182)'
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7167

Ingredients & Innovation
Bad news for apple market
Between the beginning of April and May 2003, 315,000t of apples were imported into EU countries, some 112,000t more than in the same period of 200 and 140,000t more than in 2001. The surplus more than compensates for the deficit in EU-grown production.
Price pressure has fallen on traditional varieties such as Golden Delicious, Red Delicious and Granny Smith, as bi-coloured varieties are becoming more favourable with consumers.
Global apple production in decline. New research has predicted that world apple output in 2005 will fall to 66.1 million tonnes compared with 67.3 million tonnes in 2002. The forecast for 2010 has dropped from 75.1 million tonnes to 71.1 million tonnes.
Fruit and Vegetable Markets, on Headlines from Mintel

Ingredients & Innovation
Pear market trouble
The EU table pear market was affected in May 2003 as overseas deliveries weakened in the middle of the month. A shortage in small and medium sized varieties has triggered an improvement in pear prices.
Fruit and Vegetable Markets, on Headlines from Mintel

Ingredients & Innovation
European stone fruit crop to decline
Reports from the Europech conference have forecast a 28% decline in production of peaches, nectarines and apricots in 2003 compared to 3,392,000 tonnes produced in 2002.
Fruit and Vegetable Markets, on Headlines from Mintel

Ingredients & Innovation
Making waves in the health world
The only conference of its kind in Europe, 'Sea, health and nutrition' takes place for the second time this September, offering the latest research on marine ingredients for nutrition, supplements and cosmetics.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7194

Ingredients & Innovation
Flavours to drive oleoresin growth
The innovative world of flavours is experiencing more rapid growth than the overall food industry, giving fresh momentum to the essential oils and oleoresins market, affirms Frost & Sullivan.
According to a new study from the market analysts, the rise in consumer demand for natural food products, coupled with the associated need for flavouring compounds from natural sources, are providing a major boost to the essential oils and oleoresins market.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7208

Ingredients & Innovation
Strawberry anti-cancer compounds under microscope
Scientists at the Institute of Food Research have begun work to identify the compounds in strawberries responsible for inhibiting the growth of cancer cells.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7216

Ingredients & Innovation
New labelling for high caffeine drinks
Drinks with high levels of caffeine may soon have to carry new highly visible labels to alert and ensure consumers know the exact content of the product.
The Food Standards Agency is seeking views on new labelling rules for drinks containing caffeine in excess of 150mg per litre. The drinks will have to carry the declaration 'high caffeine content' and include the amount of caffeine expressed in mg per 100ml.
The message will have to be placed in the same line of vision as the name of the food.
The changes to the labelling rules for food containing caffeine and for quinine were agreed in Brussels in February 2002.
Grocer.TodayAlerts.com
http://www.grocertoday.co.uk/article.asp?s=2&a=256137

Ingredients & Innovation
Cocoa to bubble over?
Cocoa traders have predicted that cocoa prices are set to increase. This estimate follows an incredible period during which the price of the commodity has dropped by up to 40 per cent.
Confectionerynews.com
http://www.confectionerynews.com/news/news.asp?id=241

Ingredients & Innovation
Mars sheds trans fats
The recipe for Mars has been changed because of public health concerns about hydrogenated fats, and other manufacturers could be pressurised to follow suit.
Kennedy's Confection, June 2003

Ingredients & Innovation
Hard to swallow
Wrigley's has patented a chewing gum containing the active ingredient of anti-impotence drug Viagra. The gum would contain up to 100 milligrams of active compound sildenil citrate, according to the company's patent filed in the US. Users would need to start chewing the gum about 30 minutes before attempting to have sexual intercourse, the patent says. Wrigley said it had no plans to start producing the product whilst pharmaceutical giant Pfizer holds control over the patent to make Viagra.
Food Industry News, June 2003

Ingredients & Innovation
Wind-free beans
Scientists in Venezuela have proved that the natural fermentation of beans before they are processed reduces the potentially embarrassing side-effects of flatulence - solving an age-old problem for many food manufacturers.
(So with the age-old problem sorted, just leaves the old-age one to deal with)
foodproductiondaily.com
http://www.foodproductiondaily.com/news/news.asp?id=3043

Industry Initiatives
Alcohol helps with rational decisions
A new study suggests that alcohol actually increases people's capacity to make rational decisions. Researchers in Canada discovered that students who had been given alcoholic drinks showed better judgement than those on soft drinks. Psychologist Dr Catherine Ortner said the findings "contradicted what our intuitive assumptions would be, because people think alcohol makes them more impulsive".
thePublican.com
http://www.thepublican.com/item/9889/11

