Welch's 'concentrates' on new juice concept; special dispensing racks conserve space, increase profitability

Drug Store News, May 20, 1996 by Laurie Freeman

Move over, canned and bottled juice. Welch's is introducing shelf-stable juice concentrates in containers that look like they belong in the frozen foods section, but instead are ready-to-mix right off the shelf.

Welch's new JuiceMakers, currently distributed in 35% of the United States, will compete in the shelf-stable liquid concentrate drinks segment, a category that Information Resources reports grew 13.1% to $47.7 million in all outlets (food, drug and mass merchandise) for the 52 weeks ended Oct. 8, 1995.

That growth rate makes this segment the fastest growing in the juice category. Shelf-stable bottled juices grew only 5.5% to $3.3 billion during the same period. Canned juices gained only 1.2% to $817.5 million, and aseptic (Juice boxes) grew 1.3% to $765.1 million.

Welch's will go up against Ocean Spray, which holds a commanding 72.9% share of the shelfstable liquid concentrate segment with its line of Ocean Spray cranberry concentrates. However, "studies we've done show that this is a good opportunity for growth," said Jim Callahan, corporate communications director, Welch's. "This market has consistently grown over the last three years, and more importantly, research among heavy users of juices indicates a desire for a more convenient way to buy juice."

JuiceMakers, available in five flavors, including concord grape, cranberry apple and wild berry, are packaged in recyclable aluminum cans that are similar to frozen concentrate containers. The tops pop open, making it easier to pour and less likely to spill than aseptic containers.

Each 11.5-oz. can of JuiceMakers makes the equivalent of 48 oz. of juice. The weight of one 64-oz. bottle of juice is equivalent to five cans of JuiceMakers concentrate, Callahan said.

The suggested retail price for JuiceMakers is $1.39, which is in line with similar aseptic juice concentrates, he added.

Welch's is making available special dispensing racks to retail stores stocking JuiceMakers. The dispensing racks, which use a gravity feed to dispense the cans, can be attached to gondola shelving or placed on the shelf itself. By doing so, the juice takes up unused space that can be translated into money-making inches. The new juices also offer non-food retailers an easy alternative to adding juices without installing expensive refrigeration units.

Alan Patrick, executive vice president of Genovese Drug Stores, said, "We're trying to add more and more food items to our mix. In many stores, we have refrigeration, but where we don't, products like this are helping us offer our customers a more convenient mix."