N · PDF fileu t r i t i o n. BUSINESS. V. olume. 20 n. umber. ... Maltodextrin, Milk...

N e w N u t r i t i o n

B U S I N E S Swww.new–nutrition.com February 2015 iSSn 1464-3308Volume 20 number 5

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 31-35Pages 8-9 Pages 17-18

Continued on page 3

Chocolate giant shows it “gets” snacking

Hershey, America’s biggest chocolate confectionery maker and one of the biggest in the world, in January 2015 announced the acquisition of Krave, possibly the fastest-growing meat snack brand in the western world. On the surface, the purchase of a marketer of premium meat snacks by a chocolate giant looks odd, but in fact it illustrates that Hershey “gets snacking” and understands the most important growth trends.

“Krave Jerky is a great fit to our portfolio and overall snacks and adjacencies strategy,” said Michele G. Buck, President, North America, The Hershey Company, in a media statement. “The Krave brand delivers on portable and protein nutrition while also understanding consumers’ food preferences, including the desire for simple ingredients and transparency, something that is also a part of Hershey’s strategic vision. We are excited to add Krave Jerky’s unique, chef-inspired products and be a part of this transformational category.”

By this acquisition Hershey has shown that it understands a truth that many companies are still wrestling

with – that to be successful in snacking you cannot allow your strategy to be confined by the silo of your existing category. And that’s for the simple reason that in the mind of the consumer, anything can be a snack. When they are looking for a snack they don’t shop just one aisle – fruit, yoghurt, chocolate, chips and meat snacks are all in competition for people’s attention.

No-one – anywhere – forecast the big change that’s currently sweeping over meat snacking. Entrepreneurial

start-ups are reinventing a tired “unhealthy” category with a focus on health, nutrition and naturalness; creating new and better product formats, using new production technologies – and in the process appealing to totally new groups of consumers. Sales are surging upwards with growth of 20% annually for many countries over the period 2012-2014.

Food and beverage executives dream about successfully reinventing old categories that have run out of growth. Sometimes it is established brands that lead the reinvention, but in the case of meat snacking it’s new brands and totally new products, with a new image very different from established brands, that are shaking up the category.

As is often the case in our industry, innovation is being driven by new players led by people with no previous experience. Jon Sebastiani, founder of Krave, for example (see detailed Case Study in June 2014 New Nutrition Business), has a background in wine. He has created a brand with a completely different image from those already in meat snacking and has

By Julian Mellentin

Arla’s protein satiety drink fails

to take wing

Bold brain health message for

beverage

Guilt-free protein brand edges into

breakfast

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

From bars to breakfast

NEW NUTRITION BUSINESS

Ingredients: Skimmed milk (90%), Sugar, Whey protein, Fat Reduced Cocoa Powder (1.3%), Maltodextrin, Milk minerals, Stabiliser (Carrageenan), Vitamin D.

Nutritional Values per 100g

Energy 65kcal

Fat 0.5g

of which saturated fat 0.4g

Carbs 10g

of which sugars 9.5g

Protein 5g

Fibre 0.4g

Sodium 0.07g

Calcium 169mg

Vitamin D 0.75µg

Vitamin B12 0.44µg

Wing-Co nutrition facts

February 20152

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m


C O N T E N T S & C O N T A C T S

All enquiries: Miranda MillsCrown House, 72 Hammersmith RoadLondon W14 8TH, UKPhone: +44 (0)20 7617 7032Fax: +44(0)20 7900 [email protected] by Mastercard, American Express and Visa accepted.

For 1 year at €910/ $1200/ £765/ A$1330/ NZ$1550/¥110,000 /C$1200 (11 issues).For 2 years at €1590/ $2100/ £1330/ A$2250/ NZ$2550/ ¥192,000 /C$2100 (22 issues).All including first class or airmail postage, net of any bank transfer charges.Published 11 times a year byThe Centre for Food & Health Studies

ISSN 1464-3308 All rights reserved, photocopying of any part strictly prohibited.

EditorJulian [email protected]

Dale Buss, New Nutrition Business, 6390 Cherry Tree Ct, Rochester Hills, MI 48306, USA.Tel: 248/651-9648 Fax: 248/[email protected]

Crown House, 72 Hammersmith Road,London, W14 8TH, UK.Tel: +44 (0)20 7617 7032 Fax: +44 (0)20 7900 1937

PO Box 21675HendersonAuckland 0650New Zealand

COMPANIES AND BRANDS IN THIS ISSUE

New Nutrition Business uses every possible care in compiling, preparing and issuing the information herein given but can accept no liability whatsoever in connection with it.

© 2015 The Centre for Food & Health Studies Ltd. Conditions of sale: All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. The Centre for Food & Health Studies does not participate in a copying agreement with any Copyright Licensing Agency. Photocopying without permission is illegal. Contact the publisher to obtain a photocopying license. This publication must not be circlated outside the staff who work at the address to which it is sent without the prior written agreement of the publisher.

5-Hour Energy ........................23,24,25,26Arla Foods .............................................8,9Asda........................................................14Athenos ..................................................27Boots .......................................................14BrainWave .........................................17,18Cedar’s ...................................................29Cheerios ..................................................6Chobani ...................................................3Clif ...........................................................3Coca-Cola ................10,11,12,17,20,21,26Core Power ...................................10,11,12Cyclone Milk ...........................13,14,15,16Darwin Private Equity ...........................15Engine2 .............................................27,29Fair Oaks Farms .....................................10Fairlife...........................................10,11,12For Goodness Shakes .............................14Frito-Lay .................................................28Garden Fresh Gourmet ................27,29,30

General Mills ............................................6GlaxoSmithKline ....................13,14,15,16Hershey ....................................................1Holland & Barrett ..................................14Inneov ......................................................7Jack Links .................................................4Kashi ........................................................6Kellogg Special K .................................5,6Kraft .......................................................27Krave ..................................................1,3,4L’Oreal .....................................................7Leo Burnett Worldwide ............................6Living Essentials ......................23,24,25,26LXR Biotech .....................................25,26Maximuscle .......................................13,16MaxiNutrition .........................13,14,15,16Minute Maid .....................................20,21Monster .............................................24,26Nestle ..............................................7,27,28Osem Group ..........................................27

Paramount Farms ...................................19PepsiCo ..............................10,25,26,27,28Perky Jerky ................................................4Pom Wonderful .......................19,20,21,22Red Bull...................................23,24,25,26Sabra ............................................27,28,29Sainsburys ..............................................14Sparkling Ice ..........................................24Strauss Group ........................................27Sumo .................................................17,18Sun Latte ................................................12SunnyD X .........................................23,24Talking Rain...........................................23Tesco ......................................................14ThinkThin ..........................31,32,33,34,35Tribe .............................................27,28,29Whole Foods Market ....................27,30,31Wing-Co ................................................8,9Xyience ..................................................23

LEAD STORY

1,3--4 Chocolate giant shows it “gets” snacking

EDITORIAL

5-6 Flagship brands of breakfast cereals, hit by “perfect storm” of trend changes, start to sink

7 What does success look like?

8-9 Arla’s protein satiety drink fails to take wing

CASE STUDIES

10-12 DAIRY STRATEGY: Coca-Cola’s bold bid in low-sugar dairy

13-16 SPORTS NUTRITION: Sports nutrition spun around by Cyclone Milk

17-18 BRAIN HEALTH: Bold brain health message for beverage

19-22 STRATEGY: Antioxidant message for pomegranate pioneer’s return to TV advertising

23-26 ENERGY DRINKS: Energy drinks still buzzing but slide sets in for shots

27-30 SNACKING: Hummus keeps growing as market nears $1 billion

31-35 SNACKING Guilt-free, gluten-free indulgent protein brand edges into breakfast

NEW PRODUCTS36-40 Functional & healthy-eating new

product launches

IMPORTANT NOTICE

41 A polite reminder to our subscribers

REPORTS

42 10 Key Trends 2015

HOW TO SUBSCRIBE

43 Case Study Order Form

44 Subscription Order Form

February 2015 3


E D I T O R I A L

Continued from front page

seen his company’s sales leap from $300,000 in 2010 to a projected $50 million (€44 million) in 2014.

Established players in a category can often take a blinkered view of who their competition is – seeing only as far as rival brands next to them on the shelf. That’s not a mistake that the new meat snack players are guilty of.

“Our competition is not only other jerky manufacturers,” says Sebastiani. “Any snack item is competing for ‘stomach share’. And from our point of view, we are a better-for-you snack company.” He sees his products lining up alongside Clif bars and Chobani Greek yoghurts.

There are three aspects to this new development in snacking:

1. NEW HEALTH AND NATURALNESS MESSAGES

Three key health benefits have taken a strong place in health-conscious consumer’s minds over the last 4-5 years and are driving sales growth in multiple categories. It is these that the new meat snacking brands are connecting to. These are:

• Protein• Gluten-free• Natural

Protein: ‘Healthy protein’ is the Krave brand’s main message; others use “great protein” or “high protein”. The essence is connecting to health-conscious consumers’ growing understanding that protein has benefits for anyone looking to maintain a healthy figure. Reporting by bloggers and mainstream media about the emerging positive science connecting protein to healthy weight is helping to drive consumer interest.

Hand-in-hand with these some brands also provide reassurance messages such as:

• Low fat• Low carb• Low calorie


[BOX] KEY MESSAGE WHEN GIVING OUT FREE SAMPLE FROM STANDS

Message focus when giving free samples is

“Real Protein” “Gluten free”

and “Low Calorie”

Message focus when giving free samples is “Real Protein” “Gluten free”and “Low Calorie”

KEY SAMPLING MESSAGES FOR KRAVE

KRAVE CONNECTS TO MULTIPLE KEY TRENDS


All natural message of Findus

Instead of saying “natural”, Findus Frozen Foods uses strong “no colours, no preservatives, no palm oil” messages on its brands in every market. This example is from France.


All natural message of Findus

Instead of saying “natural”, Findus Frozen Foods uses strong “no colours, no preservatives, no palm oil” messages on its brands in every market. This example is from France.

1NATURALLY

FUNCTIONAL

The strongest foundation for success 2 Paradise for start-

ups – innovation without limits

SNACKIFICATION

4PROTEIN

Powered by “naturally functional”


GSK’s The Protein Project - a 12-week fitness challenge involving three “normal guys,”

The three men are trained and advised by professional trainers and celebrity sports stars. They also appear in TV, radio and print advertising and marketing. The three “normal guys” taking part have been carefully selected among 10,000 applicants to reflect this target group.

“We have taken a risk in preforming a real-time body challenge. In the past, sports nutrition brands have promoted ‘before and after’ campaigns but only introduced the audience to the challenge at the end. We found that the public, in particular the consumers who are sceptical about sports nutrition, do not trust the ‘before and after’ campaigns.

“The Protein Project aims to take them through step-by-step in order to ensure credibility and trust.”

Measure the benefit and show it to them

2

3Market shift means

opportunity for entrepreneurs

WEIGHT WELLNESS

7The normalisation

of avoidance

FREE-FROM

February 20154



E D I T O R I A L E D I T O R I A L

Gluten-free is a message described by Krave’s Sebastiani and others as “very important”. Krave puts gluten-free front and centre in its communications and it’s hard to find a brand not using the message. Increasingly gluten-free has become a “free from something bad” message that’s valuable to health-conscious consumers. And it’s a message that’s as firmly embedded in their minds as the positive messages about protein.

Natural: Krave’s front-of-pack highlights the fact that the product has ‘no artificial ingredients’ and is ‘minimally processed.’

2. NEW PRODUCT TYPES, NEW TASTES

Krave and others use contemporary flavours that are entirely new to meat snacking – such as basil citrus and lemon garlic.

3. NEW CONSUMERS

The end result of all this activity is that the meat snacking category is growing by 20% per annum in the US and UK, drawing in new consumers who are looking for protein and to whom these messages, tastes, textures and packaging all appeal. And overwhelmingly, these new consumers are young and female.

“It came as a shock to learn that over 50% of our consumers are women!” Krave’s CEO told NNB. Jack Links, Perky Jerky and others all specifically target women. Also important are people keeping fit and doing sport one or more times a week.

In many countries meat snacking has long had an image as being unhealthy, downmarket and very male. As a result, marketing is key to getting across the message that meat snacking has changed, and within the marketing toolbag the most powerful tool is sampling: “The most important way of getting people to listen is to

have them try the product,” says Krave’s Sebastiani. “We call it our ‘meat-to-mouth’ philosophy.”

Focusing mainly on the major cities where the health-conscious consumers clusters, sampling teams, “focus on local gyms, events from marathons to wine festivals. And that has to be tied to retail activation, having a high percentage of local retailers stocking the product so people who want to can buy it.”

One of the few things that’s certain in the business of food and health is

that consumers’ interests evolve and can have some surprising side-effects. The reinvention of meat snacking is one of those unexpected side-effects – and a reminder that there’s no category which is immune from reinvention with new brands, new products and new health benefits.

Hershey’s acquisition of Krave also illustrates that even corporate giants can think and act with vision and creativity – if they chose to.

CHART 1: PRICE COMPARISON FOR KRAVE MEAT SNACKS

0

10

20

30

40

50

60

70

80

Krave Black Cherry Barbecue 3.25oz/92g

Jack Link’s Sweet Teriyaki Turkey 3.25/92g

Perky Jerky Hot and Bothered Beef Jerky

2.2oz/62g

BiFi (40g)

$6.99(€ 5.13)

$5.62(€ 4.13)

$4.99(€ 3.67)

$2.15(€ 1.58)

$75.98(€ 55.88)

$61.09(€ 44.93)

$80.48(€ 59.19)

$53.00(€ 39.50)

Price per pack

Price per pack

Price per pack

Price per pack

Price per kilo

Price per kilo

Price per kilo

Price per kilo

Source: perkyjerky.com; kravejerky.com; jacklinks.com

$

BAR NEXT FOR KRAVE

Krave has already said that it intends to launch a meat bar (currently it sells only jerky) in 2015. Meat bars launched by Epic (see picture) have already proven themselves to be successful - and they are also a very high margin product, possibly among the most profitable snack product that anyone could launch.

Krave will benefit from Hershey’s distribution skills, which will get the brand into better convenience store distribution.

February 2015 5


E D I T O R I A L E D I T O R I A L

The dramatic decline of Special K breakfast cereal underscores how the big breakfast cereal brands suddenly find themselves on the wrong side of the big trends – undermined by consumers’ shift from “weight management” to weight wellness”, by the rising consumer definition of “good carbs and bad carbs”, by gluten-free, by the snackification of breakfast and by more and more people’s dislike of foods they perceive as being “too processed”.

The senior executives of many big cereal makers have spent most of the past five years ignoring the very clear shifts. Some will tell their teams that with some new ingredients and marketing efforts brands can be re-positioned and the slide reversed. But that would be a serious self-deception. The big brands are so disconnected from the shift in market trends that many are beyond reinvention.

The glory days are over for breakfast cereal. The category won’t disappear, but a tipping point has been reached and managing the long-term decline of the big household brands is the focus of strategy from now on.

Sales of Kellogg’s Special K brand in its home US market have taken a spectacular dive that’s unprecedented for a product line that anchors one of America’s biggest food companies.

The dozens of Special K items – both snacks and breakfast cereals – had combined sales of $1.22 billion in 2014. As Chart 1 shows, that was a 13.3% nosedive from 2013 as Special K reversed several strong years of growth that began when Kellogg reinvented Special K as a weight-management tool back in 2001. To put the scale of the fall in context, the

total breakfast cereal market fell by 4%, according to IRI.

And Special K’s problems aren’t confined to the US market. In the UK the sales slide started earlier and sales of Special K cereal fell by 30% between 2011 and 2014, declining by 11% in 2014 alone. In the total UK cereal market value and volume fell by around 5%.

One of Special K’s biggest problems is that consumers are turning away from dieting and weight management and adopting a lifestyle of weight wellness. Increasingly, for their everyday food choices, they have in the back of their mind, for almost every decision, whether their choice is a good one for helping maintain a healthy weight and a healthy body shape. Chomping through two bowls of breakfast cereal a day doesn’t fit with this approach to health – and Special K has no point of difference any longer in a world in which it’s easy to make healthy choices, from the lunchtime salad to the family shop,

and more and more brands have made a lower calorific value a basic characteristic.

Ken Harris, principal of Cadent Consulting and a seasoned brand marketer, said that Kellogg was “smart to do what they did with Special K and proliferate it as a megabrand over the years.” But he underscored that: “Understanding of health and wellness is what’s starting to morph. People are questioning the efficacy of manufactured health and nutrition brands.”

Kellogg appeared to recognise that weight management had shifted to weight wellness, with Kellogg CEO John Bryant telling investors that: “I think consumers are changing their views on weight management from ‘reduce calories’ to ‘nutritious foods’.” Special K, he explained, can “absolutely meet that criteria. It’s a very nutrient-dense food form. But we haven’t been communicating it that way. So we are increasing our communication more down that path as opposed to reduce calories.”

Unfortunately, “nutrient dense” is terminology that means little to most consumers – and it’s one thing for an obviously natural product such as fruit or dairy to communicate it, but coming from processed breakfast cereal it’s a claim with a credibility problem for most consumers.

Another factor is that many American consumers are turning heavily to protein and reducing their consumption of carbs in general and processed grains in particular. Some blame this on a combination of the gluten-free craze and increasing concern by many US consumers about the supposed problems caused

Flagship brands of breakfast cereals, hit by “perfect storm” of trend changes, start to sink

February 20156



by varieties of modern wheat, as alleged by authors of popular books including Wheatbelly and Grain Brain. “That’s part of the perfect storm for Special K, too,” Harris said.

Kellogg’s other former growth engine, the Kashi brand, appears to have been in even worse trouble than Special K, with sales down 20% in 2014, to $194 million/ €171 million (IRI). Kashi was an independent, natural foods challenger brand which Kellogg acquired but then moved under its corporate wing, where it appears to have been stifled.

Kellogg declined to answer questions posed to it by New Nutrition Business.

NOT SO CHEERFUL RESULTS FOR CHEERIOS

Kellogg’s rival General Mills has also got a flagship in trouble. Cheerios is America’s biggest breakfast cereal brand and at its peak had $1.25 billion (€1.1 billion) in sales. Since then sales have fallen – by 6.8% in 2013 and 6% in 2014. The decline in 2014 would have been much sharper – indeed sales might have fallen below the $1 billion mark – had it not been for the success of a protein variant, which is thought to have contributed $100 million (€88 million) in sales.

In the UK market Cheerios is also in trouble, sales falling by 9.8%, in a category that fell by 4.9%, after many years of lacklustre performance.

The launch of Cheerios Protein and, more recently, Cheerios with Ancient Grains, are both examples of the “health make-over” strategy, a strategy that old brands frequently resort to when they are at the end of their life cycle.

This is the strategy of adding more and more brand extensions that feature the latest health ingredient in a bid to connect the brand to growth trends and revive sales. It’s been used in the breakfast cereal industry on and off for many years, but now it’s staging

a come-back. Adding more fibre, more protein, upping the wholegrain content, communicating more about whole grains (as Cheerios has done since 2004, though this did nothing to prevent the recent sales declines), these are all health make-over steps.

But the extensions, although they can do well, are not transformative and cannot offset the underlying

decline in the business. They only slow the headline rate of decline.

Tomorrow, breakfast belongs to challenger brands and the wealth of other product types which people can now choose – most of which are much better connected to the key growth trends than the old, battered breakfast cereal flagships.

A WORLD-LEADING BRAND REINVENTION

The successful re-positioning of Special K from being a tired diet brand – it was first launched in 1955 in the US – dates from 2001, when Kellogg and its advertising agency, Leo Burnett Worldwide, devised the Special K diet plan as a way to recharge the brand’s long association with dieting, nutritional eating, and even weight loss.

They designed a plan in which participants had to follow basically only one rule: for two weeks, they were required to substitute two meals a day with Kellogg’s cereal or meal bars; they could basically eat what they wanted the rest of the day, in two snacks and a normal lunch or dinner.

Kellogg promised people that they would “drop a jeans size” or “drop a bikini size”. These 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.

E D I T O R I A L

0

20

40

60

80

100

120

140

$1,021.838

$1,118.005

$1,247.168$1,351.166

$1,406.386

$1,221.155

2009 2010 2011 2012 2013 2014

CHART 1: THE RISE AND SUDDEN FALL OF KELLOGG SPECIAL K

Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)

Source: Market Advantage IRI

$millions

February 2015 7


E D I T O R I A L

Imagine that you want to set up a business that will become a powerhouse in nutrition for skin health. What do you need to do? One strategy would be to create a partnership between a company that excels in branding and marketing in skincare – such as L’Oreal – and one that has the biggest research resource in the industry, like Nestlé.

Laboratoires Inneov had both. And yet, exactly 12 years after it was launched, the joint venture is to be wound up.

