Product of the Year, the UK’s leading survey into consumer product innovation, has revealed the nation's latest must-have products at the UK’s 4th annual award ceremony. The 35 best innovations in Drinks, Snacks, Household Cleaning, Men’s Grooming, Make-Up and the newly introduced Alcohol category, have all been rewarded with the title of Product of the Year. One of the winners was Arla Foods, which should be congratulated for its clear on-pack graphics that indicate the low percentage of fat, even in standard milk. With just 4% in whole milk, 2% in semi-skimmed milk, and just 0.5% in skimmed milk, consumers will no longer be unclear about its fat content. Nestle Aero Bubbles was also awarded a team-building weekend from Blue Marlin for Best Single Execution. Attendees on the night agreed that the rise in recognition of the Product of the Year logo is not only beneficial to the winning products and manufacturers but also to consumers. Tom Moody of Procter and Gamble said: “Increased recognition of the Product of the Year logo shows that consumers genuinely see this as a guide on what to buy.” The Product of the Year Awards sponsored by Blue Marlin are designed to reward innovation and were judged by 12,000 consumers through TNS research. Entries for the 2009 awards open in March 2008. Brands can pre-register, download entry forms and gain a reminder when registration opens, by visiting the link below this article.

Los Angeles-based Y Water, a $1 million start-up company, is set to introduce an eponymous low sugar vitamin infused flavoured water in early 2008. The quirky product, aimed at children, comes in remarkable packaging created by Yves Béhar of San Francisco design agency Fuseproject. The Y-shaped 9oz bottle can also be used as a toy and is intended to make drinking water more fun for kids. The certified organic drink will be available in four varieties, each with a flavour mix composed of ingredients that target different parts of the body: bones, muscles, the brain, and the immune system. For example, Y Bone water has a shot of calcium and vitamins mixed with organic black carrot juice, banana, strawberry and a touch of spearmint oil. Y Brain water contains zinc, rosemary, lemon and caramel. Y Water founder Thomas Arndt explained that once a child finishes the bottle, special connectors on the pack allow Y Water bottles to stick together in Lego-like constructions. “It's exotic and it's unique," he said. "It enriches the fantasy life of kids. They start guessing what’s in it.” Clearly, targeting kids is part of a broader strategy by the beverage industry to tailor drinks to niche consumer segments. “What we are seeing are finely targeted products for a particular need or demographic, and that includes kids, which is an underserved category,” noted one analyst. Arndt, who has previously worked for Red Bull and Carpe Diem, said he started thinking about a children’s beverage two years ago when he couldn’t find anything in Los Angeles supermarkets that he wanted his own kids to drink. His idea was to create a low calorie, organic beverage that would be a thirst quencher, yet also have health benefits or functionality all in a kid-friendly package. “When it comes to drinks, kids aren’t taken seriously,” he concluded. Béhar, who is also an investor in the project, explains that the design is about the process of turning drink into a game, and a disposable product into a reusable one. His team devised Y Water’s intertwined name and bottle based on the concept of a stable, symmetrical bottle that incorporates a sense of play and learning. Bottle labels, designed by ad agency Kastner & Partner in Los Angeles, include whimsical, childlike drawings and irreverent tag lines. For Y Bone water, there's a skeleton and the line, “because you don’t want your skeleton walking out on you". Y Muscle water has an octopus in high boots and encourages kids to drink it, “because you never know who’s going to challenge you to a wrestling match". However, Y Water also contains sugar cane juice, and some food industry nutritionists are sceptical about its overall health benefits. Other critics have pointed out that throwing in a little zinc won’t make a difference unless a child is zinc deficient, in which case dedicated pharmaceutical supplements would be preferred. Arndt argues that Y Water is meant to be a part of healthy, balanced daily nutrition, not a replacement. He believes the benefits of the added vitamins and minerals in drinks are well documented. As for sugar, Arndt is adamant: “I’d rather give kids a tolerable level of sweetness as an incentive to substitute soft drinks with water, rather than offer them only plain water that they don’t like.” Drinks industry analysts believe Y Water has potential because it addresses issues such as health and the environment. Ecologically conscious parents may be more comfortable with buying a product packaged in a plastic bottle that's intended to be reused within the home, but questions are unanswered as to whether the product is fully recyclable if thrown away. Y Water has already found a listing for the children’s functional water range at Whole Food Markets, but each 9oz bottle will cost a hefty $1.69 when it goes on sale, a price that observers suggest will simply scare customers away from such an innovative concept.

