The winners have been revealed for the 2008 dairy innovation awards, hosted at the Grande Bretagne Hotel in Athens, Greece. Tara Dairies of Israel and ingredients company LycoRed took the top Cream Award in the dairy innovation awards 2008, with YOU – a range of fortified dairy products targeting women 30-40 years old. With categories for dairy drinks, desserts, cheese and children's products, along with categories for health, packaging, school milk and marketing initiatives, the awards attracted more than 90 entries from 21 countries. The awards were organised by Zenith International Publishing through its dairy innovation magazine. Other winners The** Best New Dairy Drink** prize was awarded to naturally gorgeous from the UK for its dairy and fruit drink containing an appetite suppressant. The Best New Dairy Dessert category was won by Canadian dairy company Saputo, with Le Coeur du Nectar – a soft, unripe cow and goat milk cheese with a fruit blend topping. Fayrefield Foods of the UK took the Best New Cheese title with its Spoilt Cow mature Cheddar cheese, featuring the RSPCA's Freedom Food scheme logo, while Little Dish Custard Desserts, also from the UK, won the Best New Children's Product category. As well as taking the top award, Tara Dairies won the Best New Health Initiative category, while the Best Packaging Initiative went to Italy's dipileg pot with incorporated spoon, designed for yogurt, fromage frais and dairy desserts. A new category was the Best Newcomer Brand or Business, and was won by US-based WheyUp (entered by Edge PR). The company represents a breakthrough in the sports drink market: WheyUp is the first drink of its kind to combine whey protein isolate with a sugar-free, non-carbonated energy drink. The Best School Milk Initiative came from the Danish Dairy Board with a 160-page handbook, produced in cooperation with school leaders, teachers, psychologists and parents' organisations, and distributed to parents through schools. UK agency Weiden and Kennedy won the Best Marketing Campaign category with Good Food Deserves Lurpak, a campaign designed to grow the Arla Foods brand in a declining category. "Our second awards attracted a wide range of entries from around the world," said dairy innovation editor, Geoff Platt. "These entries came from dairy companies and organisations both large and small, but all illustrated the high level of innovation, the high quality of the work and the diversity of activity that's going on in this exciting industry. "These awards also recognise the dedication and enthusiasm of people working in this industry – some working in very difficult and challenging circumstances." Click here for the <1>. Click here to view our <2>. Click here to go to our <3> in the FoodBev interactive section. Contact ZIP Syndication if you want to use any stories, pictures or graphics or any other material you have seen relating to the dairy innovation awards 2008. <1>: http://dairy.foodbev.com/dairyawards2008/ <2>: http://www.flickr.com/gp/24670467@N03/3j4PF7 <3>: http://av.foodbev.com/absolutevc/default.aspx?c=17

Last week Danone suggested merging Wahaha's other businesses, but this week Wahaha rejected the plan. Talks that had been part of the now one month extended negotiations may have now come to their end. Dow Jones Newswire reported (4 March) on Danone's plans to suggest a merger between the joint-venture and the rival companies run by Wahaha Founder and Chairman Zong Qinghou. Ownership of the Wahaha trademark and Danone's allegations that Zong was illegally selling products that were identical to those sold by the joint-venture, is central to the dispute between the two beverage giants. However, Wahaha has rejected the new merger proposal because it claims Danone wants to ensure at least 50 billion yuan ($6.9 billion) in market value if its shares in the new company are lower than 40%. Zong responded by saying that "those proposals and conditions are groundless, and we cannot possibly accept them." A peaceful resolution to the ongoing dispute now seems to be in jeopardy. In a report published by China Daily Zong added that he had no idea whether talks would continue.

*The UK bottled water industry was rocked by an unprecedented wave of adverse media attention in mid-February 2008. This focused its largely misinformed judgments on the quality, cost and environmental impact of bottled water. Even Britain’s Environment Minister, Phil Woolas, joined in the scathing attacks by describing bottled water as daft because tap water is so good. * Fortunately, the disproportionate and misguided criticism was challenged on many occasions by several respected guardians of the bottled water industry. water innovation (issue 47) collates the views of such experts to address the validity of five notorious claims made about bottled water. 1. Bottled water doesn’t taste any better than tap water Evidence to support or oppose such a claim is relatively subjective, but the jury is still out on how well municipal waters perform against bottled water brands. The assertion that tap water is better than bottled water came to the boil following a blind taste test at the end of 2007. A judging panel comprised of a respected wine correspondent, two top restaurant sommeliers and three beverage critics from Decanter magazine sampled 23 bottled water brands along with tap water from Thames Water, the UK’s largest municipal water supplier. The tap water was rated third, beaten only by Waiwera Infinity’s eponymous premium bottled water brand from New Zealand and Vittel from Nestlé Waters. However, if the best trained palates in food and drink couldn’t tell top bottled waters apart from plain tap water, is there any justification to cry wolf? The reality is that many consumers choose bottled water in preference to tap water. This choice may be based on taste or the reassurance that, in the cases of natural mineral water and spring water, the water has not been chemically treated. Furthermore, the discrepancy lies with impurities - such as iron, lead and limescale - or additives including chlorine that can make tap water taste less pleasant. Bearing in mind the ageing infrastructure of water pipes in the UK and the possible contamination between source and delivery, one can understand why water utility customers generally rate tap water below bottled water. High lead content in tap water is a particular concern as many pipes containing lead are privately owned, so regulations and standards are sometimes difficult to achieve. One high profile client, the Department of the Environment, Food and Rural Affairs (Defra), has reportedly gone to the trouble of fitting special hydrotaps, each costing over €1,500 ($1,860) on all eight floors of its London headquarters because civil servants dislike the smell and taste of tap water. A spokesperson for Zip, the hydrotaps’ maker, was not surprised that Defra had chosen to use the company’s products. He said: “People just don’t like the smell or taste of tap water. It’s the chlorine they use.” Meanwhile, a closer investigation of the