Energetic outlook for drinks with added extras

17 November 2005 | by Rosemary Ryan

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The soft drinks industry is a multi-billion dollar business but as sales in every carbonated and still sector, from fruit and vegetable juices and bottled waters to sports and energy drinks, continue to grow so too does consumer confusion.

Fortunately, improved labelling requirements have taken away some of the guesswork but there is still some way to go, particularly when it comes to the area of functional beverages including sports and energy drinks and an increasing array of other products that promise extra benefits besides just quenching your thirst.

The energy and sports market alone is now worth $108m and is growing at 24%, according to AC Nielsen, with Australians downing more than 23 million litres a year.

The peak industry body for the soft drinks market Australian Beverages has clear definitions for both energy and sports drinks, underlining the difference between the categories.

CEO Tony Gentile says that sports and isotonic (electrolyte) drinks are water-based and may also contain fruit juices, carbon dioxide and flavours, colours and additives. Specially formulated in accordance with the stringent regulations laid down by the Food Standards Code, the drinks provide for the rapid replacement of fluid, carbohydrates, electrolytes and minerals during and after strenuous exercise. They are consumed mainly by sportspeople and have been widely endorsed by the Australian Institute of Sport (AIS).

Among the popular sports drinks are such well-known names as Gatorade, and Powerade Sportswater (manufactured by Coca Cola Amatil). Sports drinks are widely used by many professional and amateur athletes who believe that a sports drink supplement is not only a great thirst quencher but also has the potential to enhance performance in a wide variety of sporting situations.

Says Gentile: “Energy drinks, which like sports drinks represent a significant and growing niche sector of the soft drinks market, are quite different. The products may be sweetened, with sugar or non-nutritional sweeteners, and usually have added caffeine. Other additives can be flavourings, colourings, herbs, vitamins, usually a selection of B vitamins, and amino acids, all of which must be detailed on the label.

There are many different brands of energy drinks now on the market, both on supermarket shelves and at most hospitality/food service outlets. Most brands have their fans but among the most popular are V Energy drink, manufactured by Frucor, Red Bull and Black Stallion. There are a host of others with many finding a market not only as ‘instant pick-me-ups’ but as ‘cool’ mixers for vodka, whisky and other spirits.

A growing number of bars and nightclubs for instance have some of the brands on display along with the other more traditional mixers.

Frucor’s trade manager John Sawacki predicts that the growth potential for energy drinks is tremendous.

“The important thing is for drinks outlets to provide adequate shelf space in their display cabinets. This is still being over-allocated to traditional soft drinks despite today’s changing dynamics,” Sawacki said.

Nutrition Australia says that while energy drinks contain a wide range of ingredients, the one thing most have in common is a form of sugar, such as sucrose or glucose, and caffeine, usually extracted from a South American plant called guarana. Many also include a range of vitamins, especially the B vitamin group, and a number of herbal supplements such as gingko biloba, echinacea, ginseng and St John’s Wort, and amino acids like taurine.

Do such ingredients really provide a boost to physical and mental wellbeing? Nutrition Australia says the answer is yes, to a certain degree, but the organisation goes on to provide a warning about consuming too many of the drinks.

“As with so many substances, if a little is good, more is not necessarily better,” Nutrition Australia says. “There is no doubt that caffeine can enhance physical and cognitive performance as it stimulates cardiac output and the central nervous system. But too much carries a risk of increased blood pressure, anxiety, shaking, elevated heart rate and increased urine production (increasing the risk of dehydration). The secret, as with any other food and beverage intake, is moderation.”

The energy drink craze has been picked up by the fruit juice bars that have mushroomed across Australia over the past few years. Most of their menu boards offer drinks positioned as energy enhancing with the addition of herbal supplements similar to those used in bottled energy drinks.

Customers can call in for a quick health ‘fix’, whatever they feel their body is lacking. Lost the plot? Have a dash of gingko biloba and guarana and improve your brain function and energy level. Or maybe a wheatgrass shot for a healthier, younger and more energetic you.

Organisations like the Australian Consumers’ Association and the Australian Competition and Consumer Commission have expressed their reservations about energy drinks in relation to the health benefit claims used in marketing the drinks. But most manufacturers of the bottled products as well as juice bars have taken the message on board and stopped making extravagant claims about health benefits. It hasn’t affected their appeal with consumers though with sales continuing to grow strongly.

Wheatgrass has become one of the hot trends in the energy/health segment with consumers braving the taste in pursuit of wellbeing. One of the latest to hit the market is the branded wheatgrass product Swheat wheatgrass shots from a company called Live Liquids.

Swheat — pronounced ‘sweet’ — had its official launch at FineFood Sydney and took out the award for Best New Hospitality Product. It uses innovative packaging that features a plastic shot glass divided down the middle with wheatgrass on one side and orange juice on the other for easier consumption. Live Liquid founders Pete Russell and Craig Hubbard have timed the launch ahead of summer, positioning the product as a way for people to get in condition and ready for the busy season ahead.

Russell and Hubbard say that Australians are following the trends seen overseas in the ever increasing interest in health.

“The US and UK are obsessed with ‘well-being’ right now as a result of growing concerns about the obesity and other health problems among the general population. Australia is equally alarmed and has responded by showing a greatly increased interest in healthier diets and natural products,” Russell said.

Live Liquids marketing strategy has included the launch of a detox promotion, the 7 Day Summer Wheatgrass Well-being Detox Challenge, which has the Swheat shots at its centre.

The benefits of wheatgrass have recently been underlined by the findings of several prominent Australian doctors who say that the plant has been successful in the treatment of a number of ailments minimising the need for antibiotics.

Other medical researchers have been more hesitant about benefits, saying that while anecdotal evidence points to wheatgrass having healing qualities, to date the actual scientific evidence is still somewhat limited.


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