The company launched its first product in March 2003. Called Inneov Firmness, it was a dietary supplement pill “intended for women aged over 40, concerned by the loss of cutaneous firmness,” the company said. The clinical effectiveness was shown by a double blind clinical study, carried out on 90 women. Still marketed by Inneov, it promises a 30% improvement in skin suppleness and elasticity.

Sold only in pharmacies, the Inneov range soon included many more products and it went into many markets, including Brazil, Mexico, Russia, France, Spain, Germany and seven others.

Inneov later moved beyond skincare to weight management, offering a 35-day weight loss programme that included personal coaching, nutrition and exercise.

Some commentators have said that the brand has fallen victim to Europe’s health care regime. This is

clearly not true. Nestlé and L’Oreal have again and again communicated the extensive research – “more than 50 clinical trials” – behind the Inneov brand. Inneov had no shortage of science – go to the French website to see what we mean: http://www.inneov.fr/article/Tout-savoir-sur-l-acide-hyaluronique/a3105

And even if it was true that the brand had regulatory problems in Europe, that would still leave the opportunity of the large sections of the globe – particularly Asia and Brazil – where consumer demand for beauty supplements and beverages is strong and growing fast.

The problem is a straight lack of sales. Inneov has said it has sales of €52 million ($61.8 million). While most small and medium-sized companies and entrepreneurs would be delighted with this, for giants like Nestlé and L’Oreal it’s just a drop in the ocean. Investing effort in such a small business is not easy to justify to investors – especially if it has stopped growing.

And Inneov does appear to have stopped growing – sales seem to have been static since about 2008.

Low sales, no growth makes Inneov a disappointment for its owners. And in some ways Inneov does seem to be a failure. To sell in 13 countries – some of them high-growth markets over the last 10 years – and achieve a total of €52 million in sales is a weak result. Spread those sales over 14 SKUs and the performance looks

even weaker – barely €300,000 per product per country. It seems that the combination of Nestlé science and L’Oreal marketing know-how created no value for most consumers.

Perhaps the emphasis on science – there are few pages on the website that don’t mention it – had in fact become part of the problem for this brand. In a world in which consumers are increasingly looking for their benefits to come from ingredients that are as natural as possible, Inneov’s science-heavy positioning and use of strange ingredient names made no connection to this trend.

The active ingredient in the flagship product, for example, is a form of lycopene. But it isn’t explained anywhere on the product page of the website (or anywhere else we looked) that lycopene is in fact something naturally present in tomatoes that gives them their red colour. It’s referred to only by a strange-sounding ingredient brand name: “Lacto-Lycopene”.

Inneov may also be a reminder that many benefits are niche – and that any company going into a new market or launching a new product needs to get its expectations aligned with this reality. Some benefits transition from niche to mass – as is happening with protein in foods – but no one can force the transition, not even if you are Nestlé or L’Oreal.

What does success look like?

February 20158



E D I T O R I A L

If you think that protein drinks are currently “going mainstream” in Europe, think again. It might happen – but the signs are that their emergence from the committed frequent exerciser lifestyle group is still some way off. The category has also witnessed its first significant failure and in the market which has been one of the most talked-up in Europe.

While sales of high protein dairy drinks are growing at a healthy 20% annually in markets like the UK (according to Nielsen), it’s from a low base. And there’s little evidence of this demand coming from any consumers far outside the niche of people driven by sports recovery. And the format’s growth in the UK and Scandinavia is not typical – in France, Portugal, Italy and indeed in most of Europe the format has limited shelf presence outside specialist retailers.

Arla Foods, the Danish-based dairy group which is also the world’s 7th-biggest dairy company, launched its Wing-Co brand in the UK in early 2013 in a bid to mainstream protein drinks.

Sold in a 500g bottle, Wing-Co was a chilled, chocolate-flavoured milk drink containing 40% more protein (25g per 500g bottle) than most other chocolate milks.

The brand was aimed at men in their 30s and 40s trying to live balanced lifestyles and looking for healthy snacks and who, Arla Foods UK said, had been identified in extensive consumer research as a group that are currently under-served by existing dairy drinks.

The bottle showed a moustachioed pilot and carried the strapline ‘Shoots down hunger, fast’. Brand positioning was as a satisfying alternative to less healthy snacks.

Arla Foods launched a £2 million ($3 million/€2.7 million) marketing campaign for its new brand. It used the strapline ‘The manly chocolate milk for men with added man’ and borrowed humorously from the very masculine advertising of men’s fragrances, with ads running under the headline ‘lait d’homme’ [French for “Milk of man”].

As well as TV, press and outdoor

advertising and in-store information both in convenience stores and major supermarkets, Wing-Co was supported with a massive couponing and sampling effort with, for example, over 60,000 samples of Wing-Co given away on one day in central London.

“We’re confident that we’ve developed a product and strategy for Wing-Co that’s going to keep men going when they need it most,” said a brand manager for dairy drinks at Arla, adding: “This is only the first stage in our long-term plan to add value to milk for our retailers in the exciting dairy drinks category.”

Almost two years later and Wing-Co has disappeared from stores. While confirming that Wing-Co was no longer on sale Arla Foods UK declined to provide any comment for this article.

So if high protein dairy drinks are really the high-growth story that some claim, how could Wing-Co fail?

The explanation can perhaps be found in a combination of these points:

1. Not enough protein. Typically, protein drinks deliver about 20g per 250ml. Yet Arla Wing-Co provided only 25g per 500 ml. The protein-aware consumer had become accustomed to the 20g level which is usually prominently displayed on product labels. So offering a product with a protein level significantly below the “category standard” was going to raise questions, particularly among the people most motivated by protein. And the brand promise of “Shoots down hunger fast” wasn’t going to be met by the protein content.

Less protein must have made it

Arla’s protein satiety drink fails to take wing


Arla Wing-Co

E D I T O R I A L

February 2015 9


E D I T O R I A L

easier to achieve a more acceptable flavour. And as less protein lowers the product cost, perhaps this was a factor – Arla Wing-Co was sold at a lower price than other dairy drinks.

But the core consumer in the category had already shown themselves willing to pay a premium price for a product that delivered a hefty dose of protein. Clearly Wing-Co’s lower price was not enough of a motivator for them to go for a lower protein product.

You might think that classic mass-market consumers, who are strongly driven by price, would be tempted to try a lower-price protein drink – and perhaps drawing in new users like this was the aim of Wing-Co. But clearly a lower price than comparable products was not much of a motivator – suggesting that people are either not looking at the category at all if they are not a committed exercise-enthusiast or the whole idea of protein drinks holds little interest for the mainstream consumer. We think this is a strong factor.

2. Too much dairy. Knocking back 500ml of dairy drink is a big ask for most people beyond males aged 15-25. And if you want 20g of protein, you can get that from 250ml drinks. It’s a large volume of liquid – and a volume that would leave many people feeling bloated.

3. Lousy advertising. The “hipster” imagery used in the advertising is at variance with the self-identity of the target consumers. It might work in certain “cool” districts of London, but outside those it would grate with the average UK male. Advertising agencies often get carried away with their own cleverness. Don’t let them.

Arla’s explanation in media reports for Wing-Co’s withdrawal was that the market is more focused on recovery drinks than snack replacements. And it may just be that dairy drinks cannot

compete effectively as snacks with the many, many other convenient choices that consumers have. Protein drinks in the UK and most of Europe are still far from mainstream – and in fact we think they will stay as a value-added niche for a long time to come.

Happily Arla is now taking a different direction with protein with the launch of a quark. Quark – a soft cheese-like product that can be consumed, sweet or savoury, with a spoon – is an everyday product in Scandinavia and Germany but unknown elsewhere, including the UK, where the category was effectively created by a brand called Lake District Dairy.

Arla is now playing a me-too in this small but fast-growing market. Quark is naturally high in protein – as well as being naturally lower in carbohydrates and fat – and has a strong presence as a cooking ingredient (particularly among people focused on weight wellness).

However, Arla’s brand has a very different identity from the established players and it is clearly targeting its quark very firmly at gym-goers. Arla is likely to have more success with this spoonable product – provided that its definition of success is based

on no more than £1 million ($1.5 million/€1.3 million) in year one and slow but steady growth from there.

In America protein has “gone mainstream”, with sales of high protein products of all kinds on the increase. But Europe’s protein market is clearly still in a niche. And while Americans are eagerly embracing high protein dairy drinks, Europeans, with their stronger desire for “natural” and their often very different ideas about portion sizes, are more likely to choose to get their protein from products such as yoghurt and quark. Sales of high protein dairy drinks in Europe may reach a ceiling sooner than many people expect.



Nutritional Values per 100g

Energy 65kcal

Fat 0.5g

of which saturated fat 0.4g

Carbs 10g

of which sugars 9.5g

Protein 5g

Fibre 0.4g

Sodium 0.07g

Calcium 169mg

Vitamin D 0.75µg

Vitamin B12 0.44µg

Wing-Co nutrition facts TABLE 1: WING-CO NUTRITION FACTS


February 201510



D A I R Y S T R A T E G Y C A S E S T U D Y

If the company’s marketing communications are to be believed, Coca-Cola thinks it can reinvent milk. And being Coca-Cola, it isn’t happy with creating a premium-priced lifestyle brand – with the launch of Fairlife it appears to believe that it can create a mass-market success. The big question, however, is whether the product has enough of a point of difference to justify a 100% price premium in the consumer’s mind.

“Fairlife ultra-filtered milk” is aimed at families and went into national distribution in January 2015. As a result of being ultra-filtered the milk has a higher protein content (13g per 240ml compared to 8g for ordinary milk), more calcium (40% of the RDA), it has 120 kcal per 240ml (25% fewer than regular milk) and it is also lactose-free. And as a result of being lactose-free it also has half the sugars of regular milk (6g compared to 12g).

Prior to launch the product was successfully tested in the cities of Minneapolis and Denver in April 2014. The new family-oriented product comes in four varieties (values are per cup 240ml):

• skim milk, with 80 calories, 0 grams fat, 6 grams sugar and 13 grams protein

• whole milk with 150 calories, 8 grams of fat, 6 grams sugar and 13 grams protein

• 2% fat white milk with 120 calories, 4.5 grams fat, 6 grams sugar and 13 grams protein

• 2% chocolate milk with 140 calories, 4.5 grams fat, 12 grams sugar and 13 grams protein

Fairlife is sold in 32oz (1 litre) and 52oz (1.5 litre) bottles with a suggested retail price of $2.99 (€2.44) and $3.99 (€3.25) respectively. That places it at about a 100% premium to regular milk.

The product is produced by Fair Oaks Farms Brands, a company in which Coca-Cola’s Venturing & Emerging Brands unit took an undisclosed “ownership stake” back in 2012. Coca-Cola already distributes a sports-oriented protein drink called Core Power which is produced by Fair Oaks Farms.

Distribution is handled by Coca-Cola’s Minute Maid chilled juices business and will primarily be in mainstream grocery stores. “The product performed well in Denver and Minneapolis and added value as we anticipated in households looking for better nutrition for cereal and coffee,” said Anders Porter, director of communications for Fair Oaks. “When compared with other value-added and

organic milks, it offers more as far as real food nutrition and great taste.”

The products are primarily aimed at household mothers and women ages 25-39 who are looking for better, more nutritious choices for their families. The company is working to find the right voice for this audience and the new product. During the test launch it positioned the milk as a “classic that never goes out of style”, with its “milky pinups campaign” inspired by the work of Minneapolis native artist Gil Elvgren who did mid-20th century pin-ups as well as ads for many all-American brands.

“The campaign was designed to grab attention and shake things up a bit, so that people would look at milk differently,” noted Porter. “We wanted to create billboards that would turn heads. But we also learned that we needed to tell people more about the milk before trying to turn heads. Now the messaging centers around the value, quality and what we offer with

Coca-Cola’s bold bid in low-sugar dairy

Coca-Cola, which has long had ambitions to have a presence in dairy – just like its long-time rival PepsiCo – has taken its first big step, focusing on the fast-growing US market for high-protein drinks. But one of the greatest marketing gurus of the 20th century sees problems ahead. By Karen raterman & Julian mellentin.

February 2015 11


D A I R Y S T R A T E G Y C A S E S T U D Y D A I R Y S T R A T E G Y C A S E S T U D Y

the products,” he added.As for the future, Fairlife plans to

add other products to the line that will give people better choices for nutrition on-the-go in every part of their day, Porter added. “We are looking at meal replacement and breakfast drinks, and also nutritionally-rich products for the elderly. We believe we can do it better with products that are simple and better tasting. This is just the beginning of the pipeline.”

COMMENT

Sales are falling in America’s $14.5 billion (€12.9 billion) drinking milk market and have been for decades. As a result America’s conservative dairy industry has woken up, long after its peers in Europe, Asia and South America, to the potential of value-added products like cheese, yoghurt – and higher protein dairy.

Tens – perhaps even hundreds – of high protein dairy drinks have already been launched by dairies large and small, making Coca-Cola a late arrival to the protein drink party.

However, most products on the market target sports recovery, weight managers and teenage males and deliver hefty doses of protein – typically 20g-25g per 250ml, compared to Fairlife’s 13g.

Clearly, Coca-Cola is trying to attract new consumers to protein: “Household mothers and women ages 25-39 who are looking for better, more nutritious choices for their families.”

The most health-active consumers will be very aware of protein in relation to maintaining a healthy weight and body shape and they may be drawn to Fairlife.

But does it have enough of a point of difference to become the transformative success that Coca-Cola’s comments seem to suggest the company is aiming for?

We think not – and we are not alone. Here are a few of the challenges Fairlife faces:

1. Focuses too much on the technology. “Ultra-filtered milk” it says prominently on the Fairlife website and in the press communications for the brand. Consumers don’t know or care about technology – and when they do show interest it’s usually to tell industry that they want something “less processed”. The consumer wants health benefits they can understand and taste. Majoring on telling the consumer about the production technology is something brands don’t do – simply

because it creates no value in the mind of the consumer.

2. The technology is not an advantage and the product is easy to copy. So many of Fairlife’s communications have mentioned “ultra filtration” that it even got a mention in the Wall Street Journal. The only problem is that ultra-filtration has been around in the dairy industry for a long time and Fairlife could quickly and easily be copied by a host of dairy producers (and any patent Fairlife has

€1.65($1.86)/L

€2.72($3.06)/L

€5.74($6.46)/L

€8.21($9.23)/L

€9.04($10.17)/L

0

2

4

6

8

10

12

Hood Reduced Fat Milk ($2.79/1.5L)

Fairlife ($4.59/1.5L) Rockin' Refuel ($2.29/354ml)

Organic Valley Protein Shakes Fuel

($2.89/313ml)

Core Power Milk Shakes ($3.46/340ml)

CHART 1: PRICE COMPARISON FOR FAIRLIFE CHART 1: PRICE COMPARISON FOR FAIRLIFE

NEW NUTRITION BUSINESS 2

Caption: Some dairy companies have begun to use low-lactose as a way to deliver lower sugar content. The most recent example is Coca-Cola’s launch of Fairlife, a high-protein milk which is also lower sugar thanks to the use of low-lactose milk. TABLE 1: NUTRITION SNAPSHOT FOR FAIRLIFE

February 201512



D A I R Y S T R A T E G Y C A S E S T U D Y

DAIRY FARMERS PARTNER WITH COCA-COLA

Fairlife’s founders Mike and Sue McCloskey entered the dairy business two decades ago, starting a co-operative of family-run dairy farms.

The company developed its own patented membrane filtration system, which reduces the lactose and water levels in the milk and raises the concentration of protein, vitamins and minerals.

The first product the McCloskeys introduced was Mootopia, an ultra-filtered milk product that is still sold in stores in Texas.

As the market for recovery drinks began to rapidly develop, with products like Muscle Milk using dry milk and protein powders, the McCloskey and their dairy farmer colleagues felt they could do something similar but using real milk. This lead to the development of another product first called Athlete’s Honey Milk, launched in 2008. The product got the attention of the Coca Cola Company, which was looking for innovative beverage opportunities.

By 2011 Coca-Cola had taken on national distribution of the product, which was now branded Core Power, a high-protein muscle recovery drink designed for fitness enthusiasts. The product is made with the filtration technology and offers 26 grams of protein, 14 grams of essential amino acids and five grams of branched chain amino acids in a 240 calorie beverage. Core Power products have a suggested retail price ranging from $2.99 to $3.49 (€2.44 to €2.85) for an 11.5oz (340ml) bottle.

The partnership with Coca-Cola also lead to Core Power in 2011 becoming the Official Protein Drink of the 2014 Winter Olympics. “We realized that an Olympic sponsorship was not typically possible in the world of startup companies,” said Porter. “And we are not Visa, so couldn’t do much more than put that logo on our bottles and talk about it on social media. But it was a nice addition to have worldwide recognition with that [Olympic] symbol of quality and performance. And we will be involved again in 2016 and will try to crank it up a bit.”

It was during this period that the McCloskeys connected with Steve Jones, formerly the CMO of Coke and now CEO of Fair Oak Farms. “When I first met Mike and tried Athlete’s Honey Milk, I thought it was the best high protein drink I had ever had and probably the best chocolate milk I had ever tasted,” said Jones.

on its filtration technology is unlikely to provide any protection). In fact, an almost identical product to Fairlife, called Sun Latte, produced by ultra-filtration, has been on the market in New Zealand since 1995. It has the same nutritional profile and benefits.

3. Premium price for liquid milk = niche sales. Consumers will happily pay premiums for value-added dairy products of all kinds, but when it comes to selling them a liquid milk you pour on your cereal or add to your coffee, they think twice. The failure rate of value-added milks is about 95% and when they survive rarely do they have more than a 3%-4% share in most markets. Even the predecessor to Fairlife, the New Zealand brand Sun Latte, probably has only a 1% market share, despite excellent marketing and 20 years on the market. Family users with average incomes and high usage of milk not only don’t pay premium prices for pouring milk, they actively seek the lowest price.

A marketing guru also thinks Coca-Cola has a problem. If you haven’t heard of Al Ries, then you should read his books (all in print and easy to find on Amazon). If you’ve ever talked about “positioning” a brand or a product, then you are using a concept invented by Ries back in 1972.

Now in his eighties, companies still seek his advice. Writing in Business Week, Ries was critical of the positioning of Fairlife, pointing out that Coca-Cola hadn’t thought through how to define its new category for the consumer, variously referring to it as:

• purely nutritious milk• ultra-filtered milk• value-added milk

Ries’ article asks:“Will milk drinkers use Fairlife’s

category names? I think not.• Get me some ‘purely-nutritious

milk.’• Or, Get me some ‘ultra-filtered

milk.’

“So how should you decide what category name to use? The best approach is to first decide what position the new brand should own in the mind.

“As far as Fairlife is concerned, there are four possibilities: (1) No lactose. (2) 30% less sugar. (3) 50% more calcium. (4) 50% more protein. If history is any guide, Coca-Cola will decide to promote all four.

“Not a good idea.”

Fairlife has said it has the potential to “take milk where it’s never gone before”. We think that at best it can take it to a niche – a big niche admittedly, worth perhaps $150 million (€133 million) in sales (or 1% of America’s milk market). Most companies would be very happy with that result. Whether Coca-Cola’s volume-obsessed management would feel the same, however, is another question.

February 2015 13


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

GlaxoSmithKline (GSK)-owned MaxiNutrition created a sports nutrition ‘first’ in more ways than one with the UK launch of its Cyclone Milk product in the summer of 2014. The company believes this is the first time that the amino acid creatine has been incorporated into a ready-to-drink (RTD) product, which it bills as “the world’s 1st creatine milk” and, it could be argued, its first use in a mainstream, mass-market sports product.

Creatine is an amino acid which trials have shown to have some quite specific benefits. According to the approved claim for the EU’s Nutrition and Health Claims Regulation (NHCR): “Creatine increases physical performance in successive bursts of short-term, high-intensity exercise.”

A 330ml bottle of Cyclone Milk contains 3g of creatine, along with 30g of protein. It delivers 201 calories, 16g of carbohydrate and is fat-free.

Cyclone Milk typifies the ‘grab-and-go’ convenience product that is spearheading sports nutrition growth. MaxiNutrition marketing director Craig Read states: “If you look at our innovation pipeline, around 90% of category growth is coming from bars and milks.”

John Brewer, professor of applied sports science at St Mary’s University near London, UK, says: “One of the biggest problems with creatine has always been how you consume it. It’s not always easy – or palatable.”

GSK scientist Chris Harrison, credited with being the ‘creator’ of Cyclone Milk, said in a launch

statement: “This has been two years in the making, and the research we have done into stabilising creatine in a liquid is extensive. I managed to stabilise creatine in a milk format by using the natural protective properties of whey and milk proteins.” The multinational has a patent pending on the process.

