Flavours Newsletter
March 2003 - What’s new in Flavours

Key Statistics
UK bottled water sales hit £1,000m
UK bottled water sales rose 11% last year to 1,770m litres and £1,000m in retail value, according to the 12th annual UK Bottled Water Report* from specialist consultant Zenith International. Despite a slowing economy and poor summer weather, bottled water continued to outperform all other main beverage sectors. Still water for everyday use provided the main impetus behind the growth, gaining a further 12% in 2002 to reach an overall share of 83%.
Food Industry News, March 2003

Key Statistics
Corner sweet shop thriving
Brits may have the sweetest tooth in Europe but new evidence suggests that health and diet concerns are pushing the UK consumer towards healthier sugar and gum confectionery options.
Market analysts Datamonitor reveal that within Europe, and confirming previous studies, in terms of market value the UK is leading the sugar confectionery market with a value worth €1.9 billion in 2002. Gums and jellies form the largest sector, representing 28 per cent of the market in value terms. The rise of pick and mix shops in leisure complexes such as cinemas, bowling alleys and shopping malls have contributed to this. Hard-boiled sweets are the second most popular sugar confectionery product purchased by consumers. Not totally surprising, the products eaten least are medicated sweets.
foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=7173

Key Statistics
Chocolate named UK's favourite comfort food
A new BBC2 programme on 20 March 2003 will reveal that chocolate is the ultimate comfort food in the UK, enjoyed by more people than tea, biscuits, sausages and mash or toast. Ok, excessive consumption will lead the weight gain, but chocolate is claimed to boost happiness, cut down on stress and, allegedly, help with a person's health. Such is the popularity of chocolate in the UK, that on average, we eat 148 bars per year. Women are the biggest users, with 1 in 3 voting it their favourite food. Even celebrity chefs back chocolate, with Keith Floyd saying he loves eating a Mars bar.
Evening Standard, on Headlines from Mintel

Key Statistics
Take-home ice cream now worth £638m
Ongoing innovation and premium products gave a boost to the UK take-home ice cream market, recording growth of 5% to reach £638 million. In particular, an extension of chocolate confectionery brands helped to grow consumer interest, with new launches from the likes of Cadbury, Galaxy and Mars. Premium ice cream lines meanwhile showed growth of 10%, and are now worth £165 million.
Grocer Today, on Headlines from Mintel

Key Statistics
Across the world, children between the ages of eight and 12 control €1,880 billion of expenditure each year
Globally, children between the ages of eight and 12 control €1,880 billion (£1,300 billion) of expenditure each year. 80% of all brands purchased by parents are strongly influenced by their offspring, according to Project BRANDchild, the world's largest study of tweens (eight to 12-year olds) and their relationship with brands. The study reveals that the most unlikely product categories are controlled by tweens. Father's choice of tie or Mother's choice of dress is now firmly determined by their children. 10% of all children across the globe are totally familiar with luxury brands such as Gucci. Tweens have turned into one of the most powerful consumer groups in the world. The high divorce rate is one of the strongest factors. 50% of their parents are divorced and, as a result, tweens have taken on the role of equal decision-makers in the family unit.
Independent On Sunday, on Headlines from Mintel

Key Statistics
Sugar confectionery growing 3 times faster than chocolate
Sugar confectionery sales are growing three times faster than chocolate, according to The Haribo Gums, Jellies & Chews Report 2003. This success is being driven by increased marketing support and NPD, both of which have brought incremental sales and broadened the appeal of sugar confectionery. The sugar confectionery market is worth £993 million. Sales value of gums and jellies has increased by 55% over the last five years, compared with a 19% increase in total sugar confectionery sales.
Pro Wholesaler, on Headlines from Mintel

Key Statistics
Soft drinks market grew by 5% in 2002
The soft drinks market grew by 5% in 2002, to a value of £4 billion. Volume sales rose by 3%, according to the latest Category Report from Britvic Soft Drinks.
Marketing Week, on Headlines from Mintel

Key Statistics
Bottled water sales soar, as UK consumers stock up
Bottled water suppliers are having to work overtime, as UK consumers 'panic-buy' and stock up their homes in preparation for what they fear could be a terrorism attack. In particular, shoppers in London and the South-East have been buying much more bottled water than normal, with some supermarkets having been emptied of their stock.
The Times, on Headlines from Mintel

Key Statistics
The chewing gum market
An estimated 20 million people consume 935 million packs of chewing gum every year, costing councils some £150 million each year to remove unwanted gum from the streets. As a result, gum companies are being urged to develop less sticky and biodegradable gums, also to use marketing campaigns to educate consumers on disposing of gum properly.
Daily Mail, on Headlines from Mintel

Business & Economics
UK consumer confidence hits a 5-year low
Ongoing concerns regarding a war with Iraq have led UK consumer confidence to reach its lowest level in 5 years. Some 50% of people questioned on behalf of the European Commission believe that the UK's economic situation will become worst in the coming year. The fall in consumer confidence has also been pushed along by the decline in share prices.
BBC News Online, on Headlines from Mintel

Business & Economics
Britain's retail sales grew in February at the slowest pace since September 1999
Britain's retail sales grew in February 2003 at the slowest pace since September 1999 as consumer confidence was dented by worries about a possible war in Iraq and the slowing economy. Sales in stores open more than a year jumped 1.3% in February 2003 from a year ago, down from a rate of 4.1% the previous month.
International Herald Tribune, on Headlines from Mintel

