Health company Odwalla, owned by The Coca-Cola Company since 2001, has launched into the energy sector with a Tropical fruit juice blend combining pineapple, mango, guava and passion fruit plus extracts of yerba mate, green tea and guarana seed for concentration and vitality. The drink contains 1mg of ginseng plus vitamins B1 and B2 to increase energy metabolism and vitamin E to boost the immune system. "Odwalla Serious Energy is a different energy drink, with a blend of nature’s fruit juices," commented Nona Austin-King, Odwalla brand manager. "Odwalla Serious Energy is specially formulated to refuel and renew. It’s perfect for people who seek some get up and go, any time of the day." Especially formulated with nutrition and taste to refuel and renew, it is packed in 45cl (15.2fl oz) recyclable plastic bottles.

Surimi, more commonly found in the West as imitation crab meat, is made from pulverised fish meat that has a flexible texture when cooked. Flavours are generally savoury, but recently at Anuga, Belgian company Vichiunai launched Sweet Surimi Bites in a chocolate flavour, under its Vici Sweets Del Mare brand. The unusual surimi product is said to provide a healthy alternative to sweets as it contains less than 20% of the fat and half the calories of real chocolate. It also does not contain any flavour enhancers and is offered in a 200g pack.

If you’ve ever thought that Cadbury Schweppes was a cumbersome title, how about Dr Pepper Snapple Group? Better get used to it, because that is what the present Cadbury Schweppes Americas Beverages (CSAB) unit will be called, when it is spun off from Cadbury’s vast confectionery empire in 2008. Cadbury once hoped to sell CSAB outright to private equity groups, but the collapse of world debt markets meant that equity groups could no longer raise the necessary cash for a buyout - CSAB was valued by analysts at up to $16 billion. So instead Americas Beverages will be ‘demerged’ from the core confectionery business, with Cadbury stockholders receiving shares in the new enterprise, which will be floated on the New York Stock Exchange by the end of June. These latest details were revealed in December, when Cadbury Schweppes issued a trading update in advance of its year end results. The news from the group’s confectionery operations was good, with sales set to rise more than 6%. But the news from CSAB was mixed. Although beverage sales were expected to grow 4-5% over 2007, the unit’s profitability will be hit by a £30 million ($61 million) loss from the botched launch of the sports drink Accelerade. Chief Financial Officer Ken Hanna admitted the company ‘got it wrong’ with Accelerade, which will be placed in fewer retail outlets in future. While Dr Pepper and Snapple are key brands in CSAB’s portfolio (hence the tongue twisting name for the drinks business spin off), the unit makes a wide range of beverages including juice and water. CSAB’s market share is a relatively modest 17%, but it is America’s third biggest beverage group after Coca-Cola and PepsiCo.

The worldwide energy drinks market grew 17% last year to 3,431 million litres, according to the latest report from global food and beverage consultancy Zenith International. Although per capita consumption is still highest in Thailand, home of the energy drinks concept, the US now has the highest overall volume sales, driven by five top brands: Red Bull, Monster, Rockstar, Full Throttle from Coca-Cola and SoBe No Fear from PepsiCo. US consumers drank 990 million litres of energy drinks in 2006, 47% more than in 2005 and 200 million litres more than their Thai counterparts. “If the level of activity and product development in the US continues, it could represent 45% of worldwide volume in five years,” commented Zenith Research Director Gary Roethenbaugh. “We also expect to see double digit growth in East Europe and the Middle East, with Latin America, Australasia and West Europe making good gains too.” The increasing popularity of energy drinks, coupled with a widening choice of products, could raise Americans’ average consumption from the current 3 litres per person to 8 litres by 2011. However, this would still be less than Thailand, where consumption has remained about 11.5 litres per person for some years. Other nations in contention for a place among the top five energy drink consumers include Austria, Ireland, New Zealand, Slovenia and Kuwait. “Although US growth has been dominated by male-oriented energy drinks, manufacturers there are successfully tapping into a wider trend towards healthier products, and consumers are enjoying a new wave of all-natural energy drinks with multiple health benefits,” added Roethenbaugh. “Manufacturers are also extending their brands to appeal to a wider range of consumers.” Zenith expects each global region to generate growth over the coming years, with total volume increasing almost 15% annually to top 5,700 million litres in 2011. North American is likely to account for almost half this growth. Zenith’s report, Global Energy Drinks 2007, notes that the world’s energy drinks markets are at greatly varying stages of development. Asia Pacific, for example, reveals a very diverse picture that includes the mature markets of Thailand, Vietnam, Indonesia and Taiwan alongside the emerging markets of China and India. For the purposes of the study, Zenith’s definition of energy drinks excluded glucose-based products and sports drinks.

