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Innocent Drinks: Seven Strategy Lessons from the Setbacks of Europe’s Biggest Smoothie Maker
New Nutrition Business, March 2010, Pages: 27
Innocent Drinks rocketed from start-up to over $200 million in retail sales within eight years, creating a brand new category in Europe - fruit smoothies - and enjoying premium prices.
But between 2007 and 2009 its sales plunged by 29% (Neilsen), and prices were slashed.
It’s easy to blame the economic downturn for Innocent’s recent sales decline, but during the downturn many other premium health brands actually grew their sales by 20%-30% even as Innocent’s fell.
This unique 27-page report sets out the seven strategy lessons that can be learnt from the experience of Innocent. These cover:
- Pricing
- Establishing and maintaining a point of difference
- Positioning and branding
- Communicating health benefits
- Packaging innovation
- Consumer targeting
Thanks to in-depth interviews with the company’s founders since 2002, New Nutrition Business has been in the unique position of tracking the rise of Innocent Drinks to its status as Europe’s biggest smoothie brand and the fourth-largest in the world. This report reveals how the company went from start-up to a celebrity brand and the reasons why its strategy meant that it hit trouble in the downturn, even as other health brands prospered.
Innocent’s packaging and distribution, marketing communications, brand positioning, pricing strategies and European brand expansion are all examined in detail.
Author
Julian Mellentin is one of the world's few international specialists in the business of food, nutrition and health. Julian is the owner and editor of New Nutrition Business, the leading source of industry and market analysis, which has focused solely on researching and forecasting the nutrition business since 1995.
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