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N EW N UTRITION BUSINESS www.new–nutrition.com AUGUST 2014 ISSN 1464-3308 VOLUME 19 NUMBER 11 THE JOURNAL FOR HEALTHY EATING, FUNCTIONAL FOODS & NUTRACEUTICALS Pages 18-21 Pages 11-13 Pages 14-17 Continued on page 3 Protein message puts insects on road to “normal” It’s the fervent hope of bug-eating expert Daniella Martin that we in the West develop a taste for high-protein insects. As she argues in her book Edible: An Adventure into the World of Eating Insects and the Last Great Hope to Save the Planet, “There is so much for it, and almost nothing against it, if we can only get over our prejudices.” If the idea of crunching down a mealworm, cricket, wasp or bee seems alien, that’s only to modern Western palates – insects are a coveted snack in many countries in Asia, Africa and Latin America (see box on page 3) and indeed our ancestors routinely ate foraged insects. As with so many successful foods and beverages that we now take for granted in the West, this “trend” will initially be reviled and many companies will see it as something that cannot succeed. But it’s worth bearing in mind that the same was said about potatoes, tomatoes, coee, tea, Red Bull, probiotic dairy drinks and many other “new” foods. “In a hundred years,” predicts Martin, who blogs at http://www. girlmeetsbug.com, “[eating insects] will probably be so common that no one can imagine a world without it.” Indeed, start-ups in the West are working hard to make entomophagy – eating insects – sound delicious, or at least less unappealing. They’re serving up bugs in the sorts of places guaranteed to appeal to the early adopters – street markets and pop up restaurants. Don Bugito is an edible insect street food project based in San Francisco. The stall oers “creative foods inspired by Mexican pre- Hispanic and contemporary cuisine with locally sourced ingredients”. The menu includes spicy cricket tostadas, waxworm tacos, and a once-a-year treat, chocolate covered superworms for Valentine’s Day. “We believe in the future of edible insects as a smart answer to the existing demand for and shortage of high-protein foods on the planet,” says Don Bugito’s website. Cricket-bar brand Chapul, uses ne-milled cricket our as the base for its range, which comes in three varieties: Aztec – dark chocolate, coee As consumer education challenges go, this is surely one of the toughest. Persuading Western consumers that eating insects is not only good for the environment and for health but palatable too could take decades. But if change is going to start anywhere, it’s with the lifestyle consumers who love a new food trend – and that’s exactly who three bug-based start-ups are targeting. By ADRIENNE CLARKE and KAREN RATERMAN. Slimfast slide underscores Unilever’s failed weight management strategy Slow “squidgy” energy delivers fast revival for old brand A healthy protein product for our time

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Page 1: N UTRITION BUSINESS VOLUME UMBER UGUST...working hard to make entomophagy – eating insects – sound delicious, or at least less unappealing. They’re serving up bugs in the sorts

N E W N U T R I T I O N

B U S I N E S Swww.new–nutrition.com AUGUST 2014 ISSN 1464-3308VOLUME 19 NUMBER 11

T H E J O U R N A L F O R H E A L T H Y E A T I N G , F U N C T I O N A L F O O D S & N U T R A C E U T I C A L S

Pages 18-21Pages 11-13 Pages 14-17

Continued on page 3

Protein message puts insects on road to “normal”

It’s the fervent hope of bug-eating expert Daniella Martin that we in the West develop a taste for high-protein insects. As she argues in her book Edible: An Adventure into the World of Eating Insects and the Last Great Hope to Save the Planet, “There is so much for it, and almost nothing against it, if we can only get over our prejudices.”

If the idea of crunching down a mealworm, cricket, wasp or bee seems alien, that’s only to modern Western palates – insects are a coveted snack in many countries in Asia, Africa and Latin America (see box on page 3) and indeed our ancestors routinely ate foraged insects. As with so many successful foods and beverages that we now take for granted in the West, this “trend” will initially be reviled and many companies will see it as something that cannot succeed. But it’s worth bearing in mind that the same was said about potatoes, tomatoes, coff ee, tea, Red Bull, probiotic dairy drinks and many other “new” foods.

“In a hundred years,” predicts

Martin, who blogs at http://www.girlmeetsbug.com, “[eating insects] will probably be so common that no one can imagine a world without it.”

Indeed, start-ups in the West are working hard to make entomophagy – eating insects – sound delicious, or at least less unappealing. They’re serving up bugs in the sorts of places guaranteed to appeal to the early adopters – street markets and pop up restaurants.

Don Bugito is an edible insect street food project based in San Francisco. The stall off ers “creative foods inspired by Mexican pre-

Hispanic and contemporary cuisine with locally sourced ingredients”. The menu includes spicy cricket tostadas, waxworm tacos, and a once-a-year treat, chocolate covered superworms for Valentine’s Day.

“We believe in the future of edible insects as a smart answer to the existing demand for and shortage of high-protein foods on the planet,” says Don Bugito’s website.

Cricket-bar brand Chapul, uses fi ne-milled cricket fl our as the base for its range, which comes in three varieties:

• Aztec – dark chocolate, coff ee

As consumer education challenges go, this is surely one of the toughest. Persuading Western consumers that eating insects is not only good for the environment and for health but palatable too could take decades. But if change is going to start anywhere, it’s with the lifestyle consumers who love a new food trend – and that’s exactly who three bug-based start-ups are targeting. By ADRIENNE CLARKE and KAREN RATERMAN.

Slimfast slide underscores Unilever’s

failed weight management strategy

Slow “squidgy” energy delivers fast revival for

old brand

A healthy protein product for our time

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AUGUST 20142

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C O N T E N T S & C O N T A C T S

All enquiries: Miranda MillsCrown House, 72 Hammersmith RoadLondon W14 8TH, UKPhone: +44 (0)20 7617 7032Fax: +44(0)20 7900 [email protected] by Mastercard, American Express and Visa accepted.

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All including fi rst class or airmail postage, net of any bank transfer charges.

Published 11 times a year byThe Centre for Food & Health Studies

ISSN 1464-3308 All rights reserved, photocopying of any part strictly prohibited.

EditorJulian [email protected]

Dale Buss, New Nutrition Business, 6390 Cherry Tree Ct, Rochester Hills, MI 48306, USA.Tel: 248/651-9648 Fax: 248/[email protected]

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COMPANIES AND BRANDS IN THIS ISSUE

New Nutrition Business uses every possible care in compiling, preparing and issuing the information herein given but can accept no liability whatsoever in connection with it.

© 2014 The Centre for Food & Health Studies Ltd. Conditions of sale: All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. The Centre for Food & Health Studies does not participate in a copying agreement with any Copyright Licensing Agency. Photocopying without permission is illegal. Contact the publisher to obtain a photocopying license. This publication must not be circlated outside the staff who work at the address to which it is sent without the prior written agreement of the publisher.

LEAD STORY

1,3--6 Protein message puts insects on road to “normal”

EDITORIAL

7-8 Good connections = success

9-10 Innovating beyond consumers’ imaginings is key to success

CASE STUDIES

11-13 WEIGHT MANAGEMENT: Slimfast slide underscores Unilever’s failed weight management strategy

14-17 SLOW ENERGY: Slow “squidgy” energy delivers fast revival for old brand

18-21 PROTEIN: A healthy protein product for our time

22 FAILURE: Tea can’t stretch to chocolate

23-25 BEVERAGE: Talking Rain: the 25-year “overnight” success story

NEW PRODUCTS

26-30 Functional & healthy-eating new product launches

IMPORTANT NOTICE

31 A polite reminder to our subscribers

REPORTS

32 Failures – new edition 2014

33 12 Key Trends 2014

34 Powerpoint presentations

HOW TO SUBSCRIBE

35 Case Study Order Form

36 Subscription Order Form

Active Water ................................ 23,24

AstraZeneca ..................................... 18

Atkins Diet ....................................... 11

Big Cricket Farms .............................. 5

Chapul.......................................... 1,3,4

Chirps ................................................. 3

Coca-Cola .............................. 22,23,25

CocoaNova....................................... 22

Costco .............................................. 23

Don Bugito ...................................... 1,3

Ento Box ......................................... 3,5

Heinz ................................................ 20

Honest Tea ....................................... 22

Honest Tea ....................................... 22

Lifewater .......................................... 23

Lipton Linea ..................................... 13

Marlow Foods ................................... 18

Nestle ........................................... 11,23

PepsiCo ....................................... 23,25

Perrier ............................................... 23

Quorn ......................... 8,9,18,19,20,21

Red Bull.............................................. 1

RHM ................................................ 18

Sainsbury .......................................... 17

Six Foods ......................................... 3,4

Slimfast ..................................... 7,11,13

Soreen ............................ 7,14,15,16,17

Sparkling Ice .......................... 23,24,25

Talking Rain......................... 23, 24, 25

Twist ............................................ 23,24

Unilever .................................... 7,11,13

Vitaminwater .............................. 23,25

WalMart-Asda ............................. 16,17

Warburtons....................................... 14

World Ento ......................................... 5

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Continued from front page

and cayenne• Chaco Bar – peanut butter and

chocolate• Thai Bar – coconut, ginger and

lime

The bars retail online at http://chapul.com for $32.00 for a box of 12, and in 200 stores internationally. The start-up won a $50,000 investment from entrepreneur Mark Cuban on ABC’s Shark Tank.

Founder Patrick Crowley, who has a degree in hydrology, was motivated to create Chapul by the water benefi ts of insect farming compared with more familiar forms of protein. “If we shift even a small fraction of our protein consumption to environmentally friendly, healthy (and tasty!) insects, we can reduce the huge amount of water which irrigates the massive, mechanized farms which exist solely to feed the 300 million head of cattle and 1.4 billion pigs mankind slaughters every year,” he says.

Six Foods, based in Boston, plans to begin shipping its cricket-based chips – or Chirps – in October this year. Made with beans, rice and cricket fl our, Six Foods says Chirps deliver 7g of protein per serve and, compared with regular potato chips, off er three times the protein. Using KickStarter, the venture has convinced 1,295 backers with $70,559 pledged of a goal of $30,000.

And in the UK, Ento Box – a word

Don Bugito’s edible insect stall offers San Francisco street food with a difference, with a menu including spicy cricket tostadas, waxworm tacos, and a once-a-year treat – chocolate covered superworms for Valentine’s Day.

BUG-EATING AROUND THE GLOBE

Western consumers might be squeamish about eating bugs, but much of the world embraces them as a source of nutrition. According to a report from the Food and Agriculture Organization of the UN, written together with entomologists at the University of Wageningen in the Netherlands, about 1900 species of insects are eaten worldwide, mainly in developing countries, forming part of the traditional diets of at least 2 billion people.

“Contrary to popular belief,” says the report, “insects are not merely “famine foods” eaten in times of food scarcity or when purchasing and harvesting “conventional foods” becomes diffi cult; many people around the world eat insects out of choice, largely because of the palatability of the insects and their established place in local food cultures.”

The most commonly eaten insect groups are beetles, caterpillars, bees, wasps, ants, grasshoppers, locusts, crickets, cicadas, leaf and planthoppers, scale insects and true bugs, termites, dragonfl ies and fl ies.

• In Asia, the crickets Gryllus bimaculatus, Teleogryllus occipitalis and T. mitratus are harvested in the wild and commonly consumed as food. The house cricket (Acheta domesticus) is also reared and commonly eaten, particularly in Thailand, and is preferred over other species because of its soft body.

• It is estimated that as many as 81 insect species are consumed in both rural and urban areas [in Thailand].

• Over 50 insect species are consumed in South Asia (India, Pakistan and Sri Lanka), 39 species in Papua New Guinea and the Pacifi c Islands, and 150–200 species in Southeast Asia (red palm weevils from the Sago palm are especially popular).

• The chapuline is probably the best-known edible grasshopper in Latin America; cleaned and toasted in a little oil with garlic, lemon and salt for fl avour, they are a common food ingredient among not only indigenous communities but also the urban population in Oaxaca city.

• In Malawi, several cicada species (Ioba, Platypleura and Pycna) are highly esteemed as food.

• Markets in Kinshasa, the capital of the Democratic Republic of the Congo, boast an abundant year-round supply of caterpillars, and the average household in Kinshasa eats approximately 300g of caterpillars per week.

Source: Edible insects: future prospects for food and feed security” (FAO Forestry Paper 171. FAO, Rome and WUR, Wageningen)

Continued on page 5

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E D I T O R I A L

OVERCOMING THE “ICK” FACTOR OF INSECTS

Getting Western consumers to embrace insects as the next important high-nutrition and sustainable food source may not be as big a stretch as it seems. In fact, manufacturers of these ground-breaking insect-based products say they are receiving less push back from the demo table than might be expected. Consumers are surprisingly receptive, but the fi rst step is to get them to taste the products.

“We started in June 2010, and we honestly thought we were fi ve to 10 years too early for this … but now we realized the timing is actually good,” said Patrick Crowley, founder of Chapul. Manufacturers say it doesn’t hurt that consumers are becoming savvy about nutrition, have a growing focus on protein and many realize the urgency of fi nding sustainable food solutions. In addition, Crowley said, the idea of new disruptive food systems resonates with the current millennial generation.

New technologies for dispersing information and targeting interested and like-minded consumers are also helping to deliver the strong story for insect consumption to people who are most receptive, noted Rose Wang, a founder of SixFoods. People view tasting the company’s cricket-based chips as an adventure, added co-founder Laura D’Asaro. “The media has helped a lot and people are starting to understand that this is not a gimmick, but has great potential impact for sustainability and health.”

And the stats are compelling: According to Chapul, crickets have 15 times more iron than spinach, two times more protein than beef and as much B12 as Salmon, and they can be farmed 10 times more effi ciently than cows and pigs.

But none of that means very much if the products don’t taste good, according to Gabi Lewis, a co-founder of Exo, which makes high protein energy bars from cricket fl our. “The biggest key to getting past the preconceived notions about eating insects is to get people to try the bars and learn that they taste delicious,” he said. Once they know the bar tastes good, then you can educate on the nutrition and sustainability. Then, he said, “there is no reason not to eat it. A beautiful light bulb goes on.”

But Exo also worked with a professor on the “psychology of disgusting”. They learned that people don’t want to be reminded of what they are eating. Even if it’s steak, they don’t want to see a picture of a cow, Lewis added. As such, the company pointedly doesn’t use pictures of insects on the packaging.

Crowley agreed that is important, but also noted that the nutritional message resonates more than sustainability. “The environmental message is why we started, but we learned that’s the icing on the cake. It’s the nutritional aspects that determine how people make their food decisions.” Crowley also noted that Chapul is targeting consumers who will not fi nd this too hard to overcome. “We are focused on people who realize what we eat is unsustainable and are looking for alternatives.”

Things need to go a good deal beyond that, according to Lewis, whose company mission is to make the consumption of insects normal. And, he pointed out, it’s not the fi rst food to make that leap. Consumers thought raw fi sh was high in the “ick factor” about 40 years ago, and now sushi is a popular delicacy. “They just made it work for the Western palate.”

Chapul uses fi ne-milled cricket fl our as the base for its range of cricket bars which, unlike many insect-based products that play down their origins, carry pictures of crickets on the packaging.

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E D I T O R I A L

play on the Japanese snack bento box – manages to make its small, beautiful bite size snacks look nothing at all like the insects on which they’re based.