Industry Initiatives
Lunchtime eating habits
Sandwiches are the most popular lunchtime food followed by pastry products including hot pies and sausage rolls.
However, research reveals that there is a trend towards more and more people skipping lunch due to pressure of work. 23% of us eat at our workstations, 39% do nothing other than eat at lunchtime and almost 20% of us do not take a break at all.
The most important factors when choosing what to eat for lunch is taste, speed and convenience, and at the forefront of this thinking are sandwiches.
With changing lifestyles, lunchtime purchases are spread wider than the classic 12-2pm bracket, sales of sandwiches begin earlier and evening peak trading lasts longer. Three peak times for sandwich sales are 6am-8am, 12pm-2pm, and 4pm-6pm.
Convenience Store

Industry Initiatives
'Sofa snackers' driving UK ice cream growth
Ice cream has traditionally been a seasonal product, with consumption highest in the summer months. But manufacturers have been working hard in recent years to create new, indulgent snack products. Product innovation and changes in consumer habits have paved the way for year-round consumption of ice cream in western Europe, according to a new report from market analysts Euromonitor.
While peak ice cream sales continue to be in the summer months, premium products and indulgent flavours have enabled manufacturers to capitalise on the 'sofa snacking' trend, boosting home consumption and making ice cream sales consequently less dependent on hot weather, the report claims. Unlike in North America, where ice cream is a popular dessert and where home consumption outweighs out of home consumption, impulse ice cream continues to account for the bulk of ice cream sales in all other regions.
Foodadndrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=2298

Industry Initiatives
Female drinking trends
Female drinkers do not always choose the same drinks in the on-trade as they do in the off-trade. Women generally do not tend to buy whisky, shots, RTDs, cans of lager or Guinness from retailers, but drink pints, swig Smirnoff lce, WKD, Archers Aqua and VK in pubs.
So exactly what are women choosing in the off-trade? Possibly a drink that takes their mood at the time, but very possibly they are sub-consciously heeding the marketing spin of brand managers and going for drinks targeting their "independent, fun-loving" spirit.
Women also love beer. However, brewers need to move towards a genderless style of advertising. Some women refuse to touch beer because in their mind a pint equals a tubby lady.
Off-Licence News, on Headlines from Mintel

Industry Initiatives
Let's drink to health
'Healthiness-to-go' appears to be the order of the day on Europe's supermarket shelves as Mintel's Global New Product Database reveals a number of new functional drinks launched in the last month.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7096

Industry Initiatives
Unsafe Supplements (USA)
An estimated 29,000 dietary supplements are available in the United States. These supplements include all ingested health products (botanical, nonbotanical, herbal or traditional cultural remedies in pill or other forms) and are usually intended for maintaining health, rather than treating existing conditions (as most pharmaceutical drugs do). Many of these supplements may produce adverse events: unwanted side-effects that cause injury or illness. Dietary supplements do not have to endure the same mandatory registration or safety testing as prescription drugs, and adverse events related to them are difficult to monitor.
Your Health ChiroWeb Newsletter

Industry Initiatives
Hop on Pop??? (USA)
Less than a year after the Los Angeles Unified School District board voted in favor of a district wide ban on soda sales, the California Senate has now jumped on the bandwagon, passing legislation to ban soft drinks from schools by 2005. Soda has become the target of food cops and office-holders that seek a scapegoat for the rise in childhood obesity. Meanwhile no causal link between soda and obesity has ever been produced.
Senator Deborah Ortiz and proponents of soda bans often cite Harvard University "evidence" of links between soda consumption and obesity as well as calcium depletion.
The U.S. Centers for Disease Control and Prevention has a much different opinion on the Harvard research saying: "There are no data from the Harvard study that allow us to make an estimate of what proportion of obesity might be accounted for by changes in soft drink consumption." The study's author himself admitted, "there is no clear evidence that consumption of sugar per se ... causes obesity."
PR Newswire (US), on consumer industries briefing, from ft.com
http://tn01.com/ft/sbct.cgi?s=61423343&i=810460&m=1&d=4650537

Industry Initiatives
Anti-ageing foods ripe for growth
Anti-ageing foods are set to grow significantly as the worldwide elderly population expands and people seek to improve quality of life, confirmed speakers at a recent seminar organised by the Northern Ireland Centre for Food and Health (NICHE).
With a two-fold increase in the world's elderly (65 and over) predicted between 1998 and 2025, it is not surprising that the market for anti-ageing foods - which at present is small and fragmented - will see increased levels of activity and opportunity for innovative small to medium-sized enterprises, particularly in the drinks sector, those attending the seminar heard.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7106

Anti Ageing Food and Drinks
In a separate article, LFI published a major global analysis of the current status and future potential in four of the anti-ageing market identifies specific sub-sectors: Eye health, Skin health, Cognitive health, Joint health
Nutraingredients.com
http://www.nutraingredients.com/pubNL.asp?id=nghydyoerb

