International Boost and Industry Overvi

The Wellness Category- Smoothies
The Wellness Category is the one of the fastest growing retail categories in the world.
Obesity and health issues are becoming issues for all western countries, and all companies in the Wellness category are seeing massive growth. Boost is no exception.
Earlier this year, a report by Mintel (www.mintel.com), Chicago, showed the U.S. smoothie market hit $2 billion in sales. To quote the report, “Consumers are embracing the (smoothie) trend in a major way, and for a variety of different reasons.”
Smoothies — classically a blend of fruit, fruit juices and yogurt — began several decades ago as health-oriented offshoots of frappes. Smoothie bars, often little more than a phone-booth size hut equipped with a blender and a ‘fridge, catered to the early health conscious consumers looking for a healthy boost for a quick replacement meal or between-meal refresher.
"Consumers are attracted to smoothies because they are seen as a healthier option to most sweets and on-the-go meals. Now that the smoothie market is a proven success, companies are being pushed to the next level- extreme differentiation. Similar to the coffee market, smoothie companies need to continue developing innovative flavors and additives to keep consumers engaged in the market." David Lockwood, director of
Mintel Reports
Dan Titus, Director of the Juice and Smoothie Association in America stated you cannot ignore the profitability of the smoothie market. “The retail segment of the Juice and Smoothie business remains strong and we are confident that this segment will show positive gains this year,” Titus also went on to say “The Juice and Smoothie business is such a lucrative venture. Smoothie-type products are sold all over the world on cruise ships and golf courses; in bars, movie theatres and hospitals. Companies are seeing this market as a growth opportunity,” Titus said. “Consumers are looking for an alternative to soda; the healthy attitudes that consumers are expressing reflects in the smoothie trend.” This category has now been operating for over 20 years and continues growth from strength to strength. Times have changed however Smoothies and juices are the fast food of the new millennium. Consumers who once grabbed a quick hamburger for lunch or a candy bar for a mid-morning snack are now opting for healthier, fresh alternatives such as blended fruit drinks - “Smoothies”. People of all demographics are getting the message that proper nutrition is just as important as their workout. They understand that real food found from whole food natural sources, do not have to be a tedious time consuming task taken on at home. This growing awareness coupled with Boost mode producing the unique Boost in store experience and great tasting drinks in an easy grab a go location couldn’t be more strategically placed to maximise this emerging consumer trend. The Growth of Boost Juice Bars
Boost Juice is an amazing retail phenomenon with a growth platform of on average of 4 countries and 23 stores a year for the last 4 years. With a group turnover exceeding
$AUD120,000,000 per annum. In an age where childhood obesity is said to be at epidemic proportions, Boost offers a healthy alternative to other fast food options, which is encompassed in a brand perceived to be ' cool'by young consumers.
Boost began after Janine Allis, Boost’s founder and Managing Director visited to the US in 2000, recognized a hole in the Australian market for healthy fast food alternatives, so she developed a business plan and opened the first store in South Australia in 2000.
The brand commenced franchising in 2001 and experience rapid growth reaching the
100 store milestone in 2004 and was named as the BRW Fastest Growing Franchisee in
2005. Since this time Boost has continued to refine and develop its franchisee model and currently has 163 franchisee and 17 company owned stores in Australia. In 2006 the company entered the international marketplace and now has 64 stores operating in 16 countries making it the largest Juice Bar chain in the Southern Hemisphere and is in more countries than any other juice bar in the world.
Boost Juice Bars have implement and maintained an aggressive growth strategy since their inception in 2000, with our mission statement ‘to become one of the world’s most famous and loved brands’. This growth strategy has seen the company grow with stores in most major shopping centers and tourist destinations in Australia. Whilst we will continue to grow within each of our current markets including Australia, we are also pursuing our goal of worldwide domination.
We have recently granted the Master Franchise Rights to the United Kingdom, Republic of Ireland, South Africa, Macau, Thailand, Indonesia, Chile, the GCC (Middle East),
Singapore, the Baltic Region, Malaysia, China, Germany, Korea and most recently India.
We continue to be very excited about the phenomenal opportunity to establish our high growth and high profit business in many other international markets - including Japan
To help ensure success in this market we are seeking groups or individuals with proven retail experience in operating multiple outlets who can commit to the agreed development schedule.

The Boost Experience
Boost was never simply about the health and great tasting juice or smoothie - the brand is based on the entire Boost Experience which takes place every time a customer enters a store. This experience is a combination of a fantastic product, served by positive and energetic people who greet you with a smile and are polite enough to call you by your first name, in a bright and colorful store environment with fun music to match.
This point of difference is further enforced through the brand' s unique tactical campaigns, the customer relations strategy whereby every customer email is responded to personally and the VIBE Club loyalty program which rewards loyal customers.

