Cleanmood Gets Off the Ground with Kowa Launch
New beverage startup Kowa has teamed with ingredient maker Nura to feature its branded organic 5-HTP supplement in its line of mood-boosting functional drinks.
As reported last July, the ingredient maker developed CLEANMOOD to be an organic, sustainably sourced form of 5-HTP (5-Hydroxytryptophan), a naturally occurring amino acid that can boost a range of “positive” neural activity, including increasing serotonin, melatonin, dopamine and norepinephrine. Utah-based Kowa’s three-SKU line of zero-sugar sparkling drinks, called Mood Boost, will be the first ready-to-drink product to feature a “Powered by CLEANMOOD” call out on its back label.
The brand has a deep personal connection for co-founder Madison Hauver, who stepped into the project following a roughly two-year stint as Chief Operating Officer and board member at sweetener company Lakanto. Amid a stressful period in her life, compounded by the COVID-19 pandemic in 2020, Hauver initially looked to create a hemp-based beverage that could help consumers relieve stress. When distribution challenges proved too much, she began working with Nura and looking more closely at specific chemical interactions to “reduce some of the negative stressful chemicals, like cortisol, and boosting the positive ones, like serotonin.”
Over the course of a deep dive into nearly 100 different functional additives, the company narrowed its focus down to four hero ingredients: the aforementioned 5-HTP (100mg), plus ashwagandha (200mg), rhodiola rosea (75mg) and gaba (300mg).
“Our main approach was choosing ingredients that we didn’t need to go out and verify because they had already been verified but the community,” Hauver said. “People are using them on a daily basis. We’re taking things that are well understood and researched, and figuring out what are the doses needed to have a meaningful impact.
Despite that, Hauver emphasized that Kowa isn’t designed to be part of a strict regimen or diet; at just 10 calories and naturally sweetened with stevia, the product is meant to provide a caffeine-free lift that can easily swap into energy drink occasions.
“The biggest reason we have a supplements facts panel on our beverage as opposed to nutrition is we wanted people to understand that if you’re going to go out and look at what the normal dosages are for one of these ingredients, you’re going to find that it’s reflected at that same or even more generously with what we’ve included,” said Hauvner.
Kowa’s launch sheds further light on the emerging new category of anti-anxiety/mental health drinks, and in particular how brands in that space are showcasing their individual hero ingredients. Rising independents like Recess, Vybes, Leilo and Kin have embraced hemp, adaptogens and other functional ingredients to power their respective products’ mood-boosting attributes, but large conglomerates like Molson Coors (Veryvell) and PepsiCo (Soulboost, Rockstar Unplugged) are also stepping into the mix now.
As such, Kowa is taking a targeted approach, starting with launching on Amazon and targeting natural retailers where it can reach “open-minded” consumers who are somewhat familiar with the ingredients.
“Our goal is to try and get meaningful traction with a decent gross margin in the natural channels, and we are talking with and working with brokers right now,” Hauver said in February. “We’ve got about 30 locations right now that have committed to purchase from us in just the last two weeks. So the traction has been good so far.”
Tate & Lyle Acquires Chinese Fiber Producer for $237M
U.K.-based ingredients manufacturer Tate & Lyle announced last week that it has signed an agreement to acquire Chinese fiber producer Quantum Hi-Tech Biological Co., Ltd for $237 million.
The acquisition will serve to support Tate & Lyle’s position as a “global player in [the] fast-growing global dietary fibres market,” the company said in a press release, and comes as prebiotic food and drink innovations have emerged in the U.S. market. Quantum will also provide Tate & Lyle with R&D expertise and proprietary manufacturing processes, expand the company’s operations and customer base in Asia, and is expected to drive revenue growth and EBITDA margin within a year of closing the deal. The acquisition will likely be completed by the end of Q2.
According to the release, Quantum reported $46 million in revenue in the 11 month period ending November 20, 2021. The transaction is subject to approval by the shareholders of Quantum’s parent company ChemPartner. At completion, consideration will be paid in cash for 100% of the equity interests in Quantum.
“This acquisition significantly strengthens our fortification capabilities and expands our customer offering in key food and drink categories,” Tate & Lyle CEO Nick Hampton said in the release. “FOS and GOS are highly complementary to our existing fibre portfolio and will enable us to offer a broader range of solutions to our customers. The acquisition is also very much in line with our purpose to support healthy living by improving gut health, and driving sugar and calorie reduction and fibre fortification for consumers across the world.”
