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Fruit Juice and Juice Drinks

Fruit Juice and Juice Drinks

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Fruit Juice and Juice Drinks - UK - November 2008

In 2008 the on- and off-trade market for fruit juices and juice drinks was worth £3.2 billion, up 28% on 2003 sales values but volume growth slowed in 2007 and 2008 as extending consumption beyond breakfast remained a challenge. Despite lots of consumer touch points which juice and juice drinks deliver on – like health, naturalness, and taste – and positive demographics, it remains a competitive marketplace. The latter half of 2008 witnessed shifts in consumption, which polarised the market and enabled the category to regain some of the ground lost to smoothies. Looking forward, manufacturers will need to extend appeal beyond the breakfast table to win volume because juices already enjoy high levels of penetration and frequency as a result of habitual drinking by consumers in the morning. Key report themes: How does the increased health awareness affect the fruit juice and juice drinks market? How do fruit juices and juice drinks stand against the fierce competition from other soft drinks? What are the new drivers in the market? How has the economic slowdown affected the market during 2008? What have been the key themes in new product developments over the last few years? The outlook of the future of the market

Issues in the Market
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In 2008 the on- and off-trade market for fruit juices and juice drinks was worth £3.2 billion, up 28% on 2003 sales values but volume growth slowed in 2007 and 2008 as extending consumption beyond breakfast remained a challenge. Despite lots of consumer touch points which juice and juice drinks deliver on – like health, naturalness, and taste – and positive demographics, it remains a competitive marketplace. The latter half of 2008 witnessed shifts in consumption, which polarised the market and enabled the category to regain some of the ground lost to smoothies. Looking forward, manufacturers will need to extend appeal beyond the breakfast table to win volume because juices already enjoy high levels of penetration and frequency as a result of habitual drinking by consumers in the morning.

• •

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Key themes
• •
• • How does the increased health awareness affect the fruit juice and juice drinks market? How do fruit juices and juice drinks stand against the fierce competition from other soft drinks? What are the new drivers in the market? How has the economic slowdown affected the market during 2008?

• •

What have been the key themes in new product developments over the last few years? The outlook of the future of the market

Mintel last examined the UK market for fruit juice and juice drinks in November 2006. Other Mintel reports of relevance include: - Smoothies – UK, Market Intelligence, October 2008 - Healthy Eating and Drinking – UK, Consumer Goods Intelligence, September 2008 - UK Retail Briefing – Food and Drink Focus, August 2008 - Pub Catering – UK, Leisure Intelligence, July 2008 - Snacking on the Go – UK, Market Intelligence, April 2008 - Drinking Habits – UK, Consumer Goods Intelligence, February 2008 - Premium Soft Drinks – UK, Market Intelligence, January 2008 - Low-alcohol and Alcohol-free Drinks – UK, Market Intelligence, January 2007 -Adult Soft Drinks – UK, Market Intelligence, January 2006 - Food and Drinks NPD – A Review of Key Trends – UK, Consumer Goods Intelligence, December 2007 - On-trade Soft Drinks – UK, Market Intelligence, September 2007 - Fresh Fruit and Vegetables – UK, Market Intelligence, January 2007 and the forthcoming: - Carbonated Soft Drinks – UK, Market Intelligence, February 2009.
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Definition
This report looks at the retail market for fruit juice and juice drinks in the UK. Sales through on- and offtrade outlets are included. Pure fruit juice contains nothing but fruit juice at the same strength and consistency as when the fruit was squeezed. Most fruit juices are imported in frozen concentrate, but the sector also includes freshly squeezed products and not-from-concentrate (NFC) juices. Juices that are made from concentrate are 100% pure but are reconstituted to their original strength after transportation. The natural water that is present in the fruit is evaporated, water is replaced on arrival in the UK and the juice is pasteurised. The juices produced in this way can be long-life or chilled, depending on the intensity of the pasteurisation process. Freshly squeezed juices are 100% pure squeezed fruit juices that are sold pasteurised or unpasteurised. They contain no added water, sugar, colour or preservatives and are merely chilled after squeezing.

Juices that are not reconstituted from concentrate are 100% pure and contain no added water, sugar, colour or preservatives. The juice is squeezed and then gently pasteurised, giving a longer life than freshly squeezed juices. Juice drinks are still drinks that contain less than 100% fruit juice and have added ingredients, mainly water but also sweeteners, flavourings, colourings and/or vitamins. A juice drink must contain a minimum of 2% comminuted fruit, although most have a much greater proportion. This sector also includes ready-to-drink (RTD) versions of concentrated squashes eg Ribena. Smoothies are excluded from the report, although they are mentioned where relevant for purposes of comparison. Value figures throughout this report are at retail selling prices (rsp) unless otherwise stated. Market sizes at constant 2003 prices have been calculated using Mintel’s drinks deflator. Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland.
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Abbreviations
ASA Advertising Standards Authority

BMRB

British Market Research Bureau

CCE

Coca-Cola Enterprises

NAS

No added sugar

NFC

Not From Concentrate

Nielsen Media Research

For further information, please contact nmr.communication@nielsenmedia.co.uk

GAD

Government Actuary's Department

GNPD

Global New Products Database

FSA

Food Standard Agency

BOGOF

Buy one Get One Free

NPD

New product development

NTC

Newsagent Tobacconist Confectioner

POS

Point of Sale

RTD

Ready To Drink

Market in Brief
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Juices dry up in the morning

Market growth has slowed in 2007 and 2008 despite growing numbers of key consumer groups and great health credentials. Competition from smoothies and the failure to exploit sales opportunities beyond breakfast have inhibited growth. Juice drinking is linked strongly to the breakfast meal occasion, which is still enjoyed by the vast majority of consumers, albeit in changing locations.

...to Internal Market Environment - Wakey! Wakey! Rise and shine with breakfast
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Tough times tempt thriftier drinkers

The credit crunch has split the market for juices between premium and value products during the latter half of 2008. Premium juices have made gains at the expense of smoothies during 2008 as consumers have sought drinks that deliver on health, taste and convenience for less.

...to Broader Market Environment - Credit crunch may not bite into juices
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Keep it naturally healthy

Naturalness has been the key theme in juice and juice drinks NPD during 2008 with removal of artificial ingredients the top claim. Young people aged

16-24 are most interested in added health benefits making students a prime target for functional juice products. • Demand for natural products has created strong demand for juices that are sold at a premium. Chilled products have grown because of consumers’ perception that fresh is healthiest but ambient juices are the cornerstone of the own-label and children’s lunchbox offerings.

...to Internal Market Environment - Juice ticks the one-of-five box
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To the lunchbox and beyond

Pure fruit juices account for a larger share of the market, but juice drinks have shown stronger growth. The regulation of school-based eating has had a positive impact on sales of kids’ fruit juice drinks but improving adult appeal is an emerging theme. Products for adults are stealing market share from children’s drinks and there has been little effort put into kids’ product innovation in 2008, after a year of reformulation that tapped into the lunchbox market.

...to Broader Market Environment - Lunchbox launches
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Concentrated competitive arena

Both the on- and off-trade markets for juice and juice drinks are dominated by one leading company. PepsiCo has increased its dominant share of off-trade retail sales with market-leading Tropicana, which is well supported and positioned on the breakfast table to keep heavy users engaged. Own-label products account for over half of fruit juice sales. Britvic leads the on-trade with a handful of lines going almost unchallenged and has a dominate position in this category. Convenience stores and garage forecourts are driving growth in the off-trade while the growing popularity of pure fruit juice has boosted sales through leisure.


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The future’s healthy

Looking forward the market is expected to pick up, driven by continued interest in healthy eating, which will translate into demand for more functional drinks at premium prices. Premiumisation will be more evident in kids’ drinks as parents seek to give their children healthier drinks and are prepared to spend a little bit more. Volume will increase as more people drink juices as alternatives to other soft drinks throughout the day and on-trade potential is realised. Attitudinally, there are three key groups to target. The most attractive of these are an older, more traditionalist drinkerand a younger, more upmarket and health-conscious customer. Socio-demographic indicators for all key

consumer groups have been favourable in the past two years and look positive for the future. Internal Market Environment
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Key points
• Fruit juices fit perfectly with the current trend towards healthy eating and the achievement of the ubiquitous recommended five portions of fruit and vegetable per day, for adults and children alike. Demand for natural products has created strong demand for juices that are sold at a premium. Juice drinking is linked strongly to the breakfast meal occasion, which is still enjoyed by the vast majority of consumers, albeit in changing locations.

• •

...to Appendix – Internal Market Environment On The Shelves From Mintel GNPD

Orange Apple & Juice with Bits Blackcurrant Drink Waitrose - Tesco PlcApple LtdOrange Juice & Blackcurrant with Bits Drink - Tesco Plc Waitrose Ltd
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Juice ticks the one-of-five box
• Health trends continue to shape the fruit juice market in a positive way. As the Figure below shows, health is a key issue for consumers and they have been active in pursuing various strategies to improve it. The FSA’s monitoring of five-a-day consumption shows that in 2007, 58% of UK adults had eaten five or more portions of fruit and vegetables the previous day, compared with 55% in 2006. Awareness of the recommended daily intake had also increased over time to three quarters of adults.FSA’s The government carefully restricts manufacturers from claiming that they contain more than one measure of the five-a-day target in order to encourage consumption of a variety of fruit and vegetables, with a maximum of one portion being derived from any one type. Consumers are already aware of how conveniently a glass of juice contributes to the five daily recommended portions of fruit and this awareness will only continue to grow, helping to increase penetration and sales further.

FIGURE 1: TRENDS FOR ATTITUDES TO FOOD/HEALTH, 2003-07 Base: Adults 15+ 2003 2005 2007 Change 2003-07

%

%

%

% points

I am prepared to pay more for foods that don't contain artificial additives

36.9

46.8

43.5

6.5

I always think of the calories in what I eat

21.3

22.6

24.0

2.7

I think health foods are only bought by fanatics

16.4

14.1

14.7

-1.6

I try to include plenty of fibre in my diet these days

54.8

58.9

60.0

5.2

I think fast food is all junk

33.7

40.1

38.8

5.0

I consider my diet to be very healthy

38.3

42.3

43.0

4.7

Note: All data is taken from a TGI sample of 25,000 adults
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Source: GB TGI, BMRB Q2 (January-December), 2004/06/08BMRB

See Also Carbonates - UK
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Nature’s bounty is good for you

Consumers are increasingly showing a preference for natural health over health delivered through artificial functional ingredients, and are prepared to pay more for foods that don’t contain any artificial additives (see Figure above). Demand for naturally healthy products has caused manufacturers to revamp their products to improve their natural credentials. Two fifths (41%) of product launches in 2008 claim to contain no additives or preservatives. Products made from 100% juice have also seen greater demand because consumers appreciate the fact they are unadulterated. They are also attractive to consumers who are watching their calorie intake because they contain no added sugar (although they are high in natural sugars). Similarly there is increasing activity in the organic arena. A ban on artificial sweeteners in schools has provided an opportunity for juice drink brands aimed at children, particularly teenagers, to reformulate. The emphasis on naturalness has seen manufacturers incorporating a wider range of unusual ingredients, like flowers, which deliver health, function and taste without recourse to man-made components; at the same time adding exoticism, interest and variety, which has helped to keep consumers engaged and deliver sales at premium prices.

• • •

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Children’s health is a priority
• Fruit juices are popular with children – in 2007 nearly nine in ten children aged 7-19 have drunk small cartons or bottles of juice or juice drinks a week and volume consumption is rising as increasing numbers drink three or more per week.

