The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
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- Dragons’ Den invention holds water
A product that has been designed to increase water consumption in schools has made a successful appearance on BBC Two's Dragons’ Den. The bottlecoolerpenholder by Concentrate Design keeps water bottles cool and stores pupils’ stationery. The product held its own on the programme in which budding inventors pitch their wares in front of a panel of entrepreneurial judges in the hope that one of the “dragons” will invest in their idea. In the case of inventor Mark Champkins, telecommunications tycoon Peter Jones, who appeared in The Daily Telegraph’s list of top ten entrepreneurs aged under 40 last year, was so impressed with his bottle that he agreed to hand over his own cash and act as a mentor. The desktop pencil holder that encourages children to guzzle water is made from thermal material neoprene, is roomy enough to house a 50cl water bottle, as well as pens and pencils, and comes in five colours with a name tag on the handle to appeal to youngsters. Royal College of Art graduate Champkins set up his firm with the aim of designing products that would inspire pupils to learn. He has worked alongside schools to determine why children were failing to concentrate and felt uncomfortable in their classroom environments. His findings were bolstered by the World Health Organisation statistic that 2% dehydration can lead to a 20% drop in concentration and negatively impact on children’s ability to learn. Having already signed a contract with department store John Lewis to stock his range, which also includes a school bag that transforms into a seat cushion, the inventor wanted to appear on the BBC show to gain some advice about how to develop the business. Since filming, Jones has shared some entries from his book of contacts to ensure that the right people are being approached, and also promised to offer more guidance as the company grows. As for Champkins, he will be concentrating on coming up with new, innovative designs to add to his practical, child-friendly product line.
- Irish distributor for Vivreau
Vivreau has appointed BevServ as sole distributor of its range of mains-fed drinking water systems in Ireland. “We are particularly pleased that Vivreau has chosen to work with us in Ireland,” said BevServ Managing Director, Brian Rogers. “The Vivreau brand is very well-established in the UK, and the company has considerable expertise being one of the first companies to develop the mains-fed market nearly 20 years ago. “Vivreau’s Table Water Bottling System is used in approximately 55% of the top 100 companies in the UK. With such a strong brand heritage, we’re confident we can generate huge interest from Facilities Managers and specifiers looking for design-led, cost-effective systems that offer green benefits. With the newly launched VR3000 and V2O systems, plus other new products in the pipeline, we are very much looking forward to developing the Irish market over the coming months.” Vivreau Managing Director Stephen Charles added: “The economic boom in Ireland has created a significant increase in property development. Our products are often specified during a new build or property refurbishment, so this is helping to fuel an increased demand for Vivreau systems. “Although we have successfully supplied the Irish market from our UK base for many years, appointing our own distributor in Dublin will have significant advantages for customers, including fast access to a local specialist who can provide expert guidance on all aspects of choosing and using Vivreau systems. It’s a very positive move for us and we have complete confidence in Brian, who is keen to bring the Vivreau brand to a much wider audience.” Established in the late 1980s, Vivreau offers a range of purified drinking water systems, including under counter, tabletop and floor standing options that dispense still, sparkling, flavoured, hot and chilled water. Its Table Water Bottling Systems provide purified chilled, still and sparkling water in reusable glass bottles, which can be branded with client logos.
