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N EW N UTRITION BUSINESS VOLUME 13 NUMBER 6 www.new–nutrition.com APRIL 2008 ISSN 1464-3308 Next Foods unveils ‘Active Daily Nutrition’ by Julian Mellentin Only a handful of food industry executives has proven so massively successful in Demos in the Silk soy milk business and can lay claim to having created a totally Sweden (see the October 2007 New who are deploying a business model that new category: the members of this elite club Nutrition Business for full coverage). has proven successful for over 20 years. include Dietrich Mateschitz, the founder • It creates a new category within what of Red Bull; the Danone executives behind is the fastest-developing market for “It’s the same team that built Silk,” Demos mega-brands such as Actimel and Activia; probiotic foods in the world. explained to NNB. This fact augurs well for and Steve Demos, the man who invented the • It is masterminded by an entrepreneur GoodBelly’s future: Silk is the brand that soy milk category in America. who has successfully created a new created the now billion-dollar US soy milk Even fewer people can lay claim to having and innovative category and who has market and is now the world’s biggest organic created two categories. But with the launch demonstrated both strategic vision food brand. of America’s first probiotic fruit juice, and execution skills at a level that is “Many of my original VPs left after we branded Verb: GoodBelly, Demos is aiming extremely rare in the food and beverage sold that business. The Next Foods team to make an even bigger impact on the US industry. are the people who were their direct reports food industry. • The company is led by a team of at Silk. The original team are back as the The vehicle for this ambition is Next executives who have already shown their board members of Next Foods and they’re Foods, Demos’ newest venture which is based worth in the years they served under mentoring the people who are now the VPs. in Boulder, Colorado, a small city which It’s an experienced team and with has for 30 years been a hub of GoodBelly we can apply quickly health innovation in the US. the lessons that it took us 20 Next Foods’ launch of years to learn with Silk and get GoodBelly isn’t “just another the brand into the mainstream product launch”. It is likely to be in a lot less time than it took us the single-biggest development in with Silk.” functional foods this year in the US, challenging many people’s INSIDE GOODBELLY business models. The brand’s progress will be watched closely GoodBelly is a 30% juice in Europe and elsewhere for a fruit drink based on number of reasons: two probiotic cultures, L. plantarum 299v and • GoodBelly represents Bifidobacterium lactis. Each the first attempt to 80ml bottle delivers a transfer to the North guaranteed 20 billion American market the active cultures of the two ProViva probiotic bacteria. The following claims juice concept which Continued on page 4 ‘Disruptive Lifeway Foods Reinventing the innovation’ is the spreads the essence of the driver of functional kefir gospel apple food success Pages 8-10 Pages 13-14 Pages 21-22 THE JOURNAL FOR HEALTHY EATING, FUNCTIONAL FOODS & NUTRACEUTICALS CONTENTS & CONTACTS 2 APRIL 2008 LEAD STORY 15-16 BEVERAGES: Honest Tea equips itself NEW NUTRITION ON THE NET for serious brand-building 1,4,5,6 Next Foods unveils ‘Active Daily 31 Get the most from your subscription Nutrition’ 17-18 RETAILING: Mood Food finds an online home NEW CASE STUDIES NEWS ANALYSIS 19-20 COMMERCIALISATION: Barry 32 7 Outstanding Companies in 3 Raisio launches oat-based snack drink Callebaut opens up functional Functional & Health-Enhancing Foods 7 EFSA takes wind out of Southampton chocolate frontier 33 10 Factors for Success in Energy Drinks study’s sails 21-22 COMMERCIALSATION: Reinventing – Europe and the U.S. the essence of the apple 34 New Nutrition Business Publications EDITORIAL 23-25 INGREDIENT: Omega-3 food & 35 Order Form 8-10 ‘Disruptive innovation’ is the driver of beverage launches surge in Norway functional food success HOW TO SUBSCRIBE NEW PRODUCTS 36 Subscription Order Form CASE STUDIES 26-29 Functional & healthy-eating new 11-12 DAIRY: Arla Foods shakes up UK milk product launches market IMPORTANT NOTICE 13-14 DAIRY: Lifeway Foods spreads the kefir gospel 30 A polite reminder to our subscribers COMPANIES IN THIS ISSUE Albertsons ........................... 