Functional Foods & Beverages.

With green tea in mind, Rick Ray, director Beverage Division, Melchers Flavors of America, explores the growing idea that some foods and drinks can be defined as actively beneficial to human health -- a notion that he describes as a 'slowly awakening sleeping giant.'

What is a 'Functional Food'? -- "The definition of functional foods is still evolving but refers to foods that, by virtue of physiologically active compounds, provide benefits beyond basic nutrition and may prevent disease or promote health," explains Clare Hasler, PhD., director of the University of Illinois Functional Foods for Health Program.

Japan is considered the pioneer country of Functional Foods and started popularizing the term "functional food" in the 1980s. While Japan is the only nation that has legally defined functional foods, the Japanese functional food market is now one of the most advanced in the world. Under their system, the term 'functional' was actually dropped and the term "Foods for Specific Health Use," or FOSHU, was introduced. Functional Foods are now a distinct category within the Japanese food supply. America does not currently have a clear regulatory process by which food companies can make specific claims of food functionality. Foods fortified with various nutrients and herbs have very limited legal allowance for health, let alone medical claims. Market analysts believe this will change over the next few years with Federal legislation eventually allowing expanded health and medical claims when scientific research legitimately backs up manufacturers' claims.

FUNCTIONAL FOODS 2000 -- WHERE ARE WE NOW?

Medicinal teas, meal replacements, sports beverages, and fortified foods have been getting plenty of media attention in recent months. Herbal extracts made from Ginkgo, Guarana, Echinacea, and various nutrients are being added to beverages even more than to foods in an effort to enhance the actual and perceived health benefits. While sales of these 'naturally' fortified products are booming, there is a catch. Most of these 'functional foods and beverages' contain so little of the proclaimed 'active' ingredients that it is unlikely they afford any benefit to the consumer beyond a placebo effect. Furthermore, many of these products stray into 'gray' regulatory areas with potential for lawsuits and even FDA (Food and Drug Administration) comment and actions against manufacturers. Two products with basically the same ingredients can deliver substantially different nutritional benefits and health support due to low potencies and a lack of standardization of the 'active' constituents that clearly affect the body. Some supposedly functional foods and beverages simply provide no benefit beyond basic nutrition, and certainly none of the value inferred by flashy label declarations and higher prices. Ultimately, regulators will require all products marketed under certain functional criteria to contain the same amounts and types of beneficial constituents as proven in clinical studies to consistently produce specific health benefits. This type of scientific proof is now required by dietary supplement manufacturers seeking to make label claims under the 1994 Dietary Supplement Health Education Act of 1994 passed in the U.S. Congress.

WHY FUNCTIONAL BEVERAGES?

More than half of the U.S. population is deficient in one or more nutrients and health care costs continue to burden the economy. Hectic schedules allow limited time for shopping, cooking, and eating properly. The results all too often contribute to poor nutritional intake. These and other factors are cited as the market drivers that are pushing the emerging functional foods industry forward. Many consumers are not meeting their basic and complex nutritional requirements in spite of having access to fresh foods and potent dietary supplements. By combining solid nutrition, great taste, and fortified health constituents into functional foods and beverages, manufacturers are offering consumers an affordable way to optimize their daily eating habits. Every major food and beverage company in the world is now embarking upon the development of functional products which will boost consumer health, well being and, most importantly, sensory satisfaction. Many of these functional creations will be geared toward America 's biggest demographic group -- the baby boomers -- who are willing to pay a little more to stay healthy and fit. This powerful demographic group has purchasing power for products that taste great, help prevent disease, and are easy to consume. Manufacturers meeting the needs of these 76 million middle-age consumers in the U.S. will reap a bounty of significant profits. While many mainstream beverage categories have seen sales spiral in a slow growth pattern over the last few years, functional beverages will create new markets and products for manufacturers.

THE REGULATORY LANDSCAPE IN TRANSITION

New laws were passed recently in the U.S. making it easier for labeling claims to be made. Now two types of statements or claims are allowed:

1) Structure and function claims describing effects on normal function of the body;

2) Disease risk reduction (health) claims implying relationships between components in the diet and a disease or health conditions, as approved by FDA and supported by scientific agreement.

It is vital to note that the above types of labeling claims are only allowed when there has been scientific research on the specific ingredients and constituents used to manufacture a given product. Equally important, there must be enough of the active ingredient, nutrient, or health related constituent to produce a definitive physiological outcome within the product. Manufacturers not meeting FDA and FTC (Federal Trade Commission) labeling and promotional regulations when making claims may be forced to remove products from shelves, pay heavy fines, and in extreme cases, discontinue sales altogether.

A FUNCTIONAL INGREDIENT BREAKTHROUGH

Melchers Flavors recently introduced a new line of Fortified Flavors that provides manufacturers with the best of all worlds when it comes to functional product formulation. The Melchers Fortified Flavor System delivers a precise, standardized amount of green tea extract in dry or liquid forms designed to uniformly fortify functional products. By adding a small amount of Melchers Fortified Flavoring to a teabag or RTD beverage, each serving will contain the antioxidant equivalent of two or more cups of traditionally brewed green tea. The green tea extract is processed using a proprietary system that leaves the naturally occurring ratios of antioxidants (polyphenol catechins) in almost the identical ratios as occurring in dried and brewed tea leaves. Melchers then adds flavors to these super healthy green tea extracts, creating a health promoting functional ingredient that is a flavoring ingredient as well. This dual-benefit system allows formulators of teas, ready-to-drink beverages, and functional foods to fortify and flavor their creations naturally and efficiently.

THE FUTURE LOOKS LIKE BRIGHT

Some market analysts estimate the market for functional foods and beverages worldwide will eventually top $200 billion dollars -- or half the estimated size of the current food industry. How fast this fascinating new category will take off and what it will eventually look like is anyone's guess. What is certain is that the demand for fortified, functional, and medical foods and beverages will require innovation to catch the eye and dollars of fickle consumers. Ensuring that healthier foods and beverages promote well-being, but also appeal to fickle taste preferences is critical. Then there's the question of shelf placement. Where do you place a functional product on grocery shelves? Will the consumer more easily find medicinal teas placed with traditional teas, or will they look in the herbal supplement area? If you place a functional beverage next to a nonfunctional beverage, will the consumer think that the non-functional is bad for them? With limited shelf space available, which one will the store carry? These and many other complex factors will take years to sort out. Ultimately, consumers will have the final word as savvy marketers listen closely and put forth innovative products that address specific needs and desires.

Rick Ray has been with Melchers for six years and has been beverage director for the past two years. Prior to that, Rick worked for Sanofi Bio Industries, Felton Worldwide, and Baskin Robbins.