Smoothies - UK - October 2008

Table of Contents

• Issues in the Market
• Key themes
• Definitions
• Market in Brief
• Growth has been impressive...
• ...but is beginning to slow
• NPD has risen
• Adspend holds strong
• Innocent' s share eroded
• Non-drinkers now a minority
• Future trends
• Internal Market Environment
• Key points
• In search of a healthy lifestyle
  • Figure 1: Trends for attitudes towards food/health, 2003-07
• Teenagers go for healthier options
  • Figure 2: Trends for consumption of drinks amongst 7-19-year-olds, 2003-07
  • Figure 3: Trends for fruit juice and fruit drinks consumption amongst 7-19-year-olds, 2003-07
• Ethical purchasing
  • Figure 4: Agreement with selected lifestyle statements relating to ethical purchasing, 2003-07
• Convenience and snacking
• Seasonal demand
• Broader Market Environment
• Key points
• Five-a-day
• Demographic trends are mixed
  • Figure 5: Structure of the UK population, by age group, 2003-13
• Employment status
• Rising student numbers boost sales
  • Figure 6: Number of students in Higher Education institutions, 2000/01-2005/06
• Number of ABC1s is rising
  • Figure 7: Forecast adult population trends, by socio-economic group, 2003-13
• VAT
• Raw material price rises
• Superfood status
• Competitive Context
• Key points
• Yogurts and yogurt drinks
  • Figure 8: Retail value sales of smoothies, yogurts and yogurt drinks, 2003-07
• Interest in functional begins to fade
• Fruit -- a more natural but less convenient alternative
  • Figure 9: Expenditure on fresh vegetables and fresh fruit in the last week, 2002-06
• Premium juice offers increased challenge
  • Figure 10: Retail sales of pure fruit juice compared to smoothies, 2003-06
• Frozen alternatives
• Made to order dominates US market
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• Growth is expected to slow
  • Figure 14: UK volume and value sales of smoothies, 2003-08
• Smoothie bar chains continue to expand
• Other channels
• Average prices fall
  • Figure 15: Average retail prices of packaged soft drinks in the UK in £ per litre, 2003-08
• The future of the market
• Economic downturn will result in slower growth
  • Figure 16: Forecast of volume and value of smoothies market, 2003-13
• Factors used in the forecast
• Segment Performance
• Key points
  • Figure 17: UK retail value sales of smoothies, by fruit, dairy and funcational, 2003-08
• Fruit smoothies dominate sales
• Functional receives smoothie bar boost
• Dairy
• Super-premium
• Smoothies for kids
• Organic
• Ambient
• Packaged versus made to order
  • Figure 18: UK value sales of smoothies, by value, by packaged versus make to order, 2003-08
  • Figure 19: UK volume sales of smoothies, by volume, by packaged versus make to order, 2003-08
• Market Share
• Key points
• Innocent is challenged for first time
  • Figure 20: Brand shares in packaged smoothies, 2006-08
• Impact of Tropicana launch
• Own-labels feel the squeeze
• Tesco takes the initiative
• Other retailers
• Companies and Products
• Barefruit Products
• Boost Drinks
• Boost Juice Bars
• Crussh
• Ella' s Kitchen
• Grove Fresh
• Innocent
• Lovejuice
• Ocean Spray
• PJs
• RDA Organic
• The Serious Food Company
• Tropicana
• Zumo
• Brand Communication and Promotion
• Key points
• Adspend rises
  • Figure 21: Main media advertising expenditure on smoothies, 2005-08 (YTD)
• Smoothies take to the small screen
  • Figure 22: Main monitored media advertising expenditure on smoothies, by media type, 2005-08
• Innocent forced to share the limelight
  • Figure 23: Main monitored media advertising expenditure on smoothies, by leading advertisers, 2005-08
• Pushing the message to its limits
• Advertising strategy and themes
• Below-the-line activity
• Channels to Market
• Key points
• Grocery multiples dominate supply
  • Figure 24: UK sales of smoothies, by type of outlet, 2006-08
• Maximising potential
• The Consumer -- Frequency/Usage
• Key points
• Frequency of drinking smoothies
  • Figure 25: Frequency of drinking smoothies, 2006 and 2008
• Those who are drinking more are drinking lots
  • Figure 26: Frequency of drinking smoothies amongst those who have drunk more in the past 12 months, July 2008
• Smoothie time?
  • Figure 27: Consumption times for smoothies (morning, afternoon, midday, evening), 2006 and 2008
• Who is most likely to consume when?
• Students and smoothies
• Migration towards more morning drinking
  • Figure 28: Changes in drinking frequency of smoothies, by time of day it is most often drunk, July 2008
• Appendix
• Advertising data
• Abbreviations
• Appendix: Internal Market Environment
  • Figure 37: Food/health statements, by demographics, 2007
  • Figure 38: Consumption of drinks amongst 7-19-year-olds, by gender, age, socio-economic group and region, 2007
• Appendix: Segment Performance
  • Figure 39: Demographics for types of ready-to-drink fruit and vegetable drinks (including smoothies) and how they are consumed, 2008
• Appendix: The Consumer -- Frequency/Usage
  • Figure 40: Demographics for usage and frequency of ready-to-drink fruit and vegetable drinks (including smoothies), 2007
• Frequency
  • Figure 41: Frequency of drinking smoothies, by demographics, July 2008
• Consumption times
  • Figure 42: Consumption times for smoothies, by demographics, July 2008
• Detailed demographics
  • Figure 43: Consumption frequency of soft drinks, 2003-07