Using crystallisation technology to optimise the particle size of QDE 510, Ajinomoto has succeeded in creating an ingredient that is free flowing and dust free, which also offers fast dissolution. According to Ajinomoto, the dissolution time can be cut by as much as 30% using QDE 510 compared with the company’s standard aspartame powder; and dissolution times can be cut by 60% compared with aspartame from other suppliers. In addition, the company has recently conducted tests into consumer preferences for two diet colas: one sweetened with aspartame and the other with sucralose. Overall, the research found that participants preferred the cola with aspartame by a ratio of 61:39.

Both showed a decrease in the reddening of the participants’ skin, because of their ability to quench Reactive Oxygen Species (ROS), indicating protection from UV induced damage. However, the group that ingested synthetic lycopene showed only 25% reduction in redness, where as the groups ingesting Lyc-O-Mato and a Lyc-O-Mato drink showed superior protection with 39% and 50% reduction respectively. In a second study, carried out at the Institute of Experimental Dermatology, University of Witten/Herdecke, two antioxidant supplement combinations containing different carotenoid mixes, tocopherol and selenium, were tested for their impact on skin structure and health. Although both antioxidant supplement combinations showed an increase in skin density, thickness, skin softness and reduced scaling, the oral supplement containing lutein and lycopene showed slightly better results, indicating the importance of combining antioxidants inimproving skin health and beauty.

As another year in the water cooler industry draws to a close, cooler innovation reflects on the year that was and looks ahead to 2008. Will the environment remain top of the agenda? Which geographical and sector markets will be fastest growing? Will new product launches continue to focus on improved and easier methods of sanitisation? And, most importantly, will next summer bring us the hot, dry weather that Western Europe in 2007 didn't. The questions on everyone's lips might be difficult to answer with absolute certainty, but what you can be sure of at this time of year is the prevalence of the retrospective end of year review. Three water cooler companies tell Deputy Editor Medina Bailey how the past 12 months shaped up and speculate about what 2008 has in store. Questions 1. How would you sum up 2007? 2. What trends or issues have characterised the cooler industry over the past year? 3. What was your best selling product or highlight? 4. Is there anything you would have done differently over the past 12 months? 5. What is next for your company in 2008? 6. Which issues do you think will be high on next yearís agenda for the cooler industry? 7. What would your one wish for 2008 be? Answers Ebac Chairman John Elliot MBE: "We have seen business startups who have entered the market in the last year achieve phenomenal success, even though the market had been described as static. It has become more competitive, but it has also been an exciting year." "We have noticed a shift towards POU coolers. Distributors are looking at ways of growing their business and accessing parts of the market they are not already reaching and end customers are looking for a more cost efficient, environmentally friendly and convenient cooler. We have also seen a greater number of smaller customers come to us and tell us they hadnít realised that Ebac was accessible to them as they were purchasing lower volumes, now they know differently! We have worked with many smaller companies and been able to give them very competitive prices and our flexible payment terms are designed specifically for smaller firms." "Without a doubt the FMax has been our best selling product. Our customers have described the FMax as the most complete water cooler ever and we definitely agree. It has many advantages in the bottled cooler market due to its high burst rate, energy efficient hot tank and patented cassette WaterTrail. After its launch earlier this year, the FMax has quickly established itself as a core product within our range and customers such as asNestlé Waters Direct, Dar Natury in Poland, Henniez of Switzerland and Rainbow in Greece all offer the model to their clients. The FMax represents 30% of our new business which has been an incredible achievement for a product which was launched less than a year ago." "I think we could have helped to change the perception that Ebac coolers are expensive and aimed at larger companies, when in fact the smaller company can reap all the same rewards and benefit from competitive pricing. If we could have changed the weather and made people thirstier we would have done that too." "We will