Companynews // 09/03/2007

Introduction of a new product category - proven to assist healthy diet ? blood sugar regulating effect scientifically proven ? consumer research predicts successful sales ? market introduction with massive marketing commitment

Gerolsteiner Linée: The first natural, functional vitality drink in Germany

Gerolstein, 03/09/2007. As of June 1 2007 the market will offer a beverage to consumers for the first time that has been proven to provide a positive contribution to a healthy diet: in cooperation with the West German Center for Health in Düsseldorf, under the supervision of the medical director Prof. Dr. med. Stephan Martin, Gerolsteiner has developed a natural, functional vitality drink that helps to stabilize the human energy balance throughout the day, thus bridging the hunger gap between meals. Gerolsteiner Linée is thus the first product of a new category on the market for non-alcoholic beverages.

The effects of an unhealthy diet offer great potential for natural, water-based product solutions. "According the forecast of the market research institute Ipsos excessive weight with all of its potential health risks will continue to increase dramatically in Germany. According to Ipsos, wrong eating habits will lead to 10 million people with diabetes by the year 2010", says Jörg Croseck, speaker of the executive board of the Gerolsteiner Brunnen. "This is why consumers demand a healthy, effective and long-lasting and at the same time convenient aid for their every day diet. With Gerolsteiner Linée we offer a product that is physiologically effective regarding dietary needs. It provides the energy it contains more easily and over a longer period of time while at the same time effectively quenching thirst."

In order to develop the first natural functionality drink for a stabilized energy balance, the Gerolsteiner Brunnen combined its sufficiently proven consumer competence with the scientific competence of the West German Center of Health in Düsseldorf.

"Gerolsteiner-Linée is based on the complex interplay of fast and slow carbohydrates, natural plant compounds that regulate the energy balance, such as green tea and konjac tubers, vitamins and Gerolsteiner mineral water", explains Professor Dr. Stephan Martin, medical director of the West German Center of Health. "And it is successfully effective, as we have already managed to prove scientifically in clinical studies."

Qualitative and quantitative consumer testing has shown that the sales rates for Gerolsteiner Linée promise be high. Consumer focus is aimed especially at weight and health conscious women, both those with a career as well as those concentrating on their families. The demand for variety is met by three new choices of flavor, which are litchi and lime, mango and grapefruit as well as pineapple and lemongras: The three varieties combine sensual with tart taste experiences and raise the repurchase rate.


Massive investments toward the net value added of every market participant

The national market launch, which kicked off on June 1 2007, was accompanied by a massive marketing campaign. The central focus is on a TV spot and advertising campaign with an enormous airtime volume on every major TV channel and advertisements especially in female interest print media. Label-cross-promotion, a dietary advisor, product sampling as well as the biggest personal promotion campaign in the company's history are cranking up the turnover in the year's second half. At the point of sale the consumer is met by attention grabbing displays.

Conclusion: Gerolsteiner is offering a credible concept to its trade partners, combining consumer relevance with the trustworthiness provided by the brand Gerolsteiner. "This is the credible continuation of our innovative efforts, in keeping with our development from being a mineral water specialist to becoming the leading provider of non-alcoholic beverages, as determined by the advisory board", adds Croseck.


Overview of product data

Brand name: Gerolsteiner Linée

Class of goods: Non-alcoholic beverage

Product concept: Functional vitality drink with natural ingredients. Stabilizes the energy balance with only a minor amount of calories by more easily providing the energy over a longer period of time. Effectiveness proven through clinical studies conducted by the West German Center of Health in Düsseldorf.

Flavors: Litchi-lime, mango-grapefruit, pineapple-lemongrass

Primary ingredients: Green tea extract, konjac tuber extract, wheat dextrins, slow carbohydrates (isomaltulose), vitamin C, magnesium, biotin, slightly carbonated natural mineral water ? without colorings and preservatives, without artificial flavors

Packaging/Recommended retail price plus 0.25 € deposit:

0.75 liter PET bottle/unit retail price: 1.29 € / continuous low price: 1.25 € / special offer price: 1.19 €

0.75 liter PET bottle in a six pack/unit retail price: 7.74 € plus deposit

Display ¼ Chep with 120 bottles (mixed assortment)

Positioning recommendation: block positioning of the three varieties in the Gerolsteiner brand segment

Consumer promotion: Single bottle displays, label promotion, test week campaigns, personal promotion with 2000 working days, sampling, sales folders and other things

Communication: TV spots, print media advertising, billboards

Distributive channels: big and small discount stores, big and small convenience stores, petrol stations, schools

Market launch: June 2007