Herbal water latest player in functional drinks
Philadelphia manufacturer is taking herbs into water.
Ayala's Herbal Water features flavors derived from herbs and the company touts the health benefits associated with antioxidants. The new water is calorie-free and has no artificial additives or preservatives. Innovation is the key to success in all industries, but the increasingly competitive functional beverage market is particularly demanding as the larger drink players are now caught up in the marketing of these products too. "The water's herbs are also a rich source of antioxidants and other beneficial compounds naturally occurring in plants," said Dr. Ayala Laufer-Cahana, the Philadelphia-area paediatrician who created the product. The water's packaging makes use of a subtle marketing approach - employing clean lines and connotations of refreshment, without spelling out any specific health benefits. The six flavors are lemongrass mint vanilla, lavender mint lemongrass thyme, jasmine vanilla, clove cinnamon cardamom, cinnamon orange peel and ginger lemon peel. However, the product labels do not have the added consumer appeal of a choc-full Nutrition Facts label. Instead, the nutrition facts indicate that the amount of nutrients in the bottle is not enough for labeling or health claim purposes. As such, the product looks more likely to lure consumers who already trust in the potential benefit of herbs, or to draw a following based on the appeal of its taste. The so-called enhanced water category - mainly featuring vitamin-fortified waters - has been the latest category to take the functional beverage market by storm. Mintel recently reported the market has grown by 30 percent in the past five years. It reached $9.8bn in 2007 - up 14 percent from 2002, when taking inflation into account. Consumers aged 18-34 and households with children appear to have led growth in this category. Ready-to-drink functional tea, enhanced bottled water and sports drinks are leading the way with use highest among both consumers aged 18-34 and households with children, said Mintel. Another trend which has made headlines of late, thanks to the likes of the Coca-Cola Company, is that for enhanced water and sports drinks. Sales for these beverages grew by 73 percent to $1.2bn from 2004 to 2006. The top three companies in this market are now Coke, PepsiCo and Energy Brands - amounting to 90 percent of the market.