FIGURE 2: TRENDS FOR FRUIT JUICE AND FRUIT DRINKS CONSUMPTION AMONGST 7-19-YEAR-OLDS, 2003-07 Base: kids aged 7-19 2003 2005 2007 2003-07 % change

%

%

%

Number of small cartons/small bottles:

More than 5

11.6

13.1

13.7

+2.1

3-5

18.8

19.3

22.3

+3.5

1 or 2

32.5

31.9

30.6

-1.9

None

15.4

14.7

13.0

-2.4

Who buys:

Your parents

59.6

60.9

62.0

+2.4

Yourself

20.2

19.9

20.2

0

Brother/sister

0.6

0.6

0.6

0

Someone else

3.3

2.9

3.3

0

Where drink:

At home

49.3

50.8

51.6

+2.3

At school/college/work

33.1

32.3

32.2

-0.9

On the move/outside

17.1

16.0

16.7

-0.4

Somewhere else

7.6

7.4

7.9

+0.3

Taken from the Youth TGI survey of around 6,000 youths aged 7-19
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Source: Youth TGI, BMRB Spring 2004/06/08/MintelBMRB

Increasingly children and teenagers are drinking small cartons or bottles of fruit juice and fruit drinks at home so small packs have become a convenient portion-control mechanism as much as an on-the-go solution. Parents remain the key purchasers, albeit they are subject to large volumes of pester power in their decision-making. Pure fruit juices have been the outright winners in the push to achieve the fivea-day ideal, particularly in the children’s market where packs have been portioned and positioned as ‘one of your five-a-day’. This provided parents with a relatively tasty, easy solution to the daily fruit and veg portion battle. Fruit juice drinks have been reformulated to deliver a higher fruit juice content too. As children reach secondary school age they are more likely to be buying their own drinks and consuming them away from home, causing a shift in product choice from pure juices to juice drinks that deliver taste refreshment and hydration. Conveniences stores, NTCs and schools are important sales channels for these users.

• •

See Also Fruit and Vegetables - UK Cordials - UK
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Wakey! Wakey! Rise and shine with breakfast
• • Mintel’s exclusive consumer research for this report shows that morning is the principal time of day when fruit juices and juice drinks are consumed. The healthy eating movement has targeted breakfast as a critical nutritional occasion citing scientific evidence of the benefits to health, weight and performance that a nutritional breakfast can deliver. According to Mintel’s Breakfast Cereals – UK, Market Intelligence, February 2008, only 15% of consumers do not eat breakfast, while some 23 million adults in the UK aged 15+ eat breakfast cereal on at least a daily basis, suggesting that breakfast as a mealtime occasion is alive and kicking. Even if consumers skip breakfast, many will still have a juice.

The importance of breakfast as a healthy start to the day has buoyed up juice sales, in particular premium and single-ingredient juices. However, a heavy association, and therefore reliance, on this one meal per day is a barrier to future penetration growth, which could be achieved through consumption beyond the morning. The challenge for fruit juice manufacturers is the changing format and location of the breakfast eating occasion, which is shifting out of home towards school, college or work or to a meal eaten on the go. Juices are relatively portable and well placed to benefit from trends towards on-the-go meals and out-of-home snacking. However, their failure to fully exploit this potential to date clearly shows that they require some development attention, both in formulation and format, to make them more of a mobile choice or something people will drink later in the day.

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Ethical and organic
• Ethical considerations are having an increasingly important influence over purchasing decisions with organic and fair trade products becoming more popular and mainstream. Organic fruit juice ranges have benefited from this trend but there remains considerable potential for trading on ethical issues with the fair trade potential going virtually untapped. Packaging has been as much about recycling and premiumisation as convenience in the past two years with glass making a big comeback on both counts.

FIGURE 3: TRENDS FOR FORMAT OF READY-TO-DRINK FRUIT AND VEGATABLE DRINKS (INCLUDING SMOOTHIES), 2004-08 Base: adults aged 15+ 2004 2006 2008 Change 2004-08

%

%

%

% points

Bottles

16.0

19.3

28.3

12.3

Cans

4.0

4.1

3.8

-0.2

Small cartons (250ml) 21.8

20.3

24.8

3

1-litre cartons

55.5

54.6

68.5

13

Taken from the TGI survey of around 25,000 adults
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Source: TGI, BMRB Q4 (July-June) 2004/06/08/MintelBMRB

With ABs being key environmental warriors and key fruit juice consumers, environmental issues will very much be on the market agenda in the future so recycling, carbon footprint, local, organic and fair trade will increase in influence. In the short term, as the credit crunch bites, volume sales may be affected as consumers ration their intake and trade off ethical concerns for financial prudence. However, the cost benefits of pure juices compared to smoothies may attract more users. Smoothie drinkers have a similar profile and also exhibit ethical concerns. Ambient products may benefit in the long term because they have a lower carbon footprint than chilled products but there will always be a trade-off between taste and other factors such as ethics so manufacturers will always have to deliver great taste in conjunction with other benefits. Now that cost is so much more of an issue, the environment/organicpositioned products may lose their impact on behaviour. Lightweight packaging, which makes savings in the transportation of liquids, will also emerge. The pace of change may be slowed in the short term as people on tight budgets look to their own needs before those of the planet and the rest of humanity. Local will probably win over produce from distant shores.

• • •

See Also Healthy Eating and Drinking - UK
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The battle for shelf space
• One of the biggest challenges for juice suppliers is securing shelf space in the competitive fresh food arena in-store, particularly for the dwindling number of independent producers in a market where big companies with multi-product portfolios dominate. Consumer demand for fresh food continues on a high because it is perceived to be healthier than ambient or frozen, so much of manufacturers’ NPD and merchandising effort is going into fresh and chilled produce, creating a veritable battle for listings and shelf space, in both the on- and off-trade. Chilled juices have been a fast-growing category in this market but winning

shelf space will become a potential barrier to growth restricting the potential to showcase new products and to offer promotions. • NFC juices have been the strongest-growing segment and have cannibalised sales from freshly squeezed products. Multiple retailers have been instrumental in pushing this switch because they want products with a longer shelf life to reduce waste. Consumers seem to have accepted this alternative option because suppliers have successfully managed to maintain the quality consumers like.

Broader Market Environment
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Key points
• • • • Socio-demographic indicators for all key consumer groups have been favourable in the past two years and look positive for the future. The credit crunch has split the market for juices between premium and value products during the latter half of 2008. The regulation of school-based eating has had a positive impact on sales of kids’ fruit juice products. On-trade sales opportunities remain largely untapped.

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Lunchbox launches
• In anticipation of these new regulations manufacturers moved to take advantage of this new source of business resulting in a rash of 28 new kids’ product launches in 2007, nearly all juices in lunchbox-sized cartons of 200250ml. Concerns about sugar and a ban on artificial sweeteners in schools were further motivation for juice drink brands to adapt and have pushed the natural low-sugar trend in kids’ drinks. According to TGI data (see Appendix), girls and primary school age children are most likely to drink juice and juice drinks with no added sugar. Britvic Mintel believes that the kids’ sector remains a great opportunity, and with the recent decline in launches targeted at it during 2008, growth has not been as impressive as it could have been. Capitalising on this trend through marketing has been hampered by the government’s policing of advertisements to children, which has banned advertisements for foods deemed high in fat, sugar or salt during any children’s programmes, on any dedicated children’s channels or during prewatershed adult shows that are popular with children. In addition, new rules governing advertising to primary school children ban the


use of celebrities, licensed characters, free gifts or health and nutrition claims.
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Government polices the school lunchbox
• As many children rejected the healthier school lunch and switched to a lunchbox, the government has turned its attention to what children are bringing in from home for lunch. Under government proposals released in January 2008, head teachers are now required to draw up healthy lunchbox policies to educate parents as to what makes a nutritional packed lunch. Teaching or catering staff are permitted to check what pupils are bringing in their sandwich boxes and can congratulate with stickers and letters home for those that meet guidelines. Within this environment, where peer pressure is very strong among both pupils and parents, the government is gradually creating a healthier eating culture in schools, which creates demand for fruit juices in a lunchbox format. TGI data (see Appendix) show that in 2008 some 37% of children aged 7-14 were drinking fruit juice and juice drinks at school, with girls and those at primary schools the key users. This is a small, but positive increase from previous years.

See Also Children's Snacking Market (The) -UK
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The pub renaissance needs some work
• The smoking ban has made food the lynchpin of success in the pub trade. After a significant facelift and the offer of cleaner air, pubs are attracting more women, families and fiftysomethings. On-trade drinking habits are shifting with this new clientele, particularly to wines and ciders, both of which go down well with food, but juice is very much a breakfast drink for adults rather than an accompaniment to lunch and dinner. A limited lack of fruit juice offering – principally comprising Britvic and J2O – is making some gains from a low base but not exploiting this opportunity. With soft drinks prices that often match alcoholic drinks, consumers want options that justify their high price tag.Britvic Fruit juice will not automatically be the soft drink of choice unless manufacturers invest in NPD to build exciting propositions that are compatible with food. Juices also have to compete with a growing repertoire of premium softdrinks aimed at adult drinkers, like Shloer and Amé, or loweralcohol drinks, supported by more aggressive on-trade POS promotions The competition for space is intense and companies need to prove themselves to get a listing. More families in pubs are boosting sales of juice to kids but manufacturers should get active when it comes to adding interest and excitement to this offering too. Family time out is special and may be one occasion when health

makes concessions to indulgence, and kids want something other than what they find in their school lunchbox every day, which leads to the need for development of choices for children in pubs. See Also Pub Catering - UK
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Juice companies press for a drop in VAT
• • Under current UK tax law pure fruit juices are classed as luxury goods and as such attract VAT. VAT is not payable on foods that are deemed essential. Attempts by several producers and leading retailers to lobby for a reduction in the rate of VAT levied on pure fruit juices have failed and at present look unlikely to succeed. Therefore prices for these products to the consumer will be elevated and manufacturers constrained in terms of offering significant price promotions.

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Failing harvests squeeze margins
• Raw material costs rose markedly in 2007 due to tight global supply of oranges and apples, which account for a large proportion of the market, both for single juices and juice blends. Apple juice is the staple of the kids’ juice market. Rising raw material prices put retail prices up. Orange and apple juice prices now appear to be coming down but poor crops of pineapples in Thailand and the cessation of EU subsidies on tomatoes are squeezing margins and putting prices up in other segments. Rising unit prices have caused a downturn in the prevalence of BOGOF promotions, which had become prevalent in the 100% juice category, particularly own-label. Poor citrus crop harvests will continue to influence pricing strategies. Manufacturers may be forced to scale back promotional price deals and pass some of the rising raw material costs on to consumers. Rising fuel costs have only added to price inflation.

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Super-fruity
• The demand for naturally healthy food and drink has led to a massive demand for superfoods. Juice manufacturers have used superfruits heavily in new products and formulations (see Who’s Innovating?). In an attempt to protect consumers from misleading claims, the EU requires any health claims in relation to ‘superfoods’ to be backed by scientific evidence and now defines specific claims such as low fat, low salt and low

sugar precisely. • These regulations came into force in July 2007 but manufacturers have been granted a 15-year period of adjustment before compliance will be fully enforced.