Industry Initiatives
UAE launches first Middle East health show
(Further evidence, if it was needed, of the growing importance of this sector)
The Middle East's first trade show for the natural health industry has been scheduled for October this year and will take place in Dubai in the UAE.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7104

Industry Initiatives
Alcohol memory loss
A new study has found that alcohol can even cause memory loss in people who drink between 10 and 25 units each week.
Scientists are now suggesting that although government guidelines on alcohol drinking are safe for the liver, they cannot be sure that they are safe for optimum brain function.
Daily Mail, on Headlines from Mintel

Industry Initiatives
Regional food promotion
The Government is investing £3 million to promote regional food and drink. The three-year investment is part of the Food and Farming Strategy, which is backed by a total of £500 million.
Poultry World, on Headlines from Mintel

Industry Initiatives
Increase in consumer demand for peppers
An increase in consumer demand for peppers is predicted as a result of consumers learning more about their health benefits. The sector grew by 7% in value and 12% in volume during 2002 and, with penetration at 62%, 2003 will offer greater opportunities to further grow the market.
Checkout, on Headlines from Mintel

Industry Initiatives
Dangers of drinking too much water!
New research has suggested that drinking too much water while exercising can be harmful to your health. Fitness cultures have over-emphasised the importance of drinking water at every opportunity while exercising according to researchers. Drinking too much water can cause hyponatraemia or water intoxication leading to the dilution of sodium, other body salts and electrolytes in the blood, which can in turn cause dizziness and respiratory problems.
Daily Telegraph, on Headlines from Mintel

Industry Initiatives
Pop N' Shake Cap Delivery System
The most important beverage innovation since carbonation!
According to company founder and CEO David Sandoval, Pop N' Shake is a patented revolutionary new closure featuring an internal dispensing cavity. This innovative bottle cap delivery system is like no other closure currently available and solves the problem for beverages requiring a fresh mixture just before consumption.
BevNET.com
http://www.bevnet.com/news/2003/06-09-2003-popn.asp

Industry Initiatives
Bakers must innovate in slow market
With the European bakery market forecast to grow less than 0.5% a year in volume, bakers have been told that they must improve their branding and selling, and be more competitive with their prices in order to stay afloat.
The report from Leatherhead Food International suggests that the biggest increase in demand will be for snack-sized products, long-life bread, healthy ingredients and indulgence products.
British Baker, on Headlines from Mintel

Industry Initiatives
Food firms ordered to reduce fat and sugar
Food manufacturers will soon be told to reduce the amount of fats and sugars in their products as part of a government scheme to crack down on obesity.
Guardian, on Headlines from Mintel

Industry Initiatives
How will nutrition shape society?
A new foresight project on future trends in nutrition and health in Europe is being launched by Bio-Sense and WS, and will be presented on 27 June in Brussels.
'Nutrition and health 2020 - future scenarios for a health conscious society' will explore how nutrition could shape the business and regulatory environments over the next two decades.
The project will bring together the food, retail, ingredient, pharmacy, biotechnology, microelectronic, and insurance industries, along with scientists, medical professionals and consumer interest groups.
The aim is to develop a set of future scenarios reflecting how a wide range of driving forces may interact to arrive at a new set of values and opinions about the role of nutrition and health.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7138

Industry Initiatives
Dramatic slowdown in the UK organic market
There has been a dramatic slowdown in the UK organic market, with penetration in homes slowing, reports the Food and Drink Federation Organic Group.
Grocer, on Headlines from Mintel

Industry Initiatives
Britain ignoring rising alcoholism
A new study has found that more than 13 people die from alcohol abuse per day in England and Wales.
The charity is urging the government to do something about this huge problem and give alcohol services a greater priority.
Alcohol abuse costs the NHS around £3 billion a year and Turning Point argues that better treatment would cut the cost.
BBC News Online, on Headlines from Mintel

Industry Initiatives
Sensory straw tickles different tastebuds
Tetra Pak has come up with a new sensory straw that can direct the flow of a drink to different zones in the mouth to maximise flavour. With a sealed end and four holes punched around the top, the straw is said to spread liquid over more of the mouth than conventional straws, which tend to squirt it down the back of the throat. The new method means the drink comes into contact with taste buds in different areas, such as those on the side of the tongue which are most sensitive to sweetness.
The Grocer

Industry Initiatives
The six types of shopper
Buyers of luxury brands fall into six groups. They can be identified by their attitudes, their values, how they live and how they shop. The types consist of Affluent Altruists, the Trusting Traditionalists, the Security Seekers, the Label Lovers, the Shopping Junkies and the Trend Innovators.
The Times, on Headlines from Mintel

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.