Wellness Market Offers Healthy Sales Opportunites
By SARAH THEODORE
Getting healthy is a goal
of nearly every company in the beverage industry these days, and the goal
of most consumers — at least in theory. Datamonitor’s “Evolution of Global Consumer Trends”
report cited health as one of the 10 mega trends shaping the global food
and beverage industry. Ninety percent of consumers believe it is important
to take active steps to improve health, according to the London-based
research group, yet only 66 percent actually do so. Among American
consumers, a recent survey by ingredient company Tate & Lyle found that
76 percent of consumers indicated a balanced diet is important to healthful
eating, yet only 33 percent actually incorporate it into their own lives.
The shift to healthier products is a slow one, and
most consumers will never be all or nothing eaters, says Sheila McCusker,
author of Information Resources Inc.’s new report “Healthy
Eating Trends: Innovative Solutions to Evolving Consumer Needs.”
“It is a very slow, gradual evolution in terms of changes in purchase
patterns toward healthier foods,” she says. “What consumers do,
and will continue to do, is balance healthier and indulgent products. In
the course of a day, they may have a higher calorie drink and a light
drink.”
While the disconnect between belief and behavior might
make the task of selling healthful products difficult, it also presents
opportunities for beverage companies to deliver healthful products that are
both convenient and flavorful — in essence, healthy products that
don’t require consumers to make significant changes in their
behavior.
Healthy eating continuum (% of consumers) |
|||
Pay no attention to nutritional facts 24% | Eat the “good, the bad and the ugly” 30% | Eat healthy for reward with indulgent snacks 42% | Health nuts 4% |
54% of consumers take a more haphazard approach to healthful eating | 46% of consumers appear to have a healthful eating strategy | ||
Source: Information Resources Inc., based on findings from Parade Magazine’s “What America Eats” survey. |
McCusker says her research showed impressive growth
during the past year in light products, particularly juices, and future
growth opportunities in condition-specific products. “An area of
growth that is in its infancy now, but I think has the potential to explode, is targeting specific health benefits,” she says.
“Diabetes [is one area] but also heart health benefits. We’re
starting to see some innovation, but I think we’re going to see a lot
more.
“From a consumer-targeting standpoint,
we’re going to see a lot more niche marketing,” she adds.
“Everything from aging baby boomers to specific chronic health
segments.”
Personalized dieting
Obesity is the No. 1 health trend affecting the future
direction of the food and drinks industry, but research indicates that
jumping on the latest diet trend might not be the best way to capture this
market. Instead, it might be more advisable to help consumers devise their
own diet strategies. Tate & Lyle’s survey indicates almost half
the women who say they are on a diet have created their own diets. The NPD
Group found a similar trend when it conducted its annual Eating Patterns in
America study, with a little more than 30 percent of consumers reporting
they follow their own diet.
While the low-carb trend hit the skids last year,
low-sugar and the offshoot of low-carb, low-glycemic products, still have
potential for beverages.
“[Light juice] is an area that is exciting
because it is underpenetrated,” says IRI’s McCusker.
“Light juice products represent a very small portion of the juice
market, but they are growing by leaps and bounds.”
Old Orchard, Sparta, Mich., took advantage of light
juice’s potential in 2005 by rebranding its low-carb juice line as
Old Orchard Healthy Balance. The products contain 75 percent less sugar,
carbohydrates and calories than traditional fruit juices. Hansen’s
also added new Light Low Carb Juice Cocktails sweetened with Splenda. And
Ocean Spray last month announced new Diet Ocean Spray juice drinks,
scheduled to hit the shelves nationwide in March.
Traditionally, light products have been less popular
with ethnic consumers, but Tampico Beverages, Chicago, which finds its core
consumption among Hispanics, recently added lighter Tampico Plus to the
lineup.
“I get bombarded with articles about American
kids and adults being overweight, articles about poor bone health, articles
about the need for kids and adults to get more calcium, articles about
people not eating right and not getting the vitamins they need, and lastly,
articles about lactose intolerance and how it’s even more difficult
for lactose-intolerant individuals to get their required calcium and
vitamin D,” says Richard Ross, brand director at Tampico, explaining
the thinking behind the brand. “In addition, the levels of lactose
intolerance and diabetes are among the highest in the U.S. Hispanic
populations, our core consumer.”
