N UTRITION BUSINESSEFSA’s unexpected, first-ever approval of a weight-management claim for a...

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N EW N UTRITION BUSINESS www.new–nutrition.com NOVEMBER 2010 ISSN 1464-3308 VOLUME 16 NUMBER 2 THE JOURNAL FOR HEALTHY EATING, FUNCTIONAL FOODS & NUTRACEUTICALS Pages 10-12 Continued on page 3 Pages 17-19 Pages 13-16 Companies have become accustomed to the European Food Safety Authority (EFSA) almost routinely rejecting proposed health claims. Certainly the most recent batch of health claim opinions – published on 19 th October – maintains EFSA’s tradition of a 90% rejection rate. However, although it’s not often that something good comes out of the EU’s health claims process, on this occasion – incredibly – there might be something positive to say. Buried in the EFSA dung-heap is a nugget of gold that may help product developers who have the imagination and creativity to do something with it. The nugget is EFSA’s unexpected, first-ever approval of a weight-management claim for a specific food ingredient. The ingredient approved is glucomannan, better known as konjac fibre. The EFSA review panel concluded that it agreed that a cause and effect relationship has been established between the consumption of glucomannan and the reduction of body weight and it authorised the proposed health claim: Glucomannan contributes to the reduction of body weight in the context of an energy-restricted diet. Many companies that have been experimenting with weight management products – such as those based on bre and proteins for satiety, which are now not approved by EFSA to make a satiety claim – suddenly are faced with a unique opportunity to do something in weight management with a claim that’s EFSA-approved. It’s worth noting that when the cholesterol- lowering brands such as Benecol, Danacol and Becel got EFSA’s approval for their health claims, marketers began using terms such as “EU approved” in print and radio advertising – and in many markets sales went up markedly. Not only does konjac now have a unique claim, the clinical evidence is that it actually works, so enabling consumers to “feel the benet” – something now well-established as a key success factor in the business of food and health. Konjac bre will be unfamiliar to many product developers, but it is already used in many foods as a gel or thickener (it’s described as E425 on many product labels). It’s a soluble bre derived from the root of the konjac plant – enabling marketers to communicate a “natural plant extract” message of the kind that has already worked well for many ingredients. Konjac forms a viscous, gel-like mass in the stomach when hydrated and this is clinically proven – certainly to the satisfaction of EFSA’s near-pharmaceutical standards of clinical proof – to induce a sense of satiety leading to a decrease in subsequent energy intake. In order to obtain the claimed effect, 3g of glucomannan should be consumed daily. “I believe the EFSA decision will help enormously to put konjac in a better light,” says Ross Campbell of CyberColloids, a company which provides expert help with innovation for companies using and making hydrocolloids. He adds: “It will certainly encourage food formulation work and I think An American brand called NeuroTrim is one of the few brands in Europe already offering a weight management benefit based on the presence of konjac. Weight management surprise win in EU health claims lottery By Julian Mellentin Science gives beetroot brand a superfood boost A 40-year overnight success story Mass-market probiotic juice ready for global rollout

Transcript of N UTRITION BUSINESSEFSA’s unexpected, first-ever approval of a weight-management claim for a...

Page 1: N UTRITION BUSINESSEFSA’s unexpected, first-ever approval of a weight-management claim for a specific food ingredient. The ingredient approved is glucomannan, better known as konjac

N E W N U T R I T I O N

B U S I N E S Swww.new–nutrition.com NOVEMBER 2010 ISSN 1464-3308VOLUME 16 NUMBER 2

T H E J O U R N A L F O R H E A L T H Y E A T I N G , F U N C T I O N A L F O O D S & N U T R A C E U T I C A L S

Pages 10-12

Continued on page 3

Pages 17-19 Pages 13-16

Companies have become accustomed to the European Food Safety Authority (EFSA) almost routinely rejecting proposed health claims. Certainly the most recent batch of health claim opinions – published on 19th October – maintains EFSA’s tradition of a 90% rejection rate. However, although it’s not often that something good comes out of the EU’s health claims process, on this occasion – incredibly – there might be something positive to say.

Buried in the EFSA dung-heap is a nugget of gold that may help product developers who have the imagination and creativity to do something with it. The nugget is EFSA’s unexpected, first-ever approval of a weight-management claim for a specific food ingredient.

The ingredient approved is glucomannan, better known as konjac fibre. The EFSA review panel concluded that it agreed that a cause and effect relationship has been established between the consumption of glucomannan and the reduction of body weight and it authorised the proposed health claim:

Glucomannan contributes to the reduction of body weight in the context of an energy-restricted diet.

Many companies that have been experimenting with weight management products – such as those based on fi bre and proteins for satiety, which are now not approved by EFSA to make a satiety claim –

suddenly are faced with a unique opportunity to do something in weight management with a claim that’s EFSA-approved.

It’s worth noting that when the cholesterol-lowering brands such as Benecol, Danacol and Becel got EFSA’s approval for their

health claims, marketers began using terms such as “EU approved” in print and radio advertising – and in many markets sales went up markedly.

Not only does konjac now have a unique claim, the clinical evidence is that it actually works, so enabling consumers to “feel the benefi t” – something now well-established as a key success factor in the business of food and health.

Konjac fi bre will be unfamiliar to many product developers, but it is already used in many foods as a gel or thickener (it’s described as E425 on many product labels). It’s a soluble fi bre derived from the root of the konjac plant – enabling marketers to communicate a “natural plant extract” message of the kind that has already worked well for many ingredients.

Konjac forms a viscous, gel-like mass in the stomach when hydrated and this is clinically proven – certainly to the satisfaction of EFSA’s near-pharmaceutical standards of clinical proof – to induce a sense of satiety leading to a decrease in subsequent energy intake. In order to obtain the claimed effect, 3g of glucomannan should be consumed daily.

“I believe the EFSA decision will help enormously to put konjac in a better light,” says Ross Campbell of CyberColloids, a company which provides expert help with innovation for companies using and making hydrocolloids. He adds: “It will certainly encourage food formulation work and I think

An American brand called NeuroTrim is one of the few brands in Europe already offering a weight management benefit based on the presence of konjac.

Weight management surprise win in EU health claims lottery

By Julian Mellentin

Science gives beetroot brand a superfood boost

A 40-year overnight

success story

Mass-market probiotic juice

ready for global rollout

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LEAD STORY

1,3-4 Weight management surprise win in EU

health claims lottery

EDITORIAL

5-7 Innovating beyond consumers’

imaginings

8 Europe keeps up the pace of health

claim rejections

CASE STUDIES

9 REGULATION: Science key to new

world of claims

10-12 INNOVATION: Mass-market probiotic

juice ready for global rollout

13-16 INNOVATION: A 40-year overnight

success story

17-19 INNOVATION: Science gives beetroot

brand a superfood boost

20-21 START-UP: Cracking the code for

protein drinks

22-23 SNACKING: From bog fruit to big fruit

NEW PRODUCTS

24-27 Functional & healthy-eating new

product launches

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28 Use NNB as a Powerpoint

29 Listen to the audio file of NNB

IMPORTANT NOTICE

30 A polite reminder to our subscribers

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31 Fiber for digestive health

32 3 Beverage Reports

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Beet It ........................ 5,6,7,17,18

Craisins............................... 22,23

CyberColloids ........................... 1

Danone ............................... 10,11

Dr Pepper Snapple Group ........ 9

Gefilus .................. 5,6,7,10,11,12

Glaceau Vitaminwater .............. 9

James White Drinks ........... 17,18

MannanLife .............................. 6

Marlow Foods ................ 13,14,15

Nestlé ......................................... 9

NeuroTrim .......................... 1,3,4

Ocean Spray ...................... 22,23

Otsuka Foods’ My Size ............. 3

Pom Wonderful ......................... 9

Premier Foods .................... 15,16

Provita ................................ 20,21

ProViva .............................. 10,12

Quorn ............. 5,6,7,13,14,15,16

Unilever ..................................... 9

Valio ..................... 5,6,7,10,11,12

Wildwood .................................. 3

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N E W S A N A LY S I S

yoghurt and beverages is an obvious place to start.”

As far as we can see, very few companies will immediately benefi t from the EFSA claim approval. One that will is the maker of NeuroTrim, a fl avoured water with green tea and caffeine that delivers 1g of konjac per 430 ml bottle (said by the maker to be the equivalent of 20g of regular fi bre) and is marketed with label claims as follows:

Weight loss support

Healthy weight loss

Be lean and healthy…with modern science’s greatest blend of natural weight loss support.

NeuroTrim is a US-based brand currently retailed in the UK in the upscale chain Waitrose and through the Ocado home delivery service, between them with a 5% grocery market share, as well as independent stores. It excels at “lifestyle” marketing and has successfully teamed up with a number of celebrities, including Justin Timberlake.

On the down-side, because konjac fibre absorbs water and swells up, it’s not suitable for use in candies, capsules and the like because of the risk it can swell up and cause choking. It’s better suited for use in dairy and beverages or in noodles – in Japan konjac fibre is the main constituent in shiritaki noodles.

COMMENT

Whoever is fi rst to market will need to rely on more than the health claim to succeed – a product with excellent taste, packaged in a convenient format and supported by a weight management programme, such as that used by Kellogg in connection with its Special K brand, will all be critical success factors.

To make the most of this nugget will require innovation in product format, packaging and marketing to achieve truly differentiated products, but for anyone willing to make the effort, the opportunity is there.

Konjac is effectively unknown in the European market, and for that reason most product developers will simply ignore EFSA’s ruling as an irrelevance to them. Another reason that companies will ignore the konjac claim approval is that they will have their sights firmly fixed on a particular ingredient that has occupied their attention in recent years, and what happens all too often is that if that particular favoured ingredient doesn’t

get its claim approved then the companies focused on it plunge into a depression about the future of innovation in Europe and downgrade health benefits in their strategy.

That is a common reaction in our industry – and it is the wrong one. Key to success in business, as on the battlefield, is to be able to react quickly to events and seize new and unexpected opportunities. The approval of a weight management claim for konjac fibre is just such an opportunity, to create products that will be unique in food and beverage in Europe in being able to describe their weight management benefit as “clinically proven” and “EU approved” and so steal significant competitive advantage – an advantage

which will widen as products whose weight management claims are not approved (and in Europe, that’s going to be most of them) are forced to drop their marketing claims.

As an industry, we have been loud in our complaints over the last year that the EFSA health claim process is crushing innovation in Europe. Those complaints are justifi ed.

But when, out of the blue, EFSA presents us with unexpected opportunities to use health claims, then product innovators need to seize the opportunities with both hands. The opportunities may not be the ones you had planned for your business, but what in life runs according to plan?

Continued from front page

Wildwood, America’s biggest tofu manufacturer, has marketed its Pasta Slim fettucini, an Italian version of noodles, since 2008. The product is based on konjac fl our.

In Japan Otsuka Foods recently launched My Size, which offers small single-serve portions in a fl exible pouch. Manan Rice offers Manan Hikari, a konjac product resembling rice developed by the company. It has a 40% reduced calorie content compared to regular rice and contains digestive fi bre equivalent to the amount contained in three heads of lettuce.

Ingredients: Konjac product (starch, polydextrose, refi ned konjac fl our, honey powder), rice, brassica campestris (rapeseed) seed oil, salt, polysaccharide thickener, trehalose, calcium gluconate, pH neutralizer, seasonings (organic acid)

Nutrition: Per 150g serving: Energy 143kcal, Protein 1.1g, Fat 0.8g, Sugars 31.5g, Dietary fi bre 9.9g, Sodium 87mg (Salt Equivalent 0.2g)

KONJAC HAS APPLICATIONS IN MEALS AND SIDE DISHES

Source: Mintel GNPD

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CHART 2: KONJAC IN JAPAN

The market for konjac fibre products targeting weight management in Japan has been shrinking after it was revealed that a 21-month-old Japanese boy had choked to death on a frozen konjac jelly from the company MannanLife.

MannanLife today markets a fruit jelly in a pouch under the brand name Konjac Batake. Launched in 2008 it achieved annual sales of JPY1 bn ($12.3m/€8.85m). Even though the company suffered from the sales decline that followed the choking incident, the popularity of the brand still remains. Having focused on advertising in a series of TV commercials, and gained an approval as FOSHU (Food for Specified Health Use) in September 2009, the brand’s sales are expected to achieve estimated annual sales of JPY2.8bn ($34m/€25m).

Product name Konjac Batake Portion Type(5 flavours), Konjac Batake Crushed Type Light (4 flavours, FOSHU approved)

Sales Channel Supermarkets, convenience stores, online

Price 150 yen ($1.80) per 150g pouch

Format Jelly drink

Fiber content 5g per serving(150g) for regular one, 6.7g per serving for Light version

Ingredients

high-fructose corn syrup, polydextrose, galacto-oligosaccharide, Grape fruit juice, liqueur, Konjac powder, gelation agent(polysaccharide thickener), acidulant, Flavouring, calcium lactate, sucralose

RDA -

Features/catch copies

  Make Belly Happy

  Convenient and Tasty way to eat Konjac (Dietary Fiber)

Website http://mannanlife.co.jp/ 

Crushed Type is approved as FOSHU in 2009.

Crushed Type Light

Portion Type

Source: Global Nutrition Group Tokyo

CHART 1: NEUROTRIM INGREDIENTS AND NUTRITION FACTS

NeuroTrim Herbal Extract Beverage is said to be formulated to support weight loss. The non carbonated beverage only contains 37 calories per bottle and is free from artificial colours and flavours. It retails in a 430ml bottle.

The brand has excelled at gaining celebrity endorsements.

Ingredients & Nutrition Facts

Ingredients: Filtered water, crystalline fructose, soluble fiber (from konjac), citric acid, malic acid, natural flavors, preservatives (sodium benzoate, potassium sorbate), sweetener (sucralose), stabilisers (gum acacia, glycerol ester of wood rosin), proprietary ingredients (caffeine, green tea)

Nutrition facts: Per 430ml serving: Energy 154kJ/37kcal, Protein 0g, Carbohydrate 9g (of which Sugar 9g), Fat 0g (of which Saturates 0g), Fibre 1g, Sodium 0mg, Konjac Fiber 1,000mg, Caffeine 50mg, Green Tea 20mg

Continued from page 3

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E D I T O R I A L

This month we take as our prism for thinking about innovation the work of the late CK Prahalad, one of the most influential business thinkers and writers (see references on page 7) of the past 20 years and also Professor at the Stephen M. Ross School of Business at the University of Michigan. The case studies of Gefilus Juice (page 10), Quorn (page 13) and Beet It (page 17) taken individually and together illustrate what the late professor would have viewed as best practice in innovation.

Prahalad authored many works jointly with Dr. Gary Hamel and together they originated the concept of core competencies, which is now hard-wired into how many companies think. In a paper they wrote together called Corporate Imagination and Expeditionary Marketing, they wrote that: “A company must also have the imagination to envision markets that do not yet exist and the ability to stake them out ahead of the competition.”

For companies such as Apple, Microsoft, Nokia and Google, it is this willingness to envision new markets and create them that has been key to their success. And the same willingness to envision that which does not

yet exist and then to create it is also key to success in food and beverages, as Quorn and Valio – the Apple and the Nokia of our industry – have demonstrated. The former created a new type of protein and built a $270 million brand based on this technology, the latter pioneered probiotic dairy and went on to give birth to a new market for probiotic fruit juice.

Unfortunately, the willingness – or perhaps the ability – to envision the new and then create it is all-too-rare in the food and beverage industries. Marketers, often highly risk-averse, fear doing anything that cannot be justified by consumer research – yet there was no consumer research which could have guided anyone to create a new protein (Quorn), create new markets for probiotic dairy and juice (Valio), or reinvent the beetroot as a sports and heart-health drink (Beet It). All of these innovations required a leap of imagination and a leap of faith – backed by the persistence to make faith into a reality.

The strategies of these three companies are a stark contrast to the practices of 95% of the food and beverage industry. Mostly

managers choose to deliver one close-to-the-core-business line extension after another, persuading themselves that they are innovating, all the while steering as far away as they can from anything that looks like risk. And yet, according to researchers as diverse as Mintel and PriceWaterhouseCoopers, less than 5% of new products from our industry can actually be classified as innovative in any way. Perhaps that is the reason why 90% of new product launches fail.

Prahalad and Hamel provide checklists which are a useful way of thinking about innovation. A short review of how Quorn, Valio and Beet It measure up against Prahalad and Hamel’s innovation checklist can be found in the table on page 6, and you should use them to measure your own company’s performance and compare them to the companies we have included.

Prahalad and Hamel outlined a number of elements which they described as essential for enabling the type of active corporate imagination which can envision and create the new. Here are three of them:

Escaping the tyranny of the served market. Instead of viewing every new

Innovating beyond consumers’ imaginings

continued on page 7

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E D I T O R I A L

STRETCHING THE CORPORATE IMAGINATION

Adapted from the original by Prahalad and Hamel, who believe that companies need to move from mostly operating under the logic in the left column to the logic in the right column, which is where our case study companies – Quorn, Valio and Beet It – can all be found.

THE OLD LOGIC THE NEW MIND-SET

SERVED MARKETS OPPORTUNITY HORIZONSValio: pioneered the probiotic market in Europe, with the first science-based product. Undeterred by geographic limitations and the small population (5 million) of its domestic market Valio expanded its horizons to include the whole world, licensing its probiotic technology for use in dairy products in 35 countries. Now it is creating a new horizon by taking its probiotic technology into fruit juice.Quorn: a new business, creating new markets – in ten countries – based on a new type of protein, derived from a new technology.Beet It: an apple juice-pressing company focused on “taste and quality” moves far beyond its traditional business by embracing a new vegetable juice opportunity created by science.

DEFENDING TODAY’S BUSINESS CREATING NEW COMPETITIVE SPACEValio: created a new probiotic dairy business, now creating a new probiotic fruit juice business – all incremental sales and profits to its traditional milk and yoghurt and cheese business. Quorn: had no pre-existing business, it exists to create a new market. Beet It: decided not to be limited to its traditional core business, it is creating a new market and incremental sales.

