US beverage giants escaped the first shock wave of what was inevitably dubbed 'Black Monday' by European commentators, 21 January, when the London Stock Exchange went into its steepest dive since 9/11. A few hours later, Asian markets experienced a similar slump. The contagious loss of confidence was caused by investors’ fears of an approaching recession in the US. However, there was no initial reaction on Wall Street, for the good reason that American markets were closed that Monday while the nation celebrated Martin Luther King Jr Day. When the New York Stock Exchange reopened on Tuesday, there was indeed a belated crash in share prices. But pre-emptive action by the Federal Reserve, which announced a massive interest rate cut to revive the US economy, appeared to slow the market decline. Even so, the Dow Jones industrial average was 1.06% down at the end of the day, Nasdaq was 2.04% down, and Standard & Poor’s 500 index was 1.11% down. The biggest losers were software, airline, telecoms and utility stocks. Retail and bank stocks, on the other hand, fared relatively well. The Coca-Cola Company and PepsiCo were on the losing side by varying margins. Coke’s shares fell 3.24% to $58.77, while the stock of major bottler Coca-Cola Enterprises was 3.28% down at $23.61. Pepsi shares meanwhile fell 2.9% to $69.39, but the Pepsi Bottling Group virtually held its ground, with the company’s stock slipping a mere 0.03% to $38.48. Cadbury Schweppes’ American depositary receipts, which are listed on the New York exchange, even made a modest gain of 0.31% to $45.44. The curious explanation for this is that Cadbury’s main listing is in London, where the company’s stock had already slumped 3.63% on Black Monday, and was thus rising again (though only by 3.23%) as investors’ nerves steadied on Tuesday. Sadly, few market analysts thought the Federal Reserve’s intervention would be sufficient to avert the threat of recession in the longer term. As this issue of beverage innovation went to press, the financial world was fastening its seatbelts in anticipation of a bumpy ride ahead.

A new energy drink called Neuro Fuel has been created by Waylon Howell and Joe Elmore. “It contains the lesser known ingredient piracetam which smoothes out the bugs and jitters associated with many energy drinks by disjoining your aromatic synapses, according to Waylon who is the chemistry whizz, making you feel smarter, braver, stronger and more self confident.” Fraternity brothers from the University of Tennesee, Waylon was in Florida when the idea surfaced. “I was in Miami and people were taking lots of illegal substances to make themselves happier. But Miami is very health conscious so I thought how they needed something to keep the toxins out of their brain and the cognitive speed up and to use the caffeine but without the inherent drop off.” Luckily aside from being a chemist and knowing how "your psychokinetic environs redact your quadricelli in response to anagenic stimuli," Waylon also has a marketing and finance degree. He explaines: “Energy drinks as a whole grew by 53% last year and contrary to popular belief, the brands are not really in conflict with each other. Right now the more an energy drink promotes, the more they create awareness for the category as a whole. Red Bull has been around 10 years now, but is nowhere near saturation.” So Joe and Waylon sank their own cash into hiring an energy drink consulting firm and using a private laboratory in Kentucky. The key active ingredients are sugar, caffeine and the amino acid taurine but as Waylon underlined, it is the piracetam which differentiates this energy drink from the others and helps consumers keep a cool mind when it comes to concentration.

*Danone’s Volvic Revive, its first functional water brand launched in the UK less than a year ago, is under threat of being delisted due to a poor response from consumers, according to news reports. * The brand is thought to have failed against established competitors such as GlaxoSmithKline’s Lucozade and Hydro Active brands, as well as a burgeoning number of vitamin enhanced water drinks with fruit flavours in the marketplace. Danone recently told UK trade magazine Marketing Week that it had decided to delist Volvic Revive Citrus Kick, but that it had no intention of delisting the Berry Blast variant, which it claims has performed well and will be the focus of its future efforts. Volvic Revive, is marketed as an alternative to mainstream energy drinks and is targeted at 18 to 35 year olds. The drinks contain guarana and ginseng extracts – which, it is claimed, have energising properties – and have no added sugar. The functional water range has been sold across supermarkets in sports cap bottles, along with multipacks of four, in an effort to appeal to a young demographic. The sub-brand recently won an award for Best Marketing Campaign in the 2007 water innovation (formerly bottledwaterworld) awards.