Tampico Plus contains half the sugar typically found
in juice drinks as well as calcium and vitamins A, C, D and E. Unlike some
light drinks, the company made a conscious effort to not use the word
“diet” in the name.
“It’s much more than just a light or diet
type of product,” Ross says. “Though the calorie reduction is
significant at 50 percent, it is as much the
functional attributes that drive the ‘Plus’ value in the
consumer’s mind.”
Soft drink-makers perhaps have the most experience in
the diet beverage market, and during the past year have stepped up their
diet offerings. The Coca-Cola Co. expanded its diet soft drink offerings
with Diet Coke Sweetened with Splenda and Coke Zero. It freshened the
Fresca line with new packaging and Black Cherry and Peach flavors, punched
up its venerable Tab trademark with the Tab Energy diet energy drink, and
added Pibb Zero to the lineup. It also rolled out new Black Cherry Vanilla
Diet Coke early this year.
For its part, Pepsi-Cola Co. put renewed emphasis on
Diet Pepsi, making it the star of this
year’s Super Bowl ad campaign, and reformulated Pepsi One,
emphasizing its Splenda content. The company also lightened up some of its
non-carbonated brands such as the new Starbucks DoubleShot Light Coffee
Drink.
Cadbury Schweppes Americas Beverages revamped the Diet
Rite brand, adding Pure Zero to its graphics to communicate its zero
calories, zero carbs, zero caffeine and zero sodium message.
The sweet stuff
Beverage companies producing light beverages have a
number of sweetener options, some of which offer little or no calories, and
some that are designed to be digested more slowly for low-glycemic
products. Last fall, Cargill introduced Xtend Sucramalt, a fully
digestible, slow-release carbohydrate. The sweetener is derived from
sucrose and maltose, and is designed to
release carbohydrates into the bloodstream slowly for a lower glycemic
response.
Another sweetener hoping to break into the market is
Zsweet from Ventana Health Inc., San Clemente, Calif. The erythritol-based
sweetener is considered a natural zero-calorie sweetener. It is less sweet
than sugar — about 70 percent as sweet — but has fewer
calories.
Honest Tea, Bethesda, Md., used erythritol in its
soon-to-be-released zero-calorie green tea, making it the first organic
zero-calorie sweetened beverage on the market. The first flavor of Honest
Tea Zero is Tangerine Green Tea “With A
Hint of Sweetness.”
“It’s something we’ve been working
on in conjunction with Cargill, which developed the sweetener,” says
Seth Goldman, co-founder of Honest Tea. “As a small entrepreneurial
company, part of our role is to be out there trying the new ideas and
seeing what works. This is one that hasn’t been done before.”
To communicate the zero-calorie message, Honest Tea
used the USDA organic seal in the “O” and “Zero calories,
Zero artificial sweeteners, Zero compromise” on the label.
Palatinose Isomalt sweetener from Germany’s
Palatinit, has been dubbed the “wellness sweetener” by the
company for its sugar-like taste and low glycemic response. The ingredient
is a natural constituent of honey and sugar cane, and has a mild sweet
taste. It is fully digested and has the same caloric value as sucrose, but
is digested more slowly, helping to avoid peaks and lows in blood sugar and
blood insulin.
Orafti, Malvern, Pa., also is touting the low-glycemic
properties of its Raftilose prebiotic ingredient, when used as a sweetener.
In addition to lowering the glycemic index of a product, Raftilose can
replace dietary fat without sacrificing mouthfeel.
But cutting calories isn’t the only way into the
diet market today. Some diet drinks are going beyond low sugar, claiming to
actually help boost the metabolism and burn calories. Elite FX Inc.,
Boynton Beach, Fla., developed its Celsius brand as a calorie burner,
designed to accelerate the metabolism through its “thermogenic blend
of nutrients, caffeine and botanicals.”
Fuze Beverages’
Slenderize brand, and last year’s addition of Fuze Slender Energy
Drinks contain citrimax and l-carnitine to help boost the metabolism.