THE COMPANY IS A PORTFOLIO OF BUSINESSES

THE COMPANY IS A PORTFOLIO OF CORE COMPETENCIESValio: competence in clinically-proven probiotic dairy technology which it deploys around the world, as well as probiotic supplements and now probiotic fruit juice. The company also has a competence in zero-lactose milk technology, which it is commercialising globally. Technology commercialisation is also a proven competence.Quorn: competence focused in fermenting myco-protein and processing it in innovative ways, using technology, to create convenient foods that consumers can accept.Beet It: developing a competence focused on the all-natural benefits of beetroot juice, its benefits, and delivering it in convenient format, thanks to its skills as a fruit-processing and marketing business.

FOLLOWING CUSTOMERS LEADING CUSTOMERSValio: leading customers to probiotic dairy and juice, creating new markets.Quorn: leading consumers to a new type of protein, by making it good-tasting and highly convenient.Beet It: leading customers to the new idea of drinking beetroot juice for lower blood pressure or better sports performance.

MAXIMISE THE HIT RATE MAXIMISE LEARNINGValio: has acquired massive know-how over the last 20 years both in technologies and markets, which it continues to develop and apply. Learnt how to create new markets (such as probiotic juice) and develop new packaging formats (shots).Quorn: has learnt how to effectively take its new protein to market in multiple countries.Beet It: a small company embraces science and goes into an entirely new and unfamiliar field, learning with enthusiasm about its new customers and embracing new types of packaging, such as the 70ml concentrated dose, which most larger companies lack the courage to adopt.

COMMITMENT = INVESTMENT COMMITMENT = PERSISTENCEPersistence is the skill with which corporates struggle the most, a result of the affliction of constantly seeking short-term profit growth. Yet it is perhaps the single most-important skill, providing the fuel that keeps everything moving forward. Persistence is essential for success in any field that involves science or technology; as Marie Curie said: “I was taught that the way of progress is neither swift nor easy.”Valio: more than 20 years of persistence, including a five-year or more period when it spent more developing its technologies and competences than it earned from them.Quorn: From an idea developed in the 1970s, commercialisation began in 1990 – more than 20 years of persistence.Beet It: a small company showing every sign of persistence in creating a new market.

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E D I T O R I A L

opportunity through the lens of existing businesses, managers must think outside of current boundaries and explore the white spaces which lie between existing businesses. This is where the core competency mindset helps.

In our industry this usually means “new category creation” – creating markets which are new to the companies concerned (as science-based probiotic dairy and probiotic juice was for a company like Valio, which prior to that was only a traditional dairy business in milk, yoghurt and juice) and indeed creating categories that are new to the consumer (as probiotic juice still is in most countries). This conscious decision to create a new market is what lies at the root of the creation of most of the biggest successes of the last two decades, from probiotic dairy to the energy drinks market and the success of brands like Red Bull.

Overturning traditional price/performance assumptions. Thinking about price and performance in linear terms limits the potential for radical innovation. Instead of using existing product concepts as the starting point for new product development, managers might do well to challenge existing assumptions in the category about price/product trade-offs.

In the case of Valio this meant marketing its Gefilus probiotic juice at a 30%-50% premium to its regular chilled juices – which proved no barrier to Gefilus gaining a 32% market share.

Beet It, the start-up, has not shrunk from creating a super-premium price product with its “concentrated dose” product – and has found that the elite athletes it targets are willing to pay a premium for an effective product.

Getting out in front of customers. “Simply being customer-led is not enough,” say Prahalad and Hamel. Particularly in categories that rely on technology, customers often can’t even imagine what is possible. Companies must lead customers where they want to go – before they even know it themselves.

Valio, Quorn and Beet It are all examples of companies creating product concepts that consumers did not know they needed. They are not led by consumer demand, they create consumer demand.

CK Prahalad has a message that is relevant to beverage companies who question the viability of the probiotic juice concept

that has now been so well proven by Valio in Finland and by the ProViva brand in Sweden: “With the tremendous turbulence and the speed with which industries are changing today, you can’t just sit around and wait. While high levels of profits from existing businesses are a must, companies need to be reinvesting in a consistent fashion to create new businesses, and new products, and to shape the pattern of market evolution. They need to imagine new markets for tomorrow, and to build new core competencies that will give them an advantage in those markets.”

In this case the turbulence will come from Danone’s decision to license both the ProViva technology and brand for global roll-out. The risk for beverage companies is that Danone will reinvent juice in the same efficient way it has reinvented – and so now dominates – the dairy cabinet with its probiotic brands such as Activia. Companies can’t sit around and wait for this to happen.

“Senior managers,” says Prahalad, “should therefore be spending less time looking inward and backward, and more time looking outward and forward. They need to be thinking about the implications of new trends and technologies, and about how their industries might be different in five or ten years. Of course, operational issues are important and legitimate – how to reduce overheads, how to respond to a competitor’s last move, how to improve quality or reduce cycle time – but unless you are growing new markets, new businesses, new sources of profit, you will find yourself on a treadmill, always trying to improve the ever-declining margins and profits from yesterday’s businesses.

All of our case study companies have also behaved in ways that score well on another of Prahalad’s points. He says: “It’s not enough to imagine the future – you also have to build it. Many companies have had incredible industry foresight, but they lacked the capacity to execute it. In order to build the kind of future business which you have imagined, you need to develop this capacity for execution. You need to make a strategic blueprint for turning the dream into reality – a link between the present and the future. You need to carefully work out which new competencies you should be building, which new customer groups you should be trying to understand, which new distribution channels you should be exploring, in order to create a winning position for yourself in a new opportunity arena.”

And finally, our chosen companies also meet all of the following criteria:

“Two things seem to characterize most of the companies that succeed in capturing future opportunities. First, they have aspirations which lie outside the resource base of the company, and they manage to stretch and enlarge their resources in order to succeed in this new market. Second, successful companies have come to a view of the future that provides a sense of direction, a sense of common purpose, a sense of destiny, a single-minded and inspiring challenge which commands the respect and the allegiance of every person in the organization. The role of senior management is to make sure that the company develops this broad aspiration, and in addition that it is clearly articulated, understood and continuously reinterpreted. Every two or three years, management should again interpret its aspiration and say, ‘This is what it means to us in the next two years’, so the challenge is always renewed but the overall strategic intent remains consistent.

“Go back and look at the Fortune 500 or the Fortune 100 over the last 50 years, and ask yourself how many companies have disappeared from the list, and what the survivors do to stay in that league. You will find that they are continually looking forward, not backward. They are continually changing the rules of competition, rather than following the accepted rules. They are regularly defining new ways of doing business, pioneering new product concepts, building new core competencies, creating new markets, setting new standards and challenging their own assumptions. They are taking control of their future. You can’t do that if you are not willing to change and to move from where you are today. The opportunities are out there for everyone, but capturing new business opportunities is like shooting flying ducks – you can’t do it with fixed gun positions.”

To innovate successfully, you too must take your cues from companies like Valio Dairy, Quorn and even the start-up Beet It, and employ vision, purpose and flexibility to capture new opportunities.

SOURCES: Prahalad, C.K., and Hamel, Gary. 1990. “The Core Competence of the Corporation,” Harvard Business Review.Hamel, Gary and Prahalad, CK. 1991. “Corporate Imagination and Expeditionary Marketing,” Harvard Business Review.

continued from page 5

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The European Food Safety Authority (EFSA) is clearly still on top form and in its most recent batch of health claim opinions, published in mid-October, it has sustained the impressive 95% health claim rejection rate which it has consistently achieved in the past.

One of the biggest losers from the latest batch of rejections is whey protein. Among the claims rejected were:

• consumption of whey protein and a sustained increase in satiety leading to a reduction in energy intake.

• consumption of whey protein and contribution to the maintenance or achievement of a normal body weight.

• the claim “supports a gain in lean body mass during periods of energy restriction”

• The claims: “promotes protein synthesis when taken after resistance exercise”, “supports an increase in lean body mass when combined with exercise and a hypercaloric diet”, “muscle mass maintenance in the elderly” and “muscle strength and body composition”. EFSA ruled that no cause and effect relationship had been established between the consumption of whey protein and these benefi ts.

• The claim: “supports a decrease in body fat when combined with exercise and a hypocaloric diet”.

• For the claimed effect of increasing muscle strength, “no cause and effect relationship established between the consumption of whey protein during resistance training and an increase in muscle strength”.

• EFSA ruled that, “no cause and effect relationship has been established between post exercise consumption of whey protein and increase in endurance capacity during the subsequent exercise bout after strenuous exercise” nor for

consumption of whey protein and faster recovery from muscle fatigue recovery after exercise.

While it is clear that new evidence supporting some of these claims has come to light since the original health claim dossiers were prepared some years back and that some would be better substantiated now, the decisions still surprised some, with one research scientist specializing in protein telling New Nutrition Business, on condition of anonymity, that rejecting a satiety claim for whey protein was “very hard to understand. It’s the one thing you can say with complete confidence that whey protein does.”

The same researcher also expressed surprise that EFSA rejected claims that whey protein does not help maintain muscle mass in the elderly or support muscle strength in this group, since whey protein has long been used extensively in clinical nutrition for precisely these benefits.

Whey protein manufacturers are likely to submit fresh health claim applications under article 13.5 of the EU health claims regulation.

Another area where industry interest is high but where EFSA stuck to its policy of rejecting claims is less surprising, that of cocoa fl avanols. Claims relating to “antioxidant properties” and “oxidative stress reduction” were rejected (“a cause and effect relationship has not been established between their consumption and “vascular health” and maintenance of normal blood pressure”).

Unsurprisingly, industry is again questioning EFSA’s process and whether it is following the criteria for a review of the totality of the evidence that the regulation was supposed to have put in place.

“A rejection rate of 95% calls into question whether the criteria applied are appropriate,” said Professor Dr Markwart Kunz, president of the Federation of European Specialty Food Ingredients Industries (ELC), in a statement issued by ELC.

One of the winners from the current batch of EFSA opinions was DHA, and the regulator has proposed the following wordings for permitted claims that can be used on

products on the European market:

• DHA contributes to the maintenance of normal blood triglyceride levels - subject to 2g per day of DHA consumed in one or more servings.

• DHA contributes to the maintenance of normal brain function – for foods that contain 250 mg of DHA in one or more servings.

• DHA contributes to the maintenance of normal vision – for foods that contain 250 mg of DHA in one or more servings

Just how exciting these claims are to marketers and to consumers – and whether they will have any effect on sales of DHA-fortifi ed products on the European market – is another question altogether. While DHA producers are upbeat, the evidence from countries such as Canada, where claims such as these have been permitted for some years, is that brands making these claims sell only on a niche basis. Certainly Danone used the second of these three claims on its Danonino children’s yoghurt brand in Canada for the past three years, with limited results, such that Danone has not taken the concept into other markets.

Sometimes commentators say that the success of a functional food or beverage is only as good as its health claim. That’s actually not correct – often the health claim makes no difference at all to whether consumers buy a product. Taste, packaging design, the credibility of the product format, the amount of the product that needs to be consumer to get the “dose” the person needs – and whether the consumer sees the benefi t as being relevant to them are all more important factors. In Europe DHA products have already struggled with all of these factors, particularly taste (most DHA products have poor taste) and product format (DHA-fortifi ed dairy is rejected by most consumers). The approval of a few health claims that say nothing stronger than “contributes to the maintenance of ” isn’t going to make any difference to these bigger factors.

Europe keeps up the pace of health claim rejections

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R E G U L AT I O N C A S E S T U D Y

The recent spate of US-government censures of health claims by beverage brands reflects a shift toward a more aggressive regulatory regime. So drink brand marketers and their advisors are busily trying to adapt by backing off the boldest claims for nutritional attributes of their products that may be only marginally supported by science.

The government also hints that it may specifically try to prevent makers of carbonated soft drinks from making health claims for those beverages no matter how they might nutritionally enhance the drinks.

Within the first two years of the Obama administration, in fact, the interplay between agencies such as the Food & Drug Administration, the Federal Trade Commission and beverage marketers has almost completely flipped in tone and practice from the days of the Bush administration, when food and drink manufacturers were continually pushing new health-claims language to regulators’ desks for approval.

“It’s a new world in Washington, D.C.,” said Cathy Kapica, senior vice president of global health and wellness for Ketchum, a marketing-communications firm that advises several big food and beverage companies, noting that FDA Commissioner Margaret Hamburg, Obama’s appointee, “doesn’t let the grass grow under her feet.”

Kapica added: “There is unprecedented cooperation between agencies that, in the past, tended not to be too cooperative. All of these guys are working together to move issues forward.”

Other observers were more critical: “A lot of these regulators are inherently hostile to or mistrustful of business and will do anything they can to make it more difficult,” maintained Brian Wansink, director of the Food & Brand Lab at Cornell University and President George W. Bush’s appointee three years ago to head the 2010 revision of the government’s Dietary Guidelines.

“It’s not necessarily out of looking out for the consumer, either; it’s more out of a dislike they have for business and for food companies.”

“Regulations used to be part of how we viewed the industry,” said Tom Pirko, an Obama supporter and the president of Bevmark Consulting, a consultancy that advises many of the world’s top beverage brands. “But now there is a decided accent,

and it’s called politics. We didn’t have that before.”

Consider:• The FTC sued Pom Wonderful in

October, saying that the Los Angeles-based company’s studies don’t back up its earlier advertising claims that the juice can improve heart and prostate health and treat erectile dysfunction. Pom CEO Lynda Resnick pushed back, accusing the agency of going “crazy” on the issue. But the company already has switched its advertising emphasis to the sex appeal of pomegranates instead of health.

• The FDA scored Dr Pepper Snapple Group in September, objecting to the use of the word “enhanced” rather than “more” to describe the inclusion of 200mg of antioxidants from green tea and vitamin C in the company’s Canada Dry Green Tea Ginger Ale.

• The agency targeted Unilever’s Lipton Green Tea 100% Natural Naturally Decaffeinated, arguing that Unilever was establishing the drink as a “drug” by citing studies in its marketing referring to the cholesterol-reduction benefi ts of tea and tea fl avonoids.

• In July, Nestlé HealthCare Nutrition agreed to drop claims about the health benefi ts of its popular children’s drink Boost Kid Essentials, as part of a settlement resolving the FTC’s fi rst case challenging advertising for probiotics.

A number of other factors are also in play that contribute to greater regulatory attention to beverages than to foods.

One is increasing government and societal concern over childhood obesity, such as the anti-obesity campaign of First Lady Michelle Obama. Carbonated soft drinks have emerged as a particular villain in many of these efforts, including scattered state- and local-level efforts to tax such drinks.

“There’s also the fact that data continues to come out that shows calorically sweetened beverages are a big contributor to excess calories, particularly among kids,” explained Kapica, the former top nutrition-marketing executive at McDonalds. “Beverages are

being looked at very carefully now [by regulators] because in many cases they’re considered non-essential.”

And in its language in the letter to Dr Pepper Snapple Group, the FDA intimated even sharper attention to health claims being made by carbonated beverages. “FDA does not consider it appropriate to fortify snack foods such as carbonated beverages,” the agency wrote.

Regulators are also watching the tightening health-claims standards in Europe. “It’s a new world everywhere, actually,” Kapica said. “On a global basis, we’re seeing stricter and tighter controls around what can be said, including health claims that we almost had taken for granted.”

In turn, more aggressive regulators are encouraging plaintiffs’ attorneys to consider food and beverage health claims as more vulnerable targets. Coca-Cola’s Glaceau Vitamwater, for instance, has been sued by the activist Center for Science in the Public Interest over allegedly unsubstantiated claims that Vitaminwater reduces the risks of chronic disease and eye disease, promotes healthy joints and supports immune function.

Kapica said that Ketchum is advising clients, among other things, to “focus on reducing the caloric content of their beverages” and “showcasing” such changes. Of course, beverage makers have been doing that apace, including as part of the commitment made three years ago by member companies of the Alliance for a Healthier Generation, a not-for-profit joint venture of the American Heart Association and the William J. Clinton Foundation.

The companies committed to removing full-calorie soft drinks from schools across the country and replacing them with lower-calorie, smaller-portion beverages. As a result there was an 88% reduction in calories from beverages shipped to schools since 2004, the Alliance reported earlier this year.

Also, Kapica said, “This is an environment where you need to have science – and good science – to back up any [health] claims. That doesn’t mean one unpublished, or even published, study. The overarching thing we’re seeing happening here is that there is new government skepticism around marketing claims that aren’t based in good science or exceed the base of the science.”

Science key to new world of claims

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Far-sighted juice drink producers are casting about to find whether they can get their own probiotic fruit juice to market ahead of French dairy giant Danone. The flurry in the world of juice drinks has come in the wake of Danone’s announcement that it plans to commercialise, worldwide, a probiotic juice using Swedish science company Probi’s L. plantarum 299v probiotic strain and the successful fruit juice ProViva, marketed in Sweden since 1994 (see New Nutrition Business September 2010).

A few senior juice industry executives are rightly fearful that the French dairy giant will redefine and dominate the chilled juice cabinet with the same ruthless efficiency with which it has redefined the health section of the dairy cabinet.

Looking for a rival probiotic juice technology, companies have found that for credible, proven products backed by clinical evidence the best – indeed only – place to go is to Valio Dairy, the Finnish dairy company whose successful technology innovations have helped make Finland the Silicon Valley of functional foods.

Valio is one of the pioneers in probiotics and has consistently proven itself to be farsighted – and successful – in creating and commercialising new technologies. The achievement is made all the more impressive by the fact that Valio is a farmer-owned co-operative operating in one of the remotest corners of Europe in a country with a population of just 5 million people. But on the other hand, perhaps it isn’t surprising. Finland is also the country that produced mobile phone giant Nokia, is a world leader in forestry and paper technology, and in health ingredients also produced such global successes as Xylitol and Benecol, to name just two. This small country’s excellent education system – internationally ranked alongside Japan’s as the best in the world – might help

explain why one small country can be so innovative.

