NEW YORK — In the early 1800s, pharmacists took carbonated water and added fruit extracts, herbs and medicinal ingredients for flavor as well as health benefits. Bib-Label Lithiated Lemon-Lime Sodas (re-named 7 Up), for example, included lithium; Coca-Cola had cocaine.
Beverage makers are still looking to the same formula (sans the illegal drugs), one that gives users something more than just refreshment. More than a dozen drinks promising weight loss, cell-damage-reducing antioxidants and natural energy are scheduled to hit shelves in 2007, with many more in the pipeline.
Consumers’ dollars are driving this trend: wellness and functional beverage sales grew from $41 billion in 1999 to $55 billion in 2005, per Beverage Marketing, New York. This number is expected to keep climbing while demand for sugary sodas continues to decline.
“The healthy beverage trend is going to accelerate wildly,” said John Sicher, editor at Beverage Digest, Bedford Hills, N.Y. Being No. 1 in a fledgling category, like Red Bull was to energy drinks, is the goal. “[Coke and Pepsi] know they need to be ahead of the curve. They are taking a lot more risks.”
Americans drank 19 billion gallons of milk, water, sports and energy drinks in 2005. Next year, new choices will abound as Pepsi alone has at least 12 entrants on the way for health-conscious consumers, including Pepsi Natural and Sierra Mist Essence (both with natural sugars), Tava (with chromium, which is tied to weight loss) and Tropicana Essentials with Omega-3 fatty acids.
“We’re in the business of giving consumers what they’re looking for,” said Chris Kempczinski, vp-noncarbonated beverages at Pepsi-Cola North America, Purchase, N.Y.
Coming from Coca-Cola: Enviga, a sparkling green tea that burns calories, and H2Odwalla enhanced water. BusinessWeek also described “nutraceutical versions of Diet Coke” and “new juices designed to help women with skincare, weight management and detoxification.”
Glacéau Vitaminwater Triple X and Snapple Out of the Blueberry, both loaded with anti-oxidants, are also due.
Still, rolling out new products and actually sticking with them are two very different things, said Gerry Khermouch, editor at Beverage Business Insights, West Nyack, N.Y. “[Coke and Pepsi] typically can’t refrain from hitting the gas and trying to push the brand beyond its natural state of development. So unless one of those brands proves to be an instant and big hit, their chances of meaningful success are not that great.”
Of course, the cola giants can just buy somewhat established brands. Pepsi last month paid a reported $75 million for Izze Beverage, Boulder, Colo., maker of all-natural, sparkling fruit juices. Izze’s “magic formula” is pretty much what pharmacists were whipping up 200 years ago—carbonated water with fruit juice. “It’s come full circle,” said Kempczinski.
Source: brandweek.com
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