Carb Comedown
Seeing light at the end of the low-carb tunnel, juice manufacturers prepare an onslaught of new products.
by Julie Cook Ramirez
Picture this: You’re
a manufacturer of a product that’s just bursting with natural
goodness. Over the years, scientific studies have proven a bevy of health
benefits related to consumption of your product.
People take to the product, and for many, it becomes a
staple, a regular component of their daily regimen.
But in spite of all the positive health news, nothing
ever happens to really ignite consumption.
Then, after a decade of unchecked indulgence, people
suddenly become health and weight conscious.
Unfortunately, it’s not fat that people have
chosen to obsess about — it’s the carbohydrates. As fate would
have it, your product is not only bursting with nutrients, it’s full
of carbs. Consequently, sales fall and you find yourself watching
health-conscious people shun your healthy product.
That’s exactly the fate suffered by juice
manufacturers since the dawn of the low-carb craze. Once considered by many
to be the elixir of good health, juices have taken quite a blow due to
their relatively high carb content.
Overall, sales of refrigerated juices fell 2.9 percent
in dollars and 2.3 percent in units during the 52-week period ending
October 31, 2004, according to Chicago-based Information Resources Inc.
(IRI). Bottled juice sales didn’t fare much better, dropping 1.1
percent and 1.3 percent, respectively.
“Like most other industries confronting this
whole carbohydrate thing, we are looking to that as being a lot of the
reason that juice sales are trending down,” says Sam Austin, director
of marketing, Johanna Foods Inc., Flemington, N.J.
Orange juice, in particular, has experienced a
significant setback as a result of its high carbohydrate content. According
to IRI, bottled orange juice sales plummeted 28.5 percent in dollars and
32.8 percent in units, while refrigerated orange juice sales fell 4.6 and
3.1 percent, respectively.
Many juice manufacturers have responded with low-carb
alternatives. Bradenton, Fla.-based Tropicana, a division of PepsiCo,
launched Tropicana Essentials Light ‘n Healthy, containing one-third
less sugar and calories than regular orange juice. Meanwhile, Houston-based
Minute Maid, a division of The Coca-Cola Co., launched Minute Maid
Light, a line of low-calorie/low-carb juice drinks.
In Port Washington, N.Y., Apple & Eve launched
Light & Fruitful, a line of low-carb juice beverages in 64-ounce PET
bottles and 16-ounce single-serve bottles. Sweetened with Splenda®, each flavor
contains at least two-thirds fewer calories than traditional juice blends
and no more than 9 grams of carbs.
TOP 10 REFRIGERATED JUICE/DRINK BRANDS* | ||||
$ Sales(In Millions) | % Changevs. Year Ago | Unit Sales(In Millions) | % Changevs. Year Ago | |
Total Category | $3,856.0 | -2.9% | 1,708.0 | -2.3% |
Tropicana Pure Premium | 1,164.0 | -5.1 | 423.3 | -2.9 |
Private Label | 412.5 | -13.1 | 208.9 | -11.7 |
Minute Maid Premium Juice | 411.1 | -15.9 | 145.8 | -15.9 |
Florida’s Natural | 231.8 | -4.2 | 97.3 | -5.0 |
Sunny Delight | 194.5 | -6.0 | 113.0 | -9.2 |
Simply Orange | 149.3 | 65.2 | 56.8 | 72.2 |
Dole Blended Fruit Juice | 99.3 | -8.9 | 38.9 | -8.5 |
Tampico | 98.4 | -9.7 | 77.5 | -9.5 |
Minute Maid Premium Drink | 79.6 | -4.5 | 44.1 | -1.0 |
Welch’s Fruit Drink | 68.9 | 0.7 | 2.1 | 2.0 |
* Total sales in supermarkets, drug stores and mass merchandisers, excluding Wal-Mart, for the52-week period ending October 31, 2004.SOURCE: Information Resources Inc. |
TOP 10 REFRIGERATED TEA BRANDS* | ||||
$ Sales(In Millions) | % Changevs. Year Ago | Unit Sales(In Millions) | % Changevs. Year Ago | |
Total Category | $138.2 | 14.3% | 86.8 | 11.7% |
Turkey Hill | 40.0 | 22.5 | 24.5 | 22.3 |
Private Label | 16.5 | 4.2 | 11.7 | 0.1 |
Red Diamond | 13.8 | 31.9 | 8.2 | 39.0 |
Nestea | 8.6 | -4.2 | 4.1 | -6.2 |
Milos | 8.6 | 18.1 | 4.6 | 25.9 |
Arizona | 7.5 | -8.4 | 3.7 | -10.3 |
Clover Farms | 4.6 | -10.4 | 2.8 | -19.0 |
Swiss Premium | 3.9 | 38.7 | 3.6 | 32.4 |
Minute Maid Premium | 3.5 | -18.6 | 2.4 | -16.0 |
Galliker | 3.3 | 0.4 | 2.1 | -0.2 |
* Total sales in supermarkets, drug stores and mass merchandisers, excluding Wal-Mart, for the52-week period ending October 31, 2004.SOURCE: Information Resources Inc. |
Chelsea, Mass.-based HP Hood has added several juice
drinks to its Carb Countdown line of reduced-carb dairy beverages. They
contain 75 percent fewer carbs and 90 percent less sugar than regular
juice.