In the early 1980s farsighted people in Valio believed that probiotic bacteria offered considerable commercial potential – a radical idea at the time. So the company started asking around the dairy experts at Finland’s universities looking for opportunities for co-operation. This route drew a blank, but Valio did learn about a human probiotic strain that had been isolated in the US. The strain was Lactobacillus rhamnosus GG ATCC 53103, which had been isolated from a healthy human.

The scientific minds behind Lactobacillus GG are two Americans, Dr Sherwood Gorbach and Dr Barry Goldin (hence GG) both of Tufts University, who discovered the strain in the early 1980s. In 1987 Valio signed a worldwide licensing agreement for the rights of Lactobacillus GG with Gorbach and Goldin. LGG is the trade mark of Valio

for Lactobacillus GG, which is also a patented strain. Valio holds world-wide commercial rights for LGG.

Thanks to heavy scientific investment by Valio in the years following, Lactobacillus GG today has the most extensive scientific background of all probiotics in the world, with over 500 clinical studies published. LGG’s credibility got a significant early boost when, in 1996, a yogurt brand based on LGG, called Onaka-He-GG!, produced by Takanashi Milk Products, became the first probiotic food ever to be granted the FOSHU seal of approval in Japan.

Valio launched the first LGG-based dairy product in its domestic market in 1990. Called Gefilus, it was the first clinically-backed probiotic consumer product on the European market – four years ahead of the debut of Danone and Yakult.

Since then the Gefilus brand has grown and grown and has been extended to a

Mass-market probiotic juice ready for global rollout

The juice drink market looks set to be transformed, worldwide, by the advent of probiotic products. One of the pioneers in the field is innovative Finnish dairy company Valio, which has spent the past decade turning its probiotic juice drink brand into a major success. Valio now ready to use the same model which has proven so successful for the company’s dairy probiotics, taking its technology to market through a network of global partnerships. By JULIAN MELLENTIN.

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wide range of products for almost every dairy consumption occasion, such that per capita consumption of Gefilus in Finland is over 6kg – arguably the highest per capita consumption of probiotic products in the world.

Gefilus products carry an immune health claim, which translates as a “strong dose of immunity”. LGG’s claim will be reviewed by the European health claim regulator in 2011, but with 518 clinical studies, it would be surprising if even European regulators – who thus far have rejected 90% of health claim petitions – can find fault.

Impressively, when Finnish consumers are asked which brands do most to help daily well-being, they rank Gefilus in fourth place – just behind Nivea face cream, ibuprofen and the Lumene cosmetic brand and ahead of L’Oreal (and far ahead of Danone Activia).

Valio has not only commercialised LGG in products in its domestic market but has excelled at commercialising its technology globally – LGG can be found in dairy products in 35 countries, including some of the most successful probiotic brands, such as Emmi Aktifit in Switzerland and Campina’s Vifit in the Netherlands, the Unimilk brand in Russia, the Parmalat Vaalis brand in Australia (that country’s biggest probiotic brand), as well as in supplements in 33 countries.

In fact Valio is something of a role-model for good technology commercialization: the company has also developed patented true lactose-free milk (in response to the needs of the Finnish market, where 15% of consumers are medically lactose intolerant) and rolled out this technology globally too.

PROBIOTIC JUICE INNOVATION

While many dairy companies have limited their innovation to dairy products, Valio has always been more open-minded and – along with Swedish company Skåne Dairy – was one of the first to spot the potential of probiotic fruit juice.

Valio launched its Gefilus probiotic juice in Finland in 1997. Well-supported with advertising and promotions – and delivering an effective benefit – by 2010 Gefilus juice had taken an impressive 32% share of Finland’s chilled juice market, becoming the country’s biggest chilled juice brand.

“In value terms Gefilus juice has become the market leader,” explains Kalle Leporanta, export manager at Valio Dairy Innovative Concepts & Technologies. “In ten years

Gefilus changed the structure of the market, becoming the leading brand despite being a premium juice in a premium market. The effect has been to increase the value of the chilled juice market in Finland.”

Gefilus’s ascent to market leadership was achieved despite selling at a premium. Regular juices, such as Valio Orange juice, typically retail for around €1.09 per litre ($1.51). Valio Gefilus sells at a hefty 100% premium, at €2.05 ($2.83) per litre, although this is still a much lower price than a super-premium brand such as Pepsi-owned Tropicana, whos regular orange juices retail for around €2.95 a litre ($4.07).

The Finnish chilled juice market has a volume of approximately 30 million litres and a retail sales value of around €45 million. The ambient market is much larger, with a volume of 80 million litres and a retail value of €120 million. Taking the two together Gefilus probiotic juice has a 10% value share of the entire Finnish juice market.

When you consider that Finland has a population of just 5 million, you realise that if Finnish per capita consumption of Gefi lus Juice was translated pro rata into a larger country, such as the US, it would be a $800 million (€600 million) annual-sales brand.

Gefi lus comes in multiple fl avour variants, of which the best-selling are Five Fruits and Pineapple-Carrot (see picture on page 10).

The juice range was extended in September of this year with the launch of a 100ml fruit shot, sold in a 4-pack priced at €2.60 ($3.59) per pack, equivalent to €6.50 per litre. It is available in banana-apple-passionfruit-orange-mango flavour.

The idea for the product was stimulated to an extent by the relative success in Finland of Danone’s Actimel 100ml dairy drink for immunity.

“As we have a lot of technology and know-how in the company it made sense,” says Leporanta. “We are trying to make a point of difference from Actimel with probiotic fruit shot and there is also the logic of an alternative to dairy.”

The launch of the shot – sales of which are reportedly going to plan so far – gives another string to Valio’s bow when it comes to commercialising its probiotic fruit juice technology internationally.

“It’s clear that suddenly there’s a lot going on in this field,” observes Leporanta. “For ten years we have been proving the concept in the Finnish market and we have kept a low profile. But now we are activating ourselves. We have learnt many valuable lessons from

building up the international network of licensing agreements for LGG in dairy and that puts us in a good position to work with the juice drink companies and bring them a related but different area of expertise.”

COMMENT: PROBIOTIC FRUIT JUICE THE NEXT NEW CATEGORY

It’s clear that Danone intends to make a major success of probiotic juice drinks. Juice companies face the real possibility that Danone, with its track-record of excellent execution, will redefine the juice market just as it has redefined the dairy market with brands like Activia and Actimel.

As we have also said before in New Nutrition Business, it’s our belief that probiotic fruit juice is one category that can provide consumers with a viable alternative to dairy. Fruit juice is consumed everywhere, appeals to all types of consumers, has little or no negatives associated with it – especially now that product developers are so focused on lowering the calorific value and have an increasing arsenal of ingredients to enable them to do so – and it can be delivered in

INGREDIENTS: Mango puree, orange juice (from concentrate), apple juice (from concentrate), banana puree, passion juice (from concentrate), vitamin C, Lactobacillus rhamnosus GG, vitamin D

NUTRITION: Per 100g: Energy 231kJ/54kcal, Protein 0.4g, Carbohydrate 13g (of which Sugars 12g), Fat 0.2g (of which Saturated Fat 0g), Dietary Fiber <1g, Sodium 0g, Vitamin C 40mg (50% RDA), Vitamin D 1.5µg (30% RDA)

CHART 3: GEFILUS FRUIT SHOT INGREDIENTS AND NUTRITION FACTS

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highly convenient packages. Its convenience and taste appeal are advantages that few other categories can match. Moreover, in consumers’ minds fruit is a natural and credible vehicle for health messages.

It’s an opportunity that’s so-far under-exploited but, like all good ideas, the idea of probiotic juice drinks for digestive health is a very simple one and it is well-proven and has already been around for a long time – and as Gefilus has shown in Finland and ProViva has shown in Sweden, well-executed it can be very successful.

For every beverage company there is now a narrow window of opportunity to get its own, scientifically credible, probiotic juice to market – and possibly the only place to find that technology is Valio. Happily, Valio’s 20 years of experience of partnering with companies worldwide to roll out its LGG technology in dairy means that the company is well set-up to guide partners in the new probiotic juice market. The next two-to-three years will reveal which juice companies are truly innovative and willing to create this new market – and which are going to be the also-rans in health. It will be a crucial test of managements’ commitment to innovation and their ability to take innovation to market.

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CHART 4: THE RISE AND RISE OF GEFILUS PROBIOTIC TECHNOLOGY

Gefilus dairy products in Finland have grown steadily to over 35 million kg per annum.

0

5 000 000

10 000 000

15 000 000

20 000 000

25 000 000

30 000 000

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40 000 000Gefilus® total sales (kg)

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CHART 5: GEFILUS MARKET SHARE IN FINLAND

Biggest brands – market share (value)Chilled juices/fruit drinks (for household)

Source: Nielsen Consumer Panel, Finland (all purchase channels)

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The Gefi lus dairy brand has been established on the market in Finland for 20 years. It encompasses many formats and consumption of Gefi lus products is an amazing 6 kgs per person per year. The active ingredient, LGG, can be found in dairy product in 35 countries around the world, making Valio’s commercialisation of LLG one of the most successful examples of nutrition technology commercialisation in the food industry.

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Quorn boasts the perfect nutritional profile for today’s consumer – it contains no allergens, it’s low in fat and high in fibre, is an easily digestible protein that’s on a par with meat in terms of essential amino acid content – and it’s supported by a growing body of evidence that regular consumption can lower LDL cholesterol and promote a sense of satiety. What’s more, in a world in which demand for protein is on the rise and is forecast to outstrip supply, it’s a perfect source of high quality protein. And now this remarkable food technology is up for sale.

Quorn – one of the least well-known but most impressive success stories in the nutrition business and recognised as the single greatest food innovation of our lifetimes – has never been fully exploited. The only thing that has stood in the way of Quorn becoming “the fifth protein” is the hyper-conservatism and persistent failure of imagination of many senior food industry executives and, more recently, the fact that the technology fell into the hands of financially-driven companies which had no appreciation of the diamond in their hands.

Quorn had its genesis back in the late 1960s when it was widely believed that the 21st century would witness a protein shortage, with disastrous consequences. A number of food and chemical companies embarked on developing new proteins from bacterial or fungal sources, including the British-owned RHM food group, which successfully isolated an organism from soil – Fusarium sp. A3/5 – which could be processed into an edible protein, called mycoprotein. At the same time diversified chemical and pharma giant ICI (today known as AstraZeneca) was also developing fermentation technology to produce a protein for use in animal feed.

Seeing that their technologies were

complementary, the two companies formed a joint venture in the mid-1980s, today called Marlow Foods, with the goal of commercialising their science.

Although mycoprotein is from a natural source the fact that it had no history of human consumption meant that it had to go through a rigorous process of safety evaluation before regulators finally granted permission for its use in foods – in 1985, some 18 years after the development began.

ESCAPING THE COMMODITY INGREDIENT TRAP

Quorn didn’t get off to an easy start. The first launch was as an ingredient in a pie sold by UK retailer Sainsbury under its own label. Initially growth was slow. Then in 1990 the company launched Quorn pieces – cubes of Quorn – under its own brand, as an ingredient for home cooking.

It was a strategy that threatened to make Quorn a commodity and the partners behind

the technology realized that they were at risk of becoming a supplier of “just another ingredient in other people’s products”, which would make their success solely dependent on the skills of their partners – skills they could see were often lacking.

By 1993 Marlow had started on the path that would make Quorn more than just an ingredient, increasing its production capacity and bringing out an increasingly wide range of convenient and easy-to-prepare products which were launched in the UK and in almost one new country each year. Today the range encompasses over 32 items, both chilled and frozen, such as deli meats in a range of meat flavours and ready meals ranging from spaghetti bolognese to red Thai curry – as well as the more traditional meat-free options of sausages, burgers, mince and nuggets. As the range has widened and consumers have been presented with more choices in familiar flavours and formats, sales have steadily grown from just $5 million in 1993 to $269 million, at retail prices, in 2010.

A 40-year overnight success story

It’s been described by one senior food industry executive as “the greatest food innovation of the last fifty years”, while another has dubbed it “the first new food since the potato”. It’s on sale in 10 countries and has retail sales in excess of £170 million ($269 million/€194 million) and it’s a profitable business. Its massive potential in the Asian market has yet to be developed. So why, in an industry supposedly driven by innovation, has no company had the courage to fulfill Quorn’s potential? By JULIAN MELLENTIN.

The Quorn range extends to over 35 convenient products, marketed in 10 countries.

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The secret of Marlow’s success is in fact not the result of any one factor or “magic bullet” – in fact Marlow’s innovation manager Tim Finnigan calls it a “40-year overnight success story” – but rather the product of years of paying detailed attention to every aspect of its business. For example, Marlow underpins its position as the category leader by providing retailers with a category management service, monitoring sales of all other non-meat brands (Quorn is usually merchandised alongside chilled vegetarian foods) and recommends to retailers which ones to include in their chiller-cabinets in order to improve their sales in the category. This means that the company can both add value to its retailers and guide the development of the category in ways that complement the Quorn offering.

Nor does Marlow skimp on investment in building its brand. Quorn has also been advertised on television almost every year since 1993.

And the Quorn brand message has been developed over the years, improving the brand’s positioning. In the late 1980s and early 1990s the brand nailed itself into a niche, describing itself as a vegetarian food. But “vegetarian is a turn-off word for most people”, as a former Quorn executive explained.

Since then the brand message has evolved into one focused on taste, convenience and positive health. More people are choosing to include a meat-free option once a week on average in their meal repertoire, and it’s focusing on being that option that has driven sales in Europe so far.

When the brand entered the Swedish market, in 1999, Quorn marketed itself for the first time as “the fifth protein” and by 2002 the positioning had moved clearly away from “meat substitute” or “meat alternative” – both terms which were found to be unattractive to consumers – to “positive health”.

FAMILIAR FOOD FORMS KEY TO BRAND GROWTH

One of Marlow’s main challenges over the years has been overcoming consumers’ unfamiliarity with its product. “Consumers will run the risk of washing a shirt with a totally new powder,” explained the company to New Nutrition Business back in 2001, “but people have a natural resistance to new foods – until they understand what it is they’re putting in their stomach.”

A significant part of Quorn’s success stems from NPD efforts that have increasingly presented Quorn in forms, such as ready meals, which are familiar and acceptable to consumers. Its non-meat deli slices in chicken, ham and turkey flavours were a real innovation at the time of launch and have become the third-biggest selling item in the range after pieces and mince.

To achieve these new formats Marlow has had to innovate in its production processes, beginning in 1992 when it switched over from a rolling and extension-based production process to forming technology. Familiar product formats, coupled with an investment in flavour technology so that consumers also get the familiar tastes that they expect to get from a Thai red curry or a lasagne, make for

an easier entry into the brand for consumers. As part of building familiarity with the

ingredients and inspiring consumers Marlow invests heavily in developing recipes. Recipe requests are the company’s number one consumer information request and the company has developed thousands over the years.

The company generates a third of its sales from mainland Europe. But in the US Quorn has never fulfilled its potential. FDA-approved, Quorn entered the US in 2002 and showed signs of being a rapid hit, taking a 10% share of the meatless sector in natural foods stores and briefly became the number one selling meatless poultry alternative, with a bigger share than Gardenburger or Boca. A spokesperson for natural foods supermarket

CHART 6: EXPLANATION OF THE STRUCTURE AND BENEFITS OF QUORN AND OF THE QUORN PRODUCTION PROCESS

Source: Marlow Foods

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GROWING EVIDENCE FOR LIPID AND WEIGHT MANAGEMENT BENEFITS

What is mycoprotein?Mycoprotein is the ingredient in the Quorn brand – all Quorn products are processed from it – and a technology which is proprietary to Marlow Foods. In very simple terms, on a weight-for-weight basis mycoprotein has almost as much protein as an egg, more fibre than a baked potato, two-thirds of the fat of skinless chicken and zero cholesterol.

Protein

• Mycoprotein contains high quality and easily digestible protein at a level of 11g per 100g and this translates in processed Quorn products to 12g-15g per 100g.

• All nine essential amino acids are present in significant amounts in mycoprotein – including, for example, lysine – and it is comparable to meat in terms of essential amino acid content.

• Quorn products are 60%-90% mycoprotein.

Fat

• Mycoprotein has 3.1g of total fat per 100g, of which 0.71g is saturated fat. The remainder is polyunsaturates. Mycoprotein is free of cholesterol and trans fats.

• Although in regulatory terms most Quorn products cannot be described as low fat (that is, having less than 3g of fat per 100g) they are always significantly lower in fat than comparable meat products.

• There is approximately (per 100g) 2.8g -9.9g of total fat and 0.5g-2.8g of saturated fat in Quorn products depending on the production process used.All products are trans fat free.

Fibre

• Mycoprotein is an excellent source of dietary fibre. Total fibre is 6g per 100g (wet weight) of which 88% is insoluble and 12% soluble.

• And 65% are beta 1,3 and 1,6 glucans and 35% chitin.

• Quorn products are a good source of dietary fibre – Quorn pieces, for example, have 4.9g per 100g.

Research uncovers intrinsic health effectsThe future direction of Quorn may be governed not only by continuing geographical expansion and NPD, but by clinical research which is uncovering more and more about the intrinsic healthiness of mycoprotein. Mycoprotein has emerging benefits in three areas:

Improving serum lipid profiles: supported by six published peer-reviewed studies so far.To take one example (Turnbull, Leeds, Edwards. Effect of mycoprotein on blood lipid,Am. J. Clin. Nut. 1990;52:646-50), mycoprotein was found to lower LDL cholesterol by 9% while also raising HDL cholesterol by 12%.

