Flavours Newsletter
May 2003 - What’s new in Flavours

Ingredients & Innovation
Sweetener cut possible
The European Parliament has told the European Commission to tighten up its proposed restrictions on the use of the artificial sweeteners cylcamates in soft drinks, because of its concerns about their safety.
The parliament also approved authorisation of the use of sucralose and aspartame-acesulfame salt but wanted re-examination of aspartame and Stevia and proposals for improved labelling of products with aspartame.
Food Manufacture, May 2003

Ingredients & Innovation
Warning over soft drinks sweetener
Parents are being warned not to give young children more than three beakers (540ml) of diluted soft drinks that contain the sweetener cyclamate a day.
The new advice, issued by the Food Standards Agency (FSA), is a precautionary measure to ensure children aged between one-and-a-half and four-and-a-half do not exceed the Acceptable Daily Intake (ADI) - a safe level recommended by experts, which can be consumed daily over a lifetime without any risk to health.
The guidance follows an FSA survey of soft drinks that found children consume three times as many dilutable soft drinks on a daily basis than any other type of soft drinks containing additives, such as fizzy drinks.
The agency is also recommending that parents dilute soft drinks containing cyclamate, also known as E952, more so for children than they would for adults.
The ADI for cyclamate is based on studies which showed slight testicular damage in rats. However, experts stress that studies have demonstrated no similar effects in humans.
Drinks containing cyclamate are required by law to be labelled "with sweetener" or "with sugar and sweeteners" and to contain the words cyclamate, cyclamic acid or E952 in the list of ingredients. However, the sweetener is only found in a small number of brands in the UK.
Dilutable drinks containing aspartame, acesulphame K or saccharin are unaffected by the new FSA advice.
Health-News.co.uk, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e70316393&e=6327

Ingredients & Innovation
Grape glut pushes down prices of some fine wines (USA)
AP via New Jersey Online, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e70115187&e=6327

Ingredients & Innovation
Artificially smoke-flavoured foods set to be outlawed
Artificially smoke-flavoured foods, such as smoky bacon crisps, are set to be outlawed under regulations being drafted by the European parliament.
The chemical producing the distinctive taste, extracted from condensed woodsmoke, may contain cancer-causing agents.
The measures, already passed by the European parliament's environment committee, will have a disproportionately severe impact in Britain, where people eat more snacks than any other European country.
Sunday Times, on Headlines from Mintel

Ingredients & Innovation
Herbs hold potent antioxidants
Scientists from Norway and Japan report that adding a handful of herbs to our daily dishes could contribute significantly to the body's intake of plant antioxidants, being a better source than fruits and vegetables.
The scientists, from the Norwegian Crop Research Institute, Oslo University and the Akita University School of Medicine in Japan, assessed the contribution of culinary and medicinal herbs to the total intake of dietary antioxidants. They have confirmed several culinary and medicinal herbs as important sources of dietary antioxidants. But they say their results demonstrate that there is more than a 1000-fold difference among antioxidant concentrations.
Of the dried culinary herbs tested, oregano, sage, peppermint, garden thyme, lemon balm, clove, allspice and cinnamon as well as the Chinese medicinal herbs Cinnamomi cortex and Scutellariae radix all contained very high concentrations of antioxidants (i.e. greater than 75 mmol/100 g).

Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=7581

Ingredients & Innovation
Herbal teas causing tooth erosion
Herbal teas may not be such a healthy alternative after all. Researchers at the University of Bristol Dental School in the UK reveal the damaging effects they may have on our teeth.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=6951

Ingredients & Innovation
Price hike for xanthan gum
RhodiaFood, part of French speciality chemicals company Rhodia, recently announced that it would hike up the price of its Rhodigel food grade xanthan gum by 10 per cent.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=7598

Ingredients & Innovation
Research supports yoghurt health claims
Latest research into the beneficial impact of peptides in fermented milk might have on lowering consumer's blood pressure brings good news for manufacturers of drinking yoghurts.
Contributing to a body of mounting evidence, scientists at the Danish Centre for Advanced Food Studies in the Øresund Region of Europe have found that certain peptides in fermented milk products have a lowering effect on the blood pressure.
Milk and dairy produce contain peptides with a variety of different functional properties. Certain proteins can be degraded into peptides - amino acids - with blood pressure lowering effect. According to the researchers, the peptides, liberated at the fermentation stage, hinder an enzyme in catalysing the formation of Angiotensin II which causes the blood vessels to contract, and blood pressure to rise.
DairyReporter News Headlines
http://www.dairyreporter.com/news/news.asp?id=474

Ingredients & Innovation
Odd flavours and colours driving food innovation
Among the new products highlighted by Mintel in this month's look at the Global New Products Database are lettuce cake and a controversial opium energy drink.
Beer & vodka blends continue
An interesting and continuing development in the beer market is the emergence of 'spirit beers'. These are basically beers blended with a touch of spirit such as whisky, vodka or even tequila.
Opium energy drink
While beer and vodka mixes may be perfectly acceptable to Australian consumers, one product which was less well accepted was a controversial energy drink labelled as 'energy with opium'. The product was introduced by a company called Naughty Boy and comprised a citrus flavoured energy drink with crushed poppy seeds.
White tea takes centre stage
Demand for green tea in the UK seems to have calmed down, with the latest variant of the perennial British favourite being the far rarer white tea. Made only from the first spring shoots and with the highest antioxidant content of any tea, white tea is expected to take over where green tea left off. New white tea varieties have recently been introduced in the UK by speciality tea companies such as Dragonfly Teas and Clipper Tea.
Coffee with extra energy
Some people drink coffee when they want a kick, others perhaps prefer to get their energy boost from Red Bull. Now consumers in the Philippines can get a mixture of both.
Readily available throughout Asia, a new sub-brand was recently launched in the Philippines: Baroko, a canned ready-to-drink coffee drink. Made with a concentrated coffee blend and added milk, the drink maintains Red Bull's energy credentials, although the energy boost comes from the more traditional caffeine rather than Red Bull's amino acid booster taureine.
From beverage to confectionery
Both coffee and tea area also being given a new lease of life by their expansion into the confectionery sector. Coffee flavoured sweets are being given an even more adult positioning in Belgium through the use of packaging.
'Lettuce' eat cake
In Asia, certain ingredients have somewhat unusual applications (to western consumers at least). For example, in ice cream we have seen the use of sticky rice, beans and even sweet potato - ingredients most westerners would not associate with ice cream. Now, a cake has appeared in Singapore from Agrotech with butterhead lettuce. Called Choy Cake it is also made with sponge cake, whipped cream, carrots and cherry tomatoes.
Mintel's GNPD, on foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=2260

Ingredients & Innovation
The rise of speciality breads
Premium speciality bread is still a relatively new segment in the bakery market.
Consumers are naturally trading up and a greater demand for quality and taste means that the markets for premium, speciality and organic breads are all set to show continued growth.
The development of different breads has become more popular as the British consumer has become more widely travelled and cosmopolitan.
The growing popularity of speciality breads has also resulted in an extension of selections offered by in-store bakeries.
The speciality sector of the in-store bakery market is growing year-on-year at 12.5%.
On the future for baked-off products and potential trends, flavoured breads are expected to become more popular, both as a sandwich carrier and as a meal accompaniment.
Frozen & Chilled Foods, on Headlines from Mintel