Business & Economics
Marketing investment pays off, especially in hard times
Investing in brands, even in times of recession, is the best way for smaller food companies to ensure their survival once the economic situation improves.
Smaller brands that maintain ad spend during recessions fare better than leading brands, according to industry analysts Datamonitor. Datamonitor cites a study from the UK's Advertising Association which emphasises the need to maintain advertising spending even in recession times. The goal is to maintain the same intensity of advertising by using lower cost techniques such as guerrilla marketing tactics.
The Advertising Association claims that companies that cut advertising in a recession damage the future of the brand. A study found that, based on 26 years of sales data of premium grocery brands in the UK, smaller brands that maintained advertising spending during recessions fared better than leading brands.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1936

Business & Economics
UK economic growth of 2.2%
Latest data from the Office for National Statistics shows that the UK economy recorded growth of 2.2% during the last three months of 2002, compared with the same time in 2001. For the year as a whole, UK economic growth was put at 1.8%, revised upwards from 1.6%.
BBC News Online, on Headlines from Mintel

Business & Economics
UK shoppers are becoming increasingly reluctant to spend
February's retail sales were 0.1% lower than in January 2003, the second month in a row that sales have fallen, according to figures from the Office for National Statistics. The data also showed the annual rate of retail sales growth had dropped to 3.2% - the lowest level since July 1999. The figures raise concerns about the strength of consumer spending. The consumer boom of recent years has helped to offset weaknesses elsewhere in the economy such as the manufacturing sector.
BBC News Online, on Headlines from Mintel

International Developments
SWEDEN: Acquisitions drive V&S profits up
The Swedish state-owned drinks group, Vin & Sprit, saw its sales increase 35% in 2002 to SEK9,093m (US$1,085m), up from SEK6,725 a year earlier, in part thanks to acquisitions, which saw operating profits increase to SEK2,037m from SEK1,764m. The company said in a statement that the transition into the Maxxium distribution system had been finalised and that as a consequence exports were developing well.
Just-drinks.com
http://just-drinks.com/nd.asp?art=19188&dm=yes

International Developments
DENMARK/SWEDEN: Arla Foods to cut 150 jobs
Danish-Swedish dairy products group Arla Foods is to lay off 150 employees at its Christiansfeld, Denmark division in September 2003.
The job cuts follow the relocation of the distribution activities of Danish retail chain Coop Denmark to Arhus, central Denmark, from Arla Foods' Christiansfeld division.
Just-food.com
http://just-food.com/nd.asp?art=53465&dm=yes

International Developments
AUSTRALIA: Foster's to produce Diageo RTDs
With Diageo's ready-to-drink (RTD) spirit brands in the US facing an uncertain future in the light of proposed new regulations, the British-based spirits group has unveiled plans to boost sales of its RTD products in another key market, Australia. Diageo has teamed up with Carlton & United Breweries (CUB), the Australian brewing, leisure and spirits division of the Foster's Group, which will exclusively produce and distribute the company's full range of draught beer and draught pre-mix spirits products in Australia.
Under a new 10 year agreement, CUB will for the first time manage production and distribution of Diageo Australia's draught pre-mix spirits portfolio, which currently comprises the highly successful Bundaberg Rum and Cola and Johnnie Walker and Cola brands.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1962

International Developments
DENMARK: Denmark can set levels for additives
Denmark has been cleared to set stricter limits on levels of nitrates in food and drinks such as wine, snack bars and meat products than is allowed by the European Commission.
A European Union law passed in 1995 set EEC-wide limits on food additives. Denmark opposed the law on the basis that it failed to meet its health requirements for nitrites, nitrates and sulphites.
Then in1999 the EC ruled that Denmark could not retain these tougher standards.
However, the European Court of Justice overturned the Commission's decision and thrown out the rule which said a country must have new scientific evidence to do so.
The ECJ said due to the uncertainty in assessing public health risks "divergent assessments of those risks can legitimately be made".
Grocer.TodayAlerts
http://www.grocertoday.co.uk/article.asp?s=5&a=253637

International Developments
SCANDINAVIA: Arla will struggle to hit targets
Pressure on prices, unfavourable foreign exchange rates and a decline in German sales mean that Scandinavian dairy company Arla will have difficulty meeting its profit targets for 2003.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1893

Competitors & Supply Chain
A Belmay update on material news
As we enter 2003 the market for key naturals remains firm, for example Orange Oil, Geranium Oil, and Peppermint Oil.
The markets have not witnessed falls in prices as historically expected and there is unpredictability over prices for both naturals & aroma chemicals.
The increased threat of war in the Middle East plus a crisis in Venezuelan Oil has created uncertainty over oil prices and contributed to increases for petroleum based products.
Early indications suggest that prices of sugar are rising.
Contact Flvour House Ireland.