be launching a new product which is set to revolutionise the POU market. We canít say too much about it yet but it is something that has never been seen before and will take simplicity, hygiene and sanitisation to the next level. An official launch will take place in the spring." "Definitely the opportunities of the emerging markets - Eastern and continental Europe and Japan. And not forgetting breaking into the home cooler market." "We work very closely with business startups in this industry and I would wish that they all have a very successful 2008." International Packaging Innovations (IPI) Vice President of Sales and Marketing Alex Reby: "For IPI , 2007 was a year of introduction. Purelock, our product that combines the 3 gallon bag of water with the cooler top converter, was introduced to the market in the US in late August and the results have been solid. Our first partner was able to secure over 100 new bottled water and cooler rental accounts in three months by offering the Purelock. While 100 may not be huge, the market this company services is small and those accounts increased total customer base by about 5% in those 90 days. In October, we travelled to Poland for the EBWA show with hopes of meeting bottlers and distributors in the European marketplace that would like to partner with us to offer a unique product to their customers. We believe that it offers convenience to the consumer, is more environmentally friendly than 3 and 5 gallon bottles, and can help improve margins for bottlers." "Sanitisation, the environment and the reliability of the cooler and its parts." "Purelock. Our highlights have been contracting with two US bottlers this year, with two more American and one international one in the pipeline. The EBWA show introduced us to numerous bottlers in Europe and we look forward to partnering with them to launch the product overseas. We also won the cooler innovation award for "Best New Cooler Product" in 2007. That was definitely a highlight!" "The product was launched as a test programme in the US with the aim of determining customer reactions to the new package and find out how easy it would be to incorporate Purelock into existing routes from a logistical standpoint. Consumers reported that they would like to see the bags tinted or feature labelling. If we could do it all over again, we would have completed the package before introduction. The good news is that 82% of new consumers preferred Purelock and the converter to their existing bottles, and thatís with no aesthetics or labelling, so we anticipate that that number will rise." "We are opening operations with bottling partners in several US states and internationally, as well as seeking European partners and believe that the benefits of carrying Purelock will truly enhance the businesses." "Environmental impact and reliability are likely to be continuing trends." "From a business prospective, to sign agreements with 10 to 12 new partners to produce and distribute Purelock in their areas." Vivreau Managing Director Stephen Charles: "2007 has been a fantastic year for Vivreau. Our research and development team have pulled out all the stops to enable us to launch two new ranges of systems, VR3000 and V20. The VR3000 has opened up the vending market, enabling distributors and vending companies to offer Vivreau to their clients. The response we have received from the trial units and test marketing has been beyond our expectations and we are feeling extremely positive about the future of this product. "Effectively completing the jigsaw with the V20, we can now offer a complete range of innovative still, sparkling and hot water systems for the whole spectrum of environments, meeting the expectations and demands of clients in any public and private industry sector. We have once again had an exceptional year with our direct sales business and are proud to say that we now supply to approximately 60% of the top 100 UK companies." "Environmental issues have been a key factor. World economy issues will always dictate the budgets of our clients, so cost factors continued to be an issue, although Vivreau clients usually accept that it is worth spending a little more for a high quality product and superior after sales service." "If I were to pick one product, it would most certainly be our Table Water Bottling system. Although it will never be our highest volume seller, as customers tend not to install more than one or two systems in a building, it is the perfect product in the current climate where companies are looking at their carbon footprints and other green initiatives."What has been so refreshing for us is that when we designed the whole concept of the system 17 years ago, our product was dismissed by the industry and the media as just a cheap