The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
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- Aroma compensates for fat and salt
Formulators seeking to reduce ingredients such as sugar, salt or fat can now using a patented Encapsulated Aroma Release technology from ScentSational Technologies. New research from INRA in Dijon, France, which investigated the interaction between aroma and saltiness, indicates that "when a consumer expects a certain flavour, the perception of saltiness is enhanced; and that change in taste perception comes through aroma". In addition, the researchers concluded that "aroma-induced taste enhancement could be used to compensate for the taste of fat and sugar content in foods formulated along healthier lines – for example, butter or cream aroma could enhance the perception of creaminess." ScentSational has long demonstrated these facts in its consumer research into the efficacy of its CompelAroma technology that encapsulates flavour molecules in plastic, which helps to keep them fresh and stable. “Once flavours are added directly to food and beverage ingredients, they mix chemically, resulting in loss of aroma profile and degradation due to oxidation and other atmospheric conditions,” said Steven M Landau, chief technology officer, ScentSational Technologies. “Encapsulated Aroma Release locks those flavours in the packaging material, which helps them stay stable significantly longer than when added directly to the contents.” ScentSational’s CompelAroma Encapsulated Aroma Release technology adds FDA-approved food grade flavours within the structure of rigid or flexible, plastic packaging components at the time of manufacturing, ready for release at point of purchase, package opening, product preparation or consumption.
- Fairtrade conference announces expansion plans
* Industry leaders and businesses were urged to scale up their engagement with Fairtrade to help tackle poverty in developing countries at the annual Commercial Conference (16 September) entitled 'Tipping the Balance', held by the Fairtrade Foundation in London. * 'Tipping the Balance' is also the name of the new five-year strategy launched in February aimed at achieving a fourfold expansion by 2012 to £2bn, and making Fairtrade the trade norm rather than the exception. “The scale and level of poverty worldwide demands that businesses and consumers urgently need to play their part to scale up Fairtrade," said Harriet Lamb, Executive Director of the Fairtrade Foundation. "And in these tough economic times, people in developing countries who typically spend over 50% of their income on food are the most severely affected. In Kenya recently, a farmer told me that a bag of maize had increased by 100%." The call to action comes in the run up to a high-level UN event on 25 September to renew government and business commitments to meet 2015 Millennium Development Goals (MDGs) at the halfway point. The Secretary of State for International Development, Douglas Alexander, said: "We congratulate all businesses who have helped put Fairtrade on the shelf, and call upon the business community to take Fairtrade to the next level, making it more mainstream still. The retail industry can open doors to more farmers in developing countries and play their part towards the MDGs by enabling shoppers to support Fairtrade every day." * Continued growth* Sales of Fairtrade products for April to June 2008 grew by 55% from an estimated retail value of £113m to £176m in the same period last year. Volume, the best indicator of the amount of Fairtrade premiums that go back to producer groups to spend on community development projects, such as classrooms and clinics, increased by 42% in food alone. Sugar (including retail, catering and composites) increased in volume by 467%, an increase in sales value from £10m to almost £24m. Tea grew in volume by 186%, an increase in sales value from just under £7m to almost £16m. According to recent TNS figures, Fairtrade certified foods have increased their market penetration 61% to 70% over the last year (from 15.2 million households to 17.5 million), meaning that an extra 2.3 million households now purchase Fairtrade certified food products. Major category switches by Tate & Lyle, the Co-operative and Sainsbury’s have largely contributed to this increase in Fairtrade sales, but sales generated by dedicated Fairtrade companies such as Cafédirect, Divine Chocolate, AgroFair fruit company and the new Fairtrade nut company Liberation have also made their mark. Core categories such as bananas and coffee continued to show a steady growth of 27% and 23% in the second quarter of 2008 respectively. Iain Ferguson, CBE, Chief Executive of Tate & Lyle plc, one of the keynote speakers, said: “We have had an excellent response from consumers to our switch to Fairtrade, and we've seen good volume growth in key customer accounts, somewhat ahead of our expectations.” Fairtrade Fortnight 2009 The theme for Fairtrade Fortnight 2009 (23 February – 8 March) 'Make it happen. Choose Fairtrade', was also unveiled to conference delegates. Companies were encouraged to build on last year’s success, which saw several all-important conversions to Fairtrade from major high street companies. Fairtrade Fortnight presents companies with a unique opportunity to market Fairtrade and is the perfect time for companies to improve visibility at point-of-sale, or even consider extending their range of Fairtrade certified products.
