JUICE,TEA & WATER
Boosting the Benefits
by Julie Cook Ramirez
Contributing Editor
Contributing Editor
Health-minded consumers are seeking more bottled juices, teas and waters — especially those that offer a little something extra.
Despite the publicity
surrounding obesity in the United States, the general consensus across the
food and beverage industry is that the country is in the midst of a renewed
interest in healthfulness. Perhaps nowhere is this more evident than in the
juice, tea and water category.
That’s not surprising, of course, considering
the category’s very existence depends upon people seeking to improve
their health by downing a bottle of their favorite flavored elixir. Still,
manufacturers are convinced that consumers are ready to send soft
drinks packing in favor of healthier options.
“People do a lot of things to try to live
better, longer, healthier lives,” says Bruce Langer, president,
Langer Juice Co., City of Industry, Calif. “Switching from soft
drinks to juice or juice-based beverages is consistent with
that.”
Increasingly, there is a sense that consumers are
turning their backs on sugary, carbonated soft drinks. For proof of that
trend, you need look no further than Atlanta-based Coca-Cola Co., whose
recent acquisitions serve as evidence that the company has recognized that
the writing is on the wall. In February, the company announced its
intention to purchase Fuze Beverages LLC, maker of Fuze brand enhanced
juices and teas. Then in June, Coke completed its acquisition of
Glacéau, maker of VitaminWater, a hot commodity that racked up a
120.8 percent increase in dollar sales over the past year, according to
data from Chicago-based Information Resources Inc. (IRI).
“This acquisition fits perfectly within our
focus on our North American business and our belief that, alongside our
sparkling beverage leadership, an expanded active lifestyle business will
greatly enhance our still beverage lineup,” says Muhtar Kent,
Coke’s president and chief operating officer. “We are moving
full-speed ahead to fully leverage Glacéau’s growth potential,
first in the United States and then around the world.”
Last year, Beverage Partners Worldwide, a joint
venture between Coca-Cola and Nestlé S.A., introduced Enviga, a
sparkling green tea containing the “optimum blend” of green tea
extracts (EGCG), caffeine and calcium for burning calories. Coke chief
scientist Rhona Applebaum says Enviga actually creates a negative calorie
effect — that is, a consumer burns more calories as a result of
drinking the product than they acquire from drinking it — a claim
that has come under fire from industry watchdogs.
This spring, Coke also announced the launch of Dasani
Plus vitamin-enhanced flavored water beverages. Three varieties, each
containing zero calories, are currently available: Refresh & Revive
(kiwi strawberry), Cleanse & Restore (pomegranate blackberry) and
Defend & Protect (orange tangerine).
While it would be easy to view Coke’s expanding
presence in the category as making it increasingly difficult for companies
with smaller marketing budgets to compete, Langer actually views it as a
positive for everyone. “I think it means there’s going to be
shelf space dedicated to the category and I think greater awareness and
innovation, too,” he says.
Awareness of the category already seems quite high.
Sales of bottled water soared 15.5 percent in dollars and 13.3 percent in
units in supermarkets, drugstores and mass merchandisers, excluding
Wal-Mart, during the 52-week period ending June 17, 2007, according to IRI.
Meanwhile, overall category sales of refrigerated juices and juice
drinks rose 4.4 percent in dollars, but fell 8.5 percent in units. Those
seemingly disparate figures could be indicative of the growing interest in
so-called super juices — pomegranate, goji berry and açai, for
example — which promise an ultra-healthy punch of goodness, along
with an ultra-healthy price tag, in many cases.
“The more educated people that are more in tune
with what they should be consuming are definitely looking at these products
because of the benefits that they perceive they can get from them,”
says Jim Lesser, director of marketing, Oakhurst Dairy, Portland, Maine.
Controversial Combos
While she concedes that scientific evidence definitely
points toward the healthfulness of such “exotic” juices, Sue
Taylor, director of nutrition communications for the Washington, D.C.-based
Juice Products Association, cautions processors to tread lightly when
making specific health claims with regard to their products.
“There’s a very fine line between what you
can say and what the FDA will allow you to say,” Taylor says.
“Without significant substantiation that almost borderlines on
getting an FDA health claim, you have to be cautious because no food is
going to cure anything.”