Decanter blind water tasting event has revealed that water was taken directly from a resident’s tap from Kensington with good quality pipes. Although not reflective of tap water across London, the sample was at least sourced further downstream than the treatment plant. However, a spokesperson for Decanter magazine told water innovation that the tap water sample was slightly chilled and that a different verdict may have been delivered if all the waters had been drunk at a higher temperature. * 2. Buying bottled water is a waste of money * The most expensive brand tested in the Decanter water challenge was priced at €65 ($100) a litre and came in at 18th place. When Thames Water costs £0.06 per litre, tap water is thousands of times cheaper than the most expensive bottled brands and also apparently better tasting than many of them. So is it any wonder that the media suggest that bottled water consumers are overcharged for the products they receive? Yet, while the average Briton uses 150 litres of mains water daily, only two to five litres is used for drinking. The rest is used for cooking, cleaning, washing and toilet flushing. Therefore, when comparing prices, it is worth noting that mains water has multiple uses. Bottled water on the other hand is only used for the provision of pure drinking water. It is also important to consider that the price paid for tap water is set by a Government agency, has benefited from taxpayer subsidies for many years and is not liable to VAT. It may not include the true commercial cost of water provision or fair inclusion of externalities such as environmental impacts. Conversely, the price paid for bottled water is set by the end retailer of the product - not the water producer - and is subject to 17.5% VAT in the UK. Needless to say, the British Government is being lobbied to positively discriminate in favour of healthy drinks, such as bottled water, by putting them on the same zero VAT rating as food generally. A counter argument in the bottled versus tap water pricing debate surrounds the issue of leakage. The UK water utilities leak more water in less than a day than the UK’s total annual consumption of bottled water (2.27 billion litres). The UK water utilities have argued that improving leakages would be uneconomical. Yet, in certain parts of the UK, notably the South East, the pressures on water resources are acute. To address acute water shortages in certain parts of the UK, significant capital investment would be required that would ultimately have to be borne by the mains water customer. Thus, if the major environmental impact of leakage were to be fully addressed, this would significantly impact mains water pricing. Free market forces are admittedly not perfect but it could be argued that they more accurately reflects the true cost of drinking water in developed economies. The focus of criticism seems to be the premium price tags of luxury branded waters sold through horeca channels. However, more affordable brands are widely available at retail stores and cheaper discount brands of bottled water sold through wholesalers are often overlooked completely when bottled water is attacked as a needless luxury. More importantly, bottled water does not compete with tap water by virtue of its product formulation. Tap water must contain an active disinfectant at the point of dispense while natural bottled waters must be micro-biologically safe to drink at source. In terms of its packaging, distribution channels and product characteristics, bottled water competes with other bottled drinks. Rather than casting unfounded assertions on bottled water, it would be better if the media devoted more attention to the positive aspects of hydration and health. With 60% of the UK population predicted to be obese by 2050, it is counter-productive to discourage bottled water consumption. As communities attempt to tackle childhood obesity and curtail the dramatic rise of binge drinking and yob culture, those who describe bottled water as 'morally unacceptable' clearly hold a blinkered view. You can’t take a tap out with you, so more consumers are swapping sweetened, high calorie beverages for bottled water, which can be consumed in adequate quantities to rehydrate the body without adding calories to the diet. Consumers love the portability of bottled water and the guaranteed purity it offers. These are the main reasons for its success. * 3. Producing bottled water is a waste of water* About one billion people lack clean water for drinking and 2.6 billion lack sanitation, according to UN estimates. Water experts predict that the situation will worsen in many parts of the world in the coming decades due to several factors including urbanisation and population growth, increasing food production, changing consumption patterns, industrialisation, pollution and climate change. The water usage footprint of 1 litre of bottled water is understood to be around 3 litres, compared to 140 litres for a 12.5cl cup of coffee or 190 litres for a 20cl glass of apple juice. While there has been no in-depth study to measure the embedded water footprint of bottled water, its water utilisation is the lowest of all beverages, since there are no agricultural water inputs and limited water processing inputs. The bottled water industry has also made giant strides in the improvement of production technologies in bottling plants. For example, Nestlé Waters UK reduced water consumption for its flagship brand Buxton by 17% in 2006, while increasing production by 11%. In 2007, the company made a €13 million ($20 million) investment in a highly efficient production line, which resulted in further reductions in water used during production. This is merely one national example of good conservation being implemented. There are countless other initiatives across the world which we have featured in previous issues, such as the recent UN accord signed by Nestlé and Coca-Cola to manage water use at manufacturing plants more efficiently. Under the UN programme, called the CEO Water Mandate, the company executives pledged to take immediate action to address the emerging global water crisis. Together they launched a project designed to help companies better manage water use in their direct operations and throughout their supply chains. There is huge potential for the private sector to make a real, positive and lasting difference in protecting and preserving fresh water resources by making progress in six areas: direct operations, supply chain and watershed management, collective action, public policy, community engagement and transparency. As mentioned earlier, a single day’s mains water leakages are greater than the total UK bottled water consumption in a full year. Undoubtedly, it’s a shame that drinking water is used for gardening or to flush the toilet. Worse, water is drawn from a tap for a short while before consumption to avoid less pleasant water which has been left standing in lead pipes. The water utilities provide an excellent product and a good service with a historically under funded infrastructure. Yet the issue of water conservation is broader than attacking a provider of water or pointing the finger of blame for environmental woes at different industries. All of the business community will need to partner with governments, policy makers and public action groups to address water shortages and sanitation. Ultimately, everyone will need to work together and play their part in supporting water efficiency practices to protect a water legacy for current and future generations. 