Increasing satiety: three studies have found that consumption of mycoprotein has the effect of reducing hunger and subsequent food intake.

Reducing glycemia and insulinemia: a study has found that mycoprotein reduced glycemia post-meal by 13% compared to a control group while insulinemia was reduced by 36%, suggesting that mycoprotein may have a role to play in the management of diabetes.

chain Whole Foods, quoted in the Boston Herald, described Quorn as its most successful launch ever.

However Quorn then came under an unprecedented attack from consumer interest group the Centre for Science in the Public Interest (CSPI). Michael Jacobson, the head of CSPI, came out as anti-Quorn, complaining to the FDA about the product on grounds of safety and issuing a media release, alleging that Quorn had prompted allergic reactions in some consumers. It’s hard to say how much effect the CSPI’s vitriolic

campaign had. A wave of publicity followed with some reporting sensational and one-sided and other publications taking a more balanced view – particularly when the FDA stood by its thorough safety assessment for Quorn.

WHERE NOW FOR QUORN?

Marlow is a company centred around a single technology, but unlike many companies it hasn’t made the mistake of being technology-focused and technology-led. Marlow has

recognised that for the average consumer it’s brands that bring value and it has focused on creating a fast-growing and successful brand with a positioning connected to consumers’ own ideas about positive health.

However, recent years have seen Quorn in the doldrums – the result of being acquired by a private equity group which, typically, didn’t understand the business it was in.

Premier Foods is a stock-market quoted UK food group that has grown through highly leveraged acquisitions, resulting in insufficient funds available for growth or

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investment in establishing the health benefits of Quorn.

Premier Foods also appears to have had a rather pedestrian management who have never tried to fulfill the potential that lies in owning what is arguably the world’s greatest food innovation and they seem to have been happy to let Quorn sit in the doldrums of the “vegetarian prepared food category”.

What Quorn now needs is a buyer that will invest in the science and marketing and which has sufficient capital to set up a production facility in Asia to supply the region’s growing demand for protein – India with its huge vegetarian population being arguably the biggest opportunity.

If there’s no large food company or a visionary entrepreneur willing to take that course, Quorn will most likely fall into the hands of another finance-driven owner. And if that happens it will only tell us that the boards of directors of many food and beverage companies like to talk about innovation but lack the courage to follow through, even when a proven innovation like Quorn falls into their laps.

CHART 7: QUORN INGREDIENTS AND NUTRITION FACTS, MOZZARELLA AND PESTO ESCALOPES.

CHART 8: PROOF OF CONCEPT – QUORN SALES SUCCESS

Proof of concept: Quorn sales have grown steadily since 1990 and by 2008 it was on sale in eight countries rising to 10 countries by 2010.

Source: Marlow Foods

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James White Drinks’ development of its innovative juice drinks is a text-book example of how to commercialise nutrition science. Central to its strategy is marketing the intrinsic health benefits of the humble beetroot. The company has begun with a focus on supplying elite athletes, coupled with distribution through health food stores, with a convenient “concentrated dose” package. Meanwhile, it’s deepening its collaboration with scientific researchers to put in place the science that can justify an approved health claim, and it’s looking for partnerships to roll-out the concepts internationally.

The benefits of the company’s Beet It brand are based on beetroot’s naturally high nitrate content. On the face of it, nitrates might seem like an unlikely starting point for a health brand. Commonly used as a preservative in processed meats – as well as occurring naturally in high concentrations in vegetables – from the 1950s nitrates were treated as a potential risk factor for colon cancer when researchers found a link between nitrates and cancer in laboratory rats.

Public health officials adopted the premise that nitrates are detrimental to human health and regulations were introduced in Europe, the US and elsewhere limiting the permitted levels of nitrates found in drinking water, for example, as well as in foods.

There was just one problem – the slur against nitrates was based solely on an extrapolation from the rat studies of the 1950s, and in fact epidemiological studies have never found any association between nitrate intake and disease in humans1.

In fact, far from finding that nitrates had the potential to be harmful, researchers began to suspect that dietary nitrate might play a significant role in supporting human health. As far back as 1994 researchers at the prestigious Karolinska Institute in Stockholm and at the Peninsula Medical School at the University of Exeter, UK, independently observed that the human stomach contains the gas nitric oxide (NO). The question was

where the gas was coming from. Nitric oxide performs several vital functions in the body, including dilating blood vessels, and for these activities, a cellular enzyme called nitric oxide synthase extracts the gas molecule from arginine, an amino acid. Chemists have long known another mechanism: at low pH, nitrite forms a stew of nitrogen-oxygen compounds, including nitric oxide. Bacteria in the mouth convert nitrate to nitrite, which gets swallowed, so the stomach can naturally produce nitric oxide. If nitric oxide were truly beneficial to the stomach, harmless bacteria feeding on nitrate-rich saliva might have a symbiotic relationship with humans.

To test this idea, researchers exposed bacteria responsible for stomach infections to stomach acid both alone and mixed with nitrite. Although acid is often thought to be the stomach’s main line of defense against invading bugs, the researchers found that E. coli, Salmonella and other bacteria could survive for hours in it, whereas high normal concentrations of nitrite plus acid killed the bacteria in less than an hour.

Researchers in Japan, the US and elsewhere also worked on nitrates and found that they lowered diastolic blood pressure, with no effects on systolic blood pressure. Interestingly, the effects were found in people with seemingly normal blood pressure.

The turning point can be said to have come in 2008, when a research team headed by Amrita Ahluwalia, Professor of Vascular Biology, Center for Clinical Pharmacology,

William Harvey Research Institute, Queen Mary University of London, found that consumption of beetroot juice exerted a number of benefi cial effects, including lowering of both systolic and diastolic blood pressure. The study – funded by the British Heart Foundation - was published in the American Heart Association journal, Hypertension.

At that stage the research team was uncertain whether the benefi cial

Science gives beetroot brand a superfood boost

A start-up brand has embraced the science of sports nutrition and blood pressure-lowering and is spearheading the reinvention of beetroot as a superfood. By JULIAN MELLENTIN.

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cardiovascular effects of beetroot juice were specifi cally attributable to the dietary nitrate content of beetroot, but studies since then (see box) appear to have cleared up that question, affi rming the role of beetroot’s high content of dietary nitrate, which converts into usable nitrate or nitric oxide in the body.

It’s not only blood pressure lowering that is in the spotlight. Researchers at Exeter University Medical School, specializing in sports nutrition, have also found sports performance benefits from consumption of beetroot juice (see box).

It’s a long way from the world of cutting-edge scientific research to a small juice company, but James White’s lucky break came because back in 2008 it was the only company marketing a beetroot juice in the UK and it began supplying its juice to researchers to use in clinical studies.

When the Ahluwahlia study was published, the company told New Nutrition Business back in 2008, sales of its regular beetroot juice grew five-fold in the wake of the publicity. To capitalize on the emerging benefits the company began marketing Heart Beet, an organic beetroot juice, retailing in 250ml bottles and sold through health food stores.

“I’m not a scientist so I’m new to this,” comments Lawrence Mallinson, CEO and founder of James White Drinks. A serial entrepreneur, he was previously one of the founders of the New Covent Garden Soup Company, today the second-biggest soup brand in the UK after Heinz.

“Products with the highest quality ingredients and the best taste are where my marketing experience has been - this world of claims is new to me. Suddenly I find myself in areas where we’re talking about drinking juice because it reduces blood pressure or improves sporting effort.”

While many small companies shy away from the science Mallinson recognized that his company – whose core business is pressed apple juice – needed to embrace it and the company has formed collaborations with the researchers at Exeter University, who are focusing on the sports performance benefits of beetroot juice, and with the researchers at the Karolinska Institute in Sweden, who are investigating the effects on lowering blood pressure. Today the company co-owns patents relating to the effect of beetroot juice jointly with researchers at the Karolinska Institute.

ELITE ATHLETE FOCUS FOR LAUNCH

The company has meanwhile re-positioned Heart Beet as Beet It, a name that is intended to also embrace the sports market opportunity.

In the world of elite athletes there is a never-ending quest for products that will boost performance and word got around among sports nutritionists at the professional level about the research at Exeter University.

“We’re now supplying rugby teams, premiership football teams and athletes. Word of mouth has been very powerful,” observes Mallinson.

Beetrot juice has a polarising taste, adds Mallinson: “About a third of people love it and two thirds find it difficult. To try and get past the taste barrier we said to the sports people that we were thinking about concentrating it, to enable people to down a dose without having to drink a full 250ml bottle.”

The response was positive, so the company launched a 70ml shot version, which contains 5mmol of nitrates, the same as found in 250ml of beetroot juice, called Beet It Concentrated Organic Beetroot Stamina

Shot.“All the sports people have gone to it,”

explains Mallinson. “It’s a more intense, slightly thicker drink. The 250ml juice smells and tastes exactly like beetroot, but the shot doesn’t have the smell of beetroot or the taste. When you concentrate it, it becomes very sweet. But people drink it not as a drink but for its functional properties.”

“Beetroot isn’t an easy product to handle,” observes Mallinson, whose company has had to develop know-how in processing the vegetable. “We are really apple pressers and apple is acidic, stable and easy to handle. Beetroot is alkali so naturally the difficulty comes with adjusting acidity level.”

The shot is hot-filled and shelf-stable and so it needs no added preservatives but still has a shelf-life of 10 months.

“It’s the world’s first organic shot with no preservatives,” says Mallinson. “Organic is a positioning – when you are marketing to a medically interested audience it’s a positive.”

The shot product also carries the logo of Informed Sports, an organization that tests products to provide assurance that sportspeople will not fail drugs tests as a result of using them.

EXPANDING DISTRIBUTION CAREFULLY

Mallinson is refreshingly frank that the company’s product is several months behind schedule as a result of challenges with processing equipment, but the Shot product is soon to join the 250ml drink in Holland and Barrett, the UK’s largest health food store chain with over 200 stores, and is being distributed to the wider health food store trade and will shortly go into GNCs.

The price is, typically for shots, super-premium at £1.79 ($2.85/€2.05) for a 70ml bottle, equivalent to around £25.50 ($40.60/€29.25) per litre. By comparison, the 250ml Beet It sells for around £1.49 per bottle ($2.38/€1.70), equivalent to most smoothie brands.

Expanding distribution is being taken one step at a time. “We are historically a fine foods company and I never thought we would be doing anything like this so we’re making sure we get it right every step of the way,” says Mallinson. “We began with elite athletes and now we are in health food and later we’ll look at supermarket distribution. We’ve already had some conversations with supermarkets but they’re not sure where to place shots in their stores – they’re having some difficulty with them.

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Reference:1. Dietary nitrate in man: friend or foe? Knight, Duncan, Leifert and Golden, British Journal of Nutrition (1999), 81, 349-358

BEETROOT’S GROWING SUPPORT IN SCIENCE

1. SPORTS NUTRITION

A study conducted at the University of Exeter and published in May 2010 in the Journal of Applied Physiology found that drinking beetroot juice reduces the energy expended by muscles. The research builds on a previous study (also published in the Journal of Applied Physiology), which showed for the fi rst time that drinking beetroot juice can boost stamina, allowing an individual to exercise for up to 16% longer. The authors suspected that this was connected to the very high nitrate content of beetroot juice turning into nitric oxide in the body, leading to a reduction in oxygen uptake. The latest study confi rmed that initial fi nding and also described the processes in the muscles that make exercise less tiring. In the study healthy men completed a series of knee extension exercises, which work the quadriceps muscles in the thigh. The level of exertion was assessed using an ergometer. An MRI scanner enabled the researchers to record the internal processes of the muscle. In addition, the volunteers’ oxygen uptake was monitored. The exercises were repeated several times, sometimes after the volunteers had drunk half a litre of organic beetroot juice a day over six days and sometimes after they had drunk a placebo of blackcurrant cordial. Drinking beetroot juice doubled the amount of nitrate in the blood of the volunteers and reduced the rate of utilization of adenosine triphosphate (ATP), the most immediate source of energy for muscles. This suggests that drinking beetroot juice enables muscles to complete the same work more effi ciently. Furthermore, after drinking beetroot juice, oxygen uptake was reduced during both low-intensity and high-intensity exercise. Corresponding author of the study, Professor Andy Jones of the University of Exeter’s School of Sport and Health Sciences, said: “We continue to be impressed by the physiological effects of increasing dietary nitrate consumption. While our previous research demonstrated the benefi ts of nitrate-rich beetroot juice on stamina, our latest work indicates that this is consequent to a reduced energy cost of muscle force production. “Since our fi rst study came out we have seen growing interest in the benefi ts of drinking beetroot juice in the world of professional sport and I expect this study to attract even more attention from athletes.”

2. BLOOD PRESSURE

A study published in June 2010 the American Heart Association journal Hypertension, found that blood pressure was lowered within 24 hours both in people who took nitrate tablets, and people who drank beetroot juice. The researchers affirmed that the nitrate content of beetroot juice is the underlying cause of its blood pressure lowering benefits.

Study author Amrita Ahluwalia, Professor of Vascular Biology at London-based Queen Mary’s William Harvey Research Institute, said the investigation was able to demonstrate that the nitrate found in beetroot juice was the cause of its beneficial effects upon cardiovascular health by increasing the levels of the gas nitric oxide in the circulation.

Professor Ahluwalia said: “We gave inorganic nitrate capsules or beetroot juice to healthy volunteers and compared their blood pressure responses and the biochemical changes occurring in the circulation.

“We showed that beetroot and nitrate capsules are equally effective in lowering blood pressure indicating that it is the nitrate content of beetroot juice that underlies its potential to reduce blood pressure. We also found that only a small amount of juice is needed – just 250ml - to have this effect, and that the higher the blood pressure at the start of the study the greater the decrease caused by the nitrate.

Our previous study two years ago found that drinking beetroot juice lowered blood pressure; now we know how it works.”“Inorganic Nitrate Supplementation Lowers Blood Pressure in Humans”, by Kapil et al. was published in the AHA journal Hypertension on Monday 28 June 2010.

“For now we’re focusing on a heartland of people – serious and aspiring sports people and people serious about exercise and who need to get the best from their bodies – we’ve even found ballet dancers using out product.”

HEALTH CLAIM AIM

The European Union’s exacting health claims regime does not deter Mallinson. “We

can see where the research is headed and we can see what the standards are that EFSA is looking for. A lot of claims have been rejected because they didn’t characterize the active ingredient sufficiently. That’s not a problem we’ll have with beetroot juice.”

“We’re steadily building up a dossier for the shot – because with that we’ve got something that no-one else has.”

The next step is international distribution

– the company has already shipped its first order to in Australia. “We’re a small company so we need partners and licencees,” observes Mallinson. “For the right people the potential of beetroot juice will be huge.”

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John Polk would like to do with protein shots what 5 Hour Energy did with energy shots. His innovative Provita shots use medical-foods technology to deliver 42g of protein in a 3oz (90 ml) bottle and, he hopes, they will dominate what he believes will develop into a new segment in the shot business. Provita also is rolling the general concept across a family of three other protein-laden shots for relaxation, weight loss and energy.

Polk isn’t shy about stating his ambitions. “We’re building a new category,” said the founder and CEO of the Dallas-based startup, a veteran of the energy-drink industry who launched Provita nearly three years ago. “And this one makes so much sense that you understand it immediately. Everyone has been trying to crack the code for providing protein in beverages, and we think we’ve done that.”

The Provita line of “functional protein beverages” currently consists of four SKUs:

• Protein, whose bottle – as does each of the products – emblazons “42g protein” in huge print across the top – and describes “17 vitamins” as the other main attribute;

• 6-Hour Energy; • 6-Hour Slim; and • 8-Hour Chill.

They retail for a suggested $3.99 (€2.88) which, Polk notes, is in the neighbourhood of the typical $3.69 (€2.66) price of 5 Hour Energy. On a price per litre basis Protein is equivalent to $44 (€32) – a typical price for shot format products.

“My product delivers a whole lot more as a value proposition,” said Polk. “You’re getting protein and energy ingredients in our Energy product, for example, plus a multivitamin.”

And Provita’s video spots, available online at first, crow, “Real energy comes from real nutrition”, deriding conventional energy shots and energy drinks and promising six hours of “clean, level energy”.

Coke Consolidated – the largest independent Coca-Cola bottler in the US – has taken Provita into its Southeastern region lineup for distribution, a huge step toward success for the brand, and Valero and 7-Eleven convenience stores are among the major US retailers that are beginning to merchandise Provita.

Polk’s background is in the supplements business, where he created protein drinks, among other products. He said that among the products he tinkered with was a protein shot – before energy shots surged into the market a few years ago. Most recently, Polk created a 24-ounce energy drink called Boo Koo that was distributed by PepsiCo, but a few years ago Pepsi’s Amp came out with its own 24oz size, undercutting Boo Koo.

CHASING A TRUE PROTEIN SHOT

As he pondered his next entrepreneurial move, Polk recalled, he looked at shelves full of protein drinks to purchase for himself at a natural-foods store and “just walked out of there with disgust. I didn’t want to drink another chocolate or vanilla or strawberry shake,” he said. “I wanted to be able to drink a shot and just get it over with. I walked out of that store with compactness on my mind, wondering if I could come up with a true protein shot.”

Polk also concluded that protein-based recovery and workout beverages, such as Muscle Milk, require too much of the consumer in asking them to down, typically, 14oz of liquid just to get the benefits of the protein. That’s the same logic, of course, that launched the 5 Hour Energy shot by Living Essentials, the company that still dominates the format even after the biggest soft-drink and energy-drink companies have jumped into it over the last few years.

It took Polk about a year to come up with a way to squeeze 42g of protein into a shot portion of liquid. “The first 10 versions I created were just too thick; they were too viscous,” he said. Formulators he met with “said I was crazy, that it was impossible. But that’s because they were thinking about doing it with traditional, mainstream proteins like whey protein. And sure, if you tried to

squeeze 42g of protein into three ounces of liquid, you’d end up with something the consistency of yogurt. You’d have mud.”