This stabilisation system is key to the success of the RTD product, but so too was the recognition by the European Food Safety Authority (EFSA) of the validity of the research into creatine’s benefits. Any safety or quality concerns about creatine have been dispelled over the years, Read claims, and were finally put to rest by EFSA’s positive opinion.

The brand-owner segments its sports offering into different ‘need states’, with products currently divided into five main colour-coded areas:

• Recover + Rebuild• Lean Definition• Endurance Performance• Strength + Power• Mass + Size

It positions Cyclone Milk alongside protein/creatine powdered mixes (and one bar) in the Strength + Power segment.

MAXI-MISING MARKET?

In the wake of GSK’s acquisition of Maximuscle four years ago, 2014 saw the business change its name to MaxiNutrition. The company itself explained that this was about the brand “[focusing] on making protein

relevant for everyone from elite athletes to light exercisers”.

Says Brewer: “The new name is about health, not building big muscles.” Where sports nutrition ends and overall healthy nutrition starts is an interesting question, he adds, and one which GSK appears to be exploring.

TARGETING THE SERIOUS AMATEUR

Brewer, who up to five years ago was working for GSK, puts the growth of the UK’s sports nutrition sector into context. “It comes down to a combination of different factors,” he says. “More people have been taking part in an increasingly diverse range of sports and exercise, especially after the 2012 London Olympics. And that trend covers quite a broad age spectrum.”

As he explains, today’s marathons and half-marathons are likely to see as many – or more – competitors over 40 than under.

Sports nutrition spun around by Cyclone Milk

The appeal of the amino acid creatine – up to now an ingredient confined to products targeting elite sportspeople, and now backed by an EU health claim for its benefits for short bursts of exercise – is about to be tested with the first “creatine milk”, a convenient RTD beverage that combines creatine and protein and is aimed at everyday exercisers. By Paul Gander.

February 201514



S P O R T S N U T R I T I O N C A S E S T U D Y

Brewer recalls debates at GSK about products targeting ‘serious’ rather than ‘elite’ sport. Professional and elite sports people still have a part to play in marketing everything from trainers to supplements. But today’s marketing focus is more on the ‘seriousness’ of the dedicated amateur. “There is more expert endorsement, but it’s increasingly subtle,” he says. “It tends to be more about up-and-coming people rather than established names.”

FIRST PITCH AT MAINSTREAM RETAIL

As well as online sales, MaxiNutrition sees its primary routes to market for Cyclone Milk as being the health and fitness sector (including gyms and sports clubs) and specialist healthfood retailers such as Holland & Barrett.

But the brand is also listed by multiples including Boots, Asda, Sainsbury’s and Tesco. “This is our first play at putting a specialist product such as Cyclone Milk in mainstream retail,” says Read.

Overall, he says, three months after the launch, the brand was being stocked in 3,000 different outlets.

Distribution was supported during the second half of 2014 by sampling in gyms, sports clubs and at events. “This was to help dispel the myth that these products are just for elite athletes,” he says. There was also some display advertising in fitness magazines in the latter half of the summer, alongside an online and social media campaign. This included educational content “in bite-sized pieces”.

Recent TV advertising has been for the overarching MaxiNutrition brand, says Read, and focused on protein.

While most MaxiNutrition protein-based milks retail at

£2.99 ($4.53/€3.90) and a ‘top-end’ For Goodness Shakes protein drink at £2.49 ($3.78/€3.26) he says, Cyclone Milk has the recommended price tag of £3.49 ($5.29/€4.57). As Read emphasises, the product has no clear, direct competitor.

But despite the much wider listings it is achieving, the brand-owner claims not to see Cyclone Milk as a mass-market product. Read explains: “Cyclone was already one of our bigger brands. In that sense, the launch of Cyclone Milk plays a lot closer to our existing category users. It’s more of a frequency play than a penetration play.”

In this analysis, the rationale behind the launch is that, by producing a convenient and pleasant-tasting RTD product available in a wider variety of

outlets, consumption by existing users increases.

Read confirms that most communications around the new product have been aimed at existing users of Cyclone creatine-containing products in a powdered format.

EDUCATIONAL CHALLENGE

It would be odd, though, if GSK did not aspire to attract any new users to the Cyclone brand. Of course, he says, there is general understanding that the sports nutrition opportunity grows as the size of the category increases. “The retail chains clearly see their role as making that category more accessible to the masses,” he says.

In that sense, Read admits, there is an educational challenge implicit


1st page


BRAND

VISUAL ID

MEDIA PACKAGING

POSITIONING

SELLING POINTS

BENEFIT:

KEY INGREDIENTS

Creatine Aminoacids

Protein

INSIGHT:

Cyclone Milk « World’s first creatine milk»

ü Sampling and sponsorship of sporting events ü Dedicated brand website

-  Muscle building and recovery -  Creatine to increase strength and power

- Besides providing 30g of protein, this drink is the world’s first creatine milk, which is said to increase strength and power after high-intensity exercises.

ü 330ml bottle

ü Mainstream and Lifestyle product

ü  Fitness and Gym stores ü  Online

ü Opaque packaging ü  Grey and blue colour scheme

ü RTD - £2.32 (€3) - £3.49 (€4.54) per 330ml bottle

ü Brand ambassadors – athletes ü  Strong social media presence

ü Mainstream - supermarkets and some health stores

ü On pack detailed nutrition information

ü  Mainly grey and blue colors, bottom color varies according to flavor.

Professional athletes,

sportspeople, gym-goers

CYCLONE MILK BRAND DIAMOND


February 2015 15


S P O R T S N U T R I T I O N C A S E S T U D Y S P O R T S N U T R I T I O N C A S E S T U D Y

PROTEIN GROWTH FOCUS FOR PHARMA FIRM

GlaxoSmithKline acquired Maxinutrition, a UK manufacturer of sports protein nutrition products, from Darwin Private Equity back in 2010 for £162 million ($243 million/€216 million).

Maxinutrition was at that time one of Europe’s leading sports nutrition companies and the market leader in the UK. In the period 2007-2010 it produced 21% annual growth.

However, sports nutrition is a niche (a very profitable one) and in 2010 the company had total sales of just £36 million ($54 million/€48 million).

GSK immediately put the brand into mainstream distribution for the first time, securing significant shelf-space in all major supermarket chains. It backed this mainstreaming with a significant TV and print advertising campaign as well as PR.

The company said its communications effort was aimed at “dispelling the wider myths around protein and to address the barriers to entry for those people that still think it’s only for hardened gym goers or elite athletes”.

In 2011 Maxinutrition achieved 30% sales growth and by 2013 the brand had retail sales of £12.5 million ($18.8 million/€16.7 million), increasing to £14.5 million ($21.8 million/€19.4 million) in 2014.

in the launch. “Most consumers don’t understand what creatine is or, for example, that it is present in our muscles every day.”

During 2014, MaxiNutrition ran its feedyourmuscles consumer campaign which, in the company’s own words, “aims to educate everyday exercisers on the benefits of protein-based sports nutrition in a visual and verbal style that feels more approachable and relevant to them”.

But despite Read’s playing down of the market penetration aspect in favour of frequency, the feedyourmuscles material focuses on Cyclone Milk just as it does on pure protein. The strategy appears to be about taking the educational process with ‘everyday exercisers’ one step at a time.

Brewer expresses the challenge rather differently. “People often get hold of the wrong end of the science,” he says. “Creatine will improve repeated sprint performances, for instance, and there’s a lot of science to support this. But many brands still market it as a protein that builds muscle bulk.”

HEALTH CLAIM FINE-TUNING

GSK does not need reminding of the opportunities – and limitations – created by the NHCR. In July, the UK’s Advertising Standards Authority (ASA), seen by many as the EU regulators’ local ‘attack dog’, criticised the company for an “exaggerated” use of protein-related health claims in its advertising. Those approved claims talk about protein “[contributing] to a growth in muscle mass” and “the maintenance of muscle mass”.

GSK requested an independent review of the ASA’s adjudication, and in October 2014 a more detailed critique of its advertising was published. This stated that the company’s text and visuals implied that protein could “prevent or repair muscle breakdown caused by hard


The brand architecture

Parent brand logo on top

Relevant nutritional info visible on front of the package.

Bottom image relating tothe product flavor and texture (chocolate milk).

Product name in front with the word “MILK” standing out followed by the 2 main benefits clearly stated “Strength+Power” as well as the 2 main components “Protein+Creatine”

Claim of being “the world’s first creatine milk” visible in bright red.

THE BRAND ARCHITECTURE


PROTEIN MILK Besides Cyclone Milk, MaxiNutrition also offers a RTD Protein Milk targeting not only athletes but also lifestyle consumers.

PROTEIN MILK TARGETS LIFESTYLE CONSUMERS

Besides Cyclone Milk, MaxiNutrition also offers a RTD Protein Milk targeting not only athletes but also lifestyle consumers.

February 201516




exercise”. This pressure is now affecting how

MaxiNutrition defines its products. According to Read, one of its five ‘need states’ relating to ‘recovery’ – and based on protein - is having to be rebranded. “EFSA and a couple of major high-street retailers are being fairly strict about how we use the term ‘recovery’,” he says. Terms such as ‘sustain’ and ‘rebuild’ are currently preferred.

With protein-related health claims proving to be something of a straitjacket, GSK must be doubly relieved that it has at least opened up the opportunity around the differentiated claim relating to creatine.

STRATEGIC MOVE?

Some commentators have said that GSK’s acquisition of MaxiMuscle may not be a long-term move. Rather than it being an integral part of a reconfigured direct-to-consumer business, the feeling is that the multinational may have targeted the brand-owner primarily with the intention of ‘pumping up’ its value and selling it on.

If that proves to be the case, Cyclone Milk may well play a key role in beefing up an already lean and mean franchise.


The Science: Creatine & Milk Proteins

Each bottle of Cyclone Milks contains 3g of creatine. Creatine is a non-essential dietary compound (can be found in meat and fish), and it’s used by the body when doing high intensity muscle contractions. “Cyclone Milk has been designed with 3g of creatine to support the replenishment of ATP following successive bursts of short-term intense exercise and to support muscle growth with 30g of protein – the perfect powerful combination to increase your strength and power” - Andrew Ibbotson, brand manager, MaxiNutrition. THE SCIENCE: CREATINE & MILK PROTEINS

Each bottle of Cyclone Milks contains 3g of creatine. Creatine is a non-essential dietary compound (can be found in meat and fish), and it’s used by the body when doing high intensity muscle contractions.

“Cyclone Milk has been designed with 3g of creatine to support the replenishment of ATP following successive bursts of short-term intense exercise and to support muscle growth with 30g of protein – the perfect powerful combination to increase your strength and power” - Andrew Ibbotson, brand manager, MaxiNutrition.


Nutritional Facts Per 100ml

Energy 61kcal Protein 9.1g Carbohydrates 4.9g of which sugars 4.6g Fat 0.25g of which saturated 0.16g Fibre 0.55g Sodium 0.13g Creatine Monohydrate 1.03g

BCAAs 2.32g

TABLE 1: NUTRITION SNAPSHOT CYCLONE MILK

Ingredients: Max Pro (Skimmed Milk, Milk Protein (7%)), Fat Reduced Cocoa Powder (1.7%), Carrageenan, Sucralose.

TABLE 1: NUTRITION SNAPSHOT CYCLONE MILK


TABLE 2: CYCLONE MILK IS PREMIUM-PRICED

£2.8/L

£4/L £4.5/L

£5.26/L

£9.09/L

0

1

2

3

4

5

6

7

8

9

10

WingCo (£1.4/500g pack)

Upbeat (£1/250ml pack)

Fuel Liquid Breakfast (£1.49/330ml)

For Goodness Shakes (£2.5/475ml pack)

Cyclone Milk (£3/330ml pack)

CHART 1: CYCLONE MILK IS PREMIUM-PRICED

February 2015 17


B R A I N H E A LT H C A S E S T U DY

Compared with other health areas, the nutritional science around cognitive health is relatively sparse – or uncorroborated. Partly because of this, and because causation and beneficial effects are so difficult to prove in human trials, there are very few approved health claims for cognitive health registered under the EU’s Nutrition and Health Claims Regulation (NHCR).

Undeterred by this, UK functional drinks entrepreneur Richard Baister has launched Brainwave, trademarking not only the product name but also the term ‘Braintenance’, and explaining that the fruit-flavoured, still beverage was ‘specifically developed to help retain, sustain, maintain and entertain your brain’. From a regulatory standpoint, Baister (who is a law graduate) asserts that the product makes no health claims at all.

Two and a half years ago, the European Food Safety Authority (EFSA) said it was inclined to favour cognitive health maintenance claims relating to vitamins and minerals rather than non-essential nutrients.

Baister, on the other hand, believes that the science around some of those non-essential components is convincing. Brainwave contains concentrated green tea extracts, and in particular the substance epigallocatechin gallate (EGCG).

Meanwhile, the cognitive issues connected with an aging population are felt increasingly widely. The UK hosted a G8 summit on the topic in December 2013, leading to the

appointment of a World Dementia Council to help develop international strategies in this area.

Several academic papers are referenced on the Brainwave Drinks website. Baister made contact with scientists who had worked on one particular long-term multi-country study. This found that an intervention group given green tea over an extended period exhibited zero or minor cognitive decline, while a placebo group showed evidence of mid-range decline, he says.

How does this translate into a precise formulation for Brainwave? Not wanting to lose the ‘first mover advantage’, Baister is reluctant to put all his cards on the table (choosing not to identify the specific paper which set him off on his quest, for instance). But he emphasises that those active ingredients with apparent cognitive benefits are only part of the story. “We take great care to ensure that each serving delivers a functional dosage,” says Baister. “Of the other ingredients, some have a catalytic effect, while

others help to increase absorption.”He explains: “Ensuring

bioavailability is especially important in a drink targeting cognitive health, as the brain is typically less permeable than many other parts of the body. The principal ingredients impacting absorption are L-theanine, caffeine and citric acid.” In fact, he adds, L-theanine is a brain-permeable functional ingredient in its own right.

Baister is often asked whether people would not derive the same benefits from simply drinking green tea. “It’s to do with the EGCG content and the benefits of a very particular strain,” he answers. “There are many different varieties of tea, and you have to get the right strength and quality of the active ingredients.”

He adds: “The product provides a convenient, great-tasting opportunity to take in a combination of functional ingredients which would not normally be found either together or at functional dosage levels in standard diets. Both the combination and the dosage are crucial in deriving the cognitive benefits.”

Baister is no newcomer to the beverage business, having launched his first flavoured energy drink in 2005. He is the owner of the Sumo brand, a ‘calorie burning’ soft drink which contains vitamins and minerals and – like Brainwave – EGCG. Nor is Brainwave is not a one-man ‘show’. Nik Hrstic, formerly of Coca-Cola (on the logistics side) and Cott Corporation, is now a co-director of the company with Baister, and through the entrepreneurial network

Bold brain health message for beverageTargeting “anyone with a brain”, a convenient beverage based on green tea extracts is using inventive communications, such as an on-pack pledge to donate to Alzheimer’s and dementia research, to establish a link with cognitive health. By Paul Gander.

February 201518



B R A I N H E A LT H C A S E S T U DY

around Startups magazine and its Young Guns awards, the business has since attracted other investment.

From first ‘brainwave’ to full production, creating Brainwave took around two years: one year assessing the opportunity and roughly the same time developing the product.

Once the work with researchers had established dosage levels and synergies among the ingredients, the bulk of the remaining NPD effort went into fine-tuning the flavour profile. “This is just as valid a concern,” says Baister. “Unless consumers enjoy drinking the product, they won’t make a repeat purchase.”

The one flavour variant so far launched (in September 2014) is Mango, Pineapple and Jasmine. “When you’re working with astringent natural ingredients, mango is a great choice, with jasmine, too, to smooth it over,” Baister says. Other blends have been identified and will follow “in the foreseeable future”, he adds.

The drink is packaged in a 330ml Tetra Prisma carton.

Those who see ‘Braintenance’ as the way forward are currently limited to bulk sales of Brainwave via the website: £16 for a multipack of eight, slightly less in larger quantities. Baister is confident that UK and overseas retail listings will materialise, and envisages retail pricing in the £1.80-£2 ($2.73 - $3.03/€2.35 – €2.61) range depending on the outlet. In his view, pricing in the new niche that he is helping to carve out is “buoyed up by coconut water and similar products”. By comparison, Vita Coco retails at around £1.70 ($2.57/€2.22) for the same size carton when not on special offer.

Brainwave’s marketing makes much of the calorie content (just 25kCal per pack), the lack of artificial flavours and colours and the avoidance of added sugar and aspartame. Instead, the product uses sucralose for sweetening. “This is just about watching industry trends,” says Baister. “Sucralose is

much less maligned than aspartame. It’s not that it wins any contests, but it tends to be consumed overall in smaller quantities.”

As he explains, the science behind Alzheimer’s and other forms of dementia is not well-understood, and he does not see the formulation as something set in stone – rather as something that will evolve and be updated as necessary, a bit like computer software: “As new research becomes available, we will continue to incorporate new ingredients into the product.”

As for the ‘retain, sustain, maintain, entertain’ strapline shouted out from the Brainwave website, Baister boldly contends this is no more than “suggestive wording”. “I’d strongly refute any suggestion that this constitutes a specific health claim,” he adds.

He admits that the European health claims regulation is more of a headache for startups and smaller businesses than for larger companies. “The bigger blue-chips can apply to have a claim approved, and stick a product in the pipeline.”

He says: “There are quite a lot of disreputable claims out there, which is why the NHCR has to exist. But while we can see the reasoning behind it, it’s a pity the regulation had to clamp down so hard. It’s almost anti-competitive, and makes it very difficult to bring a product to market.”

EU regulations do not allow any reference to disease treatment or prevention without specific authorisation. So the on-pack pledge to donate 10% of profits to help fund “research into Alzheimer’s and dementia” could be seen by seasoned marketers as an ingenious attempt to circumvent this restriction.

According to Patrick Coppens, director of international food law at Brussels-based regulatory consultancy EAS, the NHCR explicitly allows recommendations or endorsements from national associations, nutrition-

related professionals and health-related charities, within the relevant national rules. “So such endorsements are not illegal, and of course can give the idea that the product is useful in those conditions,” he says.

Coppens adds: “The way companies communicate health benefits is often quite inventive, and frequently explores the fringes of legality. The context of the health message is a key element which requires assessment by enforcement.” This would also be true in the case of Brainwave, he says. “It is ultimately for the authorities to judge if the actual provisions of the NHCR are being breached by such communications.”

Who does the business target with its communications? “Anyone with a brain,” says Baister. “We can’t understand who wouldn’t want to look after their brain and help to keep it as healthy as possible.”

Meanwhile, Alzheimer’s Society in the UK says it “knows of no quick fix for dementia.” Head of research Dr James Pickett adds: “Although some research indicates that antioxidants found in green tea or caffeine can have benefits for the brain, there is no strong evidence that increasing your intake can help to prevent cognitive decline or dementia.”

February 2015 19


S T R AT E G Y C A S E S T U DY

A big part of the credit for the everyday nature of pomegranate as a ingredient in food and beverage products of all kinds belongs to California-based Paramount Farms, America’s biggest pomegranate grower, which back in 2000 recognised the marketplace potential of a pomegranate juice marketed for its heart health benefits.

Beginning with marketing fresh pomegranates, the company introduced its distinctive Pom Wonderful brand to US supermarkets in 2002, when American consumer recognition of pomegranate was just 1%. Thirteen years later and retail sales today are $130 million (€116 million) in the US plus an undisclosed

amount in seven other markets.Paramount’s strategy was to build a

business based on innovation in every aspect of the product:

• in the supply chain• in packaging• in taste• in branding and marketing• in consumer benefits• in merchandising

Of these the most visible part is the instantly recognizable Pom Wonderful bottle, with its resemblance to the silhouette of two pomegranates stacked on top of each other. As the company told New Nutrition Business several years ago: “From the beginning these

juices were designed to be a unique product, and the packaging was as different as the content. It’s been a critical component in our marketing.”

Bold and often controversial advertising has long been a key characteristic of the Pom Wonderful brand. And the company has always felt that it had a good scientific basis for its claims, having financed its own research – at a cost of $35 million (€23.9 million) so far – that yielded plenty of information about the cardiovascular and other attributes of pomegranates. Over 47 studies have been published, including 14 human clinical studies.

But now Pom Wonderful isn’t likely to provoke anyone – including

Antioxidant message for pomegranate pioneer’s return to TV advertising

For the first time in the three years following its dust-up with US FTC over advertising health benefits for Pom Wonderful, the pioneering juice brand is running TV advertising, billing the drink as “Crazy Healthy”. At the same time it has strengthened its line of iced teas with extra flavours and a name change that leaves no doubt as to its better-for-you credentials. By dale Buss.

