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Soft Drinks Internationa l – March/April 2016 ConTEnTS 1 news Europe 4 Africa 8 Middle East 10 Asia Pacific 13 The leading English language magazine published in Europe, devoted exclusively to the manufacture, distribution and marketing of soft drinks, fruit juices and bottled water. Americas 14 Ingredients 18 features Juices & Juice Drinks 22 Waters & Water Plus Drinks 23 Thailand 30 Thailand’s soft drinks industry is prepar - Carbonates 24 ing for the introduction of a new excise tax regime later this year. Sports & Energy 25 David Hayes met with the Thai Functionals 26 Beverage Association to discuss the impact of this consequence of the recently RTD Teas & Coffees 27 launched ASEAN Free Trade Zone. Dairy & Alternatives 28 Particle Processing 36 With an increasingly fine line between Processing 38 food and drink, beverages with pieces, fibres or small particles are growing in Packaging 40 popularity across the world. Environment 43 Helena Arph explores the challenges associated with particle processing in bev - People 44 erages when perfecting flavour and pro - viding textures that attract consumers. Events 45 Exotic Fruits And Juices – Spotlight Brazil 32 regulars New research shows that despite the European Union's (EU) simplification of Comment 2 the novel foods directive, Brazil's exotic fruit producers will need strong partner - BSDA 3 ships with soft drink manufacturers if new, niche fruit juices from Amazonia are Buyers’ Guide 46 to be available in the EU and elsewhere. Classified 48 Dr John Wilkinson visits São Paulo and one of the largest markets of exotic fruits in the world. Front Cover: ©marphotography (from bigstockphoto.com) www.softdrinksinternational.com 2 CoMMEnT Soft Drinks Internationa l – March/April 2016 Published by ASAP Publishing Limited Editor Philip Tappenden US boost for RTD News Editor Maureen Byrne Correspondents: teas likely to have EuRoPE Gerard o’Dwyer ASIA & PACIFIC Kelvin King global inluence Market Analyst Richard Corbett Plans are afoot for significant development of the RTD teas market in North America, with Starbucks expected to leverage its knowledge of coffee RTDs – built on its in-store beverage Scientific Adviser Dr John Wilkinson learnings – using the Teavana brand it bought in 2012. Other companies are also rumoured to be on the move in teas, whether from scratch or expanding portfolios already in play. Iced tea is, of course not in any way a novelty in the US and Canada. Home-made iced Annual Subscription Rates (inc. postage) teas, sometimes with mint or other flavouring, had been very popular from the early 1900s Eu Member State: £120, €150 to the latter years of the 20th century. Gradually, though they were eclipsed by the conve - Rest of World: £135, €170, $220 nience of canned or bottled juices, waters, carbonates and dairy-based beverages. Possibly, Individual copies: £15, €20, $25 too by the evolving-lifestyle interest in wine and craft beers. RTD tea offerings were introduced by a number of bottlers, including some impressive Subscription Enquiries craft lines which were subtly flavoured and packed in a format sufficiently sophisticated Soft Drinks International to make such drinks acceptable in a variety of consumption environments. Po Box 4173, Wimborne BH21 1YX, uK However, in terms of market share RTD teas in North America – and in Europe, Tel: +44 (0)1202 842222 Australasia and elsewhere – were slow to accelerate. Fax: +44 (0)1202 848494 It was much the same with RTD coffees. Even when they moved beyond boutique to E-mail: [email protected] mainstream their sales were steady rather than dramatic. Interestingly, the evolution of RTD coffees and teas came at much the same time as the steady growth of RTD spirits-based drinks. RTD spirits matured slowly as mainstream and Editorial - News trusted brands aligned with them, even though the branded spirits were swamped by Maureen Byrne sometimes basic carbonate mixes. In the past decade RTD spirits have tended to normalise Tel: +44 (0)1255 424611 and sales growth dampened. E-mail: [email protected] RTD teas seem likely to have much more staying power, more perhaps than even their coffee counterparts. Editorial - Features Japan is a great example, where every possible variation of packaged RTD tea has been Philip Tappenden launched – well, maybe not ‘every’ given Japanese producers’ penchant for novelty offer - Po Box 4173, Wimborne BH21 1YX, uK ings. Tel: +44 (0)1202 842222 The big players in Japan, Kirin in