But what Martin is arguing for in Edible, beyond these individual eff orts, is a bug-based new agriculture of farmed insects that can be processed into food.

“Despite the high ideals of movements like “slow food” and locavorism, the only currently known way to effi ciently produce enough protein to feed Earth’s growing population is to further intensify industrial farming practices. This means doubling down on the factory

farming of animals, packing more bodies into smaller areas.

“This is not good news for cows, pigs or other animals that need things like space and fresh air. It is, however, just fi ne for many species of insects. Bring on the cramped conditions, the darkness, the teeming populace.”

“Since insect farming is already a multimillion-dollar industry here in the United States, the future looks bright,” adds Martin, referring to enterprises such as World Ento, the leading supplier of the developing “ento industry”.

Emphasising the quality and safety of its insects in an as yet unregulated new type of agriculture, World Ento

off ers ready-to-use products for chefs, including All Purpose White Cricket Flour at $14.00/lb (€10.24 for 450g), Recipe Ready Meal Worms for $12.00/100g (€8.86) and Chocolate Chirp Cookie Mix at $15.00/21oz (€11.08 for 595g).

Then there is Big Cricket Farms, a wholesale cricket farm founded earlier this year and said to be “the fi rst urban cricket farm in America devoted exclusively to raising human-grade entomophagical products”.

TABLE 1: NUTRITIONAL SNAPSHOT OF CHAPUL AZTEC BARS

Boston-based Six Foods mixes cricket fl our with rice and beans to create “chirps” with three times the protein of regular potato chips.

Once upon a time, sushi made Western consumers squirm, but now it’s an accepted food. Could Ento Box win over consumers with its beautifully-presented insect-based delicacies?

REFERENCE

Edible: An Adventure into the World of Eating Insects and the Last Great Hope to Save the Planet by Danielle Martin is available at http://www.amazon.com/Edible

Continued from page 3

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E D I T O R I A L

WOULD YOU EAT BUGS?

New Nutrition Business conducted a qualitative survey among people from a variety of countries. We fi rst asked them what they thought of the idea of eating insects. We then showed them pictures of various insect products already available, including Don Bugito’s worm tacos, Chapul bars made with cricket fl our, Ento Box’s pretty sushi-like squares, and Six Food’s cricket chips, Chirps. The clear message from our survey? People don’t want to be reminded of what they are eating – the less the product resembles insects, the better. In an appealing format, they could be tempted.

1. What do you think of the idea of eating insects?Joana, 20s, Portugal: “No, I don’t like that idea!”Guillaume, 20s, France: “I have heard of this, my friend went to Thailand, he ate them crisped. Another friend has eaten insect larvae.”Abi, 40s, New Zealand: “You must be joking - no way!”Asa, 40s, Sweden: “That’s not really pleasant, it’s a stretch to like a crunchy insect – I tried grasshoppers, it was OK, and I had scorpions in China – that was just for fun. I don’t think that I would serve them – the idea is still too new.”Frida, 7, Sweden: “No way!”Maia, 13, New Zealand: “Eating insects doesn’t sound very nice but when you think about it, it would really depend on the form it’s in, I would never be able to eat worms or fried crickets.”Kiera, 17, United States: “Eeewww, no, I don’t think I could do that.”Molly, 10, New Zealand: “I think it’s a bit gross because everyone hates bugs, let alone eating them. Maybe some bugs would be ok. But not the bugs you like, like lady bugs and not the yucky bugs like cockroaches. It’s the legs and stuff that’s gross.”Tory, 19, United States: “I don’t like it. It’s disgusting.”Shelly, 40s, New Zealand: “I could eat ‘bugs’ if they were completely anonymous - like a ‘fl our’ – bug bread. Or a sausage you sliced and fried. If it tasted lovely ie fatty and salty and crisp. Or some quinoa-type product where I just chucked a handful in with some rice because the marketing says it’s good for you and no one really notices it.”Jack, 12, New Zealand: “If someone said ‘bugs or chicken’? I would choose chicken.”Anne Mary, 40s, New Zealand: “Well, in theory it’s a very good idea I think. Apparently they are very nutritious and if we eat prawns then it’s not such a big leap to eat bugs. Presentation is vital!!” Kirsten, 30s, Canada: “I think things would have to be pretty dire, perhaps if I was on a desert island with nothing else to eat!”Clam, 40s, Canada: “It makes a certain amount of sense – less cruel than eating meat but generally just gross. Maybe I would consider eating it as an ingredient perhaps?”Pauline, 60s, New Zealand: “A defi nite ‘no’ if the insect resembles it’s natural shape, taste and texture. You’d have to tempt me with a hefty bribe.”

2. What do you think of eating insects in forms such as these? (Respondents were shown a range of processed insect-based foods)Joana, 20s, Portugal: “OK, this is different…I think it’s knowing what it is that I don’t like. With the cricket fl our, you don’t see the insects. I think people will catch on but more with the form with fl our. I would not have put the pictures of the insects on the packet [of Chapul].”Guillaume, 20s, France: “I think like this it’s easier.”Abi, 40s, New Zealand: “Ah well that’s different... If they were hiding in other food and didn’t resemble bugs and they had the same health benefi ts as say omega 3 then yes I would probably go for it (and even give it to my kids too) . We eat cochineal after all. Anyway crickets aren’t exactly “hardcore” bugs.”Asa, 40s, Sweden: “I think people have the same problem with meat, if they see the whole thing. It’s the same thing, I think if you get used to it. The next generation might eat it. For now the processed version is better.”Frida, 7, Sweden: “This is better but I still don’t want to eat it.”Maia, 13, New Zealand: “I think I could eat insects if they were in a form that wasn’t too raw, although the worms in a taco still doesn’t appeal to me. And worms on icecream is just weird!”Kiera, 17, United States: “That sounds more bearable. I think if you couldn’t tell it was a bug that would be a lot better.”Molly, 10, New Zealand: “I’d try them all, but I don’t like the idea of the chips. I like the idea of the chocolate/Aztec thing best. And I’d try the [Ento box] restaurant.”Tory, 19, United States: “If you give me a bar and don’t tell me it has crickets I would probably eat it. I guess I would try it if I knew but I would be hesitant.”Shelly, 40s, New Zealand: “I’d probably be curious to try it all. But I’m not the right market for the bars. They aren’t something I’d eat or buy even insect free. I might be more likely to try the chips. I eat stupidly expensive pretentious ‘chia seed chips’ and stuff like that, so I’d probably eat cricket chips if they tasted nice. I’d never eat a ‘protein bar’ even if I was an astronaut. I think I’d be more inclined to buy insecty stuff as ingredients, but then I cook from scratch mostly. Bug pasta would be good.”Jack, 12, New Zealand: “I’d be interested to try them - you can’t go wrong with chocolate. I wouldn’t try the restaurant ‘cubes’ in case they were caterpillar or slug fl avoured. I’m proud of how willing I am to try new things so I’d try all the other things.”Anne Mary, 40s, New Zealand: “Ok, NOT what I was expecting obviously! I don’t have a problem. Any nutritional benefi ts? Can you taste them, ie are they bitter? I heard [television personality] Bear Grylls say after downing a monster grub once that it was incredibly bitter.”Kirsten, 30s, Canada: “I would certainly try these, not as intimidating when combined with other ingredients and made to look like things we know.”Clam, 40s, Canada: “I have no problem trying them but it depends on what they cost against the other bars etc.”Pauline, 60s, New Zealand: “I could be tempted to take a bite in a deliciously disguised form.”

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Two of the most important elements of your strategy, whether you are marketing ingredients, creating a new brand or reviving an old brand, are:

• Connecting your product to the most important trends

• Knowing where you are positioned in the product life-cycle – and whether you can change that positioning

Companies that don’t think hard about these two elements tend to run into problems sooner or later. One of the best examples is Unilever’s Slimfast brand:

• Although Slimfast’s core proposition is weight management, the brand became entirely disconnected from the Weight Wellness trend, failing to keep pace with changes in the consumer market. When a brand becomes disconnected from the key trends – and particularly the ones that are supposed to be at the brand’s core – it has no future.

• Failure to evolve with the trend meant that Unilever was pushed to the end-stage of the product

life-cycle (where brands go to fade away) 15 years ago.

As the table shows, every successful product profi led in these case studies is connected to Key Trend 5, Weight Wellness. Managing weight is now something that all health-conscious consumers do every day through most of their food choices. “Special weight management foods” such as Slimfast have had their day. Every one of our case studies off ers benefi ts such as 95kcal portions or low/no sugar. Two of the fi ve specifi cally connect to Key Trend 3, Protein, which has become a cornerstone of many people’s weight management choices. If you have a good level of protein, you do not need to mention weight management – the informed consumers will already have made the connection.

Products that connect to multiple Key Trends have the best chance of success. The Case Study of Soreen (see page 14) shows how even an old brand can be revived if it is naturally connected to important trends – and if a creative brand owner can connect it to others. Soreen’s surge in sales, despite starting as an out-dated brand

that was “a snack for grandmother”, is thanks to:

Key Trend 1, Naturally Functional: The biggest trend in our industry, because people like foods, beverages and ingredients to have a “naturally healthy” image. Oats, for example, have very clear and increasingly well-known health benefi ts. Chia seed also benefi ts from this trend. Luckily for Soreen malt bread, it retained in many consumers’ minds some of its image of being “naturally healthy” from a time when parents gave malt to children as a health supplement.

Key Trend 3, Protein: As stated above, if you have a good level of protein, you do not need to mention weight management – the informed consumers will already have made the connection. And that is likely to be the case for Soreen malt bread, which makes no mention of protein in its communications, but has long been popular with people who do sports.

Key Trend 5, Weight Wellness: Soreen off ers calorie and portion-controlled packs and allies itself with sports and activity – a key advantage

Good connections = success

INGREDIENTS AND BRANDS WHICH CONNECT TO THE KEY TRENDS HAVE THE BEST CHANCE OF SUCCESS

NATURALLY FUNCTIONAL

Insects ✓ ✓ ✓ ✓

Soreen ✓ ✓ ✓ ✓ ✓ ✓

Quorn ✓ ✓ ✓

Talking Rain ✓ ✓ ✓ ✓

Slim-fast ✓

PROTEIN WEIGHT WELLNESS

SNACKING SLOW ENERGY SUGAR PERMISSION TO INDULGE

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E D I T O R I A L

GOOD POSITIONING IS KEY TO SUCCESS

Many products start out on the left, selling in low volumes at premium prices but over time their appeal increases and they move down the price curve to the right, eventually becoming mass-market products.

Technology consumers – These are the early adopters, people who have a near-medical need for a product. They will pay a substantial premium for something that addresses their condition.

Lifestyle consumers – Interested in maintaining their wellness, not fighting illness. They will adopt new brands and will pay a premium for a product.

Mass-market consumers – They are motivated by easy-to-understand benefits available in products with low or no premiums, ideally from well-known brands.

as sports nutrition and weight management merge.

Key Trend 6, Snacking: Soreen has made great eff orts with its messaging and new product formats to be seen as an option for every possible snack or meal occasion.

Key Trend 7, Slow Energy: With the communication of the simple benefi t of “energy”, Soreen connects to an important trend.

Key Trend 9, Permission to Indulge: Soreen has a rich, satisfying and indulgent taste and texture. The brand has built on this with its fruit variants and uses its “energy” and “low in fat” messages – coupled with its identity as a product for active, sporting people – to be seen as something that health-conscious people can chose as a permissible indulgence.

Soreen’s messages have enabled it to re-position itself – as the company says

– from being a tired old mass-market brand to a lifestyle brand.

When new brands and ingredients come to market it’s possible to forecast success when you see them connecting to multiple trends. And that is why it is clear that insects (see our lead story on pages 1 to 6) will become successful as an ingredient.

Moreover, the commercialization of insects is being led by entrepreneurial lifestyle start-ups, fi rmly targeting lifestyle consumers. As both NNB’s own consumer research (see page 6) and the experience of the start-up brands illustrates, insects will fi rst be taken up by young, urban consumers and by “foodies” and the well-travelled – a demographic which overwhelmingly will be upper income/upper educational level and willing to pay premium prices for a new food experience.

Insects deliver protein – tying them

to Paleo and similar high-protein diets that are beloved of the lifestyle consumer – and from a sustainable source. Already meat snacking is on the rise (see Case Studies in NNB April 2014 and June 2014) so this trend is also on the side of insects.

The successful products will also use Asian or South American fl avours and people will buy them from food trucks and trendy cafes and independent health food retailers.

With these elements already falling into place, it is clear that insects will be accepted, just as foods from soil fungus have been (see Quorn Case Study on page 18). On that basis, 10 or 15 years from now insect-based foods could, like Quorn, be a $350 million business at retail prices in the US and Europe (with the US leading the trend).

The lesson is clear: connect to the Key Trends, and start out in the optimum place in the life-cycle.

TECHNOLOGY CONSUMERS

LIFESTYLECONSUMERS

MASS-MARKETCONSUMERS Solid line = sales volumes

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E D I T O R I A L

Most industry executives will dismiss the idea of using insects as an ingredient as “too weird”; as something that consumers “will never accept” or accept too slowly for it to be commercially interesting. They are wrong, of course. Such a conservative outlook means that the fi eld will be left open to entrepreneurs and they will create new brands and a new market (see lead case study in this issue of New Nutrition Business). In our industry it happens all the time – one of the best examples is Quorn’s profi table commercialization of soil fungus as a $340 million food brand, on sale in 15 countries.

Before executives dismiss new ingredients such as insects, they should read CK Prahalad – one of the most infl uential business thinkers and writers (see references on page 10) of the past 20 years and also Professor at the Stephen M. Ross School of Business at the University of Michigan. He had some well-thought-out views on best practice in innovation.

Prahalad authored many works jointly with Dr Gary Hamel and together they originated the concept of core competencies, which is now hard-wired into how many companies think. In a paper they wrote together

called “Corporate Imagination and Expeditionary Marketing”, they wrote that: “A company must also have the imagination to envision markets that do not yet exist and the ability to stake them out ahead of the competition.”

For companies such as Apple it is this willingness to envision new markets and create them that has been key to their success. And the same willingness to envision that which does not yet exist, and then to create it, is also key to the biggest successes in food and beverages (see Case Studies on pages 18 and 23).

Unfortunately, the culture that enables companies to envision the new and then create it is all-too-rare in our industry because:

1. Marketers are often highly risk-averse and fear doing anything that cannot be justifi ed by consumer research. Yet there was no consumer research which could have guided anyone to create a new protein (Quorn). And in fact the current surge of consumer interest in protein was denied by marketers in many companies as recently as 2010 – because they couldn’t fi nd it in consumer research.

2. Many senior managers fear doing anything that might jeopardise their next bonus – or limit their career progression. Mostly companies deliver one close-to-the-core-business line extension after another, persuading themselves that they are innovating, all the while steering as far away as they can from anything that looks like risk. And yet, according to researchers as diverse as Mintel and PriceWaterhouseCoopers, less than 5% of new products from our industry can actually be classifi ed as innovative in any way. Perhaps that is the reason why 90% of new product launches fail.

This culture of conservatism – often coupled with a high degree of usually misplaced self-confi dence – lies at the heart of the failure of both Nestle and Unilever’s weight management strategies (see Case Study on page 11 and also Case Study in January/February 2014 New Nutrition Business).