- The publicity machine
**The press releases, newsletters, brochures, websites, merchandising, advertising and trade shows that make up the marketing mix offer effective ways for water cooler companies to publicise their image and brand, as well as products and services. cooler innovation Deputy Editor Medina Bailey talks to a business to business PR expert, branded uniform specialist and various cooler firms to assess the impact that good publicity can have on business.** When soft drinks giant Pepsi changed the colour of its can from red to electric blue in 1996, it needed a campaign that would create impact. Adorning a Concorde jet with its new blue logo, tinting the usually red Daily Mirror newspaper front page in a blue hue, and asking Mir cosmonauts to pose with a giant inflatable Pepsi can as part of its renowned Blue campaign certainly seemed to do the trick. Not only did the marketing stunts receive international press coverage, they also made Pepsi rivals Coca-Cola and Virgin sit up and take notice. Campaigns of this kind may be financially inaccessible for smaller businesses, yet they demonstrate how effective marketing can be when different mediums are used to deliver a message to a specific target audience and reach out to a new one. A properly organised publicity strategy that is continuous, flexible and makes use of as many marketing methods as possible, will bring about various advantages, says PR expert and founder of UK based agency, AGM Publicity, Alan Godfrey. “It should reach people likely to buy your products or services and increase enquiries, as well as help sales people to be recognised by company or brand name, and build and maintain the long-term image of the firm,” he says. “Your investment over time will give ongoing, cost-effective rewards.” Despite these apparent benefits, Godfrey’s experiences in the two decades that AGM has been dealing with small to medium manufacturers and suppliers, have shown that although water cooler companies will have put a business plan in place from day one, their marketing plans are often neglected or even nonexistent. * Bottom of the pile* “Cooler firms design, manufacture and supply superb products, but often only rely on advertising and exhibitions – plus, of course, their sales people to fulfil their sales lead generation needs,” he explains. “Many do not understand PR or have the time to deal with it, so it stays bottom of the pile.” Firms also work under the assumption that if a product or service is good enough, it will sell itself by recommendation. “Oh really?” questions Godfrey, who has also trained as a photojournalist and worked as an Advertisement Manager and Publisher. “Is that why Rolls-Royce and other huge names spend millions on advertising? They generally market the brand rather than the product. “That said, in our business, industry people do want information on actual products. But many still believe that readers of trade magazines only want technical information and fail to think about the long-term promotion of the company’s image too. It’s very important to give confidence to buy, and mention expertise, service, quality and supply.” Do it yourself An understanding of how marketing works is essential to positive publicity, but Godfrey insists that it’s not necessary for all firms to approach a PR agency to perform their duties. His recently published book, How to Handle Your Company Publicity – The Guide, outlines how companies can achieve results by working on their own marketing in-house using methods such as PR, advertising, direct mail and newsletters. In compiling the practical, no-nonsense handbook, which involved speaking to editors, he found that even PR firms and large companies can sometimes get it wrong. “I’ve proved many times that firms can do the job themselves, but they need to be organised and have someone to carry out the day to day tasks of publicity,” he says. This could be a Secretary or Personal Assistant with reasonable writing and organisational abilities, or someone specifically employed for the role, with the main criteria being that they will remain with the company for a long period of time and really get to know its products, markets and ideals.” Working closely alongside the Sales and Marketing Manager, the right person should surround themselves with good suppliers, such as photographers, graphic designers, printers and technical writers, and ensure that they have an office for arranging meetings. Daily tasks could include setting up and maintaining a media mailing list, talking to advertising and editorial personnel, arranging exhibitions, producing graphics, brochures and advertising material, writing and issuing press releases, updating web pages and arranging photography sessions. “Phew! It all sounds too much – but if it’s organised, just a short period every day can see you through. Publicity is a serious function, and playing with it can be a disaster – just ask Gerald Ratner! It must be seen as a continuous day to day job, showing people within the company and outsiders the positive attitude that is being taken.” Press releases One of the most important daily duties is providing relevant publications with press releases and material for features. According to Godfrey, the main mistake that companies make is either sending out too many releases or none at all. “Some get their priorities wrong, for instance, they make a huge fuss about their new website and forget about their new product that will be making its debut at an exhibition that has cost thousands and many years to develop. “Releases should only be sent when companies actually have something to say. Don’t worry too much that you’re not a trained journalist. Just write about what you know in some sort of order of importance and don’t mention your company in every other line. Think about the reader – do they want to know how many offices you have or what the MD thinks?” The next most cost-effective marketing tool is the mailing, which should be well presented, sent to a named person with a specific job title, offer something that the recipient will need and give them an incentive to respond immediately. Further methods are exhibiting at events and advertising. As exhibitions can prove costly, Godfrey recommends that they’re planned carefully and ‘worked’ to ensure that they are capitalised on. Invitations should be sent out to potential and existing customers as well as the