Preview

Innocent Drinks

Powerful Essays
Open Document
Open Document
5033 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Innocent Drinks
CASE STUDIES

Innocent Drinks Case Study
Capitalizing on the health trend in the smoothie category
Reference Code: CSCM0309 Publication Date: April 2010

DATAMONITOR VIEW CATALYST
Innocent Drinks has achieved unparalleled success in the UK as the foremost player in the smoothies sector. This case study looks at the smoothies category in detail and assesses the company's achievements as it copes with recession, competition and takeovers.

SUMMARY
• The smoothies category in the UK has been growing strongly over the past decade, buoyed by the health trend and consumers' desire for easy and quick ways to attain their fruit and vegetable consumption goals. While the more mature juices category is still the larger of the two, smoothies have retained growth momentum through innovation and the continual introduction of new fruit varieties, overcoming the challenges created by the recession. • Innocent Drinks is the dominant player in the UK smoothie market, successfully defeating new competitors and the recession with its health positioning and quirky marketing techniques. Coca-Cola recently purchased a major stake in the company, but Innocent aims to keep critics of this move quiet by retaining management control and moving into new territories.

Innocent Drinks Case Study
© Datamonitor. This brief is a licensed product and is not to be photocopied

CSCM0309/Published 04/2010 Page 1

Innocent Drinks Case Study

ANALYSIS The UK market for juices and smoothies is buoyant, spurred on by the health trend
The UK smoothie and juice sectors have been buoyant in recent years, as consumers have increasingly sought quick ways to enhance the nutritional quality of their diets. However, smoothies are still a relatively new category in the market, having gained momentum only in the past decade. As such, juices remain the larger sector.

The juices category is larger and more mature, but smoothies are forecast to see double-digit growth
As shown in Table 1, the

You May Also Find These Documents Helpful

  • Powerful Essays

    Jungle Smoothies has been the leader in the smoothies industry for many years. It has several franchised locations in 10 different states and all have similar financial performances. Their top competitors are Jamba Juice and Tropical Smoothies. In recent months, Jungle Smoothies has been experiencing a decline in their profits. As member of the New Product development committee, an assignment was delivered to investigate the original problem that lead to the decrease in profits. The committee performed several interviews with…

    • 2407 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Cerjugo SA

    • 1436 Words
    • 4 Pages

    Per capita beer consumption in the country had been stable for many years. In order to find new opportunities for growth, Cerjugo management decided to expand their product lines into juices. They recognized early on that the juice business was very different from that of beer. In beer, there was little competition and profit margins were high, close to 40 percent. The profit margins for juice would be much lower and there were a number of competitors but they felt they could create a competitive advantage by (1) focusing on “freshness,” i.e., all natural ingredients; (2) by leveraging their deep knowledge of their consumers; and (3) by capitalizing on an already strong retail customer base, which would triple as a result of adding juice products.…

    • 1436 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Jamba Juice

    • 1168 Words
    • 5 Pages

    As noted throughout this analysis, Jamba Juice has a number of organizational issues. Primarily, Jamba Juice mismanaged their rapid growth, which reduced their margins, increased their operating expenses, and stalled their cash inflows. Failure to instill any organizational culture of financial discipline allowed these problems to permeate throughout the company. The seasonal demand of smoothies was another issue, as it created downturns in revenue at certain times of the year. A lack of thoughtful marketing and advertising strategies, especially as Jamba Juice expanded across the nation, failed to take advantage of their strong brand and create more awareness and interest.…

    • 1168 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    This report aims to address strategies for human resource and operations to improve Sunshine Fruit Juice’s business performance. Sunshine Fruits Juice is faced with issues such as damaged bottles, mislabelled bottles and an increased number of industrial disputes. It is highly recommended for Sunshine Fruit Juice to implement the strategies discussed in this report to improve customer and worker satisfaction, which will increase potential sales and the overall business performance.…

    • 2020 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Jamba Juice

    • 395 Words
    • 2 Pages

    Jamba Juice has a huge opportunity to get in the heads of health conscious consumers.…

