Tetra Pak Ltd 1 Longwalk Road Stockley Park Uxbridge Middlesex UB11 1DL Tel: 0870 442 6000 Fax: 0870 442 6001 Website: www.tetrapak.com Key CONTACTS Managing director Mike Ansell Director, soft drinks Neil Matthews Marketing manager, soft drinks Susan Frame Health has risen to the top of the agenda against a background of consumer fears about the safety of food and drink, and an unwillingness to accept the reassurances of government, scientists and manufacturers. A knock on effect has been the sudden explosion in the organic product market. In autumn 1999 Tesco introduced two organic juices, packaged in Tetra Rex cartons for the chiller cabinet and Tetra Brik Aseptic Slim ReCap cartons for the ambient sector. By October this year it had hugely expanded its organic juice and juice drinks offer to a 13-pack range. According to research company Zenith International, the market for organic juice will grow by 280% by 2003, and to support this expansion, the Soil Association, in partnership with Tetra Pak, organised a first national conference for organic food processors entitled Maintaining Quality in a Growing Market at Olympia in October. Consumer concerns about health also extend to the functional soft drinks sector, which now accounts for 4% of the total soft drinks market, excluding water. Nutraceuticals are growing faster than vitamin or mineral enriched drinks or sports and energy drinks, with volume up tenfold since 1995 and projections of a further 250% increase by 2004, according to Zenith. Functional foods are a growing sector, not just in the UK but worldwide, and to support its customers Tetra Pak has established a global centre of expertise to supply a range of services, including product formulation and technical support, for companies wanting to expand into this rapidly growing sector. Water water everywhere Meanwhile, consumer concerns about the safety of tap water, exacerbated by press reports of pollution, is also playing a part in increasing the market for bottled drinking water. Bottled water consumption has grown to over 1bn litres with recent innovations, such as the sports cap, increasing convenience and widening its appeal to a younger audience. Flow of ideas Tetra Pak is a leading supplier of preforms and filling machines to leading UK bottled water suppliers like Highland Spring. Individual bottle designs to give shelf distinctiveness and specialised openings are a significant part of Tetra Pak's PET offering to soft drink producers. The company is closely involved in innovation elsewhere in the market. Cranberry has achieved remarkable results, while a recent new entrant is Ginger Moods, which launched the first of a planned series of drinks flavoured with ginger last month. The range is designed to appeal both to the elderly and ethnic sectors. In addition, a stream of new developments is expected to come from the Product Development Centre in Reaseheath, Cheshire, where a machine for filling into the attractive Tetra Prisma Aseptic 250ml carton has been installed. Tetra Pak to go! As our lives become more and more hectic, convenience and availability determine the types of food and drink we consume. The increase in grazing and snacking has opened up new opportunities for manufacturers. In July, for example, Marks & Spencer launched four new juice/juice drinks under their Food To Go label, packaged in easy-to-hold Tetra Brik Aseptic Slim 250ml cartons fitted with straws. Changing lifestyles have also resulted in consumers looking for healthy products to balance their otherwise unhealthy diets. The government recently launched a Five-a-Day campaign to encourage the consumption of five pieces of fruit or vegetables every day as a protection against cancer and heart disease in later life. In the USA, where Five-A-Day started, it is fully accepted that consumption of fruit juice gives the same benefits to the body as consumption of whole fruit. Perhaps the soft drinks industry should be bringing that to the attention of the government. {{Z SUPPLEMENTS }}