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BACK-TO-SCHOOL LITE

Pencils and notebooks aren't the only products in demand now that back-to-school season is here. Heightened awareness of childhood obesity has better-for-you beverages making the grade at supermarkets, too.About 16% of adolescents ages 12 to 19 and 15% of children ages 6 to 11 are obese, according to the American Obesity Association, Washington. Statistics like these have made parents think twice

Pencils and notebooks aren't the only products in demand now that back-to-school season is here. Heightened awareness of childhood obesity has better-for-you beverages making the grade at supermarkets, too.

About 16% of adolescents ages 12 to 19 and 15% of children ages 6 to 11 are obese, according to the American Obesity Association, Washington. Statistics like these have made parents think twice about the types of foods -- and beverages -- their children consume in school. It has led to significant growth of both national-brand and private-label beverages whose labels feature such statements as "100% juice," "All Natural," "100% vitamin C" and "Made With Real Fruit Juice."

Likewise, drinks flavored with Splenda and other sweeteners are making "light" and "low-calorie" drinks more prevalent on supermarket shelves.

"People have become more aware of the sugar content in juice products," noted John Aleksandrowicz, grocery category manager, Foodtown, a Woodbridge, N.J.-based chain with more than 50 stores.

Foodtown is keeping pace with the trend by developing a light private-label fruit drink, according to Aleksandrowicz. Sweetened with Splenda, the beverage will be marketed under the Foodtown label in a 64-ounce bottle in three flavors: cran-raspberry (20% juice), cran-cocktail (25% juice) and fruit punch (5% juice). Each will contain between 30 and 45 calories per serving.

Slated to be introduced in the fall, the line will be the first low-calorie, ready-to-drink juice that Foodtown has carried under its corporate brand. A sugar-free powdered drink Foodtown markets under its own label was introduced last year.

"We noticed that light drinks are performing well, and we wanted to make the right kind of private-label drinks available to our consumers," Aleksandrowicz said.

Ocean Spray's line of light juice drinks and Light Hawaiian Punch are among the national brands that have posted strong sales gains at Foodtown. Aleksandrowicz is readying his stores for a variety of other products that are already available and others that are headed to market.

He cited interest in Dazzlers beverages from Le Nature's, Latrobe, Pa. Dazzlers are all-natural, contain 100% vitamin C, and are fortified with vitamins D and E, and calcium.

Indeed, concerns about the obesity epidemic have prompted manufacturers to make low-calorie and value-added items an important part of their brand portfolios.

"Most of the new beverages coming to market today have a health or wellness component," said Gary Hemphill, senior vice president for New York-based Beverage Marketing Corp., a research, consulting and financial services firm.

Retailers have responded to the introductions with new private labels, merchandising and promotional plans. "Retailers are riding the [health and wellness] wave by finding ways to display, merchandise and promote products that are better for you," noted Tom Pirko, president of Bevmark, a Santa Barbara, Calif.-based consulting firm.

While obesity concerns haven't affected K-VA-T Food Stores' promotional schedule, they've had an impact on its shelf sets, according to Rick Kelly, beverage category manager for the Abingdon, Va.-based chain.

K-VA-T makes sure it allocates sufficient space to fast-moving, better-for-you drinks like Light Hawaiian Punch and Kool-Aid Jammers 10, a new ready-to-drink juice drink with 10 calories, two grams of carbohydrates and 100% vitamin C.

"We've made sure to include these types of beverages in our product mix so that we can cater to health-conscious moms," Kelly said. "They will continue to grow and remain a vital part of our business."

K-VA-T also gives plenty of attention to certain carbonated soft drinks that are appealing to health-conscious parents. The majority of these are the smaller, eight-ounce CSD cans on the market. K-VA-T carries eight-ounce, six-packs from Coca-Cola and Pepsi-Cola, Kelly said.

"While the eight-ounce cans still have sugar, there's not as much as in a 12-ounce can," Kelly said. "It's almost like a portion-controlled package."

Sales of the eight-ounce six-packs are so swift that K-VA-T has established the packs as an everyday value-priced item at $1.99 each. They also get prime exposure, thanks to creative merchandising displays. Coca-Cola, for instance, offers wooden wing racks to supermarket chains. At K-VA-T, the racks are positioned in the CSD section of the beverage aisle.

K-VA-T is even looking to get into the eight-ounce CSD business itself, as it plans to introduce a private-label, eight-ounce can by the fall. The cans will be branded under its corporate label, Food Club, in cola, citrus and other flavors.

"The eight-ounce cans are a kid-friendly package that moms love," Kelly stressed.

The eight-ounce CSDs are just as popular at Mars Super Markets, Baltimore, according to Maryann Cherry, category buyer.

One of the biggest sellers at Mars is the "Shasta Shortz" brand from the National Beverage Co. Targeted at children, Shasta Shortz are caffeine-free and come in six kid-friendly flavors, including cotton candy and bubble gum. Because the cans are so small, kids can easily put them in a lunch box or backpack, Cherry said.

"Parents feel better serving these to children than other types of soda," said Cherry.

Along with eight-ounce CSDs, bottled water will also make a statement at Mars for this year's BTS season. Next month, the retailer will promote 12-packs of eight-ounce Deer Park water bottles. Mars reported strong sales from other bottled waters as well, including Clear Choice, a naturally flavored sparkling water frequently promoted in ads.

"Out of all the new beverages we've brought in recently, Clear Choice is one of the better ones," said Cherry. "People love getting the carbonation without the sugar."

Kraft's Fruit 20 from Veryfine Products, a Splenda-sweetened spring water, is another solid performer, said Cherry. Positioned as an alternative to soda and other soft drinks, Fruit 20 contains no calories, carbohydrates or sugar.

Bottled water will be in the limelight at other retailers, as it's now the second-largest commercial beverage category in the United States on a volume basis, after soft drinks, according to Beverage Marketing. In 2003, total U.S. category volume reached 6.4 billion gallons, a 7.5% increase over 2002.

Yet despite all the interest in healthier drinks, full-calorie CSDs are still in strong demand and will remain prominent during the BTS season, according to retailers.

"A lot of people still drink regular soda," Cherry of Mars Super Markets stated.

Much of this is because more and more young adults and even children are taking responsibility for and influencing supermarket purchases, according to Pirko of Bevmark.

"Kids are still very resistant to nutritional messages," Pirko said. "They're incredibly carefree and don't care what their mothers think about in terms of health."