Ingredients & Innovation
Vietnam increases cocoa production
Vietnam is halfway through its target of planting 500 hectares of cocoa this year. The country, famed for its quality coffee production, wants to become less reliant on one single cash crop. The cocoa planting initiative is part of the country's attempts to diversify its crops. Vietnam, famed for its quality coffee production, wants to become less reliant on the commodity. The country plans to have 10,000 hectares of cocoa plantation by 2008.
As in other parts of the developing world, coffee farmers in Vietnam have continually suffered as the price of coffee has continued to decline. Coffee prices fell to a 30-year low in 2002.
Some experts believe that overproduction by Vietnam, which emerged in the 1990s as the world's second biggest coffee producer after Brazil, has been partly to blame for creating this situation.
Confectionerynews.com
http://www.confectionerynews.com/news/news.asp?id=202

Ingredients & Innovation
Strong compliance in colour labelling
The vast majority of drinks manufacturers are sticking to the rules on artificial colourings, finds a new survey commissioned by the UK Food Standards Agency (FSA). Although a few discrepancies were unearthed.
Out of 201 retail samples of soft drinks, four contained levels of either E110, otherwise known as Sunset Yellow FCF and E122 - carmoisine - in excess of the maximum permitted limit of 50 mg/l (milligrams per litre) in non-alcoholic flavoured drinks. Although over the legal limit, they are not considered to be of concern to our health.
Elsewhere four other samples of soft drinks contained colours that were not actually listed on the label.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=7678

Industry Initiatives
You can't kid the kids
Teenagers have grown out of the marketing tactics used for youth brands, forcing designers to speak to 'young adults' in their own language.
Mad.co.uk
http://www.mad.co.uk/story.aspx?uid=7321ce20-41f0-4bd7-9469-7e37e36302f0

Industry Initiatives
Flexible working patterns
The UK is undergoing cultural as well as economic change. This has lead many people to reassess traditional working patterns. The advent of mobile technology has given individuals the ability of remote working.
The trend for home working is on the increase. A report - Status Quo and Potential - based on e-commerce and telework trends in Europe - suggests by 2005 11% of the European workforce will be involved in some form of home working.
Offering more flexible working methods can be a good way to retain valued staff and also to improve their general quality of life, which in turn is beneficial to the business.
What To Buy For Business, on Headlines from Mintel

Industry Initiatives
Flavours drive vodka's momentum
Flavoured vodka is growing at an explosive rate in the US and will continue to do so as long as producers can keep rolling out new extensions. But there is still a healthy degree of caution in regards to NPD, despite temptations to expand portfolios.
Flavoured vodka isn't a truly new phenomenon. Distillers for centuries used ingredients like honey and herbs to mask impurities before current filtration methods were developed. However, today's producers are infusing vodka with vanilla, citrus and other flavours for a modern purpose: to capture the imagination and dollars of consumers.
That strategy has worked so far. Flavoured vodka sales grew by a third in 2002 and accounted for about 17% of all the vodka sold in the US, according to AC Nielsen. That gain comes within a category already outpacing rum, Tequila and other spirits. But can such growth continue?
Yes, say company executives and industry watchers.
Just-drinks.com
http://just-drinks.com/fd.asp?art=773

Industry Initiatives
Richmond to reinvent choc ice
Richmond Foods is planning to reinvent the choc ice. James Lambert, chief executive of the ice-cream maker, said the group was investing in equipment that would enable it to produce more elaborate bars. The group, which makes Nestle-branded ice-creams as well as own-label products for supermarkets, is switching its focus to organic growth after integrating two substantial acquisitions.
Sales in the six months to end-March slipped slightly from £42.5m to £42.2m. Pre-tax losses narrowed from £1.7m to £200,000.
Consumer industries briefing, from ft.com
http://tm0.com/ft/sbct.cgi?s=61423343&i=792763&m=1&d=4491646

Industry Initiatives
Soft drinks develop the function creep
Consumers are constantly seeking more from their drinks purchases and the burgeoning functional drinks category is aiming to deliver on all those needs. But just-drinks.com Lucas warns of overkill, while attempting to determine the next mega-trend.
The example quoted is of scientists who claimed their product was a cure-all for everything from skin diseases, kidney and liver ailments, to obesity, heart disease, and cancer. Pretty impressive if true. It's called 'Gift of the Cow' and sells for 20 rupees a bottle. It's sterilised cow's urine. So where should we look for the next mega-trend or the next billion dollar business? From the original Red Bull to probiotic dairy drinks and enhanced waters, the majority of successful concepts were successful in Asia first. But this 'look east' strategy tends to over-rely on the ingredient rather than the consumer for its inspiration.
The answer may lie with our young, particularly the tweenager - the stage between childhood and teenager. One of the most marked effects of the 'kids getting older younger' phenomenon is their knowledge and interest in all things fashion and their ability to manipulate their parents' buying patterns - especially for them. Functional beverages are no different to clothing, toiletries and cosmetics for this age group. They're all aspirational consumer goods. A child friendly version of Red Bull is probably an oxymoron, but the answer is out there. And so are the big bucks for getting it right. That's what's next.
Just-drinks.com
http://just-drinks.com/fd.asp?art=776

Industry Initiatives
Vending industry adopting telemetry
The days of malfunctioning vending machines may soon be over. The vending industry is adopting telemetry, which allows payments by mobile phone or credit card.
Dial-a-coke machines, which take payments via mobile phones, are already in place in Scandinavia.
Retailers are starting to see vending as another form of 24-hour. Blockbuster dispenses DVDs and videos by machine. The number of vending machines increased by 15% from 1998 to 2002, driven mainly by the refreshments sector. However, partly due to restrictions on advertising and cheaper imported cigarettes there are fewer cigarette machines than five years. The most enthusiastic vending consumers are the Japanese, with one refreshment dispenser for every 23 people.
Mail on Sunday, on Headlines from Mintel

Industry Initiatives
New packaging for convenience snacks
Leading consumer packaging firm Huhtamaki is launching a new line of packaging to meet the ever-growing demand for ready-made snacks. The Eat-in-it concept, as it is called, features five containers, a heat sealing machine, lidding film and four different lids to cater for all kinds of meals.
The consumption of convenience food has risen dramatically in recent years. Lifestyle changes, economic development and technological innovations have led to more and more people snacking quickly rather than sitting down to a lengthy meal.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=2200

Industry Initiatives
Health, convenience, taste: the three pillars of yoghurt growth
Yoghurt more than any other dairy product meets consumer demand for healthy, convenient and tasty food - a factor which market analysts Euromonitor claim will continue to drive sales of the product in the years to come.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=2269

Yoghurt, the all day snack
Once positioned as a breakfast or after dinner treat, yoghurt is now widely viewed as an all day snack. Product innovations - both in packaging and content - have driven dramatic growth in the sector. Manufacturers have been hugely innovative with yoghurt in recent years, focusing on its health benefits in addition to developing more convenient formats and new taste sensations. As a consequence the increase in yoghurt sales has outstripped that of other dairy sectors.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=7697

Industry Initiatives
The future of E-numbers
Campaigners in the UK have begun a further assault on the "artificial additives", and their potential effects on child health, according to Frost & Sullivan.
The British Dietetic Association is blaming the high consumption of confectionery, crisps and soft drinks for high levels of obesity among British children, also linking the excess sugar and caffeine they contain to hyperactivity and bad behaviour. Other campaigners, however, are pointing the finger at "E-numbered colours, sweeteners and preservatives", with widely varying suggestions that between one in 1000 and one in seven children could be affected.
The biggest problem with such broad statements, according to Frost & Sullivan, is that they make little distinction between different additives, branding all E-numbers as potentially harmful. This is a throwback to the massive anti-additive push in the 1980's, following the release of Maurice Hanssens book, "E is for Additives", and does not necessarily rely on any scientific evidence.
The food additives industry still appears to be failing to make any serious attempt at explaining their position to the public. How many consumers, for example, understand the levels of scientific evaluation that must be carried out before a product is given an E-number? And conversely, how many believe that E-numbers are awarded only to help control consumption of toxic compounds?
With the growing demand for natural products and ingredients, the food additive industry cannot afford to simply ignore consumer opinion. Food manufacturers will respond to their customers' wishes by excluding E-numbers where they can, and additive producers risk watching their market shrink if they cannot provide a coherent solution.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=7070