particular, have vast product portfolios, some of the Fax: +44 (0)1202 848494 lines targeting such prime demographics as the young ‘office ladies’ with money to spend E-mail: [email protected] and an increasing lifestyle awareness to focus this spending. Children too are being recruit - ed, for instance by teas featuring licensed cartoon characters. A recent development in Japan is to introduce RTD tea and coffee variants exclusive to vending machines. Advertisement Sales Japanese producers have taken their RTDs into other Asian markets, with enormous suc - Soft Drinks International cess. Thailand, for example the market share for RTD tea, primarily from local producers Po Box 4173, Wimborne BH21 1YX, uK Tel: +44 (0)1202 842222 was relatively small as recently as 15 years ago. RTD coffees were a niche commodity. Now Fax: +44 (0)1202 848494 the Japanese brands are highly evident in almost all channels. Local producers have also E-mail: [email protected] upped their ranges and their output. RTD teas are booming worldwide – growth will inevitably slow but the category seems Sales Representative set for endless success. Increased acceptance in the US and Canada will have a positive Carolyn Eychenne influence globally. Tel: +33 1 39 58 14 01 E-mail: [email protected] Kelvin King Soft Drinks International (1997), formerly Soft Drinks Management International (1988), was originally founded as the Soft Drinks Trade Journal in 1947, incorporating The British & Colonial Mineral Water Trade Journal (1888) with the Soft Drinks & Allied Trade Review, formerly the Mineral Water & Allied Trade Review (1873). The entire contents of Soft Drinks International are protected by copyright and no part may be reproduced without written © 2016 ASAP Publishing Limited permission of the publishers. Whilst every effort is made to ensure that the information contained in S oft Drinks International is accurate, the editor and publisher cannot accept responsibility for errors, and the views expressed do not necessarily represent those ISSn - 1367 8302 of the editor or publisher. The fact that product names are not identified as trademarks is not to be taken as an indication that such www.softdrinksinternational.com names are not registered trademarks. The Voice of the UK Soft Drinks Industry The British Soft Drinks Association is the national trade association representing the collecti ve interests of producers and manufacturers of soft drinks including carbonated soft drinks, still and dilutable drinks, fruit juices and smoothies, and bottled waters. Join tIhen BSDuA e tondacy ianndg h aGve yoouvr esary nin myouer nindt ustry! Communicating with the Media If you wishP tor reoceimve fuorthetri innforgma tiSon aubosut talal thien benaebts BlSiDtA y membership has tEo of nfer hpleaasen cacll uis non g+44 S(0)2k0 7i4l05l 0s 300 or email [email protected]. 4 InDuSTRY nEWS Soft Drinks Internationa l – March/April 2016 experienced similar sugar taxes, which may act as a guide to how the UK will fare. Mexico, for example, pushed through a sugar tax in 2014, with mixed results. Europe Baillie explains: “While Mexico has seen migration towards the packaged water cat - How will sugar tax egory, and has seemingly prompted a simi - lar trend in neighbouring countries, there affect soft drinks? has also been social outcry that the tax affects the poorest, with many seeing it as an infringement on their daily lives. THE UK government’s announcement of a “With a link between lower income con - new sugar tax on soft drinks, to be intro - sumers and high sugar intake in the UK, the duced in April 2018, may only serve to tax may face similar criticisms. However, it is underpin the efforts of an already-evolving worth noting that the UK has seen larger Canadean has analysed the effect of the UK market, rather than driving any real change, declines in carbonates than Mexico since sugar tax. according to an analyst at Canadean. the introduction of the Mexican sugar tax, The tax is intended to tackle childhood showing that it is currently a decline driven obesity by reducing the number of sugary much stronger increase than the 2% that by consumer choice and therefore less drinks bought and consumed, and by the regular-calorie segment experienced. likely to prompt such an outcry.” putting some of the money raised through This shows that consumers are already Ultimately, with consumer attitudes the tax towards primary school physical switching to sweetened drinks that will not towards soft drinks currently undergoing education.