Innocent Drinks
Innocent Drinks: seven strategy lessons from the setbacks of Europe’s biggest smoothie maker
Innocent
Innocent
Innocent the collapse of its sales. Innocent is payin g for its failur e to innovate and differentiat e – and as a result its retail is down as much price as 30%-40% in many retail outlets. When the recession ends there is a dange it won’t be able r to get its prices back up again. sacrificing marg It is in to maintain volume – and the expensive ingre with dients found in smoothies that’s a route that can only result in a serious erosion profitability. of
s: seven Innocent Drink ns from strategy lesso f Europe’s the setbacks o ie maker biggest smooth
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that is the It’s not premium pricing in itself is that its problem. Innocent smoothies’ challenge its competitors, core consumers – who, according to Innocent are 20-somethings and early-30s, although – have been million ($62 million/€45 million). maintains they have broad age appeal older, more more affected by the recession than in the affluent consumers. There’s an even closer parallel for Innocent with health super-premium The core consumers of brands example of blueberries, the trendy, continued to benefits are people aged over 40. Professor David priced fruit. Sales of blueberries premium to Hughes, Emeritus Professor of food marketing increase, despite selling at a 600% of the at Imperial College, London, explains apples, even while Innocent sales fell. premium pricing UK’s largest grocery chain, Tesco: “Tesco has six The argument that Innocent’s up to scrutiny. segments of shoppers. The finer foods group – who is the main problem doesn’t stand of them to have an effect – they’re just there as a a income is not just a matter of price, it’s 16% of Tesco’s shoppers – are higher not doing anyone any good are The decline marketing tool, they’re in the minds and include many older, richer people and they are symptom of failing to justify the price and if they put enough of some of them in
Innocent
Innocent
Innocent the collapse of its sales. Innocent is payin g for its failur e to innovate and differentiat e – and as a result its retail is down as much price as 30%-40% in many retail outlets. When the recession ends there is a dange it won’t be able r to get its prices back up again. sacrificing marg It is in to maintain volume – and the expensive ingre with dients found in smoothies that’s a route that can only result in a serious erosion profitability. of
s: seven Innocent Drink ns from strategy lesso f Europe’s the setbacks o ie maker biggest smooth
140 120
that is the It’s not premium pricing in itself is that its problem. Innocent smoothies’ challenge its competitors, core consumers – who, according to Innocent are 20-somethings and early-30s, although – have been million ($62 million/€45 million). maintains they have broad age appeal older, more more affected by the recession than in the affluent consumers. There’s an even closer parallel for Innocent with health super-premium The core consumers of brands example of blueberries, the trendy, continued to benefits are people aged over 40. Professor David priced fruit. Sales of blueberries premium to Hughes, Emeritus Professor of food marketing increase, despite selling at a 600% of the at Imperial College, London, explains apples, even while Innocent sales fell. premium pricing UK’s largest grocery chain, Tesco: “Tesco has six The argument that Innocent’s up to scrutiny. segments of shoppers. The finer foods group – who is the main problem doesn’t stand of them to have an effect – they’re just there as a a income is not just a matter of price, it’s 16% of Tesco’s shoppers – are higher not doing anyone any good are The decline marketing tool, they’re in the minds and include many older, richer people and they are symptom of failing to justify the price and if they put enough of some of them in