Prahalad and Hamel outlined a number of elements which they described as essential for enabling the type of active corporate imagination which can envision and create the new. Here are two of them:

Innovating beyond consumers’ imaginings is key to success

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1. Escaping the tyranny of the served market. Instead of viewing every new opportunity through the lens of existing businesses, managers must think outside of current boundaries and explore the white spaces which lie between existing businesses. This is where the core competency mindset helps.

In our industry this usually means “new category creation” – creating markets that are new to the companies concerned and indeed creating categories that are new to the consumer. This conscious decision to create a new market is what lies at the root of the creation of most of the biggest successes of the last two decades, from probiotic dairy to the energy drinks market and the success of brands like Red Bull.

2. Being a step ahead of customers. “Simply being customer-led is not enough,” say Prahalad and Hamel. Particularly in categories that rely on technology, customers often can’t even imagine what is possible. Companies must lead customers where they want to go – before they even know it themselves.

Quorn is an example of a company creating products that consumers did not know they needed. They are not led by consumer demand, they create consumer demand. And this will be the key to the success of insects as an ingredient.

CK Prahalad has a message that is relevant to every company: “With the tremendous turbulence and the speed with which industries are changing today, you can’t just sit around and wait. While high levels of profi ts

from existing businesses are a must, companies need to be reinvesting in a consistent fashion to create new businesses, and new products, and to shape the pattern of market evolution. They need to imagine new markets for tomorrow, and to build new core competencies that will give them an advantage in those markets.”

It is because it could not imagine change and work out how to reinvent itself for tomorrow that Slimfast failed in such a spectacular fashion (see Case Study on page 11).

Another of Prahalad’s points is: “It’s not enough to imagine the future – you also have to build it. Many companies have had incredible industry foresight, but they lacked the capacity to execute it. In order to build the kind of future business which you have imagined, you need to develop this capacity for execution. You need to make a strategic blueprint for turning the dream into reality – a link between the present and the future. You need to carefully work out which new competencies you should be building, which new customer groups you should be trying to understand, which new distribution channels you should be exploring, in order to create a winning position for yourself in a new opportunity arena.”

Prahalad says innovative companies also “have aspirations which lie outside the resource base

of the company, and they manage to stretch and enlarge their resources in order to succeed in this new market.

“Go back and look at the Fortune 500 or the Fortune 100 over the last 50 years, and ask yourself how many companies have disappeared from the list, and what the survivors do to stay in that league. You will fi nd that they are continually looking forward, not backward. They are continually changing the rules of competition, rather than following the accepted rules. They are regularly defi ning new ways of doing business, pioneering new product concepts, building new core competencies, creating new markets, setting new standards and challenging their own assumptions. They are taking control of their future. You can’t do that if you are not willing to change and to move from where you are today. The opportunities are out there for everyone, but capturing new business opportunities is like shooting fl ying ducks – you can’t do it with fi xed gun positions.”

It’s true that in many categories consumer preferences change only slowly and that established brands must therefore evolve only slowly to retain their loyalty. Such brands must take what people want as their starting point.

But successful innovation usually begins by creating things that consumers do not yet know they need. The biggest successes – from energy drinks to probiotic dairy to protein and many others – came from companies who were willing to innovate and lead customers to something that they had not imagined. And that will be true for insects as an ingredient – no matter how bizarre it sounds to us now.

SOURCES: Prahalad, C.K., and Hamel, Gary. 1990. “The Core Competence of the Corporation,” Harvard Business Review.Hamel, Gary and Prahalad, CK. 1991. “Corporate Imagination and Expeditionary Marketing,” Harvard Business Review.

A desire to create a new market beyond what consumers could imagine enabled Quorn to turn a soil fungus was turned into a successful $340 million brand.

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W E I G H T M A N AG E M E N T C A S E S T U DY

Launched back in 1977, Slimfast was the original diet shake. When Unilever bought Slimfast it said it was going to make it the centrepiece of its weight management strategy. But all the company has showed is that its marketing competence doesn’t extend to the weight management arena. And although Unilever has abundant competence in R&D, it’s clear that its marketing, strategy and execution skills are not good enough to make the most of its R&D resources.

Problems with Slimfast began almost immediately that Unilever executives took over the controls. Sales of $600 million (€460 million) in 2000, the year Unilever bought the brand, slid rapidly (see Chart 1), despite Unilever upping marketing investment.

Then in 2003 the Atkins Diet burst onto the scene and Slimfast – with its carbohydrate-heavy shakes, powders and bars – was in trouble. Sales fell more than 20% in 2003 alone, to about $410 million (€315 million).

By 2012 Slimfast’s sales had fallen by 70% compared to when Unilever bought it.

Over the years Unilever has tried every possible tactic to reverse the slide – every one a failure. Here are just a few examples:

• changing the product portfolio• new marketing slogans• a focus on value and low prices• loyalty points• a focus on social media

• supermodel presence: the Slimfast brand was originally grown on the back of celebrity endorsements, which Unilever scaled back. It revived these, with Rachel Hunter – the supermodel best known as the former wife of ageing rocker Rod Stewart – representing the brand

The name “Slimfast” contains a very clear promise – one which was intentional back in the 1970s when the brand was born. But consumers expect products to deliver on their promises and although some people had success with Slimfast, many others found its programme of

strange-tasting shakes and bars hard to follow.

Markets change, consumer preferences change – these are the facts of commercial life. And the most important thing anyone can do is to accept that change is inevitable and adapt to it – or die.

Spotting these changes as they emerge requires companies to have a culture of constant vigilance and a willingness to question and re-examine their strategy. This seems to have been absent at Unilever.

Unilever did not spot that the weight management market dynamic was shifting even before it bought Slimfast. In 2000 companies in

Slimfast slide underscores Unilever’s failed weight management strategy

We all make mistakes. But some people and companies make more spectacular mistakes than others. Unilever’s purchase and subsequent management of the Slimfast brand is one of the biggest failures of the last 15 years – and certainly the biggest failure in the weight management market. Indeed, Unilever’s weight management strategy has exceeded even the impressive failure of Nestle’s weight management strategy.

CHART 1: THE UNSTOPPABLE DECLINE OF SLIM-FAST

Total US multi-outlet sales (supermarkets, drugstores, mass market retailers, gas/C-Stores, select club & dollar retail chains).

0

1

2

3

4

5

6

2003 2013 2014(52 weeks ending May)

$510

$175$147

$

millions

Source: Market Advantage; IRI

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many categories, such as yoghurt, were already dropping labels such as “diet” from their products because of the negative association it had in many consumers’ minds. “Specially designed foods” that were not at all like normal foods were also beginning to show signs of losing favour.

Since then the weight-management market has been transformed. It can be argued that weight management is no longer a distinct category – since keeping a healthy weight is in the back of many consumers’ minds every time they make a purchase. Rather, weight management is now “weight wellness” (see New Nutrition Business 12 Key Trends 2014, Trend 5).

It’s now normal among health-conscious consumers to reduce their sugar consumption and question the sugar content of products – aided and abetted by a media that, in most countries, seems keen to attack any product that is perceived as having “too much” sugar.

Sports nutrition has also begun to blend with weight management, with the sales growth in sports nutrition driven by people who are managing their weight. High-protein brands are much more credible in the

UNILEVER’S REVERSE MIDAS TOUCH

Once a centrepiece of its strategy, Unilever’s ambitions to be a force in weight-management lie in tatters. It’s not only Slim-Fast that has been problematic.

In late 2004 Unilever announced that it was to invest a total of $40 million to secure an exclusive global licence to the botanical extract Hoodia gordonii from Phytopharm plc. The extract of Hoodia gordonii, a rare cactus plant native to the Kalahari desert, was licensed exclusively by Phytopharm from the South African Council for Scientifi c and Industrial Research (CSIR) in 1997. Phytopharm said that it has been actively developing the extract for incorporation into weight-loss products. The molecule is thought to target the satiety centre in the brain, reducing the desire to eat. Historically, Hoodia has been used by the indigenous people of the Kalahari to promote a feeling of satiety in times of famine.

For the record, this is what NNB said at the time:

“On Unilever’s part this move is either a piece of visionary thinking or it’s a spectacular blunder. We believe that it will likely turn out to be the latter.

“After setting up production of the raw material (Hoodia takes two years to grow), Unilever must also manage Hoodia through Europe’s notoriously slow Novel Foods approval process. Then Unilever will want products bearing it to carry regulator-approved weight-loss claims – assuming that the EU permits such claims (proposed health claim regulation specifi cally forbids such claims). At this point it will have to reveal – at least to regulators – the evidence for its claims and somehow this as-yet unpublished data is going to have to be peer-reviewed if it is to be credible.”

And so it proved. In late 2008 Unilever and Phytopharm announced that trial data indicated that the extract would not meet safety and effi cacy standards and the two companies would end their partnership.

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consumer’s mind than a brand like Slimfast, with its very strong dieting identity.

Other people see consuming more fruits and vegetables and other conventional forms of “healthy eating” as the fi rst step to managing weight – with specially designed products far down the list of preferences.

It’s not easy to see why anyone would buy Slimfast today. The brand appears to have gone from a steady slide into free-fall:

• Total brand sales were down 19% in the year to May 2014, according to IRI data.

• Shakes that are the core of the brand, accounting for 86% of sales, experienced a 17% fall in sales.

• Bars, which account for 12% of the brand’s sales, experienced a 30% fall.

It looks as if Slimfast is spiraling into irrelevance.

Can Slimfast be reinvented? Perhaps, but we do not believe that even with the best strategy it can rebuild its sales much above where they are today. Back in March 2013 New Nutrition Business said that “The best that Slimfast can hope for now is to achieve stability as a niche brand.” Nothing has happened to change that point of view.

The scope for diff erentiation is very, very limited. Anything that people want for weight management – portion-control packs, “natural ingredients”, protein, apps and eating advice – is already provided by a host of brands. And these brands are no special “diet foods” but “normal foods”.

Slimfast’s failure is one of a number of Unilever’s failures in weight management. Others include:

• A failed $40 million (€30 million) foray into Hoodia gordonii (see box).

• The spectacular launch and

failure of Lipton Linea “weight management tea”, based on green tea catechins.

What emerges clearly from the story of Unilever’s failed weight management strategy and also from the story of the failed weight

management strategy of Nestle (see New Nutrition Business January/February 2014) is that huge companies like these have no special competence in reading and understanding markets, fi ltering and understanding information or in creating and implementing strategy.

W E I G H T M A N AG E M E N T C A S E S T U DY

LIPTON LINEA: FAILED TO JUSTIFY A PREMIUM PRICE

Unilever launched Lipton Linea green tea-based drink in Europe in 2007. The weight management tea invited people to ‘Drink yourself into shape’.

Pricing was at a signifi cant premium. In Switzerland, for example, the RTD had a suggested retail price of CHF1.80 ($2.05/€1.48) – a premium of 70% over the regular Lipton ice tea range. Linea green tea bags sold for CHF4.90 ($5.57/€4.03), more than twice as much as regular Lipton Yellow Label tea bags.

But total European sales never rose above €50 million ($69 million) – a tiny portion of Lipton’s €1 billion (€1.4 billion) annual sales and a very low fi gure in a continent of over 250 million people.

A feel the difference campaign was introduced too late and lacked a tangible promise. Consumers will pay a premium for brands that have a measurable benefi t they can experience, but Linea did not deliver on this.

In addition, the format and packaging were the same as “regular” products, making it too easy to compare with Lipton’s standard offering – and see the 70% premium. That premium could have been achievable had the brand been strongly differentiated by its packaging.

The brand thus relied on the health benefi t and the ingredient (catechins) as the sole reasons to purchase, but there were weight management teas already on the market and Lipton’s offered nothing new. It was withdrawn in 2012.

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SLOW ENERGY CASE STUDY

Launched back in 1938, Soreen – the name is derived from that of the Sorensen family, the company’s original founders – is a fruit loaf. Made with malt, the brand grew up at a time when drugstores sold jars of malt for people to give to their children as a health supplement and malt loaves were widely consumed. At that time Soreen was one of a number of malt loaf brands and a slice of malt loaf – with butter – was a popular afternoon snack for children and adults alike.

Sixty years later, consumer tastes had changed and malt loaves were in long-term decline. Rival brands had disappeared. Soreen found itself a rare survivor from another era, sold on the bottom shelf in the supermarket aisle, barely distinguishable from the private label products, losing sales and usually on price promotion. Frequent changes of ownership did little to help. Sold in 2003 by its then-owner Warburtons – the UK’s biggest bakery group – it was re-sold in 2007.

Although the brand had been extended to include a number of variants, such as snack bars, these had not arrested the decline. The core fruit loaf was in trouble, with sales falling by 28% in 2008-2009. The customer base had shrunk to a loyal – but declining – core, of whom 64% were over 45 and 70% had no children at home.

Since a sure-footed relaunch in 2010, the emphasis has fallen on “squidgy energy”, on an association with activity and on the product’s relatively low-fat nutrition – paving

the way for an uplift in brand value, and culminating in a sale to UK food manufacturer Samworth Brothers earlier this year.

The turnaround began with the appointment of a new managing director, Paul Tripp, who embarked in 2010 on the road to a successful revival and re-positioning of the brand, which lifted sales by 47.8% between 2011 and 2013 (according to IRI data), from £19.4m ($33.1m/ €24.4m) to £28.8m ($49.1m/€36.4m). The elements of the successful strategy included:

• New fl avours and variants and an emphasis on fruit ingredients

• New snack-size packages and new consumption occasions

• A consistent focus on a message of “squidgy

energy” (the word ‘squidgy’ referring to the texture of the product) and low fat

• Targeting new consumer groups – specifi cally families with children and physically active adults

• A major investment in marketing expenditure

A steady stream of new product launches has led to a range of 22 SKUs, including diff erent sizes, sliced and lunchbox variants, such as:

• Mini-loaves: two individually-wrapped, single serve “loaves”, each with just 95 kcal, for on-the-go consumption

• Buttered snack-pack: two slices, already spread with butter, as a single-serve snack

Slow “squidgy” energy delivers fast revival for old brand

How do you breathe new life into a traditional food, sold under a 75-year-old brand, which has falling sales and a strong image as an afternoon snack for grandmother? The story of Soreen shows how an old brand can be revived with an energy message and convenient formats and drive impressive sales growth at premium prices – even against the background of a weak economy. By PAUL GANDER and KINE BJORALT.

SOREEN’S KEY MESSAGES

• Gives energy

• Low fat

• ‘Deliciously Squidgy Energy‘

• Healthy snack option

• Example of product description:“Low in saturated fat, the Soreen Banana loaf is the perfect guilt free morning snack”

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SLOW ENERGY CASE STUDY

The range has also been continuously extended with new and more interesting fruit fl avours – such as orange, apple & cinnamon, and banana – and the presence of fruit is strongly communicated in advertising and on the package.

Improved signposting on-pack and on the website about consumption occasions aims to get consumers thinking about Soreen as a lunch, breakfast or snack option far beyond its traditional “afternoon snack for grandmother” usage.

“It’s not just a tea-time snack,” says Simon Preece of brand consultancy Elmwood, which worked on the relaunch of Soreen. “It’s become more quirky, more of an active, lifestyle brand; proper food which fi ts in with modern life.”

