Article

Innovation adds flavor to juice, smoothie segment

Industry research leader IBISWorld’s Juice & Smoothie Bars market research report pegs its size at over $2 billion.

November 6, 2015

By Baljit Singh, Deal Highway

With growing awareness about the primacy of good health in leading a fulfilling life, innumerable people are waking up to the benefits of health drinks and natural energy boosters.

As a result, an increased focus on the health and wellness segment is shaping consumption habits across brands. Wellness is the one of the fastest-growing retail categories, and health benefits are driving interest in juice drinks and smoothies to new heights. Today, consumption patterns show a departure from the classic orange, apple and mango drinks towards innovative flavors and products. The market is now moving beyond traditional flavors and offering a whole new range of fruit and vegetable drink options.

Industry research leader IBISWorld’s Juice & Smoothie Bars market research report pegs its size at over $2 billion. Juice-based offerings took off several decades ago as a healthy offshoot of frappes, and smoothie bars cater to health-conscious consumers looking for a boost of energy between meals. Some also opt for them as quick and healthy on-the-go-meals.

Health is the main driver for the product design in this sector. These are some of the drivers for this market segment:

• Anti-Ageing Foods
• Bone Health
• Diabetes
• Energy Drinks
• Fitness
• Gastrointestinal Health
• Heart Health
• Mental Performance
• Obesity
• Physical Performance
• Protective Foods
• Snack Foods
• Sports Drinks
• Stress-Fighting Foods

A variety of brands are embracing juice options, including Charley's Grilled Subs and Chick-fil-A

Charley's Grilled Subs / Charley's Philly Steaks

Since its inception in 1986, Charley's has been known for its three core menu products: Philly Cheese Steaks, Fries and Lemonades. Its all-natural lemonades are made from three simple ingredients: sugar, lemon juice and filtered water. In addition to their sweet and tart Original Lemonade, Charley's offer three bold flavors of hand-swirled Signature Lemonades, made with real fruit, including strawberry, blueberry and peach. 

The team said the following are some of the key market trends driving the offerings:

• Customers seeking flavor and variety when they dine out. Emerging flavor trends, including tropical-inspired, such as coconut, watermelon and passion fruit. As a flavor leader, Charley's recently launched a limited-time offer lemonade with a tropical profile — Kiwi Lemonade made with real Kiwi fruit bits.
• Customers demanding natural, better-for-you options. Charley's has always served premium ingredients, including its all-natural lemonades. Charley's lemonades are made with simple, all-natural ingredients, with no artificial sweeteners -- lemon juice from real California lemons, sugar and filtered water. Their Signature Lemonades are hand-swirled with real fruit.
• Continuous innovation and limited time offers. The chain recently launched a sweet and tart limited-time flavor of its Signature Lemonades — Kiwi Lemonade. The Kiwi Lemonade is all-natural with no artificial sweeteners. It is made from simple ingredients, including lemon juice, water, sugar and real chunks of Kiwi. It has quickly become a customer favorite.

"We are excited to be offering a new Signature Lemonade flavor. This is the first time Charley's has launched a limited-time flavor of our famous all-natural lemonades,” said Kris Miotke, VP of Marketing. “We are innovating new ways to give our customers big flavor at all levels. Only at Charley's can you get all-natural lemonade made from simple ingredients and real fruit."

Chick-fil-A

Earlier this month, Chick-fil-A, known for its original chicken sandwich, announced the addition of its first organic menu option — the Honest Kids’ Appley Ever After Juice, to the Chick-fil-A Kid’s Meal. This better-for-you option has first been introduced in Florida restaurants and will be available in more than 1,900 restaurants nationwide by January 2016.

Appley Ever After is available in 6-ounce juice boxes and is sweetened with organic fruit juice. It contains no additives, high-fructose corn syrup or artificial food color and has less than half the calories and sugar of the previous apple juice offering.

"We know our guests are looking for healthier menu items, and this is a drink, with fewer calories and less sugar, that parents should feel good about ordering for their kids. This is just one of many ways we are focusing our efforts on adding healthier options to our menu," said Matt Abercrombie, senior consultant of Menu Development for Beverages and Dessert for Chick-fil-A.

Embracing on-the-go and organic beverages

More restaurants are now offering organic menu options to customers because it goes a long way in improving brand confidence and adding new customers. Jamba Juice, for example, recently launched a new line of organic, non-GMO (Genetically Modified Organisms), ready-to-drink juice blends. The company focuses on a commitment to provide consumers with better-for-you beverage choices. The product comes bottled for on-the-go convenience of customers.

Whiskey Cake Kitchen and Bar, part of the restaurant chain from Front Burner Restaurants, offers a "Juice Drink" menu at lunch and brunch. All juices are prepared fresh every morning, and customers often add their favorite spirit at happy hour. The brand features drinks, including the "Little Pink Drink," which contains guava, grapefruit, cranberry and pineapple juices, said Bonnie Wilson, director of Independent Bar Concepts at Frontburner Restaurants.

"It is so exciting to be able to craft fresh, bright flavors together to create tasty options for our guests that are healthy and unique," she said.

Currently, this is how various industry majors and other players are doing their bit to slowly but steadily shape the new juice and smoothie bar segment. I predict that this segment is likely to become a major revenue generator for serious players.

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