In 2014 POM Wonderful released TV commercials for the first time in three years. The “Crazy Healthy” commercials try to motivate consumers to get crazy with POM Wonderful products. The ads feature antioxidants represented as either a Dragon, Samurai, Archers or giant Cyclone, with a message that focuses on the antioxidants, for example: “Every bottle of POM Wonderful is packed with the antioxidants in pure pomegranate juice. Relentlessly ravenous, free-radical annihilating antioxidants. POM Wonderful. Crazy healthy”.

February 201520




America’s regulator, the Federal Trade Commission with its new advertising. The beverage brand’s new “Crazy Healthy” campaign marks its first time in three years to run TV spots, and they won’t be seen as controversial.

Two years ago, a judge ruled that the brand had gone too far in claims in its advertising that the fruit juice helps cure or mitigate specific diseases such as cancer. Pom Wonderful objected by poking a thumb in the eye of the FTC with a provocative print campaign, “FTC v. POM. You be the judge.”

For a while after that, Pom eliminated the possibility for conflict over its advertising by skirting health positioning in favour of ads that, for example, alluded to the ancient heritage and sex appeal of the Pomegranate fruit. And even as of late 2014, the company remained in some limbo overall about health claims in the pomegranate-juice business, both in its own marketing and that of competitors.

Meanwhile, Pom Wonderful has continued to push for further gains in the crowded juice category by giving its line of juice-and-tea hybrids a makeover.

OBLIQUE APPROACH

In its return to national US TV advertising that began in September 2014, Pom Wonderful took a much more oblique—and non-confrontational—approach with its messaging for 100% Pomegranate juice. No images this time, as before the FTC action, of a Pom Wonderful bottle with a noose around its neck and the tagline, “Cheat death.”

“It’s just a good time in the category to remind consumers” about Pom Wonderful, Dahlia Reinkopf, senior director of marketing for Pom Wonderful, told New Nutrition Business. “They have more options. We’re trying to make sure consumers know

why they should be picking up a bottle of Pom Wonderful and all the health benefits it has.”

Not promising any beneficial health effects in particular, instead the brand’s new campaign features CGI-created pomegranate-colored mythical figures who come to the assistance of consumers with the ample antioxidants in Pom Wonderful, and over the four new spots proceed to “impale” and “annihilate” free radicals, with twists of humour to boot. Free radicals are blamed by scientists for aging and tissue damage and even cancer.

“It’s really about reinforcing the health message of 100% pomegranate juice among existing customers and also reaching out to new ones, and getting them interested in the brand,” Reinkopf said. “We’re trying to make sure consumers know why they should be picking up a bottle of Pom Wonderful” versus the proliferating number of competing drinks that contain Pomegranate juice and other antioxidant-chocked dark-fruit juices.

She said the brand returned to advertising for the first time in three years “because it’s a good time in the category to remind consumers” about Pom Wonderful. And specifically, Reinkopf said, the timing aligns with pomegranate season, which launches this month.

Reinkopf insisted the health claim conflict with the FTC “didn’t affect the timing or content of this” advertising campaign.

“We’ve invested $35 million in our commitment to do scientific research on pomegranate products worldwide, and we believe strongly in the health benefits of our Pom Wonderful juice. We’re just trying to remind consumers about the free radical-fighting antioxidants in pomegranate juice. The spots are crisp and to the point, and we think consumers will understand that message.”

HOSTILITIES CONTINUE

Nevertheless, as of late 2014, the company wasn’t past its hostilities with the FTC. Pom Wonderful was appealing the commission’s 2013 ruling, and the case was pending before a federal appeals court.

Also in limbo was the question of whether Pom Wonderful indeed would go ahead and sue Coca-Cola over its longstanding gripe against the company that Coke’s Minute Maid Pomegranate Blueberry Flavored Blend of Five Juices carries a misleading name. Pom Wonderful had sued Coke alleging harm to its own brand and products – many of which are 100% pomegranate juice – because the Minute Maid product contains only 0.3% pomegranate juice and 0.2% blueberry juice.

The dispute reached all the way to the US Supreme Court, which ruled in June that Pom could go ahead and sue Coca-Cola if it so desired, allowing a commercial actor to challenge health claims in an arena where Coke had alleged that the

In January 2015 POM Wonderful is running a competition based on the “Crazy Healthy” TV commercials launched in late 2014. They challenge consumers to post pictures of something “crazy-healthy” for 7 weeks in different online platforms (facebook, instagram…) and win weekly “crazy-healthy prizes”.

S T R A T E G Y C A S E S T U D Y

February 2015 21


S T R AT E G Y C A S E S T U DY S T R A T E G Y C A S E S T U D Y


NO STRANGERS TO CONTROVERSY

During 2014 POM Wonderful was involved in a legal fight with Coca-Cola regarding its “misleading claims on the product Minute Maid”. The issue was related with the prominent words “pomegranate and blueberry” on Minute Maid label, when the product actually contains 5 juice blends and only 0.3% and 0.2% of pomegranate and blueberry juice. In June last year the Supreme Court approved POM’s lawsuit to go forward.

NO STRANGERS TO CONTROVERSY

During 2014 POM Wonderful was involved in a legal fight with Coca-Cola regarding its “misleading claims on the product Minute Maid”. The issue was related with the prominent words “pomegranate and blueberry” on Minute Maid label, when the product actually contains 5 juice blends and only 0.3% and 0.2% of pomegranate and blueberry juice. In June last year the Supreme Court approved POM’s lawsuit to go forward.

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS 11

As of late 2014, Pom Wonderful was appealing the ruling on its Cheat death ads, and the case was pending before a federal appeals court.

As of late 2014, Pom Wonderful was appealing the ruling on its Cheat death ads, and the case was pending before a federal appeals court.


Launched in September 2014, POM Antioxidant Super Teas combine the pomegranate juice with several teas: Pomegranate lemonade tea, Pomegranate sweet tea, Pomegranate honey green tea and Pomegranate peach passion white tea. Available in convenient 340ml bottles.

Launched in September 2014, POM Antioxidant Super Teas combine the pomegranate juice with several teas: Pomegranate lemonade tea, Pomegranate sweet tea, Pomegranate honey green tea and Pomegranate peach passion white tea. Available in convenient 340ml bottles.

federal government’s Food, Drug and Cosmetic Act preclude a suit by Pom. Pom Wonderful hadn’t indicated as of late 2014 whether, indeed, it intended to sue Coca-Cola.

TEA LINE GETS A REVAMP

The company’s tea makeover is an effort to provide some momentum in the supermarket rather than the courtroom. Pom Wonderful revamped its line of iced teas, giving the products a new name, Antioxidant Super Teas, and a new package designed to play up positioning as a better-for-you option. It also doubled the varieties in the line, which now include four pomegranate-focused flavours.

The drinks are now sold in a single-serve 12oz (350ml) size, down from the original 16oz (470ml) format, and feature colour-coded caps to differentiate between varieties. They carry a suggested retail price of $1.99 (€1.77).

February 201522




These new products were strongly promoted during 2013 and 2014 on the official POM Wonderful Facebook page.

A Web series of videos about POM Tropical Blends was produced. The story behind these videos states that these “healthy and nutritious” blends were “separated at birth, never knew they were triplets”, until they finally found each other and became the “Yum Punch, healthy and sweet”.

Celebrities Cheryl Burke and Karina Smirnoff of ABC’s “Dancing with the Stars” on the official launch party of POM Juice Blends in Las Vegas.

STRONG PROMOTION FOR POM TROPICAL BLENDS

In mid-2013 (April) POM launched POM Tropical Blends (100% fruit juice blends), available in 3 flavours: Hula, Mango and Coconut.

A couple of months later, each version was also available in 340ml bottles, besides the original 1.3L ones.

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

February 2015 23


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

Since Red Bull debuted in Europe in 1989, energy drinks have become the biggest success story of the last 30 years of the food and beverage industry. Like many good ideas, it came from Asia (where energy drinks have been around since the 1950s – with Red Bull on the market in Thailand since 1971). But although the category is growing, with big unfulfilled potential in some countries, in Europe and the US the market is setting into a more “normal” growth pattern. The dominance of the big brands – particularly Red Bull – appears to be complete. Challenger brands make little progress – unless they can define a niche and give up on ideas of massive sales. Even new types of product are finding the going hard.

A number of factors have weighed lately on sales of both energy drinks and energy shots in the US. They include an expected maturing and saturation of the market and the continued economic issues being faced by American consumers, especially the Millennial generation – those aged approximately 18-35 –

that comprises the largest part of the market for energy drinks. An additional burden has come from increasing agitation by some consumer activists, nutritionists and lawyers, who are trying to pin the blame on energy drinks for a handful of caffeine-poisoning cases of minors in which kids consumed an excess of drinks or shots way beyond the warning on the product packages.

However, the “slower” growth rate of category is still a healthy 6.7% (see Chart 1) and many remain positive about sustainability of this figure – and even more positive about the market globally.

“There’s still a lot of buzz for energy drinks,” said Tom Pirko, president of Bevmark Consulting and one of the industry’s leading experts. “They still haven’t reached their potential, especially in Brazil, Russia, Eastern Europe and Asia. In a sense, they’re replacing alcohol, carbonated soft drinks and coffee for many consumers. They’re just caffeinated sugar water, but the market for these drinks is still huge. Over the next 10 to 20 years you will continue to see

them grow and grow. Consumers still want to be stimulated.”

Here are reasons industry is citing for optimism about energy drinks:

Consumers replacing carbonated soft drinks: For many years, consumption of energy drinks and shots was growing dynamically right alongside a carbonated-soft-drink (CSD) market that also continued to grow, albeit at a much lower rate. But lately it has become more apparent that energy drinks have been stealing huge “share of mouth” from CSD, whose sales have entered a seemingly inexorable long-term decline, influenced by the rise in energy drink sales as well as consumers turning to better-for-you beverages including water.

“It’s a fascinating thing how high energy drinks can still go,” said Kevin Klock, CEO of Talking Rain, the company behind the hit US carbonated-water brand, Sparkling Ice. “For a long time, consumers drank CSDs for two purposes. One was as a pick-me-up and the other was for refreshment. Now the energy

Energy drinks still buzzing but slide sets in for shots

After a stellar performance over the last couple of decades, energy drinks are slowing to more normal levels of growth – the category remains healthy despite premium pricing and scare stories about caffeine over-dosing. In shots, though, it’s a different story, with sales sliding and some saying they’ll decline even further. Have shots lost their way? By dale Buss.

February 201524




guys are capturing those old CSD consumers who were looking for alternatives to get this pick-me-up; coffee is, too. And [Sparkling Ice is] capturing those who are looking for refreshment.”

When consumers look to move from CSDs, Pirko added, “the easiest thing is energy drinks. You’re getting essentially a soft drink with a side benefit – a different kind of CSD.”

Consumers make their own decisions about scare stories: The brands Monster and 5-Hour Energy specifically have been named in a handful of lawsuits over caffeine “poisoning” when youths have overindulged. Western Australia banned energy drinks as mixers during late-night screenings of World Cup matches at bars last summer. And Saudi Arabia has banned energy drink ads and will limit the beverages’ distribution and sale while also requiring new health warnings. But the US FDA has concluded there’s

no proof the deaths were caused by energy drinks, and the companies point to explicit warnings on their packaging.

Also, Monster and some other brands have answered the concerns with new, non-caffeinated “energy” drinks that appeal to parents’ desire to have their kids drink less-risky alternatives. Monster Unleaded, CEO Rodney Sacks said recently, also “will appeal to consumers sensitive to caffeine, who until now were not consumers of energy drinks”.

Sunny Delight also introduced a caffeine-free product called Sunny D X, which the company said “offers the energy teens crave without the ingredients moms tell us concern them such as coffee and taurine.” Sunny D X instead relies on “carbonated energy” derived from three carbohydrates, all sugars and sweeteners, and seven B vitamins.

In any event, Pirko believes the energy-drinks category already is “past” significant damage.

“Sometimes strong market forces overwhelm other forces, like political forces and media intrusions,” he said. “The average consumer who drinks a CSD or Red Bull doesn’t lose any sleep about the overconsumption issue.”

ONLY NICHES REMAIN

Energy drinks have also succeeded despite premium pricing (see Chart 2), underscoring that the assertion that consumers are very strongly influenced by price is often a false one.

However, the evolution of the market now makes it clear that anyone who has ambitions to launch an energy drink challenger brand needs to put aside any thoughts of massive success and focus instead on creating a niche – and figuring out how big or small the niche is likely to be. Red Bull and Monster dominate with a combined market share of 80% and even Coca-Cola

CHART 1: THE US ENERGY DRINK MARKET IS SETTLING DOWN TO A MORE “NORMAL” GROWTH PATTERN

The market grew 6.7% in 2014. Red Bull retains its 40% market share, with Monster close behind on 38% share.Total US multi-outlet store sales, Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains

0

1

2

3

4

5

6

7

8

9

10

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$200.000 $400.000$600.000

$1,100.000

$1,800.000$2,200.000

$4,100.000

$5,100.000$5,600.000$5,543.720

$6,100.924

$7,215.591

$8,353.121$8,802.985

$9,171.351

$ millions

Source: Infoscan Reviews, IRI

February 2015 25


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

and Pepsico have failed to take much share – a dynamic that is repeated in energy drink markets in many other countries.

SHOTS LOSING THEIR WAY?

The original challenger to the classic can was energy shots – the 65ml-100ml packages which rapidly became a super-premium, high-growth category. They were also a very high margin category and the company who pioneered the category – Living Essentials, which launched 5-Hour Energy – became the world’s most profitable food or beverage company, with a 50% operating profit margin.

Targeting a demographic that had been ignored by the likes of Red Bull, consumers aged 35+, shots became a rapid success, with 5-Hour Energy managing to retain an 80% market share. But lately they seem to have fared worse than the main category, with sales sliding since 2012 (see Chart 1).

If anything, some experts believe that energy shots may decline further, but that the main market of energy beverages still has a bright future. Essentially invented and still dominated by 5-Hour Energy, shots are “beginning to lose their way in large part because they don’t have the consumer appeal of a beverage,” Pirko argued.

“People drink energy beverages because they’re also a form of entertainment. But shots are more like a specialized vitamin supplement business and one without pizzazz and flair. People have to condition themselves to say, ‘Do I need this OTC quasi-medication?’ It’s not only a different business from energy drinks but harder to grow because you’re competing against virtually the entire pharmaceutical and supplements industry. So it’s a more specialized business that has a lid.”

But Andrew Krause, president of LXR Biotech, an energy shots

CHART 3: THE US ENERGY SHOTS MARKET IS SLOWING

Shots, the disruptive innovation of the energy drink business, achieved rapid success but now are struggling.Total US multi-outlet store sales, Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains.

0

2

4

6

8

10

12

14

16

18

2007 2008 2009 2010 2011 2012 2013 2014

$100.000

$600.000

$900.000

$1,300.000

$1,600.000$1,650.000

$1,600.000

$1,500.000

$ millions

Source: Walmart, Albertsons, Walgreens

0CocaCola Classic

1 litre $2.19

$2.195

Red BullEnergy Drink

8.3 fl.oz. $2.09

Nestle Jamba Juice

$8.80 per litre

Campbells V8 V-Fusion

Energy $39 per litre

Living Essentials 5-Hour

Energy Shot12 pack $33

2 fl.oz. bottles

Enerji Green Energy Shots

$39.80 per litre

I Am Happy at

$53 per litre

CHART 2: ENERGY DRINKS ARE PREMIUM-PRICED BUT DAILY DOSE ENERGY SHOTS ARE SUPER-PREMIUM

US energy drink prices compared with one-another and with a “standard” mass-market non-energy product such as Coca-Cola Classic. As with so many successful functional markets, energy drinks are premium and super-premium priced and this is no barrier to success.

Pric

e pe

r 32

fl.o

z.

(app

roxi

mat

ely

1 lit

re)

10

15

20

25

30

35

40

$8.06 $8.80

$39.00 $41.25$39.80

$53

45

50

55

Source: Infoscan reviews, IRI

February 201526



startup, argues that “the functional experience of the energy shot will make the market solid forever … They’re a single-dose nutraceutical that performs a function. You don’t need to drink 12 or 20 ounces with it, so it has the benefits of not filling your bladder.”

NEW ENTRANTS MUST FIND THEIR NICHES

The established players are continuously coming up with line extensions. Monster, for example, recently introduced Muscle Monster protein drinks in an effort to capture part of the protein-obsessed workout trend with 25g of protein per serving. This makes it ever more difficult to find “white space” opportunities – because the big players not only spot them too, they fill them.

Xyience, maker of the brand Xenergy, has tried to build its niche on being the first sugar-free, zero-calorie energy drink. It promotes its “great” taste “without all the extra sugars and additives found in many other energy drinks”. After huge growth for two years after it was launched in 2010, Xyience has settled into a growth rate consistent with the rest of the category – about 5.7% in 2014, producing retail sales of $47 million (€42 million). That gives it a 0.6% share of the US market –which seems to be close to the best new entrants can achieve before they plateau.

LXR Biotech believes that it can significantly get share in the shots category lead by 5-Hour Energy. Located in Michigan, not too far from the headquarters of 5-Hour parent Living Essentials, the company three years ago introduced Eternal Energy to local retailers, with a suggested retail price point of little more than $1 compared with the $3 per shot that is still commanded by 5-Hour Energy. Not only that, but LXR claims that Eternal Energy is “11% more powerful” than 5-Hour

Energy and relies on L-theanine to counteract the jitters that can be caused by caffeine.

“We’ve brought people into the market who couldn’t justify spending $20 a week on energy shots but maybe would spend $5 or so,” said LXR’s Krause. “And retailers have seen huge growth.”

LXR’s newest product is Eternal Energy TR (for “timed release”). It uses microencapsulation technology to roll out energy benefits over a 10-hour period and competes

directly with 5-Hour Energy, at the same price point. Retailers, at least regionally at first, are flocking to it “because we have a premium-priced product – but one with innovative benefits that are scientifically proven.” And soon, Krause said, LXR will be bringing out similar time-released shots using microencapsulation technology that are aimed at other functionalities, such as mental focus, and sleep, the latter of which will slowly leach melatonin into the blood stream.


COCA-COLA: ITS BRAND-BUILDING FAILED, IT TRIES TO BUY ITS WAY IN

One of the most significant elements in the development of the energy drinks market has been the failure by beverage giants Coca-Cola and PepsiCo either to spot the potential of the market or, once it emerged, to implement an effective fast-follower strategy.

The energy drink market has existed in Asia since the 1950s, but neither company had the vision or courage to introduce the concept into the west. Instead, they have been trounced by the entrepreneurs behind Red Bull, Monster and 5-Hour Energy, who didn’t have the access to distribution or the marketing funds available to Pepsi and Coke.

Perhaps the problem lies in the fact that Pepsi and Coke have been hiring the wrong sort of people, or they have created the wrong sort of culture, which limits entrepreneurialism. As a result, by 2014:

• PepsiCo had a 2.7% share of the market and its sales fell by 11%• Coca-Cola had a 1.4% share and its sales fell by 1.4%

Coca-Cola appears to have recognized its deficiencies and recently purchased a 17% stake in Monster, which since 2010 has been eroding Red Bull’s traditional dominance of the market, increasing its market share every year. And after the 52 weeks ended September 7 2014, when Monster sales rose by 10% versus a year earlier compared with just a 6% gain by Red Bull, Monster has pulled nearly even in sales, at $3.5 billion versus Red Bull’s $3.8 billion (€3.1 billion vs. €3.4 billion).

Thus in August 2014 Coca-Cola CEO Muhtar Kent finally took a significant plunge into energy by paying $2.15 billion for a 17% share of Monster, which he said could grow eventually to 25%. Kent and Monster CEO Rodney Sacks agreed to make Coca-Cola Monster’s preferred distribution partner while Monster will transfer its non-energy brands, including Hansen’s Natural Soda and Peace Tea, to Coca-Cola.

“This model will allow domination of the global market for energy drinks by Coke,” Pirko predicted. “Or at least it’ll set up a Coke-and-Pepsi-style dynamic between Red Bull and Monster. By having one united company with all the brands attached, Coke and Monster are really loaded up for a fight with Red Bull. And there are no other companies that will be able to approach them, including PepsiCo.”

Yet, Pirko noted, Red Bull remains No. 1 for now – and confidently. That, he said, is why Red Bull just announced a significant price increase for January 1, including a 5% average increase in North America, though Red Bull already had the highest price per unit on the market, selling at a 25%-50% premium to other brands. The price increase “was a declaration of strength – it was saying, ‘We’re so powerful as No. 1 that we can even take a price increase even though it’s in your face,’ Monster,” Pirko said. “They also are sending a message to retailers about their strength, and retailers will still give Red Bull a break in merchandising. They’re the Kleenex of this category, and the way [Red Bull] has performed is simply splendid.”