ENERGY MESSAGE APPEALS TO SPORTSPEOPLE

The re-positioning on an energy platform was made possible because, it emerged from consumer research, Soreen was already seen as a legitimate platform for the brand by sports-active people and had a particularly strong following among amateur runners and cyclists. Although the appeal is energy, it’s likely that in the increasingly protein-focused world of sports the more informed sports people will have noticed that many Soreen products also deliver 9g or more of protein per 100g, thanks to the whey used in the product recipe (although Soreen makes no communications about protein).

“The cycling community, for instance, uses Soreen all the time. It provides a massive energy boost. But it’s almost been an ‘underground’ phenomenon,” says Preece.

An important part of the revival of Soreen has been to sponsor and do sampling at running and cycling events. So popular is Soreen among cyclists that it’s even possible to buy a cycling shirt with the Soreen brand.

TABLE 1: NUTRITION SNAPSHOT FOR SOREEN FRUIT LOAF

Five fruits in one moist Soreen Fruit loaf – what more could you want?

Packed with a tasty mix of fruits, including sultanas, raisins, cherries, lemon and orange, it is our fruitiest loaf yet. This loaf has it all (well as far as fruit is concerned). Fill the gap between breakfast and lunch with a wedge of our favourite fruit loaf.

How to enjoy me: Straight out of the pack, but make sure you put the loaf away for safe keeping to avoid accidental consumption of the rest of the loaf!

CHART 1: SOREEN SUCCESS DESPITE PREMIUM PRICING

Prices shown in a price per kg equivalent.

0

1

2

3

4

5

6

Soreen Moist Fruit Loaf, Cinnamon &

Raisin

Irwins Irish Fruit Loaf

Warburtons Cinnamon & Raisin

Loaf

ASDA Fruit Loaf

£4.80($8.10/€6.00)

£3.83($6.48/€4.83)

£3.25($5.50/€4.10)

£2.12($3.58/€2.67)

£

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SLOW ENERGY CASE STUDY

PLAYFUL MARKETING

From Elmwood’s perspective, the use of a “conversational tone of voice” in brand communications was important. This is refl ected in the strapline ‘deliciously squidgy energy’ and in the way the product itself is given a playful personality, with messages such as: ‘Squeeze me. Come on, don’t be shy.’

Marketing forges a strong link with kids and families on the one hand – with games and special off ers to kid-friendly events – and outdoor activities on the other.

As well as TV and print advertising and PR Soreen has a strong digital presence, developing a sense of community through sponsorship of grassroots sports events and through

its “Grapevine” consumer network. The re-positioning has enabled

this old niche brand to grow its sales rapidly despite selling, as Chart 1 shows, at a 100% price premium to own-label products from supermarket chains such as WalMart-Asda, when compared on a price per kilo equivalent basis.

Equally impressively, Soreen has achieved this while sticking with ingredients and a recipe that would fail many consumers’ criteria for “all natural” (see box of ingredients and nutrition facts on page 15). It’s a reminder that although “natural” and “free-from preservatives” is a key consumer need in consumer research, in practice if your product delivers other benefi ts that are important to the consumer – such as energy

for active people – a good number of people are willing to overlook shortcomings in other areas. The brand also makes no concession to the gluten-free trend.

‘PERMISSION TO INDULGE’

Soreen is an excellent example of “permission to indulge” – the product is labelled as low in fat, making it easier for people to feel OK about spreading it with butter. The “energy” message is also – as the success of Belvita breakfast biscuits has proven in another category – something that has such strong consumer appeal that people seeing it will give themselves permission to buy an indulgent product as a snack, even one such as Soreen which is between 18g and 25g

Soreen’s focus on energy is refl ected in its product search page, which lists “afternoon dip” as a search criteria.

Soreen’s link to energy is underscored by this branded cycling jersey – available to buy for just £49

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of sugar per 100g depending on the product.

The brand is stocked by all the major UK retailers (and is also now sold in Spain and Canada) but the eff ect of the relaunch on its position inside particular chains is telling. According to Elmwood, Asda used to stock four of the ‘old’ Soreen lines. After the relaunch, that number rose to 12, plus two promotional lines. Above all, the relaunch allowed the brand to abandon its former ‘strategy’ of selling on a permanent two-for-one multibuy deal in the supermarket. In Sainsbury’s, overall value sales of Soreen rose by 60%, while volumes of fruit loaf sales saw a 132% increase.

The Soreen case demonstrates that return on investment can be surprisingly fast when a rather staid, two-dimensional brand is revived with convenience and a message that enables consumers to give themselves permission to indulge.

A STRONG PRESENCE ON SOCIAL MEDIA

  The Soreen twitter account has been active since 2009

  7,077 tweets and 17,400 Followers

  In addition to having similar posts to Facebook Twitter used to communicate and connect with consumers by answering tweets or re-tweeting mentions and have Tw

i i h i S l

• The Soreen twitter account has been active since 2009

• 7,077 tweets and 17,400 Followers

• In addition to having similar posts to Facebook Twitter is used to communicate and connect with consumers by answering tweets or re-tweeting mentions and has Twitter competitions where consumers can win Soreen samples.

YOUTUBE

• 20 subscribers and 28,585 views combined on 6 videos. • The channel is used to post new and old ads

SPONSORSHIP AND SAMPLING KEY TO ENERGY SUCCESS

The Bupa Great Manchester run, 2013 “The Soreen Team attended the event for a second year in a row, by handing out their ‘Deliciously Squidgy Energy’ and getting to meet some of Soreen’s biggest fans in the glorious sunshine - they felt they added to the brilliant experiences and memories of the day.”

Edinburgh Sky Ride, 2014

Sponsorship and free samples at Edinburgh Sky Ride 2012

“The Soreen Team spent this weekend in Scotland for the Edinburgh Sky Ride, located directly under Arthur’s Seat - The Soreen Van was in the main activation area meaning that thousands of cyclists could fuel up for their rides on our latest products including Lunchbox Loaves and Toastie Loaf.”

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P R O T E I N C A S E S T U D Y

Quorn is one of the least well-known but most impressive success stories in the nutrition business and has been recognised by industry executives as “the greatest food innovation of the last fi fty years” and “the fi rst new food since the potato”.

Quorn boasts the perfect nutritional profi le for today’s consumer: it contains no allergens, it’s low in fat and high in fi bre and is a good source of protein that’s on a par with meat in terms of its essential amino-acid content.

DELIVERING AN UNFAMILIAR

INGREDIENT IN FAMILIAR FORMATS

The brand had its genesis back in the 1960s when it was widely believed that the 21st century would witness a protein shortage – a belief that is looking now like a good forecast.

UK-based food group RHM was one of a number of companies that embarked on developing new proteins and the company successfully isolated an organism from soil – Fusarium sp. A3/5 – which could be processed into an edible protein, called mycoprotein. This led to the formation of a joint venture with pharmaceutical group AstraZeneca called Marlow Foods, which began the commercialisation of Quorn – as the ingredient came to be called – in 1985.

To overcome people’s natural reluctance to consume a new and unfamiliar food ingredient based on soil fungus, Quorn has long had a new product development eff ort geared

to delivering Quorn in forms, such as ready meals, which are familiar and acceptable to consumers. Today the range encompasses almost 100 products, both chilled and frozen.

Launched in 1993, today Quorn is a global brand – marketed in 15 countries – with sales of over £200 million ($340 million/€252 million).

The Quorn brand message has been developed over the years. After initially nailing itself into the “vegetarian food” niche, Quorn broke out to a wider consumer market by focusing on taste, convenience and positive health. In the last two years Quorn has repositioned itself on its protein benefi ts – and is reaping the rewards in growing sales.

“Around 18 months ago, our marketing team asked the question: What do we want to stand for?” says Julian Cooke, head of UK category management at Quorn Foods. “We

wanted to make Quorn a positive choice rather than a negative one.”

Like many healthy foods and ingredients, Quorn has many positive stories to tell, but has to be selective in its focus. As Cooke puts it: “We’ve been blessed – and cursed – with multiple positive messages, so we have to choose the key messages carefully. It’s a very sustainable product, too. In Sweden, for example, which is admittedly not a huge market for us, Quorn’s sustainability is a massive part of the message.”

POWERFUL HEALTHY PROTEIN MESSAGE

In 2013 Quorn began positioning itself as “healthy protein” – a move that largely coincided with the beginning of the horsemeat crisis in Europe, a scandal which revealed that horsemeat had been sold labelled as beef in a wide range of products.

A healthy protein product for our time

Having repositioned itself on its protein benefi ts, meat-substitute Quorn – made from soil fungus – is enjoying growing sales and a global presence in 15 countries. Its success is also down to new product development efforts geared towards delivering Quorn in forms that are familiar and acceptable to consumers, and now, for the fi rst time, it has introduced snacking options for Quorn consumers. By PAUL GANDER and JULIAN MELLENTIN.

Message: A healthy Protein

Nutrition values

Image of suggested recipe

Message: Meat free

Cooking time

QUORN BRAND ARCHITECTURE UK

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P R O T E I N C A S E S T U D Y

“It was a catalyst for trends that we’d already been seeing for a long time,” says Cooke. “Sales grew by 13% during 2013, and we think a couple of percentage points of that growth came from the horsemeat scandal.”

The power of the “healthy protein” message has clearly proven to be of more durable value to the brand than the horsemeat scandal – fi gures for the fi rst quarter of 2014, by when the horsemeat scandal was largely forgotten by consumers, show growth at 13.5%.

HEALTHY PROTEIN FOCUS BRINGS NEW

CONSUMERS

In 2014 the company has fi rmly targeted physically active consumers, hiring Olympic gold medal runner Mo Farah as the brand ambassador and putting him into TV commercials.

In 2013 research group Kantar estimated the number of UK adults who visit a private gym or health club at 2.6 million. “This is one of the big target groups for us,” says Cooke. “We

think our brand resonates hugely with them.”

The focus on protein appears to be shifting the profi le of Quorn buyers. “We have a slightly younger and more upmarket consumer base than most brands,” Cooke explains. “We tend to be a big deal to retailers, given that we bring in twice the average basket spend of the typical shopper.”

“Around 70% of them are non-vegetarian, though that is evidently not the case when it comes to the share of volume bought by non-vegetarians,” he says, adding that the relative importance of those non-vegetarian shoppers is continuing to grow.

“Quorn is demonstrating that it is not niche – it’s part of the mainstream,” Cooke states. “Of

TARGET CONSUMERS ACCORDING TO QUORN (FROM WEBSITE)

TABLE 1: NUTRITIONAL SNAPSHOT FOR QUORN INDIAN SAMOSA SNACK

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P R O T E I N C A S E S T U D Y

course, there is a group of what you can call ‘committed carnivores’. But some 70% of UK consumers say they are open to the idea of a meat-free meal. We estimate that only around half of this number are actually putting that into practice.”

It is estimated that 12.2 million people are regular buyers in the UK and Quorn has overtaken Heinz tomato ketchup in market researcher Nielsen’s ranking, to become the UK’s 35th biggest brand.

GLOBAL GROWTH

A third of Quorn’s £200 million ($340 million/€252 million) sales are outside the UK – identifi ed as key to the brand’s growth – and in 2014 growth rates in international markets have outstripped those of the UK. Quorn is growing steadily in France, Sweden, the Netherlands, Singapore and many other markets. It is the top-selling meat substitute in Australia, with 52% growth in 2012 and 15% in 2013.

In the US the market share was 7.5% in 2013. “This year is about getting the US business fi ring, and it’s starting to do that,” says Cooke.

FIRST FORAY INTO SNACK FORMATS

In the meantime, the brand owner says it has been working hard to keep up with consumer eating habits and cover any gaps left by this now extensive range. So, for instance, in June this year it introduced snacking options in the form of ‘pork pies’ and sausage rolls. “We’ve been asked about this for a long time,” Cooke says. “We struggled with it, and couldn’t get it right, but fi nally cracked it. After all, snacks are a great way to recruit new consumers to the brand.”

  6,162 tweets, 993 retweets and just under 7,000 followers (June 2014)

  The brand is good at interacting with consumers by retweeting relevant tweets, but do not send replies unless

• 6,162 tweets, 993 retweets and just under 7,000 followers (June 2014)

• The brand is good at interacting with consumers by retweeting relevant tweets, but does not send replies unless there is a direct question. They post about news, new ranges, new ads and engage with competitions.

• Using two hashtags #ahealthyprotein and #MakeYourDishFamous

QUORN ON TWITTER UK

“You do not have to be a vegetarian to enjoy Quorn”

QUORN ON YOUTUBE, UK

32 videos with 70,468 combined views and 412 subscribers. The YouTube page is used to post TV ads, interviews and recipes.

QUORN FACEBOOK UK

Quorn UK has just under 160,000 likes with 25-34 years olds being the most engaged group. Most replies to consumers are generic such as “have a look at our FAQ section” and they do not reply unless there is a question.

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P R O T E I N C A S E S T U D Y

GROWING EVIDENCE FOR LIPID AND WEIGHT MANAGEMENT BENEFITS OF QUORN

What is mycoprotein?Mycoprotein is the ingredient in the Quorn brand – all Quorn products are processed from it – and a technology which is proprietary to Marlow Foods. In very simple terms, on a weight-for-weight basis mycoprotein has almost as much protein as an egg, more fibre than a baked potato, two-thirds of the fat of skinless chicken and zero cholesterol.

In many Quorn products the protein level is supplemented with wheat protein, pea protein and dairy protein.

Protein

• Mycoprotein contains high quality and easily digestible protein at a level of 11g per 100g and this translates in processed Quorn products to 12g-15g per 100g.

• All nine essential amino acids are present in significant amounts in mycoprotein – including, for example, lysine – and it is comparable to meat in terms of essential amino acid content.

• Quorn products are 60%-90% mycoprotein.

Fat

• Mycoprotein has 3.1g of total fat per 100g, of which 0.71g is saturated fat. The remainder is polyunsaturates. Mycoprotein is free of cholesterol and trans fats.

• Although in regulatory terms most Quorn products cannot be described as low fat (that is, having less than 3g of fat per 100g) they are always significantly lower in fat than comparable meat products.

• There is approximately (per 100g) 2.8g -9.9g of total fat and 0.5g-2.8g of saturated fat in Quorn products depending on the production process used. All products are trans fat free.

Fibre

• Mycoprotein is an excellent source of dietary fibre. Total fibre is 6g per 100g (wet weight) of which 88% is insoluble and 12% soluble.

• And 65% is beta 1,3 and 1,6 glucans and 35% chitin.

• Quorn products are a good source of dietary fibre – Quorn pieces, for example, have 4.9g per 100g.

Nutritionally healthy protein source. Protein contributes to a growth in an maintenance of muscle mass

The scene switches between Olympic distance runner Mo Farah running (and the longer the runs the more people fall behind) and eating a meal.

Mo Farah voice over: People say “what’s your secret?” but there’s no secret. You train a lot and you eat right including loads of protein. Quorn Mince is a healthy protein source because it is low in saturated fat. Practise- Protein, Practice- Protein. I don’t keep secrets. I just keep going. Make Quorn Mince part of your program.

TV CAMPAIGN 2014

Protein contributes to a growth in and maintenance of muscle mass.

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F A I L U R E C A S E S T U D Y

It took 10 years for Honest Tea to sell its fi rst 112 million bottles. But since Coca-Cola purchased its fi rst interest in the organic-tea innovator in 2008, Honest Tea has sold 888 million more.

