Can a regional fruit-drink maker take on Gatorade and itsChicago Bulls pitchman Michael Jordan with a Boston Celtics-testedalternative?
Yesterday Veryfine Products Inc. of Westford, best known for itsapple juice and other drink products, said it would enter the $1billion sports drink market with a lemonade that contains choline, abody-produced chemical that helps reduce muscle fatigue.
The proposed energy drink was developed by InterneuronPharmaceuticals Inc., a Lexington biotechnology company thatspecializes in medical products for neurological and behavioraldisorders.
Under the agreement, privately held Veryfine will pay Interneuronan undisclosed amount of cash for licensing the biotech firm'stechnology, reimbursement on future development expenses androyalties on sales.
Shares of Interneuron, which is still in the startup phase ofdevelopment, gained 5/8 to 8 3/8 in unusually heavy NASDAQ trading.
Gatorade, which is made by the Quaker Oats Co., commands morethan 85 percent of the sports drink market, according to InformationResources Inc.'s Infoscan survey of supermarket sales. About 20 newthirst quenchers have recently entered the 'sweat set' market,including brands such as Splash, Propel and Second Wind.
Earlier this year Coca-Cola Co. began selling PowerAde in somesouthern cities after an attempt to team up with Gatorade fellthrough. Gatorade was seeking vending machine and convenience storedistribution, but couldn't agree to terms.
In addition, bottled-water marketers are also going after sweatset. 'We see an expanding market segment, and like Coke and Pepsi,continued growth in the sports drink arena,' said Steven D. Rowse,Veryfine's vice president of marketing.
Although Veryfine, expected to have sales of $200 million thisyear, could have a drink on the market next year, Rowse said thereare no firm plans to introduce one by then. 'We don't have a finalmarketing concept,' he added. Sports drinks are marketed asliquids that replenish fluids and minerals lost during exercise.They are basically water with sweetners along with potassium andsodium.
The planned Veryfine drink, while competing against Gatorade, is adifferent formulation. The Interneuron-developed drink was testedwith members of the Boston Celtics at the end of last season andduring the basketball playoffs. Celtic trainer Ed Lacerte has statedthat the drink seemed to make a difference in the fourth quarter.
'I got the sense that they were not fatigued as much,' Lacertesaid.
Unlike Gatorade and other sports drinks that replace elementsvital to maintaining balanced metabolism, Interneuron is focuing onreplacing the body's own nerve-to-muscle chemical, known as choline.
Choline is a critical building block in the manufacture ofneurotransmitters, known as acetylocholine, that play a major role inhelping nerves signal muscles to function. Recently tested onlong-distance runners, the choline-based drink helps prevent fatiguedrunners from 'hitting the wall,' according to Interneuron.
Although choline is found in beef, liver, eggs and peanuts, allrich in fat, oils and cholesterol, Interneuron has spent two yearsdeveloping a purer form without these often objectionable substances.
The proposed sports drink was developed by Richard J. Wurtman, aprofessor of brain-cognitive science at Massachusetts Institute ofTechnology who first measured lost choline levels in marathonrunners.