imitation of mineral water. Finally the media, business and the general public have come to realise that we are not just a 'bunch of green eco warriors'. The demand for our bottling system has escalated and although there are a couple of other alternative systems on the market, none of them are able to match the quality, reliability and efficiency of ours."We are not complacent, however, and through investing in research and development, efficient budgeting and a well structured marketing plan, we aim to maintain our market leading position in the industry." "Even with the benefit of hindsight, I do not think we would have done things particularly differently. Vivreau has always been about the more cautious approach ensuring that everything we do enables us to provide a high quality product and service." "Now the technical development team have done their bit with the VR3000 and V20, it is now down to the sales team to realise the huge potential of these products and I am confident that they will achieve our goals. "We have also appointed a distributor for the Irish market and are looking forward to replicating the success we have in the UK right across Ireland. We will be exhibiting at Hospitality Ireland in Dublin in February where we will be officially launching Vivreau Ireland." "The trend for more environmentally products is increasing on a daily basis and I think our industry, as with most industries, will be under more and more pressure to take these issues more seriously, not only from the government but also from the private sector. Our corporate clients are demanding greater accountability and suppliers will have to be seen to be demonstrating their green credentials for their own companies, in addition to just offering clients more environmentally friendly solutions. Rest assured that, as in the past, we will be at the forefront of future developments in this area." "A more tolerant world would be a refreshing start and a better return from my Paddy Power account would always be nice!"

Established in 1950, the nonprofit Almond Board of California represents California’s almond growers and handlers and supports food quality and safety initiatives along with nutrition, production and environment research. At Anuga, CEO Richard Waycott highlighted the improving global market for almonds: "The 6,000 growers in almonds help with weight loss in the California region, and have until now supplied 80% of the world’s almonds. Production is expected to reach an all-time high of 603,000 metric tonnes by the end of 2007 in comparison to just 317,000 tonnes in 2000. "Health benefits such as lowering cholesterol, improving blood sugar and insulin levels and most importantly the satiety effect of almonds – which can help with weight management – are a result of 12 years’ investment in science by the Board. A recent study at Purdue University in the US established that women who consumed 344 calories worth of almonds each day were taking in only 77 calories due to the satiety effect of the almonds and the fibre content, which prevents the fat being fully absorbed." "This study further demonstrates that almonds are not only nutritious, they can be satisfying and less filling," said Dr Tony Leeds, senior lecturer in nutrition at Kings College London, UK. A 28g, 160 calorie handful of almonds is said to be an excellent source of vitamin E, magnesium, protein and fibre, and offers potassium, calcium, phosphorous, iron and monounsaturated fat. For this reason, almonds are also increasingly used by developers of breakfast smoothies as well as in power bars for energy on-the-go.

Frank Harding OBE, formally Technical Director at the England & Wales Milk Marketing Board, examines recent changes. It was recognised in the 1930s, that alkaline phosphatase (ALP), an enzyme naturally present in all milks, is inactivated at time temperature conditions slightly higher than those needed to kill Mycobacterium tuberculosis and most other pathogens in milk (71.7ºC/15seconds). These conditions are used commercially to pasteurise milk (HTST pasteurisation). Test methods based on ALP measurement were developed in order to demonstrate that milk has been correctly pasteurised. Tests developed for ALP measurement in the 1930s and used for many years were based on colorimetric methods of analysis. Such tests are only semi-quantitative and relatively insensitive, with a limit of detection of about 0.1% raw milk. In 1990, Rocco<1> published the results of a collaborative trial of a fluorimetric method, which was linear over a wide range of ALP values, quantitative, precise and sensitive to raw milk levels below 0.01%. The method, named Fluorophos ALP, was developed and marketed by Advanced Instruments, Inc., USA. In a number of studies the Fluorophos