That said, heavy media coverage of so-called
“super fruits” has a growing number of consumers convinced they
can drink their way to health. Unfortunately, the fact that such juices
command a high price has led some juice companies to engage in unscrupulous
activities, charges Langer, who accuses some of his competitors of duping
their customers — that is, selling product labeled as 100 percent
pomegranate that is anything but. Langer says he first became aware of the
problem when he and some colleagues were tasting competitors’ juices
and began picking up hints of other juices in what was supposedly 100
percent pomegranate juice. Subsequent lab tests confirmed their suspicions,
he says.
“Adulterated pomegranate is a current and
widespread situation. You’ve got companies labeling their product as
100 percent pomegranate juice, when the lab report shows that there are
other juices in it and sometimes added sugar,” Langer says.
“Hopefully, the companies that are doing this will fall out, but this
has the potential to really shake consumer confidence in pomegranate
juice.”
While the company remains committed to the pomegranate
proposition, Langer has recently announced plans to extend its chilled line
to include new juice blends featuring the other super fruits: açai
and goji berry. The company also announced a line extension on its Enhanced
H20
line. Available in Power Pomegranate and Detox Dragonfruit, New
Enhanced H2O Zero contains no calories or sugar. Both the chilled line and
the Enhanced H20 Zero products are sweetened using organic cane juice. According
to Langer, the human body metabolizes cane juice differently, thus avoiding
the negative effects of high-fructose corn syrup.
When it comes to organic juices, demand is high,
although Matt McLean, chief executive officer and founder of Uncle
Matt’s Organic, Clermont, Fla., says the organic segment faces
somewhat of a challenge because the juice category is already perceived as
healthy, leading many consumers to believe they don’t need to go
organic to reap health benefits. His company recently rolled out two new
organic orange juice blends: Orange Pineapple Banana and Orange Peach
Mango.
Meanwhile, in La Farge, Wis., Teresa Marquez, chief
marketing officer for Organic Valley Family of Farms, reports that her
company is “selling just about all the orange juice we can procure
right now domestically.” Organic farmers have approached the company
about expanding its line to include the more exotic “super
fruit” kinds of juices, but Marquez says Organic Valley isn’t
quite ready to get into that arena just yet.
Meanwhile, Miriam Erickson Brown, president and CEO of
Des Moines-based Anderson Erickson Dairy, isn’t sure whether her
company will get involved with those kinds of juices at all. In the case of
AE, Brown says it’s the company’s Midwestern location holding
it back.
“The moment you take a dive into pomegranate and
some of those other juices,” she says, “you’ll lose your
customer base in the Midwest.”
To a ‘Tea’
One product that seems to have coast-to-coast appeal
is bottled tea. The refrigerated tea category continues to rack up
phenomenal sales increases and this year is no exception, with dollar sales
up 26.9 percent and unit sales up 18.2 percent, according to IRI.
Seth Goldman, president and “Tea-E-O” of
Bethesda, Md.-based Honest Tea, says the logic behind tea’s
popularity is simple: “There’s no question the healthy
properties of tea have helped fuel a lot of the growth, as more and more
research comes out about the antioxidants in green tea and the polyphenols
in black tea and how good for the body they are.”
While green tea remains at the heart of Honest
Tea’s offerings, the company’s latest introductions include
varieties like Pomegranate White Tea with Açai and Pomegranate Red
Tea with Goji Berry. The company also recently rolled out Honest Kids, a
line of organic kids’ drinks packaged in portable pouches. Available
in three varieties — Berry Berry Good Lemonade, Goodness Grapeness
and Tropical Tango Punch — Honest Kids contain less than half the
sugar and calories of similar juice pouches currently on the market. Asked
whether Honest Tea has plans to develop a line of kids’ teas, Goldman
says he doesn’t see the need to do so at this time.
