The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
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- Red Bull’s bid for sugar-freedom
Launched in 2003, and containing just eight calories a can, Sugarfree accounts for almost one in five cans of Red Bull sold. Red Bull trade marketing manager Caroline Jacomb said: “Health and well-being will be the most important consumer issue over the next five years. More than one in four adults in the UK are trying to lose weight ‘most of the time’, and diet variants are taking an ever increasing share over their regular counterparts, as a drink on its own and as a mixer. “Consumers who actively seek out Red Bull Sugarfree will switch to a less profitable diet soft drink if they can’t see what they’re looking for, or if Red Bull is out of stock, so ensuring that it's available and visible is key to your profits.” According to Red Bull UK, since the launch of Sugarfree, 25% of new buyers of the Red Bull brand have been Sugarfree buyers, and the variant now accounts for about 15% of Red Bull UK total sales.
- Montevideo gets eco-truck fleet
*Montevideo Refrescos (Monresa), a Coca-Cola subsidiary in Uruguay, is operating a fleet of 30 electric mini-vans in a pilot programme with Californian “alternative transportation company” ZAP (Zero Air Pollution). * The three-wheeled ZAP Xebra vans are being used to make beverage deliveries in the crowded and often narrow streets in the heart of Montevideo, capital of Uruguay. Regular delivery trucks are not easily manoeuvred and are environmentally unfriendly in the traffic-jammed inner city – as well as being expensive to operate. The nimble Xebras, however, are quiet and pollution-free, and can weave their way into places other commercial vehicles cannot reach. The Montevideo mini-vans are fitted with a new, super-efficient motor, which uses about 80% less energy than its predecessor. If this pilot programme is successful, Coke says it may introduce the electric vans in other major cities around the word where pollution and traffic congestion are a problem. “We want to create an alternative way for goods and services to be transported in urban areas,” said Fernando Cancela, Director of International Affairs for ZAP. Urban deliveries are becoming more and more challenging with traffic congestion and parking shortages. “These ZAP Xebras will help Coca-Cola create a new distribution system that will be better for our cities as well as for their bottom line.” Monresa Distribution Manager Jorge Apesetche said the project with ZAP was in line with Coke’s commitment to the environment: “Our commitment is not just good corporate responsibility, it’s good business,” he added. “The bottom line is that our business depends on the health and sustainability of our planet and the natural resources that we all share. ZAP Xebras will help improve our distribution operations, save money, time and the environment.”
- Glaceau water line turns up Down Under
CCA launched Glaceau on the Australian market in February, on the same day it announced impressive financial results for 2007. Sales by the Australian bottler – which also distributes Coca-Cola in New Zealand, Indonesia, Papua New Guinea and Fiji – rose a modest 1.9% to A$4.52 billion (US$4.15 billion) last year. But CCA’s net profit before one-time charges jumped 13.2% to A$366.3 million (US$336.7 million), beating the company’s own forecast of 10-11% growth. Managing Director Terry Davis said the increase came from, “the strong performance of the Australian and New Zealand beverages business, excellent results from Indonesia, and a solid contribution from our emerging alcohol business.” Global expansion CCA is expanding its beverage portfolio further than other Coke anchor bottlers around the world, by diversifying into alcoholic as well as non-alcoholic beverages. The company went into partnership with global beer giant SABMiller in August 2006, setting up a 50/50 joint venture called Pacific Beverages. The first purpose of Pacific Beverages was to serve as Australian distributor for three premium imported SABMiller beers: Peroni Nastro Azzurro, Miller Genuine Draft and Pilsner Urquell. However, the partners made clear they had larger designs on the Australian market, including domestic production. In November 2006, Pacific Beverages clinched an agreement with global spirits group Maxxium to become the exclusive Australian distributor of premium Maxxium brands, including Jim Beam bourbon, Remy Martin cognac and Absolut vodka. In December 2007, Pacific Beverages also acquired Bluetongue, a fast-growing Australian 'boutique' brewery, with annual production capacity of up to five million litres. The partners pledged to expand sales and distribution of the four-year-old Bluetongue beer brand. Now CCA and SABMiller have revealed plans to build a sophisticated new brewery, increasing production capacity not only for Bluetongue, but for other beer brands. The A$120 million (US$110.3 million) plant will be constructed close to the existing Bluetongue brewery in Newcastle, New South Wales. Davis said: “We're looking forward to building a state-of-the-art facility with our partners SABMiller who, as one of the world’s largest brewers, will bring great brewing technology and expertise to our Australian market.” “A local brewing facility will give us the option to expand our portfolio, and to continue providing consumers with top quality products,” added Ari Mervis, MD of SABMiller’s Asian division.