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

February 2015 27



Sabra, a brand co-owned by PepsiCo, remains atop the US hummus market with a share of around 20%, but that is less than half its share five years ago, as rivals including Tribe (co-owned by Nestle), startups such as Garden Fresh and Cedars and even a private-label brand of Whole Foods Markets, Engine 2, have gained traction in the expanding category. And still more players continue to join the leaders.

Growth in sales is coming mainly from new customers for hummus as more Americans discover the versatile taste profile and robust health benefits of the traditional Middle Eastern spread made of chickpeas, sesame-seed butter and garlic. Household penetration for hummus rose to 29% in 2014 versus about 25% a year earlier, industry data showed. “That shows people coming into the category are buying at a solid rate, and people continuing in the category are slightly increasing their own consumption,” said Greg Greene, director of marketing for White Plains, N.Y.-based Sabra, a joint venture of PepsiCo and the Israel-based Strauss Group.

Overall, sales of refrigerated spreads rose to $718 million (€619 million) for the 52 weeks ended September 7, up by more than 16% in a category where nearly all the products now are varieties of hummus, according to data supplied by IRI, a Chicago-based market-research firm that monitors sales in US supermarkets, drug stores and mass merchants (except Walmarts). That followed annual percentage gains of 25% in 2010, then 12% in 2011, 11% in 2012

and 20% in 2013. Combining all US outlets, hummus is close to becoming a $1-billion (€860 million) category.

Brands have been fueling Americans’ interest with expanded advertising, sampling and consumer-education programs as well as product innovations. Sabra, for instance, has struck a partnership with the National Football League and its powerful marketing apparatus, while No. 2 player Tribe has introduced single-serve packaging and limited-time flavours. Garden Fresh Gourmet, a second-tier hummus maker, is moving into organically-sourced hummus. And Engine 2, the Whole Foods private brand, is experimenting with sweet flavours of hummus and even “hummus” spreads not based on chickpeas. The entire process echoes what’s been happening in the Greek-yogurt category to a great degree, except with success and growth being realized at a lower level of sales.

And yet even as the hummus category grows, some participants believe the window is starting to close on new players. “While it might be easy to enter this category, to make consistent and safe-quality products often requires significant investment to get in,” said Adam Carr, president and CEO of Tribe, owned by Israel-based Osem Group, which in turn is 60% owned by Nestle. “So there have been major challenges for small companies coming in.”

Even one big player has struggled to retain its footing as hummus sales have burgeoned. Kraft’s Athenos brand fielded both Greek-yogurt and

hummus products several years ago, but the brand dropped out of Greek yogurt a couple of years ago. And the Athenos share of the hummus trade has plummeted, with Athenos sales declining by 22% for the 52 weeks ended September 7, according to IRI data, after annual declines of 9% in 2011, 14% in 2013 and 7% in 2013.

Here’s how major hummus brands are pressing their success:

Sabra: The market leader has been attaining an even higher profile in the segment as it takes advantage of PepsiCo’s marketing and distribution muscle. For example, backed in part by the category’s only national TV-advertising campaign, and an extensive supermarket and mobile sampling effort, Sabra has inched up its share of the market to 63%. “We’re really the only brand on a national level advertising to the consumer and getting hummus to be top-of-mind in consumers’ thought process before going to the store,” Greene said.

PepsiCo’s involvement no doubt helped cement Sabra’s 2013 deal to become the official “dip” of the National Football League, a relationship that Greene said “has been an extremely successful

Hummus keeps growing as market nears $1 billion

Sales of hummus have continued to expand at a strong double-digit-percentage rate as the protein- and fibre-packed, highly versatile chickpea-based spread solidifies a boom that has seen US sales roughly double in five years. And now the leading hummus brands are borrowing a page from the success of Greek-style yogurt by diversifying formulas, flavours and packaging in an effort to extend their success. By dale Buss.

February 201528




opportunity for us”. And its big-brand owner “has allowed us to have stronger co-promotional relationships,” he said, most notably with PepsiCo’s Frito-Lay salty snack unit, which sets up a logical association with hummus dip. No doubt PepsiCo resources also were key in Sabra’s recent doubling of production capacity with an expansion of its plant in Chesterfield, Va.

To Greene, these sorts of steps are much more important than the product diversification that has become a focus of rivals including Tribe. “The volume generated from smaller niche items isn’t really coming through,” he said. “There’s still the core four or five flavours in the marketplace. The ones on the periphery don’t have lasting ability in the market. We’re seeing them come and go.”

Still, he conceded that Sabra, like its competitors, has been dabbling with new flavours and formats for the flexible substance. For instance, in October, Sabra sponsored a “pop-up” restaurant in Washington, D.C.’s upmarket Georgetown district, the Sabra Hummus House, featuring the hummus-focused concoctions of a celebrity chef from the Food Network. It served “classic hummus with a twist,” as Greene put it, including warm hummus as well as varieties including crystallized ginger, and pumpkin seed. “It showed the full experience of what hummus can be,” he said.

Tribe: Sales have been only inching up for the Nestle-affiliated

No. 2 US hummus brand, and Tribe has remained stuck below the $50-million (€43 million) sales level at IRI outlets, and trying to hang on to its 7% share, for four years while Sabra sales have climbed smartly, now to more than $450 million (€388 million) for the 52 weeks ended September 7.

A very recent unwanted distraction for Tribe was criticism by anti-Israel activists of a summer advertising campaign by the brand in New York, one of whose tag lines was, “You’re either a member or you’re not.” It was interpreted by critics as winking at Jewish nationalism by an Israeli-owned brand at a time of the intense battles between Hamas and the Israeli government. But Carr insisted that, “Fortunately, it hasn’t had a major impact” on Tribe.

Instead, in addition to cheeky new print and outdoor advertising with other slogans such as” If you like to share, buy salsa,” Tribe has been focusing on reinventing hummus, to a certain degree. “We continue to lead the hummus category in product innovation,” Carr asserted. Among those innovations has been a “limited-batch” concept. “Every three or four months we bring out a new flavour, something interesting and exciting,

and it has been a successful program for us,” Carr said. “Consumers get bored easily and need a reason to come back to the shelf.”

Tribe’s first limited-time flavour was “Everything,” a take on the “everything” bagel, and including sesame, poppy seeds, garlic and onion; that variety has been so successful “consumers told us powerfully, on social media, to keep it – so we did,” Carr said. Another was Cocktail Time, which included a hint of horseradish and was introduced for the winter holidays in late 2013. In spring, Tribe launched Rosemary Focaccia, a blend of citrus and rosemary flavours that Carr said “has been hugely successful”. And in late 2014 Tribe brought out Urban Fuse Olive Oil flavour, which is spiced with the Middle Eastern za’atar blend and topped with olive oil and herbs and sesame seeds.

“We often talk about the interesting parallel between our limited-time products and McDonald’s, with its McRib and Shamrock Shake,” Carr said. “It keeps consumers excited, and McDonald’s certainly has been successful with it.”

Tribe also has launched a line it calls Farmer’s Market, with three flavours aimed at foodies with refined

TRIBE FAVOURS CHEEKY SLOGANS IN ITS PRINT AND OUTDOOR ADVERTISING

February 2015 29


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

hummus palates: • Cucumber Tzatziki, featuring

the Greek sauce made of yogurt, cucumbers and garlic, topped with dill

• Harvest Carrot and Ginger, which also includes cilantro, coriander and parsley

• Vine Ripened Tomato and Basil

The brand’s other innovations include a product it calls Extra Smooth Classic, meant to enhance hummus’s attributes as a spread, and a “to-go” package that also includes pita chips.

Still, Tribe hasn’t ventured into what might be logical territory given the brand’s wanderings all over the flavour map: sweet hummus. Some small brands recently have experimented with sweet flavours such as chocolate, Carr said. “But I still believe consumes see hummus as satiating, a snack that’s more on the savoury side than the

indulgent side.” Plus garlic – which typically doesn’t lend itself to blending with sweet flavours – is a staple ingredient of hummus.

Tribe also is innovating in the product-format and packaging arena. Sabra pioneered the pairing of a snack with hummus in one package, including pretzels. Now, Carr said, “This is a $50-million category within hummus that has been growing at 70-plus percent this year. So how could we bring something different to it? We didn’t want to be copycat but to really take this to the next level.” Tribe’s answer was to turn to pita chips, whose Middle Eastern heritage would be naturally associated with hummus. Plus, Carr wanted to contrast Tribe’s offering with Sabra’s.

“We have a little smaller portion size, which is more responsible,” he said. “So while our competitor’s has 400 calories and almost 900mg of sodium, largely from the pretzels, we have 230 calories and 385mg of

sodium and half the fat, just 10g. “We’ve had tremendous responses from consumers; it’s a great solution for kids’ lunches and a terrific on-the-go snack.” Moreover, Carr said, Tribe’s packaging is “a beautiful can … that has this ‘badge’ value. I equate it to carrying around a cup of Starbucks coffee”.

Garden Fresh: A Michigan-based company better known for its fresh salsas, Garden Fresh nevertheless is a major second-tier player in hummus,

$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

2009 2010 2011 2012 2013 2014

All other brands

Kra; Foods

Cedars Mediterranean Foods

Tribe Mediterranean

Private label

Sabra

$350.847

$436.909

$487.927

$543.503

$654.384

$719.788

CHART 1: AMERICA’S HUMMUS MARKET SURGES ON, POWERED BY SABRATotal US Multi-Outlet stores (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)

Source: Infoscan Reviews, IRI

February 201530




and founder Jack Aronson told New Nutrition Business that sales of hummus have grown by 30% in the past year compared with 10% growth for salsa. The company has invested heavily in new production capacity for hummus as a result.

Aronson has tried new formulations to gain share, including low-fat versions and flavours such as sweet potato with curry. He’s also experimenting with Greek-yogurt blends and lentil hummus varieties featuring black beans or white beans. “They would still have the [sesame] tahini, but not chickpeas,” he said.

The gambit that might have the biggest potential to change the game for Garden Fresh is Aronson’s plan to introduce certified-organic hummus products. Some brands – including Cedars, the No. 3 branded hummus – already offer organic varieties, and others may jump in. But Aronson said Garden Fresh already has “several million pounds of organic chickpeas lined up for next year”.

Engine 2: Hummus is one of the biggest-selling product categories in a 28-SKU line of private-brand products sold at Whole Foods Markets by Engine 2. The brand is based on a best-selling diet book of a few years back, by a Texas firefighter, whose regimen calls for a vegan, or “plant-strong”, diet even excluding vegetable oils. Whole Foods worked with the author to develop a brand which ranges from pasta sauces to ancient-

grain wraps to almond milk to, soon, pizza crusts. Engine 2 is marketed and merchandised like a premium brand, not like the chain’s price-based 365 private label.

Engine 2 emphasizes the fact that its hummus is low-sodium and includes no added vegetable oils. It’s got “more of an ethnic texture to it, thicker and heartier” than other varieties, said Mike Schall, brand-development chief for Engine 2. The brand also is experimenting with non-chickpea “hummus” varieties based on black

beans and “maybe sweet potatoes or artichokes or other plant-based ingredients we could add, perhaps ancient grains”.

But Sabra’s Greene believes such radical twists could signal a dividing line in the market. “We want to make sure that hummus is tahini and chickpeas, versus a bean dip or spread,” he said. “In the Middle East, ‘hummus’ means ‘chickpea’. It’s just like if you make peanut butter, you want to make sure peanut butter is made with peanuts.”

CEDAR’S BEET CHALLENGE ENGAGES CONSUMERS

CEDAR’S BEET CHALLENGE ENGAGES CONSUMERS

SABRA RUNS EXTENSIVE MOBILE SAMPLING

February 2015 31



More than any other nation, Americans love to eat snack bars. Although the British and the Australians are also big consumers, there’s no other country that has quite as much shelf-space in supermarkets and convenience stores dedicated to bars made with grains (mostly), nuts, seeds, fruit and (increasingly) protein. It’s a reflection of the extent to which snacking appears to have become the dominant force in the American diet and lifestyle. There are tens – perhaps hundreds – of brands competing for space.

Sales of energy and nutrition bars increased by more than 8% in 2014, to $1.85 billion (€1.65 billion), according to SPINS, a Chicago-based

provider of retail sales data. And nearly all of that increase came from one category, the largest, defined as “lifestyle and wellness bars,” sales of which rose by more than 16% to $1.11 billion (€980 million) in the period. Products defined as “athletic bars” sold only 0.5% more, and sales of “diet bars” declined by nearly 3%.

So how does a new brand create a place in the market when the shelf-space presents the consumer with a wall of products with few points of difference? Think Thin appears to have found a way.

Launched back in 1999, ThinkThin was based on the dietary beliefs of its founder, Lisanne Falsetto. It has stayed true to those beliefs ever since – and

happily with the passage of time these beliefs now coincide with some of the most powerful trends.

“I just didn’t feel good when I ate foods with gluten and sugar, and I knew I needed protein,” Falsetto told New Nutrition Business in 2010. “So I made products that worked for me.”

Wisely, Falsetto positioned her products from the start as being for “lifestyle and weight wellness” and not dieting and weight-loss – a category that’s now in trouble as consumer beliefs about weight management shift and become more like those which Falsetto envisaged back in 1999.

Women respond to the ThinkThin bars because they are about weight wellness and lifestyle rather than

Guilt-free, gluten-free indulgent protein brand

edges into breakfastGluten-free, low-sugar bar ThinkThin hit the right note at launch with its softer “weight wellness” message, avoiding the sort of heavy dieting platform that increasingly looks like a thing of the past. Now, using a humorous ad campaign and several new products including one aimed at breakfast, it’s hoping to increase consumer awareness in a clogged category. By dale Buss and Julian mellentin.


From bars to breakfast

FROM BARS TO BREAKFAST

February 201532




weight loss. Marketing materials describe weight wellness as “an optimal weight range at which our bodies feel healthy and happy. This is not defined or dictated by aesthetic, shape, weight or tape measure—it is the emotional outcome of feeling good, energized, funny, confident, sexy and living a life filled with joy and laughter”.

The brand’s recipe is simple: a portable snack combining naturally healthy ingredients such as almonds, peanuts and honey. Leave out the gluten, add protein and use as little sugar as possible. The product and the messaging have been consistent for almost 15 years.

The premium-priced bars (see Chart 1) were initially sold in Californian natural product stores, Whole Foods Markets, drugstores and independent retailers. However, as is often the case with small brands, the company put an effort into getting presence “anywhere that people need quick, portable food” – such as airports, coffee shops and smoothie bars, as well as airlines, hotels, gyms and spas – channels often neglected by bigger companies on the grounds that by themselves they don’t generate large volumes. What they do generate, however, is awareness and awareness leads to trial, and trial – for good-tasting products – leads to repeat sales. Hence by 2014 ThinkThin’s sales were over the $70 million (€62 million) mark.

ThinkThin has supported growth with a widening product range:

Fiber Bars. Launched in 2013, they offer 13g of protein and 5g of fibre in each 50g (1.76oz) bar. The company said at the time that it was the “only brand among the top 10 leading nutrition-bar brands” offering a high protein and high fibre option with only 2g of sugar and less than 200 calories.

Lean Protein & Fiber Bars. Launched in mid-2014, these contain


New looks for existing products

In 2014 some of the initial and more popular Think Thin products had a package design update: •  The message “High Protein Bar” is now bigger and easier to read •  The images on the package are more appealing •  The claim “gluten free” was replaced by a GF logo •  A new claim was added: “Low GI”.

Before & After

NEW LOOKS FOR EXISTING PRODUCTS

In 2014 some of the initial and more popular Think Thin products had a package design update: The message “High Protein Bar” is now bigger and easier to readThe images on the package are more appealingThe claim “gluten free” was replaced by a GF logoA new claim was added: “Low GI”.



2013/2014 – Permission to Indulge Still on the basis of the promotional campaigns – Guilt Free

Being “Guilt Free” and giving consumers permission to indulge is still one of the main messages used by Think Thin on promotional campaigns. Early this year it already started with a new campaign “Zero Shades of Gray”, which relates to the book “50 Shades of Grey”. This book was adapted to a movie to be released this year and it’s popular among the female population – the main target group for Think Thin.

Being “Guilt Free” and giving consumers permission to indulge is still one of the main messages used by Think Thin on promotional campaigns. Its campaign “Zero Shades of Gray”, relates to the book “50 Shades of Grey”, adapted to a movie and popular among the female population – the main target group for Think Thin.

€19.8($22.2)/kg €19.8($22.32)/kg €20.45($22.97)/kg

€30.9($34.7)/kg

€37.6($42.25)/kg

0

5

10

15

20

25

30

35

40

45

Special K Protein Meal Bars

($5.98/269g pack)

Odwalla Super Protein Bar

($18.75/840g pack)

Clif Builder's Bar ($18.75/816g pack)

KIND Peanut BuNer Dark Chocolate + Protein ($100/2.8kg

pack)

Think Thin Lean Protein Bar

($16.9/400g pack)

CHART 1: THINK THIN PRICE COMPARISON

February 2015 33



10g of protein and 5g of fiber per 40g (1.41oz) bar, in just 150 calories. They are gluten-free, and contain just 5g of sugar.

Breakfast: The company’s newest launch takes it in a new direction. Like (it seems) almost every company, it has breakfast in its sights and at the end of 2014 debuted Protein & Fiber Hot Oatmeals – a single-serve 200 calorie bowl of oatmeal.

The company doubled its distribution network in 2013 and engaged in more experiential marketing and sampling. But even then, in such a clogged category, ThinkThin was sitting with “low” brand awareness that was under 1% nationally, though it was higher in the brand’s home state of California. “We need to create a lot of brand awareness to support that distribution,” Megan Crossland, ThinkThin’s marketing director, told the New York Times, and to counter what she called “a rainbow of confusion at the shelf ”.

Thus the company launched an advertising campaign in the summer of 2014, with the goal of doubling unaided awareness of the ThinkThin High Protein Bar to 2%. In the campaign, Crossland said, the brand sought “to differentiate ourselves from the rest of the category, to set ourselves apart, in an emotional and unique way”.

In researching how to tap into consumer “emotions” about nutrition bars, ThinkThin marketers realized that they had to convey more than the basic appeal of their products as portable and convenient energy. They homed in on the brand’s long-established message of enjoying ThinkThin bars with “zero guilt”, which also would help underscore the fact that the bar has 20g of protein and “zero” grams of sugar.

“We landed on the insight that nobody really has to feel guilty” about


Slide 2 BOX continued

The launch of this new line was accompanied by a Facebook campaign challenging consumers to “Guess the flavor?!” of these new products. This campaign started in the beginning of April and the line was announced at the end of that month and available online. In June it became available exclusively on Whole Foods.

THINKTHIN MAKES STRONG USE OF FACEBOOK

The launch of this new line was accompanied by a Facebook campaign challenging consumers to “Guess the flavor?!” of these new products. This campaign started in the beginning of April and the line was announced at the end of that month and available online. In June it became available exclusively on Whole Foods.


Slide 2 box continued

Ingredients: Protein Blend (Soy Protein Isolate, Whey Protein Isolate, Calcium Caseinate), Brown Rice Syrup, Dark Chocolate Coating (Sugar, Chocolate, Cocoa Butter, Soy Lecithin, Vanilla), Chicory Fiber, Glycerin, Almonds, Prebiotic Tapioca Fiber, Alkalized Cocoa, Sunflower Oil, Soy Crisps (Soy Protein Isolate, Tapioca Starch), Natural Flavors, Lecithin, Sea Salt, Vitamin and Mineral Blend (Magnesium Oxide, DiCalcium Phosphate, Ascorbic Acid (Vitamin C), Niacinamide, Pyridoxine Hydrochloride (Vitamin B6), Riboflavin (Vitamin B1), Vitamin A (as Palmitate), Folic Acid, Cyanocobalamin (Vitamin B12).

Ingredients: Protein Blend (Soy Protein Isolate, Whey Protein Isolate, Calcium Caseinate), Brown Rice Syrup, Dark Chocolate Coating (Sugar, Chocolate, Cocoa Butter, Soy Lecithin, Vanilla), Chicory Fiber, Glycerin, Almonds, Prebiotic Tapioca Fiber, Alkalized Cocoa, Sunflower Oil, Soy Crisps (Soy Protein Isolate, Tapioca Starch), Natural Flavors, Lecithin, Sea Salt, Vitamin and Mineral Blend (Magnesium Oxide, DiCalcium Phosphate, Ascorbic Acid (Vitamin C), Niacinamide, Pyridoxine Hydrochloride (Vitamin B6), Riboflavin (Vitamin B1), Vitamin A (as Palmitate), Folic Acid, Cyanocobalamin (Vitamin B12).


