SoNu Beverages has signed a distribution agreement with Banko Beverage Company, gaining access to the Pennsylvanian market. The move comes as SoNu launches its eponymous vitamin-enhanced flavoured bottled water brand on 30 January 2008. SoNu Chief Operating Officer Scott Abramson said: "Our goal is to make SoNu Water the leader and cornerstone of Banko Beverage Company's non-alcoholic division." A representative of Banko, Terry Heffner, added: "Taking on SoNu Water was a no-brainer for us. The product's designer packaging and high-quality formulation, coupled with the company's service strategy and smart marketing programmes, provide a recipe for a profitable relationship." In November 2007, SoNu Beverages had already partnered with the distribution company Two B's to expand its presence into the New York City and Long Island areas in the US. Abramson added: “Two B’s fleet of over 18 SoNu-branded trucks, an expanded force of experienced sales representatives solely dedicated to SoNu, and their long-standing relationships servicing more than 14,000 key accounts, will provide SoNu Beverages with the necessary tools and a unique opportunity to build significant brand exposure.”

French company Delo has launched a new product range dubbed the 'booster-cap' to spice up our daily water quota and provide a dose of wellness at the same time. Launched in December 2007, the booster-caps combine the "vitality of water and the power of herbs", blending together a range of herbs into a rich liquid format for mixing with water. Each of the five variants boasts a different health or wellbeing focus. The herbs and plant extracts are gathered and then flash-processed to reduce oxidation and preserve their individual properties. The caps are designed to be screwed on to any 50cl bottle filled with water, whether natural, filtered or simply tap water, releasing the liquid contents, which are then mixed into the water. The company recommends consuming one booster-cap daily, ensuring an "immediate effect and in-depth results". The caps are described as "compact, playful, universal and great for on-the-move", ensuring consumers can enjoy them anytime, anywhere! The range was developed by Michèle Gay in conjunction with pharmacists and phytotherapists (specialists in the use of plants or plant extracts for medicinal purposes – particularly those that are not part of the normal diet). The 100% organic range consists of five variants: Energy offers an "energising taste and stimulating effect", comprising guarana, acerola and ginseng; Sexy provides a "tropical taste and fizzy effect", and blends ginger, galangal, cardamom and bee balm; Balance boasts a "refreshing taste and wellbeing effect" through a blend of peppermint, nettle, ash tree extract and French vanilla; Destress provides a "fruity taste and relaxing effect", featuring hawthorn, orange blossom, walnut and calamint together with verbena; Fitness brings a "smooth taste with a lightness effect" through a combination of yerba-mate, green tea, mango, kiwi, litchi, rosemary and liquorice. Product founder Marguerite Deperrois commented to functional drinks that the response to the launch has been excellent both at a distributor and consumer level, and that additional formulas are already in the pipeline, together with an online advertising campaign. Delo hopes to expand distribution to major European capitals in the near future. The recyclable caps can also be bought through the company website. Also available are 50cl mixer bottles for making up your Delo fortified-water at home.

There is further evidence of Groupe Danone’s disenchantment with its joint ventures in China after the French food and beverage giant withdrew from its JV with a second Chinese dairy producer – and the long-running dispute between Danone and its Chinese beverage partner Wahaha dragged on into a new chapter. Danone said it had agreed with the country’s top dairy company, Mengniu, to end their year-old deal to sell yogurt in Inner Mongolia, Beijing and Ma’anshan. According to Danone, the co-operation had not developed as planned. However, Mengniu will continue to work with Danone as a co-packer and distributor. In October, Danone also sold back its 20% stake in Shanghai’s Bright Dairy, and ended a 15-year brand and technology agreement with the company. Meanwhile, there is still no sign of the Wahaha dispute being settled. In the latest development, Danone is being sued for $1.4 million damages by Wahaha’s labour union, which represents about 7,000 workers in the group’s joint ventures with the French company, and a further 10,000 workers in non-JV operations. The union accuses Danone of holding shares in rival companies, and harming Wahaha’s reputation by “distorting facts” through the media. Danone dismissed the complaints as “groundless,” and said it hoped to reach an “amicable solution.” The Wahaha dispute began when Danone accused the group’s founder, Zong Qinghou, of using other companies to sell products rightly owned by the JV (which is 51% owned by Danone). Zong denied the charge, and in turn accused Danone of trying to take control of the Wahaha brand, a market leader in bottled water, tea and other beverages. Danone was “shocked” by the ruling of a Chinese arbitration tribunal, earlier this December, that Zong was entitled to use the brand outside the JV. Although Danone refuted the tribunal’s finding, the company offered to suspend its own legal actions against the Wahaha group, and appealed to Zong to make a move towards reconciliation. “We urge all the parties to avoid taking any actions which will further intensify or complicate the situation,” said Danone in a formal statement. In November, Danone’s management said that its troubles in China had changed its view of how to grow in such emerging markets. In future, it is expected the company will seek to set up or acquire its own operations, rather than going into business with a local partner. Danone has just entered the Chinese baby food sector through the Dumex brand, which it acquired with its takeover of Dutch manufacturer Numico.

