Companies Considering Private Label and/or New Nutritional Drink Products

1. Market for Nutritional Drinks

   Many nutritional drinks offer benefits such as nutritional fortification and relief from physical fatigue - benefits of a well-known drink formulation widely communicated through commercial advertisements. Up until now, the nutritional drink market has centered on well-known products mentioned above and has catered mainly to men (particularly men that have reached or exceeded middle-age).
   However, the continuous introduction of new brands and new products targeted not only to men, but also to women and children, has created new opportunities, and the market for nutritional drinks is expanding.
   Various products are currently being sold in the nutritional drink market, including high-value added products, beauty drinks, and gastrointestinal system drinks especially for pre-consumption of alcohol.
   We believe that the nutritional drink market will continue to diversify and expand.
   Popularity of nutritional drinks is increasing, not only domestically in Japan, but also throughout Asia, and there is sure to be an increase in companies rolling out products targeting Asian markets.

2. Nutritional Drinks

   While a variety of drinks are available in large supermarkets, drugstores, and convenience stores, laws and legal regulations differ by drink formulation categorization, and because this has a significant influence on the business, companies that are implementing nutritional drink strategies for the first time in particular need to fully understand the ramifications.
   
   First, nutritional drinks are broadly categorized into 2 types: Pharmaceutical-type nutritional drink formulations and non-pharmaceutical-type drink formulations.
   The pharmaceutical-type nutritional drink formulations can be further categorized into 2 types:
   The first type includes those that fall into category 2 or category 3 pharmaceuticals.
   The second type includes designated quasi-pharmaceuticals.
   
   The non-pharmaceutical-type of nutritional drinks includes soft drinks, carbonated drinks, etc.
   These drinks are classified by purpose, with both a functional nutritional drink category and a beauty drink category that includes collagen drinks, which have seen a significant expansion of the market in recent years.

   Nutritional Drinks

   Pharmaceutical-type products

   Category 2 Pharmaceuticals / Category 3 Pharmaceuticals
   Designated Quasi-Pharmaceuticals

   Non-Pharmaceutical-type products

   Soft Drinks / Carbonated Drinks
   example) Functional Nutritional Drinks
   Collagen Beauty Drinks

3. Laws and Regulations Pertaining to Nutoritional Drink Business

   Although nutritional drinks are broadly categorized into 2 types, because they differ in areas such as sales method and notification methods of efficacy, a drink business must thoroughly understand nutritional drink classifications and the Pharmaceutical Affairs Act and Food Sanitation Act in order to proceed.

   • Pharmaceuticals

     Pharmaceuticals require governmental approval.
     They can only be sold in drug stores and pharmacies, and the product efficacy and indication must be explained on the product/packaging.※Classified into Category 2 Pharmaceuticals, Category 3 Pharmaceuticals and Designated Quasi-Pharmaceuticals according to differences in ingredients
     ※Category 3 Pharmaceuticals can be sold by mail-order

   • Designated Quasi-Pharmaceuticals

     Similar to pharmaceuticals,Designated Quasi-Pharmaceuticals require government approval; however, efficacy and indication may be listed on product/packaging with no restrictions on sales outlets.
     They can be sold in convenience stores and supermarkets, similar to soft drinks.※Classified into Category 2 Pharmaceuticals/Category 3 Pharmaceuticals and Designated Quasi-Pharmaceuticals according to differences in ingredients
     ※Category 3 Pharmaceuticals can be sold by mail-order

   • Soft Drinks

     Soft Drinksdo not require approval.
     Efficacy and indication cannot be listed on product or packaging.
     There are no restrictions on sales outlets, and they can be sold in supermarkets, convenient scores, drugstores, and by mail-order.※The fact that the drinks contains popular ingredients such as collagen can be included on the list of ingredients

Examples of nutritional drink solutions