Products & Brands
Tango Summer campaigns
In the Summer of 2003, Britvic aims to win consumers over to its Tango and Fruit Shoot brands, with marketing spend of £11 million and £6 million respectively.
New to the Tango brand will be tinted bottles, updated logos and a curved shape for the 500ml drinks container. Tango will also be strengthened with the release of Fruit Fling, a combination of orange, passionfruit and pineapple. New advertising for the brand will appear later in the year.
Grocer Today, on Headlines from Mintel

Products & Brands
Sara Lee, premium desserts
Seeking to boost demand in the slowing frozen desserts sector, Sara Lee is to introduce a premium line-up, under the branding of 'Gold'.
A spokesperson for Sara Lee said that frozen desserts were once viewed as a luxury purchase, but now they are seen as an everyday buy. Own label products dominate, with the market driven by price.
Rather than head for the freezer cabinet, shoppers looking for quality now favour ambient and chilled products. Launched in April 2003, the Sara Lee Gold selection includes three cheesecakes: strawberry shortcake; lemon and lime; chocolate and hazelnut. Further additions are planned for later in 2003.
British Baker, on Headlines from Mintel

Products & Brands
Cariel Vanilla Vodka hits style bars (Sweden)
Facile & Co, the Swedish drinks company behind boutique spirits such as Seriously vodka, Seriously pinky and Imagin gin, has launched a new flavoured brand into the UK flavoured vodka sector.
Cariel Vanilla Vodka, 37.5 per cent ABV, is being aimed primarily at the style bar market having become the fastest growing flavoured premium vodka brand in Sweden with more than 10,000 cases sold in 2002.
Thepublican.com

Products & Brands
Sports drink for the summer
Calypso Soft Drinks is launching a number of new products for the sports drink and children's beverage markets. They have developed a fortified fruit-flavour mineral water for children called Rapidz. The drink, which contains Vitamins C, E and B6, Niacin, and Biotin, is a response to market research which cited health and fashion as the two main factors currently driving consumer choice in the soft drinks market. It comes in two varieties: Summer Slipstream and Tropical Twister.
Food Manufacture, May 2003

Products & Brands
Chocolate and vodka (Denmark)
Giant chocolate milk producers, Cocio, wish to hop on the lucrative alcohol-pop bandwagon by marketing a new product: chocolate milk laced with vodka
Since popular alco-pop drinks such as Smirnoff Ice and Bacardi Breezer were launched in this country two years ago, over 24 million bottles have been sold, primarily to teenagers. Health experts fear that this new 'cocktail' could encourage even younger kids to drink.
A recent survey revealed that eight out of ten people believe that alco-pops are too easy for youngsters to get hold of and 78 percent said they would like to see warning labels on the bottles.
Copenhagen Post, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e70253975&e=6327

Products & Brands
Milk-based energy drink launched (USA)
A milk-based energy drink to challenge market leader Red Bull has been launched in the USA.
Mad Cow, manufactured by New Jersey-based Liquid Billboards is set to retail for about half the price of a Red Bull can, which has proved to be a runaway success in bars and convenience stores.
What makes Mad Cow so innovative is the fact that it is made from milk serum, the company claims. This is the transparent liquid that remains after all the proteins and fats have been removed from milk. Milk serum therefore contains all the valuable constituents of milk without protein and fat.
There is also no cholesterol and no taste to milk serum, making it the ideal base for an energy drink. The product also contains vitamins B2, B6, B12, Niacin, Ca-Pantotheanate, Caffeine and Taurine.
DairyReporter News Headlines
http://www.beveragedaily.com/news/news.asp?id=534

Products & Brands
Danish milk-based snack launched in Saudi Arabia
A new Danish milk-based snack has been launched in Saudi Arabia. The product, called Hayya, is aimed to provide kids with a healthier alternative to chocolate.
Arla Foods' Saudi Arabian subsidiary, Danya Foods, has launched the new milk-based with a pudding-like texture that comes in three flavours - chocolate, vanilla and strawberry.
The product, which is eaten straight from the triangular Tetra Pak packaging, is made from Danish milk powder and is being produced at Danya Foods' manufacturing plant in Riyadh.
The product is being sold under the groups' Power Cow brand. The Power Cow range features milk-based products including processed cheese and various snack products.
DairyReporter News Headlines
http://www.dairyreporter.com/news/news.asp?id=459

Products & Brands
Nestle launches new line of Latino-themed fruit drinks (USA)
Nestlé is introducing Kerns Aguas Frescas, a new line of Latino-themed fruit drinks in tamarind, strawberry and horchata - sweet rice and milk flavour - that it will distribute in California and Arizona. Usually made of fruit juice, water and sugar, aguas frescas (fresh waters) are common homemade drinks in Latin American countries.
Wall Street Journal Europe, on Headlines from Mintel

Products & Brands
Candy floss or bubble gum? (USA)
Perfetti Van Melle, the Dutch-Italian confectionery group, has launched a new product in the US which offers the consistency, flavour and look of candy floss before turning into a more traditional bubble gum product.
The US-arm of Dutch-Italian confectioner Perfetti Van Melle is set to launch an innovative new bubble gum product. Marketed under the Airheads brand name, the gum begins as candy floss in appearance, flavour and texture before transforming itself into bubble gum.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=2174

Products & Brands
Waitrose, new children's food range
A new children's food range is being launched by supermarket chain Waitrose, called Food Explorers and said to provide healthy and tasty meal options for parents.
Marketing, on Headlines from Mintel

Products & Brands
Sensations expanded with the addition of 2 new flavours
Sensations has been expanded with the addition of two new flavours and an Oriental Crackers concept.
The upmarket snack range from Walkers will now include slow roasted lamb and mint, and tangy tomato and red pepper salsa flavours.
The new Walkers Sensations Oriental Crackers come in three new flavours
- Peking spare rib and five spice, Thai lemongrass and coconut, and tangy Malaysian chutney.
Walkers Sensations is the UK's fifth biggest snack brand worth over £60 million.
Publican, on Headlines from Mintel

Products & Brand
New mixed flavour assortment Campino from Bendicks
A new mixed flavour assortment has been introduced by Bendicks (Mayfair) to its Campino range.
Summerfruits and Cream consists of three different fruit flavours, which all have cream, to add to the existing Campino range.
Bendicks says that it introduced this product into the £1 billion confectionery market, as part of the "fruit and cream" segment that is worth £44 million of the hard fruit category.
Scottish Grocer, on Headlines from Mintel

Products & Brands
Allied to launch new rum brand (USA)
Allied Domecq is launching a flavoured rum brand called Kuya onto the US market this summer, as it attempts to capture a larger share of the 21- to 29-year-old market.
It is branding the drink a "fusion rum" combining as it does imported rums, natural spices and citrus flavour.
Just-drinks.com
http://just-drinks.com/nd.asp?art=19754&dm=yes