- Five reasons to go nutty for Fairtrade
Shoppers are being given five reasons to go nutty this Saturday on World Fair Trade Day (May 10) and celebrate the day by buying the delicious range of cashew and peanut snacks from Liberation, the world's first 100% Fairtrade nut company. The company has given the following five reasons: 1. Liberation nuts are baked using just a drizzle of oil which makes them a healthier choice than nuts which have been roasted in oil. 2. Because they are high in protein, just a handful of nuts will fill you up and stop you reaching for the biscuit tin. 3. Peanuts are full of vitamin B6 which is well known as a stress-buster and the magnesium in cashews can help deal with mood swings, anxiety and irritability. Cashews also contain oleic acid which is known as a heart healthy fat. 4. More than 22,000 farmers from co-operatives in Africa, Asia and Latin America who supply Liberation co-own the company and benefit from its success. 5. Thanks to sales, the loved ones of hospital patients in Mchinji, Malawi, who have travelled miles to get family members and friends medical care, have somewhere to sleep and cook next to the hospital. A special shelter has been built using Fairtrade premium money to provide them with much-needed protection from the elements. People who buy from the delicious Liberation range of mixed cashews and peanuts can choose from four flavours - lemon and a hint of chilli, a hint of smoked flavour, lightly salted and natural (no added salt).
- Celsius launches in 438 Kum & Go outlets
* In the US, Celsius – the original calorie burning beverage – is now available in 438 outlets of the Midwestern retailer, Kum & Go. * Celsius has been scientifically formulated and clinically tested to burn up to 100 calories or more per serving will be available in all Kum & Go locations. Kum & Go will carry the popular green tea raspberry acai, green tea peach mango and sparkling wild berry and orange flavours. Celsius can be found in Kum & Go stores in New Year’s end cap displays for consumers eager to start their New Year’s resolution of consuming healthier beverages and foods. Celsius will support sales at Kum & Go with pump toppers, promotional pricing and advertising. According to Kevin Krause, Senior Vice President of Marketing: "We pride ourselves on providing quality products and superior customer service in each and every Kum & Go store. We believe that our customers are looking for great-tasting, functional beverages such as Celsius calorie burning beverage. The clinical studies that scientifically support Celsius confirm that this is a high performance drink our customers will embrace." Celsius Vice President of Strategic Accounts and Business Development Janice Haley said: "Kum & Go is a cornerstone of the Midwest community as is evident by their recent award for Retail Leader of the Year, by CSP magazine. We're honoured to be working with them to deliver Celsius to their customers, and have been impressed with their launch process and the education within their company ranks, which has resulted in great enthusiasm for Celsius. It's clear to us how Kum & Go continually retains their leadership position in convenience store ranking." Sustained calorie burn Celsius drinks are powered by a proprietary blend of ingredients including green tea with EGCG, ginger, caffeine, calcium, chromium, plus B vitamins and vitamin C. Scientifically shown to raise metabolism over a three-hour period, consuming Celsius results in a sustained calorie burn while keeping you energised. Kum & Go, awarded as Convenience Store, Petroleum’s 2008 RetailLeader of the Year, was started in 1959 in Hampton, Iowa and now hasmore than 430 stores in 12 states.
