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Innovation Jan-Feb 2008 > Case Study
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Case Study 003: Ethnic Flavor Trends

By Markus Eckert and Paul Riker

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It’s a Health Thing


In addition to relying on ethnic populations to propel new flavors into the mainstream, beverage companies are discovering that many ethnic flavors and ingredients lend themselves to existing consumer trends. In October, Coca-Cola announced the opening of the Coca-Cola Research Center for Chinese Medicine in Beijing, a move the company called “an important step in strengthening our innovation pipeline for beverages that contribute to well-being.” This announcement is part of the larger trend of companies looking beyond American borders to foster healthy/functional beverage innovation in the United States. Today, the most well-known manifestations of this trend are energy drinks, bottled teas and juices, several of which have borrowed a page from the book of ancient herbal medicine, incorporating ingredients like ginseng and guaraná.

It seems the road to health may be paved with ethnic fruits, vegetables and plant extracts. The functional properties of these ingredients are taking center stage in terms of health and wellness, and many of them work extremely well in beverage formulation. The often-touted benefits of antioxidant-rich “superfruits” like açai and goji berry include lower cholesterol and increased energy. Phytochemicals and sterols, naturally occurring chemical compounds in fruits and vegetables, are the latest ingredients to be thrust into the spotlight. Tea, a beverage high in phytochemicals, has grown in popularity in the United States largely based on increased awareness of its health benefits. While tea has been popular in Asia and parts of Europe for centuries, the market has just recently established itself in America, growing from a $1.8 billion industry in 1990 to $6.5 billion in 2006.

The latest health and wellness trend gaining steam also has foreign origins. Ayurveda, an ancient system of healthcare rooted largely in herbal medicine and native to India, has begun to take hold in the United States. In Western culture, Ayurveda has recently inspired personal care items such as lotions, soaps and balms. American beverage companies, however, are anxious to capitalize on the health attributes of the herbs, fruits and vegetables common in the Ayurvedic lifestyle and are exploring this trend.

Java From Jamaica and Tempranillo

With My Tapas, Please…

Another established market trend propelling the growth of the ethnic beverage market is the demand for authenticity. While authentic products give ethnic populations a sense of comfort, non-ethnic consumers may seek authenticity because it gives the feeling of sophistication. Perhaps tied to increased exposure to new experiences and cultures, evidence of this trend can be seen in several areas. Coffee and coffee-flavored beverages, for example, are being touted not only for their origin, but for ethnic-inspired flavors like dulce de leche, canela (Mexican cinnamon) and spiced chocolate. Recently, these types of indulgent, often creamy coffee beverages have been making their way from the barista to the grocer and are appealing to non-ethnic consumers who equate exotic, imported ingredients with quality and elegance.

The same marketing principle applies to alcoholic beverages of the ethnic variety. While many of the ethnic beverage trends mentioned stand alone, for others, their popularity depends on a pairing with the appropriate ethnic cuisine. The rise of sake, a Japanese liquor made from rice, has been in step with the rise in popularity of Japanese food. The mojito, on the other hand, is going the way of the margarita; once a cocktail whose popularity relied on that of Hispanic cuisine, it is now a mainstream drink often enjoyed apart from its traditional fare. The variety of international wines now available to the consumer is another element perpetuating the trend of ethnic food and beverage pairings.

By making it easier for consumers to pair a cocktail with a certain ethnic cuisine, or encouraging them to associate their favorite coffee with the region of the bean, beverage marketers make the consumer feel cultured and sophisticated and meet the demand for an authentic product.

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