media, particularly if a new product is being launched at the show. Attendees should be persuaded to visit stands with the offer of a small gift as an incentive, and advertising should be placed in magazines covering the exhibition a month before the show. “Advertising is an excellent tool in marketing,” says Godfrey, “but of course it can be expensive. You should change the message regularly but keep to your corporate image. Make sure you choose the right publication for you and not necessarily the cheapest. A small advert, such as a quarter or half page spread over two or three editions is usually better than one big page, especially for small firms.” Branding it Another area that’s often overlooked within the cooler industry is branding, as Godfrey explains: “Branding is very important. People buy brands not manufacturers. Brands are usually trusted over a long period of time. I believe that all products should have the brand name clearly on them, even if they’re out of sight, such as a filter or pump.” “Whether people drink water from a bottle or use a machine to dispense it – I think we all feel more comfortable with a known, good brand.” A company that knows a thing or two about branding is uniform manufacturer Simon Jersey. Responsible for designing work wear clothing for delivery personnel that’s practical, fit for purpose and carries positive messages about the company being represented, the firm has experience across a broad spectrum of industries, from office and medical to food preparation. “Branding is about creating the right visual impression,” says Manager of Bespoke Design for the company, David Sprakes. “Whether rightly or wrongly, your organisation is judged on first impressions, many of which involve your staff. Our customers come to us for this reason.” Various solutions are offered according to the environment that workers operate in, as well as the company type. Clothing, such as the polo shirt or tunic, can be given a bespoke touch by applying sewn-in logos, labels, embroidery, heat-applied transfers or even reflective 3D material. With a blue chip client base that includes Emirates Airlines, P&O Cruises and Avis, the firm works closely alongside its clients in order to gain ideas and feedback from the wearers themselves. “We come into contact with the full range, from those who just know they need something, to those who have sketches of what they are looking for. It doesn’t matter to us what stage they are at, we can join in at any point. As long as they’re receptive to the idea that first impressions can be crucial, then we’re working with the right type of client,” he continues. “We talk to those at the top level who know about budget constraints and company image, and we talk to those out there on a daily basis to see what it is they’re asking for.” Cooler couture According to Sprakes, the same rules apply in the water cooler world when personnel are making water cooler and bottle deliveries, and carrying out installation and sanitisation visits. “Impressions here are enormously vital. This is an industry where hygiene is critical, and if you’re a supplier, then your customers need absolute faith in your ability to be hygienic. Companies will question: ‘If they can’t be bothered with their appearance, do they cut corners anywhere else, and is this a risk we should be taking?’” Further aspects, such as employees visiting homes and weather conditions also come into play: “People don’t like answering their doors to strangers, so a fully branded uniform can help prove legitimacy. A lot of companies need their clothing to work for them. We produce fleeces, waterproofs and high visibility garments for those out there battling the conditions. We also have a composite alternative to steel-toe-capped shoes, which makes it easier to pass through security systems with metal detectors. Uniform truly is a head-to-toe investment.” As he works closely with Simon Jersey’s design department, Sprakes also revealed what fashion trends will influence work wear over the coming months. His predictions for 2008 include chocolate and oatmeal colours, comfortable but smart trousers and polo shirts. Medina Bailey
- Cuno unveils 3M name change
Cuno Foodservice is rebranding its product line under a new 3M Water Filtration name in a bid to emphasise its focus on water filtration and positioning as a member of the 3M family. The name change will culminate in an official unveiling of the company’s new look, which is expected to take shape from 1 January 2008. 3M acquired filtration technology company Cuno in 2005 and has since worked with the aim of addressing global water supply quality issues and developing practical and affordable filtration systems for commercial use. Cuno water group Vice President, Tim Carney, commented: “We are thrilled to have 3M recognise our pioneering contributions to the water filtration industry and put their brand name and trust behind our product. Now Cuno can benefit from 3M’s huge investment in technology and innovation.” The revamp is also expected to assist the company to better support its multinational customers, enhance its product offering and make its range more readily available across a global marketplace. “3M Water Filtration will continue to build on Cuno’s success and innovation, with new advances that uphold customer expectations,” said Cuno Director of National Sales, Rick Knasel. The newest addition to the 3M fold, Cuno designs, manufactures and markets a comprehensive line of filtration products for the separation, clarification and purification of fluids and gases in various sectors, such as drinking water, healthcare and industrial. 3M serves customers in more than 200 countries around the world in markets including consumer, safety, healthcare, industrial and transport.
- Website update for Kleena Coola
UK-based Kleena Coola has improved its website in a bid to make ordering water cooler sanitisation products online easier. Featuring over 60 items, including the recently added John Guest and POU installation and repair lines, the site illustrates each product, enabling the customer to know exactly what they’re ordering onscreen. The easy to navigate site orders information into areas such as ‘product list’, ‘new lines’ and ‘technical info’, as well as a ‘great profits’ section for the add-on sales products that are stocked, including absorbent mats, daily hygiene wipes and sprays, and visitor and auditor packs.