Competitors & Supply Chain
Lightbody signs cake deal with Sainsbury's
Family-run bakery business Lightbody Celebration Cakes has signed a deal with J Sainsbury to supply personalised cakes for customers at the UK supermarket chain.
The deal, which is worth up to £5m (US$7.9m) a year, will enable the Hamilton-based bakery to extend its new production facility and recruit up to 100 new staff.
The range of personalised cakes will be available in 15 of Sainsbury's top Scottish stores before the service is rolled out across the UK during 2003.
Just-food.com
http://just-food.com/nd.asp?art=53597&dm=yes

Competitors & Supply Chain
The best own labels in town
The Grocer names the own label suppliers that buyers rate as the best in the business.
Western Wines, Inter Link, Toms Confectionery, Robert Wiseman, Kerry Foods, RHM Frozen Foods, McVitie's, Robert McBride, Dawn Meats and Gerber have all emerged as the category champions in 2003 supplier survey.
Buyers from across the trade were asked to nominate their top suppliers based on a number of criteria including their account management skills, reliability, value for money and track record in developing new products.
The category champions all share a number of key attributes, according to the buyers we quizzed as part of our annual survey. But the ability to innovate is increasingly a benchmark by which own label suppliers succeed or fail. Flexibility and speed of response were also identified by buyers as core competencies of their top own-label suppliers.
Grocer.today.co.uk
http://www.grocertoday.co.uk/article.asp?s=1&a=253845

Retail & Company News
Ice-cream in flavour as Unilever set to invest £96m
A prototype ice-cream van - complete with a DJ - has been unveiled as part of a sales push by Unilever, maker of the Wall's, Magnum, Cornetto and Ben & Jerry's
consumer industries briefing, form FT.com
http://tm0.com/ft/sbct.cgi?s=61423343&i=745137&m=1&d=4085375

Retail & Company News
Phase One complete for Richmond
Richmond Ice Cream has completed the first phase of a £9m two-year investment programme at its lolly factory in Leeds. Several new products are being introduced this spring under the Nestlé and Treats brands, including the UK's first Milky Bar lolly, which will launch in Asda this month. A new £150,000 automatic carton machine has been installed, while electronic controls and additional automated equipment have also been acquired. This will significantly increase production speeds on the lines and enable 70,000 extra portions to be produced each week.
Food Industry News, March 2003

Retail & Company News
Vimto production to be outsourced
Nichols, the UK soft drink company which produces the Vimto brand, has announced a number of organisational changes as a result of a strategic review of its business. The changes are designed to improve operating efficiencies and reduce the company's cost base.
Stockpack, the contract packing operation currently based in Stockport, will be relocated to another production facility, that of Nichols Foods (a manufacturer and supplier to the vending, foodservice and retail market) at Haydock, with the subsequent closure of the Stockport site and the loss of 130 jobs, the company said.
Meanwhile, the production of Nichol's soft drink brands, including Vimto, Indigo and Sunkist, is to be outsourced, resulting in the closure of the Golborne factory with the loss of around 60 jobs.
Nichols will continue to retain direct control of the sales and distribution activities relating to all of its soft drinks brands.
BeverageDaily News Headline
http://www.beveragedaily.com/news/news.asp?id=451

Retail & Company News
Macaw - cracking the cost effectiveness code
Established in 1990, with the vision of creating the most cost effective soft drinks production plant in the UK, today Macaw is the largest privately owned manufacturer in the country - according to Softdrinksworld, in a 5-page article based on interviews with Andrew Cawthray (CEO) and Marnie Mumby (Sales and Marketing Director).
Softdrinksworld, February-March 2003

Retail & Company News
Purity invests in new PET bottling line for Juice Burst
Purity Soft Drinks of the UK has invested £500,000 in a new ultra-clean electronic PET bottling plant at its base in the Staffordshire town of Wednesbury. The plant, said to be the most advanced of its kind in the country, is being used to produce Purity's new Juice Burst line, which comes in seven flavours.
Softdrinksworld, February-March 2003

Retail & Company News
Organic partnership for Yoplait Dairy Crest
Yoplait Dairy Crest will work with Horizon Organic Holdings on organic yoghurts for the UK market.
Foodandrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1899

Retail & Company News
Profit up 16% at Danske (Denmark)
Danish spirits company, De Danske Spritfabrikker, which was acquired by the Swedish spirits group, Vin & Sprit in 2000, has reported profit on ordinary activities for 2002 of DKr88.3m (US$12.7m/€11.9m), up 15.6% from DKr76.4m (US$11m/€10.3m) in 2001.
Turnover at the company, which produces the Aalborg, Gammel Dansk, Danzka vodka and Heering cherry liqueur brands, rose by 15.8% from DKr916m (US$131.3m/€123.5m) to DKr1.061 billion (US$152.1m/€143m).
Justdrinks.com
http://just-drinks.com/nd.asp?art=19281&dm=yes

Retail & Company News
Barr advances on all fronts
With both its carbonated and non-carbonated brands performing well during the year, British soft drinks group AG Barr has reported a 3 per cent increase in sales for 2002.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1960

Retail & Company News
Nichols satisfied with results in 'challenging' year
Nichols, the UK group behind Vimto soft drinks, has reported a slight rise in turnover for 2002, a year of change for the company.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1961

Retail & Company News
Express Dairies and Arla merge
Express Dairies and the UK arm of Arla Foods are to merge. Under the deal, Arla will hold a 51% majority share of the merged group, while Express Dairies will hold 49%. The new enlarged group will trade under the name Arla Foods UK plc.
Arla is the fourth largest liquid milk supplier in the UK and distributes products such as Lurpak and Anchor butter through its joint venture with global dairy group Fonterra.
Grocer.TodayAlerts
http://www.grocertoday.co.uk/article.asp?s=1&a=253835

