-By Bridget Goldschmidt

There’s been a definite shift in how America's kids are quenching their thirst, and trends indicate that they'll be taking those new habits -- and beverage products -- back to school with them.

New York-based market research firm Packaged Facts foresees strong growth ahead for the children's beverage segment, expecting it to reach $5.8 billion by 2012. This reflects the industry's rush to offer more items with a healthy slant.

As beverages with nutritional benefits gain traction, and bottled water brands and functional beverages aimed specifically at kids grow into robust performers, some sugary, carbonated drinks traditionally favored by children are seeing soft sales, according to a recent report from the firm.

"Driven by the trend toward more wholesome ingredients and products, benefits such as pure, real, organic, no artificial color, and no preservatives have been appearing on more new kids' beverages," notes Packaged Facts.

Better nutrition in a pouch

The firm's report further notes that single-serve and smaller containers are continuing to grow in popularity as demand for convenience, portion control, and healthier consumption rises.

One manufacturer that's tuned into these trends is Northfield, Ill.-based Kraft Foods, whose Capri Sun juice drink, which the company describes as the No. 1 pouch beverage  among 6- to 12-year-olds, as well as the No. 1 lunchbox beverage carried from home, now features 25 percent less sugar than other juice drinks with no artificial sweeteners. The beverage also contains no high-fructose corn syrup, artificial colors, artificial flavors, or preservatives, Kraft says.

Kraft will promote the new version with complementary items. "Capri Sun will participate in a Kraft multibrand event, 'Best School Year Ever,' that includes an instant-win game, in-store displays, combo cards/tearpads for consumer savings, special packaging, and a Web site showcasing the event features," says senior manager, corporate affairs-beverages Bridget A. MacConnell.

"In-store displays work great for calling attention to Capri Sun," she adds. "For example, for Best School Year Ever, the brand will be featured on end cap displays and co-merchandised with displays with participating Nabisco cookie and cracker items."

Smaller beverage manufacturers are also playing up the health angle. Take Wateroos, which bills itself as the only kids' flavored water on the market with no sugar or artificial sweeteners.

"Wateroos is merchandised next to the juice/juice drink boxes and pouches," notes Roberta Greenspan, c.e.o. and founder of Belmont, Calif.-based Maddie's Beverage Co., the maker of Wateroos. "The rationale for this is it offers Mom the opportunity to compare the health benefits of Wateroos -- zero calories, no sweeteners or preservatives -- vs. competitors' sugar-laden beverages."

For the back-to-school opportunity, the brand, rolled out in early 2006, aims to raise its profile. "Our goal for this back-to-school season is to drive awareness and trial for Wateroos in our new retail accounts," says Greenspan. "So we will be executing in-store promotions with all of our key customers [including Shaw's, Hannaford, HEB, and Whole Foods] to secure reduced retail pricing, with additional store signage to call attention to the product."

For the Junior Juice/Junior Water line from Corona, Calif.-based Hansen's Natural Corp., a whirlwind of promotional activities is planned, among them "event sponsorships, sampling tours, direct marketing campaigns, print advertising, social and celebrity outreach, sweepstakes, and various in-store marketing programs," says Jaime Phan, senior brand manager at Hansen's.

Adorned with the popular cartoon image of Clifford the Big Red Dog, the natural product line, which includes recently launched Organic Junior Water products, is usually merchandised with other aseptic juice boxes, but "many retailers that have done floor displays on Junior Juice have done exceptionally well," notes Phan.

What does the future of the segment hold? "[A]s more parents seek healthier beverage options for kids, I foresee the continued trend toward more products being all natural, organic, lower in calories, lower in sugar, or having more specific fortifications within their formulations," predicts Phan.


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Nestlé Waters North America engages in constructive child’s play

As a way to battle the raging obesity epidemic among school-age children, Greenwich, Conn.-based NestleWaters North America launched the "Go Play!" label redemption rewards program, which it's bringing back for a third year, just in time for the start of school.