That totals one billion bottles, and co-founder and “Tea-E-O”’ Seth Goldman and his team celebrated the landmark sale in June. In 2013 alone the brand achieved $112 million (€84 million) in sales. Back in 2010 Honest Tea had sales of just $20 million (€15 million).

One of the biggest changes is how a kids-specifi c line is propelling overall growth of the brand.

Containing no added sugar Honest Kids proves that the Honest brand can extend beyond its roots. Supermarket scanning data suggests that it may account for over 40% of total brand sales. Even more impressively, Honest Kids may account for 60% of total Honest brand growth over the past three years (for a full Case Study of Honest Kids, see NNB’s Kids Nutrition Report, Spring 2014 at http://www.new-nutrition.com/report/showReport/1158.

“It proves that things that are core to our brand certainly can be applied to other categories,” Goldman told Kids Nutrition Report. “Those are lower-calorie, authentic ingredients that help us connect to the natural world more directly, and having a consciousness about what we put in our products through fair trade or other supplier relationships. By no means is that exclusive to tea.”

But not all diversifi cation attempts have worked out.

Launched in April 2011, Honest CocoaNova was the biggest brand stretch. CocoaNova was a brewed cacao infusion that contained 50

calories and 13g of sugar in a 10.1oz (300ml) bottle as well as 50mg of theobromine, which occurs naturally in cocoa and dark chocolate and has well-established cardiovascular eff ects (although CocoaNova carried no claims). “It’s really a chocolate drink,” Goldman explained to NNB at the time of launch.

USDA Certifi ed Organic and Fair Trade Certifi ed cacao beans were roasted and ground into a cocoa powder, which was then brewed through a patent-pending process to create Honest CocoaNova. Labels displayed the CocoaSource mark – which denotes the antioxidant power naturally found in cocoa – developed and licensed by Apure Foods, a company owned by Hershey.

Honest Tea worked out the CocoaNova-brewing process with Hershey in a partnership that predated the company’s relationship with Coca-Cola. “We’ve been working on this with Hershey for years; it took a while to get it to market,” Goldman said.

CocoaNova initially went into distribution in Mint Cacao, Mocha Cacao and Cherry Cacao fl avours at a very aff ordable retail price of $1.99 (€1.48).

“It has the cocoa fl avour to it but it doesn’t have the fat. It’s got a nice taste to it and we believe it will do really well in the marketplace,” said Goldman in 2011. “It has healthy properties and is low in calories. If you think about the ingredients, everyone has tasted them, but not in this form. It’s really a new functional

category.”In 2014, however, CocoaNova is

no more. For loyal consumers who strongly identifi ed the Honest Tea brand with tea, selling a cocoa drink was a stretch too far for the brand to remain credible.

“People didn’t know what it was – a cocoa drink or a chocolate drink – and it wasn’t clear,” Goldman told NNB in 2014.

Honest Tea faced challenges in terms of branding and identifying CocoaNova and explaining it to consumers accustomed only to Honest Tea iced-tea products and Honest Ade fruit drinks.

“We had to come up with a separate name for it so people don’t think it’s tea,” Goldman said. “And it’s not a cocoa drink like they’re used to. It is cocoa as they’ve never known it.”

The product neither looked nor tasted like any of the light tea-related beverages that people identifi ed with the brand.

“We don’t want people to think we’re running away or backing off from tea,” he said. “I’ve seen lots of beverage brands that come out and get started in one thing and then move to another and, before you know it, they forget what they’re about.”

Tea can’t stretch to chocolateStretching a brand too far is one of the most common causes of failure. Yet senior managements are fond of brand extensions, despite abundant sales data that shows that more often than not they have modest sales – or more usually fail. Even successful brands like Honest Tea have found limits to how far a health brand can go. By DALE BUSS.

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B E V E R A G E C A S E S T U D Y

Talking Rain, a company founded back in 1987, built its business steadily and over several years. But then the consumer trends shifted in its favour. A growing number of Americans – and particularly young Americans – began to worry more about sugar and to turn away from established products, such as colas and carbonated soft drinks, (see NNB Case Study June 2014) to things they perceived as being lighter, healthier and more aligned to water and fruit.

Talking Rain found that its pioneering, zero-calorie fl avoured sparkling-water brand, Sparkling Ice, was perfectly aligned with the new consumer preference and sales soared from just $25 million (€18.6 million) in 2010 to about $500 million (€372 million) by 2013.

“They’ve found a niche and done a very good job of fi lling it,” observes Tom Pirko, president of Bevmark Consulting, one of the leading industry consultants in the United States. “They’re also benefi ting from a confl uence of diff erent trends – consumer reactions against carbonated soft drinks and sugar, and their self-identifi cation with the esthetics of well-made products. Consumers think Sparkling Ice gives them the best combination of all beverage types: the fl avour and carbonation of a soft drink and no calories.”

The company, based in the state of Washington in the north-west US, has had the ultimate compliment of fl at-footed industry giants – such

as Coca-Cola and Nestle –belatedly launching me-too fl avoured sparkling waters.

Talking Rain’s approach is at least to publicly welcome other players to the category and promise to out-perform them. “We think competition is great,” Kevin Klock, the 45-year-old chief executive offi cer who was recruited by the founders four years ago to scale up the company, told New Nutrition Business. “We need more successes in the category to expand the shelves, to convince retailers to add shelf space so there is more opportunity for us. The more competition there is, the more attention it brings to us without our having to spend a lot of money on marketing and advertising.”

Talking Rain was started in the Seattle area by a couple of natural food suppliers to restaurants, who then approached a trio of angel investors about expanding the company. The three investors – who now are in their seventies – decided to invest $300,000 (€223,000) to take a majority stake in Talking Rain.

Talking Rain’s Seattle connections paid off in 1990, when Perrier

had to launch a global recall of its sparkling water. Talking Rain management pitched their newly-created Sparkling Ice brand to Seattle-based supermarket chain Costco as a Perrier replacement in its fast-growing club stores.

MONTHS AWAY FROM FAILURE

But when Talking Rain subsequently tried to spread beyond the Pacifi c Northwest in club stores elsewhere around the US, the rest of the country proved unready. And after Talking Rain invested in a larger sales force and two new drinks, retailers soon spurned them. New products did not fare well: Twist was a water that was too lightly fl avoured, and Active Water was a vitamin-enriched beverage that was eclipsed by Coke’s Vitaminwater and PepsiCo’s SoBe Lifewater. By mid-2010 Talking Rain was months away from demise or from shrinkage back into a regional brand, and top executives left.

The trio of original investors – Lawrence Hebner, Donald Kline and Donald Jasper – turned to one of the executives who remained, Klock, who

Talking Rain: the 25-year “overnight” success story

The business press is full of stories of people who created start-up brands, quickly achieved massive success and within a few years sold out for breathtaking sums of money. But such “overnight” successes are rare. A far more realistic story is that of drinks company Talking Rain – many years of hard work and investment that eventually pays off. By DALE BUSS.

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B E V E R A G E C A S E S T U D Y

was vice president of operations, and made him CEO. Klock seized the chance to turn around Talking Rain, proposing a much bigger bet on Sparkling Ice than the company ever had made. His timing would prove excellent in part because Americans were beginning to spurn not only full-calorie soft drinks but also other sorts of sugary beverages.

A market test in Kroger supermarkets in Indiana was a quick success and Klock quickly expanded distribution, asking retailers to swap out shelf space devoted to the company’s Twist and Active Water brands and give it to Sparkling Ice. Talking Rain generated $60 million (€45 million) in revenue in 2011 and, by 2012, had locked in distribution with dozens of America’s top beverage retailers.

Recently, convenience-store retailers in the US predicted that the bottled-water category would achieve an 11% sales increase while energy drink sales will rise by 10%, iced tea by 9% and sports drinks by 7%. Wells Fargo Securities surveyed retailers representing more than 15,000 convenience store locations across the country.

Klock believes his big bet on Sparkling Ice has paid off for at least

four reasons:1. The brand zigged when the

rest of the industry zagged. “I think the beverage industry lost sight of the fact that refreshment was an extremely important element in the market,” Klock said. “In the last 10 to 15 years, everything kind of shifted into the mode where it had to be about [nutritional] functionality,” Klock said. “But if you go back to the original really big beverages, they were all about refreshment and energy. Energy drinks have taken off but we’ve seen a real decline in the soda category. Yet consumers are still craving something sparkling. That left it wide open for us.”

2. Interesting fl avours. Sparkling Ice has always boasted robust and unusual fl avours, such as coconut pineapple, strawberry lemonade and peach nectarine. “We hit on how consumers really wanted fl avours,” Klock said. “Look at the beer, liquor and food industries – today’s consumers want more fl avour. They don’t want steak and potatoes anymore, and they see cola and lemon lime soft drinks as the steak and potatoes of the beverage industry.”

One principle Talking Rain uses in creating new fl avours of Sparkling

Ice is to pair an unfamiliar fl avour with a familiar one, such as in peach nectarine. “Most consumers don’t stray from what’s familiar yet they may want to try a unique fl avour from time to time,” Klock explained. Every new fl avour introduced since 2010 after extensive consumer testing by Sparkling Ice has led to incremental sales, he said.

Talking Rain also has capitalized on a renewed interest in full fl avour, Klock said, by being scientifi c as well as creative about the tastes it combines in Sparkling Ice. “It has to make sense to consumers from a neurology standpoint. The visual of fruits, the colour of the product, the smell of it and taste all need to hit on the same elements and be consistent with one another. That’s part of the brand experience.”

For that reason, he said, Talking Rain will “never” off er a fruit-punch variety. “We want you to be able to identify with the fruits in the product, not just that it’s a blend,” Klock explained. About the closest the brand will get is its new cherry limeade fl avour.

And because of the primacy of fl avour in the Sparkling Ice experience, the brand is careful not to fi eld varieties where it can’t make the

SPARKLING ICE SOCIAL MEDIA

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B E V E R A G E C A S E S T U D Y

TECHNOLOGY CASE STUDY

fl avour work the way it wants. “We’ve never been able to make Sparkling Ice work with grape or with plain cherry fl avours,” Klock conceded. “We’ve never been able to get a grape that doesn’t remind people of cough syrup, and that’s not what you want consumers to be thinking.”

One of the fi rst beverages to use sucralose exclusively as its sweetener, Sparkling Ice has stuck with it even though other “all-natural” sweetener possibilities, such as stevia, have come along lately. Again, part of the issue is not upsetting the fi nely tuned fl avour profi les of Sparkling Ice, and stevia users often have struggled to mask the ingredient’s strong aftertaste.

3. Premium pricing. Klock insists on keeping the brand as an identifi ably premium product, defi ned by its price as well as its characteristics. Its suggested retail prices remain $1.79 (€1.33) per bottle and Klock doesn’t want to see retailers with regular prices below $1.29 (€0.96). He also rejects the idea of discounting Sparkling Ice to below $1.00 (€0.74) a bottle.

“We feel it’s important not to get into a high-low game,” he said. “The consumer doesn’t like to see something that is normally priced at $1.79 go on sale for 79 cents or they’ll never buy it again. Dropping to $1 still leaves us in the premium category although aff ordable.”

4. It has had the fi eld of fl avored sparkling waters pretty much to itself. “We were fortunate,” Klock said. “We actually stayed off the radar for the fi rst couple of years [of rising Sparkling Ice sales] and didn’t say much about what was going on. We went into the sparkling-water category where Coke and Pepsi weren’t—it was an area that wasn’t even being paid attention, which allowed us to get quite large quickly, without being seen. We were allowed to get big enough and strong enough to show the retailers that we were delivering the value.”

He attempted to ratchet up brand

awareness last year with the fi rst advertising campaign for Sparkling Ice, a $15-million (€11 million) eff ort that included national TV commercials as well as billboards and building-side spectaculars in 14 markets. The brand also sponsored the Ladies Professional Golf Association tour, putting the brand in front of its national TV audiences – and the key demographic of 35-and-older consumers, split about 50-50 between men and women.

Coca-Cola since has launched Glaceau Fruitwater in bottles and Dasani Sparkling Water in cans. And Nestle Pure Life has just introduced Exotics Sparkling Waters in cans

Pirko noted that Coca-Cola and PepsiCo have been “slow to get into the game – but then again, that’s how they do it with new categories.” But, he added: “In this case, the giants waited too long. The product category already has grown and it is stable. As the fi rst one in, Talking

Rain has defi ned the category. It’s a niche in between a lot of other things, but it grabs consumers in a very real way.”

CATEGORY CREATOR TO MAINTAIN ITS LEAD?

Klock predicts that Sparkling Ice’s domination will continue, not wane. “You look at 5 Hour Energy, Frappucino, Vitaminwater and SoBe, in its day – the fi rst to market in a category typically keeps dominating,” he said. “And that’s what we’re doing right now is dominating the category. The gap between us and the competition is actually growing. Fruitwater – the No. 1 competitor to us – is actually down in sales year over year. Ultimately the fi rst to market can be the substantial leader, and that’s what we’re going to continue to be.”

Pirko agreed. “This company,” he said, “is in for a good, long run.”

TABLE 1: NUTRITIONAL SNAPSHOT FOR SPARKLING ICE BLACK RASPBERRY

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BAKERY

USA Two Moms In The Raw Two Moms In The Raw Tomato Basil Sea Crackers

Now retails in a 4-oz. recyclable pack. Handmade, raw crackers are 100% organic and contain no wheat, dairy, soy, gluten, GMO. USDA organic. According to the manufacturer, raw foods allow to ingest the chlorophyll that the sprouts have begun to produce, giving a large source of vitamin K.

Canada Delicious Without Gluten Delicious Without Gluten Chia & Garlic Vegan Pita

Free of gluten, dairy, peanuts, tree nuts, preservatives, and GMO.

Canada Delicious Without Gluten Delicious Without Gluten Apples, Carrots, Cranberries Breakfast Muffi ns

Free of gluten, dairy, peanuts, tree nuts, GMO and preservatives.

USA Megamex Foods Chi-Chi’s High Fiber Fajita Style Tortillas

Said to be an excellent source of fi bre and contain no trans fat.

BREAKFAST CEREALS

USA Small Planet Foods Cascadian Farm Organic Dark Chocolate Coconut Protein Granola

USDA Organic certifi ed. Features wholegrain oats, milk protein and a plant based pea protein. Contains 10g of protein per serving.

USA MOM Brands BetterOats Mmm... Muffi ns Thick & Hearty Blueberry Muffi n Instant Thick Cut Oats with Flax

Made with 100% whole grain and real blueberries, good source of ALA Omega-3. This naturally and artifi cially fl avored, microwaveable product contains 0g saturated fat, and retails in a 15.1-oz. pack containing 10 convenient and innovative measuring cup pouches.

USA The Chia Company Chia Pod Oats with Banana & Mango Comprises chia seeds, whole grains oats with coconut oil, banana and mango. Cold-processed, lightly sweetened, and contains 1.5g of omega-3, and 7g of fi bre. Free from GMOs and dairy. Heat and eat product is dairy free and retails in a 7.7-oz. pack, whereby the lid, spoon, and cup are all recyclable. Also available: Oats with Mixed Berry and Oats with Apple Spice.

