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November December 2006 > Cover Story
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The Enviga Effect

By Jeffrey Klineman

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DOWN THE ROAD

By all means, be ready to hop on the functionality train. If you’ve simply got a convenience CSD cooler, think about adding an Enviga or a Tava, or even a Celsius – products like that are attractive to drivers (especially considering the fact they have massive amounts of caffeine). And if you’ve got a broad array of products, be ready to go further. Think about the way orange juice manufacturers created new revenue streams – and soaked up space in the dairy cooler – by coming up with different fortification packages, and you’ll get an idea of the potential for expansion.

But here’s a little packaging note that needs to be kept in mind:

“This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, prevent or cure any disease.”

You’re going to see it on a lot of labels. And the number of disclaimers might eventually come to overwhelm the perceived level of benefit. In December, the FDA is meeting to start defining, in a regulatory sense, some of the products that produce functionality. If that happens, get ready to see the numbers shrink all around – including those products whose only fortification has been their own marketing claims.

Nevertheless, there’s a lot to try, and the end result could be, rather than a series of products that are part of other categories – a la Enviga or Tava – just a functional category all to itself. The demand is there, Wildrick says.

“They’ll keep looking,” she says of consumers. “Word-of-mouth and viral marketing will quickly raise awareness and trial of those drinks that customers believe live up to their claims. Products that disappoint will drop off the shelves, whereas the best performers will be the winners.”

You didn’t think we’d leave you with just one major industry current, did you? Here are some other important developments to keep track of in the year to come.

TEAS STEEPED IN ADDITIONAL GROWTH — Tea sits at the intersection of two trends: functionality and health. With its leaves serving as a natural source of flavor and of the antioxidant-supplying catechins, tea is poised for continued major growth this year. How valuable is that prospect? It’s so tempting that longtime couple Beverage Partners Worldwide – Coke and Nestle – are taking a trial separation over green, white and red teas, developing their own products independently.

MORE LIGHT IMPORTS — The only way things could have gone better for Heineken this year is if Andre Agassi could’ve rallied to win the U.S. Open with a Heineken Premium Light in his left hand. As it was, though, the product exceeded all predictions that it would exceed all predictions for success. So expect other importers to rush to market, and a bigger ad push from Beck’s. Otherwise, non-high-end imports are likely to face the same problem as domestic premium brands: the galloping grape.

THE SEARCH FOR THE MAGIC SWEETENER — Honest Tea thought they had it earlier this year with erythritol, a fermented organic cane sugar, then they scuttled their Tangerine Green tea. There’s still talk of Chinese Splenda, while ace-K continues to be blended with everything under the sun. But until someone comes up with a low-calorie way to replace real sugar’s taste, expect the juggling acts to continue.

ENERGY — Caffeine paranoia is expected to build to an early high right at around New Year’s Eve, when the consumption of energy drinks and vodka hits an all-time high, and products like Cocaine and Green Card draw even more negative media attention.

WIDESPREAD WATER ENHANCEMENT — From BooKoo to Odwalla, enhanced waters will be everywhere next year, capitalizing on the growing market exemplifi ed by Vitaminwater. And while there are plenty of products that claim functionality coming out, that market will be tiny compared to the demand for more low-calorie, fruit-flavored waters with a little vitamin enhancement and some snazzy packaging.

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