- Tim Krieglstein becomes Red Bull marketing director
Krieglstein, who will oversee UK marketing for Red Bull drinks, brand and sponsorship activities, has been drafted in to the UK business after five years with Red Bull, first at its German office and then as marketing coach at Red Bull's international headquarters in Austria. It’s understood that Krieglstein is analysing the performance of the Simply Cola brand before committing to further marketing spend. However, a Red Bull spokeswoman denied the cola was in danger of being pulled from the market. The launch of Simply Cola was overseen by Feiler last year. The line was more recently backed by a £1m poster campaign highlighting its natural ingredients. The ads showed a can between two bull-shaped ice sculptures. Source: Marketing Magazine
- Coke launches US Olympic campaign
* As political controversy continues to swirl around the Beijing Olympics, Coca-Cola North America (CCNA) is launching a major promotional campaign focused on the athletes and the sporting ideal of the Games. * The campaign revolves around a group of high-profile US Olympians and Olympic hopefuls, with the message being communicated to consumers through special limited edition Olympic packaging, press and television advertising, and various online tie-ups. The aim is to unite sports and Coke lovers through the international spirit of the Olympic movement. “Together, Coca-Cola and the Olympic Games have shared and promoted the values of unity, optimism and inspiration for 80 years,” said Hendrik Steckhan, President and General Manager, Sparkling Beverages, for Coca-Cola North America. “For the 2008 Olympic Games in Beijing, we’re continuing that legacy of engaging the world. By combining Coca-Cola cans in different languages with six amazing athletes, we have created a programme that celebrates global communities coming together, and the unifying spirit of the Olympic Games and Coca-Cola.” On 19 May, almost three months before the opening of the 29th Olympiad in Beijing, CCNA will release limited edition cans and FridgePacks bearing the familiar Coca-Cola logo in different languages including Ethiopian, Russian, Thai and Mandarin, as well as English. It will be the first time the Coca-Cola script has appeared in different languages in the US, with new designs being released every two to three weeks. Special 20oz (591ml) Coca-Cola bottles will also feature labels with multiple languages including those of Bangladesh, China, Egypt, Georgia, Israel, Korea, Nepal and Sri Lanka. To link US consumers with the approaching Summer Games, collectable packaging and in-store materials will feature a “Six Pack” of athletes: Olympic gold medallists Natalie Coughlin (swimming), Steven Lopez (taekwondo), and Sanya Richards (track and field); Olympic competitors LeBron James (basketball) and Andy Potts (triathlon); and Olympic hopeful Shawn Johnson (gymnastics). * Active ambassadors* The “Six Pack” athletes are also serving as Coca-Cola “Ambassadors of Active Living,” encouraging consumers to maintain a healthy lifestyle. In New York on Friday (9 May), five of the six filmed special NBC vignettes that will air on US television to raise awareness of the collectable Coca-Cola packaging. These vignettes will join other Olympic-themed Coke ads over the summer, including a commercial celebrating the 80-year relationship between Coca-Cola and the Olympic Games. The website mycoke.com will meanwhile run a number of Olympic promotions designed to appeal to teenage consumers in particular. Visitors to the site can design their own virtual Coke bottle to share with other fans around the world; learn about the Coca-Cola “Six Pack” of athletes; download wallpaper and screen savers; and enter a sweepstake to win a snowboarding trip with Olympic medallist Gretchen Bleiler to Vancouver, future venue of the 2010 Winter Olympics. <1> will also feature “WE8,” a global collaboration between eight visual artists and eight progressive musicians to create eight limited-edition aluminium bottle designs and free, downloadable companion songs. Over the summer, thousands of samples of the special bottles will be given away in Simon shopping malls across the country. Members of the mycokerewards.com loyalty programme can also redeem their points for Olympic gear, download Olympic packaging collector’s sheets, and enter a sweepstake to win a tour of the US Olympic Training Centre with an Olympic athlete. The Coca-Cola Company has been an Olympic partner for 80 years, and is the longest continuous corporate supporter of the Olympic movement. Coke is the official non-alcoholic beverage of the Olympic Games to the year 2020. <1>: http://Mycoke.com
- Coke veteran Ron Wilson to lead Skinny Nutritional
"I’m excited about this opportunity to take Skinny Water to the next level,” said Wilson. “In less than six months, Skinny Water has been embraced by millions of customers who are searching for great-tasting flavoured water that provides functional benefits – and most importantly, zero calories and zero sugar. As we go forward, we’ll expand our flavour offerings and look to use the Skinny trademark in other beverage categories, such as ready to drink teas and coffees." Wilson brings with him more than 38 years in the beverage industry. He began his career in the soft drinks industry in 1969 as a route salesman for Pepsi-Cola, and worked his way up to branch manager. He joined the Coca-Cola system in 1977 as a financial analyst with Coca-Cola Bottling Company of New York. Over the years, he held various positions within Coca-Cola Bottling Company, rising from division manager to vice president/general manager of the New Jersey division. In 1985, he became the president and chief operating officer of The Philadelphia Coca-Cola Bottling Company. He led the company to become the fourth largest Coca-Cola bottler in the country. While at the helm, he was also president of the Coca-Cola Bottlers’ Association and a vice president of the Dr Pepper Bottlers’ Association. In October 2008, Ron Wilson was inducted into the Beverage World Soft Drink Hall of Fame. "The appointment of Ron Wilson as the President and CEO represents the transition of the company from the start-up phase to a growth and operational phase,” said Don McDonald, former president and CEO of Skinny Nutritional Corp. “Ron’s experience and leadership will be invaluable, and we know he’ll take the company to new levels of profitability.” McDonald will now serve as chief financial officer of Skinny Nutritional Corp, and will focus on investor relations to introduce the company to a variety of institutional bankers. “Ron Wilson’s tenacity for detail and years of beverage experience brings the financial disciplines and leadership to build the Skinny brand into a beverage powerhouse,” said Pat Croce, member of the board of advisers. “As an emerging company, it’s a real triumph to get a veteran executive of this magnitude to join our company.”