See Also On-trade Soft Drinks - UK
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Young and old keep the glass topped up
FIGURE 4: STRUCTURE OF THE UK POPULATION, BY AGE, 2003-13

Source: National Statistics/Mintel

According to consumer research conducted for this report, the two most active consumer groups for fruit juices are Juice Regulars aged 55+ and healthconscious youngsters aged 16-24 whom Mintel have dubbed Health conscious. Between 2003 and 2008 the number of adults in both key groups increased by 9% maintaining a solid base of engaged consumers. A forecast decline in the number of 15-19-year-olds between 2008 and 2013 will subdue growth amongst the student population, although the number of 20-34-year-olds is expected to increase. The key importance for manufacturers is to make sure that current 15-19s take their behaviour with them as they grow older. The anticipated 11% rise in the number of 45-54-year-olds underlines the importance of meeting the changing needs of this age group who make up a large proportion of frequent juice drinkers. This group is approaching old age and looking for anti-ageing products as well as products that help to prevent age-related health problems. A fall of less than 1% in the children’s population aged 5-14 to 2013 will ensure that demand for juices, particularly lunchbox products, will remain steady.

• •

See Also Vitamins and Supplements - UK Premium Soft Drinks - UK
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Students laden with juice
• Students are a significant consumer group for fruit juices and juice drinks.

FIGURE 5: NUMBER OF STUDENTS IN HIGHER EDUCATION INSTITUTIONS, 2000/01-2005/06 ‘000 Index

2000/01 2,094

100

2001/02 2,199

105

2002/03 2,296

110

2003/04 2,369

113

2004/05 2,424

116

2005/06 2,460

117
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Source: Higher Education Statistics Agency, Students in Higher Education Institutions 2000/01-2005/06

Student numbers have increased by a fifth since 2000 as government policy has promoted the benefits of staying on in formal education for longer so demand for fruit juice has risen. Morning consumption amongst this group is high but increasingly out-of-home and on-the-go consumption are creating demand for new formats and packaging.

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Pricey sophistication for ABC1s
• ABC1s are the keenest consumers of fruit juices. ABs are more likely than any other socio-economic group to consume fruit juices more than once a week.

FIGURE 6: FORECAST ADULT POPULATION TRENDS, BY SOCIO-ECONOMIC GROUP, 2003-13 2003 2008 (est) 2013 (proj) % change % change

2003-08

2008-13

AB

12,123

13,583

15,334

12

12.9

C1

14,008

14,999

16,007

7.1

6.7

C2

10,127

10,178

9,910

0.5

-2.6

D

7,956

7,938

7,656

-0.2

-3.6

E

4,412

3,974

3,673

-9.9

-7.6

Total 48,626

50,673

52,580

4.2

3.8

download into spreadsheetcreate new graph
Source: National Statistics/GAD/MintelGAD

Growth in the number of adults classified as more affluent ABC1s has contributed to greater demand for fruit juices and will continue to do so in the future. ABs tend to be more interested in health issues, natural eating and are willing to pay a premium for organic products. However, this group’s interest in cooking at home and preparing food from scratch may mean that some will opt to create their own juices, especially as they are also taking up allotments as part of the recent resurgence in the ‘grow your own’ movement, which will enable consumers to make their own berry juices for example. To keep ABs buying, manufacturers will need to push the freshness and provenance of their products. Organic local ingredients with a premium reputation and a short, quick journey from orchard or grove to glass will appeal, as will indigenous hedgerow crops like elderflower, sloes and hips.

• •

See Also Vending - UK
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Credit crunch may not bite into juices
• Amidst the deep cut-price promotions that currently greet the supermarket shopper at every turn, the juice aisle has been relatively quiet in recent months. With 97% household penetration these tactics have proved ineffectual, except in kids’ lunchbox drinks. The tightening of purse strings as the credit crunch bites has encouraged drinkers to switch from more expensive smoothies to pure and not-from-concentrate juices in the latter part of 2008. In the last few months industry sources report polarisation in the market as people trade up to super-premium for occasions such as a weekend breakfast or down to value for everyday, thus squeezing the mid-market. Sales of long-life products were in decline but have experienced a slight resurgence at the end of 2008 as some consumers switch volume consumption from higher-priced chilled products. NPD programmes have been reviewed as manufacturers try to navigate the new obstacles of a recessionary market and some new product launches have been put on hold until the New Year.

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Workers want fruit without the fuss
• Rising numbers of people in employment have driven demand for convenience products that help them eat things like fresh fruit at their desks or on the go. Time-pressed workers are turning to fruit juices as a snack to give them energy. Women make up a significant proportion of the working population and are a key consumption group for juices that have no added sugar, being health- and weight-conscious. Foodservice outlets are popular lunchtime destinations for urban workers and have contributed to an increase in volume sales of juices through meal deals that offer drinks as part of a complete meal solution.

• •

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Carbonates ban in schools puts the fizz into juice
• As part of a radical overhaul of food served up and sold in schools, the government’s new nutritional standards, which became law in September 2007, stopped the sale of confectionery, bagged savoury snacks and sugary drinks in schools. It also required that fruit, vegetables and free fresh drinking water were put back on the school dinner table and in the

school tuck shop. • Food and drink sold from vending machines is included within these standards, therefore there has been a wholesale withdrawal of fizzy drinks from school sites. With around two fifths of secondary schools (5,093 secondary schools for 1116-year-olds ie excluding sixth form colleges) having vending machines, fruit juices have benefited from this move gaining a stronger foothold in this lucrative sector. According to the Automatic Vending Association consumers in Britain spend £1.5 billion annually through the slots of more than 418,000 refreshment vending machines.

TGI

Target Group Index. For further details concerning this information, including data on readership patterns of users/purchasers and details of brands, please contact Julian Tooke (020 8433 4085julian.tooke@bmrb.co.uk) at BMRB International

Competitive Context
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Key points
• • Juices, smoothies and water products have all benefited from the poor health credentials of carbonates and their removal from school canteens, tuck shops and vending machines. Carbonates, squashes and cordials have lost out as consumers demand more natural products whilst water, juices and smoothies have seized the opportunity. Water benefits most from growing awareness of and action to improve hydration although squashes, cordials and juice drinks are also popular hydration products for consumers. Premium juices have made gains at the expense of smoothies during 2008 as consumers have sought drinksthat deliver on health, taste and convenience for less.

• •

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Rough road for rival smoothies
• •
The market for fruit juices and juice drinks shares many of the challenges and opportunities of other soft drinkproducts. Healthy eating trends and government regulation of the supply of food in schools have threatened sales of carbonates but benefited fruit juices and juice drinks. However, this success has been shared with other categories such as smoothies and water. All categories have acted to make their products more natural by removing artificial flavourings, colours and preservatives from their products and most markets are exploring the potential of ingredients with functional health benefits.

Provenance of ingredients and ethical concerns has created lucrative premium propositions in some sectors. Key rivals to juices, smoothies have been the outright winners but have hit a rough patch during 2008, seeing a slump in sales growth for the first time since the category burst onto the soft drinks scene, as people feel the squeeze on their purses and moderate their spending. Fruit juices have been well placed to mop up this demand because premium 100% juices deliver similar benefits in terms of health, taste and convenience to smoothies at more competitive prices. The Figure below provides a summary of market strategies in all major soft drinks markets.

See Also Carbonates - UK
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FIGURE 7: Summary of market strategies in other soft drinks markets, 2008* Market size (2008)* & % change 200708 (est) Major inhibitors Major drivers Strategies for growth

Smoothies £282m +17%

Credit crunch High price points Smoothie maker and blender ownership

Health and wellbeing Growing network of smoothie and juice bars Active NPD and new entrants Heavy investment in TV ads

Cheaper ambient formats Own-label Convenient five-a-day proposition for over-45s Vending Target new drinking occasions eg evenings Smoothie bar brands extending to RTD consumer market

Carbonates £6,094m +2%

Sales banned in schools Declining child population

-Popularity of big brands are keeping cola afloat -Diet versions popular -Heavy NPD

Functional products Small formats – as treats Secure on-the-go packaging Diversification

Squashes and cordials £437m +0.5%

Healthy eating trends – does not deliver on five-a-day Price deflation – led by own-label Lack of adult appeal Not suited to on

Flavour versatility – incorporation of superfruits to deliver health High penetration Demand for NAS drinks Price-consciousness Strong advertising

Premium cordials for over-55s Adult brands and propositions Children’s cordials

the go Lack of summer sunshine

support Big brand presence Mixable

Mineral water £2,095m +5%

More plumbed-in water coolers Ethical pressures – switching to tap water

Tighter regulations on in-school supply of unhealthydrinks Interest in hydration for health Strong natural trend NPD in flavoured water Limited impact of ownlabel Strong leading brands Launch of ethical brands

Functional products Portable packaging UK-sourced water with smaller carbon footprint Greener packaging

Fruit juices and juicedrinks £3,156m +1%

Lack of appeal beyond breakfast Expensive lacklustre offering in the on-trade

High penetration and frequent consumption Popularity of breakfast Health and naturalness Banishment of carbonates from schools Mixable Strong advertising support

Super-premium Functional products for young adults and seniors Products for later in the day NPD for the on-trade to deliver indulgence and excitement for adults and children Leisure and school vending

* 2008 figures are all estimated
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Source: Mintel

Strengths and Weaknesses in the Market
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Strengths
• • • • High levels of penetration. Established habitual link to daily eating occasion. A 150ml of fresh juice counts as one portion of the five-a-day fruit and vegetable requirement. Juices deliver the natural health consumers are looking for. Government legislation has limited the sales of carbonates in schools – fruit juices and juice drinks are a well-placed substitute.


• • •

The juice market is not affected by summer weather patterns as much as other soft drink sectors because juices are primarily consumed for health rather than refreshment reasons. Big name brands that invest heavily in NPD providing variety and interest for the consumer. High levels of brand communication and promotion. Suitability for consumption on- and off-trade.

See Also Vitamins and Supplements - UK Carbonated Soft Drinks - UK Premium Soft Drinks - UK
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Weaknesses
• • • • A mature market with high levels of household penetration. The 100% NFC juices are stuck to morning occasions mainly. Failure to exploit impulse and on-the-go opportunities despite high degree of portability. Strong competition from smoothies, carbonates, water etc. Low-calorie juice drinks have failed to gain widespread appeal. Higher calorie content of pure juice may be deterring dieters. Reliance on crops that may be subject to failure may push up prices. Independents are struggling to compete for listings in key multiples losing out to other fresh and chilled foods providers so restricting choice and innovation. On-trade offer limite


• • •

Market Size and Forecast
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Key points
• Market growth has slowed in 2007 and 2008 despite growing numbers of key consumer groups and great health credentials. Competition from smoothies and failure to develop sales opportunities beyond breakfast have inhibited growth. Pure fruit juices account for a larger share of the market, but juice drinks have shown stronger growth. Looking forward the market will see only a slight 6% growth over the next five years. In fact in real figures, the industry will actually decline by 4%.

• •

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Mornings are saturated with juice
FIGURE 9: UK on- and off-trade sales of fruit juices and juice drinks, by volume and value, 2003-08 m litres Index £m Index £m at 2008 prices Index €m Index

2003

1,677

85

2,473

78

2,809.8

89

3575

83

2004

1,742

88

2,580

82

2,913.9

92

3803

89

2005

1,887

96

2,846

90

3,176.2

101

4163

97

2006

2,032

103

3,095

98

3,383.1

107

4540

106

2007

1,983

101

3,124

99

3,264.6

103

4567

106

2008 (est)

1,971

100

3,156

100

3,156.0

100

4292

100

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Source: Mintel

• •

After a continued period of growth fuelled by healthy eating trends and favourable demographics, the fruit juice and juice drinks market has experienced a slowdown in 2007 and 2008. The juice market enjoys high levels of penetration, high levels of frequency and a healthy reputation but is reaching saturation point as a breakfast drink and failing to fully exploit consumption opportunities beyond the morning. The huge success of smoothies has stolen sales from juices as consumers have been attracted by its whole food, natural propositions and excitement fuelled by huge innovation investment in new flavours and in no small part to the quirky positioning and marketing efforts of its pioneering leader Innocent. As a result of two consecutive summers with poor weather, volume sales fell, especially in the ontrade as the off-trade is more resilient to climate. The impact of bad summer weather is not as significant in this market as for other softdrinks that deliver refreshment and hydration.