Products & Brands
Sunny D decides message is health
Procter & Gamble has performed a remarkable U-turn in the way it is planning to market its flagging soft drink brand Sunny D. The fmcg giant plans to reposition the drink as a healthy alternative to other children's drinks, despite declaring in The Grocer just 12 months ago that to ever return to such a tack would be a "minefield". However, the company said it believed consumers were now ready to hear its health message once again following extensive consumer research.
GrocerToday.co.uk
http://www.grocertoday.co.uk/article.asp?s=2&a=255273

Products & Brands
Co-op outperforms rivals
Britain's biggest convenience store operator, The Co-operative Group, has reported a 6.9% increase in turnover, approximately 3% above the average in the food sector. The group's share of the food sector increased by 0.1% to 5.8% in 2002. Net profit for the total group was up 18% from £270 million to £320 million.
The Times, on Headlines from Mintel

Products & Brands
Sunny Delight healthy re-launch
Procter and Gamble is to re-launch its Sunny Delight juice with heavy emphasis on the nutritional value of the drink. The multinational food and consumer goods group has released a study showing how the vitamins added to Sunny Delight had "significantly" improved child nutrition in Britain. The new marketing campaign will stress that Sunny Delight is healthier than fizzy drinks.
Food Industry News, May 2003

Products & Brands
Continental yoghurts from Müller
Müller is to launch a new premium yoghurt brand in June. The product, called Amori Luxury Yoghurt, will be available in three flavours, all with a slant on classic European tastes: Italian lemon, Spanish orange and walnut & Greek honey. The company is introducing the Amori brand as a result of its Müller Corners product moving from the premium category into a more mainstream price range. Müller said it was seeking to target women with the product and hoped that the European tastes would bring in UK customers who increasingly want to taste new flavours.
Food Industry News, May 2003

Products & Brands
Fcuk Spirit removed from shelves
Alcopop fcuk Spirit has been removed from shelves after an independent panel found that it appealed too strongly to children.
The vodka-based drink has an alcohol content of 5.4%, and is manufactured by Bristol drinks company Matthew Clark Plc.
The conclusions were reached due to concerns that the popularity of the fcuk brand with teenagers would encourage them to buy the fruit flavoured drink.
The panel also ruled that another fruit based drink, Kiss Me, did not make it clear that it contained 14.5% alcohol.
ananova.com, on Headlines from Mintel

Products & Brands
Del Monte too parent friendly
Del Monte's revamped Fruitini line will hit UK retailers' shelves later this summer. However, the desire to avoid a consumer backlash against the supposed healthiness of dual-positioned products may have made the marketing too geared towards winning the parent's endorsement rather than the child's.
Del Monte is re-launching its Fruitini brand as a convenient, fun and healthy fruit snack targeting the children's lunchbox market. The product will use a dual marketing strategy to target mothers and their 4 to 9-year-old children. Del Monte must be hoping that the product can follow in the successful footsteps of Lunchables and Cheesestrings in capturing the lucrative lunchbox market.
Just-food.com
http://just-food.com/nd.asp?art=54165&dm=yes

Products & Brands
Coke hoping to milk nutritional beverages growth
Coca-Cola has confirmed rumours in the US trade press that it is to launch a flavoured milk drink later this summer in a bid to gain a foothold in the fast-growing nutritional beverage market. Swerve will come in three flavours (chocolate, vanilla-banana and blueberry) and will have a high milk content - more than 50 per cent - enabling it to carry the important seal of approval from the American Dairy Association.
The milk will be rolled out in the US during the late summer months, in time to target children returning to school after their vacations. The drink is said not to require refrigeration before consumption.
But Choglit is to be scrapped.
Foodanddrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=2267

Products & Brands
Summer mix from Shloer
Shloer is adding a limited edition White Grape, Rhubarb and Ginger combination to its soft drinks range. According to Shloer, rhubarb is seen as summary and refreshing, while ginger adds sophistication.
The Grocer

Products & Brands
Three's company for UK vodka launches
With vodka bars all the rage, licensees may be interested to hear about the arrival of a trio of first-class vodkas in the UK.
Grey Goose, a premium favourite in the USA, has expanded its range over here with the launch of Grey Goose Citron, a lemon-flavoured variant.
Meanwhile, Moët Hennessy is aiming its Belvedere Polish vodka, quadruple-distilled, at high-end outlets hoping to replicate the success it enjoys among movers and shakers in New York.
Finally, distributor Malcolm Cowen is looking to gain listings for its triple-distilled Flagship brand, made from a 500-year-old recipe and the fastest growing vodka in its native Russia.
Brands newswire, from thePublican.com
http://www.thepublican.com/item/9823/11

Products & Brands
Challenger for Pimm's as Plymouth Gin Fruit Cup is launched
Maxxium UK is set to turn the heat-up on Pimm's this summer with the launch of a fruit cup variant of its Plymouth Gin brand.
Plymouth Gin Fruit Cup is to be aimed at "disaffected Pimm's consumers" and younger drinkers looking for a premium alternative to Diageo's runaway market leader.
Brands newswire, from thePublican.com
http://www.thepublican.com/item/9568/11

Products & Brands
British children want designer labels
A two-year study undertaken by Leicester University found that children have developed a passion for designer labels, with the phenomenon affecting those as young as six.
It was found that having the right logo is now seen as essential for maintaining 'street cred', with many young people now experts at 'pester power'.
London Metro, on Headlines from Mintel

Key Statistics
Trend Towards Convenience Continues
Convenience food looks set to retain its popularity in the UK for the foreseeable future. Almost half (46%) of meals eaten in UK households are now done so alone, with micro-waved ready meals especially popular. The number of meals eaten alone in the UK has risen from 4 billion in 1982 to 12 billion in 2002, due to factors such as the growth of single-person households.
In a similar vein, children across the UK are eating more takeaway food and ready meals than ever, which suggests that the market for convenience food will increase further. Furthermore, less and less children are learning to cook for themselves.
The UK Food & Drinks Report, on Market Intelligence Newsletter from LFI

Key Statistics
Snack-aholic Brits break European records
In 2002, the UK accounted for some 51% of total value sales of savoury snacks, way ahead of the German market, which stands in second place with an 18% share followed by France (14%), Spain (9%), and Italy (8%).
In comparison to snack consumption in the UK, snacking in Europe remains very low. Whereas 86% of the British eat crisps or savoury snacks, less than half of Italians (46%) do so.
Despite high consumption levels, the UK savoury snacks market has yet to reach saturation point. This will ensure further growth in the short to medium term.
Just-food.com
http://just-food.com/nd.asp?art=53975&dm=yes

Key Statistics
Global consumption of juices and nectars
Global consumption of commercial beverages has now reached around 12 trillion litres. In terms of juices and nectars vs. still drinks, the market share across regions varies hugely. North American consumers drink 50% juices and nectars and 50% still drinks; South America consume just 30% juices and nectars; Western and Eastern Europe 60% juices and nectars; the Middle East 30% juices and nectars; and Asia and Oceania drink just 20% juices and nectars. Consumption of juices, nectars and still drinks in Eastern Europe is growing. Today the average consumer there drinks 17 litres of still drinks per year, 10 litres of nectars and three litres of Juice. Per capita consumption is expected to rise to 23 litres of still drinks, 14 litres of nectars and eight litres of juices by 2006.
Worldwide consumption of juices and nectars alone is 80 billion litres today and while uptake in developed nations is expected to grow marginally over the coming years, consumption in less developed nations is forecast to double by 2020. Global growth in juices, nectars and still drinks is forecast to grow by 4% until 2005. This equates to over 8 billion litres added to the market each year.
The juice beverage market will continue to segment as products for niche markets and target groups become successful. Private label juices will continue to grow at a faster rate than branded juices as supermarkets develop their products.
FoodNews, on Headlines from Mintel