In the UK, PHS Waterlogic is supplying Monmouthshire County Council and facilities management company Monitor FM with mains-fed water coolers. Owned and operated by Monmouthshire and Torfaen County Borough Councils, Monitor FM said that the decision was taken first and foremost with environmental benefits in mind. “We constantly strive for environmental improvement on behalf of Monmouthshire County and Torfaen County Borough Councils,” said Facilities Manager at Croesyceiliog County Hall, Garth Brookfield. “We recognise the need for environmentally sustainable action across every aspect of our work, and we judge everything we do by stringent environmental standards. “With PHS Waterlogic mains-fed coolers, we were able to maintain our commitment to reducing the carbon emissions of our operations without sacrificing the quality of water supplied to our employees.” Monitor FM was awarded Green Dragon level 5 certification in 2005, the highest level of environmental standard programme in Wales, indicating continual environmental improvement. The company has implemented an objective of a 15% reduction in energy use across its operations, in addition to its sustainable procurement policy already in place. Further factors such as water quality and good customer service also influenced the councils’ choice of water cooler solution, along with the option to purchase the coolers outright and sign up for a total care package. “When we initially specified the coolers, purity and quality of the water were the major factors of our decision, outside the environmental issues,” explained Building Surveyor for Monmouthshire County Council, Lyn Moore. “Now, we wouldn’t be without them. The quality is excellent and the service is hassle free, with all repairs, cost of parts and twice yearly service included.”

Lugging heavy bottles of water back from the supermarket could be a thing of the past claims Water (for Work and Home), as the UK water cooler company prepares to launch its range of models for the home. The line includes floor-standing and countertop units that can hold 10, 12 or 19 litres of natural Kent water, including the machine pictured, which the firm believes is set to become the latest must-have kitchen gadget. “We are all used to grabbing a cup of chilled water from the office cooler, so why not at home?” explained Managing Director Ben McGannan. “Coolers free up space in the fridge normally taken up by bulky plastic bottles. "Water is essential for our health and wellbeing. Research has shown that drinking the recommended eight cups of water a day can significantly reduce the risk of developing certain cancers (particularly colon), and it helps to maintain healthy kidneys too. Hydration also has a big impact on mental performance and learning, so it’s particularly important for children.” Following product trials carried out by staff at home, which brought back primarily positive feedback, a specific age group seemed especially taken with the units. “Children particularly seem to adopt the water cooler habit, even encouraging their friends to use the cooler when they visit,” said McGannan. “We think it’s because they see it as a fun thing to do, and of course it’s easier for small hands to operate a cooler than a tap over the sink. The firm recently debuted the range at a Kent shopping centre, where passers-by were shown the coolers in action and encouraged to take advantage of a free seven-day trial, as well as an on-the-spot health check. A series of flexible packages have been devised specifically for the home user, which start at £6.99 a week.

