Innocent Drinks rocketed from start-up to over $200 million in retail sales within eight years, creating a brand new category in Europe - fruit smoothies - and enjoying premium prices.But between 2007 and 2009 its sales plunged by 29% (Neilsen), and prices were slashed.It's easy to blame the economic downturn for Innocent's recent sales decline, but during the downturn many other premium health brands actually grew their sales by 20%-30% even as Innocent's fell.This unique 27-page report sets out the seven strategy lessons that can be learnt from the experience of Innocent. These cover:- Pricing- Establishing and maintaining a point of difference- Positioning and branding- Communicating health benefits- Packaging innovation- Consumer targetingThanks to in-depth interviews with the company's founders since 2002, New Nutrition Business has been in the unique position of tracking the rise of Innocent Drinks to its status as Europe's biggest smoothie brand and the fourth-largest in the world. This report reveals how the company went from start-up to a celebrity brand and the reasons why its strategy meant that it hit trouble in the downturn, even as other health brands prospered.Innocent's packaging and distribution, marketing communications, brand positioning, pricing strategies and European brand expansion are all examined in detail.AuthorJulian Mellentin is one of the world's few international specialists in the business of food, nutrition and health. Julian is the owner and editor of New Nutrition Business, the leading source of industry and market analysis, which has focused solely on researching and forecasting the nutrition business since 1995.

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Innocent Drinks: seven strategy lessons from the setbacks of
Europe's biggest smoothie maker
Published on March 2010
Report Summary
Innocent Drinks rocketed from start-up to over $200 million in retail sales within eight years, creating a brand new category in Europe
- fruit smoothies - and enjoying premium prices.
But between 2007 and 2009 its sales plunged by 29% (Neilsen), and prices were slashed.
It's easy to blame the economic downturn for Innocent's recent sales decline, but during the downturn many other premium health
brands actually grew their sales by 20%-30% even as Innocent's fell.
This unique 27-page report sets out the seven strategy lessons that can be learnt from the experience of Innocent. These cover:
- Pricing
- Establishing and maintaining a point of difference
- Positioning and branding
- Communicating health benefits
- Packaging innovation
- Consumer targeting
Thanks to in-depth interviews with the company's founders since 2002, New Nutrition Business has been in the unique position of
tracking the rise of Innocent Drinks to its status as Europe's biggest smoothie brand and the fourth-largest in the world. This report
reveals how the company went from start-up to a celebrity brand and the reasons why its strategy meant that it hit trouble in the
downturn, even as other health brands prospered.
Innocent's packaging and distribution, marketing communications, brand positioning, pricing strategies and European brand
expansion are all examined in detail.
Author
Julian Mellentin is one of the world's few international specialists in the business of food, nutrition and health. Julian is the owner and
editor of New Nutrition Business, the leading source of industry and market analysis, which has focused solely on researching and
forecasting the nutrition business since 1995.
Table of Content
Table of Contents
1. Executive Summary
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2. Seven strategy lessons: economic downturn exposes flaws and strengths
Lesson 1: Talking to the wrong consumers
Lesson 2: No point of difference
Lesson 3: No benefit you can feel
Lesson 4: Aiming a niche product at the mass market
Lesson 5: No packaging innovation
Lesson 6: Failed to open new categories and segments
Lesson 7: Flawed international strategy
3. The Innocent story
3.1 Rapid sales growth
Success with smoothies
Factors contributing to early success
3.2 Brand positioning: naturally functional, fruit, fun, tasty and convenient
Brand adds fibre-digestive health message
Core brand messages focus on 5-a-day benefit
3.3 Communications strategy
Educating health professionals
3.4 Packaging and distribution strategy
3.5 Pricing strategy
Premium pricing
Price-slashing to protect brand
3.6 Innovation
Mixed performance on innovation
A me-too product under-performs
Orange juice another me-too
4. International expansion
4.1 Hope from Coca-Cola partnership'
4.2 Challenges of expansion
4.3 Does premium-pricing translate to other countries'
5. Moving forward with kids
5.1 Kids market focus in bid to revive flagging fortunes
5.2 Successful kids brand sees sales slump
5.3 Price-slashing to stop collapse
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