Many consumers have a love-hate relationship with carbonated drinks. They crave the taste but worry about excessive sugar and calorie intake. However, in recent years, a subcategory of carbonated drinks has not only attracted the entry of global giants Pepsi and Coca-Cola abroad, but also prompted multiple domestic brands to launch related new products. That subcategory is sparkling water. These sparkling water beverages typically have health characteristics such as low-sugar/no-sugar and low-calorie. According to Kantar Worldpanel household panel data, although low-sugar carbonated drinks account for only 3% of total carbonated beverage sales (MAT18P5), their sales growth rate is as high as 85.7%, far exceeding the overall carbonated beverage category. Looking at the recent domestic market, Jianlibao launched a new sparkling water beverage called "Micro-Sparkling Water" in April. It comes in two flavors: White Peach Cherry and Mojito, and in two packaging specifications: 500ml bottles and 330ml cans. It is currently available on Jianlibao's Tmall and JD.com flagship stores. Jianlibao "Micro-Sparkling Water" sparkling beverage Image source: Jianlibao official Weibo From an industry perspective, what is the market for sparkling beverages like? Why can it attract the attention of many domestic and international beverage brands? From a brand perspective, why did Jianlibao, which started with sports drinks, launch a sparkling beverage new product this time? What can this new sparkling beverage bring to Jianlibao? Today, we will focus on Jianlibao's new product and discuss the new sparkling beverages with health characteristics. -01- Jianlibao's New Product "Micro-Sparkling Water" Launches: Fine Bubbles + 0 Sugar 0 Fat + Contains Dietary Fiber Let's first learn about Jianlibao's new product. According to the official introduction, Jianlibao's new "Micro-Sparkling Water" sparkling beverage has three main selling points: fine bubbles, 0 sugar 0 fat, and containing dietary fiber. Jianlibao "Micro-Sparkling Water" sparkling water beverage Image source: Jianlibao official Weibo The primary reason people love sparkling beverages is, of course, the joy brought by the bubbles. The gurgling bubbles slide from the tip of the tongue into the throat, and even the inevitable burp after drinking makes people feel stimulated and refreshed. What is different about the bubbles in Jianlibao's "Micro-Sparkling Water"? FBIF had the privilege of tasting the new "Micro-Sparkling Water" firsthand. As soon as we twisted open the bottle cap, we heard a "hiss" sound, indicating it was full of "confidence." Taking a sip, the fine bubbles burst on the tip of the tongue. Jianlibao "Micro-Sparkling Water" has fine bubbles Video source: Tencent Video As the name suggests, the biggest feature of Jianlibao's "Micro-Sparkling Water" lies in its bubbles. According to a relevant person in charge at Jianlibao, "Micro-Sparkling Water" introduces advanced foreign technology that makes the bubbles smaller and more numerous, fine and subtle. Therefore, the taste of the bubbles is improved, making it more refreshing and crisp after drinking. In terms of flavor, "Micro-Sparkling Water" offers White Peach Cherry and Mojito flavors. The White Peach Cherry flavor has a rich peach aroma, but as you savor it slowly, a subtle cherry flavor emerges. The Mojito flavor is a blend of lemon and mint, which is more refreshing than the White Peach Cherry flavor. Jianlibao "Micro-Sparkling Water" White Peach Cherry flavor Jianlibao "Micro-Sparkling Water" Mojito flavor Image source: Jianlibao official Weibo Jianlibao's "Micro-Sparkling Water" has two health attributes: one is 0 sugar 0 fat, with sweetness coming from erythritol; the other is containing dietary fiber. A 500ml bottle of "Micro-Sparkling Water" adds about 7.5g of dietary fiber, equivalent to the dietary fiber content of 3.5 peaches, meeting about 30% of an adult's daily dietary fiber needs. From this perspective, Jianlibao's "Micro-Sparkling Water" is much healthier than traditional carbonated drinks. Traditional sugary carbonated drinks like cola have been bestsellers for years, but they are criticized for their high sugar and calorie content. Since 2014, countries such as Mexico, Portugal, India, and the UK have successively introduced "sugar tax" policies, starting to crack down on sugary carbonated drinks. The World Health Organization has also recommended reducing consumption of sugary drinks to lower the risk of childhood overweight and obesity. On the other hand, "couch potatoes" seem to have an undiminished love for sugary carbonated drinks. They call sugary carbonated drinks "happy water for couch potatoes." Now, the emergence of sparkling beverages like Jianlibao's "Micro-Sparkling Water" with 0 sugar, 0 fat, and dietary fiber provides a new "source of happiness" for "couch potatoes." -02- From National-Chic Packaging to Launching "Micro-Sparkling Water," Is This Different from the Jianlibao in Our Memory? What does the launch of a sparkling beverage new product mean for Jianlibao? Jianlibao was established in 1984. It quickly established a foothold in China's beverage industry with its alkaline electrolyte sports drink. At the same time, with its sports DNA and support for major sports events, Jianlibao has left an impression as a national beverage brand in people's minds. After 36 years of evolution, Jianlibao has become younger and has captured a large number of young consumers in many ways. In terms of packaging, in 2019 Jianlibao launched "Characteristic Culture Cans," printing three elements—Koi Protection, Fortune Panda, and Made in China—on the cans. In addition, Jianlibao partnered with the Palace Museum to launch the "Auspicious Dragon Blessing Can" for the 2020 Spring Festival, and initiated a three-year "Palace Museum Chinese Festival" project cooperation, launching corresponding cultural and creative products during the four traditional festivals of Spring Festival, Dragon Boat Festival, Qixi, and Mid-Autumn Festival. Jianlibao Characteristic Culture Cans Image source: Jianlibao official Weibo Jianlibao x Palace Museum collaboration product "Auspicious