has been compared with existing, less sensitive colorimetric reference methods and a relationship established around the 0.1% raw milk cut off point. Table 1: Determination of ALP by AOAC and Fluorophos collaborative study (Rocco <1>) using cow’s milk in the USA. Milk Type % of raw milk Fluorophos Mean value mU/L AOACMean value µg phenol/ml Whole 0.05 256.2 0.83 0.10 494.6 1.46 0.20 960.2 2.70 Skim milk 0.05 262.3 0.60 0.10 507.6 1.02 0.20 994.6 2.14 Chocolate 0.05 262.8 0.38 0.10 521.3 0.78 0.20 1020.2 1.40 Lechner <2> studied the Fluorophos method using cow’s milk in Germany. Table 2: Study by Lechner % raw milk in pasteurised milk FluorophosmU/l 0.1 540 0.2 1026 0.3 1455 Langridge<3> summarised the results of a study involving 22 laboratories testing milk by Fluorophos, Aschaffenburg Mullen and the colourimetric EU reference method in use at that time. A comparison of the Fluorophos and EU colourimetric method based on results of blind duplicate samples is given below. Table 3: Comparison of EU (Rocco) method and Fluorophos (Langridge) using cow’s milk sourced in the UK raw milk in pasteurised milk Fluorophos methodmU/L EU methodµg phenol /ml Sample A 0.05% 257.4 1.26 Sample B 257.4 0.94 Sample A 0.10% 458.8 2.14 Sample B 0.20% 498.3 1.49 Sample A 0.15% 693.7 1.80 Sample B 713.5 2.08 Sample A 0.20% 911.6 2.29 Sample B 851.8 2.44 In the above studies, a Fluorophos value of 500mU/l was demonstrated to accurately assess the presence of un-pasteurised milk at the statutory cut off point (about 0.1% raw milk). A study using French milk however gave different values for 0.1% raw milk in pasteurised milk: Table 4: October 2005 Study by EU reference laboratory (afssa). % raw milk IDF 63: 1970Colorimetric determinationµg phenol/ml IDF 155-1: 2001(Fluorimetric method)mU/l 0.05 1.5 - 0.1 3.0 939 Where comparisons were made with colourimetric methods the variability of the colourimetric methods has been cited as the reason for poor agreement. Changes to ALP testing within the EU In May 2007 the EU approved the fluorimetric method (ISO 11816-1: IDF 155-1) as the “Official reference” method for alkaline phosphatase for applications related to EU sanitary regulations. The EU now requires that any other method being considered for use is validated against the fluorimetric method and lowered the statutory level for ALP in pasteurised milk from 500 to 350mU/l. This change means that ALP in milk is now defined as the result obtained when ISO 11816-1: IDF 155-1, the fluorimetric method, is applied. **Comparison of flourophos with other test methods **Proficiency studies by an independent company in the UK have shown a significant bias between the Fluorophos and Charm methods of assessing ALP activity. Comparison of the mean values obtained on the same samples tested under the Quality Management “Proficiency Testing Scheme” Date Test material Fluorophos mean value Number of samples tested Charm mean value Number of samples tested Difference Charm - Fluorophos Jan 05 31B105 173.91 189 306 40 187 July 05 31A111 242.61 157 261.3 52 19 July 05 31B111 80.62 155 95.04 52 15 Oct 05 31A144 472.89 258 768.29 52 296 Oct 05 31B144 447.35 256 997.65 52 550 Jan 06 31A177 80.41 161 123.36 35 43 Jan 06 31B117 134.82 161 234.47 34 100 Mean of the means for all samples 222.94 398.0 175 (44%)higher than Fluorophos The EU reference laboratory (afssa, Paris, France) compared Charm (NovaLum) and Fluorophos and also showed that Charm is positively biased when compared with Fluorophos. (see chart above right) Scintu et al.<4> has compared the EU method with the Fluorophos for Ewes milk and showed that the R and r values were close to those quoted for cow’s milk. Recommendation It is recommended that the fluorimetric method is now adopted internationally as the reference method for measurement of Alkaline Phosphatase in pasteurised dairy products. References: <1>Rocco; J.ASSOC. OFF. ANAL. CHEM. Vol. 73 No 6. 1990 <2>Lechner & Ostertag Deutche Milchwirtschaft 23 (1146 – 1149) 1993. <3>Langridge International Food Hygiene 10 (3) 31-33 1999) <4>Scintu et al (J Food Protection, Vl63. No 9, 2000 Pages 1258-1261)

