Drinks giants Starbucks, PepsiCo and Unilever have announced a partnership through which Tazo iced teas, bottled beverages which are currently sold through Starbucks outlets, will be distributed more widely. Under the deal, the beverages will be sold across the US in an attempt to give the Tazo brand better exposure. The bottled and iced tea sector is one of the few drinks categories currently experiencing significant growth, and, according to PepsiCo, Tazo exhibits strong future growth potential.

Also this week, US health drinks manufacturer NutriPure Beverages has completed the acquisition of Moneymaker 1. Nevada-based Moneymaker 1 owns the franchising rights to the Inka Grill restaurant and products, and an agreement is already in place with NutriPure to take the concept nationwide. Following NutriPure's recent major acquisition of XND Technologies, the deal is another indication of the company's diversification into more profitable revenue streams.

Edited by

Chris Eatough

IN THIS ISSUE

REPORT OFFER OF THE WEEK

Women's Health in Food and Drinks: Future functional ingredients and innovations

This report analyzes the latest clinical research, sales and epidemiological data to
underpin the growth opportunity and potential of healthy food and drinks for women

Order now to develop more effective innovation strategies for targeting women
through analysis of trends in NPD

LATEST COMMENT

InBev: announces disappointing UK sales and profits

InBev has announced a drop in second quarter UK sales in 2008. The Belgian-based brewer has deflected suggestions that its recent acquisition of Anheuser-Busch has distracted its European focus. The harsh reality for InBev and rivals is that European consumer trends are becoming less favorable for beer sales, lending increasing importance to emerging markets. Read full article

top

RESEARCH IN FOCUS

Understanding Alcoholic Drinking Occasions: The On-Trade

Despite economic uncertainty, consumers' "less but better" attitudes and a desire for indulgence offer marketers opportunities to tap into the on-trade market

Identify the key indicators and the 'who, when and why' of on-trade alcohol consumption

BREWING NEWS

Quilmes reports increased H1 net income
Quilmes Industrial, a brewer and marketer of beer and other beverages, including soft drinks and bottled water, has reported a net income of $148.2 million for the six months ended June 30, 2008, compared to $100.2 million for the same period of 2007. Read full article
Company information: Quilmes Industrial SA

AmBev Q2 net income down
Companhia de Bebidas das Americas - AmBev, which produces, sells and distributes beer, draft beer, malt, soft drinks and other non-alcoholic beverages, has reported net income of BRL402.1 million for the second quarter of 2008, compared to BRL448.7 million for the same period of 2007. Read full article

top

WINE & SPIRITS NEWS

Nascent Foodservice Q2 net loss widens
Nascent Wine Company, doing business as Nascent Foodservice, has reported a net loss of $7.2 million, or $0.04 per diluted share, for the second quarter ended June 30, 2008, compared to a net loss of $2.3 million, or $0 per diluted share, for the same period of 2007. Read full article

Castle Brands Q1 net loss decreases
Castle Brands, a developer and marketer of branded spirits, has reported a net loss of $4.3 million, or $0.28 per diluted share, for the first quarter ended June 30, 2008, compared to a net loss of $4.4 million, or $0.31 per diluted share, for the same period of 2007. Read full article

Corby Distilleries annual net earnings decrease
Corby Distilleries, a manufacturer and marketer of spirits and importer of wines, has reported net earnings of C$31.7 million, or C$1.11 per share, for the year ended June 30, 2008, compared to C$100.4 million, or C$3.53 per share, for fiscal 2007. Read full article

top

NON-ALCOHOLIC DRINKS NEWS

Starbucks, PepsiCo and Unilever partner to grow Tazo tea RTD business
Starbucks Coffee Company, PepsiCo and Unilever have announced a licensing agreement for the manufacturing, marketing and distribution of Starbucks Tazo Tea ready-to-drink beverages, including iced teas, juiced teas and herbal infusions, in the US and Canada. Read full article
Company information: Starbucks, PepsiCo, Unilever

