Subtracting Sugar
Aug 27, 2007 12:00 PM, By LIZ PARKS
Flavored and fortified waters and watered-down juices are providing lower-sugar options for parents — and additional sales for retailers
Healthier versions of beverages geared toward little ones are finding their way up tiny straws this back-to-school season. But that's not all that's being drawn.
Retailers are reporting a rise in incremental sales amid a steady flow of new products.
“We're seeing more and more launches of flavored water drinks and reduced-sugar beverages,” said Tom Vierhile, director of Naples, N.Y.-based Datamonitor's Productscan Online. “It's partially because schools are cutting back on calorie-laden drinks with high sugar content, and partly because parents are looking for healthy beverage alternatives for their kids.”
During the first half of 2007, 146 new kids-focused beverages were launched, he said. That's on top of 349 in 2006.
The hottest kid drink trends involve water.
Drink boxes, pouches and bottles of water are being flavored and/or fortified. Similarly, kids' juices are being diluted with water.
“Juices are more nutritional than soft drinks, but the problem with regular juice is that the body processes sugar as sugar, and it doesn't care if it is in the form of a soft drink or a fruit juice,” noted Vierhile.
Plastic straws filled with flavored powders that can be added to a bottle of water or a carton of milk are also gaining in popularity, and consequently revitalizing the powdered-drink market.
“These sticks have been the innovation that has turned this category around dramatically,” Vierhile said.
Merchandising strategies for healthy kids' beverages vary. Some retailers are displaying brands in their specialty food departments, while others opt for the more heavily traveled beverage aisle.
Whole Foods Market is placing purified water and flavored-water beverages, like those marketed by Wateroos-brand drink boxes, in its water aisles.
Healthy kids' juices, on the other hand, are segregated to a kids' juice area in the juice aisles.
A six-pack of Wateroos sells for $2.79 at Whole Foods, while an eight-pack of Honest Tea's Honest Kids line of organic, low-sugar, fruit-flavored pouch drinks in Tropical Tango Punch, Berry Berry Good Lemonade and Goodness Grape flavors retails for $4.99.
“They're selling very well,” said an East Coast Whole Foods store manager.
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