Retail & Company News
Brands the key for Dairy Crest
Dairy Crest believes the strong performance of its leading brands will help maintain underlying profits in line with expectations, it said yesterday. The chilled dairy foods company, which owns the Clover, Cathedral City, Frijj and Yoplait brands, said the milk business had improved in the second half despite "challenging trading conditions".
consumer industries briefing, from FT.com
http://tm0.com/ft/sbct.cgi?s=61423343&i=756201&m=1&d=4177250

Retail & Company News
Back to basics approach pays off for Campina
Focusing on improving quality rather than lifting sales has paid off for Campina, which has seen a solid improvement in sales for its core brands despite volatile international dairy markets.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1941

Retail & Company News
Britvic targeted by venture capital firm
CVC, the venture capital firm, is planning a £500 million approach for soft drinks producer Britvic, currently owned by Six Continents. Bids for Britvic are also being considered by food group RHM, plus another venture capitalist, Hicks Muse, Tate & Furst.
Grocer Today, on Headlines from Mintel

Retail & Company News
Inter Link Foods, a supermarket supplier of cakes, et al
Since it joined the AIM with two factories and sales of £8 million, Inter Link Foods has gone on to be a major supplier for most UK supermarkets of mini-rolls, cherry bakewells and cakes, particularly the high volume market. Earlier in 2003, it acquired the Soreen brand from Warburtons for £8.4 million. Soreen, which is the third-largest cakes brand in the UK, brings additional sales of £11 million pa and the scope to boost sales without investing in additional plant. There are also plans to push the key product Soreen, with the launch of a new cereal bar, Go.
Investors Chronicle, on Headlines from Mintel

Products & Brands
Chocolate 'snap' a sensory sensation!
Swiss confectionery giant Nestlé claims to have spent millions of Pounds ensuring that its chocolate makes the right sound when it is broken. Market research for the company revealed that the sound of a bar being broken was a significant factor in consumer demand. The satisfying snap is part of the sensory sensation of premium chocolate. It has been suggested that the snap can act as a relaxant and is a sign of true quality.
The Times, on Headlines from Mintel

Products & Brands
UK launch of Tropical Rhythms range of exotic drinks
The UK launch of Tropical Rhythms range of exotic fruit and vegetable drinks, which is Jamaica's biggest selling juice based drink, has been made by Grace Kennedy (UK). It is a range of 5 exotic fruit and vegetable drinks. This drink has proved to be successful in test outlets that serve the Caribbean communities. The drinks are: Pineapple Ginger, Mango Carrot, Passion Carrot, Guava Carrot and Fruit Punch. The product comes in glass bottles in packs of 12 to a case. Shelf life is 12 months.
Checkout, on Headlines from Mintel

Products & Brands
New flavours for Arla yoghurt drink
Arla Foods has launched two new flavours for its Yoggi Yalla yoghurt drink, the leader of the fast-growing Swedish market.
The two new varieties are raspberry-pomegranate-guarana and mango-kombucha. Mango-kombucha combines the sweet taste of mango with the slightly bitter taste of kombucha, a type of tea which originally comes from China and Russia. Raspberry-pomegranate-guarana is in the same bitter-sweet category, with the guarana giving an added energy boost.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=6543

Products & Brands
Ocean Spray unveils new juice drinks
Following the success of Cranberry Classic Light, Ocean Spray is launching 3 new drinks: Cranberry & Mango, Cranberry and Raspberry and Cranberry & Blackcurrant, seeking to win over people who consume the fruit-based products on a regular basis. A unique selling point will be that the new additions contain half the calories of standard drinks. Ocean Spray believes there is a huge potential for low-sugar drinks.
Grocer Today, on Headlines from Mintel

Products & Brands
Ocean Spray juice sale considered
It is reported that new board members of Ocean Spray, the US cranberry juice producer, have shown an interest in selling the brand, with an $800m offer for the company said to have been made by rival company Northland Cranberries.
Grocer Today, on Headlines from Mintel

Products & Brands
'Bitter' twist in Spanish cola wars
Coca-Cola will launch a new brand in the Spanish market - Mare Rosso, a bitter drink destined for the aperitif market. The aim is to steal market share from arch rival PepsiCo.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1805

Products & Brands
Halewood International introducing new energy shots product
Halewood International is launching a new energy shots product. Red Square Hot Shot is a blend of caffeine and wolfberry with 20% ABV Red Square vodka.
Morning Advertiser, on Headlines from Mintel

Products & Brands
Lucozade Sport targets female athletes
With the launch of Hydro Active, Lucozade Sport aims to win sales from female athletes. On sale from May 2003, the new drink claims to provide superior 'hydration properties', containing less carbohydrates than other drinks, appealing to women adopting a low-calorie lifestyle.
Marketing, on Headlines from Mintel

Products & Brands
Tropical Reebok Water
Clearly Canadian is pleased to announce a new addition to our line-up of award winning, premium Alternative Beverages. Working closely with Reebok International Ltd., a leader in the North American fitness industry, Clearly Canadian has produced the newest in drink concepts. Reebok Fitness Water is an enhanced water beverage made with essential vitamins, minerals and electrolytes. Reebok Fitness Water is more refreshing and better tasting than conventional bottled waters and less sweet and has fewer calories than typical sport drinks.
Fitness Water comes in 4 flavours: Berry; Citrus; Tropical; and Natural
BevNET.com, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e63636048&e=6327