6 Honest Tea ..................15,16 Next Foods ................ 1,4,5,8 Stonyfield Farm ...........15,16 Arla Foods .............. 11,12,24 Information Resources Inc. 13 PepsiCo .............................. 9 Tesco ................................ 12 Barry Callebaut ...........19,20 Lifeway Foods ..............13,14 Pharmalogica .............. 24,25 TINE ...................... 23,24,25 Coca-Cola Co. ......... 9,15,16 Mills DA .................23,24,25 Probi AB ..........................4,9 Waitrose............................ 22 Coop ................................. 24 Mintel ............................... 23 Raisio ................................. 3 Whole Foods Market ..........6 Coressence .................. 21,22 MoodFood ................... 17,18 RDA Organic ...................22 Wild Oats ........................... 6 Danone 1,5,8,10,13,14,15,16 Morinaga .......................... 20 Red Bull ..................... 1,9,10 Yoplait USA ....................... 8 Emmi ................................ 10 Nairn’s ......................... 17,18 Skåne Dairy ............... 5,9,24 SUBSCRIPTION DETAILS STAFF U.S. OFFICE All enquiries: Jill Piotrowski Editor Jill Piotrowski, New Nutrition Business, PO Box 161047, San Diego, CA 92176-1047, USA Julian Mellentin PO Box 161047, San Diego, CA 92176-1047, USA Phone: (+1) 619 795 7923 [email protected] Tel: +(1) 619 795-7923 Fax: +(1) 619 923-3038 [email protected] Fax: (+1) 619 923 3038 Managing Editor, Journals [email protected] Paul Vincent ASIA-PACIFIC OFFICE Payment by Mastercard and Visa accepted. 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NEW NUTRITION BUSINESS www.new-nutrition.com NEWS ANALYSIS APRIL 2008 3 Raisio launches oat- based snack drink by Kati Leskinen The Finnish feed, food and ingredients “The new product is, first the usual media. In addition giant Raisio is moving into new territory and foremost, a tasty to TV and print campaigns, with its food division’s latest launch, Elovena and convenient snack. the company used an Välipalajuoma (Oat-Berry Snack Drink). An However, the roots of online promotion which extension of the venerable Elovena oat-based Elovena are in oatmeal, attracted 120,000 visitors cereal brand, the new beverage is a milk-free and the brand name to the brand’s website blend of oats, raspberries and blueberries. carries a strong health (www.Elovena.fi). Raisio Each 250ml smoothie contains 11g or 44% heritage.” has also stepped up its of the RDI for fibre. But Elovena’s history usual amount of product While oats have a long history in the diet as the country’s best- sampling and in-store of Finns, oatmeal can hardly be described selling porridge brand promotions to encourage as the ideal snack – even in instant versions, creates challenges trial. it lacks convenience and has lost most of its too, especially as most According to Siltala, the attraction among young consumers. Eager consumers do not Elovena Välipalajuoma to breathe life into a stale commodity, Raisio consider the idea of brand extension is set about developing an oat-based “drinkable drinkable oatmeal as strategically important fibre-rich snack” to move oats beyond the particularly attractive. to Raisio; the company breakfast cereal category into the more Raisio has anticipated believes it has great lucrative on-the-go category. this reaction by potential. “New flavours Raisio is marketing the drink with a advertising Elovena and product formats are tagline that translates into English as: The new Välipalajuoma with a already in the pipeline,” drinkable snack full of pure power. Significantly, slogan that translates as she divulged. the product is positioned on a snacking Smooth as Silk – thereby Raisio’s new oat- platform, rather than a functional one.