Lean Protein & Fiber Bars were strongly promoted on the official Facebook page during 2014: competitions, promotional images, consumer photos posts…

Slide 2 box cont

Lean Protein & Fiber Bars were strongly promoted on the official Facebook page during 2014: competitions, promotional images, consumer photos posts…

February 201534




eating a ThinkThin bar, Crossland said. From there, Crossland said, the thinking evolved to using humour in the campaign by “trying to juxtapose” the products with “what other things in life women can feel guilty about”.

So in the TV ads, the most important prong of a $9 million (€8 million) campaign that also includes print and digital elements, ThinkThin determined to “[laugh] at the little things that make us feel guilty every day, while making the more serious point that eating ThinkThin bars is something you should never have to feel guilty about.” The ads also had to resonate with the brand’s target, which it calls “female balanced health seekers ages 18-54”.

In one of the commercials, a group of women at an outdoor cafe is

admiring a hunky man in the distance who, once he comes closer, turns out to be younger than he looked. After the ogling continues, the man unexpectedly connects with one of the women in a way that triggers – tada! – guilt. “Hi, Mrs. Adams,” the guy says,

as it becomes apparent he’s a friend of the woman’s son. “Hey, say hi to Brian for me.”

And a print ad shows a ThinkThin High Protein Bar above the headline: “Guilt free. Unless you steal one.”


2014 – First National TV Commercial

In July of 2014 Think Thin launched its first big TV campaign, with a budget of more than $9 million. It includes not only two 30sec TV commercials, but also print and digital ads. The main slogan is “ThinkPositive” and the guilty-free message is also present.

“In talking through things with the consumer, we landed on this insight that nobody really has to feel guilty” about eating a ThinkThin bar, says Megan Crossland, the marketing director of Think Thin. This is achieves in a funny way on the TV commercials by showing “what other things in life women can feel guilty about and then concluding with the “thinkPositive” theme”.

2014 – FIRST NATIONAL TV COMMERCIAL

In July of 2014 Think Thin launched its first big TV campaign, with a budget of more than $9 million. It includes not only two 30sec TV commercials, but also print and digital ads. The main slogan is “ThinkPositive” and the guilty-free message is also present.

“In talking through things with the consumer, we landed on this insight that nobody really has to feel guilty” about eating a ThinkThin bar, says Megan Crossland, the marketing director of Think Thin. This is achieves in a funny way on the TV commercials by showing “what other things in life women can feel guilty about and then concluding with the “thinkPositive” theme”.

In both commercials the idea is to show everyday life situations in which women might feel guilty about. The first one is the example of a group of women who start noticing a young runner in their directions, however, the runner is actually a friend of one of the womens’ son. In the second one a mother is cleaning her son’s room and starts checking his cellphone, when he suddenly asks her if she saw his cellphone anywhere. The end of both commercials is similar: Think Thin “20g of protein, 0g of sugar and 0 guilt” - “ThinkPositive”.


2014 – First National TV Commercial

In both commercials the idea is to show everyday life situations in which women might feel guilty about. The first one is the example of a group of women who start noticing a young runner in their directions, however, the runner is actually a friend of one of the womens’ son. In the second one a mother is cleaning her son’s room and starts checking his cellphone, when he suddenly asks her if she saw his cellphone anywhere. The end of both commercials is similar: Think Thin “20g of protein, 0g of sugar and 0 guilt” - “ThinkPositive”.


[BOX] NOT EVERY NEW PRODUCT CAN SUCCEED

During the Summer of 2013, Think Thin launched Divine, a line of three bars combining coconut and chocolate. With “160 calories per bar, they’re the perfect fix to any chocolate craving”. Labelled as “Smart Decadence”, each bar had 6g of protein, 10g of sugar and 8g of fiber. However, this line was withdrawn.

NOT EVERY NEW PRODUCT CAN SUCCEED

During the Summer of 2013, Think Thin launched Divine, a line of three bars combining coconut and chocolate. With “160 calories per bar, they’re the perfect fix to any chocolate craving”. Labelled as “Smart Decadence”, each bar had 6g of protein, 10g of sugar and 8g of fiber. However, this line was withdrawn.

February 2015 35




Sampling key to ThinkThin’s success

SAMPLING KEY TO THINKTHIN’S SUCCESS


[BOX] LEAN PROTEIN BAR DEBUT In April 2014 a new line was launched by Think Thin: Lean Protein & Fiber Bars. Each bar contains 10g of protein and is a “delicious snack on-the-go anytime”. It is said to have “the right amount of protein to hold you over” and to “Fuel Summer Fun” – a sustained energy message. Available in 5 flavours: Salted caramel, Honey drizzle peanut, Chunky chocolate peanut, Chocolate almond brownie, Cinnamon bun white chocolate.

LEAN PROTEIN BAR DEBUT

In April 2014 a new line was launched by Think Thin: Lean Protein & Fiber Bars. Each bar contains 10g of protein and is a “delicious snack on-the-go anytime”. It is said to have “the right amount of protein to hold you over” and to “Fuel Summer Fun” – a sustained energy message. Available in 5 flavours: Salted caramel, Honey drizzle peanut, Chunky chocolate peanut, Chocolate almond brownie, Cinnamon bun white chocolate.

February 201536



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

N E W P R O D U C T S

BAKERYUSA Mondelez Global Nabisco BelVita Bites Chocolate

Mini Breakfast BiscuitsA nutritious start to a busy morning, a convenient, on the go breakfast. Contains slow-release carbs from wholesome grains to provide four hours of nutritious steady energy, good source of fibre and provides 20g of whole grain, 8g of total fat and 0g of trans fat per serving.

Canada Weston Bakeries Weight Watchers Multigrain With Quinoa Loaf

Made with whole grains and contains 2g of fibre and 50 calories per slice. Features a 1 PointsPlus value per serving.

Canada Mondelez Christie BelVita Breakfast Cinnamon Brown Sugar Flavor Cereal Biscuits

Contains 2g fibre and 19g wholegrain per serving, wholesome source of energy.

USA General Mills Nature Valley Blueberry Breakfast Biscuits

Provides long lasting energy from 26g of wholegrain, is a good source of fibre, contains 0g trans fat and is free from high fructose corn syrup and artificial flavors.

USA Lundberg Family Farms Lundberg Thin Stackers Red Rice & Quinoa Puffed Grain Cakes

Made with organic brown and red rice and quinoa. Organic, free from gluten and GMOs, and provide 28g wholegrains per serving.

USA MySuperFoods MySuperCookies Organic Blueberry Vanilla Heroes Whole Grain Cookies

Made with acerola, a high source of vitamin C; baobab, which contains calcium, iron, potassium, magnesium and antioxidants; and chia, known for its omega-3 fatty acids, calcium and antioxidants. Organic cookies contain 18g of wholegrain per serving.

BREAKFAST CEREALSUSA Post Foods Post Great Grains Blueberry Flax

GranolaWith blueberries, flax and wholegrain oats. Contains natural fiber, excellent source of ALA omega-3 and free from GMO.

USA Nature’s Earthly Choice Nature’s Earthly Choice Chia Goodness Breakfast Mix with Apple, Almond, Cinnamon & Chia

Made with chia, buckwheat and hemp. Easy to prepare and is a great source of protein and omega-3. Good source of fiber, calcium and iron and is free from gluten and GMO. Low in sodium.

USA Kind Kind Healthy Grains Vanilla Blueberry Clusters with Flax Seeds

Made with 100% whole grains and provides 32g of whole grains per serving. Contains five super grains such as oats, millet, quinoa, amaranth and buckwheat. Excellent source of fiber that helps maintain weight and may reduce the risk of cardiovascular diseases and type 2 diabetes. Low in sodium, and contains flax that is a source of fiber and omega-3 fatty acids, helping to achieve a healthy immune system. Low glycemic product is free from gluten, GMO, and trans fat.

DAIRYUSA Bio-K Plus International Bio-K Plus Mango Fermented Soy

ProbioticFor daily well-being. Made with the only clinically proven formula featuring the patented super strain L. acidophilus. The beverage contains 50 billion friendly bacteria.

USA Graindrops Graindrops Powered by Koji Original Organic Dairy-Free Probiotic Beverage

Comprises five gluten-free organic whole grains infused with 20 billion live probiotic cultures and prebiotic fibers. Made using a centuries-old Japanese culturing process called Koji, said to unlock the rich nutrients and milky sweetness, resulting in a refreshing, low-fat, triple-cultured probiotic drink.

USA Chobani Chobani Kids Strawberry Greek Yogurt

Made with low fat yogurt and provides 5g of protein per tube. Contains 5% less lactose, 2% less milk fat and 30% less sugar than the leading yogurt tubes.

USA WhiteWave Foods Silk Unsweetened Cashewmilk Creamy drink that is creamier than skim milk with one third of the calories. Provides 25 calories per serving and 50% more calcium than dairy milk.

DESSERTS & ICE CREAMUSA Mamma Chia Mamma Chia Seed Your Soul Chia

Squeeze Organic Apple Cinnamon Vitality Snack

A convenient vitality snack made with organic chia seeds infused with fruits and vegetables. Gluten-free and GMO-free product contains 1200mg omega-3, and only 70 calories. Food source of fiber.

USA Mamma Chia Organic Mamma Chia Seed Your Soul Green Magic Vitality Snack

Repackaged. Made with organic chia seeds infused with delicious fruits and vegetables. Contains 1200mg of omega-3, 70 calories per pouch, Good source of fiber, packed with protein.

USA Deebee’s Specialtea Foods Deebee’s Organic TeaPops Toasted Coconut Rooibos Herbal Tea and Fruit Bars

A healthy nutritious treat for kids. Contain no caffeine, made with fair-trade teas. Low in fat and only contain only 50 calories with no refined sugar.

Canada Bowman Andros Andros Fruit Me Up! Apple Unsweetened Compote

Made from 100% fruits, free from sugar added, juice concentrate, GMO, dairy, nut, and gluten. Every pouch is made with fresh apples. Also available: Apples, Mangoes, Pineapples Unsweetened Compote.

HOT BEVERAGESUSA R.C. Bigelow Bigelow American Breakfast Black

Tea & HoneyContains 50% more caffeine. A stimulating blend to kick start the day.

JUICE DRINKSUSA Harvest Beverage Group Juisi Pineapple Turmeric Jamu

with Kaffir, Ginger, Lime & Young Coconut Water

Repackaged. This Indonesian elixir comprises of 86% raw juice, cold-pressed using HPP. Contains 200% DV vitamin C, 25% DV vitamin B6, 20% DV vitamin B1, 22% DV iron, 20% DV copper, 220% DV manganese and curcumin per bottle. No gluten, dairy or GMOs. Also available: Cucumber Chia with Jalapeno, Mint, Pineapple, Cantaloupe, Raw Spirulina & Lime Juice.

February 2015 37


N E W P R O D U C T S N E W P R O D U C T S

USA Harvest Beverage Group Juisi 100%, raw cold-pressed HPP juice with added chia seeds. Contains 120% DV vitamin A, 22% DV potassium, 7 grams of protein, 140% DV vitamin C and 25% DV dietary fiber per bottle. This ageless tonic is free of gluten, dairy and GMOs.

USA Seva Seva Pure Maple Water 100% pure maple sap that is said to nourish and hydrate the body. Canada Grimmway Farms Grimmway Farms True Organic

Bunched Greens 100% Fruit & Vegetable Smoothie

A blend of eight fruits and vegetable juices and purees including spinach leaves, lettuce leaves, banana, kale leaves, lemon, and apples. Also available: Organic Wild Berry Blend 100% Fruit & Vegetable Smoothie.

USA Bai Brands Bai5 Antioxidant Infusions Variety Pack

100% natural, contains 4% juice, is superfruit infused, naturally sweetened, antioxidant packed, and provides 35mg natural caffeine and 5 calories per serving. Features low glycemic content.

Canada Overwaitea Food Western Family Orange 50 Juice Beverage

Features 50% less sugar and calories than regular 100% orange juice.

USA Drink Maple Drink Maple. Pure Maple Water Free from additives, contains 46 nutrients, vitamins, minerals, polyphenols, antioxidants, electrolytes, and prebiotics, is free from gluten and dairy, said to contain more manganese than a cup of kale.

USA Suja Life Suja Elements Call Me Pumpkin Vegetable & Fruit Smoothie

Comprises sweet potato, carrot, maple syrup, pumpkin, pecan, coconut, coconut palm sugar, black strap molasses, cinnamon, ginger, nutmeg, clove and salt.

MEALS & MEAL CENTERSUSA Atkins Nutritionals Atkins Beef Fiesta Taco Bowl Premium ground beef mixed with red and green bell peppers, onions

and Mexican style spices. Formulated for a low carbohydrateslifestyle, is high in protein.

USA Five Star Gourmet Foods Five Star Gourmet Foods MiniMeals2Go Protein Pack

Comprises a cage-free hard boiled egg, nut- and gluten-free sunflower butter, gluten-free multi-grain crisps, cheddar cheese and fresh apple slices. Nutritionally balanced with wholegrains, fresh fruit and a powerful punch of protein. Pack contains 370 calories, 15g protein and 6g fiber and no artificial colors, flavors, or preservatives.

USA Good Foods Group GoodFoods Reduced Fat & Calorie Cranberry Almond Chicken Salad

Ready-to-serve, fully cooked product is made with low-fat Greek yogurt, and contains 80% less fat and 50% fewer calories than the manufacturer’s classic chicken salad.

OTHER BEVERAGESUSA Abbott Laboratories Abbott Vital High Protein

Therapeutic NutritionFormulated to support GI tolerance, is high protein and low fat nutrition. Gluten-free.

USA KeVita KeVita Tonics Turmeric Ginger Cleansing Probiotic Tonic with Apple Cider Vinegar

Organic and provides 20 calories per serving. Contains KeVita culture including four strains of live probiotics, 30g apple cider vinegar, 1000mg turmeric, 270mg ginger, 100% DV vitamin C and 20% DV magnesium. Lightly carbonated product contains 16% juice.

USA Campbell Soup V8 Chocolate Protein Shakes A blend of milk, pea protein, soy protein, carrots, sweet potatoes, brown rice protein, rich cocoa, real honey & quinoa flour for satisfyingly energy. Source of protein, containing as much fiber as one cup of kale, as much calcium & vit D as a glass of milk, & a quarter cup of vegetables. Naturally & artificially flavored and contains 12g protein, 3g fiber and 200 calories per bottle.

RTDsUSA Molly’s Milk Truck Beverages Molly’s Milk Truck Redeye

Almond Milk Iced Coffee Blended Beverage

Said to provide extra zing to keep the consumer truckin’ through the day.

USA Omilk OMilk Green Tea Made with cashews, which are low in saturated fat and cholesterol that may reduce the risk of heart disease; and organic matcha powdered green tea, which is claimed to have over 137 times the antioxidants of brewed green tea, and to provide mild, all-day energy and a great metabolism boost.

SNACKSCanada RX Natural Natural Garden Roasted & Shelled

ChestnutsSweet, glutinous, rich in aminophenol and minerals such as calcium, selenium, iron, magnesium and more.

Canada Baby Gourmet Foods Organic Slammer’s Fruit, Vegetable & Grain Snack

Made with bananas, blueberries, strawberries, beets, acai and amaranth, contains one full serving of fruits and vegetables, has no sugar added. Excellent source of vitamin C, is organic and free from nuts and gluten.

USA Costco Wholesale Kirkland Signature Fruit Snacks Made with real fruit and comprise cherry, grape, orange, mango and strawberry. Provides 100% RDA of vitamin C, 80 calories per pouch.

USA fusionRANCH Fusion Jerky Basil Citrus Artisan Beef Jerky

All natural and minimally processed. IHigh protein content with 11g of protein per serving.

USA Bounce Bounce Cacao Mint Protein Bomb Natural Energy Ball

A mix of cacao, seeds and whey protein. 100% natural snack ball is free from gluten, GMOs, artificial colors, flavors, and artificial preservatives. Contains 3g fiber and 9g protein. Peanut Cacao Protein Blast Natural Energy Ball contains 2g fiber and 13g protein.

USA Clif Bar & Company Luna Peanut Caramel Cluster Whole Nutrition Bar for Women

Gluten free. Contains calcium, iron, folic acid & vit D, providing 3g fiber & 8g protein per serving. Low glycemic & free from hydrogenated oil, gluten & GMO.

USA Aldi Specially Selected Garlic & Hummus Tortilla Chips

All natural product is made with ancient grains: corn and a blend of delicious grains, quinoa, amaranth and sesame seeds. Free from gluten and lactose.

USA Small Planet Foods Lärabar Gingerbread Fruit & Nut Bar

Limited edition product is low in sodium, free from added sugar, and a good source of fiber.

Canada Blue Diamond Growers Blue Diamond Almonds Artisan Nut-Thins Cracker Snacks Crafted with Chia Seeds

Free from wheat and gluten and contain 3g of protein, 0.1g of omega-3 polyunsaturated, and 24g of whole grain per 30g serving.

USA Mediterra Mediterra Sundried Tomato & Basil Savory Bar

Made with basil, capers, protein-rich pea crisps, a drizzle of extra virgin olive oil, and a dusting of crushed cashews. All natural bar is free from GMO and gluten, and contains 6g protein and 6g fiber.

February 201538




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

BAKERYAustralia Sanofi-aventis I Quit Sugar with Sarah

Wilson Superfood Cacao and Chia Protein Ball Mix

Healthy muesli ball mix blended with nutrient-dense super foods, free from fructose, added sugar and nuts. Convenient product is said to be a source of fibre and protein, made with whole grains and contains all natural ingredients and no artificial colours or flavours.

Belgium Dr. Schär Schär Gluten-Free Master Baker’s Vital Sliced Bread

Made with sorghum, chestnut flour and sour dough. High in fibre, and is free from gluten, wheat and lactose.

Colombia Casa Santiveri Santiveri Digestive Cookies with Cranberries

Free from trans fat, added sugar, lactose, milk products and eggs. High in fibre. Fortified with folic acid.

Colombia Pro Salud Vida Pro Salvid Sliced Quinoasol Bread Rich in fiber, flavor and nutrition. Czech Republic Artifex Instant Knuspi Protein Plus

Fitness Protein BreadRelaunched with a new brand name. High in protein and fiber and free from gluten.

Egypt Mondelez Jacob’s Oatmeal Oatmeal Biscuits Contain beta-glucan, 60% cereal and 30% less fat. Egypt United Biscuits McVitie’s Junior Pirate Crew Milk

Chocolate Coated BiscuitsContain added calcium, iodine, iron and zinc.

Finland Mondelez LU Belvita Breakfast Crunchy Oat & 5 Wholegrains Biscuit

Gives energy for the whole morning by slowly releasing carbohydrates over four hours.

Finland Risenta Risenta Crispbread Baking Mix with Chia Seeds

Contains 100% grains and seeds and is free from flour. With sunflower and pumpkin seeds as a crunchy base, sesame seeds to provide colour and a fine taste, psyllium and linseeds which are rich in fibre and chia seeds which provide a lovely texture thanks to their ability to bind water.

France Intermarché Selection Chabrior Petit Déj Chocolate Breakfast Biscuits

Repacked with a new design. Naturally rich with fibres and iron, and a source of phosphorus, magnesium and vitamin E. Iron and magnesium are claimed to reduce fatigue, and phosphorus to contribute to maintaining normal energy metabolism.

Germany Dr. Klaus Karg Dr. Karg’s Organic Chia & Oat Crispbread

Source of Omega 3 fatty acids. Organic and wholegrain product is rich in protein and natural fibre.

India Bagrrys Bagrry’s Germinated Wheat Bran Now in a redesigned 500g pack featuring a free oats flour. Helps manage weight, said to be good for digestive health. The 100% natural product is high in dietary fibre and protein, provides a source of iron.

India Nilgiri Dairy Farm Nilgiri’s 1905 Healthy Indulgence Rich Plum Cake

Contains zero added refined flour and is rich in dietary fibre. Made with whole wheat and finger millet flour.

Indonesia YLF Manufacturing Iko Oat Cracker with Muesli High in fibre and made from wholegrain. With oats, sunflower seeds, pumpkin seeds, black raisin and white sesame seeds.

New Zealand Yarrows (the Bakers) 2011 Yarrows Salba Traditional White Sandwich Bread with Manuka Honey

Wholefood product is made with the ancient salba grain, which provides amazing energy, is rich in nutrients, has an omega 3 content and is a good source of fibre.

Peru Kinuafoods Kinuas Quinoa Cookies with Canihua

Made with the finest organic quinoa, cultivated in the Peruvian Andes and irrigated with pure spring water. Sweetened with XylySweet.

Spain Mondelez Fontaneda BelVita Desayuno Five Wholegrain Cereals Biscuits with Orange Flavoured Muesli

Baking process guarantees a regular supply of carbohydrates and energy throughout the morning. Developed by nutritionists and experts, enriched with five of the best wholegrain cereals, iron, magnesium and vitamins B1 and E.