Canada Nature’s Path Foods Nature’s Path Organic Qi’a Superfood Original Chia, Buckwheat and Hemp Cereal

Full of plant based protein, fi bre and ALA omega 3s while providing 6g of protein, 4g of fi ber and 2.5g of ALA omega-3s per 30g serving. The perfect zero sugar option product is free from GMO, gluten, wheat, added sugar or salt, and is a source of omega-3 polyunsaturates and fi bre.

Canada Nufora Foods Boring Porridge Boring Oats Berry Tangy Pure Oats

A no-frill cereal with all the healthiest bells and whistles with cranberry, blueberry, currants, goji berry, whole grain rolled oats, quinoa, fl ax and chia. This microwaveable product is free from wheat, barley, rye, GMO and contains only 5g sugar per portion. Also available: Mushroom Forest Pure Oats.

USA Giant Eagle Giant Eagle Nature’s Basket Sweet Oats & Almonds Multigrain Cluster & Flake Cereal

A good source of fi ber and contains 19g of whole grains per serving. Free from artifi cial fl avours, colours, preservatives, high fructose syrup, cholesterol, hydrogenated oils, and trans fatts. The fi ber rich food is said to help maintain healthy body weight by making the user feel full longer, and keep the digestive system running smoothly.

DAIRY

USA Blue Diamond Growers Blue Diamond Almonds Almond Breeze Almond Milk with a Hint of Honey

Free from dairy, soy, lactose, cholesterol, peanuts, casein, gluten, eggs, saturated fat and MSG. Made with real honey and almonds in a peanut free facility, it is an excellent source of Vitamins D and E, has 50% more calcium than milk and contains 50 calories per serving. Rich and creamy with a pleasant aftertaste and retails in a half gallon pack featuring the Support Honeybees logo, as the manufacturer is donating to Honeybee Research.

USA WhiteWave Foods Silk AlmondCoconut Blend Original Almondmilk & Coconutmilk

A blend of almond milk and coconut milk. Free from dairy, gluten, lactose, cholesterol, eggs, casein, MSG and soy, the certifi ed kosher product provides 50 calories per serving and 50% more calcium than dairy milk. This product is free from artifi cial colors, fl avors, high fructose corn syrup and is responsibly sourced.

DESSERTS & ICE CREAM

USA Mamma Chia Mamma Chia Seed Your Soul Chia Squeeze Blackberry Bliss Vitality Snack

Infused with organic chia, fruit and vegetable and contains omega-3, while also being a good source of fi ber and nutrients and providing 70 calories in every pouch. Suitable for vegans, USDA and organic certifi ed kosher product is free from gluten, GMO, BPA, and is described as a convenient, fun and tasty snack that naturally provides vitality to power the soul.

FRUIT & VEGETABLES

USA Rader Farms Jamba Fruit & Veggie Smoothies Red Fusion Smoothie Preparation

Comprises red raspberry, strawberry, dark sweet cherry, purple carrot and sweet potato. Provides a full serving of fruit and is an excellent source of vitamins C, A, K, B1, B6, D and E from vegetables. Free from gluten and dairy.

USA Earthbound Farm Earthbound Farm Organic Mango Peach Carrot Smoothie Kickstart

Organic veggies and fruit to start a smoothie. Rich in vitamins A and C, a good source of fi ber and free from gluten.

HOT BEVERAGES

Canada Metro Brands Irresistibles Immunitea Herbal Tea Described as a wellness-boosting preparation. Irresistibles Serenitea Herbal Tea is said to be calming and relaxing.

JUICE DRINKS

Canada Novidev Santé Active Superdose Antibacterial Anti+ Superfruit Pure Cranberry Juice

Contains 136 fruits and fi ber in each bottle. The cold pressed juice is not made from concentrate and is free from added sugar. Source of energy and boosts protection for the body.

USA Califi a Farms Cuties Tangerine Orange Pineapple Juice

Designed for kids, a blend of 100% pure squeezed juices with no GMOs or sugar added. Flash pasteurized, gluten-free product is never from concentrate.

Country Company Brand & Product DescriptionPART 1: NORTH AMERICA – FOODS & BEVERAGES

All new product information is sourced exclusively from Mintel’s GNPD (Global New Products Database), which can be visited at www.gnpd.com. Mintel can be contacted at 18-19 Long Lane, London EC1A 9PL, U.K.. Tel. +44-(0)20-7606-4533, Fax +44-(0)20-7600-3327

FUNCTIONAL & HEALTHY-EATING NEW PRODUCT LAUNCHESEach month we summarise new product launches from around the world.• Part 1: North America • Part 2: Rest of the World

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MEALS & MEAL CENTERS

USA Atkins Nutritionals Atkins Sausage with Egg English Muffi n Sandwich

Contains 18g of protein, 300 calories, 4g of carbohydrates, and no added sugar. Made with premium meats and real eggs and to aid easy weight loss.

USA General Mills Betty Crocker Suddenly Salad Select Grains & Quinoa Salad with Cranberries & Almonds

Includes a naturally fl avored lemon herb dressing. This just boil and mix product comprises a mix of brown and red rice, which work in tandem to provide a nutty, rich fl avor and chewy texture, and quinoa, a wholegrain with high nutritional content. Also available: Harvest Grains Salad, a blend of brown, wild and red rice, wholegrain quinoa, cranberries, almonds and a sweet blush vinaigrette dressing.

USA Phil’s Fresh Foods Evol. Panang Curry Chicken Comprises white meat chicken, brown rice, broccoli, carrots and snap peas, topped with an panang curry sauce. Microwavable product contains no gluten, and provides 19g of protein and 26g or more of wholegrain per serving.

Canada Minçavi Minçavi Bravodeli Thai Chicken Red Curry Sauce with Rice Noodles and Vegetables

Very high in protein, providing 27g protein and 250 calories per serving. Portion controlled.

USA Kellogg MorningStar Farms Sausage Egg And Cheese Breakfast Sandwich

Microwavable product contains 220 calories per serving, 41% less fat than the leading pork sausage, Egg & Cheese Muffi n frozen sandwich, excellent source of protein.

USA Amy’s Kitchen Amy’s Cheese Enchilada Now available in a new family size pack. Made with organic corn and tomatoes, the gluten free product is free from GMO, trans fat, MSG, preservatives, meat, fi sh, shellfi sh, poultry, eggs or peanuts.

OTHER BEVERAGES

USA Nurture Happy Child Organic Superfoods Vanilla Super Nutrition Shake

Provides organic nutrition to support an uneven diet and is an excellent source of calcium to support bone growth. Each shake contains eight grams of protein, three grams of fi ber and 21 vitamins and minerals and is free of corn syrup, artifi cial sweeteners, colorings, fl avors and preservatives. This USDA organic and kosher certifi ed product is an excellent source of antioxidants and contains 200 calories per serving.

USA Glacéau Glacéau VitaminWater Zero Drops Squeezed Lemonade Flavor Enhancer

Naturally sweetened fl avor enhancer with vitamins. Contains zero calories, is a good source of vitamins B5, B6, and B12, and contains electrolytes.

USA Abbott Laboratories Abbott Ensure Active Blueberry Pomegranate Protein Drink

Relaunched with a new brand, formerly “Abbott Ensure Clear”, an improved taste, and a newly designed pack. A fat free clear nutrition drink that contains 20 vitamin and minerals like vitamin A, vitamin D, vitamin E and vitamin K, is a good source of 8g of protein, is free of gluten, and suitable for those with a lactose intolerance.

SAVOURY SPREADS

USA Brunckhorst Brunckhorst’s Boar’s Head Roasted Red Pepper Hummus

All natural, free of gluten, cholesterol and trans fat. Low in sodium and saturated fat.

SNACKS

USA Quaker Oats Quaker Chewy Caramel Apple Granola Bars

Naturally and artifi cially fl avored and contain 8g wholegrain.

USA Small Planet Foods Lärabar Renola Berry Flavored Grain Free Granola Bar

Blend of non-GMO nuts, fruits and seeds. Also available: Cocoa Coconut Flavored Grain Free Granola Bar.

USA Meijer Meijer Naturals Strawberry Flavored Fruit Stripes

Naturally fl avored with no artifi cial fl avors or preservatives and no high fructose corn syrup or artifi cial sweeteners. Contains a full serving of fruit in each pouch, is a good source of vitamin C, and is gluten free. Minimally processed.Also available: Strawberry & Apple Fruit Bites, Raspberry & Blueberry Fruit Bites.

USA Kashi Kashi Southwest Barbecue All Natural Black Bean Crisps

Combination of black beans and whole grains. Provides 7g of wholegrain, 4g of fi bre, and 3g of protein from black beans and whole grains, contains no artifi cial ingredients, partially hydrogenated oils or high fructose corn syrup.

USA eatKeenwa EatKeenwa Krunc Cinnamon Banana Strawberry Quinoa Cluster Snack

All natural snack made with ancient grains. Free from gluten, GMOs, trans fats, soy, dairy and cholesterol. Also low glycemic, low in sodium and has 5g of fi ber per serving.

USA Beanitos Beanitos Hot Chili Lime Puffs Snack made from nutritious beans. Free from corn, gluten, GMO, cholesterol, trans fat, preservatives and MSG. This sea salted, low glycemic snack contains 4g fi ber and 4g protein per serving.

USA New Frontier Foods Ocean’s Halo Hot & Spicy Seaweed Chips

Baked seaweed chips with holy chili and fi ery spices. Free from gluten, MSG, GMOs, preservatives and anything artifi cial, and contain 85 calories, 2.5g fat and 5g protein per serving.

USA Ouhlala Gourmet BuddyFruits FruitBreak Blended Fruit with Coconut Milk & Raspberry

Vegetarian snack contains nothing artifi cial. The blend of raspberry and coconut offers a low sugar, low carb snack. Free from GMOs and dairy.

SPORTS & ENERGY DRINKS

USA Golazo Golazo Energy Sugar Free Hibiscus Caffeinated Electrolyte Drink

Free of gluten, artifi cial fl avors, colors, sweeteners, preservatives and GMO ingredients. Each can contains only 10 calories and 100mg of caffeine. Formulated to provide sustained energy from green coffee and yerba mate and hydrating electrolytes from potassium and sodium.

USA Glacéau Glacéau VitaminWater Energy Orange Mango Sparkling Energy Beverage

Features green coffee bean extract to provide a natural energy boost. Free of added preservatives and sodium, is lightly carbonated and an excellent source of vitamins B5, B6, B12 and C.

USA Red Bull Red Bull The Summer Edition Energy Drink

Said to vitalize the body and mind, and features the taste of tropical fruits. Contains 114mg of caffeine.

USA Walgreen Good & Delish Greek Style Yogurt Fruit Chews

Made with real cream, real milk and artifi cial fl avors. The gluten free product includes blueberry, cherry, green apple, banana and pineapple fruit chews.

Canada The Serious Sweet Company The Ultimate Confection Rum & Raisin Fudge

Rum fl avoured fudge with Jamaican rum and juicy raisins. Suitable for lacto-vegetarians and coeliacs.

WATER

Canada L.A. Aloe Aloe Gloe Organic Coconut Aloe Water

Pulp free water contains 300mg of organic aloe, provides only 50 calories, and is free from preservatives.

USA Rising Beverage Activate Beauty Exotic Berry Nutrient Enhanced Water Beverage

Available in a newly designed 16.9-fl . oz. BPA free recyclable pack. Unique cap can be twisted to release the vitamins. With fresh vitamins, is made to support against free radicals for healthier cells. Contains electrolytes and antioxidants, is free from GMOs, calories and sugar, and is naturally sweetened with stevia. Also available: Rebound Pineapple Coconut Nutrient Enhanced Water Beverage.

SUGAR & GUM CONFECTIONERY

SUGAR & GUM CONFECTIONERY

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Country Company Brand & Product DescriptionPART 2: REST OF THE WORLD – FOODS & BEVERAGES

BAKERY

France Régime Dukan Dukan Extra Rich Oat Bran Biscuits Rich in fi bres, reduced in fats and free from white fl our and added sugars. Contains oat bran that gives a well-fi lled stomach sensation, and helps keep a normal level of cholesterol.

France Distriborg Gayelord Hauser Diététicien Cocoa & Quinoa Biscuits

Recipe blends cocoa and quinoa seeds. Specifi cally developed for people who want to reduce sugar intake as well as for women who want to be comfortable with their bodies and feel beautiful. They do not contain added sugar and are a source of iron.

Germany Barilla Wasa Traditional Rye Crispbread with Natural Sour Dough

Baked dark brown containing 100% rye wholegrain fl our and malt. Rich in fi bre.

Ireland McCambridge John McCambridge Low-GI Bread Contains the fi nest ingredients, including linseed, jumbo oats, sunfl ower seeds and pumpkin seeds. Low in fat, a source of fi bre, and claimed to be more benefi cial to health and weight reduction, thanks to its low glycemic index.

Ireland Mondelez Belvita Breakfast Yogurt Crunch 5 Wholegrains Cocoa Biscuits with Creamy Live Yogurt Filling

Said to slowly release carbohydrates for four hours, is rich in cereals, a source of fi bre, contains added vitamins B1 and E, and calcium, magnesium and iron.

Israel Strauss Group Strauss Energy Biscuits with Whole Cereals and Blueberries

Said to help increase energy levels, and contain oats, calcium, iron, dietary fi bre and folic acid.

Italy Kellogg Kellogg’s All-Bran Panfrutta Wheat and Oat Cake Slices with Sultanas

Rich in fi bre, containing 9% of the recommended daily intake. Golden baked with all the goodness of wheat, oats, raisins, and apple, represent an easier way to increase fi bre intake. Enriched with vitamins including niacin, vitamins B6, B2, B1, B12, folic acid and iron, is free from artifi cial colours, and suitable for vegetarians.

Mexico Productos Orgánicos de America Fibrafi t Extra Fiber Digestive Cookies Made with organic fi ber, which helps to eliminate excess of fat and toxins, and helps in achieving a good digestion by avoiding constipation and cleaning the intestines. Fiber also helps to lower glucose and cholesterol levels, and provides high satiety being it suitable for weight control diets. Sweetened with organic agave, which is a natural sweetener with a low glycemic index that does not increase the sugar levels in blood, features prebiotic properties and is a stimulant for the intestinal fl ora, as well as a source of energy. Free from sugar, trans fat, cholesterol and preservatives. Also available: PO Caana Strawberry and Nut Flavored Oat Cookies.

Netherlands Rude Health Rude Health Spelt Oaty Biscuits. Wholegrain, non-GMO and contain no artifi cial ingredients or refi ned sugars. Made with Scottish oatmeal and are said to be high in fi bre. Oats are comforting and satisfying while the spelt is rich and nutty.

Netherlands Naturecrops Europe NatureCrops Quinoa Flour 100% certifi ed organic, grown without pesticides and is fairly traded. The non-GMO product is low in glycemic index (35), contains lots of protein, is a good source of fi bres and contains more minerals than any other type of cereal. Low in fat and sodium, is a good source of iron, and contains no saturated fats, trans fats or cholesterol. Moreover, quinoa is free from gluten, contains all essential fatty acids and provides an ideal basis for nourishing, gluten-free and natural meals.