Following in the footsteps of the hugely profitable concentrated chai drinks market in North America, go-chai is a new choice in premium tea. Since its launch at the end of 2007, this innovative spiced tea drink is proving to be a popular choice in cafes and health food stores. UK interest is rising, as all-natural go-chai satisfies the big three food mega-trends buyers and consumers want: health, convenience and premiumisation. The complex layers of flavours, the ability to personalise the drink to suit individual taste preferences, and the relaxing aroma are the major points of difference between go-chai and other chai products. It's available in a 250ml Tetra Pak, which ensures a long shelf life, while keeping the natural flavours fresh without any additives or preservatives. Each pack makes two servings when diluted. After opening, go-chai will maintain its high quality taste in the fridge for several days. Managing director, Martha Benedek, said: “go-chai is going from strength to strength. It’s the convenient and healthy choice for those wanting an all-natural, perfectly brewed cup of chai that's full of flavour. “We have big plans for the brand, including the development of a support programme for Global Angels, an innovative international children’s charity championing the needs of children around the world. Having witnessed the booming growth of other chai drinks in North America, we believe there's huge potential to appeal to time-pressured, health-conscious consumers in the UK. “go-chai recognises that the hot drinks segment is crying out for an innovative, high quality product that stands out from the crowd and tastes great. We believe go-chai meets this challenge with finesse.”

By Claire Phoenix Liqui-Fruit, a market leader in the South African long-life fruit juice market since its introduction to South Africa in 1975, has expanded its Barney & Friends range with the addition of Riff, a dancing Hadrosaur (duck-billed dinosaur). Creative Licence was the design team tasked with helping Riff fit into Liqui-Fruit's Barney & Friends range. According to Martina Bogusch, Creative Director at Creative Licence, “At the end of 2007, the existing Liqui-Fruit Barney, BJ and Baby Bop packs will be joined by an exciting new face, Riff. Riff is a dinosaur with some amazing talents – he can make music out of anything, and when he's excited or creating his music, his crest blinks with a colourful light!” Bogusch continues: “Our brief was to build on the success of Liqui-Fruit's Barney range, which helps moms to get their toddlers to make a healthy juice choice. To this end, we've updated the four packs, which now feature a brightly coloured, eye-catching design on which Barney, BJ, Baby Bop and Riff are doing what they do best, having fun – creating an association between healthy juice and fun.”

UAE Minister of Health, His Excellency Humaid Al Qutami, receives a Bath Glass bowl from Zenith International Chairman Richard Hall during the opening ceremony of 'BevME', the first BeveragesMiddleEast Congress in Dubai. The two-day conference, with the theme ‘World class potential’, is organised by Bath-based global beverage consultancy Zenith International in association with beverage innovation magazine. For more information, visit <<1>">www.zenithinternational.com]<1> <1>: http://www.zenithinternational.com

Highland Spring has been unveiled as official water supplier to the UK Sport Relief 2008 event taking place nationwide from Friday 14 – Sunday 16 March. Sport Relief harnesses the power and passion of sport to change people’s lives for the better. Comic Relief spends the money raised through Sport Relief to help vulnerable people living difficult lives both in the UK and across the world’s poorest countries. The Sainsbury’s Sport Relief Mile sits at the heart of the Sport Relief Campaign, where people across the UK will be challenging themselves, their friends and their family to do a mile and raise some money. There are 23 big city Mile events and over 200 locally organised miles on Sunday 16 March. Highland Spring will supply 200,000 bottles of water to keep milers hydrated and full of energy on the big day. Marketing Director Richard Beeston said: “Sport Relief is widely recognised as a landmark event on the fundraising calendar. Not only is the event a good way of reinforcing the health benefits of staying hydrated during sport, but it is great to be involved in such a worthwhile event.”