- Coke bottler backs down in ‘unholy’ vending row
Coca-Cola’s major pan-European distributor, the Athens-based Coca-Cola Hellenic Bottling Co, has begun removing religious images from hundreds of chilled vending units in Russia, after protests from a group of Russian Orthodox believers in the city of Nizhny Novgorod, 400km from Moscow. The complaints centred on pictures of an Orthodox cross and onion-shaped church domes on the vending machines. Initially, Coca-Cola Hellenic said it had no plans to drop the images, noting that there had been no complaints in other Russian cities. Now, however, the company has retreated. “I would assure people that we used these images to promote Russian culture and not to offend anybody’s feelings,” said a spokeswoman for Coca-Cola Hellenic. “This incident in Nizhny Novgorod is regrettable. “We are strictly adhering to our principles of ethical marketing, which means we are taking into consideration local community demands. We took the decision to remove the image of the church.”
- Coke shows new Super Bowl ads
Nearly 100 million viewers watched moments from ‘The Coke Side of Life’ when two new 60-second Coca-Cola ads debut on television’s biggest stage during the broadcast of Super Bowl XLII on FOX. "It's Mine" is a combination live-action and computer generated spot that's set during the famous Macy’s Thanksgiving Day Parade. When a giant Coca-Cola contour bottle balloon joins the parade, a good-natured tussle ensues among the skyscrapers of New York as several well-known character balloons vie for the floating Coke. In the end, the surprise victor shows that even a perennial underdog can triumph on 'The Coke Side of Life.' Using Washington, D.C. landmarks as a backdrop, "Jinx" features Democratic strategist and commentator James Carville and former Senate Majority Leader Bill Frist. When the two utter the same word simultaneously during a television showdown, Frist invokes the "jinx" game, compelling Carville to buy him a Coke. With icy bottles of Coca-Cola in hand, the two spend the rest of the day enjoying ‘The Coke Side of Life’ throughout the Capital as political disagreements are temporarily forgotten. "Coca-Cola is part of the celebrations that friends and families enjoy when they gather to watch the biggest game in sports," said Katie Bayne, chief marketing officer, Coca-Cola North America. "Choosing Coca-Cola and choosing to live on ‘The Coke Side of Life’ is about deciding to go for the positive. It's forgetting what makes us different and remembering what brings us together -- watching the Super Bowl broadcast, the good guy winning or just sharing a Coke." Beginning at noon on Saturday, February 2, the two new Coca-Cola ads will be available for advance viewing on mycokerewards.com. A special red football helmet icon on the site’s homepage will act as a link to view the commercials. These new spots are the latest additions to 'The Coke Side of Life' campaign. Entering its third year, this critically acclaimed global campaign highlights how Coca-Cola and living on ‘The Coke Side of Life’ bring people together in positive ways. For the second year in a row ads from 'The Coke Side of Life' will be featured during the Super Bowl telecast. In addition to the Coca-Cola ads, a new 60-second commercial for vitaminwater will be unveiled. Featuring NBA superstar Shaquille O'Neal as a jockey, this spot marks the first time the brand will advertise during the Super Bowl broadcast. Company profile The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola®, recognized as the world's most valuable brand, the Company markets four of the world's top five nonalcoholic sparkling brands, including Diet Coke®, Fanta® and Sprite®, and a wide range of other beverages, including diet and light beverages, waters, juices and juice drinks, teas, coffees, energy and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.4 billion servings each day. For more information about The Coca-Cola Company, please visit our website at www.thecoca-colacompany.com
- Superspy James Bond turns to Coke Zero