4. Bottled water production contributes toward global warming Latest estimates place the bottled water industry’s carbon footprint at around 200,000 tonnes of carbon, some 0.1% of total UK carbon emissions. Danone Waters UK & Ireland uses a combination of rail, sea, and road transport to move products from the sources where they are bottled in France to UK customers’ warehouses. The company reports it uses the maximum possible amount of electric rail routes in France, which offer highly efficient large scale loads for goods transportation. Since 2005, Danone has increased the proportion of miles its products travel by train from 59% to 70% of the total distance. Meanwhile, more than 90% of the bottled water produced by Nestlé Waters globally is consumed in the country of origin. Nestlé Waters’ UK international brands use rail and shipping as their primary mode of transport. This has been a major component of significant reductions in the carbon footprints of Evian and Volvic. On a worldwide basis, Danone has achieved a 30% reduction in the average weight of its PET bottles over the last 15 years. In the last three years alone, the average weight of Evian and Volvic bottles reduced by 11%. In addition to ongoing projects to reduce the weight of packaging materials, Evian and Volvic will progressively introduce recycled PET into the manufacture its bottles during 2008. Approximately 75% of bottled water consumed in the UK is produced in the UK. Most imports are from West Europe, mainly France, Ireland, Italy and Belgium. Exotic long distance imports such as Fiji are negligible. Thus, despite common misconceptions to the contrary, bottled water often travels much smaller distances than most other food and drink products. Natural Waters of Viti, the company which manufactures Fiji Water, said its water only comes by ship which was scheduled to make voyages with or without the company’s bottled water on board. The company has committed to reducing actual carbon emissions 25% by 2010 and is offsetting 120% this year. It is important to note that PET bottles are 100% recyclable. Unfortunately, the UK has one of the lowest consumer recycling rates in Europe. Government landfill waste reduction targets tend to be defined by weight, which means that heavier materials (glass, for example) provide more attractive areas of focus for the waste management industry. Soft drinks manufacturers are currently exploring opportunities to work with local authorities on initiatives to improve PET recovery and recycling. Lightweighting has been occurring since PET bottles were produced in the beverage market and companies continue to roll out lighter bottles year on year. A reduction of 10% of bottle weight for the whole range of PET bottles in the UK would achieve a reduction of PET usage of 20,000 tonnes and a reduction in CO2 production of 7,200 tonnes, according to Nextek. Recent press debate over the environmental impact of bottled water versus tap has ignored the embedded carbon footprint associated with the vast scale of the water collection, purification and distribution of public water supplies, plus the collection, treatment and recycling of sewage necessary to maintain supplies. The renewal of much of the UK’s water utility distribution pipes with MD PVC plastic pipes is in itself creating a carbon footprint associated with the unavoidable use of petro-carbon based products. The repair of leaks creates its own ‘repair miles’ and its own carbon footprint from the use of vans, generators, floodlights, drills, diggers, road repair materials etc. The carbon footprint of water leaked from the public supply is said to be almost 450,000 tonnes of carbon each year. This is over twice that of the bottled water industry. 5. Bottled water doesn’t play a beneficial role in society This is a fairly easy myth to debunk. It is a matter of record that, in national emergencies, the UK bottled water industry provides an essential back-up to the water utilities’ emergency supply arrangements. Last summer, Britain experienced its wettest summer in living memory. Emergency workers fought to hold back overflowing rivers as the worst floods in 60 years engulfed towns and villages, mainly in central England. At the height of the flooding, hundreds of thousands were left without drinking water and bottled water was relied upon as an inherently safe and portable solution. The benefits of bottled water are not limited to applications when there are disasters such as floods. Besides providing a living for around 20,000 people in the UK, there’s plenty of evidence to suggest bottled water manufacturers have a strong social conscience. Some critics are particularly concerned about water being imported to Britain because of the potential damage to supplies in other countries. However, even bottled water producers that face intense scrutiny have a compelling sustainability story to tell. Fiji Water has been working with the Pacific Water for Life Foundation to fund water projects in over 100 local communities each year. Many of the typhoid cases that happen in Fiji occurred after severe flooding took place following a cyclone. Safe drinking water is just one part of the equation. Developing proper sanitation and infrastructure is critically important as well. Fiji Water provides thousands of cases of water a year to local villages in Fiji who have been hit by cyclones or flash flooding to provide immediate access to clean, safe water. The company responded to the suggestion that exporting water somehow reduces access to this recious resource by reiterating that the export revenue from Fiji Water is paying for the expansion of water access at a pace that Fiji’s government could never achieved. If Fiji Water didn’t bottle the water, the underground flow would simply run into the ocean and fewer people in Fiji would benefit from access. Companies active in the UK bottled water market - notably Danone and Nestlé - are committed to measuring, improving and reporting on corporate responsibility. Additionally, the bottled water industry is at the forefront of offering positive ethical actions as an integral part of its business. For example, there is the Volvic 1 litre for 10 litre initiative by Danone Waters UK & Ireland, which provides mechanised wells in across Africa; Highland Spring’s fundraising partnership with Breast Cancer Care; and initiatives from British bottled water companies Frank Water, Global Ethics (with its charity brand One) and Waterbrands (Thirsty Planet) to fund clean water projects in India and Africa from profits.