Romanian producer Biborteni, which holds around 5% of the national mineral water market, expects to increase sales by 2% in the wake of product portfolio diversification. However, the company forecasts that 2007 turnover will have advanced by 22% from a year earlier, and the company’s diversification into juice production and sodas are likely to benefit from the 30% overall growth of the soft drinks market. “I believe a possible hot summer in 2008 isn't going to take producers by surprise again, because they will build larger stocks than this year,” said Madalin Simion, a brand manager at Biborteni. In 2007, the company relaunched Biborteni mineral water in three formulae with various degrees of carbonation, having added a second water brand, Valea Brazilor, to its portfolio at the end of 2006. Biborteni’s main rivals are Romanian mineral water producers Romaqua, Apemin Tusnad, Perla Harghitei, Bucovina, as well as Coca-Cola Hellenic, owning Dorna Apemin bottler.

Icelandic Water Holdings is currently rolling out its premium bottled water brand Icelandic Glacial across the US in strategic phases with Anheuser-Busch, and aims to complete nationwide distribution of the product by the third quarter of 2008. Currently, the European bottled water company has established distribution with Anheuser-Busch in the north-east and south-west of the country, with key state rollouts completed in California, Nevada, Arizona and Hawaii. “The plan is to move across the country," said a company spokesperson. "New York, New Jersey and Florida have also featured in the early part of the distribution campaign. With many more states coming on stream in the early part of 2008 through both on- and off-trade accounts, Icelandic Glacial has enjoyed a very positive reception to its distribution strategy.” Among those retailers now stocking the product are: Target, Safeway, Vons, Dominicks, Whole Foods Market, Wildoats, Pavillions, 7-11, Duane Reade, AMPM, British Petroleum, Albertsons, and airports in Los Angeles and New York.

Californian company Global Beverage Innovations has announced a $7.5 million order for its Anti-Ageing Water from Kunimitsu Kido Company, a highly respected distributor and manufacturer of cosmeceuticals in Japan. The US company claims Anti-Ageing Water is made with the highest quality nutraceutical ingredients, which have been clinically proven to increase DNA repair by up to 30% in 33 days. Stuart Garret of Global Beverage Innovations told water innovation: “The active ingredient in Anti-Ageing Water is the maximised formulation of an effective natural product called quinic acid, which is an extract of the active ingredient from the plant Uncaria Tomentosa. It has been scientifically proven to protect and repair DNA, promote longevity and preserve youthfulness. This is due to its unique anti-inflammatory, anti-viral, anti-mutagenic and antioxidant activities.”

Private label bottler Advanced H2O in Seattle has been purchased by Dallas-based private equity firm HM Capital Partners for an undisclosed sum. The move comes amid several food and beverage company acquisitions by HM Capital, which currently owns Sturm Foods, a maker of nutritional drink mixes. Advanced H2O was founded in 1998 and provides low-cost private label bottled water to supermarket chains and regional retailers on the West Coast. The company will be familiar to water innovation readers for teaming up with children’s stationery brand Crayola in August 2006 to launch Crayola Color Coolerz!, a vitamin enhanced water aimed at kids. HM Capital is currently investing and managing more than $3.7 billion in equity capital. The company has previously invested in food companies including Swift & Co, Morningstar Group, G Heilman Brewing, Ghiradelli Chocolate and G.H. Mumm/Perrier Jouët. It was originally founded by Tom Hicks and John Muse. Hicks is no longer involved in the firm.

UK-based Minton Spring Water believes the strategy of reserving its premium bottled water brand is paying dividends. Minton is best known for its eponymous water packaged in glass bottles and served at fine hotels, restaurants and brasseries. The company also produces PET formats for outdoor catering activities. A 33cl PET pack for the brand’s flavoured water range is distributed through sandwich bars, cafes and clubs. But company officials have ruled out any strategy to widen distribution to larger outlets. A spokesperson told water innovation: “The reason that we have been focusing on non-retail is to keep the brand exclusive. We always felt that, if a restaurant charges customers £3.50 for a bottle of water and they see it in a supermarket priced four or five times less, customers might feel that they were ripped off by the restaurant.” Launched in 1991, the company sources its water deep in the protected moorlands of Dartmoor. The brand reflects a sophisticated product using a simple, clean label depicting the Minton Crest, with the name Minton alluding to the English heritage. The approximate throughput of the bottling plant was 2.5 million litres in 2007. The company has achieved a 7% rise in volumes sold and expects to achieve 8% growth in 2008.

