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THE BEVERAGE GUIDE FROM PAGE 35 with many consumers still working from home occasionally, as very few have returned to a full five days a week in the office, this bodes well for retail coffee, although at the expense of the on- premise coffee businesses. Category fact: A 500ml serve of iced coffee made with full cream milk contains 74 per cent of recommended daily calcium and 36 per cent of recommended daily protein. Fruit juice and drinks For years, sales of juice have been impacted by beverage consumers’ ever- changing needs, with diet and nutrition trends evolving and the perception of juice as a kids’ drink enduring. Despite the criticism, the fruit juice and drink category has performed well and delivered growth. A consideration for this strong performance could be consumers seeking vitamin-rich food and drink options with a long shelf life to ride out lockdowns. It seems fruit juice and drinks have been given a second chance to appeal to health-conscious shoppers. Category fact: The Australian Dietary Guidelines state that an occasional 125ml glass of fruit juice with no added sugar is equivalent to one serve of fruit. Kombucha It seems that the shine is starting to vanish on the long-lasting kombucha trend. Starting as early as 2015, the fermented tea product making numerous claims about links to gut health was unable to grow even over a very good year for beverages. However, it may not be over for all kombucha products as those offering targeted release or encased probiotics are delivering growth as consumers want to ensure the optimal efficacy and benefits, meaning that the probiotics survive the stomach and make it to the gut. Looking at brand performance, there is movement towards kombucha products that provide the greatest chance for the probiotics to reach drinkers’ intestines and colon. Targeted release or encased probiotics are available in Perkii and Nexba, which are in value growth of 130 per cent and 316 per cent respectively, although from very small bases. Category fact: Kombucha contains phytochemicals or phytonutrients that have antimicrobial and antioxidant properties. Protein Consumers continue to seek protein from products across food and drink categories, and functional beverages that emphasise high protein content along with other benefits continue to grow. The popularity of drinks with added protein stems in part from the fact that protein is closely linked to weight management, primarily due to its satiating qualities. Protein is a key ingredient in beverages marketed as meal replacement drinks, which appeal to busy consumers when on the go. Category fact: It’s widely suggested that older adults consume 1-1.5g of protein/kg of body weight to prevent age related sarcopenia. Emerging trends and current threats Trend: functional beverages The growth of functional drinks is driven by busy consumers, primarily younger adults and parents, seeking shortcuts to enhanced health. This has been significantly accelerated by the pandemic. A niche but growing group of consumers consider food as medicine, consuming products they perceive as offering a distinctive health benefit. Given the nature of the coronavirus, we can expect greater consumer adoption of functional beverages and more innovation in this exciting space. While brands should stay on the pulse of the needs of this audience, opportunities remain to reach older adults with products that support the healthy ageing process. The pandemic presents brands with new opportunities and threats. Products that provide immunity support and stress relief will thrive. Functional products appear in all categories from water to dairy through to drinking vinegars. Threat: sugar The war on sugar continues and will still plague the beverage category, especially when we establish a new normal and our health and wellness aspirations are no linger on pandemic pause. Many adults are avoiding excess sugar in their foods and beverages. Many consumers are trying to consume less sugar as it continues to garner negative media attention. Additionally, this continued avoidance of sugar is leading to growth in popularity of functional waters, and brands with higher sugar and calorie content may need to adapt their formulations to compete. Trend: adaptogens While only a niche audience is currently seeking adaptogens and nootropics in its functional drinks, this is very likely to change as more consumers become familiar with these terms and the potential benefits offered. Adaptogens are generally referred to as botanical substances that can help the body restore balance and cope with physical or mental stress. Within this niche group of products, leading adaptogenic ingredients include holy basil, ashwagandha, maca, ginseng and certain medicinal mushrooms, such as chaga. Sources: IRI Panel Data MAT ending 3/1/21 australianbeverages.org sciencedirect.com Kombucha category value: $54m Value decline: 9.9% Share of total bev: 0.9% Coffee category value: $891m Value growth: 18.3% Share of total bev: 14% Protein drinks: $16m Value decline: 19% Share of total bev: 0.3% Fruit juice & drink value: $615m Value growth: 7.8% Share of total bev: 9.7% About Justin Nel Justin Nel is a Lead Consultant at IRI, specialising in the food and grocery sector. His focus is aligning clients’ business objectives with relevant insights and information, using IRI services to deliver unique strategic views of consumer trends and products that will deliver growth. About IRI IRI is the leading provider of big data, predictive analytics and forward-looking insights for the FMCG industry. For more information, visit iriworldwide.com. 36 RETAIL WORLD JUN, 2021