Store Brands

APR 2016

Store Brands delivers unprecedented strategic and tactical information needed by retail executives to develop and support compelling, differentiated store brand programs to build customer loyalty.

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Category Intelligence: Juices and Waters 6 4 Store Brands / April 2016 / consumers want premium water," Lockwood says. "Of course, everybody's got a different opinion of what that means. It could mean water with a high pH, electrolytes, vitamins, minerals or energy additives." Kim McClure, director of marketing – natural brands for Denton, Texas-based Lily of the Desert, agrees. Consumers are looking for value- added enhancements from fruit, vegetables and plants such as aloe vera. "Consumers want to know that what they are putting into their bodies is going to have a positive effect on their health," she adds. Just as important to consumers is what is not in their beverage, Lockwood says. And consumers don't want anything artificial. They also don't want anything super sugary. For example, the industry is moving away from adding syrups for flavoring, observes Denis Paquette, vice president of sales and development for Les Moûts de P.O.M. Inc., Saint-François-Xavier- de-Brompton, Québec, a supplier of artisanal all-natural, non-alcoholic sparkling fruit juices, lemonades and mocktails. Instead of syrups, fruit, vegetables and herbs are used more often to flavor beverages, Paquette states. "You will see more and more blends of these, which will not only enhance flavor but will be functional as well," he adds. "They will be designed to enhance energy or promote relaxation." Creative and unique flavors are especially important within the sparkling water category, Lockwood states. Sparkling water also happens to be one of the fastest- growing water segments. Consumers are leaving carbonated soft drinks but still want carbonation in their drinks. Ice River Springs, which bottles spring, purified and distilled water for the private label market, is in the process of introducing a line of sparkling Canadian spring water in organic flavors, including lemon, lime and tangerine orange. Take advantage of fluid sales Bottled water consumption soars, while the juice category struggles to satisfy better-for-you expectations. By Dana Cvetan he better-for-you trend shows no sign of abating when it comes to beverages. In particular, thirsty Americans seem to be walking away from carbonated soft drinks, which are losing ground to flavored sparkling and still waters. The bottled water category posted record-high sales of more than $15 billion in 2015, a 6.4 percent increase over the previous year, according to global market research firm Mintel in its January report "Bottled Water — US." Furthermore, Mintel projects dizzying sales growth through 2020 for bottled water: overall category growth of 34.7 percent plus an impressive 75.1 percent for the sparkling/ mineral water/seltzer segment. On the other hand, sales of 100 percent juice, juice drinks and smoothies remained flat in 2015. Mintel estimates in its November 2015 report, "Juice, Juice Drinks and Smoothies — US" that there will be less than 1 percent growth within the category. The lack of category growth could be because the 100 percent juice and juice drink segments, which comprise the bulk of the category, suffer from consumer perceptions that they are unhealthful. Value-added preferences The dominant trend in the juice and water category is value-added better-for-you beverages, declares Dave Lockwood, vice president of sales for Ice River Springs Water Co., with U.S. headquarters in Morganton, N.C. Premium offerings with additives are driving growth within the bottled water category, he explains. "Fifty-three percent of Do follow the better-for- you trend in bottled water and juice. Don't "hide" healthful bottled water and juices in center aisles; showcase them at health- conscious community events. t o i c l c w c w v – D L a a a a

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