The smoking ban has encouraged some traditional pub drinkers to stay at home but the success of the smoke-free on-trade environment to attract more women, families and seniors has yet to be exploited by juice manufacturers through NPD. The industry reports polarisation between premium and value products in the latter half of 2008 as a result of the credit crunch with higher-priced products being used as treats and substitutes for smoothies but on fewer occasions. Nonetheless premiumisation remains a key characteristic of the market, with manufacturers using ‘superfruit’ and exotic ingredients to deliver natural health and bottling products in glass to reinforce the premium proposition, especially when linked to ethical purchasing.

See Also Carbonated Soft Drinks - UK Healthy Eating and Drinking - UK
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Juice drinks are the stars
FIGURE 10: UK on- and off-trade sales of fruit juice and juice drinks, by type, by volume and value, 2003-08 Volume 2003 2005 2007 2008 (est) % change

m litres % m litres % m litres %

m litres

%

2005-08

Fruit juice

1,066

64

1,189

63

1,223

62

1,218

62

+2.4

Juice drinks

611

36

698

37

760

38

753

38

+7.9

Total

1,677

100

1,887

100 1,983 100

1,971

100

+4.5

Value

2003

2005

2007

2008 (est)

% change

£m

%

£m

%

£m

%

£m

%

2005-08

Fruit juice

1,601

65

1,715

60

1,813

58

1,835

58

+7.0

Juice drinks

872

35

1,131

40

1,311

42

1,321

42

+16.8

Total

2,473

100

2,846

100 3,124 100

3,156

100

+10.9

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Source: Mintel

• •

Juice drinks offer a healthier alternative to carbonates and are a more enjoyable way to quench one’s thirst than water. Juice drinks are drunk on more occasions than pure fruit juices, which are often just drunk at breakfast. The health credentials of the segment have been improved by new launches with higher juice content and existing products being reformulated. Major juice drinks brands including J2O, Robinsons Fruit Shoot and Oasis have all increased their sales over the last two years.

See Also Carbonates - UK
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The future of the market
FIGURE 11: UK on- and off-trade sales of fruit juices and juice drinks, by volume and value, 2003-13 m litres Index £m Index £m at 2008 prices Index €m Index

2003

1,677

85

2,473

78

2,899

92

3,575

83

2004

1,742

88

2,580

82

3,006

95

3,803

89

2005

1,887

96

2,846

90

3,277

104

4,163

97

2006

2,032

103

3,095

98

3,490

111

4,540

106

2007

1,983

101

3,124

99

3,368

107

4,567

106

2008 (est) 1,971

100

3,156

100

3,156

100

4,292

100

2009

1,967

100

3,208

102

3,115

99

4,171

97

2010

1,993

101

3,269

104

3,118

99

4,250

99

2011

1,987

101

3,298

105

3,084

98

4,354

101

2012

1,996

101

3,335

106

3,069

97

4,469

104

2013

2,002

102

3,353

106

3,025

96

4,493

105

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Source: Mintel

The slow forecasted growth will be a result of tougher competition from other soft drinks sectors and tougher economic conditions, which will reduce consumer-spending power compared to over the previous five-year period. However, the industry is still in a strong position, particularly for juice drinks, due to the increasing rise of the more health aware ABC1 population and a reversal in the decline of children. Consumer interest in healthy eating is likely to continue, driving demand for juice drinks with higher juice content and products with functional health benefits.

• •

Issues such as provenance and food miles are likely to become more important. Local provenance is important in softdrinks – eg Bottle Green Drinks Company. Also there has been a move towards local in water as people have been concerned about transporting mineral waters from overseas. As people are more aware of energy prices, local will become much bigger in lots of markets. Manufacturers need to do more to exploit the potential of smoke-free pubs attracting families and diners by improving the range of products on offer. The future performance of the on-trade market depends in part on Britain’s weather over the summer months.

• •

See Also Bottled Water - UK
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FIGURE 12: UK on- and off-trade sales of fruit juice and juice drinks, by type, by volume & value, 2008-13 Volume 2008 2009 2011 2013 % change

m litres % m litres % m litres % m litres %

2008-13

Fruit juice

1,218

62

1,210

61

1,225

62

1,243

62

2.1

Juice drinks

753

38

757

39

763

38

759

38

0.8

Total

1,971

100

1,967

100 1,987 100 2,002 100

2.9

Value

2008

2009

2011

2013

% change

£m

%

£m

%

£m

%

£m

%

2008-13

Fruit juice

1,835

58

1,852

58

1,873

57

1,882

56

2.5

Juice drinks

1,321

42

1,356

42

1,426

43

1,471

44

11.4

Total

3,156

100

3,208

100 3,298 100 3,353 100

13.9

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Source: Mintel

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Factors used in the forecast
Mintel has used the SPSS time series package to forecast the market to 2013. SPSS correlates historical market size data with key economic and demographic determinants (independent variables), identifying those factors having most influence on the market. Using forward projections of these factors, a market size forecast is produced. The first factor used was the population of 5-14-year-old kids. This population declined by 7% between 2003 and 2008 but is expected to grow by 1% over the next five years. The second factor used was the ABC1 population. This demographic continues to grow rapidly, at around 7%, which will be good news for fruit juices. The third factor used was consumer expenditure. With a recession looming, people’s spending power will be greatly reduced. For example this is predicted to increase yearly by 6.9% in 2008 but only 1.8% in 2009.

Segment Performance – Pure Fruit Juice
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Key points

Volume sales have dropped, but premiumisation has resulted in continued value growth.

Chilled products, particularly not-from-concentrate juices, have shown the strongest growth. Orange juices have seen sales drop and consumers are increasingly opting for more exotic flavours.

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Off-trade – premium growth
FIGURE 13: UK off-trade sales of pure fruit juice, by volume and value, 2003-08 m litres Index £m Index £m at 2008 prices Index €m Index

2003

863

100

753

100

855.6

100

1,089

100

2004

895

104

786

104

887.7

104

1,158

106

2005

980

114

851

113

949.7

111

1,245

114

2006

1,050

122

912

121

996.9

117

1,338

123

2007

1,008

117

958

127

1,001.1

117

1,401

129

2008 (est)

1,005

116

1,000

133

1,000.0

117

1,360

125

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Source: Mintel


Demand for more natural products and consumers wanting to consume more healthily have caused some consumers to switch from buying carbonated drinks to pure fruit juices. In 2007 and 2008 off-trade volume sales of pure fruit juices were affected by poor summer weather, reducing both planned and impulse buys. Value sales have continued to grow as a result of the trend towards premium products with brands like Tropicana and Copella showing strong sales performances. In 2008 value growth has slowed slightly as a result of some consumers trading down in light of the credit crunch. However, the sector has benefited from some consumers trading down from smoothies to premium fruit juices.


See Also Smoothies - UK
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On-trade – saved by foodservice
FIGURE 14: UK on-trade sales of pure fruit juice, by volume and value, 2003-08 m litres Index £m Index £m at 2008 prices Index €m Index

2003

203

100

848

100

855.6

100

1,089

100

2004

201

99

823

97

887.7

104

1,158

106

2005

209

103

864

102

949.7

111

1,245

114

2006

219

108

892

105

996.9

117

1,338

123

2007

215

106

855

101

1,001.1

117

1,401

129

2008 (est)

213

105

835

98

1,000.0

117

1,360

125

Note: Includes sales by pubs and clubs, leisure venues, HoReCa and vending.
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Source: Mintel

• •

Following two years of growth, both volume and value sales of on-trade pure fruit juices have fallen during 2007 and 2008. Poor summer weather dampened sales. In pubs and clubs this was exacerbated by the introduction of the smoking ban in public places, which encouraged some consumers to stay at home. The economic downturn in 2008 has added to the trend of cutting down. Fruit juice manufacturers and landlords have done little to capitalise on the fact that pubs are more family-friendly as a result of the smoking ban, with the choice of fruit juices on offer still fairly limited.

However, fruit juices have continued to perform well in the foodservice (eg Pret A Manger) market as consumers opt for a healthy treat and suppliers offer more meal deals that include a drink and these are increasingly juices.

See Also Carbonated Soft Drinks - UK On-trade Soft Drinks - UK
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Ambient vs. chilled – NFCs charge ahead
FIGURE 15: UK off-trade sales of pure juice, by value and sector, 2003-08 2003 2005 2007 2008 % change

£m

%

£m

%

£m

%

£m

%

2005-08

Long-life

344

46

307

36

255

27

258

26

-16.0

Chilled

409

54

544

64

703

73

742

74

+36.4

– NFC

215

29

317

37

465

49

500

50

+57.7

– Fresh squeezed

38

5

40

5

38

4

37

4

-7.5

– Concentrated

155

21

186

22

200

21

205

21

+10.2

Total

753 100 851 100 958 100 1,000 100

+17.5

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Source: Mintel

Sales of ambient long-life juices have declined as consumers increasingly turn to chilled products, which they perceive to be fresher, healthier and better tasting. NFC juices have been the main beneficiary of this trend, with Tropicana and Tropicana Pure Premium in particular performing extremely well. However, in 2008 long-life juices have seen a slight resurgence as, when faced with tight household budgets, some consumers have traded down. Sales of chilled-from-concentrate juices continue to grow, with consumers satisfied by their quality and many unaware of the difference between NFC and from concentrate. Freshly squeezed juices have lost market share to NFCs. Many consumers don’t see the difference between freshly squeezed and NFCs ‘with bits’, whilst retailers prefer NFCs as they have a longer shelf life.


• • •

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Flavour – orange slides down
FIGURE 16: UK off-trade sales of pure juice, by flavour, by volume, 2003-08 2003 2005 2007 2008 (est) % change

m litres % m litres % m litres %

m litres

%

2005-08

Orange

501

58

510

52

457

45

445

44

-12.7

Apple

95

11

118

12

137

14

140

14

18.6

Cranberry

35

4

69

7

75

7

77

8

11.6

Pineapple

35

4

39

4

53

5

54

5

38.5

Grape-based

25

3

29

3

33

3

34

3

17.2

Grapefruit

35

4

29

3

29

3

26

3

-10.3

Tropical

17

2

29

3

43

4

44

4

51.7

Mango

0

*

10

1

22

2

23

2

130.0

Pomegranate

0

*

10

1

10

1

11

1

10.0

Tomato

9

1

10

1

11

1

11

1

10.0

Other

111

13

127

13

138

14

140

14

10.2

Total

863

100

980

100 1,008 100

1,005

100

+2.6

* less than 1% and included in other
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Source: Mintel

Orange juice remains the staple flavour of fruit juice and a firm breakfast favourite. Poor harvests in recent years have caused orange juice prices to rise sharply (approximately 50%), prompting some consumers to switch to products made from other types of fruit. Apple juice is popular with both adults and as a children’s lunchbox filler. The flavour has been boosted by the strong performance of the Copella brand but a poor crop pushed apple juice prices up 11% in early 2008. Exotic flavours such as tropical, pineapple and mango have performed well, as they provide a more exciting drink that adults buy as a treat and associate with faraway places, sunshine and pleasure. Superfruit flavours such as cranberry and pomegranate are still growing in popularity with M&S launching a pure pomegranate juice in 2008. NPD has started to feature blueberries, for example, Saxhyttegubben launched Wild Blueberries 100% Juice in autumn 2008. The number of blended products on the market has risen. For example Tropicana has extended its Tropicana Pure Premium range with a Lychee, Grape & Apple juice variant. Many blended products include superfruits. For example RDA Organic has launched a Pomegranate, Blueberry & Evesse Apples (Evesse apples are high in flavanol and have cardiovascular benefits).