Sweden Food For Life Baking Food for Life Sprouted for Life Gluten-Free Almond Bread

Made with sprouted chia, quinoa and millet seeds to maximise nutrition and digestion. Has organic almonds for extra flavour, nutrition and to aid blood glucose regulation. The seeds have a naturally low GI and are a source of EFA. Organic, and rich in plant-based protein and fibre. Also available is Gluten-Free Flax Bread.

UK Mondelez Belvita Breakfast Tops Choco-Hazelnuts Biscuits

Said to slow-release carbohydrates over four hours, made with five whole grains, provides energy for the whole morning, is gently baked, is rich in cereals, is a source of fibre, and contains added vitamins B1, E, magnesium, and iron.

UK Warburtons Warburtons Newburn Bakehouse Gluten Free, Wheat Free & Dairy Free Seeded Farmhouse Loaf

Reformulated and is now dairy-free. High fibre loaf is also claimed to be deliciously soft, contains sunflower seed, linseed, millet seed, and poppy seed - an 8% total seed mix - and is also low in saturated fat. Source of both iron and calcium.

BREAKFAST CEREALSAustria Trimb Healthcare Betavivo Crispy Oat Hearts Said to reduce cholesterol and refrain blood sugar levels from increasing

too much. Contains a high concentration of beta glucan, which is good for the heart.

Finland Alara Of The Earth Superfoods Power of Green Creamy Oat-Based Cereal with Green Tea, Spirulina & Barley Grass

A 100% organic instant porridge which can be eaten cold or hot. This wholegrain cereal is high in fibre, contains antioxidants and chlorophyll, & is free from gluten, dairy & nuts. Also available: Power of Red Creamy Oat-Based Cereal with Strawberry, Goji & Beetroot.

Greece CPW Nestlé Fitness Protein Crunchy Wholegrain Oat Bites with Honey and Added Calcium

Rich in proteins and contain 30% less fat compared to other crunchy muesli.

India Bagrrys Bagrry’s Fruit & Nut Crunchy Muesli with Cranberries

A Swiss style instant high fibre cereal with nine fruits & nuts. Contains more than 30% fruits, nuts and berries, & is free from infused sugar, added preservatives, artificial colours and artificial flavour.

India Style Kitchen Enterprises Missisippy Life Berry Burst Happy Healthy Muesli

Contains amaranth, which is rich in protein & helps to lower cholesterol, blood pressure & the risk of cardiovascular disease. This all natural & fiber rich breakfast cereal is said to eliminate toxins & boost one’s look, and is free from trans fat, cholesterol and lactose.

South Africa Empirestate Trading Passion 4 Wholeness Oats with a Twist Low-GI product comprises crushed oats, cranberries, almonds, coconut flakes, cinnamon, pumpkin seed and linseed. Free from wheat, sugar and trans fat, and low in sodium.


February 2015 39


N E W P R O D U C T S N E W P R O D U C T S

South Korea SDC Food I-Yes-Mom Organic Nutty Nut Cereal

Made with organic grains and nuts including: organic brown rice; organic sorghum that is high in protein and lipid; organic barley which is rich in dietary fiber; domestic pine nut that is rich in minerals including iron and magnesium, and unsaturated fatty acid including oleic acid and linoleic acid; domestic sunflower seed that is rich in omega-3, vitamin E and folic acid; and domestic walnut known as one of 10 longevity food, contains 10 essential amino acids, and is rich in saturated fatty acids and protein.

UK Amisa Amisa Organic Fruity Oat Muesli Made with super-fruit cranberries, strawberries, golden linseed and sunflower seeds, and oats which are batch tested for gluten. Rich in fibre and low GI.

UK Eat Natural Eat Natural Gluten Free Toasted Muesli with Buckwheat

Now in a 65g single serving pack. Gluten-free blend of toasted buckwheat and crisped rice with mixed seeds, dried fruit, coconut and a pinch of cinnamon. Contains 65% dried fruit and seeds, is high in fibre, and low in salt.

UK Oomf Oomf! Bench Pressed Oats Instant Ginger Bread Flavoured Whey Protein Porridge

Contains no added sugar, 20g protein. Made of oats, whey protein, and natural flavours, is high in dietary fibre, and provides slow-burning complex carbohydrates that keep consumers feeling fuller for longer. The whey is readily digestible and provides essential amino acids for growth and recovery. With added xylitol to provide natural sweetness, features a low GI and actively promotes healthy teeth. Also low in sodium and free from artificial flavours.

Indonesia Guinness Guinness Zero ABV Carbonated Malt Drink

Repackaged in a recyclable 330ml can featuring the benefits of malt for extra energy, immunity, to maintain metabolism, prevent dehydration and lower cholesterol level. The bold tasting drink consists of zero percentage alcohol. Said to have an ideal sweetness and is enriched with coffee aroma.

Indonesia Chocoworks Chocoélf Rich Rye Flavoured Sugar Free-Dark Chocolate

Hand made chocolate with a high fibre content to promote digestion. Free from added sugar, alcohol and added preservative. Suitable for diabetics.

DAIRYBrazil Nestlé Nestlé Neston Wheat Cereal &

Fruits SmoothieReformulated and now features an altered vitamin content - 28% pantothenic acid instead of 26%, 56% biotin instead of 28%, and 57% biotin instead of 28% - and also retails in an updated pack design. Provides both energy and nutrition, and features nature identical flavors. Contains milk whey, and is rich in biotin and pantothenic acid, as well as being a source of calcium, vitamins A, B1, B2, B6, B12, and niacin.

Chile Danone Danone Activia Fresh Blackberry Blueberry Flavoured Cultured Skimmed Lactic Drink

Claims to help with digestive comfort, with its “bifidus regularis” (actiregularis), and natural yeast that comes alive to the intestinal flora. Contains 0% total fat and sugar.

Croatia Mlekara Imlek Balans+ Fermented Milk Product with Fibres

Contains Lactobacillus acidophilus, Bifidobacterium bifidum and calcium that contributes to normal digestion.

Ecuador Industrias Lácteas Toni Yogurt Toni Blackberry Flavoured Drinking Yogurt

With a medium fat content and low sodium content, contains Lactobacillus GG.

Finland Arla Arla Protein Blueberry Flavoured Protein Quark

Hhigh protein product contains 20g protein per serving, is sweetened with sugar and stevia glycosides, and is free from lactose and fat. Pack features the Finnish Heart Foundation Better Choice logo.

Hungary Danone Danone Activia Fibra Plus Low-Fat Yogurt with Live Cultures and Wheat Bran

Contains only 0.6% fat and is rich in fibres.

India Dharampal Satyapal Ksheer Dahi Milk product contains stomach friendly bacteria which strengthen the digestive system, while the proteins and calcium promote good health.

Iran Kalleh Dairy Kalleh Kefir Yogurt Said to contribute to digestion and immune system, help against tiredness, and promote beautiful skin, longer life and strong bones. It contains vitamins K, B1 and B1, and reduces stress and allergies.

Japan Kikkoman Kikkoman Green Juice & Soymilk Made with young barley leaf from Kyushu and is fortified with calcium. Russia Kolomnamolprom Tev’ye Molochnik Luxury Yogurt Said to fight pathogenic bacteria, is beneficial for digestive system, and

helps prevent many digestive disorders. Rich in calcium, potassium, magnesium, iodine, proteins, fats, carbohydrates, phosphorus, vitamin A, vitamin D and B vitamins.

South Africa Woolworths Woolworths Food Ayrshire Full Cream Yoghurt

Packed with Howaru probiotic cultures to help keep the body in balance. According to the manufacturer, as a regular part of balanced diet, Howaru cultures help the digestive system function the way it should by reducing the growth of harmful bacteria, also assist in lactose digestion.

South Korea Bifido Bifido Kids Yogurtics Contains probiotics to inhibit harmful bacteria, and zinc for normal immune system and normal cell division. Contains six kinds of lactic acid bacteria.

UK SCI-MX Nutrition Sci-Mx PRO2Go Chocolate Flavoured High Protein Milkshake

Ultra thick and provides 22g protein.

Ukraine Lyustdorf Na Zdorov’e Ultra-Pasteurized Protein Milk

Enriched with natural milk protein, suitable for people who are professionally involved in sports, have a healthy and active lifestyle. According to the manufacturer, has all the essential amino acids, vitamins and minerals in the most optimal ratio, which is important for recovery from heavy or long exercise, strengthening resistance, increasing power rates.

DESSERTS & ICE CREAMAustralia Protein Choices Protein Choices Mango Protein

IcecreamDescribed as a delicious guilt free indulgence with a protein boost. Low in fat and sugars and high in protein.

France Danival Danival Apple, Banana and Raspberry Purée

Made with 100% fruit and contains no added sugar. Organic product is rich in fibre.

HOT BEVERAGESGermany Pukka Herbs Pukka Matcha Green Tea A vital-stimulating organic green tea mixed with the best Matcha powder. Hong Kong Longcheerlim Crops LCL Collagen High Calcium Oat

MilkWith fish collagen, and added vitamin C, calcium, glucosamine, soy lecithin and organic oats. Said to help maintain and improve the foundation of beauty.

CARBONATED SOFT DRINKS

CHOCOLATE CONFECTIONERY

February 201540



1. Unless you or your organization (the “Purchaser”) have already purchased a multi-user license then you have purchased a single license

personal to you to access and read New Nutrition Business and its website (hereafter “New Nutrition Business”) and you hereby agree on behalf of

the Purchaser that it will comply with New Nutrition Business’s conditions of supply hereafter described. Once the Purchaser, or any person within

it, has had access to New Nutrition Business or any part of New Nutrition Business, protected under these conditions, you are agreeing that your

organization as a whole, and the individuals within it, are deemed to be aware of, and consent to, these conditions hereafter in respect of New

Nutrition Business.

2. Unless otherwise agreed in writing in advance by New Nutrition Business, New Nutrition Business may not be sold, nor passed on,

communicated or disseminated in any form (including within its original covers), nor access granted, to any third party (including but not

limited to clients/potential clients/suppliers/agents/partners in other ventures/accountants/solicitors/bankers/brokers/ licensees), or to

any subsidiary, associated or holding company (whether direct or indirect) of the subscriber, whether trading or non-trading, or to any entity

trading under the same umbrella trading name where the direct equity interest is different in any way to that of the subscriber. The Purchaser

is agreeing that in the event that any of its personnel inadvertently do so allow unlicensed usage or access by others as detailed above, that it will

account to New Nutrition Business in full for the sales proceeds at the then current prevailing single copy price as set by New Nutrition Business from

time to time, for each and every occurrence, and further that the Purchaser fully and effectually indemnifies New Nutrition Business in respect of

any claim howsoever arising by any such subsequent unlicensed user against New Nutrition Business. Similarly, if any other piece of identified New

Nutrition Business material, amounting to an article or more, becomes available to the Purchaser by virtue of a breach of this term by any third

party, which is then read or used by the Purchaser in any way, that the Purchaser is hereby agreeing to purchase a copy of the item from New

Nutrition Business containing that piece of intellectual property from New Nutrition Business at the then current prevailing single copy price as set by

New Nutrition Business from time to time for each and every occurrence (unless at New Nutrition Business’s sole discretion the money is sought and

subsequently remitted by the original subscriber), and to abide by New Nutrition Business’s license terms.

3. The Purchaser acknowledges that all materials and information contained in New Nutrition Business are the copyright property of New

Nutrition Business and are protected inter-alia by International Copyright Law and the Copyright Law of the United States of America and

Related Laws Contained in Title 17 of the United States Code and other intellectual property rights and also by the terms of this agreement,

and that no rights in any of the materials are transferred to the Purchaser. The Purchaser agrees the Copyright Law of the United States of

America and Related Laws Contained in Title 17 of the United States Code is only relevant where New Nutrition Business has not sought and

secured protection elsewhere in these conditions, or indeed where sections are expressly excluded, without prejudicing the enforceability of the

remainder of the Title. The Purchaser agrees that the provisions of Section 107 of Title 17 of the United States Code and sections 29 and 30

of the Copyright, Designs and Patents Act 1988 shall not apply to the use to be made by the Purchaser. The Purchaser undertakes that it will

not copy, reproduce, print or store in any manner (electronic or otherwise), extract or transmit in any form or otherwise deal with in any way

the whole or part of the data, materials or information contained in New Nutrition Business without first obtaining the consent in writing of the

Publisher of New Nutrition Business.

4. New Nutrition Business contains information obtained from authentic sources using primary research wherever possible. Reasonable efforts

have been made to publish reliable data and information, but the authors and the publishers cannot accept responsibility for the validity of all

materials. Neither the authors nor the publishers, nor anyone else associated with this publication, shall be liable for any loss, damage or liability

directly or indirectly caused or alleged to be caused.

5. New Nutrition Business nor any part of it may be reproduced or transmitted in any form or by any means, electronic or mechanical, including

photocopying, microfilming and recording, or by information storage or retrieval system, without permission in writing from the Publisher.

6. The consent of New Nutrition Business does not extend to copying for general distribution, for promotion, for creating new works or for resale.

Specific permission must be obtained in writing from the publishers.

7. New Nutrition Business reserves the right to amend its terms at any time.

I M P O R T A N T N O T I C E

10 Key Trends in Food, Nutrition & Health 2015

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

Published December 2014

Published every year since 1996, our 10 Key Trends is the only trends analysis that enables you to differentiate enduring trends from short-term fads and understand how to use them successfully in your strategy.

That’s because our methodology, shown in the report in our unique Trend Diamond, ensures that we take into account every single factor that drive a trend’s evolution – from ingredients and science through to consumer needs and sales figures.

All year long we monitor a mass of data. We analyse this to work out what’s truly important, and what’s not. That’s why companies around the world use our annual Key Trends to formulate their strategy and innovation plans.

PPT PDF

8www.new-nutrition.com

© New Nutrition Business 20147 www.new-nutrition.com

© New Nutrition Business 2014

10 Key Trends 2015

CHART 2: THE NUTRITIONAL PRODUCT LIFE CYCLE The chart below was developed to aid understanding of brand positioning, ingredient lifecycles and the evolution of markets.

Many products start out on the left, targeting consumers who have a need for a product that has effective technology. They sell in

low volumes at premium prices but over time their appeal increases and they move down the price curve to the right, eventually

becoming mass-market products. Many companies deliberately target the lifestyle area as a way of creating a defensible niche and

maintaining premium prices. Below we show where some of the Key Trends currently sit on the life-cycle. The stages of the life

cycle are:

Technology consumers – These are the early adopters, people who have a near-medical need for a product. They need the technology of the food to address their health condition. They see products in a medicalised context and they will pay a substantial

premium for something that addresses their condition.Lifestyle consumers – They are interested in maintaining their wellness, not fighting illness. They will adopt new brands and will pay

a premium for a product.Mass-market consumers – They are motivated when a benefit becomes a standard and is available in products with low or no

premiums, ideally from well-known and trusted brands.TECHNOLOGY CONSUMERS

LIFESTYLECONSUMERS MASS-MARKET

CONSUMERS

Solid line = sales volumes

Broken line = unit selling price6% - 8% of consumers 20% - 25% of consumers 67% - 74% of consumers

SALES

TIME

Naturally functional

Snackifi cation

Weight Wellness

Protein

Good Carbs Bad Carbs

Dairy 2.0

Gluten-Free

Sugar

Fat

Digestive Wellness



10 Key Trends 2015

10 Key Trends 2015

1NATURALLY

FUNCTIONAL

The strongest foundation for success 3

Market shift means opportunity for entrepreneurs

WEIGHT WELLNESS

2 Paradise for start-ups – innovation

without limits

SNACKIFICATION

4PROTEIN

Powered by “naturally functional” 5

GOOD CARBS VS BAD CARBS

The rise of good grains 6

Dairy’s rebirth as a natural whole food

DAIRY 2.0

7The normalisation of

avoidance

FREE-FROMFAT

9 A long, slow death for low-fat?8

The new dietary demon

SUGAR

DIGESTIVE WELLNESS

10The secret driver

of other trends

10 Key Trends in

Food, Nutrition &

Health 2015

by Julian Mellentin

Published by

NOVEMBER/DECEMBER 2014 ISSN 1464-3308

VOLUME 20 NUMBER 2/3

February 2015 41


I M P O R T A N T N O T I C E

10 Key Trends in Food, Nutrition & Health 2015


Published December 2014

Published every year since 1996, our 10 Key Trends is the only trends analysis that enables you to differentiate enduring trends from short-term fads and understand how to use them successfully in your strategy.

That’s because our methodology, shown in the report in our unique Trend Diamond, ensures that we take into account every single factor that drive a trend’s evolution – from ingredients and science through to consumer needs and sales figures.

All year long we monitor a mass of data. We analyse this to work out what’s truly important, and what’s not. That’s why companies around the world use our annual Key Trends to formulate their strategy and innovation plans.

PPT PDF


© New Nutrition Business 20147 www.new-nutrition.com


10 Key Trends 2015

CHART 2: THE NUTRITIONAL PRODUCT LIFE CYCLE The chart below was developed to aid understanding of brand positioning, ingredient lifecycles and the evolution of markets.

Many products start out on the left, targeting consumers who have a need for a product that has effective technology. They sell in

low volumes at premium prices but over time their appeal increases and they move down the price curve to the right, eventually

becoming mass-market products. Many companies deliberately target the lifestyle area as a way of creating a defensible niche and

maintaining premium prices. Below we show where some of the Key Trends currently sit on the life-cycle. The stages of the life

cycle are:

Technology consumers – These are the early adopters, people who have a near-medical need for a product. They need the technology of the food to address their health condition. They see products in a medicalised context and they will pay a substantial

premium for something that addresses their condition.Lifestyle consumers – They are interested in maintaining their wellness, not fighting illness. They will adopt new brands and will pay

a premium for a product.Mass-market consumers – They are motivated when a benefit becomes a standard and is available in products with low or no

premiums, ideally from well-known and trusted brands.TECHNOLOGY CONSUMERS

LIFESTYLECONSUMERS MASS-MARKET

CONSUMERS

Solid line = sales volumes

Broken line = unit selling price6% - 8% of consumers 20% - 25% of consumers 67% - 74% of consumers

SALES

TIME

Naturally functional

Snackifi cation

Weight Wellness

Protein

Good Carbs Bad Carbs

Dairy 2.0

Gluten-Free

Sugar

Fat

Digestive Wellness



10 Key Trends 2015

10 Key Trends 2015

1NATURALLY

FUNCTIONAL

The strongest foundation for success 3

Market shift means opportunity for entrepreneurs

WEIGHT WELLNESS

2 Paradise for start-ups – innovation

without limits

SNACKIFICATION

4PROTEIN

Powered by “naturally functional” 5

GOOD CARBS VS BAD CARBS

The rise of good grains 6

Dairy’s rebirth as a natural whole food

DAIRY 2.0

7The normalisation of

avoidance

FREE-FROMFAT

9 A long, slow death for low-fat?8

The new dietary demon

SUGAR

DIGESTIVE WELLNESS

10The secret driver

of other trends

10 Key Trends in

Food, Nutrition &

Health 2015

by Julian Mellentin

Published by

NOVEMBER/DECEMBER 2014 ISSN 1464-3308

VOLUME 20 NUMBER 2/3

February 201542



The Snackification of Breakfast


Published November 2014

Breakfast has become one of the most fought-over battlegrounds in food and health, a battle fuelled by consumers’ need for easy and quick meals in the morning – and by two massively successful disruptive innovations, Belvita’s breakfast biscuit and Up & Go’s liquid breakfast. This 65-page report shows how, around the world from Asia to America, breakfast is being “snackified”. This means a wealth of new opportunities for companies in every food category.

Everyone wants a slice of breakfast: Every type of food or beverage company, in every category, either is looking at what they can do to get their own slice of the breakfast market or is in the process of launching or building up products.

Markets are being transformed: In 2014, sales of breakfast cereals in the US fell by 5% – equivalent to $300 million (€236 million). Of this number, $70 million switched to one brand – Belvita. The rest switched to a host of small brands. It’s a similar story in other markets.

Five success factors: Belvita, Oat So Simple and Up & Go are market-changing innovations that work because they deliver on the five factors proven to be key to success in the breakfast category. The report describes these five factors and how to apply them to your own product developments.

Give consumers what they don’t yet know they need: The big successes so far, illustrated by the five case studies in the report, show that any company with ambitions in breakfast should not rule out new product ideas because they are unfamiliar to consumers or too innovative.