It seems that James Bond may be switching from his favourite vodka martini (shaken, not stirred) to a new non-alcoholic beverage: Coca-Cola Zero. Coca-Cola Great Britain has clinched a marketing deal with Sony Entertainment to link Coca-Cola Zero with the suave superspy’s latest cinematic adventure, 'Quantum of Solace', due to be released in the UK on 31 October. The company is producing a special limited edition package of the drink, rechristened 'Coca-Cola Zero Zero 7' in reference to Bond’s famous 007 codename. The British deal is part of a broader global partnership with Sony, and is Coca-Cola Zero’s first major international marketing collaboration since the brand was launched in 2006. 'Quantum of Solace', the 22nd Bond film, stars Daniel Craig in his second outing as 007. The film has been produced by Michael G. Wilson and Barbara Broccoli, and directed by Marc Forster. Edgier persona Bobby Brittain, Brand Director of Coca-Cola Great Britain, said: "We are delighted to be involved in this exciting project. “The new, edgier Bond persona is the ultimate embodiment of the Coke Zero brand personality, and is expected to deepen the brand's engagement with its core target audience of 20-something men." The launch of Coca-Cola Zero – unofficially dubbed 'Bloke Coke' – was the company's biggest brand launch since the arrival of Diet Coke almost 25 years ago. Coca-Cola Zero will be supporting the release of 'Quantum of Solace' with a through-the-line advertising campaign alongside promotional and on-pack marketing initiatives across a number of global markets.
- Coke reveals price of German merger
The Coca-Cola Company has revealed in a regulatory filing that it agreed to pay $626 million plus the assumption of debt to take full control of its German bottling operations last year, buying out almost 20 small regional bottlers and merging them into major bottler Coca-Cola Erfrischungsgetränke AG (CCEAG), already a Coca-Cola subsidiary. Coke negotiated for months to clinch the deal, which finally closed in September. The company said one unified bottling operation would be more efficient and responsive to market demands. Financial details of the transaction were not disclosed. The company’s filing with the Securities and Exchange Commission (SEC) shows Coke paid $385 million for the 17% of CCEAG shares it did not already own: $156 million in cash upfront, and $85 million in “guaranteed future payments". Coke also took over $34 million in debt. The former independent bottlers have shares in CCEAG, which they may sell back to Coca-Cola at a future date. Germany is Coke’s biggest European market, but slumped in the wake of a 1999 contamination scare in Belgium and northern France. In its results for 2007, the company reported that its German case volume edged up 1% over the year, with 2% growth in the last quarter, following 7% growth in Q4 the previous year.
- Klum and Coke see red over women’s health
Supermodel Heidi Klum has teamed up with Diet Coke to play a glamorous and meaningful role at the Oscars on 24 February. Klum will wear a dramatic red dress by John Galliano to the Academy Award presentations, as part of Diet Coke’s new partnership with The Heart Truth – a national awareness campaign about women and heart disease. A red dress has been adopted as the eyecatching symbol of this US campaign. Since mid January, American consumers have had the chance to win Klum’s dress through a Diet Coke sweepstake on mycokerewards.com, while helping women at the same time. For each sweepstake entry, Diet Coke is giving $1 (to a total of $250,000) to the Foundation for the National Institutes of Health, in support of awareness and research into women’s heart health. “Heidi Klum’s participation helps make this programme even bigger, and gives consumers a great way to become involved and learn more about a crucial women’s health issue,” said Caren Pasquale Seckler, Group Director of Low Calorie Colas for Coca-Cola North America. The Diet Coke Red Dress Programme include national and local retail promotions that aim to generate more funds for the campaign. Diet Coke is also sponsoring The Heart Truth’s “Red Dress Collection Fashion Show,” as well as a Heart Truth roadshow. The campaign is reinforced by ads and special Diet Coke packaging. Klum will be modelling her Galliano number for the first time in a Heart Truth fashion show on National Wear Red Day, 1 February.