Recent innovations in taste, texture and flavor combinations are helping functional beverage manufacturers seize the opportunity presented by the nearly 60% of consumers who Innova Market Insights reports are actively managing their health and the one in five shoppers who it found are proactively seeking products with health-boosting ingredients.
According to the consumer research group, the top benefits consumers seek from functional beverages are gut health and immunity, energy and alertness and protein – but which attribute comes out on top often hinges on shoppers’ age, the type of beverage in which they are delivered and how clearly brands communicate health claims.
In this episode of FoodNavigator-USA’s Soup-To-Nuts podcast, three functional beverage brands showcasing at Natural Products Expo West and the Winter Fancy Food Show share how they are meeting consumer demand for health benefits while simultaneously delivering more enjoyable drinking experiences than their competitors. They also share strategies for standing out on increasingly crowded shelves and winning the trust of retailers and consumers.
Explore past episodes of Soup-To-Nuts podcast
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Catch up on past episodes of Soup-To-Nuts:
5 trends reshaping chocolate: From clean label to flavor innovation to cost containment – Up and coming chocolate brands are rethinking how they make – and package – chocolate to meet rising consumer demand for better-for-you and clean-label options, while simultaneously navigating rising costs
Flavor trends: How to balance authenticity and access when introducing global dishes - Consumers says they want adventurous new flavors and international cuisine, but many are hesitant to try something unfamiliar - creating a ‘conundrum’ for manufacturers and marketers introducing global flavors
What is driving consumer interest in regenerative agriculture? – Consumer awareness and interest in regenerative agriculture is exponentially increasing - placing pressure on farmers, manufacturers and retailers to work together to boost supply
Danone seeks to rekindle consumers’ love of plant-based milk – Sales of plant-based milk have slowed in the past year, but Silk and So Delicious maker Danone still sees significant potential by focusing on fun in addition to function
What attracts consumers to whole grains and where is there room for innovation? – As the Whole Grain Stamp celebrates its 20th anniversary, Oldways Whole Grain Council considers where there is room for innovation and how to overcome barriers blocking product development and consumption of whole grains
Evolution Fresh enters ‘modern soda’ set with fun flavors and fresh fiber approach
According to Innova Market Insights, consumers across generations want beverages that support gut health and boost their immunity but which still deliver big flavors and refreshment – two benefits on which so-called ‘modern soda’ is heavily focused and which are the cornerstone for the recent debut of Real Fruit Soda by the organic, cold-pressed and premium juice brand Evolution Fresh.
At Natural Products Expo West, Evolution Fresh teased two new flavors of its Real Fruit Soda lineup, including Black Cherry Cola and Pineapple Dragon Fruit, which are hitting shelves this spring.
According to Molly White, the chief marketing officer for Generous Brands – the parent company of Evolution Fresh – the combination of classic and bold new flavors epitomizes what many consumers are looking for in soda, but the brand’s addition of 5 grams of prebiotic fiber and only 5 grams of naturally occurring sugar help it simultaneously check the health benefits that consumers also want.
Unlike other modern sodas with prebiotic fiber that ships at room temperature, Evolution Fresh ships its Real Fruit Soda through the same cold chain it uses for its other fresh beverages, which White says helps protect and maintain the ‘dose’ of fiber in each can. She explains that while prebiotic fiber does not require refrigeration, by keeping it chilled Evolution Fresh limits the natural degradation and conversion of the fiber into simple sugars that can occur over time at room temperature.
Evolution Fresh also is carving out space for its Real Fruit Soda in the modern soda set by selling it as single cans in the refrigerated section – making it perfect for impulse purchases, although White says sales data show strong repeat purchases.
Stress reduction and enhanced focus drive growth in energy drink segment
In addition to gut health and immunity, two increasingly popular health benefits consumers seek in functional beverages are energy and alertness. According to Innova Market Insights, these are the second most common health positioning globally for functional beverages, with nearly a quarter of new product launches carrying the claim between 2018 and 2022 with a 5% compound annual growth rate.
Innova explains that ‘energy’ and ‘alertness’ may sound the same and have a significant overlap, but they are notably different in that the first is aimed more towards supporting sports and fitness and the second is about cognitive support or delivering the benefits of caffeine but without the jitters.
At the Winter Fancy Food Show, Jonathan Kander, the chief marketing officer for the startup energy drink VALR Brand, explained that within the energy beverage market the two fastest growth drivers are enhanced focus and reduced stress – which he says VALR offers in a unique drinking experience.
VALR is a new brand with 175 milligrams of natural caffeine sourced from green tea leaves, which is blended with l-theanine, huperzine A, rhodiola rosea and lutein for a clean label beverage that delivers an energy boost without anxiety or jitters.
“The big difference for our brand versus anything else that is out there in the marketplace is that our product is nitrogen infused. Effectively, what that means is a nitrogen widget gets activated whenever you open the can. It infuses the nitrogen through the liquid, creating a really creamy, smooth flavor,” Kander said.
The creamy mouthfeel created by the nitrogen pairs well with the brand’s initial flavors – orange cream and blueberry tart – and opens the door for new usage occasions, such as an indulgent tasting afternoon pick-me-up or a pre-workout beverage that does not negatively interact with vigorous activity like a fully carbonated beverage might.
Tatu Protein Water offers refreshing alternative to heavy sports shakes with cloying flavors
The second most popular functional beverage claim in North America after energy and alertness is protein, according to ingredient company Glanbia, which notes protein claims particularly resonate with younger Gen Z and Millennial consumers.
While the protein beverage category is crowded with powders, smoothies and shakes designed for sports and fitness recovery and muscle-building, the Co-Founder and COO of Mindful Proteins Jacoba Gundle said the taste and texture of many protein beverages does not align with what consumers crave post workout – which Gundle says is hydration, refreshment and clean label nutrition that is just as healthy for the body as the workout session preceding its consumption.
Gundle explains that Mindful Proteins first product – Tatu Protein Water – fills this unmet need.
“When we finish a workout, we do not want to go home and put protein powder with a bunch of fruits and vegetables into a smoothie. It takes way too much time and it is a lot of clean up. We also do not want to drink a protein shake that is thick and milky and mostly chocolate flavored or vanilla flavored or salted caramel flavored. I just spent an hour at the gym doing something really great for my body. I want to put something really great for my body in afterwards,” and I want something refreshing, Gundle said.
Tatu Protein Water currently comes in two flavors – lemon ginger and juice orange mango – and each can includes 15 grams of whey protein sourced from New Zealand, 0 grams of sugar and 60 calories.