- Tate & Lyle Ventures acquire BioFilm Limited
Tate & Lyle Ventures and Scottish Enterprises Scottish Venture Fund have acquired BioFilm Limited through a newly formed company, BioFilm Holdings Limited. BioFilm Limited, a subsidiary of Devro plc, is the only fully integrated manufacturer in Western Europe of dissolvable/edible films that carry active ingredients, designed for use in the nutraceutical and medical markets. BioFilm Limited ('BioFilm') is being acquired for a nominal initial consideration plus a sum in respect of working capital. The agreement provides for a further potential payment to Devro plc in the event of a subsequent sale of the business. BioFilm Holdings Limited plans to invest £3 million in the business to allow the company to supply the rapidly growing medical devices, lifestyle and pharmaceutical markets. BioFilm will be headed up by Trevor Morgan, formerly Devro plcs Business Development Director. Use of dissolvable/edible films as medical devices (such as anti-snoring strips) and as a delivery mechanism for a range of active ingredients (including breath fresheners, nutraceuticals, cosmeceuticals and now drugs) is increasing rapidly. This is due to ease of use, cost benefits and, in some cases, improved absorption through the buccal membrane (inside cheek). The North American edible film market is well established and the European market is beginning to emerge; some analysts estimate that the total market for edible films could reach $500 million this year and $2 billion by 2012. BioFilms expertise allows it to use a wide range of film formers to meet the end customers requirements; films can be made from a range of products including gelatine, pectin, cellulose, pullulan and collagen. North American success David Atkinson, Managing Partner, Tate & Lyle Ventures said, "The edible film market is fast-growing, particularly in North America, and enjoys an excellent fit with our Funds focus on biomaterials. We see potential in the medical/ drug delivery market where dissolvable films allow fast delivery of active ingredients. BioFilm also provides a unique opportunity for us to enter the European market, which is currently small but we believe is likely to follow North American trends." Jonathan Lloyd-Hirst, Investment Manager, Scottish Venture Fund said, "The Scottish Venture Fund was set up as a market making mechanism to attract new investors to Scotland. We are therefore delighted to be investing for the second time alongside Tate & Lyle Ventures in a Scottish company, BioFilm. With our investment and backed by a strong management team, BioFilm has the potential to become a global pioneer in its field." Trevor Morgan, Chief Executive Officer, BioFilm said, "We are delighted that we have been able to attract such high calibre investors, who bring with them the resources and experience to develop BioFilm into a world class producer of highly differentiated dissolvable film products for a wide range of markets." Tate & Lyle Ventures and Scottish Enterprise were part of a consortium which invested in second round funding in Scottish marine biotechnology company, Aquapharm Biodiscovery Ltd in July 2007.
- Cooler cover ups
Cooler cover-ups As you wrap up in your winter coat, hat, scarf and gloves to do battle with the icy weather or don your glad rags to step out in style, spare a thought for your unclothed water cooler this festive season. Perhaps it was the plight of the naked cooler or the designer accessory that is the tea cosy which inspired this range of striking jackets for bottled coolers. Available in a whole host of decorative designs, including traditional, whimsical and festive themes, <1> will ensure that your machine will sport the latest in cooler clobber all year round. Or for those coolers more concerned with functionality than good looks, the noticeboard cover might prove more appealing. Ideal for advertising an upcoming event and displaying anonymous messages, incriminating photographs or even your latest copy of cooler innovation, the Cooler Bottle Billboard - complete with clear vinyl pocket - offers endless possibilities for the cooler that has everything. Vending voyeurs You might recall the innovative skirt that magically transforms a person into a vending machine, which was featured in the last issue. Well, hereís further proof that vending machines have undisputed street cred because, as well as resembling one, you can now also watch one all day long. Simply go to <<2>">www.jihan.sblo.jp]<2> and prepare to delve deeply into the world of drinks dispensing. cooler innovation can report that, when it put on its beverage binoculars to visit the Japanese website, highlights included well, there weren't any really. But who knows what would have happened had we continued our soft drink stalking for a whole 24 hours. Addictive personality types, you have been warned. <1>: http://www.coolercoverups.com <2>: http://www.jihan.sblo.jp
- Bars and pubs solution from Zerica
Zerica has emphasised the benefits of its water and drinks cooler with carbonator, which has been specifically designed with public venues such as bars and restaurants in mind. Operating at external temperatures of up to 43°C, the Italian-made G Plus can be mounted either over or under the counter, and features a stainless steel ice chamber, extractable refrigeration coil and carbonator, with the aim of easy maintenance and optimum hygiene. Provided as standard, a recycling system keeps the liquid chilled between the G Plus and the main drinks supply point, enabling them to be placed far apart, while taps can be mounted on either the width or length of the stainless steel main body, which has rounded, protected corners for safe operation. The unit is suitable for various beverage types, including water, fruit juice, milk, wine and beer.