Juice drink manufacturer Sunny Delight Beverages has signed a deal to purchase the Fruit2O water and Veryfine juice brands from Kraft Foods as it moves towards a more nutritious beverage portfolio. The companies did not disclose the purchase price, but the two brands were reported to have a combined 2006 turnover of about $135 million. Along with the brands, Sunny Delight will also take control of the Veryfine plant located in Littleton and Kraft’s packing facility in Fresno, California. About 200 workers employed at the sites will also be transferred to Sunny Delight under the terms of the sale. Sunny Delight Chief Executive Officer Billy Cyr said that the deal was an important step in targeting the growing number of health-conscious consumers in the soft drinks market. He said: “This acquisition will further accelerate our growth and continue our commitment to bring more wholesome beverage choices to consumers. Fruit2O is the leading zero calorie fruit-flavoured water, and Veryfine has been providing high quality beverages since 1865.” Kraft said the brands no longer suit its long-term growth strategies: “As we restore Kraft to reliable growth, we’re focusing our investments on the brands that best fit,” said Rick Searer, Kraft Executive Vice President and President of Kraft North America. “Fruit2O and Veryfine are great brands. However, for Kraft, we believe we will create greater long-term shareholder value by selling, rather than investing in, these brands.” Fruit2O consists of two lines of waters: Fruit2O water is a leading full-fruit flavoured water beverage. It's made with natural fruit essence and is available in eight flavours: raspberry, strawberry, lemon, grape, orange, peach, cherry and lime. The second line, introduced in early 2007, is Fruit2O vitamin enhanced water and is sold in four varieties: Immunity, Energy, Hydration and Relaxation. Meanwhile, Veryfine offers three lines of beverages: juices and juice drinks, nectars and chillers. Sunny Delight is a privately held juice company, based in Ohio and created in 2004 with the acquisition of the Sunny Delight brands from Procter & Gamble Co. Today, the company’s flagship brand remains its SunnyD juice drink.

According to reports in the Indian media, bottled water producer Bisleri International is planning to launch an enhanced water product within one year. Bisleri International Managing Director and Chief Executive Officer Ramesh Chauhan said: “We are certainly working on enhanced water. We want to give something more than just flavoured water, which will offer health benefits to customers.” The exact details of the product are yet to be finalised. However, it is clear that Bisleri, which claims around 30% share in the Indian bottled water market, will be looking at developing a product that gives it an edge over competitors. It’s apparently working closely with people from the flavours segment, ayurvedic extract manufacturers, vitamins and minerals experts. The exact formulation may not yet have been finalised, but the “King of Bottled Water” Chauhan is clear that he wants to enter this category and so his company has almost completed working on the packaging for the enhanced water. In 2007, Bisleri International launched Bisleri Natural Mountain water, changing its familiar corporate colours from blue to aqua green, and will invest a large amount of money in marketing and advertising. Its mountain water is bottled at plants in Himachal and Uttaranchal, and the company is apparently looking to set up at least four more plants during the next year.

