October 13, 2006
New Drink from Coke/Nestle Promises to Burn Calories
It is not the first drink on the market that promises to boost your metabolism and burn calories. Enviga
is, however, the first that promises to do the above with the marketing and distribution muscle of Coca-Cola and Nestle behind it.
The new drink, which comes through Beverage Partners Worldwide (a joint venture between Coca-Cola and Nestle), will be marketed as a “negative-calorie” beverage.
Jason Warner, group marketing director for Beverage Partners Worldwide Americas, told Ad Age, “There’s calorie, low-calorie, zero-calorie, and now we offer consumers negative-calorie products.”
According to Rhona Applebaum, chief scientist for Coca-Cola, consumers who drink three cans a day of Enviga will burn a net average of 60 to 100 calories.
The company is looking to tout its new drink without engaging in the marketing excesses of others, said Ms. Applebaum. “When you look on the Internet or made-for-TV statements that are out there, it is concerning to us that we make sure … there isn’t any magic bullet out there.”
“This is not a plan or a diet pill. No magic or exercise replacement,” said Deborah Roberts, senior brand manager for Coca-Cola North America. “This is about the little steps you take every day in order to have a more balanced lifestyle. [It’s for] consumers who think of health and wellness as a lifelong habit as opposed to instant results.”
Enviga, according to its maker, uses a blend of green-tea extracts known as epigallocatechin gallate (EGCG) to boost the metabolism of those who drink it. Beverage Partners Worldwide claims its drink contains twice the EGCG as competitive products such as Celsius, Fuze and Skinny Water.
Beverage Partners Worldwide plans to rollout Enviga on Nov. 6 in New York City, New Jersey and Philadelphia with the national launch coming on Feb. 5.
Single-serve versions in 12-ounce cans of Enviga will retail for $1.29 and initially will come in berry, peach and green tea flavors. The drink will also be available in six-packs and 12-packs for clubs.
Celsius, a calorie-burning drink marketed by Elite FX, also uses EGCG, as well as ginger, vitamins, chromium and calcium. The marketer claims its drink will burn as much as 77 calories in a single serving. The company, like Beverage Partners Worldwide, participated in a double blind, placebo-controlled study before launching its product.
“Our original objective was to bring health and nutrition to the soft-drink category, which we believe is long overdue,” said Steve Haley, president of Elite FX, in a released statement. “Consumers continue to want a refreshing beverage, but they are also demanding functional benefits and a healthier product and Celsius delivers on both fronts.”
Discussion Questions: Are consumers ready for so-called functional beverages such as Enviga and Celsius? Is this (functional foods and beverages) where
health and wellness is headed? What challenges and opportunities will functional foods and beverages pose for retailers selling these products?
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Nutriceuticals are hot items. The promise of “negative calories” is going to be attractive to a lot of people. So there will be trial. Whether people continue to purchase the product on a regular basis depends upon what results they see. On the other hand, there are people who are skeptical of all the claims and are suspicious of long term effects so will not try the product until they determine whether or not it is safe over the long term.
The Enviga people must’ve done some careful market research, because New York is the most expensive market in the country. Usually rollouts are started in inexpensive markets so that they can be refined at moderate cost.
Let’s see…in order to burn off a maximum of 2,100 calories a week, a consumer will have to pay $27.09 and consume an additional 252 ounces of liquid. So, will consumers pay $1,408.68 a year on the chance they might lose weight? No doubt some will, but we’re talking about so few calories per day my guess is most people won’t see results and will move along. On the other hand, they could all take up smoking and drink three cups of coffee a day and have significant weight loss since nicotine and caffeine also stimulate metabolism, as anyone who’s quit smoking can confirm.
I do believe there’s a little Mars-Venus at play here! I can’t tell you how many women I know that jump right on the bus when it comes to any and every product that can make a small difference to their weight. When a diet soda (which runs around $1) bumps up against a good tasting drink that can actually burn calories, my gut is that they are going to do well. Especially given that they are using naturally driven foundations such as green tea, which Oprah and many other are touting as a fantastic antioxidant and metabolism booster.
Many women have to scale down to 1,200 or so calories a day to lose weight. When battling the plateaus of that last 5 pounds, it’s a frustrating process and every little bit helps. No, this product is not for everyone. But for those in that mindset, they’re going to reach for it. Trust me.
I applaud these companies for at least trying to create an alternative beverage based on today’s trends.
