Getting Juiced Washington DC

Consumers want more—much more—of what the fruit juice and juice smoothie category has to offer.

And more is on the way. Driven by a torrent of new product and flavor introductions and line extensions, the category is posting strong results and creating lots of excitement at retail.

"If you look around the store there is a pretty significant trend toward premium juices and healthier-for-you juices," says Kurt Vetter, senior vice president of sales, POM Wonderful, Los Angeles. "The super-premium juice category has exploded in the produce section with really good for you juices that aren't just necessarily your grandma's juice. They're new and different and interesting and healthy from us to smoothies to probiotics to chai tea.

"Even our Pom Wonderful Pom tea has high levels of antioxidants in it based on the extract from the peel of the pomegranate," says Vetter. "So I think it's all about health. They also have to meet the hurdle of being pretty good tasting, otherwise they don't get bought a second time."

Marketers and retailers are getting plenty of help from the medical community. According to a pair of studies published in the April issue of American Journal of Preventative Medicine, Americans are missing the mark in meeting their daily-recommended servings of fruit and vegetables. It's a message that pervades the media, and is stoking already high consumer interest.

Sales Solid, Units Down

The overall refrigerated juice category is performing well when it comes to dollar sales. For the 52 weeks ending Oct. 7, 2007, Information Resources Inc. (IRI), Chicago, shows a 4.9% increase, though units are down 8.6%, due to the higher costs associated with citrus thanks to foul weather—freezes, hurricanes, floods—in previous harvest cycles.

"The category has been under tremendous pressure, probably going back three or four years now," says Charles Torrey, group director, Minute Maid, a brand of Coca-Cola North America, Atlanta.

Cranberry juice and cranberry cocktail drinks are showing strong gains, the result of consumers' desire for more healthy beverages and, to a lesser degree, cranberry growers' joint marketing efforts. Orange juice dollar sales rose 4% for the same period, but units dipped by 14.5%, again a result of disturbances in the citrus supply.

Blended fruit juices are also posting solid numbers, although Pom Wonderful is down 35% for the same period, according to IRI. According to Vetter, that was the result of bad 2006 weather that decreased supply. "We had to essentially go to all of our customers and discontinue our large-size (48 oz.) juice. We also had to allocate all of our orders for about a nine-month period. We got through that situation, and we have a huge crop this year. If you look at the shorter periods of time, the four- and 12-week, you see different trends."

'Growing Like Crazy'

"For us it's growing like crazy," says Chris Brandt, brand director, Odwalla Inc., also owned by Coca-Cola North America. Distribution continues to grow throughout the United States, with Odwalla enjoying penetration in the West and Northeast. The brand is found at retail in both the beverage aisle and the produce department, where it competes in what it calls the "natural-healthy" sub-category. The Odwalla brand includes juices, juice drinks, soy beverages, soymilk and food bars.

The latest new item from Odwalla is called Serious Energy, which Brandt calls "an alternative to a lot of the preservative- or sugar-laden energy drinks out there." Another item set for rollout in February is Serious Focus, which promises enhanced concentration. Also in 2008, the company will look to expand usage occasions. "Most of our beverages are consumed before lunch," says Brandt.

In September, Naked Juice, Azusa, Calif., a player in the super-premium juice category, introduced Naked Juice Probiotic, the first 100% juice smoothie with probiotics that aid in digestive and immune health.

The national rollout follows a successful test launch in club stores during the summer. During the test, Naked Juice dispatched ambassadors to educate consumers and invite them to take an online survey to get their "gut reaction" to the first juice smoothie to combine a blend of mango, orange and pineapple with probiotics. The response, the company says, was "overwhelmingly positive." The 10 oz. bottles carry a suggested retail price of $2.99.

Tropicana Organic certified organic juice blends, a new addition to the Tropicana portfolio, offers two 100% pure and natural juices, Orange Juice and Orchard Medley, made from fruits grown on certified organic farms. Tropicana Organic Orchard Medley, a blend of apple and pear juices, is retail priced at $3.99 for a 64 oz. carton. Tropicana Organic Orange Juice is $4.99 for the same size. Both are available at Wal-Mart stores nationwide, as well as at select Whole Foods and other major grocers.