BREAKFAST CEREALS

Australia Freedom Foods Freedom Foods Active Balance Multigrain & Cranberry Cereal

A combination of buckwheat, sorghum, pepitas and cranberries. Whole grain cereal features probiotics for digestive balance and is an excellent source of fi bre. It does not contain gluten, wheat, nuts, artifi cial colours or fl avours. Provides 25% of the daily fi bre intake, keeping the consumer fuller for longer and insuring optimal digestion to increase the energy level.

Czech Republic Semix Semix Zdravý Zivot Buckwheat Muesli Made with buckwheat, millet, rice and amaranth, and enriched with folic acid.

Finland Ravintoraisio Elovena Plus Instant Porridge with Whole Grain Oats, Forest Fruit & Milk

Rich in wholemeal, calcium and fi bre and contains 10g protein per portion. It features low lactose milk powder and beta-glucan from oats, which helps to lower cholesterol.

Israel Unilever Telma Branfl akes Bites Cereal squares made with whole oats, whole wheat and fl ax seeds. Rich in dietary fi bre.

Israel Dorset Cereals Dorset Cereals Porridge Oat and Barley

Contains chunky jumbo oats and creamy barley. This simple to cook product is high in fi bre, contains whole grains and is free from added preservatives and sugar.

Japan DHC DHC Protein Diet Rich Chocolate Diet Flake

New limited edition product features crispy healthy fl akes and chocolate fl akes. One serving is said to provide 16 types of vitamins and minerals needed for one meal, as well as co-enzyme Q10, ornithine, collagen, n-acetylglucosamine and dietary fi bre.

Mexico Kind Kind Healthy Grains Cinnamon Oat Clusters with Flax Seeds

A high source of fi ber and contain 5g of fi ber, 720mg of omega-3 fatty acids and 16g of whole grains.

New Zealand Sanitarium Sanitarium Weet-Bix Energize Breakfast Cereal Biscuits

High in protein and iron, low in sugar and fat, and contains 82% wholegrain. Contains the nutritional goodness of carbohydrate and fi bre. Each serve provides: 11g of protein to help build muscles; iron, niacin, thiamin and ribofl avin to help release the energy to power the day; and folate to help fi ght fatigue.

Poland Agus Agus Hello Day! Glamour Oat Flakes with Milk, Raspberries & Kiwi

Enriched with vitamin C, which contributes to collagen formation for normal function of skin; vitamin E which contributes to protection of cells from aging; and selenium to help with maintenance of normal hair and nails. Wholegrain.

Japan Ito En Ito En Stylee Carbonated Lemon Drink Relaunched. This is a FOSHU-certifi ed product formulated with 340mg monoglucosylhesperidin which reduces neutral fat in bloodstream. It contains no sweetener, caffeine or calorie.

CARBONATED SOFT DRINKS

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DAIRY

Australia Murray Goulburn Co-operative Devondale Fast Start Chocolate Liquid Breakfast

Repackaged. Made with real milk and not soy. Contains less than 2% added sugar, is high in protein and fi bre and 99% fat free with the goodness of three grains. Low glycemic product contains 11 essential vitamins and minerals, is high in calcium and vitamin D, and is free from artifi cial colours and fl avours and preservatives. Its protein and fi ber levels are equal to a tub of yogurt and a banana, therefore providing a fast start.

Australia Babushka Babushka Almond & Coconut Milk Yoghurt

Snack made with the milk of Australian grown almonds, wholegrain rice and coconut milk. Rich in prebiotics and probiotics, fi bre, protein, calcium and vitamin C, and is sweetened with Stevia.

Colombia Danone Alquería Danone Activia Fresh Orange-Pineapple and Mango Flavor Semi-Skimmed Yogurt

Contains ActiRegularis, a natural probiotic with bifi dobacterium that helps to improve the intestinal fl ora and the digestive system.

Denmark Arla Foods Matilde Cocoa Flavoured Skimmed Sport’s Milk

Made with UTZ certifi ed cocoa and Danish skimmed milk, and contains 40% more protein and 0.6% fat. Protein is said to build muscle mass. The product also contains calcium and vitamin D.

Ireland Marks & Spencer Marks & Spencer ActiveHealth Prune Yogurt with Granola

Fat-free yogurt with a prune conserve, is served with crunchy multi-seed granola, contains added vitamin D essential for building healthy bones, and oat beta glucan to help lower cholesterol. Furthermore, this yogurt is a source of protein which is essential for growth, is suitable for vegetarians, and has been made with British milk..

Italy Bio Slym Buon Per Te Calcium Enriched Rice Vegetable Drink

Repackaged with an updated design. This calcium-enriched vegetable drink is claimed to be suitable for a light diet, easy to digest, and low in fat. Free from lactose, milk proteins, cholesterol, and added sugar, represents an excellent alternative to milk. Made using guaranteed controlled and selected Italian rice grains. gluten-free.

Japan Danone Danone Bio Fat-Free Satsuma & Yuzu Yogurt

Features BE80 bifi dus which is said to reach the stomach alive.

Japan Yakult Honsha Yakult Miluge Lactic Drink 200 Repackaged. The FOSHU-certifi ed product contains galacto-oligosaccharide, which is designed to increase the good bacteria in the stomach and facilitate the cycle.

Japan Ito En Ito En Jujitsu Yasai To Nomu Yogurt Vegetable Yogurt Drink

Features Enterococcus faecalis, eight vegetables and two fruits. It contains dietary fi bre equivalent to one whole lettuce. It has 1% fruit juice content and retails in a recyclable 240ml pack.

Netherlands Arla Foods Melkunie Breaker Vanilla Flavoured High Protein Yogurt Drink

Features only 0.9% fat, 168kcal per serving, and retails in a 200g pack. Also available: Mango Passionfruit High Protein Yogurt, rich in protein.

Peru Gloria Yogurt Gloria Calcifem Peach Flavored Skimmed Yogurt Drink

Source of calcium providing 50% of the RDI, the same as a glass of milk, and vitamin D, both of which help to support strong bones. Lactose-free yogurt has been sweetened with stevia, features 0% fat, and has been specifi cally designed for the unique nutritional needs of women. The vitamin D contained in this drink helps to facilitate the absorption of calcium, and also features zinc, that helps to maintain bones health, whilst the calcium helps to reduce the risk of osteoporosis. Also contains vitamin E and folic acid, probiotics, and retails in a 1kg bottle.

Sweden Lindahls Skånemejerier Lindahls Peach and Passionfruit Flavoured Quark

Suitable as a natural recovery aid after a workout. It contains 0.2% fat, is rich in protein and is free from added sugar.

UK Danone Danone Danio Minis Strawberry Strained Yogurt

High in protein, suitable for vegetarians and contains 0% fat and no preservatives, artifi cial fl avours or sweeteners.

Ukraine Laktalis Lactel Loko Moko Strawberry Flavoured Soft Cheese Dessert

Contains 4% fat and is enriched with calcium, vitamin D3 and omega 3, which are benefi cial for memory, concentration, perception of information and to reduce fatigue during mental and physical stress.

DESSERTS & ICE CREAM

Brazil Açaí do Amapá Agro-industrial Sambazon Organic Açaí with Guarana Mixed Drink

Organic certifi ed, not fermented, and free of gluten, trans fats and alcohol. Features the following benefi ts: more antioxidants than red wine; slows aging; fi ghts free radicals; is a rich source of fi ber, omega 3 and omega 9; has essential amino acids and vital minerals for muscle regeneration; is a source of protein and energy that help with daily activities; and promotes cardiovascular and digestive health.

FRUIT & VEGETABLES

Finland Nofu Verso Broad Bean Groats Blend Enriched with pea protein and contains 47% protein and 11% fi bre. Ideal for cooking, baking, breakfast cereals and smoothies.

HOT BEVERAGES

Norway Paromi Tea Paromi Tea Sleep with Me Herbal Infusion

Made of gentle calming herbs that have been brewed for centuries. USDA organic certifi ed product has been hand-picked, is free from caffeine, and contains chamomile, linden leaf, and lemon balm to reduce stress and help support relaxation and sleep.

Singapore GlaxoSmithKline GSK Horlicks Nutritious Chocolate Flavoured Malt Drink

Formulated with 23 carefully selected vital nutrients including calcium for strong bones, vitamin D for calcium absorption, iron for red blood cell formation, protein to help build and repair muscle tissue, vitamin A, vitamin B1, vitamin B2, niacin, vitamin B6, folic acid, B12, biotin, pantothenic acid, vitamin C, vitamin E, and iodine to provide nourishment to support growth on a daily basis.

Spain Compañia de las Indias Compañía de las Indias Soothing Infusion

Said to provide relaxation due to its natural herbs mix, specially reinforced with Passionfl ower and Valerian root.

UK Neal’s Yard Remedies Neal’s Yard Remedies Organic Calming Tea

This naturally caffeine-free herbal tea is claimed to help balance the emotions, and contains no GM ingredients.

JUICE DRINKS

Austria Multiple Marketing Sirco Apple & Blueberry Multi Fruit Juice

A natural multifruit juice from concentrate with the addition of active natural fruitfl ow extract, WSTC 1, a water-soluble tomato concentrate. It keeps the platelets smooth and soft and therefore supports a healthy blood fl ow. Free from added sugar and fat and works within three hours. One 250ml serving provides one of the recommended fi ve daily units of fruit and vegetables.

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Brazil Natural One Natural One Detox Mixed Drink Contains passionfruit, cabbage, mint, spinach and ginger. Low-calorie drink contains only 25kcal per 200ml and is free from added sugars, sweeteners and gluten.

Czech Republic Anbu Mahesh Gnanasigamani Tender Coco Coconut Water A pure vegetable product that is said to protect the heart when consumed regularly.

India Dabur Real Fruit Power Pomegranate Beverage

Newly designed pack. This superfruit drink is rich in antioxidants, features 35% fruit content and is free from added colours and preservatives. It contains essential nutrients which are said to help protect body and provides 7% RDI energy for children aged from seven to nine years old per 200ml glass.

Ireland Tropicana Tropicana Pure Premium Exotic Creations Lemon & Lime Juice

An apple, orange, lemon and lime juice made with the juice of 100% pure squeezed fruit picked at the peak of ripeness. Comprises tangy lemon and lime for a refreshing citrusy taste and one 200ml glass gives one of the fi ve a day and has enough vitamin C to help support the normal function of the immune system and help reduce feelings of tiredness.

Poland Ustronianka Ustronianka Figura Plus+ Apricot & Tangerine Flavoured Drink with L-Carnitine and Zinc

This unique fl avoured water has been enriched with L-carnitine and zinc, features 30% fewer calories than similar available drinks, and is free from artifi cial preservatives. Can help support metabolism.

Spain AMC Juices Beauty & Go Vitality Energizing Drink with Macro-Antioxidants

Said to be benefi cial to the skin, is made with mandarin, gingko biloba, and guarana, is rich in vitamins C, B6, B12, and panthotenic acid, which help to reduce tiredness and fatigue. Free from added sugars, low in calories, contains fruit extracts. Also available: Anti-Ageing Drink with Macro-Antioxidants.

UK Innocent Innocent Super Smoothie Defence Smoothie

A blend of crushed fruit, pure juices, vegetables and botanicals, such as mango, pumpkin, echinacea and fl ax seeds, fortifi ed with vitamin and minerals like vitamins C, D and zinc to help blood cells let the immune system work.

MEALS & MEAL CENTERS

UK Arranway Now Slim Diet Noodles Super low in calories, free from fat, gluten, sugar and carbohydrate and high in fi bre. Helps the consumer feel fuller without guilt and contains less than six calories per 100g portion.

OTHER BEVERAGES

France Biogroupe Karma Kombucha Green Tea Carbonated Soft Drink

100% organic and helps quench thirst, detoxify and stimulate the body. Rich in enzymes and probiotics and has a low sugar content. Made with fair traded ingredients, features just 20 calories per 200ml glass.

Norway Axellus Nutrilett Protein Shape Chocolate Flavoured Shake

Helps shaping and toning the body, is high in protein to help maintain muscle mass and is low in sugar.

South Korea Lotte Chilsung Beverage Lotte Dr&Doctor Kids Balance Drink with Red Ginseng and Vitamin D

This zero-calorie product is formulated with 5mg red ginseng and 5μg vitamin D to help in absorbing and using calcium and phosphorus, as well as forming and maintaining bones.

Spain Arkopharma Arkopharma 4321 En Linea Apple and Kiwi Flavoured Detoxifying Drink for Slimming

Reformulated with more plants and is now more concentrated. Specially designed to burn fat, drain, eliminate and detoxify the body to help stay in shape and control weight. Contains ten rigorously selected plants to help control weight.

UK The Protein Drinks Ufi t Breakfast Smooth Strawberry Flavour Nutritious Breakfast Shake

On-the-go product is rich in calcium, high in protein and contains added fi bre, calcium, vitamins and minerals. Provides longer lasting energy from super wholegrain and 15g of protein to keep hunger at bay.

UK The Protein Drinks GoHealth Balance Chocolate Flavour Daily Immune Defence Shake

Provides a blend of muscle protecting protein and 25 essential vitamins and minerals to keep the immune system in health. High in protein, rich in calcium.

Snacks

Australia Tasti Products Tasti Salted Caramel Protein Bar with Dark Choc Base

Contains 10g of protein per bar. Satisfying chewy nut bar is packed with extra protein to help fuel up at work or play. The natural product is free from artifi cial colours and fl avours.

Australia Food For Health Food For Health Antioxidant Super Reds

A healthy mix of goji berries, cranberries, dried strawberries, sunfl ower seeds, quinoa, chia seeds and linseeds. Free of dairy, gluten, GMO, and added sugar, is high in fi bre and antioxidants.

France Nutrition & Santé Soyjoy Soya & Blueberry Bars Repackaged to feature a new format. This microwaveable product features a cake-like texture, contains 37% fruits and 25% soja and is rich in fi bres and a source of vegetable proteins. Free from colourings and preservatives.

India Paramount Farms International Wonderful Chatpata Masala Pistachios These heart-healthy pistachios are said to represent a smart snacking choice, and are naturally free from both cholesterol and trans fats. High in fi bre, antioxidants, and protein, are one of the lowest calorie nuts. These California pistachios have been coated in a chatpata masala fl avour, a delicious blend of Indian spices that impart a tangy taste. Vegetarian product is said help facilitate a stronger heart.

Spain Régime Dukan Dukan Pretzel Style Oat Bran Biscuits Contain 91% oat bran, is free of white fl our, rich in fi ber, and low in salt.

SPORTS & ENERGY DRINKS

Finland Evoke Evoke Natural Energy Fruit Juice with Vitamins, Minerals and Protein

A natural energy drink abundant in protein, vitamins and minerals and containing no added sugar, caffeine, taurine or guarana. It has a 60% fruit juice content and is sweetened with steviol.

Japan Morinaga Weider in Yogurt Flavor Protein Jelly Drink

Formulated with protein and whey peptide 5000mg. This jelly drink is specially developed to provide essential nutrients that athletes require, it supplies proteins as peptide for enhanced absorption, supporting workouts to improved the body tone.

Sweden Globalia BG Killer Body Fat Energy Drink Claims to make one feel better and provides refreshing support for an active and healthy lifestyle. Features an exotic taste of pineapple and contains antioxidants and natural ingredients from fruits, herbs, berries and plants. Made with mineral water sourced from the Austrian Alps and is vitamin enriched. This pasteurised energy drink contains no preservatives or added sugar.

