Beverage trends look to health and wellness in 2005 (1/2)

Enhanced waters and soft drinks, specialty teas and coffees, and re-marketed liquors top the "what to watch" lists of United States beverage industry pros for 2005. "I think we will see increased innovation around enhanced waters, and increased marketing activity around diet carbonated soft drinks," noted Gary Hemphill, senior vice president of Beverage Marketing Corp., a New York-based research and consulting firm. "There is an overriding focus on health and wellness in the beverage category. I think we'll see some health and wellness component, whether it's low-carb or something else. There's certainly an aggressive focus on healthier, better-for-you products today." "If I had to pick a trend that will begin to affect the foodservice side of the business, it's probably going to be customized waters," said analyst Bob Messenger, editor of TheMorningCup.com. "Customized, wellness-driven water is going to be a major player that even will extend into the spirits side of the business," Messenger added, noting various low-carb marketing strategies coming from the alcohol sector. Victoria de la Huerga, senior vice president of the beverage business unit at ingredient supplier Wild Flavors in Erlanger, Ky., also predicts health-focused beverage trends for 2005. "I think there will be more healthy, better-for-you beverages that will start to be ordered in restaurants, particularly in fast-food types [of places]," de la Huerga said. "Some of those are starting to carry milk now, and that's unusual compared with what they also carry." Health-and-wellness products also could include a wider variety from which to choose, she added. Messenger noted that manufacturers also would react in 2005 to upcoming legislation. "We'll also see trans fats removed. The foodservice sector is going to be just as frightened as the retail side of the business because of the pending regulation in January 2006. That's when trans fats have to be listed on labels," Messenger said. "I think you'll be able to go into a restaurant and get a low-carb ice-cream grasshopper. That's definitely an area to keep an eye on." Specialty coffees and specialty teas also are expected to ease their way further into American consumers' cups via restaurants of all segments. More educated consumers will demand it, and the restaurant sector is going to have to react, Messenger said. "The restaurants have not been the best at providing customers with really good coffee. In fact, they lag even behind the retail sector. I think we're going to see some muscling up of coffee in the restaurants. We may even see some strong tea development." The specialty tea market in particular is set to explode in 2005, noted Joe Simrany, president of the Tea Council of the USA, a promotional group that supports tea consumption in the United States. "Today [specialty tea] still represents the smallest part of all of the tea segments, but it's probably the most profitable part. Green tea is a piece of that," Simrany said. Green tea is becoming more popular because of its posture as a specialty tea and its purported health benefits. "Green-tea sales have grown over the past 10 years from $200,000 in retail sales to $250 million in retail sales at the end of this year. That's gigantic," he added. Chai tea, which is gaining popularity in everything from tea cups to ice-cream confections, falls into the specialty tea category as well. It offers consumers a bridge between coffee and tea because of its unique, strong flavor profile within the tea segment. "Chai is the cappuccino of the tea world. It's highly flavored and highly aromatic," Simrany said. The specialty tea market in particular is set to explode in 2005, noted Joe Simrany, president of the Tea Council of the USA, a promotional group that supports tea consumption in the United States. Some of the more progressive restaurants are employing tea sommeliers, he added.