Dragon Blessing Can" Image source: Jianlibao official Weibo Koi, pandas, and Made in China are all elements that have been very popular among young people in recent years, and they possess the national-chic attribute that young people love. Jianlibao also shouted the new slogan "This is China's Jianlibao," deepening its national brand image among young people. The new product "Micro-Sparkling Water" launched this time exudes a youthful vibe at first glance. The rich and bright color combinations, and the font design resembling building blocks, are eye-catching. It is understood that the packaging design of Jianlibao's "Micro-Sparkling Water" comes from Panhu Packaging Design Laboratory. According to the interpretation of Panhu Packaging Design Laboratory, "Building blocks represent happiness, imagination, and a creative future. In the world of building blocks, young people are infused with childlike innocence and imagination, playing various heroic roles. Houses built with building blocks carry the big dreams of childhood and have become a sentiment of the present." Jianlibao "Micro-Sparkling Water" building block style font Image source: Panhu Packaging Design Laboratory official Weibo Jianlibao's "Micro-Sparkling Water" bottle uses PET material, with a gradient from top to bottom, from thin to thick, with simple lines. The matte film wrapping the bottle enhances the product's texture. In addition to attracting young people with its appearance, Jianlibao is also increasingly focusing on communication with young people. Just like the advertising slogan of the new Jianlibao "Micro-Sparkling Water," "Slightly serious, soak in relaxation," Jianlibao is expressing itself in the language that young people like. Online, it interacts with consumers; offline, Jianlibao has also participated in many activities that young people enjoy. For example, last year Jianlibao appeared at the Shenzhen Happy Life Festival, where pop-up installations and trendy merchandise hit the preferences of young people. Jianlibao merchandise Image source: Jianlibao official Weibo -03- Flavored Water, Juice, and Coffee Are All "Bubbling Up": Can Sparkling Beverages Become the Next "Happy Water"? The category of sparkling beverages is not limited to sparkling flavored water; currently, many brands are also launching products like sparkling juice and sparkling coffee. Why are these beverages and brands all "bubbling up"? The popularity of sparkling beverages can be traced back to carbonated drinks. Sparkling beverages actually belong to the carbonated beverage category, made by adding carbon dioxide to the drink to give it a bubbly texture. (This is different from natural sparkling water, which is naturally carbonated mineral water with naturally occurring free carbon dioxide.) As mentioned above, ordinary carbonated drinks like cola generally contain a lot of sugar and are high in calories. Under the major health trend, sugary carbonated drinks are not as well-off as before. China's carbonated beverage market Image source: Prospective Economics From the perspective of carbonated beverage market sales, since 2015, China's carbonated beverage sales have shown a fluctuating downward trend, but the fluctuation is not significant, with an average annual growth rate of only -0.58% from 2015 to 2018. The main reason is that although the carbonated beverage market is in a downturn, it still has a strong consumer base, so the decline in sales is not obvious. On the other hand, from the perspective of subcategories, sparkling water beverages are growing, especially abroad. According to Nielsen data, in the year ending July 28, 2018, sales of flavored sparkling water beverages reached $2.2 billion across all Nielsen tracked channels, and grew by 54% over the past four years. The strong momentum and development potential of domestic sparkling beverages in recent years can be seen from the dynamics of brands such as Jianlibao, Yili, and Genki Forest. Many of the sparkling beverages launched by these brands have characteristics such as no sugar, no fat, and low calories, which precisely address the pain points of traditional sugary carbonated drinks. With the addition of health attributes, consumers' favorability towards sparkling beverages has increased. Taste is also one of the reasons for the popularity of sparkling beverages. Taking flavored sparkling water as an example, products on the market not only have fruit flavors like citrus and peach, but also vegetable flavors like cucumber. Another example is Jianlibao's "Micro-Sparkling Water" Mojito flavor, which is more refreshing in taste than other beverage categories and offers more choices. Another reason is that sparkling beverages have strong plasticity. Sparkling coffee, sparkling juice, sparkling milk beverages, sparkling tea beverages... almost all beverage categories can incorporate bubble elements, bringing consumers new experiences. Tired of ordinary juice, many consumers will add sparkling water to juice themselves to DIY sparkling juice. Therefore, when brands launch such products, consumers are willing to try them. Looking at the future of sparkling beverages, there are three upgrade directions. First, enhance health attributes through functional ingredients, such as adding a refreshing function to match the stimulating and refreshing sensation of sparkling beverages; second, improve production technology and packaging to better meet consumer needs for bubbles, such as finer bubbles, less irritation, more bubbles, and longer retention time. Specific improvement directions need to be determined through consumer research; third, strengthen category education to let more consumers know about and come into contact with sparkling beverages. Will "happy water for couch potatoes" gradually fade out of the beverage industry and be replaced by innovative sparkling beverages? Do you usually drink sparkling beverages? Are you addicted to bubbles? Welcome to share your views on sparkling beverages in the comment section at the end of the article. Source: FBIF Food & Beverage Innovation (ID: FoodInnovation), Author: Momo (Wenky) Tips will be paid 400-2000 yuan once adopted.