Products & Brands
Aloe Splash - Now With 100% Splenda
A "Premium beverage with the legendary benefits of Aloe Vera", Aloe Splash is a line of fruit flavoured beverages with 10% Aloe Vera juice. In addition, the product is sweetened with 100% Sucralose, which creates a 0 calorie formula with the taste of a sugar sweetened product. It is packaged in 20oz plastic sports bottles.
Aloe Splash comes in 2 flavours: Kiwi, Lemon & Lime; Mountain Berry; Orange Mango; Pineapple Pear; and Kiwi Strawberry
BevNET.com, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e63557743&e=6327

Products & Brands
Absolut goes Vanilia (USA)
The Absolut Spirits company has extended its Absolut range with the launch of Absolut Vanilia Stateside. The new tipple - available from early March - with its taste of vanilla enhanced with savoury butterscotch and dark chocolate is said to be ideal as a mixer.
Other flavours in the range include Citron, Mandarin, Kurant and Peppar.
Grocertoday.co.uk
http://www.grocertoday.co.uk/article.asp?s=5&a=253242

Products & Brands
Umbro to launch isotonic sports drink
Sportswear brand Umbro has agreed a licensing deal with Calypso Soft Drinks to launch an isotonic sports drink, part of its Umbro Pro-Performance branded drinks and confectionery arm.
Marketing, on Headlines from Marketing

Products & Brand
Unilever considering launching a Slim Fast ice cream in the UK
Unilever is considering launching a Slim-Fast ice cream in the UK. Unilever launched the Slim-Fast ice cream in the US in 2002. It is similar to its Wall's Magnum brand, but is lower in calories and carries the Slim-Fast brand.
Marketing Week, on Headlines from Mintel

Products & Brands
Vanilla Coke set for April 2003 UK launch
Coca-Cola is set to launch its Vanilla flavoured cola into the UK during April 2003. The new drink will come in both standard and Diet formats, sold in 330ml cans and 500ml bottles, and promoted via a £5m TV advertising push.
Grocer Today, on Headlines from Mintel

Products & Brands
Vanilla Pepsi drink being considered
US soft drinks giant PepsiCo is considering the launch of a vanilla-flavoured cola, after the successful launch of a similar product by its main rival Coca-Cola in 2002. A Summer 2003 launch is being discussed, with the drink being referred to as 'Vanilla Pepsi'.
Grocer Today, on Headlines from Mintel

Products & Brands
Carpe Diem launching reformulated variants of its core range
Carpe Diem, which produces functional 'wellbeing' drinks, is launching reformulated variants of its core range packaged in 500ml plastic bottles, under the name Carpe Diem Refresh.
Marketing Week, on Headlines from Mintel

Products & Brands
Del Monte to launch its first non-orange based pure juice blends
Del Monte is introducing its first non-orange based pure juice blends, accompanied by a £1.5m press and poster campaign and packaging redesign.
Marketing Week, on Headlines from Mintel

Products & Brands
Thorntons to launch ice cream tubs
Chocolate retailer Thorntons is launching luxury 500ml tubs of ice cream into the multiple grocery arena. Targeting people who usually buy Häagen-Dazs or Ben & Jerry's, there are 4 flavours on offer, comprising Vanilla Truffle, Chocolate Seville, Toffee Brazil and Almond Praline, with an RSP of £3.69. Thorntons is looking to boost interest in its brand name through a push into biscuits, cakes and desserts.
Grocer Today, on Headlines from Mintel

Products & Brands
Balancing price and quality
Reflecting continuing concerns over the direction of the US economy, consumers are twice as likely to consider price as a reason for purchasing a brand name product as they were a year ago, according to a survey released last week by the Grocery Manufacturers of America.
According to the report, 'quality' wins hands down as the number one reason people purchase their favourite brands, cited by 26 per cent of respondents, closely followed by the 'familiarity factor' (a brand they already use), at 23 per cent. But our consumer is a fickle one, with 28 per cent listing 'quality' as the top reason and 35 per cent citing familiarity when the same survey was carried out last year in April.
However, 'favourites' and 'price' are clearly intimately linked with 11 per cent of respondents listing 'it is inexpensive' as the top reason for purchasing their favourite brand, compared to six per cent last year.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1886

Products & Brands
Swedish drinks company launches a new flavoured brand into the UK flavoured vodka sector
Swedish drinks company Facile & Co. is launching a new flavoured brand into the UK flavoured vodka sector. Cariel Vanilla Vodka, 37.5% ABV, is being aimed primarily at the style bar market.
Publican, on Headlines from Mintel

Products & Brands
Sales of Bacardi Breezer falling
Sales of Bacardi Breezer, the alcopop drink, have been falling. Sales of Bacardi Breezer, a pre-mixed cocktail of Bacardi and fruit juice, are going backwards, while sales of flavoured alcoholic beverages (FABs) as a sector are increasing by both volume and value. Figures up to January 2003 reveal that pre-mixed rivals WKD and Smirnoff Ice are increasing sales. WKD is now challenging Bacardi Breezer for the second spot, with Smirnoff out in front. Bacardi Breezer's advertising campaign staring Tom Cat, a dancing feline, which was targeted at women appears to have alienated men. Meanwhile, WKD and Smirnoff Ice advertising appeal more to men. Women tend to be more fickle when it comes to drinks choice. Bacardi Breezer has also been affected by look-alikes. The government has not helped the alcopops market either. The Budget changed the way FABs were rated. The affect was to increase the price of a bottle by about 12p.
Mail on Sunday, on Headlines from Mintel

