ZENDO Calm + Focus will be sold to major national wholesalers who will sell and deliver them in turn to retailers.
Our highly innovative segment and the unique composition of our product is perceived by consumers as having high added value, allowing us to offer our drink to wholesalers and maintain a significant margin.
Figures concerning the sales of relaxation drinks are still scarce. And this is because it is a whole new segment in the beverage sector.
The first players arrived in the US market in 2012. And a few months after their appearance, some 33 million litres were sold in the US in 2013.
Although this figure may seem small in absolute terms, it clearly reflects a strong trend.
Moreover, the New York-based magazine Inc.com selected the relaxation drinks sector as one of the seven sectors in which to start a business in 2015!
Additionally, several beverage industry specialists confirm that relaxation drinks meet the number one need of consumers in 2015: remaining calm in the face of the many challenges of daily life in a world that goes at 100 miles an hour!
Some even predict that relaxation drinks will be the next big commercial success after the energy drinks of the 90s and 2000s.
For information, so-called functional beverages, including energy drinks (e.g. RedBull), sports drinks (e.g. Aquarius) or those with a beneficial effect on health (e.g. ZENDO Calm + Focus), represented a market $14 billion for the year 2014 in Europe.
We are therefore committing ourselves to a potential market worth several billion with an excellent "time to market".
"Relaxation beverage revenue grew 23 percent in 2014, to $153 million, and has risen at an annualized rate of 30 percent since 2009. Industry revenue is expected to increase at an annualized rate of 12 percent, to $263 million, in the next five years, according to IBISWorld"Inc. Magazine - Feb4, 2015
There are no relaxation drinks for sale in Belgium!
We will take advantage of a first mover advantage for this product category.
Of course, one can not deny the existence of other beverages in Belgium. Whether these are good for health or not, we must consider them.
According to our concept studies, consumers perceive three main types of beverages:
- Conventional sodas (e.g. Coca-Cola): perceived as chemical and calorific;
- Energy drinks (e.g. RedBull): also perceived as chemical and calorific, even harmful. And;
- Healthy drinks (e.g. TAO, Little Miracles, Arizona): perceived as healthier but having no effect or particular virtue.
We are distinct from the first two categories through our natural ingredients, 100% healthy composition and being low in calories.
Furthermore, we are differentiated from health drinks by the unique relaxing effect of our product, on the one hand, and its original packaging (specific shape of the bottle, sober and healthy visuals, the new “relaxant drink” segment), on the other hand.
At a European level, we have so far identified only one real competitor. That is the Swedish relaxation drink NOA.
This competitor has existed since February 2015. They are thus new to the market as we are.
Today it is available mainly in Scandinavia.
The commercial success of NOA in recent months confirms the public interest for relaxation drinks and the imminent creation of this new market.
Although our brand positioning is not identical, our goal is to compete with our only European competitor to become the reference brand in Belgium and in Europe in our product category.
Other players have also existed in North America for a few years, further confirming the growth trend of our market. The major North American players are SlowCow and JustChill.