Soft drink maker AG Barr is to expand into the burgeoning market for functional beverages and waters with the acquisition of the Vitsmart and Vitaminsmart labels from brand management company charteredbrands. Vitsmart was reformulated and repositioned and gained UK listings with Tesco and Sainsbury’s. The acquisition of the brands, which include both a vitamin enriched water and a range of fruit based drinks, will allow the group to further diversify into the market for nutritious and healthier beverage alternatives. Such a move by the UK based soft drink maker, which produces the Irn Bru and Strathmore mineral water brands, highlights the growing potential of the functional beverages market to manufacturers amidst a backlash against the traditional carbonated beverage. Group Chief Executive Roger White said that adding Vitsmart and Vitaminsmart to its product portfolio would give the group an instant footing in the UK functional market. “The brands will allow us a credible early entry into this rapidly growing sector with great brands and products which have existing retail distribution and consumers. We plan to accelerate the development of our activity in this sector and believe this acquisition gives us a strong foundation,” he said. Charteredbrands saw the future trend toward functional waters in 2006. Vitsmart was formulated and positioned in 2007 and gained national listings with Tesco and Sainsbury’s. The drink contained 50% of the recommended daily allowance (RDA) of vitamins in its 50cl bottle. Charteredbrands CEO Gervase Cottam commented: “We are delighted with the successful sale of Vitsmart. Since Coca-Cola bought the vitamin water producer glacéau for $4.2 billion we could see that the market will accelerate rapidly in 2008.” In a second deal, completed at the end of 2007, charteredbrands also sold its share in Isklar, the Norwegian glacial mineral water, to its two business partners in this brand, Jova Holdings, the Norwegian shipping and logistics company and the food and retail Omani company Sabco. charteredbrands Brands Director Angela Pirrie provides the lowdown on Vitsmart * Quick turnaround “The product was originally developed as a medicinal product before we took control. We changed consumer positioning, reformulated the product (removed sucralose) refined packaging and addressed all aspects of marketing – effectively turning the brand around ready for sale a year later.” *Consumer insight * “Functional water is still a relatively new category. It’s still poorly defined but the market has moved forward within the past year with consumers gaining more understanding about functional foods as a whole. “We did our own research to find out where the optimum positioning would be in terms of functional drinks. We identified progress could be made by developing a water drink with added vitamins rather a vitamin drink that happens to be a water. We positioned Vitsmart positioned as a simple entry level choice in the spectrum of functional drinks.” * Taste test * “A good taste is very important. There are lots of functional waters which arrive in the market with a poor taste and consumers won’t go back. So taste and refreshment are key.” * Vitamin dosage* Our research found consumers wanted a clear benefit from a single functional ingredient with clear communication on what that dosage is – you could have 100% Recommended Daily Allowance (RDA) of vitamins but consumers told us they were concerned about overdosing if they drank more than one of our products. * Back to basics approach* “The original drink we inherited had botanical ingredients and different flavours, aimed at different mood states and consumption occasions which offered far too many choices for consumers. “They want to choose by flavour but get the same benefits. So we simplified the proposition down to three great tasting flavours and one big benefit which is 50% RDA of vitamins. "Lots of competitors at the far end of functional drinks are moving into the market trying to tap into one part of your day – as a pick me up or revitalisation and confusing this proposition with flavour and complicated ingredients.”

Cadbury Schweppes of the UK has finally chosen May as the month in which it will split its global confectionery business and its American beverage operations. Assuming the management’s plan is approved by stockholders at the annual meeting on 11 April, shares in the confectionery business – to be renamed Cadbury plc – will be listed on the London Stock Exchange on 2 May. Shares in the Dr Pepper Snapple Group (DPSG) – formerly known as Cadbury Schweppes Americas Beverages (CSAB) – will be listed on the New York Stock Exchange on 7 May. Cadbury first announced it would separate the two businesses in March last year. The company said both operations would be more successful as independent companies. However, market observers speculated that the move had also been prompted by so-called `activist investor' Nelson Peltz, whose Trian company owns about 4.5% of Cadbury Schweppes. Peltz is known for pressuring managements to pay back more to shareholders. Cadbury’s original hope was to sell off CSAB to a private equity group. But that plan had to be abandoned when the global credit crunch made it difficult if not impossible for would-be buyers to raise the necessary finance. In October, the group’s management said it would instead establish the confectionery and soft drinks operations as two independent businesses, with existing shareholders being issued stock in both companies. Cadbury has secured $3.8 billion in loans from five major banks – JP Morgan Chase, Bank of America, Goldman Sachs Credit Partners, Morgan Stanley and UBS – to fund the demerger, and ensure that DPSG is financially viable as an independent entity.