Scientists at Europe’s food safety watchdog have updated their advice on the risks of listeria in foods; the bacteria is the cause of food related disease currently on the increase. According to the EFSA-ECDC annual report on animal infections transmissible to humans, the number of human listeriosis cases was up by 8.6 % in the EU from 1,427 cases in 2005 to 1,583 in 2006. Nonetheless, the number of large listeriosis outbreaks (i.e. more than 50 cases) have declined since the late 1990s and now the large majority of cases are sporadic. The Scientific Panel on Biological Hazards (BIOHAZ) of the European Food Safety Authority (EFSA) recommends that efforts to reduce risks to human health should focus on risk reduction practices both during the production process of ready to eat foods (RTE) and at home by consumers. The Panel also advised that in order to improve risk assesments listeriosis cases should be monitored and investigated more thoroughly. It was also suggested that data on the consumption of RTE foods should be generated and analysed. The report concluded, that the European Union’s maximum safety tolerance levels for Listeria have lead to very low numbers of listeriosis cases in humans. This is due to most listeriosis cases being caused by the consumption of RTE foods which support growth of Listeria. In its advice to industry, the Panel identified the following as key areas for attention: food packaging and preparation practices in the food chain (such as the slicing of RTE meat products), storage temperatures, general industrial good hygiene practices and the education as well as training of food handlers. Listeriosis is a rare but potentially lethal food related infection caused by Listeria monocytogenes which has a high mortality rate. Elderly people and pregnant women are particularly vulnerable to listeriosis as are people suffering from immuno-compromising diseases such as cancer or HIV. An increase in the number of listeriosis cases in humans has been observed in several EU countries since 2000, notably in persons over 60 years old. The work by the BIOHAZ panel follows a request by the European Commission to EFSA to update the scientific review of literature on listeriosis related to RTE foods and provide scientific advice on different levels of Listeria in RTE foods and the related risk to human health.

Leading nutritionists say that people who consume too few dairy products are at greater risk of being overweight, and research in the United States has shown that pre-school children who didn't have enough milk and milk products in their diet gained more body fat over time compared with children consuming the recommended amount. Global Dairy Platform Technical Director Dr Cindy Schweitzer said: “According to over 30 studies, milk products could play a role in losing and maintaining weight. In fact, these studies reveal that milk products may help you lose weight as part of a low calorie diet, or help prevent weight gain.” Dr Schweitzer was speaking at Dairy UK’s conference on obesity and the dairy industry. She said: “One of the first things many people do when trying to lose weight is to get rid of dairy foods from their diet. Many diet experts suggest this approach could be counterproductive. “Obesity is a multifactorial problem. Although milk products are not a magic solution, it would seem that consuming adequate quantities could provide an added benefit in weight management. Scientific evidence shows that consuming three daily servings of dairy foods such as milk, yoghurt and cheese as part of a reduced calorie diet actually increases weight loss. This is because calcium-rich dairy foods are thought to help certain tissues store, mobilise and oxidise fat to regulate our body weight.” Nutritionist Dr Theo Ockhuizen, who chairs several international committees on nutrition, told the conference that the introduction of nutrient profiles internationally was a political decision. He said: “It is an emotional decision provoked by pressure from consumer organisations. The emphasis on nutrients rather than on healthy dietary patterns could lead to unbalanced dietary patterns.” Dairy UK Chairman David Curry MP, told the conference: “Our industry believes very firmly that as far as food is concerned, Government activity and education should be dedicated to the adoption of a balanced diet. Only then can you communicate true nutritional advice, so we struggle with strategies which seek only to reduce targeted single components in food.”

Brazil’s Trip Publishing has joined forces with domestic water company Acqua Incorp to introduce Trip Liquid, a miniature version of Trip magazine used as a label on a bottled water. The water in the PET bottle is sourced from Serra do Japi mountain range. The first edition of the magazine had a 10,000 product run and will be available for sale in select surfing shops in São Paulo and Rio de Janeiro. The project was developed in partnership with Sangar, a company which has reportedly engineered label technology that allows the bottle to be placed in the refrigerator or a bucket of ice without the magazine being damaged. The 16 page mini-magazine brings stories about Trip Girl Adriana Telg, a feature on surfing giant waves in Chile with Luiz Robert Ant, a profile of Guy Marcovaldi, founder of the Tamar Project, and a column with tips on leisure and surfing gear. For Trip Publishing founder Pablo Rasp, the objective of the Trip Liquid is to move beyond the hydration benefits of water and offer packaging as a channel for information and entertainment.

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.