Instead, Polk turned to developers of high-protein products for medical applications, such as force-feeding amino acids to burn victims to boost their recovery time. “What do they put down the tube for these people?” he said. “It’s not Metrix or Muscle Milk. It’s medical-grade protein.”

The key to the protein in Provita, Polk said, is that it’s so-called “predigested protein” that is highly processed so that it is 100% assimilated by the body, with no fillers. Even after landing upon the idea of using medical-grade protein, he explained, “there was still a long learning curve. We had to do some unique things and find just the right type of protein so we could get the viscosity right, because if you’re putting it down a tube it’s one thing. If you’re drinking it, that’s another [more difficult] standard. With some early versions, the viscosity was like maple syrup; you could hear it just slowly sloshing around in the bottle. But eventually we got it to the point where it’s just a little more viscous than water.”

Polk said another aspect of the delicate issue of Provita’s viscosity was that he didn’t want it to seem too thin to consumers, either. “It’s got some thickness to it, or it wouldn’t be believable,” he explained. “One of the things we hear all the time is, ‘You’re kidding me – there’s no way it’s got that much protein’. Then people drink it and they’re amazed that they can literally just fill their mouth up, go gulp, gulp – and consume that much nutrition at once.”

All varieties of Provita include a combination of collagenic, whey and casein proteins which comprise the 10 amino acids that Polk calls “indispensible” to the human diet, including lysine and tryptophan, as well as 17 vitamins and minerals, ranging from vitamin A to zinc.

In addition, the Energy variety includes taurine and caffeine, common ingredients in energy drinks. Slim includes garcinia cambogia, green tea, and green-coffee extracts. Chill also includes L-theanine and L-tryptophan.

“Having a family of shots, for multiple

Cracking the code for protein drinksBy delivering a concentrated dose of medical-grade protein in an innovative shot format, entrepreneur John Polk hopes to create a new category – protein shots – that will lift protein beyond its body-building niche to enjoy wider consumer acceptance. By DALE BUSS.

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functions, is really unique,” Polk asserted. “No one else has done that. There have been a couple of little shots that are add-ons to someone’s main brand, but they don’t have any mainstream distribution, and you don’t hear about them. We’re the first ones to take this idea to the masses. We want to be in convenience stores sitting right next to 5 Hour Energy.”

The fact that Provita has an Energy variant isn’t so much to compete directly with 5 Hour Energy and its many imitators, Polk said, as to provide another way of stretching the range of Provita SKUs, which will continue to grow.

“Weight loss is an obvious category to be in as well,” he said. And Relaxation is part of a “new category” of relaxation beverages. Like others who have decided between fielding a relaxation-oriented formula or something to help induce sleep, Provita initially opted to go the Relaxation route.

“That’s an easier road to travel than a sleep beverage,” Polk said, intimating that his partner, Coke Consolidated, might be wary of a potion with enough punch to yield sleep. “We have to have all GRAS-approved ingredients,” he said. “It’s hard to put together a product that will really help you to go to sleep and still be on the shelf [versus being prescribed as a drug] and have mainstream distribution.”

Nevertheless, Polk has included a Sleep formula in his plans for his next possible six functional SKUs in the Provita line.

The others that have immediate potential are:

• Mental Focus, which Polk said “might be one of the two logical next SKUs” to introduce.

• Immune Boosting Antioxidant, “which will be the other next one”.

• Strength, Health and Energy (SHE) for women.

• Kidshot, featuring “Vitamins + Focus”.

But before Provita begins turning out more products based on other functions, Polk said, the company has plenty to do to exploit the opportunities immediately before it. For one thing, he plans soon to introduce an “ultimate” formula that, in terms of taste and viscosity, takes Provita “to the next level”.

The reported interest of Coke Consolidated as an investor – upon which Polk declined to comment – could be another bonus; other investors are milling around the company as well, he said. Having such a huge distribution engine in his corner, Polk said, is a huge plus in addition to the uniqueness of the Provita product proposition.

“We have 30 sales reps now walking into Wal-Marts, Walgreens and other chains with a unique, first-to-market, innovative product – and that’s what retailers want to see, not a me-too product that they’ve already seen 100 times before,” Polk said. “We have our own category builder, and we’re getting a lot of

traction with retailers because they’re tired of seeing the same old stuff.

“We can build a multi-million-dollar brand around the [regular Protein and Energy] SKUs alone,” he said.

HARNESSING THE POWER OF TV

To reach his goal also will take a good dose of one of Polk’s specialties: marketing. At various times in his career he has specialized in direct-response marketing on television. “We’ve already started testing our own 30-second direct-response spots,” he said, in which Provita offers to give respondents six bottles of the shots for no charge.

In general, Polk is a firm believer in the power of TV advertisements to build brands in his business – witness the success that 5 Hour Energy has had in blanketing cable TV with simple, almost amateurish, advertisements touting its main benefit. The brand has done little other advertising, forswearing what Polk calls the “race teams and extreme-sports involvement” that has characterized the marketing of big energy-drink brands such as Red Bull.

“When you turn on the TV to certain channels like ESPN2, you can’t go five minutes without seeing a 5 Hour Energy spot,” he marveled. “Our goal eventually is to make Provita into a household name like 5 Hour Energy.”

CHART 9: INGREDIENTS AND NUTRITION FACTS FOR PROVITA PROTEIN DRINK

All the bottles in the Provita range, which offers energy, slimming and relaxation benefi ts, boast of including 42g of protein.

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S N A C K I N G C A S E S T U D Y

Launched back in 1995, Ocean Spray’s sweetened dried cranberries debuted as a an eat-from-the-hand snacking item, just one small element in Ocean Spray’s robust strategy of delivering its cranberries – of which it controls 80% of US supply and around 60% of world supply – as a beverage and as an ingredient in foods of all kinds, while at the same time bolstering their health credentials. It’s a strategy which has helped make cranberries arguably the world’s most successful superfruit, with sales in excess of $1.5 billion (€1 billion) a year.

Dried fruit were not known for their snacking convenience back then, and Craisins was America’s first viable snack alternative to raisins. Since then Craisins has helped transform the staid world of fruit snacks and today accounts for a 10.5% share of America’s $1.2 billion (€860 million) dried fruit and fruit snack market; it has taken the position as the third-biggest fruit snack brand in the US, after Sun Maid Raisins (although the gap is closing every year) and General Mills’ Betty Crocker processed fruit franchise.

For the first 10 years of Craisins’ life, Ocean Spray faced off-and-on supply constraints for Craisins, both because it didn’t invest quickly in vast manufacturing capacity for the product and because the entire cranberry-cultivation industry had problems ramping up acreage fast enough to satisfy accelerating worldwide demand.

Because its supply problem meant that it couldn’t initially exploit market demand, Ocean Spray never advertised the brand. All that changed in the middle of this decade.

First, Ocean Spray made a huge new commitment of fi nancial and manufacturing resources to Craisins by moving to triple manufacturing capacity for the product to 100 million pounds a year (46 million kilos) by 2009.

Second, beginning late 2006, Ocean Spray began to advertise Craisins with a TV ad featuring cranberry growers Henry and Justin – the staples of its advertising campaign – standing in their cranberry bog, persuading a little girl that Craisins are the sweetest way to consume cranberries.

The result was a massive jump in sales in 2006, followed by steady double-digit annual growth ever since, with not even America’s severe economic downturn halting progress – growth continued at 16% in 2008 and 12.5% in 2009. A 6oz/170g pack of Craisins sells for about $2.99 (€2.30) per pack, equivalent to a healthy $17.60 (€13.50) per kilo.

Outside the US the popularity of Craisins has been rising as well and while Ocean Spray doesn’t disclose figures, industry estimates of Craisins sales in Canada, the UK, Australia and elsewhere suggest that the Craisins brand is at least as big internationally as it is in the US. Demand for dried cranberries as an ingredient in other

foods also about equals consumer demand for Craisins-branded products.

About two years ago, Ocean Spray finally reached its desired capacity to produce Craisins. “We’ve invested billions of dollars in that capacity and adding production lines for the product, and that has allowed us to take the governors off the things we can do for growth” with new products, package sizes and other ways to expand the brand, said Brian Gormley, senior marketing manager of the domestic foods business for Ocean Spray.

So, earlier this year, Ocean Spray re-launched cherry-flavoured Craisins and added pomegranate- and blueberry-flavoured Craisins. To attain those flavours, Ocean

From bog fruit to big fruitFrom sour bog fruit to stellar superfruit snack, the Ocean Spray Craisins brand is a good example of how it can often take 15 years to create an “overnight success” with an innovative product. And now Ocean Spray is building on the ground Craisins have captured in branded dried-fruit snacks to launch its new Jumbo Dried range. By DALE BUSS.

OCEAN SPRAY CRAISINS ADVERT

Voiceover:

Man 1 (on lefthand side):We asked my niece if she agrees Ocean Spray Craisins sweet and dry cranberries are sweet.

(Silence)

Man 2 (on righthand side):We will take that as a yes. Craisins – the sweetest way to eat a cranberry.

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Spray extracts much of the natural juice from the dried cranberries and then infuses them with sugar and, respectively, each of the other juices.

“That allows us to capture consumers who weren’t as keen on the original [cranberry] flavour of Craisins, our flagship product,” Gormley said.

Ocean Spray also began introducing new package sizes to expand the distribution footprint of Craisins into venues such as club stores.

CRAISINS PAVE WAY FOR NEW PRODUCTS

But the most interesting and potentially significant recent actions by Ocean Spray in the fruit-snacks arena actually have nothing to do with Craisins. Gormley and his colleagues believe that the best applications of Craisins actually are as ingredients in bakery products, nutrition bars, ready-to-eat cereals and other applications where they aren’t necessarily the focus, rather than as a branded snack.

A better snack, they believe, is the Jumbo Dried Cranberries, Jumbo Dried Cherries, and Jumbo Dried Blueberries that Ocean Spray recently introduced. Whereas Craisins are sliced cranberries, for these products, Ocean Spray developed a process to pierce the fruit and extract the juices without actually slicing them, and then reinfuse them with some of their own juice.

“These mirror fresh products that you can’t get year round,” Gormley said. “They have a different mouthfeel than Craisins and are more satiating products, actually – probably more conducive to snacking than use as an ingredient.”

Ocean Spray also hopes that the Jumbo Dried line helps it penetrate more produce departments, which get regular daily foot traffic versus many centre-store aisles that are much more sparsely shopped. Typical for dried-fruit products, Craisins are selling in the produce departments of no more than about 25% of the all-commodity volume in supermarkets, “and on the whole we have not been able to drive change in retailers’ thinking about where to merchandise them,” Gormley conceded.

But Jumbo Dried products may change that, he hopes, because of their greater similarity to whole fresh fruit compared with Craisins. “We’re constantly in talks with distributors about how to work more with produce departments,” he said.

S N A C K I N G C A S E S T U D Y

GOOD MERCHANDISING BOOSTS SALES

A key part of Craisins’ success has been effective merchandising and related close-to-shelf communications. In this particular example:

• A sweepstakes was developed for a chance to win $50,000 dollars in a shootout.• The programme was promoted via in-store POS, shippers, circulars and in-store

radio.• Trial occurred at select NY Liberty games. Fans were given sample packs of

Craisins.• The programme was executed in 192 Shoprite supermarkets in the New York

market.• Craisins increased sales during the three month period 5% nationally and 33%

locally.

2004 2005 2006 2007 2008 2009 52 Weeks Ending

Aug 8, 2010

$30.600(€21.966)

$34.400(€24.694)

$49.846(€35.781)

$59.734(€42.879)

$69.504(€49.893)

$78.202(€56.139)

$86.129(€61.830)

CHART 10: US SALES OF OCEAN SPRAY CRAISINS 2004-2010

TOTAL US supermarkets, drugstores and mass merchandise outlets (excluding Wal-Mart)

0

10

20

30

40

50

60

70

80

90

Source: Infoscan Reviews, SymphonyIRI Group

$millions

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N E W P R O D U C T S

Country Company Brand & Product DescriptionPART 1: NORTH AMERICA – FOODS & BEVERAGES

All new product information is sourced exclusively from Mintel’s GNPD (Global New Products Database), which can be visited at www.gnpd.com. Mintel can be contacted at 18-19 Long Lane, London EC1A 9PL, U.K.. Tel. +44-(0)20-7606-4533, Fax +44-(0)20-7600-3327

FUNCTIONAL & HEALTHY-EATING NEW PRODUCT LAUNCHESEach month we summarise new product launches from around the world.• Part 1: North America • Part 2: Rest of the World

BAKERY

Canada Coffaro’s Baking Coffaro’s Baking Co Pistachio with Lemon Zest Biscotti

Made with pure olive oil and is lower in sugar, sodium and saturated fats. No trans fat, high fructose corn syrup, preservatives or additives. Contain phytosterols, said to lower the absorption of dietary cholesterol from other foods.

Canada Lucerne Foods Eating Right 100% Whole Grain Specialty Bread

Now with cranberries and raisins. A source of six essential nutrients, contains 0g of trans fat and 0g of saturated fat, and also 5g fibre and 1.5g fat per 71g serving. Pack features the Health Check logo of the Heart & Stroke Foundation.

Canada Lucerne Foods Eating Right Complete Pancake Mix High in fibre and made with 60% whole wheat. It contains 4g fibre and 2g fat per 38g prepared pancake. Pack features the Health Check logo from the Heart and Stroke Foundation.

BEVERAGES

Canada A. Lassonde Lassonde Be Pure Oasis Health Break Fruit Sunny Blend Juice

Reformulated, now dairy free. A blend of fruits with more than one billion probiotics per serving and no added sugar. Made with juice from concentrate, natural flavours and vitamin C, which supports the development and maintenance of bones, cartilage, teeth and gums. Also contains potassium, and magnesium, which promotes energy metabolism, tissue formation, and bone development.

Canada Blue Monkey Drinks Blue Monkey Pure Coconut Water + Acai & Pomegranate

Contains all natural healthy isotonic and is rich in potassium, magnesium and electrolytes. Contains 75% coconut juice and 25% of pomegranate and acai juice.

Canada Hilary’s Salesmaster Stress Free Shot Liquid Supplement This flavoured drink is non-drowsy and works in minutes with hours of stress relief. Free from sugar and citrus-flavoured.

Canada Smucker Quality Beverages R.W. Knudsen Family Just Blueberry Juice

Made with 100% blueberry juice from concentrate. Unsweetened and is free from preservatives, artificial flavours or colours.

USA Abbott Laboratories Abbott PediaSure Sidekicks Vanilla Flavoured Shake

Contains 25 essential vitamins and minerals, said to be a good source of protein and fiber. Suitable for people with lactose intolerance and is gluten free.

USA Ajmera Innovations Ajmera’s Coco Energy Coconut Water Instant Drink

A 100% natural, potassium rich mix claimed to be an effective hydration source. No caffeine, preservatives, artificial flavors, colors or sweeteners, is low in sodium and acidity and free of cholesterol.

USA ConAgra Foods Swiss Miss Marshmallow Madness Hot Cocoa Mix

A good source of 14 essential vitamins and minerals. Is 99.9% caffeine free, contains natural antioxidants, calcium, which helps maintain strong bones, and no artificial sweeteners.

USA Hansen Beverage Hansen’s Natural Fruit Stix Natural Strawberry Lemonade Flavored Drink Mix

Naturally sweetened with Truvia, only 5 calories per serving. Contains 100% vitamin C, and is free from gluten, artificial flavors, sweeteners and preservatives.

USA Hansen Beverage Hansen’s Natural Lo-Cal Pomegranate Blackberry Flavored Juice Cocktail

Blended with Truvia. Only 40 calories per serving. Free from artificial sweeteners, colours, flavors and preservatives. Low in carbohydrates, and provides 100% of the RDI for vitamin C.

USA Naturade Naturade Total Soy Chocolate Flavored Meal Replacement Drink

Improved formula with new taste. Contains 47% less sugar, fewer calories and carbs, and more dietary fiber. Lactose- and gluten-free, made with non-GE soy. Can help to lose weight or lower cholesterol.

USA The Republic of Tea The Republic of Tea Raw Green Bush Tea

Anti-oxidant rich, unoxidized South African rooibos tea refined with juicy blackcurrants and cardamom. The raw state of the tea preserves the plants’ natural enzymes and has twice the amount of polyphenols (up to 80mg per 6-oz. cup) as other teas.

USA Welch’s Welch’s Essentials White Grape, Peach and Mango Juice Beverage

Comprises flavored four juice cocktail blend from concentrate and enriched with calcium and vitamins C and D. Said to contain three times more fruit juice than the leading juice cocktail blend. No high fructose corn syrup or artificial sweeteners.

CONFECTIONERY

Canada Sunkist Growers Sunkist Fruit Flavoured Gummie Snacks

Made with real oranges, are free from gluten, peanuts and fat, and provide only four calories per package.

USA Dr. Harold Katz TheraBreath Xylitol Chewing Gum Does not mask odors with strong flavorings, but eliminates them by attacking oral bacteria and neutralizing volatile sulfur compounds that cause unpleasant breath odors. It eliminates odors caused by onions, garlic, coffee and smoking.

USA Cadbury Adams Halls Defense Sugar Free Supplement Drops, Assorted Citrus flavour

Contain all natural flavors and provide 100% DV of vitamin C in each drop, helping to support the immune system.

USA NewTree NewTree Superfruit Chocolate Made with 65% cocoa and comprises dark chocolate with cranberries, goji berries, pomegranate, grape and papaya. Includes grape extract, a natural source of antioxidants, contains three times more fiber and 30% less sugar than similar chocolate, and is free from GMO ingredients.

DAIRY

Canada Danone Danone Activia Strawberry Flavoured Drinkable Probiotic Yogurt

Contains 1 billion bifidobacterium lactis DN-173 010, a probiotic that contributes to healthy gut flora.