Airforce Nutrisoda Slender also is designed to manage appetite, burn fat
and speed the metabolism. Ingredients include garcinia cambogia,
l-carnitine and l-tyrosine, vitamins A, C, E and selenium. And Phytobase
Nutritionals Inc., Orem Utah, has introduced Bon-Java LeanCaffe with 950
mg. of hoodia gordonii in each cup to act as an appetite suppressant.
A booming market
As they have for decades, baby boomers are having huge
influence on the food and beverage industry today. Their health concerns as
they age, and their attitudes toward well-being are reshaping the way
companies develop and market products.
According to Steve French, managing partner at the
Natural Marketing Institute, the top health concerns for boomers are: heart
disease, cancer, weight gain, memory loss, lack of energy, arthritis and
joint health, restricted mobility, vision problems, diabetes and sexual
dysfunction.
“It’s a pretty well-rounded list of health
issues,” he says. “You can be rich or poor, but if you
don’t have the energy to do the things you want to do, it’s all
sort of moot.”
IRI’s McCusker says her study found significant
differences between boomers’ attitudes toward health and the general
population, and even differences between younger and older boomers.
“When you split the boomer generation in two
— under 50 vs. over 50 — there are huge differences in
attitudes toward health,” she says. “Older consumers are far more concerned with health because they are
starting to face more health issues. [They also] have a greater tendancy to
purchase light products, to worry about chronic disease and purchase things
with a [functional] benefit.”
In addition, IRI found changes in purchasing behavior
due to the empty nest phenomenon, leading consumers to gravitate toward
premium products and smaller portions.
NMI’s French says it’s important to not
assume boomers are looking for the fountain of youth, but for ways to age
well. “Boomers aren’t superficial youth seekers,” he
says. “They’re looking at the role of health care, both
conventional and alternative; they’re looking at foods and beverages;
they’re definitely looking at supplements and what kinds of vitamins
and minerals are important; exercise; stress and so on. They’re
probably more holistic, taking a look at the whole variety of things you
can do.”
When it comes to receiving health information, doctors
rank at the top of the list of experts for boomers. They also seek
information on the internet, through friends and relatives, spouses, the
media and pharmacists.
“The area of self discovery is important to
boomers,” French adds. “They want to go out and find
information on their own terms.”
What shouldn’t marketers try? Putting twenty-
and thirtysomethings in advertising for boomer-related products.
“They prefer advertising and promotion with people like them,”
French says. “The size-zero model on TV who is gorgeous and trying to
sell them something isn’t going to work.”
Super fruit
Antioxidants might be the health buzzword for 2006,
and power berries such as blueberries, pomegranate, black currant and
newcomer acai, are some of the most popular delivery methods. According to
Productscan Online, 29 beverage products containing blueberries were
introduced during the past year, 24 beverages containing pomegranate, and
nine beverages containing acai.
POM Wonderful LLC, which launched the pomegranate
craze, kept the momentum going with single-serve PET sizes of its trademark
pomegranate-shaped bottle. POM has had such an effect on the industry that
The Republic of Tea, Novato, Calif., used the trademark on its Pomegranate
Green Tea last year. The product is labeled “China green tea with POM
Wonderful pomegranates,” and has been promoted for its antioxidant
content.
Leading Brands Inc., Vancouver, B.C., this month
announced new LiteBlue Reduced Calorie Blueberry Juice Cocktail as a
complement to its TrueBlue Blueberry Cocktails. The product is sweetened
with cane sugar and Splenda for 50 percent fewer calories than the
original. It is said to contain a full serving of blueberries.
Odwalla last month added pomegranate to its lineup
with PomaGrand 100 percent juices. In addition to pomegranate, the drinks
are enhanced with chokeberry, elderberry, blueberry and black currant to
pump up the antioxidant properties. It also added blueberry and acai to its
Amazing Purple Superfood product in 2005.
Naked Juice, Azusa, Calif., rolled out Pomegranate and
Pomegranate Blueberry flavors, said to contain a pound of fruit in every bottle, as well as Antioxidant Mango Acai Drink
containing iron, calcium, omega fatty acids and fiber. And Zola Acai,
Manhattan Beach, Calif., introduced Zola Acai Brazilian Berry Power Juice
Beverage.