Clearly Canadian recently hit a turbulent time with its business, but the company is implementing changes to win back consumer loyalty and investor confidence. Backed up by a strong management team, Clearly Canadian CEO Brent Lokash is adamant that the Vancouver-based bottler can complete a successful turnaround. In 2006, Clearly Canadian laid the foundations for revival by strengthening its management team, implementing a fresh marketing strategy, boosting its cash position and cancelling debt. With a clean balance sheet, the company’s sparkling, flavoured waters brand was relaunched in a design not too dissimilar to how the brand originally looked nearly 20 years ago. Excitement has been reignited by trading on the heritage of the brand and by developing a new, humanitarian partnership with the Global Water Initiative. In March 2007, the company developed new products, including the Clearly Canadian line of enhanced waters consisting of dailyENERGY, dailyHYDRATION and dailyVITAMIN. In November, the company secured distribution for its latest range through the US Midwestern convenience retailer Casey’s General Stores. There has also been a focus on expansion of its distribution network and improved cross-selling. A recovery is now in full swing and Clearly Canadian is poised for a return to revenue growth for 2007. Platform for growth## Clearly Canadian has also been busy repositioning itself as a combined food and beverage business, delivering healthy, natural and organic products. This reinvention of the business has been helped along by two key acquisitions: snack food company DMR Food Corp and organic baby food maker My Organic Baby. The moves are already bearing fruit and have allowed the company to withstand bumpy results in its core beverage activities, which were dented by lower than expected summer sales. Despite weak beverage sales in the third quarter of 2007, the company reported a 64% leap in revenue to $3.3m due to growth from Clearly Canadian’s healthy snack and organic baby food businesses (acquired in February and May respectively). That said, Clearly Canadian finished the quarter with a net loss of about $1.4m – more than double its loss in the same period of 2006. Meanwhile, Clearly Canadian’s consolidated revenue in the first nine months of 2007 was up 22% at $7.8m, with the turnover of DMR Food Corp increasing 48% on a standalone basis and My Organic Baby growing almost 340%. But revenue from the company’s beverage division, which produces its signature line of sparkling, flavoured waters and recently added still enhanced waters, fell 38% over the same period. The company’s stated goal is to place its My Organic Baby product in over 1,600 retail stores by the end of 2008. Brent Lokash said: “We're very pleased that the company now has positive revenue growth for the first time in many years. While this growth is derived from our acquisitions, both of these divisions are demonstrating strong internal growth rates. We're addressing the decline in our beverage sales through the introduction of new products, such as our new, natural enhanced waters and our new 1-litre format of our core sparkling, flavoured waters.” There's positive distribution news, with the company recently securing distribution for its natural enhanced waters with 7-Eleven and Couche-Tard convenience store chains in Canada. But it will be the US market that will make or break any prospect of a complete business recovery. In the 1990s, a very successful era for the company, about 90% of Clearly Canadian was traded in the US. Clearly Canadian continues to enhance its US distribution network by adding distributors. The company recently entered into partnerships with Haralambos Beverage Company and Big Geyser to distribute its eponymous sparkling, flavoured water. The company has announced distribution agreements with Cencal Beverage, Valley Wide Beverage, Eastern Sierra Wholesale, Benitas Distribution, Maita Distribution and GBL Distributing to build its California distribution network. Recruiting expertise## Significantly, Clearly Canadian has hired INOV8 Beverage Company led by Mike Weinstein, former CEO of Snapple, and Brian O’Byrne, former CEO of Yoo-Hoo/Orangina. Under Weinstein’s leadership, Snapple grew from a declining brand valued at $300m to a $1.4bn business within three years – a turnaround that Clearly Canadian is obviously hoping to emulate. Both men now face the challenge of achieving rapid, yet sustainable growth for the company’s flagship brand of sparkling, flavoured water. A more recent arrival is Bobby Genovese, whose BG Capital Group became Clearly Canadian’s controlling shareholder in 2005. Since 8 November 2007, Genovese has taken a more active role in the business as Chairman of the Clearly Canadian Board. The company also recently recruited David Reingold, the former majority owner of DMR Food Corporation as its new President. Marketing blitz## Clearly Canadian already enjoys extremely high brand recognition in the US for its flagship Clearly Canadian brand. The company diversification into new, healthy snack and baby food product lines, along with the development of new drinks products, can be used to leverage the Clearly Canadian brand name and distribution network further. Not prepared to rest on its laurels, Clearly Canadian has pursued an aggressive marketing strategy to enhance its brand value. Exclusive endorsements include a three-year deal