While such products may seek to answer the demand for
juices with fewer carbs, Austin stresses that in producing a low-carb
product, manufacturers have eliminated the ability to call it
“juice” because it is no longer 100 percent juice. Technically,
it has become a “juice beverage.”
“To reduce the carbohydrates, you add some
water, and then to bring it up to an acceptable level of sweetness, you add
a non-nutritive sweetener, and then a little bit of texturizer to replace
some of the texture that you lost when you put in the water,” Austin
explains. “Basically, what you end up with is a watered-down juice
with things to make it taste better.”
That said, Johanna Foods was not about to be left
holding the bag when consumers came calling for low-carb juice beverages.
The company rolled out Tree Ripe Premium Lite, a vitamin-enriched orange
juice beverage, featuring half the sugar, carbs and calories of regular
orange juice.
Although the market appeared to be crying out for just
such a product, Austin reports that consumers have given low-carb juice
beverages a resounding thumbs-down because they failed to live up to taste
expectations. Fortunately, as with every other fad, the whole low-carb
craze has a time limit — and it appears that strict low-carb dieting
may have already hit its peak.
Investing for the Future
“There are a number of indications that low-carb
diets are trending down and that consumers are starting to moderate their
food and beverage consumption, coming back to more normal balance between
protein and carbohydrates in their diet,” says Ron Schroder, director
of marketing, Swiss Valley Farms, Davenport, Iowa. “Because of that,
I think we will start to see some growth coming back into the regular juice
categories.”
Manufacturers have begun preparing for that
eventuality, investing heavily in R&D efforts resulting in innovative
new products and packaging, intended to help them recapture lost share of
stomach.
Apple & Eve has already unveiled its latest
creation: Tropicals, a line of 100 percent juice blends. Tropicals are
considered an extension of Apple & Eve’s line of 100 percent
juices sold in 64-ounce PET bottles, which were given a new shape and
proprietary look.
New product introductions abound at City of Industry,
Calif.-based Langer Juice Co.
In the first quarter of 2005, the company plans to
unveil a six-SKU line of shelf-stable pomegranate juices. The products will
be sold in both multi-serve PET and single-serve PET bottles and in a
32-ounce glass bottle under the company’s nutrition label, L&A.
Langer already rolled out a four-SKU line of strawberry juice blends, as
well as Langer’s Jooc Juice, a kid-oriented 100 percent juice
product. Boasting a sweet taste that appeals to children, Jooc (“Just
Out of Curiosity”) Juice is available in flavors such as Candy Apple,
which company vice president Bruce Langer describes as “apple juice
with a candy flavor.”
Kid-friendly juice products have also been at the
heart of R&D efforts for Dallas-based Dean Foods Co. Concerned about
childhood obesity, Dean set out to create a low-calorie, nutritious
beverage that would be embraced by both parents and children.
The result is 80 ‘N Sunny, a lowfat milk
and fruit juice blend, geared toward children ages 2 to 12, sold under the
Land O’Lakes brand. With 80 calories, each 8-ounce serving contains
as much calcium as an 8-ounce glass of milk, and as much vitamin C as an
8-ounce glass of orange juice.
Before introducing the product, Dean spent two years
assembling focus groups with kids and parents.
Researchers discovered parents weren’t the only
consumers interested in the contents of kid-oriented products. According to
Dave Haley, regional director of marketing for Dean’s Midwest region,
kids also are paying close attention to what goes into their own bodies.
Consequently, Dean has dedicated a section of its 80
‘N Sunny Web site to explaining to kids why they need various
nutrients.
“Kids are starting to become really solid
consumers regarding the nutrition facts panel,” says Haley.
“That means we, as marketers, have got to start talking about the
benefits of our products to the actual target and putting it in the
language that they can understand.”
Julie Cook Ramirez is a freelance journalist
based in the Chicago area.
$OMN_arttitle="Carb Comedown";?>