beverages

Snapple Pulling Out Stops For Product Overhaul

Snapple bottle-All Natural Dr Pepper's Snapple brand is doing the biggest overhaul of its look and formula in its 37-year history and backing the changes with its biggest media buy and ad push to date.

The company, which says it is making "The Best Stuff on Earth Even Better," is reformulating its entire lineup of drinks to have up to 20% fewer calories, while using pure sugar for sweetener versus corn syrup--and wrapping it all in new packaging that spotlights the green and black tea leaves that are part of the brand's tea line.

"This is the biggest thing we have done on the brand since inception," says Bryan Mazur, VP of marketing for Snapple. "Basically, it recognizes the fact that over the years, while consumers have enjoyed Snapple's quirky personality, they did not realize that we are all natural and made of the best."

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He says that while the company is doing a soft conversion now, introducing the products at retail slowly, Snapple will back it with its heaviest media buy yet--starting in May and running through the summer with national and local network and cable, online media and major sampling programs.

The change makes sense, given consumer trends. In a new report on how Americans are changing their non-alcoholic drinking habits, research firm Mintel says they are abandoning artificial or processed ingredients like high-fructose corn syrup, artificial sweeteners, and additives and preservatives. Mintel finds that some 16% of all non-alcoholic beverage purchasing adults ages 18 and over say that compared to two years ago, they are more of the opinion that high-fructose corn syrup poses a risk.

Mintel expects that as consumers move away from artificial ingredients, "naturally sweetened" would become a differentiating factor in beverages and one that consumers would not mind paying more for.

Pepsi-Cola, for example, is extending its "Refresh Everything" campaign, with three new products that offer retrospective alternatives to corn syrup. Pepsi Natural, Pepsi Throwback and Mountain Dew Throwback, all sweetened with natural sugar, will be hitting the beverage aisle this March and April.

Pepsi says the new Pepsi Natural drink is made with lightly sparkling water, natural sugar, natural caramel and kola nut extract. The company is rolling out the drink in test markets in Chicago, Cleveland, Pittsburgh, Los Angeles, San Diego, San Francisco, Seattle, Portland, Las Vegas and New York.

The Throwback SKUs are intended to be nostalgic versions of the sodas, also eschewing corn syrup for natural sugar in a retro-look package. Pepsi Throwback and Mountain Dew Throwback will be available nationally for eight weeks only, beginning April 20.

Mintel also reports that consumers--aware of the link between sugar and waistlines--have left highly sugared beverages in droves. The firm says some 20% of all beverage purchasing adults ages 18 and over report that compared to the last two years, they are drinking more low- or no-calorie beverages to manage their weight, and nearly 19% of all adults ages 18 and over report that in the past two years they have been successful in decreasing empty calorie intake from sugared beverages.

Some 16% of all bottled water drinkers say that they have moved to drinking enhanced water instead of fruit juice and juice drinks in the past two years to better manage their weight.

The firm says in the last five years, the soda segment lost 15.6 million consumers ages 18 and over, while the diet soda segment only added half as many or 7.8 million adult consumers.

According to Mintel's findings, 34% of all adults who purchase beverages have started drinking more water and less carbonated beverages to manage their weight or other health conditions such as diabetes, compared to 2006.

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