What are we looking for in our master franchise partners?
Our Master Franchisees come from diverse backgrounds and industries and have varied personal and professional interests.
All of them however, have had significant prior retail experience and have owned/operated successful businesses, with established infrastructure and driven teams with exposure and contacts to leasing, supply chain management, construction, marketing, training and operational expertise.
To help ensure the success in each of these markets we are therefore seeking corporations or individuals with proven retail experience in operating multiple outlets who can commit to the agreed development schedule within each market.
It is also critical that these corporations or individuals have the relevant financial capability to successfully fund the venture, as it is that they share our love life philosophy, our values of honesty and integrity, our desire for healthy living and our passion for delivering exceptional customer service experiences!

The benefits and support our Master Franchise Partners receive are significant and include:
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•
•
•
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A dedicated International Field Support team
On-going access to our world-class marketing and promotional material
A comprehensive Training & Induction Program
A proven operating system and Operations Manuals
Purchasing buying power and our long-established supplier network
Lease negotiation resources and Site Selection
Design & Development, including Project Management expertise
Assistance with Sub-franchisee recruitment and selection
Product creation and analysis expertise
What is the Master Franchise fee?

The initial cost of a Boost Juice Master Franchise varies significantly between countries, depending on variables such as the size of each market and therefore the development schedule. The Master Franchise Fee is discussed in detail with the preferred Master
Franchise prospect/s for each market once these Groups have been identified.
Master Franchise Partners will need a minimum net worth of $US2 million and liquidity of at least $US1million in order to be considered for such an opportunity.

FINANCIAL FACTS:
FACTS
Network Sales Figures: 2000
2000- 2010
FINANCIAL YEAR
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010

DOMESTIC
NETWORK SALES
$
632,671.83
$
4,091,325.09
$
23,071,787.41
$
53,056,471.20
$
77,530,459.74
$
80,706,250.62
$
81,719,154.38
$
94,306,847.71
$
104,164,880.61
$
111,323,430.25

INTERNATIONAL NETWORK
SALES
N/A
N/A
N/A
N/A
N/A
$
89,221.95
$
1,664,969.05
$
6,797,647.21
$
11,685,182.45
$
12,902,030.10

TOTAL
$
$
$
$
$
$
$
$
$
$

632,671.83
4,091,325.09
23,071,787.41
53,056,471.20
77,530,459.74
80,795,472.57
83,384,123.43
101,104,494.92
115,850,063.06
124,225,460.35

otal Store Numbers Year on Year: 20002000 2010
Total
300
264

250

276

242
220

200
187
164

150
138

100
76

50
0

34
5

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Boost Juice Country ountry Count: 2004
2004- 2010
18
16
15

14
12

11

10
9

8
6

5

4
2
0

16

1

2004

2

2005

2006

2007

2008

2009

2010

The Detail:
Turnover
In Australia our stores turnover turnov between $AUD300,000 and $AUD2,400,000
,400,000.
In virtually all shopping centre locations within Australia, our stores have the highest turnover per square metre than any other food retail concept concept. Cost of Goods
The manageability of the Cost of Goods is a huge bonus as 80% of the products are frozen so wastage is kept to a minimum. In the Australian market 26
26-29%
29% Cost of
Goods are being consistently achieved, and considering that the Australian market is one of extremely xtremely high labour costs we are very confident that multiple regions will see considerable savings here.

Labour
You do not need skilled labour (like a bakery), and our training systems that we have developed over the past 5 years allows for quick and effective training which also allow for the stores to be very easily run under management.
Locations
Finding the right site is always a challenge for any retail outlet and smoothies and juices are no different. However this concept has a key advantage in that there is huge flexibility in both its shape and size. The kiosks can be as small as 14 sq m (with external storage) and as large as 120 sq m and having constructed over 250 stores, the variety of shapes and size we have designed allows us to be very flexible with what type of site we choose.
Product
The product is delicious, genuinely healthy and low fat. Obesity and health are a major concern to most people in an increasingly number of countries. We have a product management team that consistently works on new products that are low in fat and high in health. With our product development we review each country individually and cater for local taste preferences to make adjustments to our menu to meet each countries specific needs.
Marketing
This is where Boost truly shines. Boost Juice created a 94% brand awareness rate in 5 years, with a perception of being as “cool” as IPod (independent research) which was achieved through clever, targeted marketing and PR strategies. We have an array of marketing tools in both hard and soft copy, case studies, research and strategies to ensure that the Boost message is launched and consistently delivered loud and clear in each international region.
Design and development
We have an in-house Design and Development, who are continuing to lift the bar with innovation designs and improvements in the systems of the new Boost Juice outlets.
Whether it is a Kiosk, shop or cart, they have the designs and infrastructure to create the prefect store in each region. Boost Juice stores are a bench mark for the other retail outlets, both in Australia and around the world.