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Market trends and developments

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Introduction

a. MARKET TRENDS AND DEVELOPMENTS The juice and smoothies industry is the fast food industry of the millennium. Consumers who once grabbed a quick hamburger for lunch or a candy bar for a mid-morning snack are now going for healthier, fresher alternatives such as blended fruit drinks, also known as smoothies. In 2002, Juice and smoothie sales generated $1 billion by juice bars and other retail venues in the U.S alone which is a phenomenal number considering the average price for a smoothie is around $4.1 The juice and smoothie market has grown worldwide by more than 30 percent each year for the past four years and isn't showing any signs of slowing down. It is said that in comparison with the fast food market, the juice and smoothie industry is growing at an annual rate of 30% while the fast food industry is growing at a rate of 3%. The profitability of the juice and smoothie market cannot be ignored. According to Dan Titus, Director of the Juice and Smoothie Association stated that "the retail segment of the Juice and Smoothie business remains strong and we are confident that this segment will show positive gains this year." He also said that this industry is very lucrative as it is sold all over the world on cruise ships, golf courses, bars, movies theatre's, etc. ...read more.

Middle

For example, understanding the provisions of the Dietary Supplement Health and Education Act (DSHEA) is helpful for those involved in the design of a functional beverage. Traditionally, the Food and Drug Administration (FDA) has considered dietary supplements to be essential nutrients such as vitamins, minerals and proteins. Some of these items today include botanicals such as 'ginseng' which can apparently give a shot of energy and sexual prowess. According to DSHEA, claiming that a dietary supplement either prevents, treats or cures a specific disease is not allowed unless approved under the new drug provisions of the 'Food and Drug Cosmetic Act.'6 Statements can be made about classical nutrient deficiency diseases if they disclose the occurrence of the disease in the United States. Statements can also be made concerning the 'structure or function' of the body or the state of well being expected from consuming the supplement. According to Dr. Lee Beck, a nutritional expert, nutrients such as "LactoActin is good for people that have rheumatoid arthritis and for elderly people who suffer from inflammatory symptoms. We can't say that it's an anti-inflammatory because that puts it into the drug category. We can make the statement that it supports strong joints and muscle flexibility," notes Beck. The challenge is to go as far as the law will allow without stepping over boundaries. ...read more.

Conclusion

d. ASSESS THE MARKETING OPPORTUNITY Criteria used to assess marketing opportunities.... --> With rising awareness of health issues, functional foods and especially beverage nutraceuticals create particularly effective segmentation. People are more aware of nutrition and are specializing their smoothies to fit their needs. --> Juice and Smoothie operators should consider the potential in increased revenue they could make. For example, people are willing to spend the three, four, or five dollars for that one little indulgence of impulse buying behaviours. --> Determining the viability of a beverage operation in a particular store is important. Then evaluating the current store traffic and food services business, as well as competing operations close to the store can ensure a successful setup of the business. --> Observing the current state of the industry is important as the marketing opportunity may not be suited to individual needs of the business. It is critical to the future success of the business to perform further research to see whether trend they focus on will be an ideal marketing opportunity for them. --> Co-Branding Opportunities. Unit and multi-unit franchises can be offered to existing businesses. This allows for putting a juice and smoothie business into an existing business, which allows the two businesses to be mutually rewarding. Convenience zones and fitness centers are just some possible opportunities to co-brand with. ...read more.

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