Canada Danone Danone Crush Blueberry and Strawberry Yogurt

Contain 30% less sugar than Danone’s regular yogurts, twice as much calcium as most yogurts, and are made with a vitamin D fortified skimmed milk. No artificial colours or flavours and doesn’t require a spoon.

Canada Danone Danone Silhouette 0+ Fat-Free Yogurt Reformulated with twice as many fruits as the regular flavour. No added sugar and is sweetened with Splenda. Made with vitamin A and vitamin D fortified milk.

Canada Kraft Kraft Live Active Cheddar Cheese with Probiotics

Now in a newly designed 168g pack containing eight cheese snacks. Contains one billion cells of each probiotic culture bifidobacterium lactis BB12, and lactobacillus rhamnosus GR1 per 21g serving.

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Canada Parmalat Astro BioBest Plant Sterols Probiotic Yogurt

Contains probiotics that contribute to healthy digestive tract flora. It has seven essential vitamins and minerals and is low in saturated and trans fat.

Canada Saputo Dairyland Nature’s Treat Yogurt Assortment

Naturally sweetened with fruit juice, contain no gelatin and are free from artificial flavours and colours. A good source of calcium, vitamins D and B12.

USA Dannon Dannon Activia Strawberry Cheesecake Flavored Dessert Yogurt

A rich, silky, delicious yogurt with desserty flavors and fruit pieces. With natural probiotic culture, called Bifidus Regularis, which provides digestive benefits. Packs feature an invitation for Activia taste test.

USA Dannon Dannon Danimals Crush Cup Strawberry Smash Flavored Low Fat Yogurt

With active yogurt cultures, contains no artificial colors, flavors or high fructose corn syrup, and is formulated with vitamin D. Requires no spoon. It is targeted at children.

USA HP Hood Lactaid Half & Half Creamer Made from 100% real, farm fresh milk and cream. Said to be easy to digest. Gluten-free and 100% free from lactose.

USA Kroger Kroger Honey Flavoured Greek Yogurt A non-fat yogurt with vitamins A and D, sweetened with Stevia.

USA Mehadrin Dairy Mehadrin Fit ‘n Free Vanilla Flavored Blended Nonfat Yogurt

Contains only 80 calories and is sweetened with Splenda. Contains live and active cultures.

USA Stremicks Heritage Foods 8th Continent Light Chocolate Flavored Soy Milk

Has 40% fewer calories than leading chocolate soy milk. No lactose or gluten, low-cholesterol.

DESSERTS & ICE CREAM

Canada Kraft Mousse Temptations by Jell-O Crème Caramel Mousse

No added sugar. Sweetened with xylitol, sucralose, and acesulfame-potassium.

USA Aldi Lunch Buddies Fruit Squeezies Sour Grape & Cotton Candy Flavored Fruit Snack

All natural, made with real fruit and provides one serving of fruit and 70 calories per pouch. Can be frozen, put in the lunchbox and eaten as a slushy treat. Free from lactose and gluten.

USA ConAgra Foods Swiss Miss Fudge Bars 98% fat-free and contain a good source of calcium and 100 calories per serving.

USA Turtle Mountain So Delicious Minis Mango Sorbet Bars Made with organic coconut water, has 60 calories per bar.

FRUIT & VEGETABLES

USA General Mills Green Giant Valley Fresh Steamers Vegetable Blend

An excellent source of the antioxidant vitamins A and C, essential for healthy eyesight and protection of cells from oxidation.

USA Dole Dole Ready-Cut Fruit Strawberries, Peaches & Bananas

A pre-cut, all natural product claimed to blend easily into smoothies and to be perfectly sized for toppings. Has no added sugar, is a superfood for the heart, a good source of vitamin C and fiber, and just as nutritious as fresh fruit.

USA General Mills Green Giant Just for One Corn & Peas in Basil Butter Sauce

Contains 80 calories per serving which equals one Weight Watchers point. The 17-oz. pack contains four single-serving steam-in-trays, which are convenient for at home or on-the-go.

MEALS & MEAL CENTERS

Canada Lucerne Foods Eating Right Turkey Chili with Beans High in fibre, low in saturated fat, provides 200 calories and 16g of protein per serving. Pack features the Health Check logo.

Canada Lucerne Foods Eating Right Shepherd’s Pie High in protein, provides a source of three essential nutrients and contains 300 calories per serving. Pack has the Health Check logo.

SNACKS

Canada General Mills Nature Valley Fibre Source Bars Assortment

Comprises 20 x wholegrain bars with honey & almond flavour and 12 x bars with apple cobbler flavour. Provides 20% of recommended daily fibre, contains 300mg of omega-3 polyunsaturates from flax seed, is low in saturated fat and provides 0g of trans fat. Pack features the Heart & Stroke Foundation logo.

Canada PowerBar Foods Canada PowerBar Energy Bites Chocolate Flavoured Snack

Said to provide more energy to working muscles with its C2Max formula. It contains 11g protein per 85.5g serving, and is free from artificial flavours, colours and preservatives.

Canada PowerBar Foods Canada PowerBar ProteinPlus Bites Fudge Brownie Flavoured Snack

Contains 20g Trisource protein per 74g, to help build and repair body tissue like muscle. Free from artificial flavours, colours and preservatives, and is ideal before and after training.

Canada Unilever Slim-Fast! 3-2-1 Plan Chocolatey Nougat Gone Nuts Bars

Part of the new line of snack bars said to satisfy sweet cravings with only 100 calories. Sweetened with maltitol syrup, sugar, polydextrose, acesulfame potassium and sucralose.

Canada Welch’s Welch’s Berries ‘N Cherries Fruit Snacks

Now available in a 300g pack containing 12 x 25g pouches. Made with fruit, contain natural and artificial flavours and are free from preservatives and fat.

USA Atkins Nutritionals Atkins Day Break Chocolate Oatmeal Fiber Bar

Contains 6g of protein, 1g of sugar, 10g of fiber, 130 calories, and only 7g net carbs.

USA Brothers International Food Corporation

Brothers-All-Natural Freeze-Dried Strawberries

Comprise 100% fruit with no preservatives or sugar added. Aimed at children and can be used on the go. Free from peanuts, tree nuts, gluten, soy, dairy and GMO ingredients.

USA General Mills Betty Crocker Fruit Gushers Flavor Shock Double Dare Berry Fruit Snack

Naturally and artificially flavored and low in fat. The gluten-free and certified kosher product contains 90 calories and is a good source of vitamin C.

USA General Mills Betty Crocker Fruit Roll-Ups Flavor Wave Berry Berry Cool Fruit Snack

Low in fat and naturally fruit flavored. The gluten-free and certified kosher product contains only 50 calories per serving and is a good source of vitamin C.

USA General Mills General Mills Fiber One Oat and Chocolate Cereal Bars

Reformulated for better taste. One bar provides 25% of the daily value of fiber, is a good source of calcium and contains 8g of whole grain.

USA Kashi Kashi TLC Cranberry Walnut Fruit & Grain Bar

All natural, naturally sweetened, contains 4g of fiber, 4g of protein and seven whole grains. Free from high fructose corn syrup and artificial ingredients.

USA Pharmavite Soyjoy Baked Whole Soy & Fruit Bar Now has a lighter and moister texture. Free from artificial colors, artificial flavors, hydrogenated oils and gluten, and contains low GI and 0g of trans fat. This whole soy bar is made with real fruit.

USA Think Products Think Thin Crunch Mixed Nuts & Chocolate Bar

Contains 70% less sugar than average fruit and nut bars, and is a good source of fiber and protein to maintain satiety. The gluten-free bar is ideal for a weight-management lifestyle.

SOUP

Canada Unilever Knorr Lipton Cup-a-Soup Chicken Noodle Supreme Instant Soup Mix

Free from preservatives, artificial flavours and artificial colours. The low fat product contains less than 100 calories.

USA Campbell Soup Campbell’s Chunky Hearty Tomato with Pasta Soup

Provides two full servings of vegetables and is said to be soup that eats like a meal. A good source of fiber, vitamin C, vitamin A, is free from trans fat, and low in fat, saturated fat and cholesterol.

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N E W P R O D U C T S

Country Company Brand & Product DescriptionPART 2: REST OF THE WORLD – FOODS & BEVERAGES

BAKERY

Australia Goodman Fielder Helga’s Continental Bakehouse Wholegrain Quinoa & Flaxseed Bread

A good source of protein and an excellent source of fibre for long-lasting fullness.

Belgium Wasabröd Wasa Solruta Sesame Crispbread Swedish crispbread with 57% wholegrain flour and 11% fibre. Pack features the Green Keyhole symbol that stands for healthy eating.

Brazil Cotam Itamaraty Selection Diet Chocolate Filled Wafer

Less than 25% calories and less than 35% fat than a regular variety. This trans fat-free product features a high fibre content, is sweetened with Splenda, and approved by the ADJ (Juvenile Diabetes Association).

Mexico Compañia Alimenticia del Norte La Fuente Wholewheat Biscuit with Raisins and Nuts

Low in fat and sugar and high in fiber. Said to help lower weight, diminish the risk of heart problems, improve digestion and reduce the risk of suffering from cancer.

Mexico Only Light de Mexico Health Corner Wholewheat Biscuit Said to eliminate cholesterol, help digestion and contains omega 3, 6 and 9. Organic.

Netherlands Damhert Damhert Nutrition Taga Twins Biscuits Saccharose-free biscuits with a blueberry filling. Contains tagatose, which has a prebiotic effect. Very low GI, does not cause tooth decay. The lactose-free product is said to contain only 10% fat and 52 calories per biscuit. A rich source of fibre.

Netherlands Koninklijke Peijnenburg Peijnenburg Extra Large Breakfast Cake

A source of fibre and contains less than 2% fat. The fibre makes the consumer feel full quicker.

Portugal Galletas Gullón Gullón Diet-Fibra Sugar-Free Biscuits Made with wheat, corn and oat fibres; contains 23% of prebiotic fibre.

Russia Khlebnyy Dom Khlebnyy Dom Finnish Grain Bread Provides 27% of the recommended intake for fibre per 100g.

Spain Casa Santiveri Santiveri Digestive Biscuits with Cranberries

Enriched with folic acid. Suitable for diabetics, and contain fructo-oligosaccharides, vital for the health of the intestinal microflora. The high fibre product contains no added sugars, and is free from dairy products and lactose. It features a bifidus effect, and is a source of oleic acid and prebiotic fibre.

BEVERAGES

Australia Berri Berri Super Juice Immune Fruit Juice With anti-oxidants and Echinacea; no preservatives and no added sugar, low GI.

Brazil Kraft Foods Tang Instant Soursop Flavored Drink Mix

Now with Tang Pró formula containing vitamins A and C, iron, which are said to contribute to physical and mental development. Low-calorie, gluten-free.

Hong Kong Djojonegoro C-1000 You C1000 Vitamin Lemon Health Drink

Now in a multipack containing six 140ml bottles. Claimed to be an effective antioxidant against free radicals.

Japan Asahi Soft Drinks Mitsuya Cider Juicy Apple Mitsuya Cider

Made with fruit juice from only apples grown in Aomori. One 500ml bottle contains digestive fiber equivalent to the amount in one apple.

Japan Kagome Yasai Seikatsu 100 Fruity Salad Yellow Vegetable Juice relaunched as Fruity Salad. Contains red bell peppers and purple cabbages. No added sugar or salt and is targeted at women in their 20s to 40s and their children.

Japan Kagome Yasai Seikatsu 100 La France Mix A 100% juice made with 21 vegetables and three fruits, as well as La France pear juice from Yamagata Prefecture known for their rich aroma and sweetness.

Japan Kagome Yasai Seikatsu 100 Purple Vegetable Juice

Now with pomegranate juice. Features 18 vegetables and 8 other fruits. Free of added sugar and salt and is targeted at women in their 30s to 60s.

Japan Kagome Yasai Seikatsu 100 Refresh! Yuzu & Lemon

Made with domestic yuzu citrus from Tokushima and other prefectures. No added sugar or salt and contains 15 vegetables and three fruits. Limited time only.

Japan Meiji Seika Kaisha Meiji Hi-Lemon Drink A beverage mix that contains 1000mg of vitamin C and fructooligosaccharide. Newly designed pack gives easy access to small individual packs inside.

Japan Suntory Foods Suntory Black Oolong Tea OTPP Hot A FOSHU product, claimed to suppress the rise of triglycerides by up to 20% after meal, if taken with a meal.

Netherlands Hero Hero Fruit & Co Weerstand Orange Juice Drink

Improved flavour. No added sugars, artificial colours or preservative, enriched with added vitamins (A, C and E), and bifido fibres.

Switzerland Unilever Knorr Vie Passion Fruit, Banana and Carrot Juice

A seasonal fruit juice with vitamin C for healthy bones and vitamin A for preserving eye sight. One bottle contains 50% of the required daily dose of fruit and vegetables.

Turkey Nestlé Nescafé Light Active Fiber Instant Coffee

Contains prebiotics “to support the immune system”.

BREAKFAST CEREALS

Australia Cereal Partners Uncle Tobys Plus Essentials for Women Pomegranates & Berry Oat Clusters

Wholegrain and contains five essential nutrients: fibre, iron, calcium, folate and antioxidants A and E. High in fibre and 97% fat free. Approved by the National Heart Foundation.

Italy Germinal Italia Germinal Oat Flakes Contain beta glucan and no added sugar. The organic product is said to help reduce cholesterol level.

Italy Nestlé Nestlé Fitness Breakfast Cereal with Fruits

Made with wholegrain cereals, formulated with antioxidants vitamin E and selenium and enriched with eight vitamins, calcium and iron.

DAIRY

Australia Fonterra Brands Brownes Heart Plus Low Fat Milk Repackaged in a new designed 1L pack. One 250ml glass provides more than 30% of the suggested dietary target of omega-3 DHA. Low in fat and cholesterol and a good source of calcium, vitamins B6, B12, C, E and folate. Features the Heart Foundation Tick of approval.

Australia National Foods Yoplait Go-Gurt Freeze ‘n Go Smooth Fruit Yogurt

This drinking yogurt is free from artificial colours, flavours, gluten and preservatives, is 98% fat-free, and provides a good source of calcium. The low-GI product with friendly live cultures is said to be perfect for lunchboxes. Features the School Smart logo.

Australia Parmalat Pauls Smooth Yoghurt with Acidophilus Free from preservatives, artificial colours, artificial sweeteners, and artificial flavours. Contains calcium and l. acidophilus that helps maintain the correct balance of bacteria and promotes digestive system.

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Australia Parmalat Vaalia Innergy Probiotic Drink Said to help strengthen the digestive and immune systems, and to enhance energy and vitality. Free from artificial ingredients and gluten, low GI and low fat.

Belgium Valio Valio Zero Lactose Semi-Skimmed Milk Said to be easily digestible and eliminates problems related to lactose.

Finland Ravintoraisio Elovena Blueberry and Cereal Soy Yogurt

A non dairy, lactose-free spoonable soy yogurt rich in fibres. Pack features the National Heart Foundation logo.

Finland Valio Valio Milk Plus A fat free milk that has been enriched with protein, calcium and vitamins. Features the Heart Foundation Tick approval.

France Vache Bleue Valio Zero Lactose Cream A lactose-free whole milk cream which is said to ease digestion.

Japan Ohayo Dairy Products Ohayo Shibo Zero Yogurt Zero Fat Yogurt (Kyoho & Aloe)

Now fortified with dietary fibre equal to eating two lettuces. It comes with Kyoho grape juice and textured aloe vera.

Japan Yakult Honsha Yakult Genki Yogurt Made with two of the company’s own lactic acid bacteria strains. Fortified with nutrients including iron and calcium and was introduced for school dinners and for retail outlets.

Russia Danone Danone Actimel Immunovitaminy Blueberry and Blackberry Drinking Yogurt

Reformulated, contains L. Casei Imunitass and vitamins B6 and D3, which are essential for the immune system.

South Korea Samsung Tesco Home Plus Organic Cheese for Kids Said to help children’s growth, brain, teeth, bones and immune system. High in calcium, and has added vitamins D3, A, B1, and DHA.

Spain Kaiku Corporación Kaiku Benecol Tropical Fruit Flavoured Soy Drink

Repackaged in a newly designed pack containing six 65ml bottles. Contains plant stanols to reduce cholesterol.

Spain Pagesa Diet Rádisson Calcium Oat Beverage Enriched with calcium and vitamin D. Free from cholesterol, lactose, added sugar, milk proteins, and preservatives and colourings, and contains beta-glucan fibre, and a high percentage of mono unsaturated fat acids. A natural source of omega 6.

UK Mars Mars Refuel Chocolate Flavour Milk Drink

Now with a new creamier taste. Contains 2% fat, a good source of protein, calcium, phosphorous, and vitamin B2. No artificial colours, preservatives or sweeteners.

UK Nestlé Nestlé Munch Bunch Fromage Frais Strawberry Mix Dessert

Made with real fruit purée, no artificial colours and no bits. Rich in calcium to promote strong bones.

Venezuela Indústria Láctea Venezolana Parmalat Diva Whipped Skim Yogurt with Strawberry

Contains collagen, elastin, aloe vera and vitamins A and E. Aimed at women; said to be good for the skin and the body.

Vietnam Vietnam Vital Milk Joint Stock Company

Vita Dairy CaloSure Gold High Energy Nutrition Milk Powder

Contains essential amino acids, MUFAs and PUFA for cardiovascular health. Free from lactose and cholesterol, and contains FOS to nourish good micro flora, inhibit the growth of pathogenic bacteria and leading to a healthier gut. Beneo Synergy 1 has been clinically shown to enhance calcium absorption and contains antibody IgG help to enhance immune system.

MEALS & MEAL CENTRES

Japan Acecook Acecook Karada Shokudo Collagen Samgyetang Soup

Features 19% more rice. This healthy chicken-based soup contains ginseng and 3000mg of collagen. It is low in calories, is said to have beauty properties.