Water resources in the Middle East are under increasing pressure. Population growth in the region is predicted to be around 2% a year. This rate suggests that, by 2025 at current levels of consumption, the region will need four times as much water as is available from natural sources. Water scarcity has an impact on many aspects of the economy of the region, from the necessity of relying on imported food to the development of industries that use less water. The reliance on importing food from outside the region has reduced pressures on water resources by exporting the need for water. For example, to produce a tonne of grain requires around 1,000 tonnes of water. So importing a tonne of grain saves this water locally. Ironically, this may have slowed the development of water efficient technologies in the region. As pressures on world food production increase, this policy of exporting water demand may become less viable. *So what can be done? * As pressures increase, sustainable water resource development will become more important and more sought after by governments. Sustainability in this sense means using only what is available, reducing the demand and reusing water is different ways, such as in grey water systems or through water recovery from wastewater treatment. Saudi Arabia, for example, has recently changed the law to allow the use of treated effluent to irrigate crops for human consumption. In UAE, city municipalities are using treated effluent for municipal irrigation and are changing from spray irrigation to trickle irrigation, which is proven to increase soil water availability while reducing evaporation. Pressure on resources Will this increase in pressure on resources have an impact on the bottled water industry? Groundwater from sustainable supplies will be required if the industry is to continue using natural sources. Water sourced from areas where there is sufficient recharge can be considered sustainable, and some of the volume required to feed the market is likely to be recharged. Where there is very low rainfall, such as in much of Saudi Arabia, water abstraction is likely to exceed recharge rates and is therefore unsustainable. The other main source of water is from desalinated seawater; while sustainable with respect to water, desalination requires significant energy and therefore cost. Despite this, desalination is considered the shining hope of the region’s requirements for potable water. This, in turn, will move the pressure from water to energy. Whatever is done, it is clear that the growing pressures on water supply are only going to increase. Both practical and technical solutions will be key in managing resources, both now and in the near future. * Ric Horobin biography* Dr Ric Horobin, Zenith International Water & Environment Director, has degrees in geophysics and hydrogeology, devoting his working life to environmental issues. His specialised team manages projects all over the world focusing on hydrogeology, hydrochemistry, microbiology and groundwater engineering.

With no sign of the public’s taste for cider abating, expect to see premium ciders the drink of choice to accompany barbecues this summer, says Merrydown Managing Director Chris Carr. “There’s huge synergy between barbecues and cider – both are growing year on year and the season for enjoying them is getting longer. Cider is no longer considered a drink solely for summer. Sales are strong all year round,” says Carr. “A good quality premium cider, made with the juice of eating apples, is not only refreshing in hot weather but also stands up well to the robust flavours of barbecue food.” The stylish, 1 litre glass bottles of Merrydown’s 7.5% Vintage Dry are designed for table top use while Merrydown Gold, a 5% ABV cider, is suited for drinking straight from the 500 ml bottle on al fresco occasions. Merrydown Vintage 440 ml cans complete the `family'. But it is the liquid inside that sets Merrydown apart, says Carr. “Our new marketing message is `Made with Love' – and it’s completely true. Merrydown Vintage is made by expert brewers to the same Sussex recipe perfected more than 60 years ago. We care passionately about the taste and quality of our ciders. We use the juice of real eating apples and Champagne yeast in the brewing process and there are no artificial colourings or sweeteners.” A summer marketing campaign will pitch Merrydown ciders as the perfect partners to food. The theme will be extended through Merrydown’s consumer friendly website and national press activity.

British Turkey is fired up this summer with plans to not only reassure consumers that turkey is safe to eat but also to entice them to think outside the box – like putting a turkey drumstick on the barbecue! A simple recipe for long, slow barbecuing of a whole drumstick has been developed for British Turkey by celebrity chef Phil Vickery. The resident TV chef of This Morning insists the recipe is a summertime staple with his family. Says Vickery: “The flavour and texture you will get is second to none. I serve mine with the meat pulled from the bones and piled into a soft bap.” Says British Turkey spokesman Catriona Lee: “We are planning to use Phil’s recipe to get the media, and ultimately consumers, thinking about cuts of turkey they wouldn’t normally consider, and new and fun ways of cooking them.” Lee says retailers are giving more support to linking British Turkey with barbecues every year and producers are meeting demand by developing a fast-growing range of portioned and convenience products with al fresco and barbecue eating in mind. “The Best Barbecue Product is always a hotly contested category in our annual British Turkey awards. This year’s finalists included sausages, tikka marinaded steaks and – the winner – Morrisons Hot and Spicy Kebabs. “ And many retailers now flag up cuts of British turkey suitable for barbecuing with special BBQ stickers,” says Lee. “This sits nicely alongside the nutritional information because turkey must be the most healthy barbecue food you can eat. Plus, new for this summer, we will be going into the summer season with the benefit of the familiar Red Tractor logo longside our own Quality British Turkey assurance. This is double reassurance in many consumers’ minds, while retailers also appreciate that QBT is the only ISO 45001 approved turkey growing and processing scheme in the world. Reassurance just doesn’t get better than that.” The message that British turkey is good to barbecue – plus it’s healthy, versatile and delicious – will be spread among butchers, retailers, caterers plus the press and the public. There will BBQ related competitions on the website and through the media to further help raise the profile. Added Lee: “We feel this campaign will give British turkey a terrific boost during this important barbecue season, which seems to get extended each year. Many people now start barbecuing at Easter and don’t put the barbie away until October. Even the bad weather doesn’t stop them.”

