Click to read the original article for details Source: Shiyanhui FTA (FTA_21FOOD) Author: Ye He As competition in China's sparkling water market intensifies, consumers easily overlook a fact: most sparkling waters are a type of carbonated soft drink (soda)! Recently, the sugar-free soda sparkling water "Shengqi Bobo" endorsed by popular idol Wang Yibo was called out by the Shanghai Consumer Protection Commission for its claim of "2.5x bubbles," which they believe is misleading consumers. Investigation revealed that the so-called "2.5x bubbles" is actually a technical term, and the beverage brand KellyOne used a professional term to fool consumers. According to the national standard for carbonated beverages (soda), this merely refers to the volumetric multiple of carbon dioxide gas capacity. Meanwhile, relevant experts stated that even on the last day of shelf life, a qualified soda should contain 1.5 times the gas capacity. Cola's gas content is close to 4 times, so 2.5 times is not unusual. The Shanghai Consumer Protection Commission believes that using celebrity endorsements is acceptable, but it is not good to promote concepts that mislead consumers through celebrities. Image source: kellyone JD official flagship store In recent years, as China's sparkling water market competition has become "white-hot," consumers easily overlook a fact: most sparkling waters are just a type of carbonated soft drink (soda)! Once, carbonated drinks, including "happy fat house water," were labeled as "unhealthy" and gradually fell out of favor. Now, sparkling water, a subcategory of carbonated drinks, has become a hit, and under various marketing tactics, it has completely "reborn" the carbonated drink category. Just a name change and it's a hit? When sparkling water became popular, cola and Sprite probably felt confused: "Isn't this just sugar-free soda with a different flavor?" Based on the national standard definition of carbonated drinks, it's easy to judge: common sparkling waters on the market are nothing new; they are just a type of carbonated drink. The national standard GB/T 10792-2008 "Carbonated Beverages (Soda)" defines carbonated beverages as drinks filled with carbon dioxide gas under certain conditions, excluding drinks where carbon dioxide is produced by fermentation. Carbonated beverages are divided into the following four types: 1) Fruit juice type: Carbonated drinks containing a certain amount (mass fraction ≥2.5%) of fruit juice, such as Genki Forest's full juice micro-bubbles; 2) Fruit-flavored type: Carbonated drinks with fruit-flavored essence as the main aroma component, containing a small amount or no fruit juice, such as white peach-flavored soda; 3) Cola type: Carbonated drinks with cola essence or similar cola-nut aroma essence as the main aroma component; 4) Other types: Carbonated drinks other than the above three categories, such as soda water, salt soda, ginger ale, etc. At the same time, the national standard also sets a lower limit for the carbon dioxide gas capacity of carbonated drinks: under certain conditions, the carbon dioxide gas capacity must be ≥1.5 times, and the measurement method for carbon dioxide is standardized. In addition, the China Beverage Industry Association group standard "T/CBIA 001-2017 Soda Water Beverages" clearly defines soda water: Using water as the raw material, adding sodium bicarbonate to adjust flavor, may be filled with carbon dioxide, may add sweeteners, acidity regulators, and edible flavors (materials), without color adjustment, without adding sugar (including sucrose and starch sugar), and processed appropriately to make a flavored water beverage. According to whether carbon dioxide is filled, soda water is divided into carbonated (sparkling) and non-carbonated (still) types. Comparing the ingredient lists of more than ten popular sparkling water products on the market, including Genki Forest, Heytea, Nongfu Spring, Coca-Cola AHHA, and Pepsi bubly, Shiyanhui found that most products are carbonated (sparkling) soda water or fruit-flavored soda. (Genki Forest soda sparkling water ingredients: water, erythritol, carbon dioxide, sodium bicarbonate, citric acid, sucralose, edible flavor) In fact, most sparkling waters on the domestic market are just drinks filled with carbon dioxide. However, many brands have embellished and emphasized "bubbles" to varying degrees in their marketing. Probably because "sparkling water" is a new concept in consumer perception, it has made the carbonated drink market "boiling" again. (Image source: Genki Forest JD self-operated flagship store) According to Euromonitor statistics, although the compound annual growth rate of carbonated drink sales in China from 2015 to 2018 was 2%, in terms of sales volume, carbonated