Tropicana "always looks to meet consumers' needs through innovation," says spokesperson. Karen May. "Consumers were requesting organic options. Their request, coupled with the growing trend of organic beverages—organic sales are $4.9 billion on growth of 20%—encouraged us at Tropicana to introduce organic options."

Minute Maid Enhanced

Minute Maid Enhanced Juice line includes Multi-Vitamin and Active varieties, as well as updated packaging for its four-year-old Minute Maid Heart Wise variety, which is enhanced with 1 gram of plant sterols (natural plant extracts) per 8 oz. serving. Minute Maid Active contains 750mg of Glucosamine HCl, a key building block of healthy joints. The Multi-Vitamin product includes 16 essential vitamins and minerals, including Vitamins C, A, E, Zinc and Selenium, Calcium, Vitamin D, Phosphorous, Magnesium, Manganese and Chromium.

In September, Minute Maid added a Pomegranate-Blueberry flavored 100% fruit juice blend to its line of enhanced Juices. "This is the first product we've put out that really addresses nourishing your brain," says Torrey.

The Minute Maid Enhanced Juice line is supported with a fully integrated marketing program that includes national print and television advertising, point-of-purchase displays, an interactive website, public relations and national in-store sampling programs. Minute Maid Enhanced Juices come in 59 oz. PET bottles featuring contemporary design and "easy pour" side grip.

Minute Maid says "poor orange crop forecasts in October and continuing orange solids price increases" led to the development of Minute Maid Breakfast Blends, which is positioned as a value brand. "Faced with fewer opportunities to offer consumers discounts on orange juice, retailers were looking for a quality juice product that could be featured at an affordable price point." The line "offers healthy breakfast beverage options at a price point attractive to consumers seeking value through quality and affordability." The line is available in three varieties — Citrus, Tropical and Berry.

Torrey says the year ahead will see Minute Maid Juice "put our efforts behind solidifying the recent introductions we just put into the market. We figure we've got to give the category and ourselves a bit of a rest, to make sure we're supporting them appropriately and that they get a chance to show their stuff."

In May, Coca-Cola's Simply Orange Juice Co. expanded its portfolio of not-from-concentrate chilled juices and juice drinks with the introduction of new 13.5 oz. single-serve carafes: single-serve Simply Orange Original, Simply Orange Calcium, Simply Lemonade and Simply Limeade varieties. The new package option allows provides a convenient, portable container for the growing on-the-go consumer base.

The Simply line has expanded to include four different varieties of Simply Orange: Original, Calcium, Grove Made and Country Stand. All of them are available in multiple packages: 59 oz., 89 oz., 59 oz. twin pack and 13.5 oz. single-serve bottles.

"With the incredible growth we've seen in the original 59 fl. oz. package size for Simply products, we're confident consumers will respond to these new, convenient versions of our Orange Juice, Lemonade and Limeade," says Ashley Schmidt, senior brand manager, Simply Orange.

Simply Orange was launched nationally in 2003. Simply Lemonade and Simply Limeade both launched nationally in 2006.

Last February, Simply Orange introduced an 89 oz. family-size carafe for the two top-selling orange juice varieties, Simply Orange Original and Simply Orange Calcium. The company says retailers can expect additional new product launches as part of the Simply line expansion. The company is supporting the line with a comprehensive marketing program that includes a multi-media advertising plan, a public relations campaign, consumer promotions and in-store sampling.

In August, Simply Orange added a pair of items to its line: Simply Apple, a pure-pressed, 100% not-from-concentrate premium apple juice, and Simply Grapefruit, a 100% not-from-concentrate premium grapefruit juice. Both began shipping to retailers in mid-September. Simply Apple and Simply Grapefruit come in 59 oz. clear carafes, with a suggested retail price of $3.49 and $3.89 respectively.