• •

Segment Performance – Juice Drinks

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Key points
• Volume sales have dropped, whilst value growth has slowed. Products for adults are stealing market share from children’s drinks. Drinks with less than 25% juice content dominate the market, but nectars are outperforming them.

• •

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Off-trade – sales are squeezed
FIGURE 17: UK off-trade sales of juice drinks, by volume and value, 2003-08 m litres Index £m Index £m at 2008 prices Index €m Index

2003

533

100

582

100

661.3

100

841

100

2004

549

103

602

103

679.9

103

887

105

2005

565

106

626

108

698.6

106

916

109

2006

596

112

667

115

729.1

110

978

116

2007

596

112

674

116

704.3

107

985

117

2008 (est)

593

111

679

117

679.0

103

923

110

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Source: Mintel

Both 2007 and 2008 saw volume sales drop and value growth slow, as two consecutively bad summers took their toll; this is especially true for juice drinks, as fruit juices are less reliant on weather conditions. Despite attempts by manufacturers to improve the health credentials of juice drinks, the shadow of Sunny Delight, decried by consumers as a chemical compound of unhealthy ingredients, and virtually driven out of the market, seems to hang over the category. Parents seem to be rationing

the intake of juice drinks – there is evidence of growth in the consumption of small formats in the home perhaps as a portion-control measure.


Poor value growth in juice drinks is also symptomatic of the children’s sector where discounting is more prevalent than in the juice segment. Despite this, Robinsons Fruit Shoot and Oasis have continued to increase their sales.

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On-trade – a healthy treat
FIGURE 18: UK on-trade sales of juice drinks, by volume and value, 2003-08 m litres Index £m Index £m at 2008 prices Index €m Index

2003

78

100

290

100

661.3

100

841

100

2004

97

124

369

127

679.9

103

887

105

2005

133

171

505

174

698.6

106

916

109

2006

167

214

624

215

729.1

110

978

116

2007

164

210

637

220

704.3

107

985

117

2008 (est)

160

205

642

221

679.0

103

923

110

Note: Includes sales by pubs and clubs, leisure venues, HoReCa and vending
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Source: Mintel

Although juice drinks offer a better-for-you alternative to carbonates when on the go, on-trade sales were affected by the poor summers as less people go out when the weather is poor and, if they do, they are unlikely to choose a refreshing drink such as juices. Although the smoking ban has put some consumers off going to pubs, it has caused landlords to focus more on their food sales, which in turn has the potential to boost sales of juice drinks amongst consumers wanting to eat rather than to drink alcohol.


Value sales have performed better than volume due to premiumisation in the market, with consumers less likely to trade down when they go out and more likely to treat themselves. J2O has increased its share of the market with on-trade value sales rising by around 5% in 2007.

See Also On-trade Soft Drinks - UK
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Target age group – adults accelerate
FIGURE 19: UK off-trade sales of juice drinks, by target age group, by value, 2003-08 2003 2005 2007 2008 (est) % change

£m

%

£m

%

£m

%

£m

%

2005-08

Adults

171

29

201

32

227

34

238

35

+18.4

Children 411

71

425

68

447

66

441

65

+3.8

Total

582 100 626 100 674 100

679

100

+8.5
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Source: Mintel

• • • •

Products aimed at children dominate the juice drinks market, with the top three brands – Ribena, Fruit Shoot and Capri-Sun – accounting for over £220 million in 2008. Whilst Fruit Shoot and Capri-Sun have seen strong sales growth, overall sales growth of children’s juice drinks has faltered as Sunny D and Ribena have lost market share. Ribena has attempted to reposition itself as a drink for young adults whilst Sunny D’s relaunch of its Florida Originaldrink with less sugar has failed to overcome the brand’s unhealthy image. Whilst Tesco has launched a Juicy Water range for children, the majority of NPD in 2008 has targeted adults with superfruit flavours and packaging that mimics alcopops and wines.

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Juice content – drinks get juicier
FIGURE 20: UK off-trade sales of juice drinks, by juice content, by value, 2003-08 2003 2005 2007 2008 (est) % change

£m

%

£m

%

£m

%

£m

%

2005-08

0-25%

442

76

470

75

500

74

503

74

+7.0

26-99% 140

24

156

25

174

26

176

26

+12.8

Total

582 100 626 100 674 100

679

100

+8.5
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Source: Mintel

• •

The majority of juice drinks including Oasis, Ribena, Robinsons Fruit Shoot and Capri-Sun have a fairly low juice content of less than 25%. However, there was a slight migration from juice drinks to nectars, which contain 26-99% fruit juice. This shift has been partly driven by the success of J2O, which has 50% fruit juice content as well as manufacturers responding to demand for healthier products by increasing the fruit content of their products and launching new nectars. In 2007 Capri-Sun increased its juice content by 20% in a bid to appeal to parents concerned about their children eating healthily. In 2008 Metro Drinks relaunched its Juice Patrol range, which now contains 51% fruit juice, and Tescolaunched a Tesco Value Apple Nectar containing 50% juice and Tesco Juicy Water range for lunchboxes, which contains 75% fruit juice.

See Also Healthy Eating and Drinking - UK
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Flavour – blends burgeon
FIGURE 21: UK off-trade sales of juice drinks, by flavour, by volume, 2003-08

2003

2005

2006

2007

2008 (est)

% change

m litres

%

m litres

%

m litres

%

m litres

%

m litres

% 2005-08

Orange blends

149

28

153

27

155

26

156

26

158

27

+3.3

Other blends

139

26

158

28

173

35

180

30

183

31

+15.8

Cranberry

64

12

79

14

83

17

82

14

80

13

+1.3

Blackcurrant

48

9

45

8

48

10

43

7

38

6

-15.6

Orange

43

8

40

7

42

8

41

7

40

7

0.0

Other

90

17

90

16

95

19

94

16

94

16

+4.4

Total

533

100

565

100

596

100

596

100

593

100

+5.0

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Source: Mintel

Blended drinks have shown the strongest growth over the last three years with consumers looking for a more excitingdrink and manufacturers looking for new combinations to tempt them. In 2008 J2O launched an Apple & Blueberry variant and Qu4ttro Stagioni launched a Lemon & Ginger variant. Of the single flavours, blackcurrant has suffered as a result of the poor performance of Ribena, whilst sales of orange and cranberry have stagnated.

Within the ‘other’ segment other flavours such as apple and strawberry have stayed fairly constant, whilst more exotic flavours such as mango and superfruit flavours such as pomegranate have increased their sales.

Market Share
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Key points

• Tropicana has increased its dominant share of the branded fruit juices segment. Own-label products account for over half of fruit juice sales. Britvic’s Fruit Shoot now leads the juice drinks segment, whilst Ribena has struggled.

See Also Carbonated Soft Drinks - UK
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Fruit juices – Tropicana on top
FIGURE 22: Off-trade sales shares of pure juices, by manufacturer, by brand, 2003-08 2003 2005 2007 2008 (est) % change

£m

%

£m

%

£m

%

£m

%

2005-08

PepsiCo/Tropicana

145

19

175

21

214

22

233

23

+33.1

PepsiCo/Copella

22

3

27

3

38

4

43

4

+59.3

Del Monte/Del Monte

30

4

29

3

24

3

18

2

-37.9

Gerber/Ocean Spray

14

2

14

2

14

1

14

1

0.0

Grove Fresh/Grove Fresh

7

1

12

1

13

1

13

1

+8.3

CCE/Minute Maid

-

0

5

1

10

1

9

1

+80.0

Princes/Princes

1

0

2

0

2

0

2

0

0.0

Others

90

12

68

8

69

7

70

7

+2.9

Own-label

444

59

519

61

574

60

598

60

+15.2

Total

753 100 851 100 958 100

1,000

100

+17.5

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Source: Mintel

• •

Tropicana and Copella have shown impressive rates of growth as a result of consumers opting for premium products. Tropicana’s Pure Premium range has performed extremely well and was extended with a Pineapple & Guava variant in autumn 2008. Sales have also been boosted by high promotional spend, with the ‘Wake up to Tropicana’ campaign reinforcing Tropicana’s position as the universally preferred breakfast juice. In 2007 Copella launched two new variants, Apple & Pear and Apple & Blackcurrant, and its apple juice was renamed ‘English apple’ and given a new pack design to reinforce the brand’s English provenance. In contrast sales of Del Monte have continued to fall, despite launching a six-variant ‘Distinction’ range of exotic juices in 2007. Del Monte has not invested in above-the-line promotion and outsourced its sales and marketing department in autumn 2007. However, it did gain listings in Asda and Sainsbury’s in 2008. The last two years have seen fruit juice drinks brands extend into the pure juice category with launches including Robinsons Fruit Shoot 100% juice, Ribena 100% juice and Robinsons Smooth Fruit Juice. Own-label products still dominate the fruit juice market, with sales growth in 2008 boosted by consumers trading down in light of the economic downturn. Tesco and Sainsbury’s are the largest own-label suppliers, whilst Marks & Spencerhas launched the largest number of new products in 2008.

See Also Smoothies - UK
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Juice drinks – Britvic shoots to the top
FIGURE 23: Off-trade sales shares of juice drinks, by manufacturer, by brand, 2003-08 2003 2005 2007 2008 (est) % change

£m

%

£m

%

£m

%

£m

%

2005-08

GSK/Ribena

97

17

94

15

82

12

73

11

-22.3

Britvic/Fruit Shoot

62

11

74

12

85

13

88

13

+18.9

CCE/Oasis

46

8

57

9

68

10

73

11

+28.1

CCE/Capri-Sun

54

9

51

8

59

9

65

10

+27.5

Gerber/Ocean Spray

49

8

53

8

58

9

59

9

+11.3

Britvic/J2O

23

4

39

6

46

7

47

7

+20.5

Gerber/Sunny D

39

7

32

5

27

4

24

4

-25.0

Others

52

9

65

10

82

12

82

12

+26.2

Own-label

160

27

161

26

167

25

168

25

+4.3

Total

582 100 626 100 674 100

679

100

+8.5

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Source: Mintel

• •

Britvic’s Fruit Shoot has overtaken Ribena as the market leader in the juice drinks category. It has proved highly popular with parents and children and has taken an increasing share of the lunchbox sector. It has a convenient sports cap format and brightly coloured packaging and comes in a wide variety of flavours. In response to greater competition in the children’s market, Ribena has attempted to reposition itself as a drink for young adults. The year 2007 saw the extension of the Ribena Really Light range with adult flavours including Blueberry and Raspberry & Pomegranate, and packaging was revamped to increase adult appeal. In 2008 Ribena has switched its focus away from the juice drinks category, launching its 100% Fruit Juices range.