Key Statistics
Focus on soft drinks
Soft drinks consumption in the UK continues to grow, responsible for 27% of all the drinks consumed, more than hot beverages.
Although Summer 2002 was disappointing, the category still managed to grow 8% year-on-year, worth nearly £3 billion (52 weeks to 2 March, 2003).
Whether there is sun or rain, over 70% of households will include soft drinks in their weekly shopping lists.
Innovation is a key part of the market, with Britvic claiming there were 250 new soft drinks launched in 2002.
Above-the-line advertising of the category also rose for the 1st time in four years, up 13% on 2001 to almost £96 million.
Grocer Today, on Headlines from Mintel

Key Statistics
Irish and UK lead Europe when it comes to tea drinking
According to the International Tea Committee, people in Ireland, UK consume the most tea in Europe, downing 1,200 and 1,000 cups per person, per year, respectively.
Britons drink ten times more tea than people in France, Germany and Belgium, with Italians consuming just 35 cups in a single year.
Financial Times, on Headlines from Mintel

Key Statistics
UK slimming products market
Research by Mintel shows that the UK slimming products market grew by 18% between 1997 and 2002, with the market valued at £110.9 million.
Slimming products comprise meal replacements, appetite controllers and suppressants plus very low calorie diets (VLCDs).
It is thought that growth in the market has now started to slow, with consumers questioning just how effective such products are.
A growing number of people have also switched to low-carbohydrate diets used by the likes of Geri Halliwell and Jennifer Aniston.
During 2002, the UK slimming products market witnessed growth of only 1.4%.
Last year, the UK low-calorie grocery market rose by 9.4% to stand at £1.5 billion.
The Times, on Headlines from Mintel

Key Statistics
Overweight children consume 65% more fruit juices than thinner children, a study suggests (USA)
According to the study author Dr Santa Dhuper, director of paediatric cardiology and the paediatric obesity clinic at the US' Brookdale University Hospital and Medical Centre, parents think that because fruit juices are natural, they are a healthy drink, so they do not put a limit on how much their children consume.
The obese children far exceeded the American Academy of Paediatrics' recommended limit, consuming an average of 32.1oz/day, 65% more than normal-weight children, who drank an average of 19.4oz/day.
Fruit drinks are a major source of calories but their high sugar content may increase a child's appetite for even greater amounts of food, thus further contributing to weight gain.
FoodNews, on Headlines from Mintel

Key Statistics
Children consume most soft drinks per head in the UK
Children account for some 22% of the UK population. However, they consume 38% of soft drinks.
Children's self-purchases of soft drinks are worth £280 million a year. This total is on the rise also.
Convenience Store, on Headlines from Mintel

Key Statistics
UK barbecue market worth around £200 million and rising
According to research from Mintel, sausages and burgers maintain a prime position as barbecue favourites. They are accompanied by chicken.
Despite this lead, other offerings are catching up the leaders - barbecue packs (7.7%); steak (6.5%); sauces, seasonings and marinades (6.4%); chops, ribs and other meat (5.8%); fish (5.3%) - are some of these.
Convenience Store, on Headlines from Mintel

Key Statistics
A boom in the anti-ageing market due to over fifties
Research has show that by the year 2010, 35% of the developed world will be over 50 years old.
Thus, health club spa operators would do well to note this apparently very affluent sector.
More over fifties are signing up for gym membership, and, as they have control of 50% of the discretionary income - health treatments and products that keep them looking younger will blossom.
Women in their thirties and even in some cases, their twenties, are paying out for treatments - these range from galvanic facials to Botox - to get rid of facial lines.
The consumer press gives this matter almost daily coverage and thus health club and fitness gyms should push the services they offer - ranging from fitness programming to nutritional guidance - to stop smoking courses.
Health Club Management, on Headlines from Mintel

Key Statistics
British juice sector chills out
Chilled juice is growing in popularity in the UK as a result of a reduction in cost and its perceived health benefits. And the category looks set to grow further, mainly at the expense of long-life juice.
According to a new report from beverage industry analysts Canadean, chilled juices now account for over 30 per cent of total juice consumption, compared with 25 per cent just four years ago. The report estimates that consumption of short-life juice (which mainly comprises chilled juice) reached over 350 million litres in 2002 - a 17 per cent increase on the previous year and an impressive 48 per cent higher than in 1999. Chilled juices have traditionally commanded premium prices compared with the long-life segment in the UK. However, the erosion of this differential through intense price competition has attracted new consumers of chilled juice. While chilled juice increased by some 50 million litres in 2002, consumption of long-life alternatives receded by around 35 million litres.
Foodadndrinkeurope.com
http://www.foodanddrinkeurope.com/news/news.asp?id=2219

Key Statistics
Chilled juice market heats up
Chilled juice is growing in popularity in the UK as a result of a reduction in cost and its perceived health benefits. And the category looks set to grow further.
Beveragedaily.com
http://www.beveragedaily.com/news/news.asp?id=553

Key Statistics
Bottled water market worth £1 billion in 2002
In an age when healthy living is both a mantra and a money-spinner, bottled water sales have gone through the roof in the past few years.
The UK bottled water market was worth an estimated £1 billion in 2002.
The choice is vast. Consumers are overwhelmed by the choice of brand, bottle and marketing blurb. Some brands go beyond using taste and packaging as a marketing tool and instead promise miraculous properties. Oxygizer is a natural spring water enriched with an extraordinary level of pure oxygen. Meanwhile, Glaceau Smart Water Sport is an electrolyte-enhanced water that is claimed to do wonders for your sporting prowess.
Mail on Sunday, on Headlines from Mintel

Key Statistics
Chilled juice market heats up
Sharp reductions in the cost of chilled juices have helped drive their popularity among UK consumers. According to a new report from beverage industry analysts Canadean, chilled juices now account for over 30 per cent of total juice consumption, compared with 25 per cent just four years ago.
The report estimates that consumption of short-life juice (which mainly comprises chilled juice) reached over 350 million litres in 2002 - a 17 per cent increase on the previous year and an impressive 48 per cent higher than in 1999.
Chilled juices have traditionally commanded premium prices compared with the long-life segment in the UK. However, the erosion of this differential through intense price competition has attracted new consumers of chilled juice. While chilled juice increased by some 50 million litres in 2002, consumption of long-life alternatives receded by around 35 million litres.
BeverageDaily News Headlines
http://www.beveragedaily.com/news/news.asp?id=553

Key Statistics
Own-brand products account for 1 in 4 items purchased in Europe
One in four items purchased in Belgium, France, Germany, Spain and the UK are own-brand products, according to the Private Label Manufacturer's
Private label products are expanding significantly in countries with traditionally low penetration, such as Spain. Spain had the largest increase in volume share, where own-brand products account for 27% of sales.
Frozen & Chilled Foods, on Headlines from Mintel

Key Statistics
Drinks can sales grow by 126 million
The latest figures from industry body the Can Makers show another year of growth for the drinks can. During 2002 sales of empty cans to the UK breweries and soft drinks manufacturers showed an overall increase of 1.7% compared with 2001, which represents an additional 126 million cans. Sales to carbonated soft drinks manufacturers increased by 2.5% while sales to beer and cider brewers increased by 1%.
Food & Drink International, May 2003

Key Statistics
Downturn in the ice cream market
New figures have revealed that in 2002 ice cream volumes, in both the take-home and impulse channels, were down by 1.5% and 2.4% respectively.
Multiple Buyer & Retailer, on headlines from Mintel