Brita Water Filter Systems has signed a distribution agreement with vending and catering parts and consumables supplier, Abbeychart. The partnership will see the two companies focus on supplying Brita water filter products to the catering sector using Brita‘s technical filter expertise and Abbeychart‘s in-house sales support and customer service capabilities. “We are committed to improving the accessibility of Brita water filter products to all, and are delighted to be working with Abbeychart to do this,” said Brita Sales Director Anthony Spruce. “With many synergies between our two organisations, we look forward to a fruitful and enjoyable partnership.” Abbeychart Managing Director, Steve Slark, added: “We recognise the quality and reputation offered by the Brita brand and products, and are pleased to be including them as a key part of our range. With Abbeychart’s field sales strength and years of component distribution experience in the beverage market, the addition of Brita‘s water filter products is a logical and exciting development.” Brita has been involved in the research and development of water filtration for over 40 years. Its commercial range of products include water filters for use with water coolers, as well as larger systems for high volume catering sites.

Golden Globe nominee, actress Glenn Close – star of the hit series Damages – now has a starring role in the USA’s National Milk Mustache got milk? campaign. No stranger to success, Close is a five-time Academy Award nominee, three-time Tony Award winner and Screen Actors Guild Award, and Emmy Award winner. As the superstar actor, producer and mother that she is, Close needs her energy. She knows that drinking three glasses of low fat or fat free milk every day, combined with staying active and maintaining a healthy diet, will help her stay fit, lean and looking her best. The new ad helps kick off a new initiative called The Campaign for Healthy Weight. The new campaign encourages women to forgo fad diets and focus on simple, lifelong changes to promote health and weight management. The ad copy reads: "Look Close. To perform my best, I need to give my body the attention it deserves. That's why I eat right, exercise and drink milk. Studies suggest the nutrients in 3 glasses of low fat or fat free milk a day can help you maintain a healthy weight. And the protein helps build muscle for a lean body. You'll see."

Marco Beverage Systems has developed a water boiler range that it claims uses 15% less energy than standard water boilers. Available from spring 2008, the Ecoboiler line incorporates an eco mode reduced water tank option for use in quieter periods that heats a lower volume of water with the aim of saving on energy, as well as running costs. Further features include energy efficient insulation, a compact footprint compared to other boilers of the same capacity, an attractive design and the possibility of personalising the machine’s livery to meet clients’ individual design requirements. All units also include Aqualsolate, a safety feature that positively separates water from the electrics, and EzDscale to simplify the descaling process. Available in 5 and 10 litre push button models and 5, 10, 20 and 30 litre tap models, the range is backward compatible with all Marco parts with easy access being provided via the front panel. The line complies with new WEEE regulations and has disassembly instructions for end of life and recyclable parts. It will be on display on stand S1610 at Hotelympia 2008 in London in February.