But these power berries are not limited to
super-premium juices. They also have been added to more mainstream juices
such as Old Orchard, Langers and Hansen’s brands. Old Orchard Brands
launched Blueberry Pomegranate to its 100 percent juice line, while Langers
added Pomegranate Juice Cocktail, and Hansen Beverage Co. rolled out
Hansen’s Natural Pomegranate Juice Cocktail.
Black currant is a popular flavor in Europe, but one
new to U.S. consumers — at least modern consumers. The berry can be
found in CurrantC Nectar from The Currant Co., which grows black currants
in Dutchess County, New York. Company President Greg Quinn took a very
personal interest in black currants, which had been banned for commercial
growth in the United States since 1911 due to concerns over a botanical
disease. Quinn lobbied New York lawmakers to lift the ban in that state,
began growing black currants in 1999 and launched CurrantC last spring.
“Currants are amazingly healthy, but back in
1911, there was no such thing as health food,” Quinn says. The
berries contain high levels of potassium, iron, vitamins C, B6 and E and
other antioxidants, and are enjoying positive press thanks to a report last
month that they could help prevent Alzheimer’s disease.
He points out that “those little raisiny
things” that most people consider to be black currants actually are
champagne grapes, and says his company is on a mission to introduce the
black currant to American consumers.
“Black currants have a very unique
flavor,” he says. “Currants taste like nothing else.” He
describes CurrantC as a beverage that has an initial sweet note and
finishes with a tart flavor, making it thirst-quenching as well as
healthful.
Tea time
Along with the power berries, tea has a continuing
reputation for health. Producscan Online reported 164 new teas introduced
during the past year.
“People are getting a little more of the nuance
in tea,” says Honest Tea’s Goldman. “It’s not all
the same.”
He reports that the company saw “a phenomenal
response” to last year’s introduction of white tea. “Some
of the appeal of white tea is because it’s new, but it’s also
because people are attracted to the antioxidants in white tea,” he
says.
Other companies jumping into white tea include
Ferolito Vultaggio & Sons, Lake Success, N.Y., which rolled its first
white tea, Arizona Blueberry White Tea. Cadbury Schweppes introduced
Snapple White Tea, and expanded the Snapple franchise with Snapple Tea Bags
in 20-count boxes.
Not to be forgotten, green tea continued its health
march with Sencha Shot from Japan’s Ito En. The single-serve
6.4-ounce shot of green tea contains 152 mg. of Catechin tea antioxidants.
Fuze rolled out Diet Green Tea in an Orange Ginger flavor, and played up
the product’s antioxidant content, which it says is equal to three
servings of vegetables per each 18-ounce bottle, with an ORAC symbol on the
label.
On the hot tea side of the business, The Republic of
Tea introduced a Blueberry Green Tea called Man Kind Tea and pledged to
contribute 75 cents from every tin of Man Kind Tea to fight prostate
cancer. In addition to green tea, the product contains wild blueberry to
promote prostate health.
Beauty in a bottle
While good looks are not essential to good health, a
healthy appearance and a healthy image seem to go hand in hand. The
category of “cosmeceuticals,” or products that help consumers
look good from the inside out, is a tiny one, but one that is gaining
interest.
Among the growing trend of new products designed to
enhance skin care are bottled water products from Borba Nutraceuticals,
based in Beverly Hills, Calif. The company launched Skin Balance Water,
Clarifying Pomegranate, Age Defying Acai and Replenishing Lychee.
Clarifying Pomegranate contains a vitamin complex to improve the overall
clarity of the skin, while Age Defying Acai is designed to soften fine
lines and wrinkles, improve elasticity and “renew the skin’s
natural glow.” Replenishing Lychee is designed to boost skin’s
moisture, and contains a botanical gelatin complex to hydrate the skin.
Also along the bottled water front, is H2Olive Pure
Mineral Water from South Africa’s H2Olive Pty. Ltd., reportedly
available in the United States and Canada. Dubbed “the inner beauty
drink,” the product is said to contain olive oil and olive leaf
extract.