- Serious US energy from Odwalla
Health company Odwalla, owned by The Coca-Cola Company since 2001, has launched into the energy sector with a Tropical fruit juice blend combining pineapple, mango, guava and passion fruit plus extracts of yerba mate, green tea and guarana seed for concentration and vitality. The drink contains 1mg of ginseng plus vitamins B1 and B2 to increase energy metabolism and vitamin E to boost the immune system. "Odwalla Serious Energy is a different energy drink, with a blend of nature’s fruit juices," commented Nona Austin-King, Odwalla brand manager. "Odwalla Serious Energy is specially formulated to refuel and renew. It’s perfect for people who seek some get up and go, any time of the day." Especially formulated with nutrition and taste to refuel and renew, it is packed in 45cl (15.2fl oz) recyclable plastic bottles.
- Chocolate surimi
Surimi, more commonly found in the West as imitation crab meat, is made from pulverised fish meat that has a flexible texture when cooked. Flavours are generally savoury, but recently at Anuga, Belgian company Vichiunai launched Sweet Surimi Bites in a chocolate flavour, under its Vici Sweets Del Mare brand. The unusual surimi product is said to provide a healthy alternative to sweets as it contains less than 20% of the fat and half the calories of real chocolate. It also does not contain any flavour enhancers and is offered in a 200g pack.
- CSAB to become Dr Pepper Snapple Group
If you’ve ever thought that Cadbury Schweppes was a cumbersome title, how about Dr Pepper Snapple Group? Better get used to it, because that is what the present Cadbury Schweppes Americas Beverages (CSAB) unit will be called, when it is spun off from Cadbury’s vast confectionery empire in 2008. Cadbury once hoped to sell CSAB outright to private equity groups, but the collapse of world debt markets meant that equity groups could no longer raise the necessary cash for a buyout - CSAB was valued by analysts at up to $16 billion. So instead Americas Beverages will be ‘demerged’ from the core confectionery business, with Cadbury stockholders receiving shares in the new enterprise, which will be floated on the New York Stock Exchange by the end of June. These latest details were revealed in December, when Cadbury Schweppes issued a trading update in advance of its year end results. The news from the group’s confectionery operations was good, with sales set to rise more than 6%. But the news from CSAB was mixed. Although beverage sales were expected to grow 4-5% over 2007, the unit’s profitability will be hit by a £30 million ($61 million) loss from the botched launch of the sports drink Accelerade. Chief Financial Officer Ken Hanna admitted the company ‘got it wrong’ with Accelerade, which will be placed in fewer retail outlets in future. While Dr Pepper and Snapple are key brands in CSAB’s portfolio (hence the tongue twisting name for the drinks business spin off), the unit makes a wide range of beverages including juice and water. CSAB’s market share is a relatively modest 17%, but it is America’s third biggest beverage group after Coca-Cola and PepsiCo.
- US energy drinks market overtakes Thailand
The worldwide energy drinks market grew 17% last year to 3,431 million litres, according to the latest report from global food and beverage consultancy Zenith International. Although per capita consumption is still highest in Thailand, home of the energy drinks concept, the US now has the highest overall volume sales, driven by five top brands: Red Bull, Monster, Rockstar, Full Throttle from Coca-Cola and SoBe No Fear from PepsiCo. US consumers drank 990 million litres of energy drinks in 2006, 47% more than in 2005 and 200 million litres more than their Thai counterparts. “If the level of activity and product development in the US continues, it could represent 45% of worldwide volume in five years,” commented Zenith Research Director Gary Roethenbaugh. “We also expect to see double digit growth in East Europe and the Middle East, with Latin America, Australasia and West Europe making good gains too.” The increasing popularity of energy drinks, coupled with a widening choice of products, could raise Americans’ average consumption from the current 3 litres per person to 8 litres by 2011. However, this would still be less than Thailand, where consumption has remained about 11.5 litres per person for some years. Other nations in contention for a place among the top five energy drink consumers include Austria, Ireland, New Zealand, Slovenia and Kuwait. “Although US growth has been dominated by male-oriented energy drinks, manufacturers there are successfully tapping into a wider trend towards healthier products, and consumers are enjoying a new wave of all-natural energy drinks with multiple health benefits,” added Roethenbaugh. “Manufacturers are also extending their brands to appeal to a wider range of consumers.” Zenith expects each global region to generate growth over the coming years, with total volume increasing almost 15% annually to top 5,700 million litres in 2011. North American is likely to account for almost half this growth. Zenith’s report, Global Energy Drinks 2007, notes that the world’s energy drinks markets are at greatly varying stages of development. Asia Pacific, for example, reveals a very diverse picture that includes the mature markets of Thailand, Vietnam, Indonesia and Taiwan alongside the emerging markets of China and India. For the purposes of the study, Zenith’s definition of energy drinks excluded glucose-based products and sports drinks.