*Legal disputes between Danone and Wahaha are to be settled out of court after the French and Chinese governments intervened. Danone has now dropped legal proceedings against Wahaha in China, but cases in other countries are still pending. * The Wahaha Joint Venture Company was established in 1996 as a food and beverage joint venture company between the Hangzhou Wahaha Group, the largest beverage producer in China, and Danone, one of the world’s largest food conglomerates. The dispute between French Groupe Danone and Chinese Wahaha became public in April 2007. The main accusations concern Wahaha setting up a parallel production and sales operation for the same products made by the joint venture (JV), however this is a simplification of the issues involved. General Manager Zong Quinghou had been running the government-owned Hangzhou Wahaha Group Co Ltd since its foundation in 1987 and became an important minority shareholder when the company went from being a state-owned enterprise to a private venture. Since then, the joint venture with Danone has grown, accounting for 8% of Danone sales, contributing €100 million to the top line and in excess of 5% of total net profit. In 2006, Zong agreed to a deal worth almost €400 million, allowing Danone to buy a majority stake in the non-joint venture operations. However, Zong has since had regrets, as Danone has contended that the Wahaha trademark belongs to the joint venture. While Danone has been winning lawsuits outside China, Wahaha has won all cases settled by Chinese courts. The biggest blow to the French group has been the “patriotic” verdict handed down by the Hangzhou Arbitration Commission, stating the Wahaha trademark belonged to its Chinese partner. According to the panel ruling, the trademark had failed to be transferred to the venture in 1999 when the agreement signed by the two groups expired. Zong has had offshore assets of ten companies frozen, and faces at least 20 other lawsuits and arbitrators in five countries, including cases against his wife and daughter who run two of the main companies. What could have been considered a losing battle by some and a never-ending saga by others, may have reached a turning point in November when French President Nicolas Sarkozy visited China. During a presidential dinner in Beijing, Sarkozy met with Chinese President Hu Jintao and Danone Chairman Franck Riboud. In an attempt to encourage resolution, the two governments put pressure on both companies to work towards a speedy and amicable solution. This prompted Wahaha and Danone to release a joint statement where they agreed to suspend all legal proceedings and begin a more constructive dialogue. The consequences of the disagreements have so far cost Danone €19 million a month in sales. However, as soon as there was news of resolution, its shares went up 5%. The joint venture has in the past been used as an example for companies wishing to gain a foothold in the Chinese market. The example has now broadened to include some of the risks involved and will hopefully be completed with solutions on how to solve problems like those facing Danone and Wahaha.

Reuters reported that Axfood AB has decided to acquire Vi-butik in Solna Centrum. The takeover is expected to take place in April 2008, and the store will be converted into Hemkop. Axfood AB is one of the largest food retailers in Scandinavia listed on the stock market.

How long have you known about the Perrier brand? As long as I can remember, I’ve always known the Perrier brand, and especially those bottles. What do you think of when you hear the name 'Perrier'? Bubbles, sparkling, green, refreshment, thirst quenching, and also the fact that Perrier is good for your health. Not to mention: “Perrier, c’est fou!”. A few ads have really stuck with me, particularly the one with the lion by Jean-Paul Goude. Why did you decide to work with Perrier? Perrier is well known throughout the world and it’s also a French drink, just as Paul & Joe is a French brand. On top of that, Perrier evokes freshness, which is the key word for Paul & Joe. It’s the perfect combination. What do the two brands share? The sparkling, fresh, timeless aspect, a fusion of classic and modern styles ... the fact that you never get tired of them, that you always want them and they’re always renewing themselves. Perrier is a drink that people always need and always want, a bit like Paul & Joe. Why do you think these designs fit in with the Perrier brand? The animal drawings and the green colour code are synonymous with freshness and nature, so they fit in completely with people’s image of Paul & Joe and of Perrier. The partnership seemed fairly obvious to me. By adding gold, I wanted something that would clash, shock people, be right on the edge of ‘too much’, while still reflecting the current trend towards anything shiny and ostentatious. We’re entering a period of celebration, complete entertainment and exuberance, the opposite of the minimalist tendencies of 10 years ago. Why link Paul & Joe to an international brand like Perrier, which is distributed in more than 100 countries? Because I was very happy to see the Paul & Joe brand on cafe terraces around the world through these decorated bottles. It was a challenge, a real point of pride and a project that I loved from the start. How did it all start for the Paul & Joe brand? First of all, those are the names of my children, who are now 13 and 16. It started 10 years ago with a desire to create a different idea of men’s fashion – something that strayed from the typical codes at the time, which were grey, austere and minimalist. I revamped this boring style for men by adding fabrics, colour, prints and freshness. The brand moved into women’s fashion because of requests from customers. How has Paul & Joe contributed to the fashion world? Paul & Joe adds a different touch with its pretty fabrics, its clothes that are easy to wear every day, and never too serious. It’s a bit of a half and half approach – very feminine and yet masculine at the same time. It’s this style and freshness that has earned recognition for Paul & Joe in France and abroad. Apart from France, where is the brand the most recognised? The brand is well known in Asia, particularly in Japan. It’s also visible in England and in the US, where we have entered a partnership with the Target chain.