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S N A C K I N G C A S E S T U D Y

Failures in Healthy Foods and BeveragesThe 12 reasons why brands fail and the 10 rules for success3rd Edition published June 2014

“I like to study failure.”

The smartest people know that studying the failures of others teaches us how to succeed.

Examining the most common mistakes that companies make enables you to avoid them – and increases your chances of success.

This 120 page report analyses 22 detailed case studies of brands that failed or “stumbled”, and sets out clearly:• The 12 most common causes of failure • The 10 Golden Rules for Success

This is the 3rd edition of our massively popular and unique Failures report. A fully updated analysis, featuring 10 completely new case studies, it incorporates the latest thinking about what causes failure and what cultivates success.

Ordering is easy…visit www.new-nutrition.com

Failures in Functional Foods & Beverages

33 www.new-nutrition.com

CHART 3: NEW BRANDS VS BRAND EXTENSIONSTimes have changed and new brands are now proving more successful than brand extensions - and less risky.

$

m

0

5

10

15

20

25

30

35

40

45

New brands

New brands New

brandsNew

brandsNew

brands New brands

Brands extensions

Brands extensions

Brands extensions

Brands extensions

Brands extensions

Brands extensions

$21

$27

n/a

$42.4

$35.4 $36.9

$22$26

n/a

$26.4

$21.6

$27.9

2007 2008 2009 2010 2011 2012

Source: SymphonyIRI

and it is easier.”However, “the easier road comes at a price”. The price is that brand extensions perform less well than new brands. In fact, Symphony points out, they have long performed little better than new brands.

As Chart 3 shows, a brand extension earned an average $27.7 million first year sales in the period 2002-2012.New brands, as the chart shows, are performing better.It seems counter-intuitive – that against the backdrop of a weak economy a new brand performs better than the extension of a trusted brand, but these are the facts. Sometimes bringing new health benefits to established brands can revive old brands – provided that the benefit is a logical fit to the brand, and provided that you don’t attempt to extend the brand too far, either in benefit or product format.

Brands can be stretched in terms of the product format that is offered under the brand – provided that the format is logical in terms of the benefit being offered. They cannot be stretched to encompass new benefits without major risk of failure. A focus on a clear and consistent benefit platform is, as the case studies show, a key success factor.

Rule 9: Create new categories and segments, don’t be a me-tooWhether your company is large or small, it will be faced with the challenge of how to use nutritional benefits to carve out a space in what is almost always a well-served and usually fiercely-guarded category.An article in the Harvard Business Review of May 1, 2007, titled “Strategies to Crack Well-Guarded Markets”, provides some useful insights for food and beverage companies faced with this challenge. The authors, David J. Bryce and Jeffrey H. Dyer, studied the strategies – and results – of hundreds of companies that had tried to break into established markets. One of their salient conclusions will be familiar to anyone who has ever had any military training or studied military history: you should never make a frontal assault. Successful entrants, say Bryce and Dyer, “don’t engage in frontal attacks, because market leaders … will stop them in their tracks with price wars, ad blitzes ... and other retaliatory tactics”. One of the examples they give is a comparison of the performance of Red Bull with Virgin Cola. The latter staged a head-on assault on the US cola market – a stronghold of Coke and Pepsi –

EW BRANDS V

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Failures in Functional Foods & Beverages

24 www.new-nutrition.com

HEALTHY SNACKS BY MAIL

UK-based snack company Graze, based in west London, uses Britain’s mail service to send personalised boxes of healthy snacks to its customers. And in the US, where the company recently launched, USPS takes the place of the Royal Mail.

Graze began trading in September 2008; it had taken two years, and £10 million ($16 million/€12 million) in start-up capital, to get to that point. Since then it has enjoyed growth rates of more than 100%, and turnover for the year to February 2013 was £40 million ($67 million/€48 million). In November 2012 The Carlyle Group bought a majority stake in the business for around £50 million ($83 million/€60 million). The online mail-order subscription service boasts a portfolio of nearly five million different products. Boxes can be mailed to the customer’s home or place of work and cost £3.89 ($6.46/€4.66), including delivery. In the US each box costs $6.00 (€4.33) and is delivered by the US Postal Service. Graze offers more than 100 individual snacks, which can be used to generate 4.9 million unique snack box combinations. This is possible by virtue of its highly innovative – and hi-tech – service, which provides tailor-made snack box combinations designed to match the personal tastes of each one of its customers, whatever their preferences. Once they’ve signed up, Graze starts regularly posting them one of its snack boxes, each of which contains four different snacks.

Graze spends heavily on advertising, mainly promoting its long-running offer to receive the first box free or half-price. Said Jones in 2012: “When we launched, it was a brand new concept and no one had ever seen anything like it before. People needed to see the box, and experience the box, to understand how it would fit in with their lives…So our mantra is: try before you buy.”

Newly launched in the US, Graze is up against General Mill’s new – and remarkably similar – direct-to-consumer snack concept called nibblr. Introduced in November 2013, the nibblr snack-by-subscription service offers 59 different varieties of snacks that are portion-controlled and delivered four-per-box to your office or home through the US Postal Service at a price of $5.99 (€4.32) per box. Orders are placed online at http://www.nibblrbox.com/.

As with Graze, customers can rate the snacks and the system will adapt, so they get more of what they like and less of what they don’t.

Failures in Functional Foods & Beverages

12 www.new-nutrition.com

Key Reasons for Failure

FAILED

1RELIED TOO

MUCH ON HEALTH

BENEFIT FAILED2

OVERESTIMATEDMARKET

FAILED

3TARGETED

MASS MARKET TOO SOON

FAILED4

BRAND/ BENEFIT/FORMAT

MISMATCH

FAILED6

TOO MANYBENEFITS

FAILED7

RELIED ON INGREDIENT

TO SELL

FAILED

10RELIED ON

“HEALTH” TO

REVIVE BRANDFAIL

ED11TASTE/TEXTUREDISAPPOINTED

CONSUMERS

FAILED12

RELIED ON BRAND

EXTENSIONS

The size of the circle reflects the

number of case studies in which

that failure factor plays a role

FAILED9

FAILED TO INVEST

IN MARKETING

Most important failure factor

Least important failure factor

FAILED5

DIDN’T MANAGE

SHAREHOLDER

EXPECTATIONS

FAILED8

NO POINT OFDIFFERENCE

ACKS BY MA

ack company Gthy snacks to ce of the Roya

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he year to Febrbought a maj

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g like it before. th their lives…

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, customers cof what they d

Failures in Functional Foods & Beverages

14 www.new-nutrition.com

KNOW YOUR TARGET

INGREDIENT, BENEFIT & FORMAT

MUST WORK TOGETHER

START WITH NICHES

FEEL THE BENEFIT

ALTERNATIVE CHANNELS

DON’T BE A ME-TOO

FOCUS YOUR MESSAGE

NEW BRAND NOT AN

EXTENSION

FOCUS ON BENEFIT (NOT

INGREDIENT)

REALISTIC EXPECTATIONS

1 6

2 7

3 8

4 9

5 10

10 Golden Rules for Success

NEW

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12 Key Trends in Food, Nutrition & Health 2014

Ordering is easy…see inside back cover or visit www.new-nutrition.com

PRICE FOR EITHER PDF OR PPT: €300 / $395 / £255 / A$420 / NZ$530 / ¥33,000 / C$395PRICE FOR PDF & PPT TOGETHER: €480 / $630 / £400 / A$670 / NZ$840 / ¥52,000 / C$630

95

BUY THE PDF &

PPT TOGETHER & GET

A 20% DISCOUNT

November / December 2013

PPT – 340 slides with illustrations, charts and tables

PDF – 102 pages with illustrations, charts and tables

Published every year since 1996, our 12 Key Trends is the only trends analysis that enables you to differentiate enduring trends from short-term fads and understand how to use them successfully in your strategy.

That’s because our methodology, shown in the report in our unique Trend Diamond, ensures that we take into account every single factor that drive a trend’s evolution – from ingredients and science through to consumer needs and sales figures.

All year long we monitor a mass of data. We analyse this to work out what’s truly important, and what’s not. That’s why companies around the world use our annual Key Trends to formulate their strategy and innovation plans.

61

10 Key Trends 2014

Slow energy

61

40

CHART 11: ENERGY DRINKS ARE PREMIUM-PRICED BUT DAILY DOSE ENERGY SHOTS ARE SUPER-PREMIUM

US energy drink prices compared with one-another and with a “standard” mass-market non-energy product such as Coca-Cola Classic. As with so many successful functional markets, energy drinks are premium and super-premium priced and this is no barrier to success.

Price per 32 fl.oz. (approx

1 litre)

0CocaCola Classic

1 litre $2.19

$2.195

10

15

20

25

30

35

40

Red BullEnergy Drink

8.3 fl.oz. $2.09

$8.06

Nestle Jamba Juice

$8.80 per litre

$8.80

Campbells V8 V-Fusion

Energy $39 per litre

Living Essentials 5-Hour

Energy Shot12 pack $33

2 fl.oz. bottles

Enerji Green Energy Shots

$39.80 per litre

I Am Happy at

$53 per litre

$39.00 $41.25$39.80

$53

45

50

55

BOX 2: UK: A SHIFT TO ENERGY DRINK LOWER PRICES?The UK energy drink market grew by 20.7% in value and 21.2% volume between September 2010 and September 2013, according to market research fi rm Kantor Worldwide. Mintel forecasts that the value of the UK energy drinks market, which is the largest in Europe and is currently worth €1.42 billion ($1.94 billion), could rise by 63% by 2017.Red Bull’s market share is 35% and the second biggest brand with 29% is Lucozade, recently acquired by Suntory.

Kantor believes that UK consumers are among the most price-aware in Europe and are looking for cheaper ways to continue consuming energy drinks.

Figures from market analysis fi rm Symphony IRI for the year ending February 2012 show that while Red Bull was the second-biggest-selling energy drink brand in the UK it registered only 7.8% annual sales growth compared to a 13.9% increase in sales for cheaper, own label energy drinks. With convenience store group Booker’s Euro Shopper able to retail a 250ml can at just €0.41($0.56) compared to the €1.38 ($1.88) cost of Red Bull in the same size can there are clearly cheaper options for UK consumers.

10 Key Trends 2014

Energy

40

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OWER P

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10 Key Trends 2014 Naturally functional

CHART 3: THE NATURALLY FUNCTIONAL TREND DIAMOND

12

END DIAMONR

10

10 Key Trends 2014

CHART 2: THE NUTRITIONAL PRODUCT LIFE CYCLE

The chart below was developed to aid understanding of brand positioning and the evolution of markets. Many products start out

on the left, targeting consumers who have a need for a product that has effective technology. They sell in low volumes at premium

prices but over time their appeal increases and they move down the price curve to the right, eventually becoming mass-market

products. Few functional foods have yet made this transition – many companies deliberately target the lifestyle area as a way of

creating a defensible niche and maintaining premium prices. Below we show where some of the Key Trends and the Micro-Trends

– and the brands that are working with these trends – currently sit on the life-cycle. The stages of the life cycle are:

Technology consumers – These are the early adopters, people who have a near-medical need for a product. They need the

technology of the functional food to address their health condition. They see products in a medicalised context and, as with drugs,

they will pay a substantial premium for something that addresses their condition.

Lifestyle consumers – They are interested in maintaining their wellness, not fighting illness. They will adopt new brands and will pay

a premium for a product but only if it supports their lifestyle.

Mass-market consumers – They are motivated when a benefit becomes a standard and is available in products with low or no

premiums, ideally from well-known and trusted brands.

TECHNOLOGY

CONSUMERS

LIFESTYLECONSUMERS

MASS-MARKET

CONSUMERS

Solid line = sales volumes

Broken line = unit selling price

6% - 8% of consumers 20% - 25% of consumers 67% - 74% of consumers

SALES

TIME

Kids

Seniors

Gluten free

Slow release energy

Snacking

WeightWellness

Energy

Protein

Dairy 2.0

Naturally functional

10

10 Key Trends 2014

CHART 2: THE NUTRITIONAL PRODUCT LIFE CYCLE

The chart below was developed to aid understanding of brand positioning and the evolution of markets

on the left, targeting consumers who have a need for a product that has effective technology. They sell

prices but over time their appeal increases and they move down the price curve to the right, eventually

products. Few functional foods have yet made this transition – many companies deliberately target the

creating a defensible niche and maintaining premium prices. Below we show where some of the Key

– and the brands that are working with these trends – currently sit on the life-cycle. The stages of the

Technology consumers – These are the early adopters, people who have a near-medical need for a pro

technology of the functional food to address their health condition. They see products in a medicalise

they will pay a substantial premium for something that addresses their condition.

Lifestyle consumers – They are intere– sted in maintaining their wellness, not fighting illness. They will a

a premium for a product but only if it supports their lifestyle.

Mass-market consumers – They are motivated when a benefit becomes a standard and is available in

premiums, ideally from well-known and trusted brands.

TECHNOLOGY

CONSUMERS

LIFESTYLECONSUMERS

MASS-MARKET

CONSUMERS

6% - 8% of consumers 20% - 25% of consumers 67%

SALES

TIME

Kids

Seniors

Gluten free

Slow re

Energ

Naturally functio

12 Key Trends in

Food, Nutrition &

Health 2014

by Julian Mellentin

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E D I T O R I A L

“I like to study failure,” said the world’s third-richest man, Warren Buff et, speaking at a Coca-Cola shareholders’ conference. And at New Nutrition Business, so do we. There is often much more to be learnt from failures (other peoples - and your own failures) than from successes.

One of the things we do very well – better than anyone else - is to analyse the many failures in healthy foods and beverages. One of the reasons we do it very well is that since 2001 we have been creating detailed case studies that look at every aspect of a failed product – or food ingredient - including:

• Pricing• Marketing strategy• Brand messages• Brand strength• Health benefi ts• Taste and texture• Ingredients• Consumer beliefs• Competitive situation• …..and many other aspects

This has made it possible to identify the most common causes of failure – and conversely understanding failures has allowed us to also create a list of “golden rules for success” (for more information see Failures in Functional Foods & Beverages 2014).

These “golden rules” are not a rigid prescription that is right in every circumstance, but they are a useful checklist and it’s our observation that the most successful brands tend to score highly when compared to the golden rules while unsuccessful ones usually break several of them.

WE DON’T WANT YOU TO “EMBRACE

FAILURE” OR “FAIL FAST, FAIL OFTEN”

There’s scarcely a business book or website that doesn’t say that successful entrepreneurs are those that have failed at least once before creating successful enterprises. And it isn’t diffi cult to fi nd business gurus advising us all with phrases like

Did you know you can now read New Nutrition Business as a powerpoint presentation?

To find out more e-mail: [email protected]

1/3 fewer calories, 1/2 the fat,same great taste

Discover our butternut squash soup at

DaisyBrand.com/butternut

© 2

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Kids Nutrition Report: Spring 2014

Failures in Functional Foods and Beverages

Kids Nutrition Report: Winter 2014

Kids Nutrition Report: Summer 2013

12 Key Trends in food, nutrition and health 2014

Lactose-free dairy: Opportunities, strategies and key case studies

Kids’ dairy and snacking: 10 case studies in marketing and innovation

Coconut water 2012

Trends and strategies in healthy snacking 15 key case studies

Smart start-up strategy in healthy food and beverage

The food & health marketing Handbook

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