Japan QP Healthy Kewpie Brown Rice Porridge for Adults

Retails in a pack with two packets, each containing salmon, wasabi, and cod roe flavoured porridge. Each packet provides 20mg of GABA, 250mg of calcium, 4mg of iron, seven types of vitamins and is less than 130kcal. Reduced sodium content of less than 2g per pack.

Japan Otsuka Foods Otsuka Foods My Size Manan Rice A new product series based on the concept that food should be available in various sizes just like clothing. The My Size series offers small portions for making a single serving. Manan Rice offers rice blending Manan Hikari, a konjac product resembling rice developed by the company. Has 40% reduced calorie content compared to regular rice and contains digestive fibre equal to three heads of lettuce.

SIDE DISHES

Poland Barilla Barilla Integrale Wholemeal Wheat Fusilli

Contains wheat processed with a special milling process said to be environmentally friendly. Contains natural fibre.

Thailand Bio Asia World Cuisine Organic Germinated Brown Jasmine Rice

High in GABA (Gamma Aminobutyric Acid).

Thailand Mika Tohkai Germinated Brown Rice Made using a germination process to provide GABA (Gamma Aminobutyric Acid).

SNACKS

Italy Noberasco Noberasco Bio Wellness Mix Rich in fibres, which help the intestinal function, and vitamin E that supports the immune system. Also antioxidant properties and contains phosphorous and magnesium.

Norway Axellus Nutrilett Meal Premium Dark Chocolate Snack Bar

Can be used as a meal on the go within a low calorie weight control diet. Each bar provides 215kcal, 14g protein, 23 vitamins and minerals.

Philippines Tubu Food Manufacturing LiteChoice Premium Rice & Oats Light-Sugared Cinnamon Snack

Baked not fried, rich in fiber and free from trans fat, caffeine, gluten, cholesterol and preservatives. It contains natural antioxidants and is made from wholegrain rice and fiber rich oats. Contains Teavigo, a pure, natural and caffeine-free Epigallocafechin Gallate from green tea extract, that enhances the body’s metabolism. Sweetened with Splenda.

SOUP

Japan Asahi Food & Healthcare Asahi Slim up Slim Precious Corn Soup A low calorie dry soup mix. Formulated with multivitamins and minerals, collagen, hyaluronic acid, CoQ10 and other beauty substances. Also contains plant-derived protein that provides a feeling of fullness, and helps control weight.

Malaysia Functional Ingredient Technologies Fitwell Brown Rice Cellulose Miso Soup

Rich in protein, fiber and minerals, and contains no cholesterol, artificial flavors or colors added. Said to improve bowel movement.

Japan Cadbury Halls Relax Herb Sugarless Candy (Honey Lemon & Chamomile Tea)

Said to have healing properties and to be beneficial for the throat, body and mind. Aimed at women in their 30s to 50s.

Japan Morinaga Morinaga Fresh Ramune Features a completely new texture. One bag contains 1100mg of collagen.

SUGAR & GUM CONFECTIONERY

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NEW NUTRITION BUSINESS© New Nutrition Business

July 2009: Published in powerpoint and pdf.

You can also:• download past issues in powerpoint.

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• share the insights with colleagues, customers and suppliers.

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Consumer challenges – quick-hit campaigns that offer tangible and rapid results for those

who follow the rules of the programme – have been the key driver of Special K’s success

and have become synonymous with the brand.

Kellogg Special K – the billion dollar weight management brand

4 NEW NUTRITION BUSINESS

© New Nutrition Business

In contrast with the sharp focus on “drop a jeanssize” and similar results-oriented messages that arethe distinctive and consistent communications ofSpecial K breakfast cereal (since 2001),

Kellogg seems to have struggled to find the rightpositioning for its water.

At launch the label carried a tape measure in anecho of the Special K drop a jeans size conceptwhile advertising promised that: “Losing up to 6pounds in 2 weeks just got easier!”

In its current incarnation the brand has evolved tosay on the label that it: “Takes the edge offhunger”

MUDDLED MESSAGES?

3

NEW NUTRITION BUSINESS© New Nutrition Business

Sales of Kellogg’s Special K20 Protein Water were never high – and now have collapsed,

falling 28% this year. Kellogg’s extension of a breakfast cereal brand to water with a

weight management benefit has proved to be a brand stretch too far. Poor merchandising

didn’t help.

With sales apparently tumbling it’s hard to see how this brand can survive. The recent

launch of Special K Protein Shakes suggests that Protein Water’s days may be numbered

and Kellogg is keen to take a new direction in weight management beverages.

Special K20 Water’s look, shape and

messages have all undergone significant

change in the two years since it was

launched, suggesting that Kellogg was

searching for the right positioning.

BRAND FUTURE IN QUESTION

2

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Kellogg makes second attempt

at protein drink market

NEWS ANALYSIS

To fi nd out more e-mail: [email protected]

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Too busy to read New Nutrition Business?Now you can listen to the wit and wisdom of NNB on your ipod, your computer or your car radio!

Exclusive to license-holders – each case study and news analysis

in NNB is now available to you as a downloadable audio fi le!

You can fi nd the MP3 podcasts for the November 2010 issue by logging in and going to the current issue download page.

To get the benefi t of the MP3 and powerpoint versions of NNB ask [email protected] or [email protected] how you can upgrade your subscription.

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NOVEMBER 2010 31

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Fiber for digestive healthOpportunities, strategies and case studies

October 2010

PPT – 230 slides, product illustrations, charts and tables of data

PDF – 80 pages, product illustrations, charts and tables of data

Ordering is easy…see inside back cover or visit www.new-nutrition.com

PRICE FOR EITHER PDF OR PPT: €300 / $395 / £255 / A$420 / NZ$530 / ¥33,000 / C$395PRICE FOR PDF & PPT TOGETHER: €480 / $630 / £400 / A$670 / NZ$840 / ¥52,000 / C$630

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Products that make a virtue of their fi ber content are being launched in ever-increasing numbers. Branded food and food ingredient companies are fi nding that when it comes to fi ber, the most effective avenue of appeal to consumers is the digestive benefi ts of fi ber intake.

However, knowing how many products have been launched is much less useful information than understanding which strategies companies have adopted, which ones work and which don’t, and why.

This report will enable any company thinking about how to market products with fi ber as a benefi t to:

• Decide on the most appropriate strategy in your category – for example, will you go for a “fi ber makeover” or become an “expert brand”?

• Be clear what the risks are and how to reduce them.

• Identify how to increase your chances of success and generate higher sales volume and/or higher profi t margins.

A concise 55-page description of the strategies and trends relating to products with fi ber for digestive health sets out:

• the core consumer group for fi ber for digestive health and their motivations

• fi ber’s fi ve advantages as an ingredient, including its relative advantages in regulatory terms

• the fi ve steps to creating a successful brand with fi ber for digestive health as its core benefi t

• successful fi ber-digestive health strategy in breakfast cereals, bakery and dairy as well as in new high-opportunity segments such as beverages and meals

• which marketing techniques are most effective and why

Fibre for Digestive Health

www.new-nutrition.com26

CHART 6: NEW FIBER-DIGESTIVE HEALTH CONCEPTS MUST BEGIN IN THE LIFESTYLE SEGMENTFiber and juice is a new concept in the mind of the consumer – and hence new product formats such as this

must begin by targeting the lifestyle consumer. This is particularly true for products using a new piece of terminology like “prebiotic” in connection with fiber.

The word prebiotic has almost zero mass-market awareness – mass-market consumers in many countries don’t

even understand the long-used word “probiotic” so such a new and similar word will be confusing.

The lifestyle consumer, however, will be an early-adopter of prebiotic products. They will also be willing to pay a

premium price – which will be necessary if you are to be able to invest in the consumer education and long-term

brand-building effort needed to grow a prebiotic brand. But with such a long-term investment, prebiotic products

could eventually graduate to the mass market. The technology consumer is also a good place to start with new concepts – and it is this group that finds

Digestive 1st, based on the innovative Barleymax fiber concept (see Case Study 5), appealing. Its offer of a

clinically proven health benefit that’s superior to any other product is exactly what these consumers are looking

for.

Health Focus consumer segmentations and percentage of consumers in each segment

Technology Consumers

LifestyleConsumers Mass-market

ConsumersSolid line = sales

volumes

Broken line = unit selling price

Sales

TIMEMEDICAL

HEALERS

9% 9% 19% 44% 12% 6%

DISCIPLES INVESTORS MANAGERS STRUGGLERS UNMOTIVATEDS

----- EARLY ADOPTERS ----- EARLY MAJORITY ----- LATE MAJORITY ----- LAGGARDS

While some brands with “soft” health benefits saw sales stagnate or fall, cholesterol-lowering brands such as Benecol and Danacol saw sales grow by as much as 20% per annum, despite selling at super-premium prices.2. Lifestyle consumers

Also an early adopter market, these people have no specific medical need but they aim to have a lifestyle of health and wellness. This group has a strong skew towards more

affluent, better-educated, 40+ consumers. They often have high disposable income and they are a worthwhile market to develop. Driven by choice rather than need, they are willing to pay a premium for any brand that supports their wellness lifestyle. They buy soy milk, blueberries, pomegranate juice, probiotic yoghurt – and in fact they are the key driver of the business of food and health and account for 20%-25% of the population in most countries.They are not afraid to experiment and take

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Fibre for Digestive Health

www.new-nutrition.com13

Advantage 1: Better technology, better taste

It’s easier to formulate fibre into foods and beverages and as a result of advances in technology, high-fibre foods taste better than ever before, with none of the notes of

cardboard that marked out high-fibre foods in the past.

For consumers, high-fiber products have long been synonymous with dry, unappealing taste and texture and cardboard-like products. If fiber-fortified foods have failed to build in popularity in the past, the taste and texture

3. Fiber’s five advantages

VOICEOVERCustomer: There’s no fiber in this.Manager: Fiber One Honey Clusters cereal? That’s really good.Customer: It tastes good, there’s no fiber.Manager: It’s actually got about half a day’s worth of fiber in it.Assistant: Sir, right there, right on the box.Customer pours cereal into a bowl.Manager: Honey, touch of brown sugar, crunchy clusters…Customer: Right. Any twigs? Manager: Twigs no. Delicious? Yes.Customer: Right…so. Where’s the fiber?Assistant: Maybe it’s hiding in the honey clusters?Voiceover: Rethink fiber, with Fiber One.

FIBER ONE ADVERTISING EMPHASISES GOOD TASTE

Advertising addresses consumers’ concerns that fiber products have traditionally had a bad taste.

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Fibre for Digestive Health

www.new-nutrition.com10

this trend being continuous in women and

more marked in men older than 60 years9.

For example, a study (Chiarelli et al)

showed constipation prevalence among 18–23

years olds was 14.1%, rising to 26.6% among

45–50-year-olds.

Over half of people over the age 70 live

with a bowel problem such as infrequency or

straining as an everyday experience.

US. Constipation is the most common

digestive complaint in the United States.

Around 15% of American adults report

chronic constipation. A further 50% of the

American population will experience an

episode of constipation every year.

To date, Americans have tended to treat

digestive problems with drugs – such as

Nexium, which is worth approximately $4.4

billion (€2.9 billion) in sales, and Prevacid,

which is worth approximately $3.8 billion

(€2.5 billion) – or OTC remedies such as

Tums. However, these all have long-term

effects and tackle symptoms but do not

address the underlying causes of a lack of

fibre and of an unbalanced gut. In a lot of

cases pharmaceuticals may not be necessary

since many digestive problems originate from

lifestyle issues such as poor diet and lack of

exercise.

EUROPE. In the general population of

Europe the mean value of the reported

constipation rates is 17.1% and the median

value 16.6%.

NEW NUTRITION BUSINE

CHART 3: AGEING POPULATIONS DRIVE DIGESTIVE HEALTH MARKET GROWTH IN ASIA AS WELL AS

EUROPE AND THE US

20% of Asia is >50 years old now, rising to 40% by 2030

The core consumer for health is aged 40-60 (esp 50+). They have high disposable income and when it comes to

health, they are not price-sensitive – provided a product delivers a benefit that they see as relevant and credible.

Ageing populations = continuing growth for products with health benefits.

INTESTINAL HEALTH FACTS

A normal stool weight in Western societies is

50-200g – in countries where the diet is high

in fibre the average is 500g. Some vegetarians

in the West have stools up to 300g a day.

In the UK gastrointestinal disorders are

responsible for 1 in 10 deaths.

Over 17 million working days are lost in the

UK each year through intestinal disorders.

1 in 14 physician consultations are for

indigestion and 1 in 14 for constipation.

1 in 6 hospital admissions is related to a

gastro-intestinal disorder.

EW NUTRPercentage of population aged 50 and above

Fibre for Digestive Health

www.new-nut10

this trend being continuous in women and

more marked in men older than 60 years9.

For example, a study (Chiarelli et al)

showed constipation prevalence among 18–23

years olds was 14.1%, rising to 26.6% among

45–50-year-olds.

Over half of people over the age 70 live

with a bowel problem such as infrequency or

straining as an everyday experience.

US. Constipation is the most common

digestive complaint in the United States.

Around 15% of American adults report

chronic constipation. A further 50% of the

American population will experience an

episode of constipation every year.

To date, Americans have tended to treat

digestive problems with drugs – such as

Nexium, which is worth approximately $4.4

billion (€2.9 billion) in sales, and Prevacid,

which is worth approximately $3.8 billion

(€2.5 billion) – or OTC remedies such as

Tums. However, these all have long-term

effects and tackle symptoms but do not

address the underlying

fibre and of an unbala

cases pharmaceuticals

since many digestive p

lifestyle issues such as

exercise.

EUROPE. In the ge

Europe the mean val

constipation rates is 1

value 16.6%.

CHART 3: AGEING POPULATIONS DRIVE DIGESTIVE HEALTH MARKET GROWTH IN ASI

EUROPE AND THE US

20% of Asia is >50 years old now, rising to 40% by 2030

The core consumer for health is aged 40-60 (esp 50+). They have high disposable income

health, they are not price-sensitive – provided a product delivers a benefit that they see as

Ageing populations = continuing growth for products with health benefits.

INTESTINAL HEAL

A normal stool we

50-200g – in coun

in fibre the averag

in the West have

In the UK gastroin

responsible for 1

Over 17 million w

UK each year thr

1 in 14 physician

indigestion and 1

1 in 6 hospital ad

gastro-intestinal

Percentage of population aged 50 and above

Report

Fiber for digestive healthOpportunities, strategies

and case studies

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NOVEMBER 2010 32

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PRICE FOR EITHER PDF OR PPT: €200 / $295/ £190/ A$345 / NZ$395 / ¥23,000 / C$295PRICE FOR PDF & PPT TOGETHER: €320 / $472 / £305/A$552 / NZ$632 / ¥36,000 / C$472

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Coconut water in Europe and the US: innovation and natural health benefi tsFrom Brazil to America to Europe: coconut water is the fastest-growing new category, with retail sales already above $450 million (€327.5 million), thanks to its strong isotonic, hypo-allergenic and all-natural health benefi ts. Using new processing technologies and new brands, start-up companies in Germany, the US and elsewhere are growing coconut water sales and getting premium prices. Coca-Cola, PepsiCo, some of Europe’s biggest brewing families and even Madonna have invested in the sector.

Innocent Drinks: seven strategy lessons from the setbacks of Europe’s biggest smoothie brand Innocent rocketed from start-up to over $200 million (€145.6 million) in retail sales within eight years, creating a brand new category in Europe and becoming an iconic lifestyle marketing brand. But between 2007 and 2009 sales plunged by 29%. Innocent’s experience provides seven simple strategy lessons.

20 key case studies in functional & health-enhancing beveragesWhat makes some functional and health-enhancing brands succeed and what makes others fail? To answer this question, we have researched 20 detailed case studies of brands addressing a range of benefi ts – including energy, joint health, sports beverages, protein boosting, digestive health, weight management and heart health. Examining packaging, choice of ingredients, nutrition profi les, marketing communications strategy, pricing strategies, which consumers buy them and why, and supermarket sales data, we have boiled down the strategies of successful beverage brands into a concise 9-page summary.

Coconut water

www.new-nutrition.com13

Reiss looked into the science and the market and saw that coconut water had potential: “The beverage market trend was to healthy beverages in 2002, just as today, and here was something natural with natural health benefits, that are recommended by the United Nations. And it fit the needs of European consumers.”3.1 Proprietary processReiss and Dr. Martins were joined by Steffen Borzer, a specialist in communications and in the organics business, and the three were the founding shareholders of the business.“We had a white sheet of paper with an idea…to make coconut water. At that time we had two possibilities,” explained Reiss. “We could buy it ready-packed from Amacoco in Brazil – but this company was focused primarily on selling coconut pulp and

they used water from mature coconuts as these have more pulp. But the science says only young green coconuts have the water with the health benefits. Or we could source coconuts ourselves, extract the water and pack it in Europe.“We had also decided,” he added, “to make the product organic from the beginning. It provides a USP and for European consumers it is also a quality aspect.”To achieve their aims they would need to work with Brazilian coconut farms to gain organic certification. But in Brazil there was already a huge domestic demand for coconuts, meaning that there was no incentive for farmers to supply organic product because they could easily sell their coconuts in Brazil, whether they were organic or not.

It also became clear that packing the product in Brazil wasn’t going to work, since production

Coconut fruit pulp

Coconut juice

Coconut pulp

Green coconut and mature coconut are very different. Only green coconuts that are 6 months old or

younger produce the coconut water that has been defined by the UN as providing health benefits. Each

young green coconut contains about 400ml of water. In Brazil many coconut water products are made

from coconuts aged up to 9 months, which have lower nutritional value.