Functional and nutriceutical drinks are a hot segment right now. And the soft drink category has been on a slow steady decline for several years, so undoubtedly there’s big pressure on Coca-Cola and Pepsi to get into this area. But, health and nutrition in the soft drink category? Consumers have been turning away from soft drinks in favor of juices, teas, water and alternative beverages as health and fitness become a more important lifestyle component. I can’t see consumers (especially teens/youth who are such a huge part of soft drink volume) embracing Enviga. Calorie reduction is not a hot button for them. So let’s look at women 18-35 who might be more of the target…How many cans does one have to buy to see a real calories burn?? At $1.29 per shot? Interesting math by the Coke folks. Maybe this brand offers some “baby steps” in a health regimen the Coke marketing people were referring to. But will it be a winner? I don’t think so – ultimately consumers looking to watch their weight, be healthy and fit are going to head for the gym and eat a balanced meal, rather than gulp an Enviga.
Put all logic aside; these are emotionally-related items and they could benefit from emotional and psychological marketing. If I were Coca-Cola and Nestle, I would assign my advertising and PR agencies to create a word-of-mouth campaign promoting the special “magic” in the new products’ ability to cause a miraculous healthful weight loss. Otherwise, as Ryan indicated, they are just expensive liquids.
Consumers are always looking for the “magic pill” to good health, so finding consumers that will be interested in these new drinks won’t be hard. However, for them to be successful, it will depend more upon how well they work along with how they taste, and of course; the price.
If consumers are able to combine the need to quench their thirst, or satisfying other needs while promoting their own good health, they’ll want to try these new products. The challenges for retailers will probably focus more on the fight for more shelf space as more and more products are introduced.
We have a couple of refrigerators full of soda, juice, water, etc. here at work. I probably drink two Diet Cokes a day — others suck down a couple of Gatorades, or tea, or whatever a few times a day. If I have a good-tasting drink that knocks 100 calories off my total intake for the day, I’m there. People who switch from sugared drinks might see a 300 calorie swing. When you sit at a desk all day, staying fit is about all the choices you make.
The bottom line is taste, though. If it tastes good, it should find a market.
On the matter of Enviga’s price point, let’s all recall that it proposes to sell for about 1/3 the price of your favorite Starbucks latte. At $1.29 it’s also cheaper, per single-serving container, than Coca Cola Blak, or Red Bull. The real question I’d like to see answered is: how well does it mix with vodka?
I think this is a great way for Coke to get back some of the market share they have lost to other beverages. In this world of immediate gratification, people spend hundreds of dollars on diet pills looking for a painless way to keep their weight under control. If the product tastes decent, I’m sure that it will definitely appeal to its market. If the option is to pick up a bottle of water with zero calories, or something with some flavor that burns calories, it seems like an easy decision to make.
Customers would not calculate annual spending for losing weight while buying a can of Enviga. In my opinion, the product positioning is very strong, well defined and it will surely bring back market share to Coke.
Coke & Nestle should also ensure they don’t get into any health related issues in long run as the product seems to be increasing metabolic activity of the body.
Jeff’s point is right on the mark. You are only burning 60-100 calories by drinking something like this, but if it’s replacing a 150-calorie can of Coke (or, I guess they’d prefer Pepsi!) then it’s a much bigger swing.
Mr. Mathews –
It is about choice and providing an alternative to choose a negative calorie drink over a soda that has roughly 200+ calories, all sugar.
It has already been proven that green tea boosts metabolism and enhances good health with antioxidants; Coke has just put a fun spin on it. Plus, it says the drink is sparkling which makes it intriguing to myself, an avid tea drinker.
I look forward to giving it a try.
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Nutriceuticals are hot items. The promise of “negative calories” is going to be attractive to a lot of people. So there will be trial. Whether people continue to purchase the product on a regular basis depends upon what results they see. On the other hand, there are people who are skeptical of all the claims and are suspicious of long term effects so will not try the product until they determine whether or not it is safe over the long term.
The Enviga people must’ve done some careful market research, because New York is the most expensive market in the country. Usually rollouts are started in inexpensive markets so that they can be refined at moderate cost.
Let’s see…in order to burn off a maximum of 2,100 calories a week, a consumer will have to pay $27.09 and consume an additional 252 ounces of liquid. So, will consumers pay $1,408.68 a year on the chance they might lose weight? No doubt some will, but we’re talking about so few calories per day my guess is most people won’t see results and will move along. On the other hand, they could all take up smoking and drink three cups of coffee a day and have significant weight loss since nicotine and caffeine also stimulate metabolism, as anyone who’s quit smoking can confirm.