NutriPure Beverages acquires Moneymaker 1
NutriPure Beverages has acquired Moneymaker 1, a Nevada corporation, and Moneymaker 1 is now a 100% wholly owned subsidiary of NutriPure Beverages. Read full article

Penfund announces $18 million investment in Timothy's
Penfund, an independent investment company, has announced an $18 million debt investment in Timothy's Coffees of the World, an affiliated portfolio company of Sun Capital Partners. The terms of Penfund's investment were not disclosed. Read full article

San Miguel reports surge in Q2 net income
San Miguel, a food, beverage and packaging company, has reported a consolidated net income of PHP19.7 billion for the first half of 2008, a 199% increase compared to PHP6.6 million for the same period of 2007. Read full article
Company information: San Miguel Corporation

Bagel Bazaar in New Jersey orders Rudy Beverage products
Rudy Nutrition, a manufacturer of beverages, has announced that Bagel Bazaar Deli has placed a substantial order of Rudy Beverages to address strong market demand in the New Jersey area. Read full article

Lifeway Foods reports lower Q2 net income
Lifeway Foods, a manufacturer of probiotic dairy and non-dairy health food products, has reported a net income of $911,718, or $0.05 per share, for the second quarter ended June 30, 2008, compared to $1.39 million, or $0.08 per share, for the same period of 2007.
Read full article

China Yingxia's Q2 net income increases
China Yingxia International, which is engaged in the development, manufacture and distribution of nutritional food products, dietary supplements and personal care products, has reported a net income of $3.04 million, or $0.06 per diluted share, for the second quarter ended June 30, 2008, compared to $2.46 million, or $0.07 per diluted share, for the same period of 2007.
Read full article

Reed's Q2 net loss narrows
Reed's, which develops, manufactures, markets and sells natural non-alcoholic beverages, has reported a net loss of $491,119 for the second quarter ended June 30, 2008, compared to $693,045 for the same period of 2007. Read full article

Dr Pepper Snapple's Q2 net income drops
Dr Pepper Snapple Group, an integrated refreshment beverage business, has reported a net income of $108 million, or $0.42 per share, for the second quarter ended June 30, 2008, compared to $136 million, or $0.54 per share, for the same period of 2007. Read full article

Hall of Fame Beverages signs distribution agreement with Destileria Serralles
Hall of Fame Beverages, a manufacturer of the Atomic Dogg energy drink line and HydroPower functional water brand, has signed a distribution agreement with Puerto Rico-based Destileria Serralles. Read full article

Marshall receives approval to distribute Socko energy product to Smith's stores
Marshall Holdings International, which markets and distributes nutritional and health products, has announced that it has received approval to distribute its Socko energy product to Smith's stores throughout Idaho, Utah, Wyoming and Nevada. Read full article

top

REPORT BESTSELLERS

MARKET TRENDS

Liqueurs and other alcoholic drinks: top flavors in new global product launches
According to the Productscan database, aside from blend, vodka and lemon were the most used flavors in new liqueurs and other alcoholic drinks products launched worldwide between June 2007 and May 2008. Meanwhile, orange dropped to fifth place, and peach, which appeared in fifth place last year, is no longer listed as one of the 10 most used flavors. However, vanilla is a new flavor for the top 10, appearing in sixth place. Read full article

New drinks launches by category, March to May 2008: raising a glass to wine
According to the Productscan database, fruit & fruit flavored drinks, followed by tea and wine & wine coolers, were the leading categories in new beverage products launched worldwide in the three months to May 2008. Compared with the same period of the previous year, the wine & wine coolers category has shown a notable increase, up 87.6%. Other categories to see growth were beer, coffee and energy drinks. Read full article

Product claims: new drinks launches, March to May 2008
According to the Productscan database, upscale, followed by high vitamins and natural, were the leading claims made on new drinks products launched worldwide in the three months to May 2008. While the upscale claim appeared more frequently than in the same period of the previous year, there was a decrease in the number of launches tagged as being pure and natural.
Read full article

