What’s New in BCSPOTLIGHT ON BC : NON-ALCOHOLIC BEVERAGES SUMMER 2011 Comforting and thirst quenching all year round, non-alcoholic beverages are consumed daily across the globe, and make up the large majority of Canada’s commercial beverage market. As one of the top three beverage exporting provinces, BC’s unique mix of non-alcoholic products are shipped to a variety of destinations stretching from North and South America, to Europe, Asia and the Middle East. While the majority of Canadian beverage exports are alcoholic, BC exports more non-alcoholic beverages, which include bottled water, coffee, tea, fruit and vegetable juices, and soft drinks.

Home to roughly 7% of the world’s renewable fresh water (http://www.ec.gc.ca/eau-water/default.asp?lang=en&n=B1128A3D-1), Canada boasts a bottled water industry of approximately 65 bottlers with a reputation for excellence due to the adoption of respected methods like ozonation in the filtering process. BC-based processors produce a wide range of bottled water products from pure glacier and spring to flavoured and fortified. In 2009, these processors combined to make up almost a third of Canada’s bottled water exports. Canada’s treatment of bottled water as food further ensures products of a high standard as Canadian manufacturers are subject to regulations set out under the Food and Drugs Act and the Consumer Packaging and Labelling Act.

While not indigenous to Canada as a crop, the coffee and tea industries in Canada have seen success. Exports have almost doubled from $214 million in 2005 to $397 million in 2010. Evolving in recent years to embrace sustainability, portability, healthiness, and innovation, BC finds itself with an assortment of processors that offer organic, fair-trade, kosher, and ready-to-drink varieties of tea and coffee. Having emerged as an antioxidant-rich beverage laced with countless health benefits, exports of tea in BC alone have more than doubled in value from $8 million in 2005 to $18 million in 2010.

BC’s strong agricultural sector produces an abundance of fruits and vegetables available for local processors to turn into nutritious, unique, and delicious juices. A leading province in berry and tree fruit production, it should come as no surprise that BC food processors have embraced their exceptional resources, turning apples, blueberries, cranberries, and other fruits into a range of premium, not-from-concentrate juices that come in organic, fortified, and all-natural varieties.

Despite industry reports that indicate healthier beverage options as an emerging consumer preference, carbonated drinks remain one of the top sellers domestically. To promote product

integrity, the Canadian Beverage Association (www.refreshments.ca) has recently developed a “Clear on Calories” initiative that promises consistent and reliable caloric information for consumers of Canadian-made products.

Having seen the most significant growth out of all beverage categories in 2009, tea and bottled water have been noted as global industry frontrunners. Corresponding with this worldwide trend towards healthier choices, Euromonitor predicts that coffee, tea, still bottled water, and juices in Canada will steadily increase in value in the coming years while carbonated drinks will see a slight decline. To learn more about the non-alcoholic beverage industry in Canada, please consult Agriculture and Agri-Food Canada’s various industry reports.

Bottled Water: http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1171644581795&lang=engCoffee: http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1172237152079&lang=engTea: http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1298047470064&lang=engSoft Drinks: http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1172167862291&lang=eng

Aquaceutica began in 2005 as a side project when present Founder and CEO Randall Volberg, then working with medical devices, stumbled across research that suggested lithium as a mineral capable of increasing adult neurogenesis – that is, the birth of new brain cells. Inspired by this, Volberg dug further and discovered a rare hot spring in the Canadian Rockies rich in the essential trace mineral. Aquaceutica’s line of ĔDJ lithia spring waters plans to be the first of many innovative products developed by the company that embrace benefits of neurogenesis nutrition. Currently co-packing with Miller Springs in Bridesville, BC, lithia water is trucked in from the West Kootenay Rockies and travels through a dedicated ĔDJ filtering system before it is bottled and ready for distribution. In BC, ĔDJ is distributed by Dovre Imports, the Pacific Partner of Canada Food Group, and retails at various cafés, hotels, convenience stores,

and grocery chains, including Overwaitea and Whole Foods.

Founder and CEO: Randall VolbergCurrently Exporting To: United States - West

Interested in Exporting to: Japan, United States - East, China, Korea, SingaporeProduct: ĔDJ sparkling lithia spring water in five natural flavours – lemon, key lime, pink grapefruit, cucumber

mint, and coconutPackaging: 375mL bottles sold individually, or in six-packs and shipped in cases of 24 with one flavour per

case and 70 cases per palletPrice Points: Sells to distributors for $0.80-$0.83 per bottle and generally retails for around $1.99

Key Attributes: Lightly sparkling and unsweetened, uniquely rich in natural lithium, and comes in an ocean and landfill biodegradable bottle.

Certifications: CFIA, GMP, HACCPPopular Among: Young urban professionals, boomers, the alternative

health conscious, and mothersIdeal Export Partner: Understands and appreciates the brain health

benefits associated with ĔDJ, and is willing to value and promote the product as a functional beverage that provides a rich source of natural lithium for dietary intake.