It's hard to imagine the Jones Soda Co of Seattle, America’s most idiosyncratic beverage manufacturer, without Peter van Stolk. He launched the offbeat soft drinks line on an unsuspecting West Coast market in 1996, and for all Jones’ artsy labels and surprising flavours, van Stolk personally gave the brand much of its distinctive identity. Nevertheless, this January he steps down as Chairman and CEO of Jones, although he will remain as a Director. Control of the business is being shared on an interim basis by two other Board members, Scott Bedbury as Chairman and Steve Jones as Chief Executive, while a new CEO is sought. According to van Stolk, he told the Board earlier in 2007 that he planned to quit at the end of the year, but this news was never made public. He goes at a crucial point in Jones’ fortunes. He boosted the brand from local to national celebrity, winning publicity with outrageous new flavours such as Turkey & Gravy for Thanksgiving, as well as more significant innovations such as switching the entire line to cane sugar sweetening rather than high fructose corn syrup. Jones shares soared when van Stolk announced the company was climbing to the next level – packaging its drinks in cans rather than the brand’s signature glass bottles, and staging a full scale national rollout of the core flavours in retailers across the country. However, the rollout did not go as smoothly or rapidly as planned. As well as delays in distribution, Jones was hit by heavy costs including slotting fees. The company’s stock plunged in 2007 when Jones broke the bad news, reporting stark quarterly results. Investors’ disappointment wasn't softened when Jones’ local newspaper, the Seattle Post-Intelligencer, reported in August that van Stolk and other insiders, including Bedbury and Jones, sold company shares worth $6.5 million before the price fell. Although the Securities and Exchange Commission (SEC) apparently looked into the sales, and decided no action should be taken against Jones or its officers, the company still faces lawsuits brought by disgruntled shareholders. In November, Jones reported further losses, despite evidence that the national rollout is gathering momentum. Sales in the third quarter more than doubled to 1.56 million 288oz (8.5 litre) cases, while net revenue after the deduction of $1.3 million in promotional allowances and slotting fees rose 15.1% to $11.7 million. However, Jones’ gross margin declined to 28.6% from 35.3% in the third quarter of 2006, and the company finished with a net loss of $1.5 million or $0.06 per share, compared with a profit of $195,000 in 2006. “During the third quarter, we decided to incur higher than planned promotional allowances and slotting fees associated with our significant expansion into the CSD market,” van Stolk explained. “While the results are below plan for the quarter, and we are disappointed with our recent performance, we believe that in the long term, these investments and initiatives support our strategy to achieve increased shelf space at retail, and heightened awareness of our brand and products.” It was just one month later, at the beginning of December, that van Stolk’s abdication as CEO and Chairman was announced. “I’ve worked hard this past year to lay the foundation for future growth, with an increased product line and national distribution at the retail level,” said van Stolk. “Recruiting a strong and seasoned CEO is the next step in that process and utilising the experience of Scott and Steve in that effort will help ensure a successful outcome. “During the upcoming weeks, I'll be focused on the transition, and look forward to working with the Board to continue to grow the company to bring it to its full potential. It has been a true honour being so intimately involved with such a special company like Jones Soda.” Steve Jones, currently responsible for the day to day operation of Jones Soda, spent 17 years in senior management roles with The Coca-Cola Company, latterly as Chief Marketing Officer. He left Coke after a management reshuffle under Douglas Daft in 2003 and set up a consultancy. He joined the Board of Jones Soda in 2003. Scott Bedbury is also an experienced marketer who now runs a consultancy. He formerly worked for Nike, where he launched the influential “Just do it” campaign, and then joined Starbucks as Senior Vice President of Marketing and Brand Development. Both men plainly have the necessary business savvy to guide Jones through the present difficult phase. However, it seems unlikely that either will provide the same charismatic brand of leadership as van Stolk. Mike Ramey

There’s been a surge in consumer interest in the intrinsic health benefits of whole fruit and fruit juices vs extracts, and we’re going to increasingly see novel fruit and beverage combinations in dairy, probiotic and soy categories. Through nutrigenomics, gene-specific foods are being identified for the part they play in gut health and cardiovascular disease. Cultivars are now being bred for consumer-driven attributes, including specific health claims, but with this opportunity comes a growing responsibility for substantiation. Many consumers view superfruits as any fruit that offers a health benefit beyond basic nutrition. While it is true that superfruits need inherent health novelty and convenience attributes, this isn’t enough without clever promotion and control of supply. There’s a certain paradox in that consumers appear more accepting of novelty in fruit than in other foods, and yet fruit-based beverage purchases are heavily influenced by traditional sensory attributes. It’s clear that regardless of novelty or function, consumers expect fruit and fruit-based products to deliver a pleasurable eating experience. HortResearch is currently examining a range of fruits, including Zespri Gold Kiwifruit, boysenberry, white fleshed peaches, red fleshed apple, blueberry, blackcurrant, kiwiberry, feijoa and tamarillo. Consumers know fruit is healthy, so we’re tapping into the marketing potential of that intrinsic health message by discovering, validating and promoting specific health benefits from fruit. To do this effectively, we believe it’s necessary to study many different aspects of human and food interaction – bioactivity, potential interactions and synergies in the food matrix, bioavailability and genotype (nutrigenomics). Health and well-being targets The next generation of health benefits include mental state and performance, physical performance and fitness, gut health and immunity. When looking at mental states, we’re considering mood, arousal, activation, vigilance, attention and sleep, motivation and effort, perception and memory and intelligence. For physical performance, we’re examining links between fruit compounds and endurance, energy supply, recovery and tissue growth. In gut health, we are examining activities of gut microbiota, intestinal wellbeing, bowel transit time and natural gut defence. Linked to this is our wider study of how fruit compounds can influence our immune functions. Promotion and product prototypes Today, snack foods compete head-on with fresh fruit. Time is increasingly precious to consumers, so it’s essential to serve fruit in a convenient format. We are going to see multi-delivery possibilities for fruit, including beverages, energy bars, yogurt, ice cream and other dairy, as well as soy products. Whatever the final format, promotion is critical – no matter how super your superfruit may be, if you don’t tell people why it’s great and make it instantly recognisable, authentic and available, then it won’t sell well. Breaking new ground requires a systematic approach. Cranberries and, more recently, pomegranates have both been highly successful in this regard, using science to reinforce their status with consumers as fruits with a specific health benefit. However, there can only be investment in promotion and research if this can be justified by the value of the product, and not simply dissipated across the whole industry. So the products that succeed will be those that are marketed by companies that have control of supply. For businesses interested in marketing a superfruit product, it’s important to visualise how superfruit can be incorporated into their offer, as this reduces risk. The size and growth potential of the target sector has to be assessed with demographics and psychographics of the target audience taken into account. Scientific testing and substantiation has to meet the need for claims in an increasingly regulatory environment. The best way to consider these issues is through the development of a prototype concept product. One such concept drink is Einstein drinksmart – a blueberry juice with microencapsulated fish oil as a source of omega-3, focusing on brain health with long- and short-term benefits. A quick-serve beverage that contains 1.5 servings of fruit per 30cl bottle, this product offers a first-to-market advantage in a high volume and value growth market. So the bar has been raised – it’s not enough to simply have fruit in your product. It needs to be a specific fruit offering a specific substantiated benefit. A superfruit.”

