innocent since coca cola takeover
Since its initial acquisition of an 18% stake in Innocent back in 2009, Coca-Cola has steadily increased its share, acquiring a majority of 58% in 2010, and a more than 90% holding in 2013, for a reported £100 million.
The latest move follows several years of speculation as to a possible exit strategy for its founders. Indeed, Richard Reed, Adam Balon and Jon Wright, who initially launched the smoothie concept at a music festival in 1999, have always planned to make Innocent a global brand and advocated that Coca-Cola’s buying power and distribution network would help them to achieve this goal.
Moreover, the partnership has been a success, with Coca-Cola’s original investment in 2009 following a tough 2008 when Innocent had to lay-off 10% of its workforce after a drop in sales as the credit crunch hit and fruit prices soared. After four years of losses, the company made a profit in 2012.
Innocent has said that Coca-Cola’s increased investment will allow the brand to expand on an international basis and encourage greater innovation, an attribute that is closely associated with the brand, and which has helped to position the brand as the driving force behind the smoothie segment.
Since Coca-Cola further invested in Innocent in 2010, the brand has increased its presence beyond the UK and Ireland, reaching more than 10 international markets by the end of 2012.
Figure 1: Innocent product launches, % of introductions by country, 2010 and 2012
[graphic: image 1]
Mintel GNPD
Much of Innocent’s image rests on ethical credentials
Innocent’s brand personality has been centred on promoting its healthy and ethical credentials, thanks to environmentally friendly initiatives such as its involvement with the Innocent Foundation, which looks to fund development projects in countries where Innocent sources its fruit. Innocent labels its bottles with the pledge to give 10% of its profits to this charity, putting its point across to all who drink it. It also
The latest move follows several years of speculation as to a possible exit strategy for its founders. Indeed, Richard Reed, Adam Balon and Jon Wright, who initially launched the smoothie concept at a music festival in 1999, have always planned to make Innocent a global brand and advocated that Coca-Cola’s buying power and distribution network would help them to achieve this goal.
Moreover, the partnership has been a success, with Coca-Cola’s original investment in 2009 following a tough 2008 when Innocent had to lay-off 10% of its workforce after a drop in sales as the credit crunch hit and fruit prices soared. After four years of losses, the company made a profit in 2012.
Innocent has said that Coca-Cola’s increased investment will allow the brand to expand on an international basis and encourage greater innovation, an attribute that is closely associated with the brand, and which has helped to position the brand as the driving force behind the smoothie segment.
Since Coca-Cola further invested in Innocent in 2010, the brand has increased its presence beyond the UK and Ireland, reaching more than 10 international markets by the end of 2012.
Figure 1: Innocent product launches, % of introductions by country, 2010 and 2012
[graphic: image 1]
Mintel GNPD
Much of Innocent’s image rests on ethical credentials
Innocent’s brand personality has been centred on promoting its healthy and ethical credentials, thanks to environmentally friendly initiatives such as its involvement with the Innocent Foundation, which looks to fund development projects in countries where Innocent sources its fruit. Innocent labels its bottles with the pledge to give 10% of its profits to this charity, putting its point across to all who drink it. It also