Business & Economics
UK retail sales up 0.6%
The Spring sunshine helped to boost retail sales in March 2003, announced the Office for National Statistics.
UK retail sales grew by 0.6%, following two consecutive months of falls, boosted by retailers selling outdoor goods and clothing.
It has been a tough start to 2003 however, with 1st quarter sales volumes rising by only 0.1%, the worst return since December 1998.
Non-food sales were up 0.9% in March 2003, while the category that takes in garden centres and outdoor goods witnessed a 1.8% sales rise. Household goods sales fell 0.3%.
Ananova, on Headlines from Mintel

Business & Economics
UK consumer confidence grows
UK consumer confidence rose in April 2003, as concerns over the Iraq conflict eased, says latest research. Confidence amongst people in the UK has returned to the levels witnessed in December 2002, before the war with Iraq gathered pace.
BBC News Online, on Headlines from Mintel

Business & Economics
Growth in grocery sales halved in the past 12 months
In the wake of market slowdown, price deflation and the weak performance of categories such as frozen and ambient, growth in grocery sales halved in the past 12 months.
Sales growth in the sector dropped to 3.5% for the 52 weeks to March 2003, compared with 7.3% the year before.
Grocery is still performing better than other retail sectors. Although huge volume increases are not being generated across the food market as a whole, many consumers are trading up and buying premium products. Chilled foods performed very strongly, as did wine, spirits and beers and fresh meat.
UK grocery market sales, excluding non-food, were £63.77 billion for the year to March 2003.
Retail Week, on Headlines from Mintel

Business & Economics
Deflation looms
The International Monetary Fund warned that Germany was at high risk of deflation and that Japan might suffer further price falls. The organisation said Hong Kong and Taiwan also faced deflationary pressures. Publishing the findings of its deflation taskforce the IMF, however, concluded that generalised global deflation was unlikely. Alan Greenspan meanwhile played down the possibility of falling prices in the US. The Chairman of the Federal Reserve described the risk of deflation as "minor" but said the situation was being closely watched.
Weekly news summary, from Ft.com
http://tm0.com/ft/sbct.cgi?s=61423343&i=802763&m=1&d=4586444

International Developments
IRELAND: Functional food in Ireland
Representatives from Glanbia, Kerry Foods, Lakelands and Dairygold are travelling to Japan to negotiate a collaboration with the Japanese companies that dominate the world market for functional foods.
Global sales of foods offering health benefits are worth €14 billion per annum, and are increasing at more than 25% compared with the 1% growth of traditional food products.
Functional food sales in Ireland are only worth €15 million a year, however Enterprise Ireland believes that this figure could increase to €200 million within the next five years.
Irish Independent, on Headlines from Mintel

International Developments
THAILAND: Adams plans diversification into carbonated beverages
Adams (Thailand) Co will no longer just sell Chiclets chewing gum or Halls sweets in the future but will diversify into carbonated beverages, following the acquisition of US-based Adams by Cadbury Schweppes.
As a result of the integration of Cadbury and Adams globally, Adams Thailand was looking at distributing Cadbury`s chocolate and related products, Snapple fruit juice and Dr Pepper soft drinks, said general manager Anat Julintron.
Adams operates a confectionery plant in Samrong Nua, Samut Prakan and there is no plan yet to change the company's name to Cadbury.
However, Cadbury's experience in confectionery would help support and increase Adams` business locally, he said.
Adams Thailand's three main product lines are gum (Dentyne, Chiclets and Clorets), hard confectionery (Halls) and Clorets breath fresheners.
The trend in Thailand's chewing gum market is expected to follow the European market, where about 80% of all gum sold is sugar-free.
Thailand's chewing gum market was estimated to be worth 1.55 billion baht last year, a 9.4% increase from 2001.
Of the total market, about 75% was gum sticks while coated gum contributed 20% and chunky gum 5%. Gum sticks have continued to grow at 10-15% per year while the market for other forms of gum is shrinking.
Adams Thailand claims a 54.2% share of the total local chewing gum market.
They are followed by Wrigley, with a 16.8% market share and Lotte with a 15.2% share.
Source: Bangkokpost.com, from Food Ingredients First, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e71123279&e=6327

International Developments
INDIA: Guinness UDV Uncorks Flavoured Vodka With Smirnoff Citrus Twist
Guinness UDV, a part of international spirits major Diageo Plc, has unveiled its first flavoured vodka -- Smirnoff Citrus Twist-- in the Indian market. The company plans to launch another three variants of flavoured vodka during this year. With this, the company unveils a new dimension in flavoured drinks in the country. The Citrus Twist preludes the launch of other Smirnoff Twist flavours in the country. Globally, the product is available in Raspberry, Orange and Vanilla flavours.
The company plans to introduce other Twist flavours in the market which will allow incremental growth of the mother brand by increasing high shelf impact.
Financial Express, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e71004017&e=6327

International Developments
IRELAND: Publicans in the RoI seek 'shot' ban to halt teen binge culture
In the Republic of Ireland, publicans have called for a ban on 'shot drinks' that are allegedly to be directly marketed at children, as they will encourage binge drinking.
Those already banned include Bug Blue and Bug Red. These are South African-manufactured of combinations vodka with brightly coloured sweet, fruit-based flavours and having a high level of alcohol.
The Vintners' Federation of Ireland has advised members not to stock 'alcoholic shooters'. These include Slammas - shot glasses of vodka with lids on them - also Sidekicks - a sour apple flavoured Schnapps in a plastic glass designed to attach to the side of another alcohol beverage.
Average content of these drinks is 20% compared with a 4.3% alcohol content of a bottle of beer.
Irish Independent, on Headlines from Mintel

International Developments
Northern Ireland grocery takeover
John Henderson Holdings, the Spar wholesaler, has surprised the Northern Irish independent retail market by revealing plans to buy arch rival J&J Haslett for an undisclosed amount.
If the acquisition proceeds, it would establish a £476 million operation, with interests throughout the independent retail market and two major retail brands.
In Northern Ireland, Hasletts owns the Mace franchise and also operates the Nearbuy and XL Stop and Shop symbol groups, plus the Holmes Cash & Carry business.
The combined business would be positive for the industry, claims Hendersons, allowing it to better take on the grocery multiples.
Grocer, on Headlines from Mintel

International Developments
IRELAND: Republic of Ireland most expensive in euro-zone
An Irish Republic government report, compiled from data from PricewaterhouseCoopers, has warned that RoI is poised to become the most expensive country in the euro-zone.
A surge in the price of alcohol, cigarettes and housing have all contributed to the expensive cost of living in the Republic, which now threaten the country's economic competitiveness.
The Republic of Ireland's economic growth has eased, since the country earned itself the name of the 'Celtic Tiger', however, inflation has not slowed accordingly and is well above the euro-zone average.
In 2002 consumer prices in the euro-zone rose by just over 2%, but in the RoI the increase was 5%.
Consumers in off licences in Spain would pay 60% less than the RoI, while rented housing in Portugal is 20% of the price paid for in the Irish Republic.
Guardian, on Headlines from Mintel

International Developments
GERMANY: German love affair with speciality coffee
Higher sales of speciality products such as cappuccino mixes helped push up sales of instant coffee in Germany last year, according to the latest data from the Deutscher Kaffee Verband, the German coffee producers' association.
In Germany itself, instant coffee sales were up 15.1 per cent to 43,300 tons, while exports were ahead 16 per cent to 48,800 tons. Volumes are expected to rise even further this year.
But the association stressed that traditional instant coffee sales growth in the domestic market was sluggish - at just 3 per cent - with most of the increase in sales coming from cappuccino mixes and similar products, whose domestic sales rose by 21 per cent during the year.
The rise in popularity of such coffee-based products was attributed to young consumers seeking an alternative to carbonated soft drinks or alcoholic beverages. It is being driven by the proliferation of coffee shops and in-store cafés across Germany which are allowing younger consumers to experiment with a variety of coffee products for the first time.
BeverageDaily News Headlines
http://www.beveragedaily.com/news/news.asp?id=567