Aloe vera has a centuries-old reputation for healing
the skin, and ingredient-maker Aloecorp, Lacey, Wash., recently announced
the development of the Qmatrix processing technology, which it says will
allow it to design value-added products such as fruit-enhanced aloe drinks,
juices, teas and other products with the
benefits of aloe. Among its benefits, the
company says aloe has been shown to promote wound healing and increase
collagen, which is associated with skin elasticity.
Finding enlightenment
Along with cosmeceuticals, products that appeal to the
connection between mind and body are a potential new wellness category.
Aromatherapy, energy and stress reduction all are part of the mind-body
connection. According to Datamonitor, 81 percent of U.S. and European
consumers believe it is important or very important to “find ways to
escape the pressures of everyday life,” and 89 percent indicate it is
important or very important to “reduce stress levels.”
Consumers are trying to achieve this by seeking therapeutic products,
trying alternative therapies and pampering at home.
Jivita LLC recently launched a drinking water called
Jivita, said to be an aromatherapy water. The water is infused with a
combination of extracts from flowers, resins and bark. The line includes
Jivita Red, said to enhance mental and physical awareness; Jivita Orange to
enhance mental and physical endurance; Jivita Green to calm the body and
mind; and Jivita Purple to center the body and mind.
Vancouver, B.C.-based Fusion Coffee Inc. rolled out a
line of whole bean Fusion Coffees in four functional varieties, including Well Being Blend, which is infused with
ginseng, white willow and matcha to help reduce stress and stimulate the
immune system; and Focus Blend, which contains ginkgo biloba, yerba mate
and ginseng to aid concentration and memory while reducing stress and
fatigue.
Metromint Peppermint Water from Soma Beverage Co., San
Francisco, is formulated to take advantage of the “natural stress
relieving powers of peppermint.” According to the company, mint
relieves stressed muscles, stimulates nerves, calms the stomach after meals
and aids in digestion.
Kids’ health
According to Tate & Lyle, 90 percent of parents
say they try to ensure their children have healthful, nutritious diets. But
the survey also says parents find it difficult to manage their
children’s diets, balancing nutrition with the taste preferences of
their kids, and they are concerned about brands marketed at children.
While targeting kids as consumers can be a delicate
proposition, several companies have formulated products to give children
less sugar and more nutrition. Cadbury Schweppes’ Motts division
rolled out Mott’s Plus for Kids’ Health, a 100 percent juice
fortified with 100 percent of the recommended daily allowance of vitamin C,
10 percent vitamin A and 10 percent calcium.
Waddajuice, Westport, Conn., introduced WaddaJuice
Naturally Flavored Beverage with 100 percent of the RDA for vitamin C and
10 percent for calcium. According to the company, the product has no added
sweeteners, flavors, dyes, preservatives or additives, and contains half
the sugar, calories and carbohydrates of other fruit juices. And Wild
Waters Inc. rolled out Wild Waters flavored waters for kids, containing
vitamins and minerals.
Organics
Organic products have made significant inroads into
mainstream markets, due in large part to the perception that they are
healthier than conventional products. IRI measured double-digit growth in
sales of organic products during the past year, and while it expects growth
to slow somewhat, it predicts it will continue in the high single-digits
through 2010. Household penetration of organic products has reached 46
percent in the United States, while “natural” products can be
found in 94 percent of households.
“There has been a real transformation in what
the organic symbol stands for,” says Honest Tea’s Goldman, who
has made organic an overarching theme among all of the company’s
products. “It used to mean people’s environmental concerns, but
now it’s really more about their health concerns.”
Younger shoppers are a key demographic for organics in
the United States, especially Generation Xers, according to the Organic
Trade Association. Ethnic shoppers such as Asian and Hispanic Americans
also are more likely than the general population to be organic consumers.
Among the 155 new organic beverage introductions
reported by Productscan Online during the past year were Ocean
Spray’s new Organic 100 Percent Juice Blends. The company rolled out
organic Cranberry, Cranberry Blueberry and Cranberry Raspberry varieties
with no added sugars, preservatives or artificial flavors. Apple & Eve,
Port Washington, N.Y., added organics to the lineup in 2005, and added
Organic Juice Boxes for kids. Organics are so popular that trendy Jones
Soda Co., Seattle, debuted Jones Organics in
ready-to-drink White, Green and Red Teas. BI