Accelerating Health Innovation™

How to formulate innovation

According to Mintel data, the US functional beverage market is valued at $9.8 billion, and while large multinational companies have entered the market, the category began with smaller companies. "Gatorade and Red Bull could be called the first truly functional liquids." The purpose of this article is to address how smaller beverage companies can remain innovative and formulate functional beverages that appeal to consumers. To answer that, Beverage World gathered a panel of industry insiders that include the founder of Function Drinks, Alex Hughes; the founder of Ardea Beverage, Joe Heron; Go Fast Energy Drink founder, Troy Widgery; the sales and marketing manager for Hormel Specialty Products, Chet Rao; and Kate Ratliff of Pro-Liquitech International, which works with Ardea on product development. Function Drinks began with Urban Detox, which was designed to help fight the harmful effects of airborne pollution, and now includes beverages boosting the immune system, reducing stress and speeding up metabolism. Its latest introduction is Night Life, to promote sexual health. Ardea makes the Nutrisoda functional beverage line and is known for a willingness "to experiment with new and innovative ingredients to offer meaningful health benefits," several of which are noted. GoFast also continues to work on innovation and has added ribose to the Go Fast formula "to help sustain the energy boost." It also offers Go Fast Light, with 100 fewer calories. Hormel Specialty Products markets Eterna omega-3 fish oils for use in food and drinks and Rao emphasizes the importance to small companies of collaboration between product development and marketing and possibly of co-branding.

Beverage World
6/15/2008