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November December 2006 > Cover Story
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The Enviga Effect

By Jeffrey Klineman


Get ready, people.

With the release of Enviga, a new calorie- burning tea from the Coca-Cola/Nestle partnership known as Beverage Partners Worldwide, the functional beverage movement has gone mainstream.

The rubber is meeting the road. How should you react? Are you going to have to stock up on products that flush the system, fill the tank, shine up the human hood?

What changes will be wrought in your cooler by the Enviga Effect?

Well, for starters, you’ve got to weave through a lot of traffic chasing after Enviga for the calorie burning space. Already, Elite Fx, the company that first marketed a calorie-burning formula in Celsius, has ramped up its advertising and is pressing for increased distribution, claiming that the release of the Coke/Nestle calorie-burning tea legitimizes the category they pioneered. PepsiCo has its own plans to release Tava, a soda that also supposedly ramps up calorie burning via the mineral Chromium. Snapple, which has a growing green tea brand, will add label language indicating that it, too, boosts the metabolism. Companies like Fuze and Airforce NutriSoda, both of which have products with appetite-suppressing super-Citrimax, are ready to push for more space.

It’s important to note that all of these products are only chasing one thing: thin.

Here’s the skinny: thin is the Killer App in the food and drink business. If people think a drink will help them lose weight, they’ll buy it. A recent survey by the drug company Glaxo- SmithKline PLC showed that 33 percent of Americans who are trying to lose weight have tried dietary supplements with no proven benefit. AC Nielsen recently reported that 15 percent of U.S. households have bought weight loss products in the last year. The market is there for a mainstream product that purports to have a slimming effect.

But at the same time, if it doesn’t work, there are plenty of other products – be they beverages or other consumer goods – that are available to take their place in the weight loss market. That’s the game that Coke and Nestle started playing when they showed the Enviga card.

BEYOND SKINNY

Despite the potential gold mine awaiting an effective weight loss beverage, when it comes to functionality, Enviga had better not be the only card in the deck, according to Kaumil Gajrawala, a beverage analyst with UBS.

“It’s a long-term trend,” Gajrawala says. “Coke has said publicly that they want to better leverage their research and development to develop more of these kinds of products. You’re seeing it across all CPGs (Consumer Packaged Goods) as well. Cheerios has labels that relates to how it affects your heart. Someone else just launched a chocolate bar that’s supposed to be good for your heart. So they’re all going in pretty deep.”

That’s not to say you should expect to stock racks of functional sodas; according to Gajrawala, that particular beverage category is drowning in too many line extensions already. But in those categories whose shelf presence is already growing – tea, water, sports drinks – functionality is going to accompany them hand in hand.

“Efficacy will become important,” says Debbie Wildrick, the beverage portfolio manager at 7-Eleven. “Consumers already have given the industry ‘permission’ to put additives in their beverage, but it’s not enough to have just a splash of a special ingredient in the drink. Consumers want more from enhanced beverages and will expect to feel a difference after consuming these products.”

Natural and New Age food manufacturers realize what consumers want: at the Expo East Convention in October, tea and juice lines like Pure Fruit were defined as much by what they are expected to do as by their flavor. Fuze Beverages, which has recently taken nine of the top 50 supermarket SKUs in the New Age category, are nearly entirely dependent on a mix of products that promise various functions, from appetite suppression to free radical scavenging. Last year, Ito En presented the Sencha Shot, a triple strong bullet of green tea that, if antioxidant research is correct, contains the equivalent of a mortar attack on free radicals. And if Enviga takes off, expect some of those companies to introduce packaging that evokes their latent qualities as much as it does their natural or organic origins. After all, the levels of green tea catechins and caffeine present in Enviga’s “proprietary blend” of calorie burning ingredients are very similar to those present in a well-brewed green tea, in similar ratios.

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