Boost Juice founder and CEO Janine Allis developed the concept of offering quick, affordable, healthy and natural snacks in her Melbourne garage to keep her three young sons energised. Today, all the company’s freshly squeezed and blended fruit juices and smoothies contain no preservatives, artificial flavours or colours and are at least 98% fat free. The business prides itself on the promotion of a healthy and active lifestyle mixed with an uncompromising addiction to fun. Two months after opening the UK’s first Boost Juice Bars on his own doorstep in Manchester and also Oxford, UK international owner and dyed in the wool Mancunian Richard O’Sullivan (above centre) formerly co-owner of the Millie’s Cookies chain, is adopting a ‘one store at a time’ sustainable strategy, to expand the soaraway success Australian Boost Juice brand in the UK. O’Sullivan and his lifelong business partner Mario Budwig plan to have between seven and ten Boost Juice Bars in the UK by the start of 2008, including in Manchester’s Piccadilly train station and at the Chill Factor indoor ski slope in Manchester. Boost Juice are also in negotiation to secure retail partners in London, confident that they will increase their partners footfall through the addition of their delicious business. Success and innovation Boost’s success so far is not only due to the innovative menu of high quality, healthy, fantastic juices, smoothies and crushes, but also a strong, fun brand and excellent customer service. Key to its success is the astute expansion strategy developed after over 20 years of experience expanding Millie’s Cookies across the UK. This strategy aims to test the brand in different indoor environments where customers are likely to want the product: shopping centres, railway stations, high streets and entertainment centres. By focusing on ‘one store at a time’, they can ensure that each bar is a success in its own right, and that lessons are learned and that expansion is sustainable. Richard O’Sullivan says: “We understand the business of running 300 square foot boxes. We owned the cookie category. People didn’t go to buy a cookie – they went for a Millie’s. I expect people will soon say, ‘I’m going for a Boost’.” O’Sullivan is passionate about Boost Juice Bars. Introduced to them by his daughter who was on a gap year in Australia, he has fallen for the ‘love life’ brand, and has even spent the Christmas holidays with its Australian founder Janine Allis and her family. “Boost ticks all the boxes for me," he says. "It’s a fantastic product, brilliantly marketed; a product for this time – it's healthy, it’s funky, it’s great music, it’s great staff, it’s full of young people. It’s all the things I want in my life!" It's this passion that offers Boost Juice its greatest competitive advantage, as O’Sullivan explains: “Many of our competitors are venture capital backed. Their horizon is get in, buy the market and get out. We have no interest in building to sell. We’ve done that. We want our business to be alive. That's a significant competitive advantage." Global phenomenon “Boost has experienced phenomenal growth in the last seven years and the brand is now the largest juice and smoothie chain in the Southern Hemisphere. There are more than 200 stores worldwide. Boost is operational in Australia (approximately 160 stores), UK, South Africa, Portugal, Chile, Indonesia, Singapore, Hong Kong, Macao, Estonia and Kuwait, and Boost will be moving into Thailand and Dubai soon. “Growing awareness about healthy eating and in particular, the health benefits of eating or drinking more fruit and vegetables are factors that have contributed to Boost’s success. However, there are dozens of juice and smoothie bars out there, which Boost continue to outperform due to their unbeatable and proven formula: ‘to die for’ healthy products, fantastic service delivered with an in-store vibe and the best class marketing and innovation. “Boost offers a healthy alternative to fast food – it’s a healthy meal in a cup, containing no artificial anything. Secondly, Boost’s ‘love life’ culture runs through every aspect of the business, with the company priding itself on the promotion of a healthy and active lifestyle with an uncompromising addiction to fun. “The most popular product is Mango Magic Smoothie, containing mango, banana, mango nectar, TD4 (to die for) vanilla yogurt and ice. The most popular juice is our ‘5 a day Juice’ containing the juice of two oranges, two apples, two carrots, celery sticks and one beetroot, plus a vita booster (multi-vitamins and minerals). “Boost has always worked with nutritionists to formulate their recipes, to ensure that the health benefits from delicious juices and smoothies are maximised. “As Shane Bilsborough – one of Australia’s leading nutritionists, and a Boost fan – said: ‘A smoothie with real fruit, yogurt and juice or milk acts as a great natural pick-me-up, or a freshly squeezed fruit or veggie juice can be a fantastic source of vitamins, minerals and antioxidants that still tastes great’. All Boost’s juices and smoothies are at least 98% fat free and contain nothing artificial whatsoever. “Boost also offers Boosters products to supplement a juice or smoothie. One example is the ‘Energiser’, which contains guarana, ginseng, and vitamin E. Boost sells shooters for that intense hit of goodness: including Açaí NRG shooter, and Wheatgrass shooters. “The TD4 low-fat yogurt in Boost’s smoothies has been specially formulated by Boost, and contains inulin, an oligofructose that is known as a prebiotic, as well as live cultures steptococcus thermophilus and lactobacillus delbrueckii. “And the big issue for juice bars? There are over 30 independents or multiples in the UK chasing the same retail sites, which invariably drives rents upwards. Many of the earlier entrants to the market are suffering from declining like-for-like sales due to the proliferation, and many have either ceased trading or have just become cafe’s that sell juice. “Boost aims to become the ‘world’s best-loved brand’ and Boost UK hopes to emulate the Boost Juice Bar phenomenon as Australia experienced it. Consumers won’t go for a juice or smoothie, they will go ‘for a Boost’. The plan is for Boost to be a household name with a Boost Juice Bar in every city in the country. This will of course mean there will be thousands of healthier people in the UK getting more of their five a day!”

