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Cherrygood Case Study: Using Product Differentiation to Achieve Success within the Dwindling UK Juice and Smoothie Market
Datamonitor, June 2011, Pages: 24
Introduction
Amid a dwindling UK juice and smoothie category, Cherrygood has achieved notable market success following its launch in 2009. In its first year of operation the brand reported a turnover of £1.2m. Through its taste and specific health benefits, Cherrygood have formed a point of product differentiation and been able capitalize on an untapped niche within the UK soft drinks market.
Features and benefits
- Grow sales of juice and smoothie products by learning how consumer’s health and sensory needs can be leveraged to enhance brand credibility.
- Stimulate ideation and invigorate brands by learning from Cherrygood’s recent success in the fruit juice segment.
- Gain a competitive edge in a dwindling UK juice and smoothie category by uncovering the core needs of today’s consumers.
Highlights
In the wake of the economic downturn, UK consumer down-trading has been rife across the consumer packaged goods (CPG) industry. As a result, the UK juice and smoothie segments has declined at compound annual growth rates (CAGRs) of 1.7% and -20.4% respectively, as shoppers continue to switch to cheaper drinks and soft drink sub-categories.
Amid a dwindling UK juice and smoothie category, Cherrygood reported a turnover of £1.2m for its first 12 months following its launch. Given the fact that smoothie brand Innocent achieved just £200, 000 in sales in its first year, the scale of Cherrygood’s success is evident.
The use of Montmorency cherries has enabled Cherrygood to boast a range of unique and superior health benefits, from muscle recovery in athletes to alleviating gout. As a result, Cherrygood has been able to tap into the consumer trend towards 'positive nutrition' by providing consumers with an affordable, yet novel, health-focused beverage.
Your key questions answered
- How has UK consumer down-trading impacted on the UK juice and smoothie category following the recession?
- How has Cherrygood formed a point of differentiation in the UK juice and smoothie market, and in doing so gained a competitive edge?
- What are the key consumer trends shaping purchasing behaviour in the UK soft drinks market?
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