Liqueurs and other alcoholic drinks: top flavors in new global product launches
According to the Productscan database, aside from blend, vodka and lemon were the most used flavors in new liqueurs and other alcoholic drinks products launched worldwide between June 2007 and May 2008. Meanwhile, orange dropped to fifth place, and peach, which appeared in fifth place last year, is no longer listed as one of the 10 most used flavors. However, vanilla is a new flavor for the top 10, appearing in sixth place. Read full article

top

RELATED REPORTS

Consumer Targeting in Food and Drinks: Lifestyle brands, personalized nutrition and customized flavors
16 Aug
The personalization trend in food and drinks is an expression of the wider societal trend of individualization. A key lifestyle indicator of individualization is the decline in average household size and rise in the number of single person households. In Europe and the US, the proportion of single person households is set to rise significantly in most European countries, especially the UK, suggesting a receptive market for single serve personalized food and drinks products.

Costa Coffee case study: retaining brand leadership in coffee shops
12 Aug
This report on Costa Coffee forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the coffee company plans to grow further in both the UK and abroad, despite the threat of economic slowdown, by focusing on creating an authentic coffee experience and an ethical business structure.

Ethical and Wellness Food and Drinks for Kids: Key product trends and manufacturer strategies
8 Aug
This report provides the definitive analysis of the global kids' food and drinks market. The report also assesses the opportunities within health, indulgence, convenience and ethical kids' food and drinks. It also gives detailed analysis of innovative products and other ways in which manufacturers are positioning their products to appeal to kids. Discover the leading innovators, the most successful categories and future growth opportunities in the kids' food and drinks market with this new report.

Online Grocery Shopping Patterns
7 Aug
The online grocery market is experiencing rapid growth due to growing Internet penetration, entry of new players, and the realization amongst time-pressured consumers of the convenience of online purchasing. Despite this potential, the market is however characterized by challenges including gaining consumer loyalty and trust and the development of compelling, easy-to-use online platforms.

Twinings case study: encouraging more diverse tastes in hot beverages
7 Aug
This report on Twinings forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the 300 year old company has kept up with changing tastes by embracing health and premiumization trends and diversifying its range.

Women's Health in Food and Drinks: Future functional ingredients and innovations
1 Aug
This report analyzes the latest clinical research, sales and epidemiological data to underpin growth opportunity and potential of healthy food and drinks for women. It considers the latest product developments to determine new areas of innovation and best-practice marketing strategies in the weight control and beauty, menopause and bone health and pregnancy and urogenital trends.

MarketWatch: Drinks - August 2008
30 Jul 2008
The Drinks MarketWatch contains the latest news, analysis and opinion, covering all the month's major issues including mergers and acquisitions, marketing and regulatory issues. It covers the period from June 15 to July 14 2008.

Product Alert - July 2008
28 Jul 2008
This month's review of new drinks launches from the Productscan database finds that ethical drinks - from the carbon neutral, the ethically packaged to those with a charitable core - are increasingly being introduced to the market.

top

COMPANY SPOTLIGHT

Amway Corporation

Amway Global has announced that it will launch a North American tour of mobile brand experiences to increase consumer awareness of its two flagship brands: Nutrilite vitamin (mineral and dietary supplements) and Artistry skin care and cosmetics.

The company said that the tour will feature two customized vehicles that will educate consumers about the brands and offer opportunities for product sampling.

The vehicles, a customized motor coach featuring the Artistry brand and a customized semi-trailer featuring a Nutrilite experience, will begin touring from October 1, 2008, in support of Amway Global's Presenting Sponsorship of 'Tina Turner Live in Concert'.

Steve Lieberman, managing director of Quixtar North America, a division of Amway Global, said that the campaign is unlike anything the company has done before. He added that Amway is incredibly proud of its Artistry and Nutrilite brands, but that they have been two of the "world's best-kept secrets". According to Mr Lieberman, the company intends to change that by literally taking the two brands on the road and introducing them to consumers.

Key facts

Amway Corporation
7575 Fulton Street East
Ada
MI 49355 0001
US

Tel: 1 616 787 6000
Fax: 1 616 482 4000
Web: www.amway.com

No. Employees: 6,000

top

SUBSCRIPTION INFO

top