Juice-Makers Shift Focus
By JOANNA COSGROVE
The low-carb ship has sailed and manufacturers
move on to health-oriented consumers
Last year, the juice
segment was bruised by the “low-carb” movement, which saw carb-conscious dieters shun juices in favor of
lower sugar alternatives. Most major juice labels now have a line designed
to appeal to low-carb dieters, but the low-carb bubble has burst.
“A large number of companies rushed products to
market in order to meet this niche and many of those products suffered from
poor quality and inflated pricing, and that's just not a good long-term
strategy,” says Mark Saur, president, Old Orchard Brands, Sparta,
Mich. “The consumer is smarter than
that and retailers will need to make choices about which SKUs are
performing and which aren’t. I definitely think you will see a
majority of these products and upstarts go by the wayside during
2005.”
But juice manufacturers who committed to the low-carb
movement are turning lemons into lemonade by tweaking their products to
court not just the remaining carb-conscious consumers, but also those who
have a general interest in good health. “A positive lasting effect of
the low-carb diet has been increased consumer interest in eating healthy
and making wise choices when it comes to their diets,” says Saur.
Old Orchard’s entire line of low-carb products
has been re-launched under the name Healthy Balance because “they
offer a healthy balance of carbs, calories and sugar,” according to
Saur. The line has four Splenda-sweetened products — Cranberry Juice
Cocktail, Cranberry Raspberry Juice Cocktail, Cranberry Grape Juice
Cocktail and White Cranberry Juice Cocktail. Each juice is fortified with
130 percent of the daily value of vitamin C.
“Today’s consumers are definitely
interested in health and wellness, and food and beverage products that
provide meaningful benefits, whether that’s low-carb, low-fat,
vitamin-enriched, 100-percent juice… whatever,” says Anne Hart,
product manager, bottled, at Welch’s, Concord, Mass. “At the
same time, consumers express a preference for products that taste good.
“Our focus has
always been to deliver the options and variety consumers want, but to do so while always maintaining the quality and great
taste of our products,” she adds. “We want consumers to enjoy
the taste experience while also feeling good about what they’re
drinking and what they’re buying for their families.”
Welch’s Light White Grape, Light Grape and Light
White Grape Peach Juice Cocktails have 70 calories per serving and deliver
vitamin C and 10 percent of the recommended daily intake for calcium. For
those who may be especially conscious of their sugar, carbohydrate or
caloric intake, Welch’s Light Juice Cocktails are sweetened with
Splenda.
Old Orchard’s Saur says continued product
innovation — packaging, flavor, variety or sizes — is the key
to future growth in the juice segment. Old Orchard recently launched a line
of nectars with bilingual labels, a line of certified organic juices, a
line of 10-ounce single-serve drinks to expand consumption of products
out-of-home, and a line of frozen drink blends in Margarita, Strawberry
Daiquiri and Piña Colada flavors.
“Consumers today are also focused on
convenience,” Hart says. “They want packaging that is easy to
grip, that won’t spill [and] that’s portable. And if it has
fun, contemporary graphics, so much the better.”
Value continues to be a high-ranking consumer concern.
“Cost will always come into play, but what consumers are really
looking for is value,” Hart says. “The purchasing decision
ultimately depends on the perception of how well a product fulfills its
promise and delivers the taste and nutritional
benefits it says it will.”
Pomegranate juice boosts juice numbers
Overall, the refrigerated
juices and juice drink category suffered a combined minimal, 2.5 percent
decline since last year. The refrigerated juice subcategory turned in a
solid performance with sales of $52.8 million, an increase of 172 percent.
This success was due in large part to an exotic newer entry:
pomegranate juice.
Pom Wonderful brand pomegranate juice was the
year’s No. 1 brand at the top of Information Resources Inc.’s
refrigerated juice category, pulling down sales of over $46 million —
a whopping 345 percent sales increase since last year. Coming in a distant
second was Odwalla with $2.4 million in sales.
Top brands of refrigerated orange juice | |||
Brand | DOLLAR SALES | % CHANGE VS. PRIOR YEAR | MARKET SHARE |
Tropicana Pure Premium | $1,160,838,000 | -5.3% | 44.1% |
Private label | $408,815,800 | -13.2% | 15.5 |
Minute Maid Premium | $407,749,700 | -15.3% | 15.5 |
Florida’s Natural | $233,273,800 | -3.4% | 8.9 |
Simply Orange | $150,807,100 | 58.1% | 5.7 |
Minute Maid Premium Heart Wise | $20,333,910 | 4,992.4% | 0.8 |
Citrus World Donald Duck | $18,005,580 | -6.7% | 0.7 |
Tropicana HealthY Heart | $16,608,070 | 417,287,963.3% | 0.6 |
Minute Maid Premium for Kids | $15,628,740 | 3,411.5% | 0.6 |
Dole | $14,428,840 | -24.8% | 0.5 |
Category total | $2,632,805,000 | -4.4% | 100.0 |
Source: Information Resources Inc. Total food, drug and mass merchandise, excluding Wal-Mart,for the 52 weeks ending Nov. 28, 2004. |
Top varieties of bottled juices | ||
VARIETY | DOLLAR SALES | % CHANGE VS. PRIOR YEAR |
Apple juice | $524,221,100 | -0.4% |
Cranberry cocktail/juice drink | $618,726,600 | -2.5% |
Cranberry juice/juice blend | $155,709,900 | -8.2% |
Fruit drinks | $722,495,400 | 1.7% |
Fruit juice blend | $235,680,200 | 0.6% |
Grape juice | $225,921,600 | -7.3% |
Grapefruit juice | $52,241,200 | -12.4% |
Lemonade | $146,340,100 | 20.2% |
Orange juice | $29,041,880 | -31.5% |
Tomato/vegetable juice/cocktail | $290,271,700 | -1.3% |
Source: Information Resources Inc. Total food, drug and mass merchandise, excluding Wal-Mart, for the 52 weeks ending Nov. 28, 2004. |