Surprise Hits: Vitaminwater and the promise of Zen-like bliss
Filed under: Company News, Columns
A decade or two ago, the idea of drinking "vitamin water" would have conjured up thoughts of swallowing a metallic-tasting dietetic -- essentially, drinking your vegetables. That's a far cry from being a soft drink refreshing enough to appeal to athletes and hip enough for a rap star to endorse. Or successful enough for the Coca-Cola Co. (KO) to purchase the start-up that invented it for more than $4 billion.
Therein lies the astonishing success of Glacéau (a.k.a. Energy Brands), a company founded in 1996 by J. Darius Bikoff in Queens, New York. Bikoff began by selling an electrolyte-enhanced bottled water called Smartwater. Two years later, he introduced Fruitwater. But it wasn't until he launched Vitaminwater in 2000 that his enterprise really took off. Glacéau promptly became the best-selling brand of enhanced water in the U.S. By 2006, its revenue had reached a reported $355 million, and a year later Coca-Cola, seeking a larger stake in the noncarbonated-energy-drink segment, bought the company and announced that Glacéau would operate as an independent subsidiary.
Vitaminwater's popularity prompted a category full of imitators. After PepsiCo (PEP) introduced its SoBe line of Life Water, Glacéau filed suit, claiming infringement of its packaging (or "trade dress"). As part of a settlement, PepsiCo agreed to change Life Water's packaging, although not its name.
Now Glacéau faces another challenge: a class-action lawsuit alleging that the marketing of its drinks as healthful alternatives to soda is deceptive and violates FDA rules. The activist group Center for Science in the Public Interest, which brought the case, argues that the 33 grams of sugar -- two heaping tablespoons -- in a 20-ounce bottle of Vitaminwater do more to promote obesity and diabetes than they do to improve health. It isn't the only health-based attack on Glacéau; nutritionists at New York University have pointed out that most Americans are not vitamin-deficient, and that many vitamins are not water-soluble, so consumers won't retain them after ingesting them from a fortified beverage like Vitaminwater.
The case is pending in U.S. District Court of the Northern District of California. But win or lose, Bikoff and his marketing team are sure to remain the envy of entrepreneurs the world over. What's next? Intelligence shampoo?
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Reader Comments (Page 1 of 1)
7-01-2009 @ 3:07PM
Marie Spano said...
I provide nutrition counseling for people of all walks of life, and I even run their diets through a through dietary analysis program (Food Processor) and one consistent finding is that people forget to take their multivitamin mineral supplements and no one eats a perfect diet.
Many Americans are vitamin deficient and crafting a diet that perfectly delivers all of the vitamins and minerals we need without functional foods like vitaminwater or supplements is nearly impossible ( http://www.washingtonpost.com/wp-dyn/content/article/2009/04/13/AR2009041301840.html). In fact, I recently did this exercise identified female college student athletes who were deficient in several B vitamins, pro athletes with low levels of various nutrients (tests by Spectracell) and a plethora of people who walk around in a state of mild to moderate dehydration.
That said, I additionally provide nutrition counseling for glacéau because I strongly support nutrient enhanced products, like vitaminwater, as I believe it can help facilitate a healthier lifestyle. If you can hydrate and make up for a lack of micronutrient intake at the same time, then you’re doing your body a favor.
And, additionally (your article references: “that many vitamins are not water-soluble, so consumers won't retain them after ingesting them from a fortified beverage like Vitaminwater.”), a recent study published by the International Journal of Food Sciences and Nutrition compared the absorption of vitamins C, B6, and B12 from vitaminwater in comparison to the same vitamins from a standardized mixed meal. The study found that the vitamins were absorbed equally as well as in food, which indicates that these vitamins are absorbed and can contribute to overall human health. Note, only vitamins A, D, E and K are fat soluble and the rest are water soluble.
Sincerely,
Marie Spano, MS, RD, FISSN, CSCS
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