Green coconuts

Matured coconuts

Coconut water

www.new-nutrition.com

TABLE 1: TROP COCO NUTRIONAL FACTS AND INGREDIENTS

9

CHART 2: COCONUT WATER PRICE COMPARISONS IN USPricing shown on a price per litre equivalent basis. The market leader, Vita Coco, is able to achieve a very signifi cant premium over established formulated brands by retailing in 330ml packs – said to be its biggest seller. Even in a 1-litre it is still at a healthy 100% premium over formulated products. Coconut waters sell at a discount to juices – such as cranberry – in 1-litre packs but a premium in single-serve packs.

Priceper litre

equivalent($)

Source: Information supplied by Vita Coco, Zico and ONE and from store visits

0

$5.42

330ml$1.79 per pack

Vita Coco

.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

$3.58

500ml$2.59 per pack

Vita Coco

$1.79

1 litre$4.99 per pack

Vita Coco

$4.42

330ml$1.46 per pack

Zico

$5.16

250ml$1.29 per pack

ONE

$1.69

1 litre$1.69 per pack

Gatorade Endurance

$1.89

1 litre$1.89 per pack

Powerade

$2.50

2 litres$4.99 per pack

Ocean Spray Cranergy

cranberry juice

Coconut water

www.new-nutrition.com4

aseptic TetraPak have made it technologically

feasible to package and distribute fresh coconut

water.In 1999 it appeared on the Brazilian market,

and by 2002 had become the second-most

highly consumed beverage in the country,

after orange juice. Nowadays, it has become so

common across Brazil that some McDonalds

serve a private-label brand of coconut water.

While packaged coconut water is relatively

new in Brazil, the idea of consuming coconut

water is not. Roadside stalls selling green

coconuts with a hole cut in them and a

drinking straw inserted are a very common

feature across the country.

2.1 Natural health benefits

Coconut water has a number of benefits:

1. It’s an all-natural product with natural

sweetness. Most brands add nothing to

their product.

2. It is the fruit juice with lowest calorie

content – 19-24cal per 100ml, compared

to 48 calories for orange juice.

3. It is isotonic, with a similar mineral balance

to the water in your body, and from a plant,

a natural isotonic liquid, nothing added.

4. It is proven to be hypo-allergenic – an

increasingly important point of difference

in a market in which sales of foods “free-

from” significant allergens are on the

increase and “free from the eight major

allergens” is also gaining ground as a

selling message. Some food companies

even avoid the use of regular foods such as

celery or kiwifruit in their products because

of concerns about allergens.

5. Naturally fat-free, gluten-free, cholesterol-

free, preservative-free, free-from

sweeteners.

6. High content of vitamin C (around 200ml

will supply 90% of your RDA).

7. The product is very mild and does not have

a lot of acidity.

It is important to note that these benefits only

attach to the fluid found within young green

coconuts – those aged six to nine months. Not

While packaged coconut water is relatively new in Brazil, the idea of consuming coconut water is not. Roadside stalls selling green

coconuts with a hole cut in them and a drinking straw inserted are a very common feature across the country.

Published by Report

Coconut water:

innovation and natural

health benefits drive a

new category

Innocent

www.new-nutrition.com

the collapse of its sales. Innocent is paying for its failure to innovate and differentiate – and as a result its retail price is down as much as 30%-40% in many retail outlets. When the recession ends there is a danger it won’t be able to get its prices back up again. It is sacrificing margin to maintain volume – and with the expensive ingredients found in smoothies that’s a route that can only result in a serious erosion of profitability.

3.6 InnovationMixed performance on innovationInnocent has continued to invest in new product development throughout the downturn.

Veg Pots: In November 2008, it launched Tasty Veg Pots, a range of microwaveable vegetable-based lunchtime meals marketed on the basis that each one offers three portions of veg. These pick up on the trend for foods with an intrinsic health benefit to be used as ingredients in more convenient product formats, their presence intended either to provide a health benefit or –if they’re not present at sufficient levels to have any measurable effect – simply to create a “health halo”.While it’s true that sales of some whole fresh foods with purported health benefits – such as spinach and broccoli – increased sharply in the period 2005-2007 as the “superfoods” frenzy took hold in the media, it’s also the case that the growth in many categories has come to an end. The reason is clear – whole fresh foods are not convenient

19

With its strategy having failed to justify its super-premium pricing and sales plunging as a result, Innocent has drastically cut its

prices – by 30%-40% in some cases. It’s a step that might protect the brand’s volume, but once taken Innocent will most likely

never be able to recover the lost value.

Innocent

www.new-nutrition.com

of them to have an effect – they’re just there as a marketing tool, they’re not doing anyone any good and if they put enough of some of them in to have a real effect they wouldn’t taste good.

“Our Super Smoothies only have the benefits that you can get naturally from fruit and we make sure there’s enough of the ingredients to have a positive natural effect – and that they taste excellent.”

The Detox product, for example, contains lemon, honey and ginger. The Vitamin C Super Smoothie provides 500% of your RDA of vitamin C, “but all from natural sources,” emphasised Reed. “All the vitamin C comes from rosehips and acerola cherries. A competing product to ours has

300% of the RDA of vitamin C, but it’s all added back from synthetic sources. We don’t do that – we only want to offer natural health benefits.”

Brand adds fibre-digestive health message

Those benefits include fibre content, said Shilpee Aggarwal, Innocent’s nutritionist. “A smoothie gives you on average 15% of your GDA for fibre. Fibre is one of the biggest problem nutrients in the UK – eight out of 10 people aren’t reaching their fibre requirements.

“Chowing down on a bowl of sprouts or prunes

Innocent Tasty Veg Pots have recorded £15 million ($24 million/ 17 million) in retail sales in their first full year on the market and created a new category in the UK supermarket – healthy vegetables that are ready-to-eat, require no preparation, come in a delicious sauce and deliver three of your recommended 5-a-day in a single serve. Drink one of its smoothies with your Veg Pot, says Innocent, and you will get your full 5-a-day in one meal.

13

Innocent

www.new-nutrition.com4

an impressive 5% sales increase to £114.1

million ($180 million/€131 million), despite a

background of intensely negative media about

probiotics.

• Benecol cholesterol-lowering drink – the most

expensive dairy product in the UK supermarket

– actually increased its sales by 18.8% to £39.2

million ($62 million/€45 million).

There’s an even closer parallel for Innocent in the

example of blueberries, the trendy, super-premium

priced fruit. Sales of blueberries continued to

increase, despite selling at a 600% premium to

apples, even while Innocent sales fell.

The argument that Innocent’s premium pricing

is the main problem doesn’t stand up to scrutiny.

The decline is not just a matter of price, it’s a

symptom of failing to justify the price in the minds

of consumers – and that is a result of a number

of serious strategic problems, problems which we

believe could prevent Innocent smoothies from

regaining their former level of sales.

Lesson 1: Talking to the wrong

consumers

It’s not premium pricing in itself that is the

problem. Innocent smoothies’ challenge is that its

core consumers – who, according to its competitors,

are 20-somethings and early-30s, although Innocent

maintains they have broad age appeal – have been

more affected by the recession than older, more

affluent consumers.

The core consumers of brands with health

benefits are people aged over 40. Professor David

Hughes, Emeritus Professor of food marketing

at Imperial College, London, explains of the

UK’s largest grocery chain, Tesco: “Tesco has six

segments of shoppers. The finer foods group – who

are 16% of Tesco’s shoppers – are higher income

and include many older, richer people and they are

2.5 times more likely to be buying blueberries than

any other group.”

This consumer profile matches that of many – if

not most – health-oriented brands.

CHART 1: THE RISE AND FALL OF INNOCENT SMOOTHIES

As Innocent has gradually lost its point of difference compared to other juices newly-cautious consumers

have questioned whether the super-premium price is justifi able and found that it is not.

Source: Nielsen supermarket scanning data for UK

Sales(£ million)

0

20

40

60

80

100

120

£30($47/€35)

2005

140

£80.5($126/€92.7)

2006

£131.4($206/€151)

2007

£107($168/€123)

2008

£94.3($148/€109)

2009

Published by Report

Innocent Drinks: seven

strategy lessons from

the setbacks of Europe’s

biggest smoothie maker

Beauty foods and beverages

www.new-nutrition.com21

Scott Vincent Borba says he came up with Borba Skin Balance Waters, which tout an “inner beauty” benefit based on a formula of vitamins, minerals and botanicals, as a result of a serendipitous accident. “I was thinking about supplements as a business idea and I was rushing out the door and I tripped,” recalled the Los Angeles-based entrepreneur. “I had a litre bottle of water in my hand and a handful of supplement pills – and I had been putting on some moisturiser.“And the next thing you know I was on the floor, and all this stuff came together in a puddle. And I said, ‘There it is: There’s the billion-dollar global idea.’”Whether Borba’s creation story is apocryphal or not is beside the point. The point is that when he introduced his line about five years

ago, he struck a chord in the enhanced-water market by tapping into the Asian, yet increasingly Westernized, idea of using herbals and nutraceutical ingredients to promote skin care and beauty from within.

5.1 Beauty industry backgroundBorba was a beauty-industry veteran who had helped launch the successful Hard Candy cosmetics brand as well as participated in a handful of re-launches for high-end hair-care and cosmetics lines. When he had his “accident,” he was toying with how to take advantage of the convergence of several trends.One of them was the popularity of nutraceuticals and supplements, of which he

5. Case study: Borba – an “expert brand” in cosmeceuticals

Beauty foods and beverages

www.new-nutrition.com

NESTLÉ’S GLOWELLE BROCHURE

Glowelle’s 16-page glossy booklet introduces Glowelle as “a beauty drink dietary supplement packed with antioxidants from vitamins, phytonutrients, and botanical and fruit extracts to help nourish and protect your skin from within”. The booklet includes the following images.

14

Beauty foods and beverages

www.new-nutrition.com5

2.3 Key lessons

The key lessons from the case studies for

beauty foods and beverages are:

1. Be an expert brand – beauty values

first, food and beverage values second.

Beauty can’t be a credible add-on for a

breakfast cereal.

2. Get the product format right –

beverages or pills seem to be the strongest

delivery system.

3. Distribute the product through the

right channels and merchandise it

well – beauty foods do not belong in the

supermarket.

4. Be aware that getting consumers

to “feel the benefit” will be a

challenge.

5. Make the benefit one consumers

can get without too much trouble – if

you can deliver the benefit in a one-shot

daily dose that’s better than asking them to

consume two or more doses a day.

6. Adopt a long-term strategy – new

and unfamiliar benefits take time to get

established.

7. Plan for a niche – share of mind already

belongs to the established mega-brands in

the topical beauty products world and so

beauty foods and beverages will remain

niche.

Key to success is that your product is credible enough to earn a spread in Paris Vogue as Glowelle and Borba did in November 2008.

Published by Report

Beauty foods & beverages:

7 strategy lessons

PDF 28 pages PPT 87 slides

PDF 27 pages PPT 106 slides

PDF 24 pages PPT 76 slides

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Consultancy and strategic advice

Data is everywhere, explanation is rare. We focus on the explanation.Our exclusive focus on the business of food, beverages, nutrition and health gives us unrivalled knowledge of our sector globally. Our customers appreciate our ability to explain what is happening and what it means to them. This is why we are uniquely positioned to deliver significant value through a range of services including:

Health & Nutrition Trend Analysis: what we do better than anyone else. All year round we monitor consumer research, supermarket sales data and interview 400 industry executives to give our customers clear, actionable insights. Then we tailor these to individual companies’ specific areas of interest. From Australia to America to Europe, businesses use our unrivalled health trend analysis to inform their strategy and guide the direction of product development. We individually tailor a package for each company. We make the content as convenient and accessible as possible, using web delivery tools, webinars, audio files and in-house presentations.

For a taste of our trends analysis, take a look at our annual Ten Key Trends report at www.new-nutrition.com/10kt2010.asp. Julian Mellentin’s in-person presentations of the Key Trends are popular with companies around the world. For more information e-mail: [email protected]

Health & Nutrition Success Factors: our expert focus means that we are able to identify and constantly refine and evolve – in response to the evolution of markets and regulations – the “Golden Rules” for success for products with health benefits. Tailored to your category and market, our Success Factors guides are widely used by many companies. For more information e-mail: [email protected]

Business Models: since 1995 we have identified models which are now widely used to help businesses think clearly about how to get the best results, whether for commercializing science, new ingredients or food and beverage brands.

Workshops and presentations: insight into how to create specific advantages for your business, explanations of successes and failures across many categories and markets, and much, much more. Julian Mellentin delivers these in person or long-distance via webinars.

Market overviews and research: enabling companies to identify and validate opportunities.

Case studies: analyses of particular brands and what key lessons can be applied in your business.

Strategy consulting: strategic guidance and strategy reviews that allow you to define and analyse your strategic choices.

Brand development and positioning: market and strategic analyses to ensure your brand propositions make sense.

Confidentiality: All of our work is carried out under complete confidentiality. Unless given prior permission we never disclose the names of any clients or the details of any projects in which we have taken part.

To find out more contact [email protected]

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PUBLICATIONS

REPORTS

Coconut water: innovation and natural health benefits drive a new categoryFrom Brazil to America to Europe: coconut water is the fastest-growing new category, with retail sales already above $450 million (€327.5 million), thanks to its strong isotonic, hypo-allergenic and all-natural health benefits. Using new processing technologies and new brands, start-ups in Germany, the US and elsewhere are growing coconut water sales and getting premium prices. Coca-Cola, PepsiCo, some of Europe’s biggest brewing families and even Madonna have invested in the sector.

Innocent Drinks: seven strategy lessons from the setbacks of Europe’s biggest smoothie makerInnocent Drinks rocketed from start-up to over $200 million in retail sales within eight years, creating a new category in Europe – fruit smoothies. But between 2007 and 2009 its sales plunged by 29% and prices were slashed. This unique 27-page report sets out the seven strategy lessons that can be learnt from the experience of Innocent.

Pom Wonderful: how innovation in science, packaging and branding can create a new superfruit categoryPom Wonderful pomegranate juice is the world’s most distinctive beverage brand. First launched in 2002 in innovative and eye-catching bottles, its meteoric rise helped create a category which did not previously exist. This all-new Case Study from New Nutrition Business delivers a close-up view of Pom Wonderful’s strategy and positioning and the lessons that everyone can learn from this extraordinary brand.

Beauty foods and beverages: 7 strategy lessonsBeauty foods and beverages are big in Japan, but in the West few brands have gone beyond a niche. This unique report sets out the seven strategy lessons that can be learnt from the experience of Danone Essensis, Nestlé Glowelle and Borba Skin Balance Water - three case studies which provide the most clear insights into the risks and opportunities in the “beauty-from-within” business.

10 Key Trends in Food, Nutrition & Health 2010Our annual review, 10 Key Trends in Food, Nutrition & Health, is one of the most sought-after publications in the food industry. The report identifies the 10 mega-trends that will have the most impact on the food and beverage industries over the year ahead. This year we also include seven Micro-Trends, and we address regulatory issues in Europe. It points companies towards some clear and practical strategies for their functional food and beverage developments, production and marketing.

20 Key Case Studies in Functional and Health-Enhancing Beverages 2010Using 20 Case Studies of brands addressing a range of benefits – energy, joint health, sports beverages, protein boosting, digestive health, weight management and heart health – this report looks at what makes some functional and health-enhancing brands succeed and what makes others fail.

Probiotic juice: five key strategy lessons from Europe and the USCase studies in digestive and immune healthProbiotic juice is one of the biggest untapped innovation opportunities in the healthy beverage business, worldwide. The author of this unique report, Julian Mellentin, drawing on case studies from Europe and the US, sets out the five key lessons that are essential reading for anyone who wants succeed in probiotic juice.

Marketing Kids’ Healthy Beverages: Ten key case studiesIn the market for kids’ foods and drinks, it’s in beverages that you will find the most examples of success – and some of the smartest innovations.

Organic and all-natural kids’ snacks and baby foodsSeven key case studiesHealth-conscious parents seem committed to continuing to buy healthy food for their children despite the recession, even as they economise in other ar-eas. This 42-page report looks in detail at these different approaches. Using seven detailed case studies we analyse the performance and strategies of leading organic and “all-natural” kids’ snacks and babyfood brands in the US and UK.

Failures in Functional Foods & Beverages: And what they reveal about successThe functional foods market is a complex one. Success with a new product or ingredient is rare. This unique 98-page report examines failures by functional brands and ingredients. It sets out the lessons that can be applied by anyone trying to develop an effective strategy for a brand or trying to commercialise nutrition science and offers concise strategies for reducing the risk of failure.

Energy shots: birth of a new premium-priced, high-growth categoryStrategies, trends and case studies from the US and UKSuch is the value to consumers of the proposition of a daily dose of energy with no added sugar that in the US alone this new category has soared to over $350 million in retail sales in less than two years - despite recession and despite selling at a massive 400% price premium over “mainstream” energy drinks such as Red Bull!

Trends & Strategies in Weight Management: Ten Key Case StudiesOur concise analysis shows which brand strategies are most effective and why, which ingredient strategies are most effective and why and sets out the key market and consumer trends. Our analysis is illustrated with ten detailed case studies which cover satiety and fat burning and look at how to use weight management to revive old brands or create new ones.

Superfruit: strategy for superfruit successSuperfruits are the product of a strategy, not something you find growing on a tree.Superfruits are revolutionising the way consumers relate to fruit and fruit-based products and they’re growing their market fast – from 40%-100% every year. And yet just a handful of fruits have crossed over from commodity status to superfruit stardom. This guide provides a checklist for superfruit success.

Probiotics: Successful Strategies from the Global MarketplaceThis report is written for anyone trying to develop an effective strategy in the challenging and fast-changing area of probiotics. It sets out the seven steps to creating a successful probiotic brand and describes probiotic strategy both in dairy and emerging new segments such as fruit juice and solid foods.

The Food & Health Marketing HandbookIn a competitive world how do you take your technology to market so that it’s your product that wins at the point of purchase? This handbook tells you how to get the best out of the science and the health benefits of your ingredients or products.

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