Marks and Spencer Group Plc recently released an interim management statement for Q3 business 2007/08. The statement reveals that group sales increased 2.8%, with UK sales up 2%. Other figures included in the statement are: General Merchandise -0.7%; Food +5.1%; UK like for like sales -2.2%; General Merchandise -3.2%; Food -1.5%; and International Sales up 15.1%. Sir Stuart Rose, Chief Executive, said: “Market conditions became more challenging through November and December. We continued to drive footfall, and volume growth in General Merchandise was strong at 5%. Price deflation was 6%, reflecting our continued focus on offering customers better values. We held market share in General Merchandise at 10.6%(2) and in Food at 4.3%(3). “We didn’t discount in the run up to Christmas. Stock levels were well controlled over the period. We had a strong start to the Christmas Sale and sale stocks have now cleared. “Direct was strong, with sales from our website up 78%, reflecting further growth in customer numbers, transactions and conversion. International also performed well, with sales up 15.1% over the period. “We expect trading conditions to remain tough throughout 2008. We are well positioned with a strong product offer and better than ever values across our business. We now have 70% of our stores in the modernised format and a strong pipeline of new space for 2008 and beyond. Direct and International continue to make good progress. "Since 6 November, we have repurchased 1.18% of our shares in issue at a cost of £124.8m." Marks and Spencer Group Plc will report its 2007/08 Preliminary results and Q4 trading for the 13 weeks to 29 March 2008 on 20 May 2008.