- New chocolate cherry cheddar
*The new cheese with the tongue twisting ingredients has been produced by The Cheese Company. The product name is Tickler with Love and has been designed with Valentine’s Day and Mothers’ Day in mind. * Tickler is a novel combination of flavours - extra mature cheddar has been infused with Belgian chocolate covered cherries. The company hopes that adventurous extra mature fans, keen to spice up their flavour options during the season, will be biting into the innovative cheese. The Cheese company has also launched the product in order to bring new consumers to the main Tickler brand. The cheddar is an example of Tickler's variety in flavour profiles and focus is on experience rather than simply cheese strength.
- Allpure management buyout
*The Managing Director of Allpure Filters has announced that the UK company has split from Hydralectric Appliance and is now under his sole control. * Don Bradford completed the management buyout in late October 2007 after the opportunity to purchase Allpure arose. Following the amicable parting, Allpure moved from the site that it shared with Hydralectric to new premises in Hampshire. According to Bradford, the buyout will enable the filter firm to establish its own identity, instead of occupying a small role in a larger company. It will continue to be the official European distributor of Omnipure water filters, as well as offering Doulton filters, John Guest fittings and additional products such as tubing, valves and accessories for the POU and vending industries. All of Allpure’s employees will be remaining with the company, including the Managing Director’s son Darren (below left), who will be taking charge of the UK market, while Don Bradford will be working closely alongside Allpure France to focus on the rest of Europe.
- Solmaya Brands launches Latin American flavours
*SolMaya Brands has launched a new line of Latin-flavoured, ready to drink dairy beverages at the recent Expo Comida Latina/Cultural Food Expo in New York City – the industry’s largest Hispanic food and beverage show in the US. * The range includes Mexican Style Horchata, Horchata Sabor de Morro, Morir Sonando/Orange Jubilee and Avena/Oatmeal Shake. SolMaya Brands is unique in that it's the only brand, both in the US and Latin America, that has these four nostalgic Latin American flavours in the convenience of modern, shelf-stable, ready to drink packaging (9.5oz glass bottles and 12oz aluminium cans). SolMaya Brands President and CEO Fernando Oswaldo Leonzo said: “I believe we hit a home run at this show. Many of the retailers and distributors were able to learn, first hand, just how delicious and unique our products are. Some attendees told us it looks like a success in the making; a few said this could be the new Snapple of the Hispanic market. “Due to the realignment of many successful beverage brands in the US during the past year, many beverage distributors now have room on their trucks and are looking for the next great thing. If this show is any indication of what’s in store for SolMaya’s future, we're destined to be that next great success!”
- 'Bottle vs tap' is really no contest
Water UK, which represents all UK water and wastewater service suppliers at a national and European level, and which provides a positive framework for the water industry to engage with government, regulators, stakeholder organisations and the public, has waded into the current bottled water debate. The current spate of programmes and articles about the fall from grace of bottled water points to one of the most remarkable reversals in modern consumer marketing. Just two or three years ago, sales looked set to continue a decade of spectacular growth driven by increasing interest in health, an expanding economy and clever promotion. Now, the first evidence of falling sales has marked the turn. What happened? The truth is that, for most people, most of the time, tap is the nation's choice and always has been. It was always questionable to compare it with a consumer product-child of its time that danced like a beachball on a fountain of lifestyle froth and celebrity. Now the light has dawned and reveals, not shiny high status people or limpid mountain streams, but a networked public service that benefits everyone. In place of froth, we have quality, reliability and value for money; in place of 'lifestyle' advertising, we have concern for the environment. And just as generations ago, the public water service brought a permanent improvement in the national health, we now see that it can play a big part in helping tackle climate change. Of course, it makes sense to provide mains water rather than bottled in schools, hospitals, factories, offices and restaurants. Of course, transporting water halfway around the world and lugging heavy litres from the supermarket each week makes very little sense. Accepting all this, is it really right to demonise bottled water? High quality water is good for you whatever its source. Bottled water has a vital role if a mains supply is interrupted. And aren't bottled brands better partners for on-the-move lifestyles than sweet, fizzy drinks? For most people, most of the time, UK tap water is the right choice for quality, health and the environment. But let's not get carried way.