REFRIGERATED JUICE AND DRINK SALES* | ||||
$ Sales (In Millions) |
% Change vs. Year Ago |
Unit Sales (In Millions) |
% Change vs. Year Ago |
|
Total Category | $4,298.4 | 4.4% | 1,591.1 | -8.5% |
All Other Fruit Juice | 56.4 | -21.6 | 12.4 | -13.9 |
Apple Juice | 10.5 | 10.4 | 5.0 | -3.4 |
Blended Fruit Juice | 273.0 | 10.8 | 92.8 | 3.7 |
Cider | 53.0 | 3.9 | 18.7 | 1.7 |
Cranberry Cocktail/Drink | 8.1 | 42.2 | 2.8 | 30.1 |
Cranberry Juice/Blend | 2.0 | 69.3 | 0.5 | 91.1 |
Fruit Drink | 692.1 | -1.6 | 381.4 | -10.6 |
Fruit Nectar | 20.3 | 6.5 | 7.8 | 1.4 |
Grape Juice | 5.7 | 44.9 | 2.1 | 41.7 |
Grapefruit Juice | 69.7 | 4.0 | 21.0 | 1.0 |
Juice and Drink Smoothies | 125.9 | 47.2 | 43.2 | 41.5 |
Lemon/Lime Juice | 6.8 | 4.5 | 4.8 | -1.0 |
Lemonade | 168.5 | 21.7 | 89.5 | 6.6 |
Orange Juice | 2,760.5 | 3.7 | 895.9 | -12.0 |
Pineapple Juice | 14.5 | 11.3 | 5.2 | 9.9 |
Vegetable Juice/Cocktail | 29.3 | -6.7 | 7.9 | -16.2 |
* Total sales in supermarkets, drug stores and mass merchandisers, excluding Wal-Mart, for the 52-week period ending June 17, 2007. SOURCE: Information Resources Inc. |
TOP 10 INDIVIDUAL REFRIGERATED TEA BRANDS* | |||||
$ Sales (In Millions) |
% Change vs. Year Ago |
Dollar Share |
Unit Sales (In Millions) |
% Change vs. Year Ago |
|
Total Category | $258.8 | 26.9% | 100.0% | 138.6 | 18.2% |
Turkey Hill | 64.3 | 14.1 | 24.9 | 35.1 | 11.6 |
Red Diamond | 31.2 | 34.0 | 12.0 | 15.2 | 23.2 |
Pom Tea | 29.8 | 496.1 | 11.5 | 10.0 | 393.7 |
Private Label | 25.3 | 17.1 | 9.8 | 19.5 | 17.3 |
Bolthouse | 17.7 | -2.1 | 6.9 | 5.5 | -7.2 |
Nestea | 15.1 | 40.3 | 5.2 | 7.0 | 37.6 |
Milo’s | 12.1 | 14.0 | 4.7 | 5.7 | 5.3 |
Swiss Premium | 10.0 | 39.3 | 3.9 | 6.6 | 32.7 |
Arizona | 8.6 | -7.2 | 3.3 | 5.7 | -2.4 |
Arnold Palmer Tee | 4.6 | 111.8 | 1.8 | 2.5 | 94.9 |
* Total sales in supermarkets, drug stores and mass merchandisers, excluding Wal-Mart, for the 52-week period ending June 17, 2007. SOURCE: Information Resources Inc. |
TOP 10 INDIVIDUAL CONVENIENCE/PET STILL WATER BRANDS* | |||||
$ Sales (In Millions) |
% Change vs. Year Ago |
Dollar Share |
Unit Sales (In Millions) |
% Change vs. Year Ago |
|
Total Category | $3,880.4 | 15.5% | 100.0% | 1,523.0 | 13.3% |
Private Label | 581.7 | 21.7 | 15.0 | 222.9 | 12.3 |
Aquafina | 520.3 | 8.7 | 13.4 | 181.9 | -2.5 |
Dasani | 460.9 | 17.0 | 11.9 | 175.6 | 3.3 |
Poland Spring | 266.8 | 15.7 | 6.9 | 76.2 | 7.8 |
Glacéau VitaminWater | 246.4 | 120.8 | 6.4 | 188.7 | 113.3 |
Propel | 195.2 | -2.4 | 5.0 | 104.5 | 5.0 |
Arrowhead | 180.5 | 9.4 | 4.7 | 55.2 | 4.4 |
Deer Park | 147.3 | 17.1 | 3.8 | 34.8 | 12.9 |
Crystal Geyser | 110.0 | 35.2 | 2.8 | 38.4 | 22.3 |
Nestlé Pure Life | 107.8 | 55.4 | 2.8 | 34.1 | 52.1 |
*Total sales in supermarkets, drug stores and mass merchandisers, excluding Wal-Mart,for the 52-week period ending June 17, 2007. SOURCE: Information Resources Inc. |