Beverage World - May 2008 - (Page 39) Debuting in Brazil and Argentina is Pepsi’s 7UP H2Oh!, a carbonated flavored water. For its part, Coke offers Diet Coke Plus, a vitamin-enhanced sparkling beverage, Tab Energy and Enviga, yet another hybrid category— sparkling green tea. Sweeteners also have been an arena of innovation, especially on the low-calorie front. “Companies have used different sweetener products and formula blends to innovate,” says Hemphill, adding that experimentation has boosted volumes in the diet category. Indeed, Coke Zero has been one of Coca-Cola’s most successful product debuts. Formulated to taste more like regular Coke than Diet, Coke Zero is now in more than 55 countries. And in Latin America, the Zero family now includes Fanta Zero, Lift Zero and Fresca Zero. CHANGING TIDES Carbonated soft drinks’ volume share dropped below 50 percent this year, as enhanced waters and energy drinks flooded the market. LIQUID REFRESHMENT VOLUME, US MARKET Category CSDs Bottled Water Fruit Beverages Sports Drinks RTD Tea Enhanced Water Energy Drinks RTD Coffee 2007 Volume (millions of gallons) 14,707.4 8,822.4 3,899.5 1,355.1 875.1 546.5 302.6 45.1 % change 2006/07 -2.6% +6.9% -3.0% +2.5% +15.0% +30.6% +24.7% +1.4% 2007 Share of Volume 48.1% 28.9% 12.8% 4.4% 2.9% 1.8% 1.0% 0.1% SOURCE: BEVERAGE MARKETING CORPORATION Some smaller producers boast of using pure cane sugar in their CSDs as a point of differentiation, and a few companies are experimenting with agave syrup, a low-glycemic sweetener made from the same plant as tequila. “New CSD flavors often bring a volume lift, but it’s not sustainable,” says Hemphill. For that reason, many new flavors are limited-time releases, such as Pepsi’s Summer Mix, a cola with tropical flavors that came and went last summer. Coke Zero’s success led to Cherry and Vanilla flavors being added to the Zero lineup. Cadbury Schweppes debuted a Pomegranate 7UP and a Cherry Chocolate Diet Dr Pepper. “Most of these flavors have a short shelf life,” notes Hemphill, “but they bring some attention and news to the CSD category—and that’s good.” BW BEVERAGEWORLD.COM http://www.mskcovertech.com http://BEVERAGEWORLD.COM http://www.mskcovertech.com
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