*The history of Chaudfontaine dates back many centuries, with documented evidence on the water’s spring source found in a charter from the Bishop of Verdun in 1250 describing ‘Chauve-t-eau-Fontaine’. * There are many other fascinating milestones in the history of Chaudfontaine, such as the fact that in 1926 two different companies tapped the same water source, later merging into a single business in 1938. Moreover, the reason for the unique mineral taste of Chaudfontaine was explained in 1983, when hydrologists discovered that the water makes a 60 year journey through protecting and purifying rock layers from a depth of 1,600 metres before emerging at the surface at 37°C. June 2003 stands out as being the most important recent landmark. This was the moment when Coca-Cola Enterprises teamed up with The Coca-Cola Company to snap up the Chaudfontaine business for €31 million ($45 million) in cash and assumed debt from Iranian businessman Abbas Bayat. Since that time, Coca-Cola Belgium has poured significant levels of investment into production, packaging innovation, distribution and marketing. In fact, around €46 million ($67 million) has been spent on the Chaudfontaine plant; €20 million ($29 million) on new bottling lines from German company Krones; €16 million ($23 million) on new packaging and €10 million ($14.5 million) related to quality, environment, safety and hygiene. Support from the Coca-Cola sales force has also been a key factor in delivering success. Better still, the plant participates in the overall Coca-Cola strategy to increase water and energy efficiency and decrease waste. In 2006, Belgium based operations increased water efficiency by 9.8% and energy efficiency by 2.3% per litre of product. Over 97% of the solid waste of the Chaudfontaine plant is recycled. Furthermore, as a result of the upgrading of the production site, the greenhouse emissions of the plant have decreased to 63.7% of their 2003 level. However, Coca-Cola in Belgium doesn’t blow its own bottles on site so the glass bottles are shipped through a Dutch supplier. Nevertheless, these bottles contain on average 60% recycled glass. Brand revitalisation Since 2003, the Coca-Cola group has also importantly devoted considerable effort towards developing the brand in an innovative way. Country Director Belux Gaëtan Van Maldegem told water innovation: “Since Coca-Cola acquired the Chaudfontaine brand, our Belgian marketing team has completely rebuilt the brand, based on values that relate to the uniqueness of the water.” In April 2004, a year in which the business celebrated its 80th anniversary, Coca-Cola unveiled a logo for Chaudfontaine to enhance its brand identity. A simple rendering of a dove, a symbol expressing purity and emotional warmth, takes pride of place on all product packaging beside the brand name. The move demonstrated slick marketing as the brand was able to modernise, while retaining strong messages to consumers about the product’s heritage and overall taste. Concerning the orientation and taste profile of the brand, water connoisseur Michael Mascha commented: “Chaudfontaine has a neutral pH and a nice bicarbonate level. The low level of nitrate indicates an undisturbed source.” “Chaudfontaine is among the rare thermal, hot natural mineral waters in Europe. For over 60 years, Chaudfontaine water is purified by nature,” observed Chaudfontaine Production Director Jean-Louis Cornet. “There are different kinds of water, among which the category of the hot thermal natural mineral water is a truly exceptional one. The difference in origin has an impact on the taste. So choosing the appropriate water to drink deserves more consideration than many of us think it does.” * Promotional push* The brand’s marketing drive has been boosted by a robust screen advertising campaign since 2003, with TV spots looking at how the brand is associated with affection and friendship as well as an ad looking at the natural uniqueness of the brand. However, the marketing for Chaudfontaine moved up a gear in 2006. Spadel’s leading brands had already captured the attention of young, fashion conscious and affluent consumers. So it’s no coincidence that the screen campaign from Coca-Cola promoting Chaudfontaine in a PET bottle competed by featuring a male teenager listening to loud rock music in a comfortable kitchen setting. With the scene set for the ad, it’s time to describe the action. Oscar, a spritely goldfish, eyes a bottle of Chaudfontaine, next to the boy sat on the breakfast bar. Oscar bashes against his goldfish bowl in an attempt to move it closer to the bottle. The boy eventually notices the fish’s antics and pours some of the bottled water into the goldfish bowl. The ad cuts to a close-up of the brand and a new positioning statement: ‘Les connaisseurs préfèrent Chaudfontaine’. After drinking the water, Oscar shows his approval and appreciation with an endearing burp. Besides the excellent use of humour in the 2006 TV spot, this well crafted film communicates core brand values in an engaging manner. Product innovation To make the brand even more distinctive to consumers in horeca channels, Chaudfontaine became a pioneer in the Coke network in 2006 by offering a newly designed glass bottle range in three variants: still (blue label); sparkling (red label); mildly sparkling (green label). It’s a novel idea, but are the three variants of water useful to consumers? Wouter Vermeulen, Director of Communications at Coca-Cola Belgium and Luxembourg, clearly believes they are. He explained: “When having dinner, most people ask for advice concerning the choice of wine, but never ask for advice concerning the choice of water. Water can have an important influence on the taste of your dish. Sparkling water promotes appetite, so it’s perfect as an aperitif and a great partner for dishes such as seafood. Lightly sparkling water works well with subtle dishes such as Waldorf salad and wok dishes, and is always the right choice when you’re not sure. Still water is perfect at the end of the dinner and has a neutral taste, so it perfectly suits dishes with a more explicit taste such as Chateaubriand or pheasant.” The range of red, green and blue labelled waters are packaged in bold, contemporary and elegant 1 litre, 50cl and 25cl glass bottles, which express purity, stability and