PPT PDF


35 www.new-nutrition.com

4.5 Breakfast inspirations from around the world

Central and South AmericaMexicans usually have salty and spicy big meals for breakfast . Cheese, beans,

eggs and beef would be normal ingredients to include . In Brazil breakfast is similar to many European countries: bread with cheese,

ham, butter or jams, coffee and sometimes fruit . Marraquetas are a typical bread from Bolivia, with cheese or meat inside, that

are commonly eaten for breakfast . Generally, in this region breakfast is seen as a traditional meal, with people

sharing the same habits and preferences within countries . It is uncommon to

have it outside home or to skip it, however this is changing among younger

generations – in Brazil, 40% of the younger population skips this meal . (Source:

Unifesp)

Although breakfast cereals were not common in these countries, consumers

seem to be adopting this type of breakfast product . In Brazil,during the 1990s the increase of breakfast cereals consumption was 223% .It currently

represents a $607 million market . (Source: Euromonitor)Additionally, fast food chains in these countries have also launched breakfast menus adapted in some way to the traditional preferences of consumers .


[BOX] Breakfast around the world: what is it and how it is changing. Central and South America Mexicans usually have salty and spicy big meals for breakfast. Cheese, beans, eggs and beef would be normal ingredients to include.

In Brazil the traditional breakfast is similar to many European countries. Composed of bread with cheese, ham, butter or jams, coffee and sometimes fruit.

Marraquetas are a typical bread from Bolivia, with cheese or meat inside, that are commonly eaten for breakfast. Generally, in this region breakfast is seen as a traditional

meal, with people sharing the same habits and preferences within countries. It is uncommon to have it outside home or to skip it, however this is changing among younger generations – in Brazil, 40% of the younger population skips this meal. (Source: Unifesp)


Breakfast around the world: what is it and how it is changing. North America Several brands are focusing on developing innovative products targeting the breakfast occasion. These innovations are mainly related with more convenient product formats.

North America

Several brands are focusing on developing innovative products targeting the breakfast occasion . These innovations

are mainly related with more convenient product formats .


[BOX] Breakfast around the world: what is it and how it is changing. Central and South America Although breakfast cereals were not common in these countries, consumers seem

to be adopting this type of breakfast product. In Brazil,during the 1990s the increase of breakfast cereals consumption was 223%.It currently represents a

$607 million market. (Source: Euromonitor) Additionally, fast food chains in these countries have also launched breakfast

menus adapted in some way to the traditional preferences of consumers.

Both chains, one in Brazil and the other in Argentina, present the typical ham and cheese c ro issan t / b read tha t i s commonly eaten for breakfast in these countries.

Both these chains, one in Brazil and the other in Argentina, present the typical ham and

cheese croissant/ bread that is commonly eaten for breakfast in these countries.



living in urban areas. The main reasons consumers give for skipping breakfast are:• lack of time due to children• lack of time due to work• prioritise a lie-in• just don’t think about it• don’t like eating that early

A study of 500 young Americans (average age 23) found that 37% skipped breakfast. Of those who did eat breakfast, 25% consumed it away from home.Convenience is the number one need for younger consumers and it is these people who your innovative new breakfast product will be targeting. A product that recruits the breakfast skippers may present the biggest opportunity. Both Belvita and Up & Go

targeted skippers.Older consumers, particularly people over 65, are more likely to take time to prepare breakfast and

are – like the Weekend Breakfast occasion – a less attractive target group. For example, in the US market 95% of people over the age of 60 take breakfast at home.

1.3 Change before your competitors do

The changes driven by Belvita and others in breakfast are an example of how categories can change. No one in our industry can ever assume either that:

a) Category drivers are known and stable and the category will stay similar to what it is today.

b) A “wacky” or new idea has no chance of succeeding.

Consumers have shown themselves in every category to be willing to embrace the new. People also want more variety across all of their diet and they have shown themselves – across many different cultures – willing to experiment with new product types at breakfast.

The breakfast meal occasion has for some time been ripe for “disruptive innovation” – a term coined back in 1995 by Harvard Business School researcher Clayton M. Christensen to describe a product that overturns the existing status quo in a market. Christensen says that even when established firms recognise the existence of a disruptive innovation they are reluctant to take advantage of it, since it

would involve introducing a product competing with their existing (and often profitable) approach to the market. Christensen says established players can see these changes coming but are seemingly unable to do anything about it.This is exactly what has happened with breakfast biscuits. The success of Belvita breakfast biscuits isn’t a total surprise. Many, many major companies had at one time or another looked at the opportunity – and

CHART 3: BREAKFAST ON-THE-GO IS A GLOBAL NEED Example: Chinese shoppers are almost twice as likely to eat breakfast away from home during the week than any other meal .

Younger Chinese shoppers (under 40) are significantly more likely than other age segments to eat away from home - especially breakfast .

Percentage of people who eat the following meals away from home 2-3 times during the week or moreSource: Health Focus International

57%

33%

13%

Breakfast Lunch Dinner



1. The reinvention of breakfast


Weekday Breakfast at home

Weekdays 2nd Breakfast

Weekend Breakfast

•  At home, seated or standing •  60% of occasions consumed alone •  Habit driven •  Under time pressure •  “Healthiness” often a high priority •  Younger people and men most like to

miss this type of breakfast, older people most likely to be committed to it as a consumption occasion

•  At work •  Individual •  For some people consumed

soon after arriving at work, for others it is a mid-morning “refuelling” snack.

•  People willing to choose from a wide range of foods and drinks

•  At home. In some countries in a café or restaurant (American brunch for example). Younger/higher-income/education people in Australia and New Zealand more likely to eat away from home.

•  With family and/or friends •  Pleasure & fun •  More time devoted to breakfast •  Convenience matters much less

Weekday Breakfast on the move

•  The alternative to the breakfast at home.

•  At work or travelling to work (car or public transport)

•  Consumed alone •  Convenience is key •  People willing to choose from a wide

range of foods and drinks

CHART 1: THE FOUR TYPES OF BREAKFAST

BOX 1: WHAT DO WE MEAN BY “BREAKFAST”?

Breakfast varies widely in its meaning and composition in different countries and cultures . For the purposes of this report we define it as any food or drink consumed between waking up and lunch .

However, in terms of thinking about strategy and how you position a new product (or reposition an existing product) the most useful way to think about breakfast is shown on Chart 1, which sets out the four main types of consumption .

The Weekend Breakfast offers fewer opportunities for new breakfast products . This is essentially because it is less driven by time-pressure and people have less need for convenience – the key factor in successfully innovating with breakfast products, as the case studies show . With this in mind, this report is concerned with the weekday breakfast, not the weekend breakfast .


Breakfast has become one of the most intensely fought-over battlegrounds in the business of food and health and will stay that way for some time. There are many reasons for this, but the two biggest are:

• Thanks to time pressure it has become the meal occasion where people are most likely to skip a meal at home and eat on-the-go. As a result it is at breakfast that the trend towards the “snackification of everything” can be seen most clearly. It is no exaggeration to say breakfast has already been re-defined by snacking.

• The enormous success of two simple but effective disruptive innovations, Mondelez Belvita breakfast biscuits (see Case Study 1) and Sanitarium Up & Go liquid breakfast (see Case Study 2). These two have shown industry and retailers that – contrary to a lot of consumer

research which failed to spot this trend and claimed that people were conservative in their habits – young people and busy professional people in major urban centres are very willing to change their habits and are to be experimental with new types of breakfast foods (and drinks).

COMPANIES IN EVERY CATEGORY LOOK FOR A PLACE IN BREAKFAST

Possibly one of the most unenviable jobs to have right now would be that of a senior executive at Kellogg, General Mills/Nestle and another of the large established breakfast cereal companies.

Most of these companies looked at opportunities such as breakfast biscuits and breakfast drinks in recent years – only for senior management to dismiss




Weekend Breakfast














Published by Report

The Snackification

of Breakfast

by Julian Mellentin

How changing consumer habits

are creating new opportunities

February 2015 43


Please invoice my company – Please supply a purchase order. THE INVOICE IS PAYABLE IN 10 DAYS.

Please send a pro forma invoice so that I can arrange for pre-payment, I understand that once the payment is received you will complete my order.

I will send payment directly to your bank – NatWest, Law Courts, Temple Bar, 217 The Strand, London WC2R 1ALAccount No: 16663357 Sort Code: 60-80-08 Swift Code: NWBKGB2L IBAN: GB62NWBK60800816663357

I enclose a cheque payable to The Centre For Food & Health Studies Ltd

PAYMENT DETAILS

Pleasedebit my

Cardholder’s Name

Card number

Last 3 digits on signature strip Expiry date Valid from

PLEASE NOTE:• THAT CREDIT CARDS WILL BE DEBITED BY PAYMENT EXPRESS OR PAYPAL, OUR FOREIGN CURRENCY PAYMENT AGENTS.

• ALL ORDERS PRE-PAID WILL BE SENT A FULL-PAID INVOICE

Fax back to: UK +44(0)20 7900 1937 Email to: [email protected] Centre For Food & Health Studies Ltd, Subscriptions Dept, Crown House, 72 Hammersmith Road, London W14 8TH, UK.

www.new-nutrition.com

Cardholder’s Signature

Please circle the relevant currency £ $ € A$ NZ$ ¥ C$

(UK purchases pls+VAT)TOTAL

Name: Position:

Dept: Company:

Address: Country:

Phone:

Email: Fax:

CONTACT DETAILS Please Write Clearly

ORDER FORM

or Email [email protected]

N e w N u t r i t i o N

B u s i n e s s• prices shown for sole use only, licenses available

Purchase online at www.new-nutrition.com or fax this form to UK +44(0)20 7900 1937

BUY THE PDF & PPT TOGETHER & GET A 20% DISCOUNT

PDF POWERPOINT POWERPOINT PRICE PER REPORT IN PDF OR PPT – €400 / $530 / £320/ A$570 / NZ$620 / ¥55,000 / C$580 ONLY ONLY & PDF COMBINED PACKAGE FORMAT OF PDF & PPT – €530 / $715 / £415/ A$770 / NZ$850 / ¥72,000 / C$770

q q q 10 Key Trends in food, nutrition and health 2015

q q q The Snackification of Breakfastº

q Failures in Functional Foods and Beverages

q q q 12 Key Trends in food, nutrition and health 2014

q Lactose-free dairy: Opportunities, strategies and key case studies

q Kids’ dairy and snacking: 10 case studies in marketing and innovation

q q q Coconut water 2012

q q q Trends and strategies in healthy snacking: 15 key case studies

q Smart start-up strategy in healthy food and beverage

q The food & health marketing Handbook



Published November 2014

Breakfast has become one of the most fought-over battlegrounds in food and health, a battle fuelled by consumers’ need for easy and quick meals in the morning – and by two massively successful disruptive innovations, Belvita’s breakfast biscuit and Up & Go’s liquid breakfast. This 65-page report shows how, around the world from Asia to America, breakfast is being “snackified”. This means a wealth of new opportunities for companies in every food category.

Everyone wants a slice of breakfast: Every type of food or beverage company, in every category, either is looking at what they can do to get their own slice of the breakfast market or is in the process of launching or building up products.

Markets are being transformed: In 2014, sales of breakfast cereals in the US fell by 5% – equivalent to $300 million (€236 million). Of this number, $70 million switched to one brand – Belvita. The rest switched to a host of small brands. It’s a similar story in other markets.

Five success factors: Belvita, Oat So Simple and Up & Go are market-changing innovations that work because they deliver on the five factors proven to be key to success in the breakfast category. The report describes these five factors and how to apply them to your own product developments.

Give consumers what they don’t yet know they need: The big successes so far, illustrated by the five case studies in the report, show that any company with ambitions in breakfast should not rule out new product ideas because they are unfamiliar to consumers or too innovative.

PPT PDF



4.5 Breakfast inspirations from around the world

Central and South AmericaMexicans usually have salty and spicy big meals for breakfast . Cheese, beans,

eggs and beef would be normal ingredients to include . In Brazil breakfast is similar to many European countries: bread with cheese,

ham, butter or jams, coffee and sometimes fruit . Marraquetas are a typical bread from Bolivia, with cheese or meat inside, that

are commonly eaten for breakfast . Generally, in this region breakfast is seen as a traditional meal, with people

sharing the same habits and preferences within countries . It is uncommon to

have it outside home or to skip it, however this is changing among younger

generations – in Brazil, 40% of the younger population skips this meal . (Source:

Unifesp)

Although breakfast cereals were not common in these countries, consumers

seem to be adopting this type of breakfast product . In Brazil,during the 1990s the increase of breakfast cereals consumption was 223% .It currently

represents a $607 million market . (Source: Euromonitor)Additionally, fast food chains in these countries have also launched breakfast menus adapted in some way to the traditional preferences of consumers .


[BOX] Breakfast around the world: what is it and how it is changing. Central and South America Mexicans usually have salty and spicy big meals for breakfast. Cheese, beans, eggs and beef would be normal ingredients to include.

In Brazil the traditional breakfast is similar to many European countries. Composed of bread with cheese, ham, butter or jams, coffee and sometimes fruit.

Marraquetas are a typical bread from Bolivia, with cheese or meat inside, that are commonly eaten for breakfast. Generally, in this region breakfast is seen as a traditional

meal, with people sharing the same habits and preferences within countries. It is uncommon to have it outside home or to skip it, however this is changing among younger generations – in Brazil, 40% of the younger population skips this meal. (Source: Unifesp)


Breakfast around the world: what is it and how it is changing. North America Several brands are focusing on developing innovative products targeting the breakfast occasion. These innovations are mainly related with more convenient product formats.

North America

Several brands are focusing on developing innovative products targeting the breakfast occasion . These innovations

are mainly related with more convenient product formats .


[BOX] Breakfast around the world: what is it and how it is changing. Central and South America Although breakfast cereals were not common in these countries, consumers seem

to be adopting this type of breakfast product. In Brazil,during the 1990s the increase of breakfast cereals consumption was 223%.It currently represents a

$607 million market. (Source: Euromonitor) Additionally, fast food chains in these countries have also launched breakfast

menus adapted in some way to the traditional preferences of consumers.

Both chains, one in Brazil and the other in Argentina, present the typical ham and cheese c ro issan t / b read tha t i s commonly eaten for breakfast in these countries.

Both these chains, one in Brazil and the other in Argentina, present the typical ham and

cheese croissant/ bread that is commonly eaten for breakfast in these countries.



living in urban areas. The main reasons consumers give for skipping breakfast are:• lack of time due to children• lack of time due to work• prioritise a lie-in• just don’t think about it• don’t like eating that early

A study of 500 young Americans (average age 23) found that 37% skipped breakfast. Of those who did eat breakfast, 25% consumed it away from home.Convenience is the number one need for younger consumers and it is these people who your innovative new breakfast product will be targeting. A product that recruits the breakfast skippers may present the biggest opportunity. Both Belvita and Up & Go

targeted skippers.Older consumers, particularly people over 65, are more likely to take time to prepare breakfast and

are – like the Weekend Breakfast occasion – a less attractive target group. For example, in the US market 95% of people over the age of 60 take breakfast at home.

1.3 Change before your competitors do

The changes driven by Belvita and others in breakfast are an example of how categories can change. No one in our industry can ever assume either that:

a) Category drivers are known and stable and the category will stay similar to what it is today.

b) A “wacky” or new idea has no chance of succeeding.

Consumers have shown themselves in every category to be willing to embrace the new. People also want more variety across all of their diet and they have shown themselves – across many different cultures – willing to experiment with new product types at breakfast.

The breakfast meal occasion has for some time been ripe for “disruptive innovation” – a term coined back in 1995 by Harvard Business School researcher Clayton M. Christensen to describe a product that overturns the existing status quo in a market. Christensen says that even when established firms recognise the existence of a disruptive innovation they are reluctant to take advantage of it, since it

would involve introducing a product competing with their existing (and often profitable) approach to the market. Christensen says established players can see these changes coming but are seemingly unable to do anything about it.This is exactly what has happened with breakfast biscuits. The success of Belvita breakfast biscuits isn’t a total surprise. Many, many major companies had at one time or another looked at the opportunity – and

CHART 3: BREAKFAST ON-THE-GO IS A GLOBAL NEED Example: Chinese shoppers are almost twice as likely to eat breakfast away from home during the week than any other meal .

Younger Chinese shoppers (under 40) are significantly more likely than other age segments to eat away from home - especially breakfast .

Percentage of people who eat the following meals away from home 2-3 times during the week or moreSource: Health Focus International

57%

33%

13%

Breakfast Lunch Dinner



1. The reinvention of breakfast




Weekend Breakfast














BOX 1: WHAT DO WE MEAN BY “BREAKFAST”?

Breakfast varies widely in its meaning and composition in different countries and cultures . For the purposes of this report we define it as any food or drink consumed between waking up and lunch .

However, in terms of thinking about strategy and how you position a new product (or reposition an existing product) the most useful way to think about breakfast is shown on Chart 1, which sets out the four main types of consumption .

The Weekend Breakfast offers fewer opportunities for new breakfast products . This is essentially because it is less driven by time-pressure and people have less need for convenience – the key factor in successfully innovating with breakfast products, as the case studies show . With this in mind, this report is concerned with the weekday breakfast, not the weekend breakfast .


Breakfast has become one of the most intensely fought-over battlegrounds in the business of food and health and will stay that way for some time. There are many reasons for this, but the two biggest are:

• Thanks to time pressure it has become the meal occasion where people are most likely to skip a meal at home and eat on-the-go. As a result it is at breakfast that the trend towards the “snackification of everything” can be seen most clearly. It is no exaggeration to say breakfast has already been re-defined by snacking.

• The enormous success of two simple but effective disruptive innovations, Mondelez Belvita breakfast biscuits (see Case Study 1) and Sanitarium Up & Go liquid breakfast (see Case Study 2). These two have shown industry and retailers that – contrary to a lot of consumer

research which failed to spot this trend and claimed that people were conservative in their habits – young people and busy professional people in major urban centres are very willing to change their habits and are to be experimental with new types of breakfast foods (and drinks).

COMPANIES IN EVERY CATEGORY LOOK FOR A PLACE IN BREAKFAST

Possibly one of the most unenviable jobs to have right now would be that of a senior executive at Kellogg, General Mills/Nestle and another of the large established breakfast cereal companies.

Most of these companies looked at opportunities such as breakfast biscuits and breakfast drinks in recent years – only for senior management to dismiss




Weekend Breakfast














Published by Report

The Snackification

of Breakfast

by Julian Mellentin

How changing consumer habits

are creating new opportunities

February 201544



S U B S C R I B E

Publication name Format Price per unit SOLE USE ONLY* Currency Amount

New Nutrition Business - 1 year subscription Print & Pdf €910/ $1200/ £765/ A$1330/ NZ$1550/¥110,000 /C$1200

New Nutrition Business - 2 year subscription Print & Pdf €1590/ $2100/ £1330/ A$2250/ NZ$2550/ ¥192,000 /C$2100

Kids Nutrition Report - 1 year subscription Print & Pdf €910/ $1200/ £765/ A$1330/ NZ$1550/¥110,000 /C$1200

Kids Nutrition Report - 2 year subscription Print & Pdf €1590/ $2100/ £1330/ A$2250/ NZ$2550/ ¥192,000 /C$2100

* Group subscriptions and company-wide internet licenses are available on request. Please email: [email protected]: Customers subscribing to one of the above publications are entitled to receive a 20% discount when they subscribe to the other.

I currently have a multi-user Premium/ Enhanced license. Please contact me with a renewal quotation.

PAYMENT DETAILS

Name: Position:

Dept: Company:

Address: Country:

Phone:

Email: Fax:

Delivery Address If different from Billing Address

BILLING ADDRESS Please Write Clearly

Please invoice my company – Please supply a purchase order. THE INVOICE IS PAYABLE IN 10 DAYS.

Please send a pro forma invoice so that I can arrange for pre-payment, I understand that once the payment is received you will complete my order.

I will send payment directly to your bank – NatWest, Law Courts, Temple Bar, 217 The Strand, London WC2R 1ALAccount No: 16663357 Sort Code: 60-80-08 Swift Code: NWBKGB2L IBAN: GB62NWBK60800816663357

I enclose a cheque payable to The Centre For Food & Health Studies Ltd

Card number

Last 3 digits on signature strip Expiry date Valid from

Fax back to: UK +44(0)20 7900 1937 Email to: [email protected] Centre For Food & Health Studies Ltd, Subscriptions Dept, Crown House, 72 Hammersmith Road, London W14 8TH, UK.

www.new-nutrition.com

Complete the subscription request below and fax to +44(0)2079001937or scan and email to [email protected]

or visit www.new-nutrition.com/strategy/about

Pleasedebit my

Cardholder’s Name

PLEASE NOTE:• THAT CREDIT CARDS WILL BE DEBITED BY WORLDPAY OR PAYPAL, OUR FOREIGN CURRENCY PAYMENT AGENTS.

• ALL ORDERS PRE-PAID WILL BE SENT A FULL-PAID INVOICE

Cardholder’s Signature

N · PDF fileu t r i t i o n. BUSINESS. V. olume. 20 n. umber. ... Maltodextrin, Milk...

Documents

Transcript of N · PDF fileu t r i t i o n. BUSINESS. V. olume. 20 n. umber. ... Maltodextrin, Milk...