International Developments
EUROPE: Ingredients in an enlarged Europe
Central and Eastern European (CEE) countries consume a wide range of international food products and growing sophistication among consumers within the CEE regions in terms of diet and food preferences, as well as a trend towards healthier eating, have opened up further opportunities for food manufacturers. And the addition of 10 new Member States to the European Union will undoubtedly serve to compound these trends.
Foodnavigator.com
http://www.foodnavigator.com/news/news.asp?id=7707

International Developments
Doughnut boom
In contrast to the closures and decline pervading much of American commerce, doughnut chains are enjoying record profits and remarkable sales growth. A survey by industry experts has shown that Dunkin' Donuts, Krispy Kreme and Tim Hortons are the three fastest growing companies in the business. Krispy Kreme is the leader with sales of $622 million in 2002, an increase of 38.7%. Dunkin' Donuts is also planning to open 300 stores in the next year.
Daily Telegraph, on Headlines from Mintel

Retail & Company News
Muller's bottling plans
Muller Dairy is planning a £10m bottling operation at its Market Drayton factory to produce plastic bottles of its 'Vitality Probiotic' yoghurt drink. The product is currently imported from Germany.
Euro Food & Drink, April 2003

Retail & Company News
Lucozade sales grow 7%
Reporting its 1st quarter 2003 profits, GlaxoSmithKline revealed that sales of nutritional healthcare products rose by 2% to £135m, pushed along by a 7% increase in Lucozade sales.
Oral care also grew, by 2% to £252m, with a 5% drop in Aquafresh toothpaste offset by increased demand for the Macleans, Sensodyne, Polident and Corega brands.
The OTC medicines side of the business witnessed growth of 10% to £369m, with Advair, GSK's asthma drug, generating sales of £514m, making it the company's top-selling product.
Grocer Today, on Headlines from Mintel

Retail & Company News
Spar rolls out new off licence area
A new off licence offering is being rolled out by Spar, as it looks to cash in on consumer demand for wine, up 11% year-on-year.
The new look off licence operation will include a chilled section along with a new feature area for the 'top ten wines'.
Information on wines available will be included and focus will also be put on 'the everyday occasions' why people buy wine.
Extra options for the Spar shopper will include purchasing by the case and glass hire.
Grocer Today, on Headlines from Mintel

Retail & Company News
McDonald's UK fall in profits
The British public's love affair with McDonald's burgers and shakes could be coming to an end. There has been a dramatic shift in consumer tastes towards healthier fast-food alternatives, such as sandwich bars.
McDonald's UK operations, seen as one of McDonald's most lucrative overseas divisions, posted a sharp fall in profits last year. Financial results for McDonald's Restaurants Limited, the East Finchley-based main UK operating company, reveal pre-tax profits down 20% in 2002 from £104.3 million to £83.8 million, their lowest since 1998. The UK business has been hit by stalling sales growth.
Evening Standard, on Headlines from Mintel

Retail & Company News
US market remains tops for Starbucks (USA)
The US performance of coffee shops giant Starbucks remains excellent, with 800 out of the 1,200 new branches opening in 2002 to be situated in the States.
Even the US economic downturn has helped the company, with highly-paid Americans thought to be spending their days drinking coffee in Starbucks outlets.
It has not been such a great story in the UK and Japan however, with both operations not generating a profit.
Financial Times, on Headlines from Mintel

Retail & Company News
United Co-op, £20m investment
During the next 12 months the UK's 2nd-biggest co-op, United Co-operatives is to invest £20m into its food retail estate, with refurbishments and acquisitions taking place.
Established in September 2002 via the merger of United Co-op and Yorkshire Co-op, the business operates more than 450 food stores throughout Yorkshire, Lancashire and North Wales.
Like-for-like sales at the combined business are reported to have been 'very healthy'.
The coming year will see eight new stores launched and more than 70 refits take place, with focus going on forecourt retailing, as United Co-operatives looks to add to its current 20 petrol sites, with five new branches.
United Co-op stores are to benefit from Yorkshire's expertise in fresh food, while Yorkshire will in return get a boost through the investment by United in IT, category management, ordering and inventory systems.
Grocer Today, on Headlines from Mintel

Retail & Company News
Spar to extend presence in the UK
Spar, one of the leading convenience store players, aims to extend its presence in the UK by adding 500 new stores to the 2,500-strong network.
The convenience store sector is going through a period of consolidation.
Within the past six months, Tesco has acquired T&S Stores and the Co-op snapped up Alldays.
In the face of increasing competition, Spar is also changing its promotional strategy and is to test a variety of approaches. Its 'Real Deals' campaign will continue, but Spar will also test initiatives such as a big 'buy one - give one free' promotion.
Spar is continuing with new product development and will launch 55 products.
Spar generated sales in the UK of £2.3 billion last year.
Retail Week, on Headlines from Mintel

Retail & Company News
Richmond to reinvent choc ice
Richmond Foods is planning to reinvent the choc ice. James Lambert, chief executive of the ice-cream maker, said the group was investing in equipment that would enable it to produce more elaborate bars. The group, which makes Nestle-branded ice-creams as well as own-label products for supermarkets, is switching its focus to organic growth after integrating two substantial acquisitions.
Sales in the six months to end-March slipped slightly from £42.5m to £42.2m. Pre-tax losses narrowed from £1.7m to £200,000.
Consumer industries briefing, from ft.com
http://tm0.com/ft/sbct.cgi?s=61423343&i=792763&m=1&d=4491646

Retail & Company News
Forecourts with liquor licences to double in 2003
A report from Interbrew UK has said that the number of forecourts with alcohol licences may rise to around 2,000 in 2003.
The forecast is that licensed sites operated by the industry's big four
- Shell, BP, TotalFinaElf, and Esso will double to 900. It goes on to say that oil companies are achieving sales growth of around 70% annually, with prospects for 2003 very positive as more outlets apply.
Prime reasons for choosing forecourt outlets were 'convenience/proximity to home', also being on the shoppers' way home from work.
Forecourt Trader, on Headlines from Mintel

Retail & Company News
Safeway merger: supplier relations questioned
The UK Competition Commission is also seeking further information about the relationship between the various retail groups and their principal suppliers, and in particular is seeking to assess whether any of the mergers might be expected to result in an increase in the merged entity's buyer power. It also wants to assess how this might be brought about - for example, by virtue of suppliers having one fewer multiple grocery retail outlet for their products, and how any such increased buyer power might be expected to manifest itself - for example, in increased costs for suppliers, a reduction in the quality or diversity of products or services supplied by them, or in the levels of innovation they can attain in relation to those products or services.
Also under investigation is whether any increase in buying power by the merged company would have adverse effects on consumers, on smaller multiple grocery retailers or convenience stores, and any on the effectiveness of the Code of Practice governing relations between some supermarkets and their suppliers.
Full details of the Commission's statement can be found on the organisation's http://wwww.competition-commission.gov.uk/.
Nutraingredients.com
http://www.nutraingredients.com/news/news.asp?id=6956

