Following an exceptional 22% rise in half year net profits, Australian beverage giant Coca-Cola Amatil has said that it is looking to expand significantly. To this end, the firm is reportedly considering acquisitions worth over $800 million. In particular, the Australian powerhouse has expressed interest in purchasing Frucor, Danone's New Zealand unit. Terry Davis, managing director of Coca Cola Amatil, has also said that the company would be interested in Cadbury's local Schweppes unit, referring to how Cola-Cola already owns Schweppes in all other markets of the world.

In the latest of a series of moves to reenergize its business, troubled coffee retailer Starbucks has unveiled the premium Clover brewing system at a number of its stores in Seattle. The Clover is a hugely complex brewing device which, until now, has been the mainstay of coffee connoisseurs and independent brewers. The retailer has caused controversy with the announcement that it will not sell the Clover to independent stores, effectively monopolizing the use of the 'ultra-premium' coffee device.

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

New drinks review: monkeying around with coffee
As the coffee market is highly competitive, manufacturers are constantly looking for new ways to make their coffee stand out. The recently launched RMiguel coffee must take the prize as the most innovative development for a while, being made from coffee beans chewed by monkeys. Meanwhile, an array of health drinks has hit the market, showing that health is still the main focus for many companies. Read full article

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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

Carlsberg names new head of French operations
Danish brewer Carlsberg has announced that Thomas Amstutz, CEO of its Swiss subsidiary Feldschlosschen, has been appointed as the new CEO of Carlsberg's French operations, Brasseries Kronenbourg, effective September 8, 2008. Read full article

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WINE & SPIRITS NEWS

Allied Blenders and Distilleries to spend INR4 billion on expansion
India-based Allied Blenders and Distilleries has said that it is spending INR4 billion to expand its operations, revealed the Press Trust of India. Read full article

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NON-ALCOHOLIC DRINKS NEWS

Coca-Cola Amatil looks at acquisitions worth $800 million
Following a rise in the company's profit in the first half of 2008, Coca-Cola Amatil is looking at making acquisitions exceeding $800 million in value, reported the Business Spectator, citing The Australian Financial Review. Read full article

Starbucks introduces new coffees collection
Starbucks has unveiled a new collection of coffees called the Clover Crafted Small Batch Coffees. These coffees will be available at 10 Seattle locations that will soon expand to include the Boston and San Francisco markets in the coming months. Read full article
Company information: Starbucks Corporation

Pepsi Bottling and Dr Pepper Snapple to expand Crush brand distribution
The Pepsi Bottling Group and Dr Pepper Snapple Group have signed an agreement to make the Crush beverage portfolio available in the majority of Pepsi Bottling Group's territories throughout the US. Read full article
Company information: The Pepsi Bottling Group

Chiquita creates joint venture with Haitong Food
Chiquita Brands International has entered into a joint venture agreement with the Haitong Food Group for the processing, sale and marketing of fresh produce in China. Under the agreement, Chiquita will provide limited capital investment and have majority ownership of the joint venture, Zhejiang Chiquita-Haitong Food Company. Read full article

Layfield Energy teams up with Innovative Beverage to distribute Mamajuana
Baywood International, a nutritional science company, and Layfield Energy, a nutraceutical company, have announced that the distribution of Mamajuana Extreme has been expanded into Innovative Beverage Group. Read full article

Dr Pepper Snapple takes minority stake in Big Red
Dr Pepper Snapple Group has reached an agreement to acquire a minority interest in Big Red, a beverage company. Terms of the agreement were not disclosed. Read full article

Almarai signs deal to acquire 75% of Jordanian food and beverage firm
In line with its expansion plan, dairy company Almarai has signed an initial deal to buy 75% of Taibah's Investment and Advanced Food Company, a Jordan-based dairy and juice manufacturer, according to Reuters. Read full article

Indian FMCG firms to launch new products despite inflation
Indian fast moving consumer goods companies are going ahead with pre-planned product launches despite inflation soaring to a record 13%, said The Financial Express. Read full article

Strauss Q2 group sales up 8%
Strauss Group, a food and beverage company, has reported group sales of NIS1.53 billion for the second quarter of 2008, an 8% increase compared to NIS1.42 billion in the corresponding quarter of 2007. Read full article

Hat Trick Beverages to acquire Vendmax
Hat Trick Beverages has begun negotiations to acquire Vendmax International, a manufacturer of vending machines. Read full article

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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

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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
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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.

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COMPANY SPOTLIGHT

Tata Tea

Tata Tea has announced that it intends to grow its product range. To achieve this, the company is reportedly looking at making significant acquisitions.

Media reports have quoted the Mr Tata, the company's CEO, as saying that these strategic acquisitions will provide the company witrh access to technology, along with strengthening its overseas presence. Tata Tea, which operates in 45 countries and owns 42 brands, is also looking at expanding its wellness range of products.

Recently, the company has transformed itself from a plantation to a fast moving consumer goods company. In relation to this, Mr Tata said that the firm will consider a name change if required.

Key facts

Tata Tea
1 Bishop Lefroy Road
Calcutta 700 020
India

Tel: 91 33 2281 3891
Fax: 91 33 2281 1199
Web: www.tatatea.com

Calcutta Ticker: TTAEY
No. Employees: 59,740

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SUBSCRIPTION INFO

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