I do believe there’s a little Mars-Venus at play here! I can’t tell you how many women I know that jump right on the bus when it comes to any and every product that can make a small difference to their weight. When a diet soda (which runs around $1) bumps up against a good tasting drink that can actually burn calories, my gut is that they are going to do well. Especially given that they are using naturally driven foundations such as green tea, which Oprah and many other are touting as a fantastic antioxidant and metabolism booster.
Many women have to scale down to 1,200 or so calories a day to lose weight. When battling the plateaus of that last 5 pounds, it’s a frustrating process and every little bit helps. No, this product is not for everyone. But for those in that mindset, they’re going to reach for it. Trust me.
I applaud these companies for at least trying to create an alternative beverage based on today’s trends.
Functional and nutriceutical drinks are a hot segment right now. And the soft drink category has been on a slow steady decline for several years, so undoubtedly there’s big pressure on Coca-Cola and Pepsi to get into this area. But, health and nutrition in the soft drink category? Consumers have been turning away from soft drinks in favor of juices, teas, water and alternative beverages as health and fitness become a more important lifestyle component. I can’t see consumers (especially teens/youth who are such a huge part of soft drink volume) embracing Enviga. Calorie reduction is not a hot button for them. So let’s look at women 18-35 who might be more of the target…How many cans does one have to buy to see a real calories burn?? At $1.29 per shot? Interesting math by the Coke folks. Maybe this brand offers some “baby steps” in a health regimen the Coke marketing people were referring to. But will it be a winner? I don’t think so – ultimately consumers looking to watch their weight, be healthy and fit are going to head for the gym and eat a balanced meal, rather than gulp an Enviga.
Put all logic aside; these are emotionally-related items and they could benefit from emotional and psychological marketing. If I were Coca-Cola and Nestle, I would assign my advertising and PR agencies to create a word-of-mouth campaign promoting the special “magic” in the new products’ ability to cause a miraculous healthful weight loss. Otherwise, as Ryan indicated, they are just expensive liquids.
Consumers are always looking for the “magic pill” to good health, so finding consumers that will be interested in these new drinks won’t be hard. However, for them to be successful, it will depend more upon how well they work along with how they taste, and of course; the price.
If consumers are able to combine the need to quench their thirst, or satisfying other needs while promoting their own good health, they’ll want to try these new products. The challenges for retailers will probably focus more on the fight for more shelf space as more and more products are introduced.
We have a couple of refrigerators full of soda, juice, water, etc. here at work. I probably drink two Diet Cokes a day — others suck down a couple of Gatorades, or tea, or whatever a few times a day. If I have a good-tasting drink that knocks 100 calories off my total intake for the day, I’m there. People who switch from sugared drinks might see a 300 calorie swing. When you sit at a desk all day, staying fit is about all the choices you make.
The bottom line is taste, though. If it tastes good, it should find a market.
On the matter of Enviga’s price point, let’s all recall that it proposes to sell for about 1/3 the price of your favorite Starbucks latte. At $1.29 it’s also cheaper, per single-serving container, than Coca Cola Blak, or Red Bull. The real question I’d like to see answered is: how well does it mix with vodka?
I think this is a great way for Coke to get back some of the market share they have lost to other beverages. In this world of immediate gratification, people spend hundreds of dollars on diet pills looking for a painless way to keep their weight under control. If the product tastes decent, I’m sure that it will definitely appeal to its market. If the option is to pick up a bottle of water with zero calories, or something with some flavor that burns calories, it seems like an easy decision to make.
Customers would not calculate annual spending for losing weight while buying a can of Enviga. In my opinion, the product positioning is very strong, well defined and it will surely bring back market share to Coke.
Coke & Nestle should also ensure they don’t get into any health related issues in long run as the product seems to be increasing metabolic activity of the body.
Jeff’s point is right on the mark. You are only burning 60-100 calories by drinking something like this, but if it’s replacing a 150-calorie can of Coke (or, I guess they’d prefer Pepsi!) then it’s a much bigger swing.
Mr. Mathews –
It is about choice and providing an alternative to choose a negative calorie drink over a soda that has roughly 200+ calories, all sugar.
It has already been proven that green tea boosts metabolism and enhances good health with antioxidants; Coke has just put a fun spin on it. Plus, it says the drink is sparkling which makes it intriguing to myself, an avid tea drinker.
I look forward to giving it a try.