• •

See Also On-trade Soft Drinks - UK
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Winners and losers

Britvic’s J2O has continued to perform well, appealing to women familiar with the brand in the ontrade. Growth has been driven by continual NPD. In 2008 J2O has capitalised on demand for premium drinks and superfruits, launching an Apple and Blueberry variant. Coca-Cola Enterprise’s Oasis brand has been the fastest-growing brand. In 2008 it launched a £4 million marketing campaign including a television advert featuring a girl who runs off with the Cactus kid because he never drinks water. It also launched an Extra Light Peach & Passionfruit variant. Capri-Sun remains popular in school lunchboxes. Its performance has been helped by its reformulation to reduce sugar levels by 3% and increase juice content by 20% as well as new resealable packaging and the launch of Orange & Tropical, and Apple & Blackcurrant varieties. Ocean Spray’s performance has been boosted by the launch of on-the-go single-serve bottles in three variants as well as TV and press campaigns to promote the health benefits of antioxidants. Despite relaunching its Florida Original with less sugar in summer 2007, sales of Sunny D have continued to tumble as the brand struggles to shed its unhealthy image.

• •

Companies and Products
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Key points

• • •

The majority of juice and juice drink brands are owned by companies that have extensive product portfolios in other food and drink categories. PepsiCo and Britvic are the leading companies – between them they dominate the on- and off-trade markets. Gerber is the leading juice and juice drinks producer manufacturing own-labels and providing production packaging services to retailers and brands.

On The Shelves From Mintel GNPD

Apple & Pink Cherry Juice - Grapefruit Juice HJ Heinz Drink Company UK Waitrose Ltd

Orange Apple Juice - and Pear Juice Waitrose Ltd Drinks - J Sainsbury more » See Also Carbonates - UK

Main suppliers
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PepsiCo
PepsiCo owns Tropicana, the leading brand of pure juice (in a market dominated by own-labels) and Copella, the leading brand of apple juice. Tropicana

Tropicana launched its Pure Premium chilled juice in 1991, pioneering the NFC category when the market was dominated by value juices made from concentrates. The Tropicana brand has since grown on the back of rising consumer interest in healthy eating and premiumisation to be worth in excess of £200 million in 2008. Television advertising has positioned Tropicana firmly as a breakfast juice but flavour extensions have tapped into the ‘superfruit’ and berry/fruit trend in an attempt to extend consumption to other times of the day.

The backbone of the brand in juices is the Tropicana Pure Premium range, which is offered in various flavours in both Original and Smooth formats. A Lychee, Grape & Apple and a Pomegranate and Guava variant were added in 2008 and Pomegranate and Cranberry blends in 2007. On-pack information highlights the fact that one 250ml glass equates to one of the five recommended daily portions of fruit and vegetables. The imminent launch of a super-premium line of juices is anticipated to extend choice for healthseeking drinkers. This is expected to include Tropicana Pure Valencia (made from the best 3% of the orange harvest), Indian River Grapefruit, Pomegranate & Blueberry, and Peach, Papaya & Mango variants, which were introduced in the US in March 2008. Functional juices are also offered under the Tropicana Essentials sub-brand – this range has been extended to include variants with added calcium, minerals, fibre and less acid. Tropicana Essentials Pure Orange with added Calcium contains the same level of calcium as milk, glass for glass, and features the National Osteoporosis Society logo on-pack. Tropicana’s most significant launch in 2008 was its range of smoothies, which burst onto the scene in February with a firework-themed TV campaign but appeared to be ill-timed as the market for smoothies, which hitherto had been a runaway success, subsequently suffered its first slump. There may still be plenty of demand for smoothies and growth still far outstrips that in other soft drinks markets but the launch comes a long time after the smoothie market was created and opened up to deliver triple-digit growth each year since. In October 2008 PepsiCo promptly announced it was to jettison its PJ Smoothies brand early in 2009 citing the importance of focusing on bestselling lines when the economy is moving into recession. The Tropicana smoothies are positioned more upmarket than the PJ products.

Tropicana Go!

Tropicana Go! is a premium kids’ juice targeted at the lunchbox market. It contains 70% juice and 30% water, with added Vitamin C. Two variants were supplemented with an Apple variant in 2007. The launch in 2006 coincided with the tightening of regulations governing what food and drink can be sold in schools.

Tropicana Spirit

Tropicana Spirit, a cocktail of fruit juice and sparkling mineral, bottled not canned, was launched in 2008 as a healthier alternative to other carbonated soft drinks. It claims to provide one of the recommended five a day fruit and vegetables per serving. The product contains no added sugar and is available in Blueberry and Blackberry, which contains 70% juice and 30% sparkling natural mineral water; Orange and Mango; and Lemon and Grapefruit. The launch was backed by a £5 million marketing campaign, including press and outdoor advertising, sampling, direct mail, promotions and PR support.

Market Developments

Tropicana launches Wally ads Tropicana and Innocent plan a raft of NPD aimed at kids Tropicana shrinks pack size to improve performance more »

Copella

PepsiCo’s premium apple juice brand Copella has performed well with 60% growth in sales values in three years because of its appeal to upmarket consumers looking for provenance. The brand’s marketing messages highlight its Suffolk and English apple heritage. The range comprises several apple-based variants, and is differentiated from its sister brand Tropicana through its packaging in bottles. Two new flavours were added in 2007 to appeal to families – Apple & Pear and Apple & Blackcurrant. Copella’s above-the-line advertising is principally distributed through the press. Below-the-line activity such as sponsorship of open garden schemes is typical. In 2007 Copella ran a joint promotion offering drinkers the opportunity to win a relaxing break in a National Trust cottage. This partnership highlights the brand’s positioning as something quintessentially English. Copella has experienced something of a renaissance because of the strong interest in local foods.

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Britvic
Market Developments

Britvic sales fizz Britvic outperforming the market Permira sells stake in Britvic for £81.5m more »

Britvic is the number two soft drinks supplier in the UK with a portfolio that includes brands such as Pepsi, Robinsons, J2O, Tango and Britvic and bottled water brand Drench. Britvic’s on-trade business is more significant than its retail business in juices and juice drinks. See Also

Children's Packed Lunches - UK
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Juice Market Developments

Britvic axes Fruit Spring with Juicy Drench Britvic results

Britvic

• •

Britvic is the leading supplier of fruit juice to the on-trade. In 2008 Britvic launched the first standalone pomegranate juice drink to the on-trade as part of its mixers and juices range. The increasing demand for adult premium softdrinks has prompted this move, which simultaneously taps into consumer trends for health and adventure. Britvic launched Pressed & Squeezed orange and apple juices into the on-trade in January 2006. In 2007 they were rebranded Britvic OJ and Britvic AJ. These juices are packaged in 275ml glass bottles, offering a larger serving than traditional mixers. Britvic responded to the banishment of fizzy drinks from school premises at the end of 2006 with the launch of a new 100% pure juice product aimed at secondary school-aged children called the Really Wild Drinks Company. The product is only available in school vending machines and canteens.

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Juice drinks J2O

Britvic launched the J2O brand to the pubs, clubs and restaurants in 1998, as a sophisticated alternative to alcohol. The brand has achieved buoyant sales reaching £47 million and made a successful transfer to retail in 2002. The blend of 50% fruit juice with water is targeted at women aged 18-35. The brand maintains interest through regular flavour changes including limited editions. New flavours for 2007 and 2008 included Apple & Blueberry, Orange and Passionfruit and a limited edition Orange & Pomegranate that was so popular it was made a permanent feature.

Robinsons Fruit Shoot Robinsons is best known as the leading brand of dilutable squash in the UK and has successfully extended trust in its household name to juice drinks.

RTD Fruit Shoot is now the leading children’s juice drink. Its health credentials appeal to parents while its flavours and bright colours win children over. The sports cap lid makes it ideal for drinking on the go with no mess. The drink is targeted at the 5-12 age range and was launched in 2000. In response to market trends the product formulation has moved towards higher fruit content, vitamin enrichment and no added sugar. The range currently comprises nine variants based on different flavours and regular/no added sugar formulations in two sizes. In summer 2007 Britvic supported the launch of Robinsons Fruit Shoot 100%, a premium juice for kids, with a £1.4 million TV and outdoor advertising campaign. Each bottle of Fruit Shoot 100% counts as one of the five recommended daily portions of fruit and vegetables. It is available in Orange, Apple and Apple & Blackcurrant and contains no 'bits'. Fruit Shoot H2O flavoured waters were launched in 2006. Britvic has made sustained use of television advertising in support of its Fruit Shoot brand. Animated characters used right across the Robinsons brand show little people having fun in a sweet shop coloured world of fruit. TV and cinema ads run in 2008 for Fruit Shoot H2O feature cute animated children enjoying puddle dancing to emphasise hydration and fun. The style has been replicated on press ads for 100% juice.

• •

• •

Robinsons Smooth Juice • Robinsons Smooth Juice is 100% pure juice with barley, which provides a smoother texture than other juices. Britvic unveiled a £2.8 million advertising campaign for its Robinsons Smooth Juice brand in 2007. The ad shows a little animated boy pour a glass of Robinsons Smooth Juice and as he drinks it he has an orange taste experience and imagines himself sliding down an orange slide.

Market Developments

Robinsons aims to get kids active Britvic to relaunch J2O Britvic relaunches Fruit Shoot

Robinsons Fruit Spring

Robinsons Fruit Spring was launched in 2004 as a more naturally formulated replacement for its Fruit Break brand. Fruit Spring is a combination of fruit juice with water targeted at adults, and comes in three flavours.

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Coca-Cola Enterprises (CCE) • CCE juice and juice drink brands have experienced a mixed performance. Oasis and Capri-Sun
Capri-Sun

continue to enjoy healthy sales growth while Minute Maid and Five Alive have made little impact.

• •

Capri-Sun is the number two children’s juice drink brand with estimated sales in 2008 of £65 million and remains a popular lunchbox choice. Its performance has been helped by its reformulation, new packaging and flavour extensions. Capri-Sun now has 3% lower sugar levels, a 20% higher juice content and has new resealable packaging.

Oasis Oasis is the leading adult juice drink brand. The success of Oasis has come through the marriage of refreshment and health for its young adult audience which is looking for excitement and taste with a nod to health, but something that is not mainstream and certainly more edgy than everyone else is drinking. Value sales growth of 28% in the past three years makes this the fastest-growing juice drink on the market.

Oasis was originally presented in a 500ml format targeted at adults ‘on the go’ but has been repositioned through its advertising for a younger adult audience. These consumers are looking for something a bit different and maybe a bit healthier than fizzy drinks but can find water dull. It is increasingly a popular choice with teenagers. Oasis comes in a range of portable formats and flavours including Citrus Punch, Summer Fruits and Blackcurrant Apple. There is also a 1.5-litre take-home format of the popular Summer Fruits variant. Two low-calorie Extra Light options contain just three calories per 100ml and are perfectly placed to capitalise on this group’s weight and self-image concerns. In summer 2008 CCE launched a controversial advert, as part of a £4 million marketing investment which includes TV and outdoor advertising, PR and in-store POS materials, featuring the tale of a young Tennessee woman and her prickly boyfriend the Cactus Kid, to reinforce the brand’s positioning as a tastier alternative to water. The ad was taken off air in October 2008 following complaints about the suitability of its content and scheduling for a teenage audience. CCE is to launch a range of new products targeting both adults and children in the ontrade. Schweppes Straightcut is a reintroduction of Oasis in glass bottles to the on-trade, which is served in 330ml glass bottles.


Five Alive

Five Alive RTD juice drinks are positioned as a family drinks. Each of the three flavours is fortified with vitamins and minerals and contains no artificial flavours, colours or preservatives.

Minute Maid

Minute Maid is positioned to compete with Tropicana and as a relatively recent entrant to the market has struggled to make significant gains against the leading brand. Sales values are estimated to have levelled off in 2008 at £1 million below the £10 million achieved in 2007.