Products & Brands
Arla produces space-age chocolate bar
A partnership between Sweden's Arla Foods and the US space administration, NASA, has resulted in the creation of a chocolate bar.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=7274

Products & Brands
Tequila influenced beer to launch in The Netherlands
Heineken is to launch 'Desperado' into The Netherlands, following its popularity in France. Desperado is a beer infused with tequila.
Campaign, on Headlines from Mintel

Products & Brands
Hall & Woodhouse introducing a new seasonal ale
Brewer Hall & Woodhouse is launching a new seasonal ale in May to add to its range of Badger beers. Fursty Ferret is a 4.4% ABV ale described as a well-balanced, crisp, premium ale with a malty palate and noticeable floral hop and toffee aroma.
Morning Advertiser, on Headlines from Mintel

Products & Brands
Iceland to launch a non-melting ice lolly
UK frozen food chain Iceland is launching what it claims to be the world's first non-dripping ice lolly. Available in strawberry flavour, the lolly is said not to melt, drip or dissolve but instead takes the form of a fruit jelly when defrosting, thus maintaining its shape. The creation came about after children said to Iceland they hated the sticky mess that sometimes occurs when enjoying an ice lolly. The Strawberry Jelly Lollies will be sold in packs of ten for £1.29.
Ananova, on Headlines from Mintel

Products & Brands
Mineral water for children
A bottled mineral water for children has been launched in France, under the Saint Amand brand. Incorporating a valved sports closure, the water is sold in 33cl PET bottles.
Packaging Magazine, on Headlines from Mintel

Products & Brands
Bread to boost your brain cells
Bread is the latest staple food to be given the 'functional food' makeover. Bakers Warburtons and vitamin manufacturer Nu-Mega Ingredients, have developed a fortified white sliced loaf containing folic acid, calcium, iron and fish oils. The Good Health Loaf For Women will appear on supermarket shelves in March.
Daily Mail, on Headlines from Mintel

Products & Brands
Premium vodkas for sophisticated adults (USA)
US spirits producer Skyy has added to its premium vodka range with the introduction of spiced, berry and vanilla flavours. Due on US shelves from April 2003, they are targeted at 'sophisticated adults'.
Grocer Today, o Headlines from Mintel

Products & Brands
GBL fights Bacardi for 'Coast' trademark
GBL International has attempted to steal Bacardi-Martini's thunder by brewing up a storm in the fledgling flavoured sparkling wine sector.
Steve Perez, managing director of GBL International, has attempted to scupper the possible launch of Coomira Coast, a pre-mixed New World chardonnay fruit spritzer from Bacardi-Martini, by accusing the company of breach of trademark.
GBL has been in talks with lawyers and trademark agents and is considering legal action after its sales force spotted the new drink.
GBL claims to have registered the name "VK Coast," a new still version of its premium packaged spirit, which was in development back in November 2002 and according to Mr Perez, Bacardi registered the name Coomira Coast eight days later.
Thepublican.com
http://www.thepublican.com/item/9020/11/5d40E43/345

Products & Brands
Campari launches Cinzano RTD (South Africa)
Campari, through a local affiliate in South Africa, has launched its third RTD offering, Cinzano Five. This South African launch is the third RTD launched from the group in the past 15 months, after the vodka-based Skyy Blue into the USA and the Campari Mixx in Italy and Switzerland. The Cinzano Five is a 5.4% abv spirit cooler, using lemon, pineapple and orange flavours in a 275cl bottle.
Just-drinks.com
http://just-drinks.com/n_d.asp?art=19293

Products & Brands
Arla produces space-age yoghurt bar
A partnership between Sweden's Arla Foods and the US space administration, NASA, has resulted in the creation of a nutritional yoghurt bar.
Swedish food company Arla has been working with scientists at the US Space Agency, NASA, over the last 18 months to look at ways of improving the nutritional properties of food eaten by astronauts during space missions. The first fruits of that partnership are about to be launched, and include both yoghurt and chocolate bars which have wider potential uses than simply keeping spacemen well-nourished.
The product contains proteins from Arla Foods Ingredients and has been developed in collaboration with the Danish chocolate manufacturer, Toms.
Dairyreporter.com
http://www.dairyreporter.com/news/news.asp?id=422

Ingredients & Innovation
Natural flavours booming
Newly discovered ingredients and processes are featuring more and more prominently in the production of more nutritious and better balanced 'designer foods'.
A new report about to be released in the US on the food ingredients industry shows that natural colours and flavours have been growing faster than synthetic ones. In 2002, the total US market for food additives reached nearly €5 billion and is expected to rise at an AAGR (average annual growth rate) of 3.1 per cent to nearly €6.0 billion in 2007.
Flavour enhancers, primarily MSG, but increasingly newer and less controversial products like ribonucleotides, have also seen strong growth. According to the report, flavourings and flavour enhancers are the largest of all classes of additives, almost $1.29 billion in 2002, growing to $1.51 billion in 2007.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=6579