drinks declined in both 2015 and 2016. Similarly, Mintel reports show that from 2015 to 2018, China's carbonated drink market showed weak growth overall, and even saw a decline in retail sales in 2016. (Source: Mintel) But after 2018, the carbonated drink market resumed steady growth. In March 2018, Genki Forest, a dark horse in the soft drink industry, launched its flagship product—Genki Forest soda sparkling water. Since then, the "gate" of the sparkling water market was opened, and a "bubble" trend swept through China's beverage industry. Nielsen data shows that the national sales growth of "0 sugar" sparkling water has nearly doubled in recent years. What tore off the unhealthy label is not "bubbles," but "sugar-free" and "functionalization" Sparkling water became popular alongside the two major food trends of "sugar-free" and "functionalization," not because of "bubbles." This precisely tore off the "high sugar" and "high calorie" unhealthy labels of carbonated drinks, establishing a "healthy" beverage image. In 2018, soda (carbonated drinks) became the mainstream in the sugar-free beverage market. According to relevant data, the market share of sugar-free carbonated drinks in the entire carbonated drink market rose from 2.2% in 2017 to 6.2% in 2019. Here, it must be emphasized that sugar-free does not mean completely free of sugar. It just uses sugar substitutes such as erythritol, steviol glycosides, sucralose, or high-intensity sweeteners to reduce the amount of added sugar, making it lower than the regulatory limit for claiming "sugar-free," while still satisfying human cravings for sweetness. The same applies to claims of "zero calories," "zero fat," "low sugar," "low calorie," and "low fat." According to GB 28050 "National Food Safety Standard for Nutrition Labeling of Prepackaged Foods": in every 100mL of liquid, if the soluble solids carbohydrate (sugar) content is less than 5g, it can be claimed as "low sugar"; if less than 0.5g, it can be claimed as "sugar-free." (Source: GB 28050 "General Rules for Nutrition Labeling of Prepackaged Foods") In addition to the "sugar reduction storm" boosting sparkling water, in the future, functionalization will be one of the important factors driving sparkling water consumption. Last year, Mintel's China sparkling beverage report pointed out that in the long run, the functionality added to sparkling beverages will drive purposeful consumption. Currently, China's soft drinks are still in the initial stage of "adding gas and reducing sugar," and the functionalization trend is not obvious. Common products mainly claim vitamins/minerals, dietary fiber, or probiotics. Treat "Bubbles+" Rationally Although "adding gas" should not be the core selling point of sparkling drinks, the pleasure brought by "bubbles" is undeniable. Bubbles can fully diffuse aroma or functional ingredients throughout the body, and the refreshing taste greatly enhances the drinking experience. However, people with gastrointestinal issues should be cautious, as sparkling water may cause side effects such as burping, flatulence, and abdominal bloating. Now, coffee + bubbles, juice + bubbles, herbal tea + bubbles... Under the "bubbles+" beverage innovation trend, product development, processing, and brand marketing should treat "bubbles+" more rationally and scientifically. PS: From August 24-26, 2021, the 2021 (4th) China FMCG Conference hosted by New Distribution will be held in Shanghai. Focusing on industry trends + practical cases + growth connection as the core, 3,000 FMCG practitioners will gather. 10 thematic forums cover new retail O2O, community group buying, short video and live streaming e-commerce, distributor transformation, rise of new consumer brands, new alcoholic beverage interpretation, distribution B2B supply chain, omni-channel marketing, B2B2C new technology applications, etc., with operators from various segments bringing the latest case studies. Some of the confirmed heavyweight guests so far include: 1. Tao Shiquan, founder of Jiangxiaobai; 2. Yao Xuhong, General Manager of Meiyijia Holdings Co., Ltd.; 3. Lu Xiuqiong, Global Expert Partner at Bain & Company and former Vice President of Marketing for Coca-Cola China; 4. Chen Xiaodong, Senior Vice President of Nestlé Greater China; 5. Zhang Fujun, President of Lee Kum Kee Sauce Group China; 6. Bi Chaojiao, General Manager of China Resources Snow Breweries (China) Marketing Center; 7. Yang Hongbin, Vice President of Junlebao Dairy Group; 8. Yang Shun, COO of Lipton Greater China; 9. Zhang Yipeng, General Manager of Kuaishou E-commerce SKA Brand Operations Center; 10. Li De, General Manager of Gold Hong Ye Paper Group E-commerce... A grand event for FMCG professionals, you must be there! Are you "watching" me?