"The program helps parents and teachers earn sports gear or transportation costs toward healthy activities, just by drinking water," explains Hillary Fleming, Nestle Waters North America activation manager. "Schools in the United States with any grades from K-8 are eligible to participate."

According to Fleming, schools enrolled in the program collect labels from any Nestle Pure Life bottled water product in an official collection box. Each label is worth two Go Play! points, and each school has the opportunity to amass as many as 1 million such points, which are valued at $10,000 in rewards, for sporting goods equipment or assistance with transportation costs toward hands-on educational field trips.

Nestle Pure Life is the first nationally distributed Nestle Waters North America bottled water. Products marketed under the brand are Purified Water Enhanced with Minerals for Taste, Splash Flavors, and Green Tea Refreshers. Like several other regional brands from the company, Nestle Pure Life products come in Eco-Shape bottles, which are made with 30 percent less plastic than other brands, so they're better for the environment, as well as providing an improved grip and lighter packaging.

Schools can register for Go Play! starting Aug. 1 by registering at www.goplaylabels.com/.


Joining the recycling brigades

Children’s beverages are currently aiming not only to be better for kids' health, but also for the environment, through such endeavors as the "TerraCycle, Capri Sun, and Honest Kids Drink Pouch Brigade," conducted in collaboration with Trenton, N.J.-based TerraCycle, Inc., a manufacturer of eco-conscious products including plant food made from worm waste and packaged in reused soda bottles.

The program collects used drink pouches and donates to participating schools or community groups two cents per Capri Sun, Kool Aid (another Kraft product), and Honest Kids drink pouches, and one cent per other drink pouch.

"The used pouches are then sewn into tote bags, handbags, and pencil cases that will be available…at several major retailers," including Target and OfficeMax, says TerraCycle spokesman Albert Zakes, who describes the recycled products as boasting an "eco-chic, Pop Art look."

Enrollees receive four collection bags with prepaid postage to fill up with used drink pouches and send back to TerraCycle.

Anyone can sign up free at www.terracycle.net, as long as the donation goes to a school or nonprofit organization.

So far, over 1,400 brigades have been set up, according to Zakes.


Buyers Alert: Children's beverages

Drinks for the school-age crowd are eagerly trumpeting their good nutrition bona fides these days, with lower-sugar versions, hydration, and organics prominently on the agenda.

Crayons, Inc.

Crayons Sports Drinks: The second beverage line from the manufacturer of all-natural fruit juices for kids, the Sports Drinks come in three flavors: Playoff Punch, Leaping Lemon-Lime, and Breakaway Berry. The aim of the new line is to provide hydration and nutritional needs for active kids, through the inclusion of low amounts of organic evaporated cane juice and moderate levels of sea salt, in addition to vitamins, electrolytes, and minerals.

Suggested retail price: $1.49 per eight-ounce can

Available: Late April 2008

For more information: www.drinkcrayons.com


Kraft Foods

Capri Sun: The venerable juice drink brand now features 25 percent less sugar than other leading juice drinks with no artificial sweeteners. The reformulated product comes in flavors such as Fruit Punch, Strawberry Kiwi, and Wild Cherry.

Suggested retail price: $2.99 per 10-pack of 6.75-fluid-ounce pouches

Available: April 2008

For more information: www.kraft.com


Hansen's Natural Corp.

Hansen's Organic Junior Water: With beloved children's icon Clifford the Big Red Dog on the packaging, courtesy of Scholastic, this line extension offers kids 100 percent of their daily vitamin C requirement and contains no preservatives, no artificial colors, and fewer calories and less sugar than comparable beverages. The item is available in Berry, Fruit Punch, and Tropical flavors.

Suggested retail price: $1.39 to $1.59 per four-pack of 4.23-fluid-ounce aseptic boxes

Available: May 2008

For more information: www.hansens.com or www.drinkjunionjuice.com