Ingredients & Innovation
Majors show new zest for lemon-lime (USA)
After several years of lacklustre performance and inactivity, the lemon-lime sector of the US carbonated soft drinks market has been transformed in recent months by a flurry of activity, which has made it one of the sectors to watch in the coming 12 months.
Just-drinks.com
http://just-drinks.com/features_detail.asp?art=754

Ingredients & Innovation
Country of origin - the debate continues (USA)
New legislation to tighten the 'origin of labelling' for food products in the US continues to incite reactions with a coalition of consumer and agricultural organisations. The Americans for Country of Origin Labeling (ACOL) alliance maintains that the agency's guidelines go beyond statutory authority to implement mandatory labelling, granted by Congress in the 2002 farm bill, and fail to consider existing industry practices. As a result, says ACOL, USDA's price tag of nearly $2 billion for labelling implementation is grossly inflated.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1863

Ingredients & Innovation
On-the-go sweet packaging
Huhtamaki and Karkkikatu, a subsidiary of Leaf concentrating on pick-and-mix candy, have together developed a new concept for selling sweets that is said to make candy-on-the-go more convenient.
Called Fun Cups, Huhtamaki supplies two different sized paper cups as well as lids to Karkkikatu. Because the cups are pre-bar coded, there is no need for weighing. The retail customers can just fill the cup according to their tastes and snap on the transparent lid to keep the sweets safely inside. Cups are then scanned at check out like any other item.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1864

Ingredients & Innovation
Chocolate to use 5% cocoa butter equivalents
Karlsham, 1 of the world's biggest speciality fats makers, predicts chocolate makers will use alternatives to cocoa butter in order to cut costs. Meanwhile the EU has permitted the use of up to 5% cocoa butter equivalents in products marketed as chocolate as from August 2003.
The Times, on Headlines from Mintel

Ingredients & Innovation
Further research backs potent role of curcumin
Curcumin, found in the Indian spice turmeric, may be able to slow down and stop the blood cancer multiple myeloma, suggest researchers, confirming previous health effects linked to the spice.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=6623

Ingredients & Innovation
Changing demand for sugar and sweeteners
Demand for low and light products - such as soft drinks - has prompted changes in the use of sugar and sweeteners, claims a new report focused on the US market.
Food and beverage processors are reconsidering the additives they use in their products and what alterations need to be made to meet consumer demand for something sweet that is low in calories, or is non-carbohydrate.
An upcoming report from market analysts Business Communications predicts that the US market for sugars and sweeteners - valued at €8.4 billion ($9.3bn) in 2002 - will increase at an average annual growth rate (AAGR) of 2.3 per cent and is forecast to reach $10.4 billion by 2007.
Beveragedaily.com
http://www.beveragedaily.com/news/news.asp?id=459

Ingredients & Innovation
The wonders of cranberry juice
Scientists have discovered that two or three servings of cranberry juice each day can boost the blood chemicals that fight hypertension and can reduce heart disease by as much as 40%.
The Times, on Headlines from Mintel

Ingredients & Innovation
'Viagrapops' rumours a smokescreen for launch of Roxoff
If the recent sensationalist national newspaper headlines are to be believed, these new passion potions, dubbed "Viagrapops", are set to unweave the nation's social fabric, produce a "generation of randy super beings" and sell more than 120million bottles in the next year.
These products, which do not contain any Viagra, Pfizer's anti-impotence drug, mix alcohol and herbal infusions that claim to have an aphrodisiac effect.
Thepublican.com
http://www.thepublican.com/item/9104/11/5d40E43/345

Ingredients & Innovation
'Sudden death' threatens Brazil's orange trees (Brazil)
Almost 85% of the world's largest orange-growing area will have to be replanted over the next six years because the trees are susceptible to "citrus sudden death" disease, according to an industry leader.
The orchards in the Brazilian state of Sao Paulo produce around 90% of Brazil's oranges, while Brazil itself is the world's number one orange grower. The country exports its oranges in the form of frozen concentrated orange juice and controls around 80% of the world market in that sector.
just-food.com
http://just-food.com/nd.asp?art=53588&dm=yes

Ingredients & Innovation
Hershey: sugar-free chocolate
Hershey Foods has announced the launch of sugar-free chocolate.
Hershey is launching new, sugar-free chocolate. It may meet its goal of capturing a significant portion of the diabetics market, but converting other consumers might prove to be a harder task. Since self-treating and taste are key chocolate purchasing drivers, Hershey must give the new products strong marketing support.
Food.Digest, from Datamonitor

Industry Initiatives
The nose of the matter
One of our most powerful senses - that of smell - remains enigmatic. Of the five basic senses, the sense of smell is the least understood, up until now. Scientists in the US claim this week to have sniffed out potential clues to how olfactory receptors in the nose detect odours.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=6525

Industry Initiatives
WHO takes on soft drinks industry
The World Health Organisation has launched a major assault on the food industry with a scientific report blaming sugar in soft drinks and television advertising aimed at children - as well as fat intake and sedentary lifestyles - for a dangerous global rise in obesity.
Intensive lobbying by the food and drink industry, and by the US government on its behalf, seems to have had little impact on the WHO's determination to turn around the obesity epidemic.
The report, by a distinguished international group of independent scientists headed by Ricardo Uauy, professor of public health nutrition at the London School of Hygiene and Tropical Medicine, says that sugar should account for no more than 10% of energy consumption.
The industry has preferred the older guideline from the National Academy of Sciences in the US of 25%, and has consistently argued that there is inadequate scientific evidence to prove that eating more sugary food leads to weight gain.
However, the report not only blames sugar but points the finger at sweetened soft drinks.
consumer industries briefing, from FT.com
http://tm0.com/ft/sbct.cgi?s=61423343&i=741879&m=1&d=4051669