    • 395 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    It stated "Over the past few years, the UK organic food and drink market has observed year-on-year decline, principally due to continued economic uncertainty following the recession of 2008 and 2009, which resulted in a number of consumers reining in their spending, particularly on higher priced goods such as organic produce. Recent figures have suggested that the UK market began to stabilise in the latter part of 2011, while Key Note has predicted slow but steady growth over the next 5 years. Overall, the market is expected to increase in value by 11.8% between 2012 and 2016, rising from £1.66bn to £1.86bn" This is a positive that it is expected to rise but as you can see from the research into the toys and games industry the market will not be worth the same amount and so there is more opportunity to be successful in the bigger market for the toys and games…

    • 3341 Words
    • 14 Pages
    Best Essays
  • Powerful Essays

    Hnc Marketing Graded Unit

    • 5232 Words
    • 21 Pages

    As a whole, the snack market in the UK from 2004 to 2008 has seen a fall in sales in some areas, and a rise in others. The fruit, nuts, pretzels, popcorn and tortilla snacks all had an increase in year on year sales volumes. Despite this rise in this part of the market, the sales of crisps and chips fell dramatically, specifically between 2005…

    • 5232 Words
    • 21 Pages
    Powerful Essays
  • Better Essays

    Simmons, J. (2008). Innocent: Building a brand from nothing but fruit. London: Marshall Cavendish Limited.…

    • 1641 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    food tech ass task 1

    • 1595 Words
    • 7 Pages

    However, such niche markets tend to overlook the nutritional value within their products, and hardly cater for the health conscious working class citizens. Therefore a liable product to introduce to this consumer market is Breakfast smoothes which are nutritional, easy, convenient and suitable for a health conscious working class citizen.…

    • 1595 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Business Level 3 Unit 2 P2

    • 1438 Words
    • 6 Pages

    Mr Daniel Green started Healthy Drinks two years ago. He started his business with a healthy milkshake in the UK market. Because of his innovativeness and eccentric capabilities, the company experienced increased sales in its first year. However, the company started facing difficulties in meeting its sales targets because too many competitors also entered into the market. Mr Green wants to add new range of drinks, juice or smoothie but he also wants to keep the current products.…

    • 1438 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Boost Smoothies Bar

    • 2928 Words
    • 12 Pages

    It is probably the largest chain of smoothie bars in UK and they also provide snacks along with the fruit juices and smoothies (Mercer, 2007). The major strength of this chain of Smoothie bars is that it is an established brand in UK and provides a comprehensive range of snacks and smoothies. But owing to the rising prices of smoothies, they have not managed to achieve the same growth in revenues and have been expensive to the liking of many. What they have been doing is to expand their product line rather than cutting down costs to capture a larger customer segment (yelp.co.uk, 2014). This is where we can excel as we are focusing on providing quality smoothies and fruit juices at affordable prices by keeping moderate profit margins to cater larger customer segments. Our strategy is to increase profit through more and more customers rather than through high prices or profit margins. We will also be catering home delivery for gaining competitive advantage in the local Fulham…

    • 2928 Words
    • 12 Pages
    Powerful Essays
  • Best Essays

    Discuss and illustrate the extent to which a ‘design culture’ in an organisation can give it competitive advantage.…

    • 2144 Words
    • 9 Pages
    Best Essays
  • Best Essays

    Zecasa

    • 3353 Words
    • 14 Pages

    Mintel Group. (2008). Smoothies, UK, 2008, Broader Market Environment. Retrieved 11 6, 2009, from Mintel Oxygen: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=227765/display/id=423951#hit1…

    • 3353 Words
    • 14 Pages
    Best Essays
  • Satisfactory Essays

    Coca Cola

    • 333 Words
    • 2 Pages

    This paper will first review what factors have contributed to the change in consumers’ demand to more alternatives beverages. Next, it will explore what types of alternative beverages appear to be most appropriate for the company to focus on and why. Finally it will evaluate what role the federal government has played in the shift to alternative beverages.…

    • 333 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Juice Bar and Boost Juice

    • 1218 Words
    • 5 Pages

    Through product differentiation, Boost have been able to set themselves apart from the competition with their healthy products with fresh fruits and vegetables in their drinks. By doing so Boost have been able to target the healthy conscious consumers as well as those who are trying to be healthier. Using the fresh produce it also provides consumers with daily nutritional intake but with a great taste. With all this freshness Boost are still able to compete with brands such as Easyway with their prices being roughly the same. Boost Juice has differentiated through their services by the use of taking people’s names with their orders to make it a much more friendlier environment. Boost is also…

    • 1218 Words
    • 5 Pages
    Good Essays

Related Topics