Food Business News - June 7, 2011 - (Page 75)

Beverage Trends Enhancing Convenience, affordability and customization luring consumers to flavored waters Continued from Page 1 services for the B.M.C. And although growth was not dramatic, 2010 was a rebound year in that performance was up for value-added waters, he said. Enhanced waters continued to be the top performers and the largest category of valueadded waters. “It’s driven by consumer preference,” Mr. Hemphill said. “Brands that fall under the enhanced (segment) tend to be bigger brands, better performing brands.” Leading brands in the category are Glacéau’s Vitaminwater, a Coca-Cola Co. brand, and Propel and SoBe Lifewater, both from PepsiCo, Inc., Purchase, N.Y. “In general, from a consumer standpoint, these products, whether they are the flavored or enhanced, serve as a change of pace for a bottled water consumer who’s looking for greater variety,” he said. In keeping with behaviors inspired by the recession, consumers continue to look for the best value in addition to convenience when shopping for beverages. The new wrinkle in beverage product offerings is enabling consumers to customize plain water with powder or liquid flavorings and several products are at retail to fill this niche. MiO, developed by Kraft Foods Inc., Northfield, Ill., is a caffeine-free liquid flavoring that is sweetened with sucralose. The modern-looking container for MiO holds 24 servings, but consumers may use as much of the product as they want. The ability to personalize plain water seems to be resonating with the product’s core audience — millenials. “Millennials are accustomed to personalizing everything in their lives — from playlists on their iPods to the shows in the DVR list and even their sneakers,” said Tiphanie Maronta, brand manager, Kraft Foods. “Millennials are our consumer target and we offer them a distinct benefit of personalization for their beverage — add a little or a lot, it’s the ultimate way to personalize your beverage.” Kraft created a Facebook page for MiO and gave away , 100,000 samples in four weeks through the social network site. M Maronta said MiO Ms. has p performed beyond the com company’s expectations. “The U.S. consumes ov 170 billion servings over o water each year, of consisting of both bottled (a $10 billion market) and tap (on a consumption basis, three times the size of bottles),” she said. “We believe MiO represents the future of how people will drink their water and we are backing this initiative with a significant investment.” Powdered drink mixes are another option available to consumers that have been slower to catch on, according to a report from Mintel International, Chicago. “Drink mixes largely remain flat as consumers preferred the convenience of R.-T.-D. beverages,” Mintel said. “The segment needs more innovation, especially from brands that have proven their mettle in R.-T.-D. segments.” Fruit drink mixes were the strongest contributors to the drink mixes segment on a dollar growth rate basis, according to Mintel. Energy drinks had the highest growth rate among all types of drink mixes during 2008-10. Although powders overall have been underperforming in the market, they do have an edge over the R.-T.-D. products. “The advantage the powders have is obviously, on a price basis — they are much cheaper than ready-to-drink products,” Mr. Hemphill said. “With a particular consumer, a pricesensitive consumer, that would be a category that would resonate with them.” As for innovation, Kraft has turned to its Crystal Light brand as a launching point for water’s value Crystal Light Pure, powdered mixes that come in individual serving sizes. Since adding the line, Crystal Light Pure has made consistent gains in distribution, share and revenue, said Orion Brown, associate brand manager for Kraft. Ms. Brown said the product is aimed at women ages 25-54 who aren’t currently buying Crystal Light. “They regularly drink water (bottled or filtered) and are open to powdered drinks for iced tea mixes,” she said. “When this consumer thinks about flavored beverages, she typically doesn’t consider Crystal Light because she believes it’s artificial.” In 2011, the company added lemonade, mixed berry and tropical punch flavors to the line. “The positioning and value it brings to the consumer has helped to offset hurdles currently facing the category,” Ms. Brown said. BBN — Erica Shaffer June 7, 2011 FOODBUSINESS NEWS ® 75

Table of Contents for the Digital Edition of Food Business News - June 7, 2011

Food Business News - June 7, 2011
House bill cuts food safety funding
Enhancing water’s value
Wet weather muddies corn outlook
Web Contents
Editorial - Quest for ‘whole truth’ on food prices in France
MyPlate steps up in simple fashion
Breaking down MyPlate by food groups
Lawmakers look to halt sale of Lazy Cakes
McCormick to enter joint venture in India
Cal Pacifi c acquires SunOpta frozen fruit assets
Cargill Kitchen Solutions expanding in Iowa
F.M.I. hires new v.p. of food safety programs
Sealed Air to acquire Diversey for $4.3 billion
AdvancePierre Foods buys Barber Foods
Cargill acquires German chocolate business
Calavo to buy Renaissance Food Group
U.S. Foodservice acquires Great Western Meats
Clear sailing for Hain
Seneca Foods earnings down sharply in 2011
April red meat production down 4% from year ago
Sbarro now exploring alternatives to bankruptcy plan
Sherman Miller promoted to c.o.o. at Cal-Maine Foods
Nestle Health Science to acquire pharmaceutical maker
Emerging markets propel Heinz’s fi scal 2011 earnings
U.S.D.A. lowers cooking temp for some meat cuts
Campbell Soup focusing on volume sales, brand building
Buyout fi rm to acquire California Pizza Kitchen
Sanderson Farms suffers second-quarter loss
Wet weather muddies corn outlook
House bill cuts food safety funding
House panel seeks reduction in W.I.C. funding in fiscal 2012
Seeking middle market opportunities
Clear and concise
Ingredient solutions help keep it simple
Identifying natural partners for stevia
$tevia $upplier$ $eek profi t$ through international growth
Brain health for baby boomers
Bottled water volume, market share grew in 2010
Study recommends children should avoid energy, sports drinks
V8 introduces energy beverages
Smucker, Starbucks raising coffee prices
Nestle launches Aguas Frescas bottled beverage
Jamba introduces coconut water-based beverages
Enhancing water’s value
Gluten-free grains momentum
Balance Bar adds Café line
Pasta Prima launches two ravioli lines
Land O’Frost debuts Wrap Kit
Franz introduces artisan bread
Kraft launches Newtons Fruit Thins
Farley’s & Sathers adds ‘Splashers’
Häagen-Dazs introduces 2011 flavors
Mars updates Kudos granola bar line
Lifting of Russian export ban pressures world wheat market
Ingredient Markets
Packaging formats focus on convenience
Technology enables ultrasonic sealing
Ingredient’s small size aids in salt reduction
AKFP now offers arrowroot starch, pea starch
Tate & Lyle to resume U.S. sucralose production
Non-dairy ingredients achieve pareve certifi cation
Ad Index
Food Business in the News

Food Business News - June 7, 2011