Entrepreneur.com: When Victoria Malmer went online to research different diets, she noticed a common thread among the many different discussion groups: the desire for water that didn't taste so plain. After discussing her findings with friend Paul Staunton, both felt a definite market existed for water flavorings. And by making them calorie- and sugar-free, they would appeal not only to diet-conscious individuals, but also to diabetics and anyone else mindful of their sugar intake. "We realized that whether it's low-carb, low-fat or no-bread, diets come and go," says Staunton. "We wanted to have something that would cross all borders. Everyone wants to drink more water."

Malmer, 42, and Staunton, 46, contacted different flavor manufacturers and conducted a double-blind taste test on their friends with fruit-flavored samples. Based on those results, the partners started with 16 fruit flavors, including peach, pineapple, raspberry and strawberry. Rather than sell flavored bottled water, they opted instead to package the concentrated flavors (available sweetened or unsweetened, but all calorie-free) in small, 1-ounce dropper bottles for $9.95 each. Their rationale: You don't have to lug around a bottled drink to a destination, the flavor can be added to any beverage or food, and you can adjust the intensity of the flavor to your liking.

Staunton, a database programmer, and Malmer, a newspaper editor, operate PAES in their off hours but have already won the 2004 Carb-Aware Consumer Choice Awards Product of the Year and received a good amount of media buzz. Sold through Flavors2Go.com and Castus Superstores, they currently have a distributor in Canada and the United Arab Emirates. With 2005 sales projections breaking $250,000, the co-founders have also introduced an imitation honey that is enticing even more customers to indulge their sweet tooths.

For Sweet Tooths [Entrepreneur.com]