exceptional quality through the structural design of the bottle and the labelling. The innovative bottle, shaped as a rising droplet, has been kept as transparent as possible to highlight the intrinsic quality of the water. The company describes the design as “modern and timeless.” “The Chaudfontaine water is a unique thermal hot mineral water. Our challenge was to build a brand that reflects this uniqueness. This has been achieved by stressing the core values of the brand more, using the dove in the logo as a symbol for purity, by launching a new bottle with a design that reflects the purity and transparency of the water and by focusing our communication platform towards consumers making use of the ‘connoisseurs prefer Chaudfontaine’ tagline,” added Vermeulen. A renewed screen marketing push for Chaudfontaine in 2007 was equally compelling and important, but this time a restaurant setting was chosen in order to promote the brand’s latest range of glass bottles. As you can imagine with the help from sequential scenes from the advertisement (shown below), this advertisement – with a starring role for Omar the lobster – reinforces the positioning statement, punctuates the brand’s association with quality and communicates the brand proposition in an even more fun and compelling way. * Tangible results * The brand revitalisation efforts were undoubtedly a success. Before the activities, Chaudfontaine was growing in line with the market. Following the total rebranding process with new packaging and marketing, the brand has outperformed category growth by a clear margin. Statistics obtained from Coca-Cola provide evidence to support such a view. While the total bottled water market grew 2.8% in Belgium between 2001 to 2003, the Chaudfontaine brand registered 3.4% growth in the same period. Category growth in Belgium between 2004 and 2006 was 1.4% but Chaudfontaine achieved 5.7% growth. *Future outlook * Chaudfontaine is sold in all major distribution channels including hotels, bars and restaurants as well as retail outlets, petrol stations and venues such as cinemas. For example, the availability of the 50cl PET bottle in supermarkets has improved significantly from 17% in 2003 to 64% in 2007. Chaudfontaine is also available in 1.5 litre PET bottles in still and sparkling (blue and red label) formats. A 33cl PET bottle with sports cap is also available in the still range. Besides Belgium, the brand is currently available in the Netherlands and France through the local Coca-Cola bottling partners. There was market speculation last year that the Chaudfontaine brand could be introduced elsewhere in Western Europe including the UK, but the company declined to comment further on these reports. Coca-Cola also declined to reveal plans for Chaudfontaine in 2008, but marketing officials expressed their determination to maintain Chaudfontaine’s steady progress in the marketplace and resolve to ensure the brand continues to drive category growth in Belgium. * Home truths * According to Zenith International, the Belgian packaged water market has developed over the years to become one of the top in Europe, with consumption at 128 litres per person. This is expected to grow in 2008 to around 130 litres per person. In Belgium, still waters make up around two thirds of the market, with sparkling waters accounting for the remainder. Zenith International Senior Analyst Karen Wells commented: “In volume terms, Spadel, Nestlé Waters and Neptune (with its Cristaline brand) share around 55% of the Belgian market, with the remainder comprising both international and local manufacturers. Danone and Coca-Cola hold similar market shares of around 7% each.” Despite the success of the brand revitalisation and the ambitions of Coca-Cola to continue to grow in Belgium, Chaudfontaine is still less known than other major waters in the domestic market, so it faces plenty of challenges as it attempts to steal more limelight away from the leading brands in the still and sparkling segments. According to Spadel officials, the firm’s Spa and Bru brands combined had over a 19% market share across retail and horeca channels. In comparison, Chaudfontaine held a market share of some 7%. Although final data for 2007 has not yet been officially released, analysts do not expect any significant changes in how the market is carved up, but volumes declined because of a poor summer season. Meanwhile, Spadel’s four key brands - Spa Reine, Spa Barisart, Spa Marie-Henriette and Bru - have evolved and benefited from recent innovations and there’s more activity on the horizon. At the same time, Wattwiller, the company’s brand in France, also recently launched at Carrefour in Belgium. This spells even more competition for Chaudfontaine beyond the threats faced from popular Nestlé brands Perrier, Vittel, Contrex and San Pellegrino as well as Danone’s Evian, Volvic and Badoit and Neptune’s range. Only time will tell if Coca-Cola’s Chaudfontaine can continue to increase appeal following the promising momentum in product perception and customer loyalty it has built in the past few years. However, one thing is certain. As lessons in brand revitalisation in the bottled water industry go, Chaudfontaine is a master class one cannot help but admire. **Timeline ** * 1240 – The first written evidence related to the origin of the Chaudfontaine spring is found in a charter from the bishop of Verdun describing ‘Chauve-t-eau-Fontaine’ * 1676 – A farmer starts to exploit the warm Chaudfontaine spring as a bathing resort. Indeed, the site remained a popular spa location for the next 250 years * 1924 The Carter family are first to sell water from the Chaudfontaine thermal source. The enterprise uses the name Thermale Chaudfontaine * 1926 – On the other side of the river, William Grisard starts another water bottling company called Cristal Chaudfontaine * 1938 – Cristal Chaudfontaine acquires Thermale Chaudfontaine and begins trading as Monopole Chaudfontaine * 1961 The Piedboeuf brewery becomes the main shareholder of the Chaudfontaine business * 1983 – Discovery that Chaudfontaine water travels through rock layers at 1,600 metres for about 60 years before reaching the surface * 1988 – Piedboeuf is integrated into the Interbrew group * 1997 – ranian businessman Abbas Bayat buys Monopole Chaudfontaine from Interbrew and integrates the source into Chaudfontaine distribution * 2003 – Chaudfontaine becomes part of the Coca-Cola system. The company begins to pour investment into the brand, production and distribution * 2004 – Chaudfontaine celebrates its 80 year anniversary in style with a brand new logo * 2006 – Chaudfontaine’s revitalisation continues with new product developments and marketing activities. The brand scoops an award from our magazine in the process * 2007 – A creative screen marketing campaign demonstrating creative flair is broadcast building on themes from a Chaudfontaine ad which aired a year earlier