Industry Initiatives
Fortification - proposal moves forward
BSDA has sent its comments to the FSA on the Commission's draft proposal for a Regulation on the addition of vitamins, minerals and other substances to foodstuffs. Overall, BSDA supports the draft proposal as it would provide general permission for fortification and recognises that there are no "good" or bad" foods only "good" or "bad" diets. At the same time, maxima would be fixed for addition of authorised vitamins and minerals and full nutrition labelling would be compulsory.
BSDA continues to emphasise the benefits of fortifying foods which people actually eat and has submitted some detailed comments, particularly to ensure that the proposal is compatible with additives legislation and that nutrition labelling is meaningful for soft drinks. As bottled waters and fruit juices are subject to separate legislation, BSDA will pursue these aspects in parallel.
BSDA has objected strongly to the proposed use of the Regulation to establish caffeine and quinine as restricted substances and to fix maximum use levels in soft drinks. This discriminates against soft drinks and advice to consumers on caffeine intake, where necessary, should relate to all sources.
Drinks Focus, from the BSDA March 2003

Industry Initiatives
Food manufacturers flooding the market with adult-pleasing convenience and child-pleasing stock
Food makers are flooding the market with adult-pleasing convenience and child-pleasing foods. Entrées, side dishes and condiments are being rushed to market in an effort to accommodate children accustomed to foraging at the food court of the local mall and parents who simply want some peace at the dinner table. Ragu recently introduced Ragu Express, a line of pasta dishes in single-serving containers that children can prepare on their own using a microwave. ConAgra Foods has updated Kid Cuisine, its line of TV dinners for children. The Sandwich Builder, for example, is a meal featuring a hamburger patty shaped like a house. Jelly Bean Jelly from Robert Rothschild Farm is dinner roll spreads in flavours like banana and watermelon. ConAgra has also introduced Parkay Fun Squeeze, hot pink and electric blue margarine. A line of neon-coloured salad dressings with names like Purple Pizzazzz has been unveiled by Eastern Foods Inc. Ore-Ida is hoping to woo children with its new line of blue fries. The new foods reflect the strains developing around the dinner table. Families have less time together, they do not want to risk not having a pleasant experience by hassling over food choices. Children have long helped to decide what foods parents put into shopping baskets. Children influence $43bn- $50bn of the $133 billion that is spent on food and beverages for them each year, according to Mintel Consumer Intelligence.
International Herald Tribune, on Headlines from Mintel

Industry Initiatives
The pet food market has seen a mini-revolution of innovative new products
The pet food market has seen a mini-revolution of innovative new products. In 2002, when a good many fmcg markets suffered, the pet food market grew in the UK thanks to the success of single-serve meals and more premium offerings. In recent years, pet food sales have consistently increased. This can be accounted for by increases in the pet population, a growing use of pet food as part of animals' overall diet and the benefits and value for money that pet foods offer.
Convenience Store, on Headlines from Mintel

Industry Initiatives
EFSA: the right flavour?
The executive director of the European Food Safety Authority gave the green light for the Danish Veterinary and Food Administration to evaluate flavours for an EU-wide initiative.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=1930

Industry Initiatives
Winter barbecues increasingly enjoyed by Britons
The thought of barbecues as a Summer-only event have been dispelled, well at least in the UK, with a new survey discovering that thousands of people in Britain have staged Winter barbecues. According to research by Tesco, nearly 40% of young Britons enjoyed two barbecues during the Winter. As temperatures begin to rise gradually in the UK in 2003, sales of kebabs, steaks and disposable barbecues are increasing. The trend towards such cooking has been influenced by 'the relaxed Australian lifestyle', claimed the survey.
Evening Standard, on Headlines from Mintel

Industry Initiatives
Once-niche sugar-free products are now gaining attention from mainstream marketers
Once-niche, sugar-free products are now gaining attention from mainstream marketers. Hershey Foods Corp., Coca-Cola Co. and Kellogg Co. are adapting their products and advertising to an increasingly overweight America. Hershey alone is spending $15 million in advertising for its new line of sugar-free chocolates. Government estimates show 17 million Americans are currently diagnosed with diabetes; another 16 million have high blood-sugar levels. Hershey plans to launch a major advertising campaign for its new lactitol sugar substitute-based versions of its Reese's peanut butter cup miniatures and its Hershey's Chocolate, Chocolate with Almonds and Dark Chocolate candy bars in May. The size of the sugar-free candy market (excluding gums and mints) is estimated to be $100 million. Kellogg Co. is putting its weight behind its Murray Sugar Free line.
Advertising Age, on Headlines from Mintel

Industry Initiatives
New machine provides an alternative to rectangular-shaped beverage cartons
A new packaging system by the name of Combishape believes that it will soon be able to produce more innovative-shaped beverage cartons, away from the traditional rectangular ones that are commonplace on supermarket shelves. It has been suggested that oval, moon-shaped, triangular and pentagonal cartons could soon be appearing in stores.
Packaging Magazine, 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.