Food Business News - October 23, 2012 - (Page 60)

Beverage Functional Ingredients Trends An shot in the arm The energy shot category is on track to achieve $1.9 billion in sales in 2012 he energy shot is a difficult product to categorize, falling somewhere between a beverage and a supplement. The category is also one of the fastest growing parts of the beverage market, and there is evidence that the segment — populated by tiny bottles — has big potential. “The latest data from Mintel (International, Chicago) suggest that the energy shot segment will grow by 116% from 2011–2016,” said Jennifer Stolte, senior director of marketing for Celestial Seasonings, a business unit of the Hain Celestial Group, Melville, N.Y. “Strong growth projections like these show that there is significant unmet demand for energy shots, and we want to provide these types of products in the way our consumers prefer — naturally.” And that is why Hain Celestial recently launched an T additional product under its Natural Shots banner — this one made from green tea. The new products are single-serve, shelf-stable energy shots that combine green tea with B vitamins and ginseng. Enerji green tea shots join Kombucha energy shots in the Celestial Seasonings Natural Shots product line, which was first introduced in 2011. The company hopes the wellestablished health halo that hovers over the Celestial Seasonings brand, with its broad line of teas, will provide a strong point of differentiation in a category dominated by one big brand. Living Essentials L.L.C. has nearly 90% market share in the energy shot segment with its 5-Hour Energy brand, said Jenny Zegler, beverage manager with Mintel international. The research firm completed a report this past June that looked at energy beverages, energy shots and energy mixes, and as Ms. Stolte noted, it has projected continued growth for the category. “Sales were at $1.6 billion a year through March, and we expect they will reach $1.9 billion for the entirety of 2012,” Ms. Zegler said. “We project that by 2016 that will grow to $3.4 billion.” To some extent energy shots, which are sold in 2-oz and 3-oz bottles and consumed at room temperature, are an outgrowth of energy drinks, where Red Bull and Monster are the dominant brands. However, their merchandising and demographic appeal are also reminiscent of caffeine pills, which 60 FOODBUSINESS NEWS ® October 23, 2012

Table of Contents for the Digital Edition of Food Business News - October 23, 2012

Food Business News - October 23, 2012
Private label penetration forecast to grow in U.S.
Softer demand slows rate of Nestle sales growth
Drought’s impact becomes clearer
Table of Contents
Web Contents
Editorial - Food issues dampened before election
Culver acquisition boosts B&G third-quarter income
Foreign exchange rate cuts into McDonald’s earnings
Structural changes cut into PepsiCo sales in third quarter
Legislation proposed to track antibiotic use on farms
Dean Foods posts preliminary WhiteWave-Alpro results
California poultry processor files for Chapter 11 protection
Peapod testing virtual grocery stores in the Northeast
Shell egg prices push Cal-Maine income up sharply
ConAgra to close pork processing plant
Cereal Partners Worldwide to reduce sugar, sodium
Frozen food sales projected to remain sluggish
New food safety effort targets consumers
ConAgra Foods looks to heighten focus on nutrition addition
Cholesterol profile of U.S. adults improving
Food and beverage C.P.I. increases in September
Strong China results boost Yum! earnings
Global Greek yogurt introductions accelerate
Sunland recall reverberates throughout the industry
JBS USA has option to acquire XL Foods
Washington - F.D.A. issues guidance for food facility registration
Sports Nutrition - Broadening the appeal for sports nutrition products
Ingredient Innovations - Ushering in the next generation
Convenience Store Trends - On-the-go gourmet
Beverage Business News - Looking for a Pepsi rebound
Old Orchard debuts frozen sweet tea line
Red Bull to add fruit-flavored energy drinks
Lawsuit takes aim at New York’s 16-oz beverage rule
Coca-Cola profit climbs on volume growth
Beverage industry embraces calorie counts on vending machines
Journal report links sugary beverages to obesity
Tingyi partnership poised for flight
Beverage still tops at Pepsi...barely
Beverage Trends - An (energy) shot in the arm
New Food Products
Ingredient Market Trends - CME Group to acquire the K.C.B.T
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - October 23, 2012