• • •

Easter 2007 saw CCE relaunch the brand after mixed success since its launch in 2005, in which time it has experienced reduced listings. The new range, backed by an £8 million marketing campaign, features new drinks, new pack sizes and has had a packaging makeover. The marketing campaign features the strapline ‘Keep well made simple’ and is aimed at healthconscious families, working adults and older people. First to launch was Minute Maid Summer Fruits, a 100% pure juice orange and berry blend. It will be followed by the introduction of two new functional drinks, called Specific Benefits, one for cell defence and the other for digestive health. The range already includes three fortified products, which have been renamed Nutri Top Up. Two new smoothies called Breakfast On The Go are positioned as a healthy way to help fill you and keep going in the morning.

Market Developments

Appletiser plots Glam campaign CCE drops four Minute Maid juice drinks China rejects $2.4bn bid by Coca-Cola for Huiyuan Juice Group more »

Deuce

CCE’s Deuce brand competes directly with Britvic’s J2O brand, but is not as thick as J2O to encourage higher volume consumption. Deuce is packaged in 275ml glass bottles and comes in Orange or Cranberry flavours. CCE launched a still juice variant of the Fanta brand at the beginning of 2008 to encourage lapsed drinkers who have switched to still drinks, as well as the teenage market. This is a consumer base that, in terms of juices, remains untapped, with Capri-Sun targeting younger children and Ribena and Oasis aimed at young adults.

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Gerber
Gerber Juice Company Ltd produces most of the UK's juice products. It owns the Sunpride, Southern Delight and Southern Gold labels and produces and packages juice and juice drinks for retailers. In addition leading brands such as Ocean Spray, Welch’s, Libby's Organic, Libby's C, Um Bongo and Sunny

D use the company to package their products. All this makesGerber the leading fruit juice and juice drink producer in the UK. Ocean Spray US brand Ocean Spray pioneered the cranberry juice category. As the segment matures, and other products have traded on the popularity of cranberry, sales have begun to level off to around £60 million in 2008. • The core range of juices is primarily offered in 1-litre cartons, and comprises Classic, Blends and Grower’s Select ranges. In July 2008 a new 'on the go' format of single-serve drinks was launched in Cranberry Classic, Cranberry Classic Light and Cranberry & Raspberry flavours. Ocean Spray started 2008 with a TV campaign highlighting the health benefits of cranberries, hoping to repeat the success of a 2007 campaign that resulted in an additional 1 million litres being sold in five weeks. In 2007 Ocean Spray teamed up with Jordans Cereals to promote the benefits of a healthy breakfast by offering a number of spa treats through on-pack promotions. Ocean Spray entered the smoothie market with Growers Reserve in May 2008 with a range of cranberry-based smoothies targeted at affluent health-conscious over-45 females, making it the first brand to actively seek to engage with older consumers. This demographic is key to juice consumption at breakfast.

• •

• •

Welch’s The Welch’s brand of grape juice and drinks was launched in 2002 in both the chilled and ambient aisles. Welch’s is a long-standing mainstream brand in the US, available in a wide range of flavours. • Sales have been boosted in 2007 and 2008 by brand extensions and a high-profile TV advertising campaign (see Brand Communication and Promotion). Two new flavours – Purple Grape & Strawberry and Purple Grape & Raspberry – were launched in 2007 to reach health-conscious consumers and rival products such as Tropicana Pure Premium, which launched Cranberry Blend and Pomegranate Blend earlier in 2007. Two new Welch’s smoothies came onto the market in October 2008.

Market Developments

Gerber hires M2M for Sunny D media business Florette teams up with Ocean Spray for campaign My Agency to handle Sunny D relaunch

more »

Libby’s Organic • Libby’s Organic, the leading brand of ambient organic juices, was rebranded Growers Organic Direct in 2007 and is available in orange and apple varieties.

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GlaxoSmithKline (GSK)
GSK’s involvement in the juice market builds on its flagship Ribena squash brand.

• • •

Sales of RTD juice drinks under the Ribena label were worth some £73 million in 2008, having declined by 22% in the past three years. Growth of the RTD juice drink portfolio has suffered as support has shifted to improve the brand’s contemporary reputation among young adults and away from children. In 2008 Ribena 100% pure juice was launched in two flavours – Blackcurrant Blend and Raspberry & Blackberry blend, the brand’s first new range in three years The launch will be supported by a £5 million marketing campaign spread over television and radio, in addition to nationwide sampling and digital campaigns. The core message was pure fruit content.

Market Developments

Innocent hires vizeum

Innocent

• •

In a reversal of a trend in the juice market, Innocent, the leading smoothie brand, is introducing its first straight orange juice to compete with Tropicana and Minute Maid. Its Innocent Orange Juice, available with or without bits, is unique in that it is a drinkmade from both freshly squeezed and not-from-concentrate juice. The company is expecting the brand to achieve £10 million in sales in its first year. This follows many smoothie launches by juice companies.

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FIGURE 24: Minor brand and companies information

Brand

Positioning and channels

Key or new products

Noteworthy promotional activity

2007-08

AdeZ (Unilever)

Fruit juice and soyadrink launched in 2006. Maintenance of a stronger body. Contains as much calcium as milk. One third of calories of fruit juice. Pre-/no family couples and working mothers.

Dropped by Unilever in the UK in 2008 due to low sales.

2007 £3 million ‘Discover your strengths’ with Mark Ramprakash and Kirsty Gallagher Caribbean island competition. Supported by TV, press and digital advertising,

Calypso

Children’s juice and 2007 launched Juice juice drinksspecialist. Shots as part of Distinctive cup format. school-approved Larger bottles of some range, which includes products deliver one of five a Aquajuice. New day. orange juice has tenValue for money. month ambient shelf life. Packed in cuplet, similar to airline drinks. New tropical juice in recyclable packaging for Fairtrade Fortnight 2008 to add to existing fair trade orange.

Teamed up with Save the Children to launch a bottled water brand, Thirst Aid, which is intended to raise £55,000 to provide cleandrinking water in Ethiopia.

Del Monte

Ambient juices from concentrate from fruit

NPD effort going to other categories eg

Marketing outsourced in 2007.

growing specialists. Big name in other fruit-based categories such as canned. UK juice and canned fruit production plant closed in 2008. Through grocery multiples and impulse channels. Listings gained inAsda andSainsbury’s in 2008.

100% Juice range, launched in March 2008, is first branded range of fruit ices which meets the government's five-aday target. Established brands include Del Monteambient juices, World Fruits juicedrinks and Juice Bar 100% pure chilled juice.

Good Natured

Environmentally friendly. Oranges sourced from Rainforest Alliancecertified farms with sustainable management practices. ‘Paradise’ ingredients. Waitrose and whole food markets.

Two variants launched Carton looks like its February 2008. wrapped in rainforst levaes. Challenging rivals Innocent and Feelgood.

Grove Acquired by organic health Fresh(Wellness food supplierWellness Foods) Foods in 2007 for circa £9 million. UK’s leading premium organic fruit juice brand. Listed by all the major grocery multiples.

Extended organic juice portfolio with two new varieties in 2008.

£1 million support for new smoothie range in 2007.

MetroDrinks

Foodservice including school vending machines and petrol forecourts. Leading supplier of own-label freshly squeezed juices for the main grocery multiples. Products target children, students & adults Middle income & above.

Juice Patrol – healthy fruit drinks for kids. Qu4ttro Stagioni – sophisticated fruitdrinks for adults. Both ranges relaunched with new packaging in 2008. Qu4ttro Stagioni launched a winter recipe in 2008 featuring lemon and ginger.

RDA Organic

Super-premium organic. Each bottle delivers RDA Vitamin C and one of five a day. Foodservice outlets and more recently some multiple.

Functional range PR around Organic contains reintroduced Fortnight. English apple variety, which is a superfruit for cardiovascular health. Delaying some NPD launches until 2009

Rubicon £45m delivering double-digit growth

Leading mango juice brand. Exotic health. Asian and Afro-Caribbean consumers aged 16-44 are key targets for Rubicon drinks. All major multiples and targeting foodservice Acquired by softdrinks manufacturerAG Barr in November 2008.

Range uses mango papaya, guava, pomegranate, lychee, passionfruit, and guanavana. Recent launches – papaya superfruitdrink Sunexotic sub-brand for blends

TV, outdoor advertising, PR & sampling. Delivered 113% value growth on previous year. Save our Sight campaign – benefits of balanced diet with lutein. Donating unwanted sunglasses. Sunexotic Fruit Paradise TV ad.

Promotions around National Mango Week.
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Source: Mintel

Brand Communication and Promotion
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Key points
• • •
Above-the-line support for fruit juices and juice drinks has flattened during 2007 and 2008. TV is the key medium for promotion of soft drinks. PepsiCo keeps market-leading brand Tropicana well supported with campaigns that place it on breakfast tables to keep heavy users engaged.

FIGURE 25: Main monitored media advertising spend on fruit juices and juice drinks, 2004-08* Total Index Adspend:Sales ratio

£m

%

2004

16.2

100

0.6

2005

24.5

151

0.9

2006

26.5

164

0.9

2007

25.6

158

0.8

2008* 17.5

108

0.6

* January-August 2008 inclusive
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Source: Nielsen Media Research/Mintel

Above-the-line advertising expenditure in 2008 is set to move ahead of 2007 levels. TV is the main medium of choice for soft drinks and in 2008 accounted for 66% of main monitored advertising spend. TV has taken a larger proportion of spend since 2006 when it accounted for half of total spend.

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PepsiCo keeps Tropicana at the top
FIGURE 26: Main monitored media advertising spend on fruit juices and fruit juice drinks, by advertiser and brand, 2004-08*

2004 2005 2006 2007 2008 Total

£m

£m

£m

£m

£m

£m

Unilever UK

0.00 2.77 8.66 2.16 0.01 13.60

AdeZ Drinks Range

0.00

0.00

4.89

1.81

0.00

6.69

Batchelors – Squeeze

0.00

0.00

0.00

0.01

0.00

0.01

Knorr – Vie Shots

0.00

0.00

0.17

0.00

0.00

0.17

Unilever Vie Shots

0.00

2.77

3.61

0.34

0.00

6.72

:

:

:

:

:

:

:

:
click here to show full table

:

:

:

:

:

:

* January-August 2008 inclusive
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Source: Nielsen Media Research/Mintel

PepsiCo has consistently been the highest spender on above-the-line advertising in this market, except in 2007 whenBritvic put heavy support behind Robinsons Fruit Shoot, in order to capitalise on the new opportunities opening up within children’s juice drinks for consumption at school.

• •

PepsiCo’s spend is largely accounted for by ongoing consistent support for Tropicana, its flagship juice brand, to maintain its market-leading position. Ribena and Oasis have both seen above-the-line support increase significantly in 2008.

See Also Carbonated Soft Drinks - UK Carbonates - UK
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Wake up with Tropicana

PepsiCo has created a strong association with breakfast for its Tropicana range of juices with a series of TV and cinema ads that place the drinks on breakfast tables in cities throughout the world under the banner ‘Wake up toTropicana’, to the sound of Judy Garland briskly singing the classic Good Morning. There has been a slight shift in emphasis in recent years from a cosmopolitan New York scene featuring pancakes and eggs Benedict to ‘hundred of cities’ across the globe, which depict more diverse cityscapes and feature a more varied breakfast menu. This positioning keeps the brand firmly on the nation’s breakfast table, the key consumption occasion for juices, particularly premium 100% and NFC products, so it is a mechanism for reinforcing a habit amongst current drinkers. The positioning is also about luxury, sophisticated urban living and makes breakfast a special occasion. An online promotion on the Tropicana website, running in the latter part of 2008, offers a free £75 voucher in exchange for three Tropicana carton caps and a till receipt, which can be redeemed through Alastair Sawday’s luxury accommodation guide Special Places to Stay against a booking. Again the link is to breakfast, comfort and something special.