Special Feature: Supported by credible published science, lithia’s potential to improve brain health and brain performance has caught the eye of researchers at UBC, who are currently

testing the effects of ĔDJ water on neurogenesis, cognitive performance, and mood in a placebo controlled, double blind study.

Website: www.edjwater.comExport Contact Email: rv@aquaceutica.com

Feature Company: Aquaceutica Group

Rooted in Science, Innovating for the FutureAs the world’s second largest producer and exporter of blueberries, Canada is a major source for retailers and processors everywhere. The improvement and preservation of the Canadian blueberry crop is of vital importance, especially to beverage processors who utilize the antioxidant-rich berry to create popular fruit juices and blends. Two such companies in BC are Bremner Foods (www.bremnerfoods.com) and Lead-ing Brands Inc. (www.leadingbrandsinc.com), who each produce a variety of different beverage products that rely on the productivity and sustainability of local and national blueberry harvests.

At the Pacific Agri-Food Research Centre (PARC) in Agassiz, British Columbia, Agriculture and Agri-Food Canada scientists and their partners are helping to create opportunities for Canadian beverage proces-sors through agricultural research and innovation.

PARC Research Scientist Dr. David Ehret is studying and developing new and more effective methods for blueberry irrigation.

“Both under-irrigation and over-irrigation at certain times of the year have negative consequences on the plants in terms of fruit quality, level of production and plant disease,” says Ehret, whose research is supported by the industry partners PARC scientists consult with regularly. “The application of better water management practices will increase the overall yield of blueberries for the grower, and will do so in a more efficient and cost-effective manner,” Ehret explains. “Fruit quality, including nutritional value, will also improve, which is a benefit not only to producers but consumers as well.”

For more information on the Pacific Agri-Food Research Centre, please visit: www.agr.gc.ca/science.

In 2005, inspired by the shortcomings of standard teabags, Rajesh and Vinny Sharma looked to combine the superior flavour of whole leaf tea with the convenience of teabags with the design of their

signature patented tea sticks. Petit Tea products are easily distinguishable through their tea sticks, which allow room for whole tea leaves to steep properly and function both as a strainer and a stirrer. Agile Polyventure has further extended their premium tea product offerings to include a line of Om Tea Chai Lattes, again, uniting quality and convenience with an earth friendly tea sachet. Exporting

since 2007, the company is represented by The News Group (a Jim Pattison Company) for Canadian distribution, and products are currently co-packed out of a manufacturing facility in Ontario. To better manage their increasing presence in the United States, the company also maintains a warehouse in

Northern Washington. Currently, Petit and Om Tea products can be found at various Safeway, Krogers, and Whole Foods grocery chains across North America.

Director: Rajesh SharmaMarketing Manager: Vinny Sharma

Currently Exporting to: United StatesInterested in Exporting to: United Kingdom, Germany, France, United Arab Emirates,

Kuwait, Saudi Arabia, Australia, Singapore, Hong KongProducts: Petit Tea (Earl Grey, American Breakfast, Masala Chai Latte, Mango

Monsoon, and Darjeeling Green) Tea Sticks; Om Tea (Traditional Masala, Ginger Cardamom and Organic Tulsi) Chai Lattes and Hot Cinnamon Spice Tea

Packaging: Petit Tea Tea Sticks in a twelve-count box, with ten boxes per case and 240 cases per pallet; Om Tea Tea Sachets come in a fifteen-count box, with six boxes per case and 300 cases per pallet. *Petit Tea also

ships in a 50 count bulk box for food servicePrice Points: Petit Tea and Om Tea retail for about $5.99-$6.99(CAN) and $7.99-$9.99(US)

Key Attributes: All products are made with 100% natural ingredients and packaged in completely biodegradable materials. Tea sticks are made of recyclable food grade aluminum alloy and are exclusively designed to easily brew premium whole

leaf tea directly in a cup. Tea sachets contain whole spices and, left unopened, will retain flavour for up to three years. Certifications: USFDA, HACCP, ISO

Popular Among: Women 20 to 60 years of ageIdeal Export Partner: Is keen to work cooperatively with Agile Polyventure to aggressively promote

Petit Tea and Om Tea products in their market of expertiseSpecial Features: Agile Polyventure actively provides promotional support for partners and offers

special low pricing to international importers, allowing them the required margins for marketing funds based on local needs. The company is also open to forming private label partnerships.

Websites: www.petittea.comwww.omtea.com

Export Contact Email: rajesh@petittea.com

Feature Company: Agile Polyventure Group Ltd.

Beverages Take Natural RouteThe World of Food Ingredients – February 2011 Rising consumer interest in health and naturalness is being strongly reflected in new product activity in the global soft drinks market. According to the Innova Database, 60% of the soft drinks launches tracked globally in 2010 had a health positioning of some sort, primarily in terms of passive health [food minus], although over 20% of products were launched with an active health [food plus] message of some kind, albeit often in association with other passive health benefits.

