What's Your Function?

Today's consumers want beverages that relax the mind, prevent hangovers, strengthen bones and more.

In years past, consumers reached for a bottle of water or a glass of juice simply to quench their thirst. But today, they imbibe beverages for so many other reasons — from aiding a workout to relaxing the body or mind.

"In the beverage industry, we are seeing more and more functional beverages," notes John Wilson, marketing coordinator with Edison, N.J.-based Allen Flavors.

And this reality won't be changing anytime soon.

Where the growth is

In particular, Wilson says he is seeing a number of "recovery" beverages making their way into the market — not only workout-recovery beverages, but also anti-hangover products. Typically, the anti-hangover remedies retail as 2-ounce vitamin-infused shots that are meant to be knocked back before enjoying alcoholic beverages.

Wilson also notes that calcium-enriched beverages for women continue to grow in popularity, as do products targeting baby boomers. These boomer-focused beverages aid everything from eye health to weight management.

Other products aid the relaxation process. Wilson says some manufacturers are adding natural ingredients to their ready-to-drink (RTD) teas to slow consumers down a little.

"These additives might be chamomile, valerian and rose hips for relaxation — and vitamins for general health," he explains.

And when it comes to fruit juices, smoothies and beverages containing juices from superfruits continue to grow in popularity, says Pat Nicolino, vice president of marketing with Clement Pappas & Co., Carneys Point, N.J. She also points to "light-style" juices as products that are in high demand.

"Those are reduced-calorie juice cocktails that started as the 'lower-calorie' alternative to 100 percent juices, but now have evolved to be mid-point in calories," she says.

Speaking of lower-calorie alternatives, the coconut water craze continues to march on. The Global New Products Database of global research firm Mintel International says the coconut water category continues to grow as more consumers turn to this all-natural high-potassium, low-calorie electrolyte beverage.

Steve Fay, executive vice president of Roscoe, Ill.-based Berner Food & Beverage, says his company's R&D team has been formulating coconut-based beverages for retailers' store brand programs. The team also has developed some cutting-edge beverage formulations that are hemp-based.

Fay sees strong growth in ethnic products, as well. Currently, Berner makes several Central and South American beverages available for private labeling, including Avena Con Canela (an oatmeal shake) and a traditional Mexican horchata.

"They do well with both Hispanic and non-Hispanic consumers," he says.

Concentrates also are beginning to make their way into the alternative beverage sector, particularly in energy drinks. In late 2011, Kraft Foods launched its MiO Energy Liquid Water Enhancer. And now, Alexandria, Va.-based

DreamPak offers a similar product under the Enhanca Energy brand and for retailers' own-brand programs. One squeeze of the water enhancer delivers 60 milligrams of caffeine and 10 percent of the daily value for vitamins B3, B6 and B12.

According to Tarick Gamay, business development manager with DreamPak, multi-serve squeeze bottles are slowly replacing powder-filled stick-packs in the beverage market.

Do remember that ethnic beverages can appeal to ethnic and non-ethnic consumers alike.

Don't assume that recovery beverages are limited to workout-recovery products — anti-hangover shots are growing in popularity.

Battle of the bottles

On the topic of bottles, Fay says he is seeing a number of retailers converting from glass to plastic and metal for their RTD beverages.

"There is a great deal of interest on [the] part of some very large retailers in eliminating glass breakage," he explains. "As a result, the industry is searching for solutions. Plastic is a good alternative for products that are acidified or that do not require high heat treatment."

However, some products — particularly milk-based ones — are heated to temperatures as high as 270° F, Fay points out. And plastic bottles that can withstand such high temperatures do not recycle easily. Therefore, metal is a more viable alternative.

"We see the introduction of aluminum cans with a screw top as the best answer," he says. "We hope to be online with this packaging in the not-so-distant future."

Still, glass does still have its place. Christian Clerc, director of sales with Ashland, Mass.-based Eurobubblies Inc., says his company packages its all-natural sparkling French lemonades in 25.4-ounce embossed glass bottles with swing-top closures for a reason: to convey a premium message.

"[The product] caters to the ... consumer looking for a fantastic import presented in an attractive and unique package that sets it apart from the crowd," he explains.

Do consider creating an in-store "beverage center" that houses all of your beverages in one central location.

Don't underestimate the effectiveness of a good sampling program for your alternative beverages.

Get their attention

But whether it's made from glass, metal or plastic, even the sleekest-looking container does only so much to entice consumers to try a beverage.

Source: SymphonylRI Group. U.S. supermarkets, drugstores and mass merchandiser outlets, excluding Walmart, for the 52 weeks ending Nov. 27, 2011.

"Packaging is, of course, key in getting the customer's attention," Wilson says. "But sampling is a tried-and-true vehicle to generate buzz and increase sales."

Sampling works especially well with seasonal beverages, as consumers love to try new and limited-edition flavors or products, Fay notes.

Clerc agrees. Using his company's sparkling French lemonades as an example, he says retailers could promote limited-edition versions of them based on holidays and seasonal events. Customers could be invited to come in and sample the products before they buy them.

"For instance, our blood orange lemonade goes perfectly with Halloween, while our pomegranate blueberry lemonade is a perfect fit for Thanksgiving or Christmas," he says.

And Facebook and Twitter are especially useful as avenues for issuing sampling invites. Fay notes that social media marketing resonates well with alternative beverage consumers.

Quick-response (QR) codes also strikes a chord with these consumers. Nicolino says retailers should consider printing QR codes on product labeling and shelf tags to draw in smartphone users. With the scan of a smartphone, these codes redirect consumers to web pages containing additional information and useful facts that help to educate and win the sale.

As for the category's future, Nicolino predicts that leading retailers will create "full beverage centers" that pull all beverage offerings into one central location in the store.

"Waters, juices, carbonated soft drinks, RTD tea and coffee, and beer and wine will come into centralized areas that allow [shoppers] to see all choices and to stock their carts right there," she says.

Look what's new

Archer Farms Mocha Coffee Energy Drink from Minneapolis-based Target Corp. is infused with vitamins C and D, and four different B vitamins. The low-fat chocolaty beverage is said to be a good source of calcium; it contains 100 calories and retails in an 11-oz.

New from ALDI Inc., Batavia, Ill., is Summit Red Thunder Berry Energy Shot. The 2-oz. supplement contains B vitamins, caffeine and phenylalanine. It retails in a single-serve recyclable PET bottle.

Kroger Slim Rite Chocolate Royale Flavored Meal Alternative from Cincinnati-based Kroger Co. is a naturally flavored product that is said to be a delicious meal alternative. The product provides a Weight Watchers PointsPlus value of 4 and retails in a pack containing four 11-oz. bottles.

Best Shot Extra Strength Pomegranate Flavored Energy Shot from Pleasanton, Calif.-based Safeway is said to provide hours of energy without the crash. The supplement — which contains B vitamins and amino acids — retails in a pack of two 2-oz. PET bottles.