Retail & Company News
Supermarket of the future
Forget baskets, dump your trolleys, there is no need to even wait at the checkout, this is the supermarket of the future.
A design consultancy and IT specialist were asked to draw up ideas of what grocery retailing in the future would look like.
They believe that food and drink shopping will become fun, as technology will recognise our individual buying habits, and thus will be able to target you specifically with promotions.
You will not even have to walk around the aisles if you don't want to, by sitting at computer terminals with handheld PDAs, you can personalise your shopping, with hardware linked to the store's main terminal.
It will not all be technology-led however, as people will still want to touch and look at the products they are purchasing.
When it comes to payment, credit cards will not be required, shoppers will instead provide personal data for the retailer's loyalty scheme, which will find out their preferred method of paying, most likely electronically.
In essence, the future of grocery shopping will become a social experience, rather than something to be viewed as hard-work and stressful.
Grocer, on Headlines from Mintel

Retail & Company News
Allied hopes for a Bacardi mixer
Allied Domecq, the spirits group, is eyeing up Bacardi ahead of its possible stock market float to see whether it can pull off a nil-premium merger worth up to £10bn.
Guardian Unlimited, on Drinks and beverages industry news
http://c.moreover.com/click/here.pl?e71394212&e=6327

Retail & Company News
Sidekick a target for Halewood International
Ready-to-drink specialist Halewood International is reportedly on the verge of acquiring Sidekick from Bulmers.
Both parties are remaining tight-lipped about negotiations, but it is well known that the troubled cider-maker has been open to offers for its non-cider brands ever since a £3.8m hole was discovered in its accounts last year.
Scottish & Newcastle bought Bulmers for £278m last month but it is thought to only be interested in the Strongbow brand.
Since Sidekick's launch in 2001, the range of single shot flavoured schnapps has developed a strong following in young persons' venues and prompted the launch of a number of rivals, such as Screamers from Coors.
Within three months of its introduction sales of Sidekick reached five million and it has been at the forefront of a thriving shots and shooter sector.
More recently, however, Bulmers has been unable to give it the attention it deserves and a switch to Halewood International, home to the likes of Red Square and Hard Core, may signal a return to form.
Thepublican.com
http://www.thepublican.com/item/9626/11

Retail & Company News
Sales rise for C-stores
Data from the Institute of Grocery Distribution (IGD), William Reed Publishing and other leading industry authorities has show that sales through convenience channel increased by 4.1% to £21.46 billion during 2002.
Comparable value growth in the overall grocery industry was 2.9% and inflation was less than 3%.
This new figures are a reflection of the Co-op's acquiring of Alldays by showing a big shift in power from convenience multiples to Co-ops.
Societies now own 1,977 C-stores - which is 3.6% of the market - but account for 9% of the value of sales via the channel.
Leaving out Co-ops, the main movers in the marketplace are symbol groups, with symbol store numbers increasing by 5.7% to 7,794 (14.2% of the market), and sales up by 12.9%.
Convenience Store, on Headlines from Mintel

Retail & Company News
Asda launches pet centre
Asda believes that it will be the first supermarket in Britain to provide shoppers with a complete range of pet merchandise, with the launch of a pet centre at its Eastlands store in Manchester.
The offering will comprise 140 lines with products ranging from cat carriers to dog pampering products.
Customers have told Asda that they wish to buy everything for their pets under one location.
Asda's launch provides new competition for pet superstores, with prices between 10% and 50% cheaper.
Grocer Today, on Headlines from Mintel

Retail & Company News
Independent retailers resist joining symbol groups
Latest research suggests that most independent retailers in the UK are happy to remain on their own, shunning the advances of symbol groups.
When asked "Are you considering whether to join a symbol group?" a massive 78% said "No" while 22% replied "Yes".
Grocer, on Headlines from Mintel

Retail & Company News
Sainsbury's announce strong first quarter results
Sainsbury's has announced a growth of 10.8% in underlying pre-tax profits for the year to March 29th.
Profits increased from £637 million in 2002 to £695 million despite like-for-like sales growth of only 2.3%. This figure was 4% less than last year's 6.3%, and was blamed on tougher market conditions.
In new initiatives, the company aims employ 10,000 new staff by June in order to try to cut queuing times, and has begun a campaign which will strongly promote its fresh foods and other new products throughout the summer.
ananova.com, on Headlines from Mintel

Retail & Company News
Merrydown sales driven by soft drinks
Merrydown doubled pre-tax profits to £1.4 million in the year to 31 March, 2003.
Sales were primarily driven by a 23% rise in sales of the Shloer soft drinks brand, which accounted for £14 million of the total group turnover of £20.4 million at the end of the year.
Financial Times, on Headlines from Mintel

Retail & Company News
Symbol groups are driving growth in the convenience sector
Growth in the ultra-competitive convenience-store sector is being driven by symbol groups such as Spar and Londis.
In 2002, the market outperformed the total grocery market and now accounts for 20% of entire food retail sales in the UK.
The market share held by symbol groups increased from 22.5% to 24.3%.
Symbol groups grew ahead of other types of c-stores. Membership of symbol groups increased 5.7% and sales by 12.9% to £5.2 billion.
Retail Week, on Headlines from Mintel

Retail & Company News
Supermarkets now sell more toiletries and OTC medicines than pharmacies
Supermarkets now sell more toiletries and OTC medicines than the pharmacies.
High street chemists are under increasing pressure from grocers to sell toiletries competitively.
As deregulation of pharmacy licensing looms the competition is going to get tougher for the small independent and high street traditional pharmacy. Those for change argue that the current legislation is restricting the number of pharmacies. However, opponents of deregulation argue that the policy conflicts with the government's aim to improve the role of pharmacies in community healthcare provision.
Meanwhile, other areas of the pharmacy mix have already succumbed to the grocer's advance, particularly toiletries.
Under pressure, Boots has tried to break into new ground with well-being services. This strategy failed. Boots now intends to re-focus on traditional areas of its business again. Edge- and out-of-town shopping is another area Boots believes it can fight back and is planning 20 more sites this year. Out-of-town is a strategy other specialists have yet to follow.
Retail Week, on Headlines from Mintel

Retail & Company News
Starbucks curbs expansion
Starbucks is curbing its expansion plans in Japan and trying to cut costs.
The company once hailed Japan at the best market for growth, however Starbucks appears to have expanded at a rate that could not be justified by sales or profits.
Since opening the its first branch in Tokyo in 1996, Starbucks has opened 467 stores in Japan. Aggressive growth plans had hoped to see the number of stores in Japan reach 1,000 by 2007. Same store sales have declined for 20 consecutive months because of intense competition in a crowded market. The company is now looking to cut costs by opening new stores at a slower pace and curbing office costs. New store openings will be reduced from 120 this year to 80.
Financial Times, on Headlines from Mintel

Retail & Company News
Biscuits arm lets down Northern Foods
Northern Foods reported a 7.9% growth in convenience food sales, but revealed that a disappointing showing from its biscuits division will hit grocery performance in the 1st half.
In the 12 months to 31 March, 2003 pre-tax profit before goodwill amortisation and exceptional items dipped 3.5% to £97.5m, down from £101m the previous year. Northern Foods, which produces own label ready meals, quiches and desserts for leading retailers such as Marks and Spencer, added that sales from continuing operations rose 5% to £1.42 billion.
Grocer Today, on Headlines from Mintel

Retail & Company News
Princes Foods joins forces with Slimming World to launch range of tuna products
Princes Foods is teaming up with Slimming World to launch a range of tuna products. It is the first time the slimming club has teamed up with a food brand.
Marketing Week, on Headlines from Mintel

Products & Brands
New cordial, well-being drinks
Thorncroft has unveiled two new cordials in Carnival and Gingko flavours, forming part of its well-being range.
Design Week, on Headliners from Mintel

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