with basketball superstar Steve Nash to serve as the company’s ambassador, and a one-year agreement with Justin Morneau, a baseball star selected as the American League’s most valuable player in 2006. These appointments will become a focal point of upcoming sales and marketing initiatives . The company has also reminded consumers about the heritage of the Clearly Canadian brand at the same time as the modern thinking it has embraced, by creating an interactive and fun online forum. In celebration of a loyal fan base who love to reminisce about the good old days, the company encouraged consumers to visit the website to share stories and photos for a chance to win some great prizes. Future outlook## The Clearly Canadian brand has exceptionally strong brand recognition throughout North America and beyond. Leveraging the brand name into new businesses, manufacturing ‘better for you’ products should lead to increased distribution and sales across the company’s product portfolio. In the meantime, Lokash has confirmed that he will continue to steer the business towards the development of innovative products and strategic acquisitions to drive growth and profitability in the future. With financing from institutional investors and a convertible debenture from the acquisitions of DMR Food Corporation and My Organic Baby, the company has over $10m in working capital to support the execution of its business plan. While the company is not certain when it will move into profitability, the results of new accounts being handled, a new sales force being hired and more money spent on marketing should boost growth in the first quarter of 2008. Despite management optimism, there are a number of risks associated with the business and Clearly Canadian is still incurring losses. Indeed, at the end of 2006, the company had accumulated debts of more than $77m. Lokash told bottledwaterworld: “The company has travelled so far in a short period of time. It hasn’t been in a better position in the past five years. All money is being directed towards sales and marketing activities. There's a clear commitment to growth over the next few years.” “The company is in the early stages of a turnaround and we can't be certain when it will become profitable,” says Lisa Springer, a market analyst with Beacon Equity Research. “The alternative beverage market is competitive and highly fragmented. Although Clearly Canadian has a strong brand name, similar product offerings by competitors could adversely impact the company’s sales volume. Moreover, some rivals have far greater financial, distribution and marketing muscle.” That said, Springer remains positive about the value of the company in the long term, concluding: “Clearly Canadian is set to increase revenues substantially faster than peers over the next five years. We expect the company will produce long-term revenue growth exceeding 25% annually.” Interview with Brent Lokash, CEO## To what extent is the Clearly Canadian success story about a renaissance? The Clearly Canadian success story is absolutely about a renaissance. We have established a remarkably powerful relationship with consumers across the globe. These consumers are well aware and very fond of both our brand and our products. We have already built the trust and loyalty of a strong base of consumers who have great interest in any new innovations that come from Clearly Canadian. The evolution of change in packaging for Clearly Canadian is fascinating to behold. Why was a return to the brand’s roots chosen? Packaging decisions made by our company in the past – largely just responding to the cultural trends at the time – changed our product to the point where our loyal following of consumers didn't even recognise us any more. Returning to a clear glass bottle, along with our traditional logo and simple fruit depictions, was the best possible way to reconnect with our consumers who had been longing for our product. Who has helped play a role in the company’s return to winning ways? There have been many partners that have played a role in the relaunch and rebirth of the brand, from our largest distributors Big Geyser, Haralambos and Burke to many other distributors; our bottlers; flavour houses; and the INOV8 Beverage Company. Everything has really been a team effort. What lessons can be learned from failings in the past? I think what went wrong with Clearly Canadian was that the company didn’t adapt to adjusting costs and distribution. The company tried to control distribution rather than recognise that the industry is controlled largely by a small group of companies that have built up distribution over a number of years, presenting them with a phenomenal advantage in the marketplace. The company became a victim of its own success and chose to go