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Keeping it healthy
• •
Ribena’s TV ads in support of its new 100% pure fruit juice lines focus on the product as juiced blackcurrants and nothing else tapping into the demand for natural products that deliver health. The ‘Let us do the juicing for you’ ads feature a woman in a smart kitchen liquidising blackcurrants and grapes but the lid is not on her blender so red juice sprays all over her, her boiled eggs, toaster and dog. The narrator introduces Ribena's new 100% Pure Juices, and suggests that we let them do the juicing for us, as the scene cuts to a large food manufacturing plant, where the machinery and white-coated personnel are also liberally splattered with red juice. There are implied references to breakfast through the food she is preparing alongside the juice and the DIY juicing activity will be something with which key AB consumers can identify. Welch’s purple grape juice has also used health as a promotional message during 2008 but focuses on the relative health benefits of grape juice to orange juice. Its TV ad features a giant glass of people in orange jumpsuits representing the number of antioxidants in a glass of orange juice, but twice as many people in purple suits are seen packed tightly in another glass of the same size, which represents Welch’s Grape juice. Bill Oddie tells us

• •

that Welch's Grape Juice contains twice as many antioxidants as orange juice (and is also available as a smoothie).

Rubicon’s SOS press campaign helps raise awareness of the importance of sunglasses and a diet rich in Lutein in the protection and maintenance of eye health. Rubicon has teamed up with vision care charity, The Eyecare Trust, to launch SOS, which aims to encourage people to donate their unwanted sunglasses via collection bins at participating opticians from now until 31 October. Rubicon’s campaign will appeal to older consumers who are Juice Regulars; (see further analysis for the consumer group analysis) and key charitable donors because they empathise with this issue.

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Oasis ad turns sour
• The ‘Run, Cactus Kid, Run’ campaign for Oasis comprises three humorous 30-second TV spots, shot in the style of a true romance, which depict the story of a young woman from Tennessee and her green prickly boyfriend the Cactus Kid. The saga covers their disagreement with the girl’s mother over her choice of boyfreind, their elopement and a motel stakeout where they are being pursued by the police. It has all the elements a teenager can relate to – parents who don’t understand and who don’t approve of her choices. The propsition for the ad is that Oasis is for people who don’t want to drink water. The strapline is ‘for people who don't like water’. This series is targeted directly at teenagers who are looking for refreshment and hydration but want something tastier than water and not what their parents think is right for them. It is anti-establishment in style to appeal to teenagers who like to make their own food and drink choices and tend to espouse anything that is the opposite of what their elders, particularly their parents, advise. In October the ASA banned the campaign following complaints on six different counts including its implied approval of underage sex and teenage pregnancy, its early scheduling and its suggestion that the juice drink was as good as water contradicted good dietary advice. Banning the ad could actually work in the brand’s favour if teenagers see the ad’s forced withdrawal as yet another attempt by the establishment to rein in their independence and could give the campaign the status of a cult clip to be shared through online networks.


Channels to Market
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Key points

• Pubs and clubs have seen their share of the market fall as manufacturers have failed to capitalise on the potential. Convenience stores and garage forecourts are driving growth in the off-trade. The growing popularity of pure fruit juice has boosted sales through leisure, HoReCa and vending.

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Pubs perform poorly
FIGURE 27: Value sales of fruit juice and juice drinks, by outlet channel, 2003-08 2003 2005 2006 2007 2008 (est) % change 2005-08

£m

%

£m

%

£m

%

£m

%

£m

%

Off-trade

1,335

54

1,477

52

1,579

51 1,632 52

1,679

53

+13.7

Pubs and clubs

336

14

390

14

432

14

380

12

325

10

-16.7

Leisure, HoReCa, vending

802

32

979

34

1,084

35 1,112 36

1,152

37

+17.7

Total

2,473 100 2,846 100 3,095 100 3124 100 3,156 100

+10.9

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Source: Mintel

Pubs and clubs have struggled to maintain footfall in light of government antibinge drinking campaigns, the smoking ban and consumers cutting back on going out during the economic downturn. According to the British Beer & Pub Association 36 pubs were closing a week in Britain in autumn 2008, up from 27 a week in 2007. To make matters worse, juice manufacturers and landlords have failed to exploit the potential of smoke-free pubs to attract families, with fruit juice and juice drink offerings limited to a small number of J2O and Britvic variants. Adult softdrinks are doing better here, and fruit juice manufacturers can try to enter the category as it will enable them to command a higher price. Landlords need to devote more attention to their fruit juice and juice drinks offerings, creating a more varied and exciting choice for adults and introducing more products for children.

As food becomes more central to pub offerings, juice manufacturers could link up with landlords to offer ‘meal deals’ including a meal and juice drink. They could also offer pre- or post-dinner non-alcoholic cocktails.

See Also Carbonated Soft Drinks - UK Pub Catering - UK
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Convenience is crucial

Sales within the off-trade have seen a marked split in performance between multiples, whose sales have grown only moderately, and convenience stores including Co-ops, symbol stores and garage forecourts, whose sales have grown markedly. This suggests that drinks for immediate consumption are a key driver of off-trade growth, which in turn highlights the importance of convenient, on-the-go formats in the market. Sales of fruit and fruit juice have seen the greatest growth through leisure, HoReCa and vending channels. Fruit juice in particular has performed well, with demand driven by healthy eating trends. Sales in schools have been boosted by the removal of carbonated drinks.

• •

Channels to Market
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Key points

• Pubs and clubs have seen their share of the market fall as manufacturers have failed to capitalise on the potential. Convenience stores and garage forecourts are driving growth in the off-trade. The growing popularity of pure fruit juice has boosted sales through leisure, HoReCa and vending.

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Pubs perform poorly
FIGURE 27: Value sales of fruit juice and juice drinks, by outlet channel, 2003-08 2003 2005 2006 2007 2008 (est) % change 2005-08

£m

%

£m

%

£m

%

£m

%

£m

%

Off-trade

1,335

54

1,477

52

1,579

51 1,632 52

1,679

53

+13.7

Pubs and clubs

336

14

390

14

432

14

380

12

325

10

-16.7

Leisure, HoReCa, vending

802

32

979

34

1,084

35 1,112 36

1,152

37

+17.7

Total

2,473 100 2,846 100 3,095 100 3124 100 3,156 100

+10.9

download into spreadsheet | create new graph
Source: Mintel

Pubs and clubs have struggled to maintain footfall in light of government antibinge drinking campaigns, the smoking ban and consumers cutting back on going out during the economic downturn. According to the British Beer & Pub Association 36 pubs were closing a week in Britain in autumn 2008, up from 27 a week in 2007. To make matters worse, juice manufacturers and landlords have failed to exploit the potential of smoke-free pubs to attract families, with fruit juice and juice drink offerings limited to a small number of J2O and Britvic variants. Adult softdrinks are doing better here, and fruit juice manufacturers can try to enter the category as it will enable them to command a higher price. Landlords need to devote more attention to their fruit juice and juice drinks offerings, creating a more varied and exciting choice for adults and introducing more products for children. As food becomes more central to pub offerings, juice manufacturers could link up with landlords to offer ‘meal deals’ including a meal and juice drink. They could also offer pre- or post-dinner non-alcoholic cocktails.

• •

See Also Carbonated Soft Drinks - UK Pub Catering - UK
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Convenience is crucial

Sales within the off-trade have seen a marked split in performance between multiples, whose sales have grown only moderately, and convenience stores including Co-ops, symbol stores and garage forecourts, whose sales have grown markedly. This suggests that drinks for immediate consumption are a key driver of off-trade growth, which in turn highlights the importance of convenient, on-the-go formats in the market.

Sales of fruit and fruit juice have seen the greatest growth through leisure, HoReCa and vending channels. Fruit juice in particular has performed well, with demand driven by healthy eating trends. Sales in schools have been boosted by the removal of carbonated drinks.

The Consumer – Usage
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Key points
• • •
The fruit juice sector has a firm foundation in high numbers of frequent juice drinkers. Morning remains the most popular time of day to drink fruit juices so the best prospects for volume growth lie in exploiting drinking occasions beyond breakfast. Women, young adults aged 16-24 and ABs are the most significant user groups.

...to Appendix: The Consumer – Usage See Also Carbonated Soft Drinks - UK
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Juices stay on a high

Exclusive consumer research undertaken by Mintel amongst 2,001 internet users aged 16+ reveals that, despite its maturity, this market continues to achieve high rates of penetration and that frequency of consumption is high.

FIGURE 28: Trends in the frequency of consumption of fruit juices and juice drinks, July 2008 Base: 2,001 internet users aged 16+ %

Any juice drinkers

90

More than once a week

49

Once a week

17

At least once a month or more 14

Less than once a month

10

Don't drink them

10
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Source: GMI/Mintel

Half of online adults drink fruit juices more than once a week, which indicates a high level of consumer frequency and engagement providing manufacturers with a solid consumer base. Only one in ten of the online UK population do not use them.

See Also On-trade Soft Drinks - UK Carbonates - UK
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Three key demographic groups like a daily dose
• Gender, age and income are the key demographic indicators of participation in the fruit juice market. The consumption of juices is most prevalent among women, those aged 16-19 (hence people in full-time education), ABs and those with children aged 10-15 in their household. Broadsheet and mid-market tabloid readers and customers of Marks & Spencer, Sainsbury’s and Waitrose are also above-average consumers. These sub-groups are also the most frequent consumers, along with 45-54-year-olds. These frequent drinkers drinkjuices more than once per week. The once-per-week consumer may be linking the drink to a weekly occasion such as weekend breakfast when they are without the weekday pressure of a young family, or perhaps treating themselves. These consumers tend to be aged 20-34, have pre-school-aged children in their household and regularly try to lose weight through diet and exercise so they may be regulating their intake. The demographic profile of the non-users and that of those who drink juices less than one a month overlap – including above-average numbers of men, over-55s, the retired, people on low incomes, those living alone and those who say they rarely exercise and eat what they like.

• •

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Good morning juice
FIGURE 29: Consumption of fruit juices, by main drinking occasion, July 2008 Base: 1,797 internet users aged 16+ who drink fruit juices

%

Morning

52

Afternoon 18

Evening

16

Midday

14
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Source: GMI/Mintel

• •

Morning is the most popular drinking occasion for juices and juices drinks, indicating that the majority of consumersdrink juice and juice drinks most often at breakfast. A similar survey conducted for Mintel’s report on this market in November 2006 shows that there has been a slight shift away from consumption in the morning to other times of the day. Manufacturers have worked hard to position juices as a refreshing alternative to carbonates and a tastier proposition than water and this movement towards different occasions throughout the day reflects this; as well as the impact of health on the nation’s eating habits as a whole. Mintel suggests various strategies for targeting consumers who drink juices at different times of the day, based on their demographic profile:

See Also Smoothies - UK
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FIGURE 30: Who drinks fruit juices when and how could they be targeted?, July 2008 Base: 1,797 internet users aged 16+ who drink fruit juices

Profile of drinker

Propositions which will appeal to these drinkers and may attract new users to this occasion

Mainly in the morning:

Part-time employee

Premium

£50,000+ household income

Weight loss

Mid-market tabloid readers

Promote in lifestyle, cookery and home interest magazines

Shop at Marks & Spencer

Regularly try to lose weight through diet and exercise

:

:

:
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:

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Source: GMI/Mintel

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