Hot topic: smoothies

Grocer,  Nov 1, 2008  by Robyn Lewis

• E-mail
• Print
• Link

Is the gold rush over? After nearly a decade of stellar growth, it's a bad year to be in smoothies.

Cash-strapped consumers have been in no mood to shell out 2 [pounds sterling] for a tiny bottle of mulched fruit, no matter how many of your five a day it claims to provide.

The soggy summer didn't help much either and sales are down 6% (TNS).

In this climate it's no surprise Nestle's venture, Boosted Smoothies, failed to impress. It was pulled in August, a mere four months after launch, and this week PepsiCo announced it was to axe its straggling PJ Smoothies brand as well.

So who would be unhinged enough to launch a smoothie now?

Well, plenty it seems. Companies small and large--Welch's, AG Barr (St Clements) and Coca-Cola (Minute Maid) to name but a few--have entered the category this year.

With just 30% of shoppers currently buying smoothies, evidently those players think there's more gold in them there hills. But flail markets only have room for two brands--as many now believe--who gives?

COPYRIGHT 2008 William Reed Ltd.
COPYRIGHT 2008 Gale, Cengage Learning