it alone rather than take partners on board. Can you reveal more details about the humanitarian partnership with the Global Water Initiative? We felt that this was a particularly suitable partnership for Clearly Canadian due to the nature of our core beverage business. Because we are in the business of providing water based refreshments within Canada and abroad, we felt it would be appropriate to assist those in developing nations - many of whom do not even have access to this most basic need. We recognised that way too many people in this world suffer and perish due to the fact that they simply do not have access to safe water supplies, which is something we take for granted on a daily basis. This is the key reason for Clearly Canadian getting involved. We've made a commitment to complete 20 projects by 2010 and are well on our way to achieving this goal. In May 2007, members of Clearly Canadian were able to witness this first-hand. Can you discuss the success of Clearly Canadian dailyENERGY, dailyHYDRATION and dailyVITAMIN waters? Our new, enhanced waters have been received well in the market. We've secured about 20 or so new distributors across North America, a few chains and are continuing to increase distribution from month to month. We have received phenomenal interest from the beverage community about our new line and think we offer a fairly unique proposition with a well recognised and trusted name. Will the company’s water ranges address increasing functional benefits in the future? We're consistently examining future opportunities and new innovations that would be a suitable addition to the Clearly Canadian family of beverages. We're also looking into various new occasion-based offerings that we think will continue to drive distribution in different channels. About Brent Lokash## Clearly Canadian CEO Brent Lokash is responsible for all facets of Clearly Canadian’s corporate operations. He has considerable experience in corporate financing, mergers and acquisitions and was earlier associated with BG Capital. He began his career in commercial law and subsequently focused on providing business consulting services to public and private companies seeking acquisitions and financings. He is a member in good standing of the Law Society of British Columbia. Company background## Clearly Canadian was founded in 1988. The company has produced innovative beverages that have captured the imagination of consumers. Clearly Canadian has helped pioneer a segment of premium alternative drinks now called the New Age Beverage category and has proven itself as a consistent beverage innovator from the launch of its first product line, Clearly Canadian Original sparkling flavoured water. It has sold over two billion bottles of its core product since inception. Clearly Canadian has also been one of the first to market in beverage sub-categories including energy drinks (Battery), vitamin enhanced water (Reebok Fitness Water) and oxygenated water (Clearly Canadian O+2). The company recently introduced Clearly Canadian dailyENERGY, dailyVITAMIN and dailyHydrationYDRATION natural enhanced waters.

The 3D Regeneo formula contains aloe vera, antioxidants, minerals and vitamins. It was created by scientists at Wimm-Bill-Dann’s Research and Development Centre together with its Swiss colleagues. The recipe of Neo Beauty dairy drink provides a healing, strengthening and regenerating effect on the skin, hair and nails. The effectiveness of Neo Beauty has been confirmed by clinical tests. The range consists of a functional probiotic drink and a drinking yogurt in a variety of flavours, both with aloe vera. “The launch of Neo Beauty demonstrates once again that Wimm-Bill-Dann is the leader among health food producers in Russia,” said Director for Marketing and Innovation, Grant Winterton. “We believe that the market for functional products in Russia will grow in value terms by around 40-50% per year over the next three years, as consumers seek tasty and healthy products that help them manage busy lifestyles.”

California-based Lifeline Food has launched Lifetime Body Smart for Women, claimed to be the only cheese specifically formulated for the daily health and diet needs of women. Available in three varieties – Jalapeño Jack, Sharp Cheddar and Swiss – a 1oz portion contains 47 calories and 1.7g fat. In addition, the cheese is fortified with calcium, folic acid and magnesium, three nutrients that are recognised as being very important to female health and wellness. Lifetime Body Smart for Women is a participant in the Good Deed Foundation. A portion of the proceeds from every sale of the cheese is donated to this organisation that gives 100% of its profits after taxes to community organisations that benefit women, children and the environment.