Some soft drinks products have an inherently healthy image, particularly juices and water, while some are formulated for specific benefits beyond hydration, notably sports and energy drinks, but elsewhere in the mainstream market, manufacturers also continue to position products on health platforms of various kinds, from the passive, such as sugar-free, low-calorie, natural, etc., to the active,

such as vitamin- and mineral-fortified, added-calcium and functional, as well as those offering specific health benefits such as immune health, heart health, oral health, etc. The most popular health-related claims recorded by Innova Market Insights during 2010 were undoubtedly concerned with naturalness and freedom from artificial additives and preservatives, and this en-compassed a wide range of products, led by juices and water, which tend to be seen as inherently fairly natural. Over 20% of launches recorded by Innova Market Insights were marketed as free from additives and preservatives [particularly artificial colors], while well over 10% were marketed as natural. Combining the two categories resulted in nearly one-third of total soft drinks launches using either one or both claims. For a copy of the complete article in English, please contact: atsbc@agr.gc.ca.

Media Monitoring

For more information, please contact the BC Regional office at 604-666-6344 or email: atsbc@agr.gc.ca. Aussi disponible en français.

Established in 1989, Swiss Water Decaffeinated Coffee Company (SWDCC) is a global leader in environmentally responsible processing, offering their 100% chemical-free decaffeination services for premium and specialty coffee roasters and retailers around the world. The SWISS WATER® Process meets the global standard for decaffeination – 99.9% caffeine-free, while maintaining the unique taste and quality characteristics of the original coffee bean. For those allergic or looking to regulate their caffeine intake, SWDCC’s mission is to make it possible for everyone to enjoy great tasting coffee at all times of day. As a trusted service, SWDCC caters to a variety of different market

segments, and provides coffee roasters and retailers with the opportunity to bring growth and innovation to existing premium product lines. Responsive to market differences, SWDCC recognizes and supports companies that seek

to develop decaffeinated and/or caffeine-less coffee positioning. Solid clients in the specialty café and grocery retail sectors include Starbucks (Japan), Tim Hortons, Allegro Coffee at Whole Foods Markets and President’s Choice at

Loblaw.

Export Manager: Marisol PinzonCurrently Exporting To: Asia, Asia Pacific, Western Europe, the Middle East, and the United States

Interested in Exporting to: Global (Non-North American priority)Product: On top of toll processing, SWDCC decaffeinates quality Arabica beans purchased from around the world

(South and Central America, Africa and Indonesia) available for purchasePackaging: Several packaging options

Minimum Production: 7,500 lbs or 3.4 metric tonnesKey Attributes: Organically certified, chemical-free, proprietary process for removing caffeine from green coffee beans while retaining the bean’s original

flavour, body and aroma.Certifications: Decaffeination process is GMP, kosher, halal and organic

certified, and will be HACCP and BRC certified by the end of 2012; product certifications vary depending on the coffee bean

Ideal Export Partner: Leaders or strong participants in the premium and specialty coffee industry who understand the structure of the coffee market

and are looking to extend their credentials into decaffeinated or caffeine-less coffee

Special Feature: Roasters are encouraged to add value to their brand by including the SWISS WATER® Process logo and trademark on their original packaging through a

Licensing Program. Consumer friendly, the program also provides promotional materials at no charge and a Decaf Education Guide for the training and development of employees.

Website: www.swisswater.comExport Contact Email: mpinzon@swisswater.com

Feature Company: Swiss Water Decaffeinated Coffee Company Inc.

Media MonitoringWake up and smell the Coffee The Globe and Mail – July 2011 After the kind of year the coffee market has had, both investors and consumers are finding the price a little hard to swallow. But while coffee may be due to come off the boil for the short term, its long-term investment potential may just be heating up.

That’s because while the short-term rally in coffee over the past year has been all about supply shortages, coffee’s longer-term prospects are all about demand. And, as with a lot of commodities, the focus there is on China. Put simply, the Chinese are developing a taste for the joe.

At their peak in early May, commodity-market prices for coffee had more than doubled in less than a year. The culprit for the spike was a shortage of supply, as the coffee crop was hard hit by bad weather. Droughts in Brazil and heavy rainfalls in Colombia hurt crop yields in the past year.

Fluctuations in coffee supply are often larger than the changes in consumption, and are therefore central to price movements in the short term,” said Ross Strachan, commodities economist at Capital Economics in London, in a recent report.

However, welcome rains have come to Brazil and the overall coffee crop this year is expected to be bigger than last year’s. That, combined with a general pullback in commodity prices, has contributed to a drop in the coffee price to below $2.60 (U.S.) a pound from more than $3 in early May.

But while coffee prices could still be due for a further pullback, Mr. Strachan expects them to remain well above their levels of a year ago. That’s because of the demand side of the equation – and China.

To read the complete article in English, please visit: http://www.theglobeandmail.com/globe-investor/investment-ideas/fea tures/market-lab/commodity-bears-wake-up-and-smell-the-coffee/article2083520/