- Lucozade Alert set for launch
Lucozade, the UK’s number one Sports and Energy drink, is set to take the stimulation drinks category by storm with the launch of Lucozade Alert – an exciting category innovation that promises to generate huge consumer interest and presents retailers with a great opportunity to drive incremental sales.* Lucozade Alert is the first stimulation drink from the makers of Lucozade and is designed to provide mental as opposed to physical stimulation. It contains caffeine to sharpen mental performance and stimulate the mind fast.** This latest innovation from the makers of Lucozade has been developed in conjunction with office workers to deliver a great-tasting stimulation drink designed to combat energy lulls at work. The newcomer, which should be stocked as part of the Lucozade Sport and Energy drinks range, promises to drive incremental revenue* and maximise retailer profits. The new drink’s refreshing Lemon Zing flavour and low calorie content is sure to be a hit with consumers who increasingly demand great-tasting low calorie products. April launch Lucozade Alert is available from April in 250ml bottles and 4 x 250ml multipacks. It will benefit from a huge £4 million integrated marketing campaign, including nationwide sampling, press, online, in-store promotional activity, a dedicated website and a heavyweight outdoor campaign. Jenny Hall, Lucozade Alert brand manager, said: “Lucozade Alert is a great-tasting low calorie stimulation product that meets an unfulfilled gap in the market. As we know, a long, hard day at the office can really take its toll, so people will always welcome a refreshing drink that helps wake up tired minds and boost mental performance at work. Initial consumer response has been fantastic, showing high levels of excitement as well as strong purchase intent.” \***| “Retailers looking to profit should stock up from April and take advantage of this fantastic consumer proposition from the UK’s number one Sports and Energy drink, which is backed by a £4m marketing campaign.” **MMR Quant Research, Sept 2007. **Lucozade Alert contains 32mg of caffeine per 100ml, and 80mg of caffeine per serving. \**|MMR Quant Research Sept 2007 confirmed fantastic consumer response, exceeding research norms in overall appeal, taste and purchase intent.
- Private equity company invests in Springs of Eden
Och-Ziff Capital Management Group is investing €61 million for a 28% share of Eden Springs’ European home and office delivery venture, Springs of Eden. The deal represents a company value of €218 million, which is 145% higher than Eden’s value on the stock exchange. Responsible for distributing 5 gallon (19 litres) bottles across Europe, Springs of Eden will be issuing new shares at a value of 20% of its share capital, while Och-Ziff will buy a further 8% of the company from Eden Springs. The private equity firm, which manages assets of over $30 billion, is also believed to have loaned Eden Springs €20 million. The agreement comes after Eden Springs’ announcement last year to buy out partner Groupe Danone’s 58% share in their joint venture, Danone Springs of Eden.
- Britvic's Drench in €3.2m marketing campaign
*UK-based soft drinks producer Britvic is reportedly planning a €3.2 million ($4.7 million) overhaul of its bottled water brand Drench for the second time in less than a year in an attempt to boost sales. * The overhaul will include a packaging redesign and will be supported by a TV advertising campaign in time for the key summer selling period. In July 2007, the brand launched a national press and radio promotion for three months, reaching out to consumers aged 16-34 years old. The campaign featured the advertising tagline, 'Your brain is 75% water – keep it topped up … stay drenched'. At the time, Britvic Marketing Director Andrew Marsden, said: “Drench has established itself as a credible and youthful brand, and this new campaign will build on this by using charm and humour to continue to give Drench a distinctive and appealing personality.” Drench is currently sold in an easy-grip bottle shape in 50cl and 75cl formats, with a convenient on-the-go sports cap.
- National taste campaign launched for Welch's
**Welch's today announced the use of First Flavor's Peel 'n Taste flavour strips in its soon to launch print ad. The taste technology will debut in the 18 February issue of People, signifying an industry first for use in a national campaign.** Welch's People print ad includes a thin, tamper-evident pouch with a Welch's 100% Grape Juice-flavoured dissolving taste strip. Readers simply place the edible strip on their tongues to sample the taste of Welch's 100% Grape Juice. First Flavor, Inc. is the creator of the Peel 'n Taste marketing system, a groundbreaking, first-in-class and proprietary technology that enables consumers to taste the flavour of a product using a cost-effective and compact dissolving edible strip packaged in a thin, tamper-evident pouch.
- New look for traditional Glenmorangie
Glenmorangie, the popular Scottish single malt whisky, has recently undergone major repositioning. This has involved the vast and complex repackaging and labelling of the entire range with over 200 variant labels involved. The Glenmorangie Company chose Edinburgh-based Simpson Label Company to advise on production planning and the appropriate manufacturing techniques. “With a wide range of colours plus foil embossing for Glenmorangie’s new sculpted bottles across all the brand’s whiskies, the self adhesive labelling for three new extra-matured expressions, as well as the flagship 10-year-old and the 18- and 25-year-olds, was the most complex labelling and packaging operation that both Glenmorangie and Simpson Label had ever undertaken,” said Simpson Label Company Maureen Calder. The repositioning included a new brand emblem, the Glenmorangie ‘Signet’, inspired by the Cadboll Stone. The company has replaced the wood finish range with the Extra Matured Range, The Lasanta, The Quinta Ruban and The Nectar D’Or, which have been matured for an extra period in specially selected casks that previously held Sherry, Port and Sauternes wine. The new bottle, label and packaging design style was also extended to include Glenmorangie Original (10 Years Old), Glenmorangie 18 Years Old and Glenmorangie Quarter Century.