Kerry Acquires Botanical Extract Co.
Ireland-based nutrition company Kerry Group announced last week that it has acquired American Ayurvedic botanical ingredient producer Natreon, Inc., expanding its portfolio of functional ingredients. Terms of the deal were not disclosed.
“Consumers are increasingly looking for nutritional benefits when purchasing food and drink, with recent proprietary consumer research from Kerry stating that 42% of U.S. consumers are more likely to purchase a product which is backed by research or scientific data,” Gerry Behan, president and CEO Taste & Nutrition at Kerry Group, said in a press release. “Ayurveda is one of the world’s oldest holistic and alternative wellness practices with historical roots in India. Today, we see growing use of ayurvedic and botanical ingredients which are trending in functional foods and beverages for their ability to deliver stress, cognitive, and energy benefits, for example. Our acquisition of Natreon allows us to participate in this dynamic market with on-trend and science-backed Ayurvedic ingredients, including the well-known Sensoril Ashwagandha brand.”
Natreon’s branded ingredients will be folded into Kerry’s ProActive Health portfolio. The New Jersey-based company’s products include ashwagandha extract Sensoril, shilajit extract PrimaVie, amla extract Capros, chromium complex Corminex, and terminalia chebula extracts Ayuflex and Ayuric.
Natreon has 34 employees across three facilities, including a head office in New Brunswick, an R&D facility in India and a manufacturing site in Nepal.
“This acquisition will allow us to deliver health benefits substantiated by clinical research to a greater number of consumers, ultimately supporting our ambition to reach over two billion people with sustainable nutrition solutions by 2030,” Behan said. “We are delighted to welcome the Natreon team to Kerry.”
Kerry Acquires Ayurvedic Extract Maker Natreon
Ireland-based nutrition company Kerry Group announced last week that it has acquired American Ayurvedic botanical ingredient producer Natreon, Inc., expanding its portfolio of functional ingredients. Terms of the deal were not disclosed.
“Consumers are increasingly looking for nutritional benefits when purchasing food and drink, with recent proprietary consumer research from Kerry stating that 42% of U.S. consumers are more likely to purchase a product which is backed by research or scientific data,” Gerry Behan, president and CEO Taste & Nutrition at Kerry Group, said in a press release. “Ayurveda is one of the world’s oldest holistic and alternative wellness practices with historical roots in India. Today, we see growing use of ayurvedic and botanical ingredients which are trending in functional foods and beverages for their ability to deliver stress, cognitive, and energy benefits, for example. Our acquisition of Natreon allows us to participate in this dynamic market with on-trend and science-backed Ayurvedic ingredients, including the well-known Sensoril Ashwagandha brand.”
Natreon’s branded ingredients will be folded into Kerry’s ProActive Health portfolio. The New Jersey-based company’s products include ashwagandha extract Sensoril, shilajit extract PrimaVie, amla extract Capros, chromium complex Corminex, and terminalia chebula extracts Ayuflex and Ayuric.
Natreon has 34 employees across three facilities, including a head office in New Brunswick, an R&D facility in India and a manufacturing site in Nepal.
“This acquisition will allow us to deliver health benefits substantiated by clinical research to a greater number of consumers, ultimately supporting our ambition to reach over two billion people with sustainable nutrition solutions by 2030,” Behan said. “We are delighted to welcome the Natreon team to Kerry.”
Sweegen Signature Stevia Approved in Colombia
Sweegen’s Signature stevia sweetener is going deeper in Latin America after Colombia approved the ingredient, the company announced this week.
The Signature product is made by bioconversion, a method to produce non-GMO ingredients, and the company’s rebaudiosides E sweetener joins the previously approved D and M molecules in the South American country.
“Latin America is one of our most important markets globally,” said Luca Giannone, Sweegen SVP of global sales, in a press release. “The continuous development of our Signature sweeteners and sweetener system demonstrates our commitment to investing in new technologies for helping brands tackle sugar reduction challenges and replace sugar in better-for-you food and beverages in Colombia.”
According to the company, the approval comes as Colombia has placed more emphasis on nutrition amid rising obesity levels. There’s also a market incentive for Sweegen to expand its South American presence: across the continent 52% of consumers say they are looking to reduce their sugar intake from soft drinks, according to FMCG Gurus 2021.
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