France’s Group Danone raised its expectations of growth in 2008, after a year of change in 2007 as the company tightened its focus on healthy foods and beverages. Danone completed the sale of its entire biscuits and cereal products division to Kraft Foods in the second half of 2007 and acquired Dutch baby food and clinical nutrition manufacturer Numico. Although Danone’s long running dispute with its estranged Chinese partner Hangzhou Wahaha has still not been resolved, the group believes it is now in better shape to prosper in the future. Chairman and CEO Franck Riboud said: “2007 was a year of strategic decisions that reinforce our leadership position in healthy food. It was also a year of remarkable profitable growth. Danone again reached its ambitious targets, thanks to the highest ever growth rate in the fresh dairy division and a very strong fourth quarter in the water division. The underlying strength of the business, coupled with the smooth integration of our Numico business, gives me particular confidence in the group’s ability to accelerate its growth profile even further. As a consequence, we are increasing our growth targets for 2008 and beyond.” Danone is now aiming for like for like sales growth of 8-10%, with increased operating profit and growth in underlying earnings per share of at least 15%. The company’s published IFRS results for 2007 included only six months’ sales from its joint venture with Wahaha, because of the dispute, plus €450 million in Numico sales over the last two months of the year. Consolidated revenue was reported as €12.77 billion, representing like for like growth of 9.7% against Danone’s 2007 target of 6-8% growth. Earnings trebled to €4.18 billion, boosted by €3.1 billion from the sale of the biscuit and cereals business. Underlying earnings were €1.18 billion or €2.47 per share, compared with €1.19 billion or €2.44 per share in 2006. Danone’s consolidated sales increased in all major geographical regions, with Europe up 7.4%, Asia up 4.7% and other markets up 17.4%. The water division grew just 4% over the year, due to the impact of the Wahaha dispute and poor weather in West European markets in the third quarter. Danone’s water brands performed strongly in Latin America and Asian markets with the exception of China.

This normally comes in the late summer, when so many people are away that journalists make news out of almost anything. Last week, no less than the cabinet secretary wrote to all UK government departments asking them to adopt tap-water-only policies, explaining "I have made this issue one of my key priorities". This was front page news for the Evening Standard, leaving no room for health or education, defence or crime – not even football. This is because Whitehall reportedly uses 250,000 bottles of water a year, which amounts to 0.02% of a market that's responsible for, at most, 0.1% of UK carbon emissions. Hardly a drop in the ocean. In mid February, the environment minister described bottled water as daft because tap water is so good. Yet Private Eye magazine found that his own department had installed special water filters at a cost of over £2,000 a tap. I'm surprised the minister didn't add "let them eat cake". This week, beverages will have been higher than usual on the chancellor's agenda, when considering his first budget statement. He has been urged to raise taxes on alcopops and lower taxes on fruit juice. These are not silly ideas, because the government can easily do more to encourage better social behaviour and better health. Important elements of public health policy are for us to eat five a day of fruit or vegetables and to drink eight glasses a day of water. There's no VAT on fruit or vegetables or tap water, yet we have to pay 17.5% tax for fruit juice and bottled water. The silliest thing would be not to promote better hydration and health by ending these anomalies, because the change would cost so little and save so much.

*Ardea Beverage, a subsidiary of US Pepsi bottler PepsiAmericas, has teamed up with Giant Bicycle Inc to encourage Americans to pedal their way to a healthier lifestyle. * Consumers of Ardea’s airforce Nutrisoda line of functional carbonates have the chance to win one of 10 Giant OCR Alliance 1 performance road bicycles, valued at $1,500 each, as top prizes in a national on-pack promotion. Other prizes in Ardea’s 'Good to Go' promotion include 100 Giant helmets and 1,000 Nutrisoda-Giant water bottles. Thousands more cycling products from Giant – the world’s biggest bicycle manufacturer – will be given away online and at retail locations across the country. “We're excited to be partnering with one of the most widely known bicycle brands in the world,” said Maile Buker, Ardea Beverage Co Vice President of Marketing and Strategy. “Teaming with Giant is an ideal way to introduce our delicious nutrient-enhanced soda to a fitness-oriented consumer.” At the heart of the Good to Go promotion is the Giant Code Game, running from 10 March to the end of May. Shoppers at participating retailers can play by entering the Giant Code printed inside specially marked Nutrisoda four-packs. Entries can be made either online at <<1>,">www.nutrisoda.com/giant]<1>, or by using a mailed entry form. Product range The Nutrisoda line comprises eight low-cal, vitamin and mineral-enhanced sparkling beverages: Immune, Renew, Radiant, Calm, Focus, Flex, Energize and Slender. The drinks are made with natural fruit flavours, natural colours and water “filtered four times for extra purity”. Ardea was founded by Joe Heron, who launched Nutrisoda in 2003. The business was acquired by PepsiAmericas, the second biggest US Pepsi bottler, at the beginning of 2006. <1>: http://www.nutrisoda.com/giant