-By James Mellgren

If you are a person of a certain age, you may remember a time when beverages were consumed simply because one was thirsty. Water, milk, occasionally juice were the most common means of slaking one’s thirst and when the throat was no longer parched, little more was thought of it until one was thirsty again. My, how times have changed. Today, the thirsty consumer has before them a seemingly endless array of beverages from which to choose. And thirst, heretofore the great instigator of putting liquid to one’s lips, is no longer necessarily even a factor. Other considerations are far more relevant than mere dryness of the throat. For example, there are antioxidants to consider, as well as vitamins, minerals, various botanicals that can calm you down, rev you up, elevate your mood, soothe a variety of ailments, or even cure the common cold. All of the above are to be found today in waters, juices, teas, various herbal concoctions, soft drinks, and even milk. Of course, people thirst for alcohol too, but here again, thirst is more metaphor than malady, and despite reduced calories and carbohydrates, alleviated tension, and even the antioxidants present in wine, no one is yet marketing functional booze. Alcohol aside, the specialty beverage selection available today, as anyone who regularly attends the trade shows knows, is the fastest growing segment of our industry. With that being said, we’ll take a look at this highly competitive and lucrative market in an attempt to slake the thirst for profits.

Water, Water, Everywhere

The controversy over bottled water rages on. One camp decries the unnecessary carbon footprint associated with bottled water. In other words, they believe the fuel it takes to ship water around the world, coupled with the environmental impact of millions of plastic bottles thrown away each day make the very idea of using bottled water unacceptable. Furthermore, bottled water detractors deride the dubious sources for many of the brands available today. Rather than the pristine babbling brooks that grace the labels, many brands are nothing more than filtered municipal drinking water. There is nothing particularly wrong with that idea except why pay for what you can draw from your tap for free? For those on the other side of the debate, those who simply don’t like the taste of tap water (depending on where you live, the water can be too hard or too soft, or have other taste characteristics that can be off-putting), or don’t trust their municipal sources or even the old pipes in their own plumbing system at home, bottled water is indispensible. They argue too that there are efficient recycling options available to handle all those plastic bottles, and indeed, many wonderful things are made from them, including roads, implements, and even other plastic receptacles. In fairness to those who argue in favor of bottled water as a way of life, the category of functional waters -- from antioxidants to memory enhancers -- place the whole debate in a new and more complicated light.

Whatever one’s reasons are for consuming bottled water, and despite the controversy that continues unabated, sales of bottled water grew 55.4% from 2006 to 2007, according to Mintel Reports. That figure covers a broad range of sales outlets, including convenience stores, supermarkets, delis, specialty stores, and so on. It is also the one beverage category in our research in which organic plays virtually no part (except, of course, organic ingredients that may be added to the water). In fact, it would seem that water is one of the only categories throughout the store for which there is no organic alternative. Don’t despair though dear reader, for doubtless somewhere there is a marketing genius trying to figure out a way to produce certified organic water!

Liquid Fruit

Probably the biggest beverage category of all is that of juice drinks, either refrigerated or shelf-stable. The organic juice market is a $97.8 million business in the United States, and one that has seen significant growth over the past half dozen years or so. In modern times, juice has been a fixture in the diets of millions of Americans, but it has evolved in the past few years to become the de facto thirst quencher, meal accompanier, and all around pacifier of thirsty children. Who would have ever thought that fruit juice would be implicated in the disturbing growth of childhood obesity. Now, of course, no one would criticize juice as not being healthful. Most fruit juices, especially if they are fresh squeezed (even if they are packaged) and preferably organic, contain all sorts of vitamins, minerals, antioxidants, and other life-sustaining, energy-inducing components that make it something everyone should avail themselves of everyday. When it becomes the default beverage throughout the day, however, is when nutritionists become concerned. Fruit juice, after all, contains lots of sugar, natural sugar to be sure, but sugar nonetheless. Numerous studies have shown that excessive sugar intake -- whether it’s from fruit juice or Coca-Cola -- can lead to weight gain, especially if the child in question is not as active as they should be. In other words, highly sweetened juices (or soft drinks) coupled with little or no physical activity equals an overweight or obese child, as well as the increased possibility of diabetes and other health problems, problems that can get much worse as that child grows up.

On a more positive note, when consumed in moderation as part of an otherwise healthy lifestyle, one that includes good food and plenty of exercise, juice is a wonderful addition to one’s regime, particularly organic juice. According to the Nielsen Company, sales of organic juice and other refrigerated drinks rose 44% in 2007, with shelf-stable organic juices rising 34.5%. Even organic frozen juice sales rose 16.3%, and the category of organic juice as a whole rose 36.8%.

The Nielsen report also indicates that although organic beverages in general experienced rapid growth through 2006 (up 24.3% from the end of 2005 to the end of 2006), the market tapered off in 2007. The experts at Nielsen believe, however, that this plateau has more to do with the increase in private label products -- details of which the research doesn’t include -- than with an actual slowdown in organic sales.

Time for Tea

Tea sales have been growing apace for several years. Until recently, however, this growth had more to do with tea drinkers upgrading their selections as opposed to new tea drinkers coming into the fold. Lately, as reports of tea’s healthful properties have become more widely known, and as ready-to-drink (RTD) teas have become more popular, infused as they are with all manner of exotic herbs, spices, flowers, and fruit, sales of tea in general have risen dramatically. In fact, according to research by Mintel International Group Limited, tea and RTD tea (excluding Wal-Mart sales) grew 48% from 2001 to 2006, or 29% with consideration of inflation. The results are sales in excess of $3 billion. Mintel estimates that tea sales from Wal-Mart would add another $400 million to that figure. Health, exotic flavors, and convenience have all contributed to this huge surge of tea sales in recent years. It is also estimated that U.S. tea sales will continue to increase at an annual rate of 6.7% from 2007 through 2012, the bulk of those figures coming from the largest segment of the tea world -- RTD canned and bottled tea.

Manufacturers have to be careful when making health claims for their products, even though a great deal of research has shown tea, and particularly green tea to be an extremely potent and healthful elixir, with proven results in the following areas of human health:

• Cardiovascular health
• Gastrointestinal health
• Bone health
• Oral health
• The ability to ward off many types of deadly cancers.

Careful not to overstate the remedial benefits of drinking tea, manufacturers nevertheless use their labels to claim what they can, the top five leading claims being organic, all-natural, kosher, premium, and the absence of additives or preservatives in their product.

Manufacturers and marketers continually push for more convenient ways in which to offer RTD tea drinks to consumers. Convenience is one of the most sought-after features of almost any food or drink these days as busy, on-the-go lifestyles increasing become more commonplace.

If you would like to comment or send us your feedback, please send e-mail to mellgren56@gmail.com