Juiceit Up!

December 1, 2005
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Juiceit Up!

Shelf-stable juice numbers for the total category are slowly increasing, but it’s the private label programs that are considered the most refreshing.
Orange, lemon, pineapple and grape — the sky’s the limit when it comes to shelf-stable juice varieties. And that’s certainly the tone in the market right now with regard to private label programs. Retailers across the country enjoyed $599.5 million in sales last year for their shelf-stable bottled juice programs, according to Chicago-based Information Resources Inc. While the total category was down 1.5 percent, private label shelf-stable bottled juices were able to obtain a 2.2 increase. So what are successful retailers doing to surpass the total category?
The Imperatives:
According to industry professionals, retailers should focus on the healthy benefits of this category. Additionally, successful retailers suggest finding a harmonious balance between merchandising a variety of juices in the program without over-saturating the shelves.
The Demographics:
Women with children are the main consumers for this category, but with the growing demand for healthful eating habits, retailers should focus on providing consumers with information on the benefits of their private label shelf-stable bottled juices.
Adjacencies:
The core products in this category should be placed at eye-level for the consumer — they shouldn’t have to spend time looking for the products being merchandised. Successful retailers also suggest making a section-within-a-section for new items such as organics.
Shelf-Stable Bottled Juices
Sales (in millions) and Promotion Lift
ACTIVITY PRIVATE LABEL TOTAL CATEGORY
Shelf-Stable Bottled Juices
$ Volume$599.5$3,449.8
% Change Vs. Year Ago2.2%-1.5%
% Dollars, Any Merchandising47.8%38.8%
% Change Vs. Year Ago-1.9%-1.1%
% Dollars, Display Only18.9%11.7%
% Change Vs. Year Ago0.7%-0.2%
% Dollars, Feature Only7.5%7.6%
% Change Vs. Year Ago-0.8%-0.2%
Source: Information Resources Inc. Total supermarkets, drugstores and mass merchandisers (excluding Wal-Mart) for 52 weeks ending Oct. 2, 2005.
Cross-Merchandising Opportunities:
Shelf-stable bottled juices are easily cross-merchandised with branded cereal. Additionally, retailers have placed products in atypical areas throughout the store to help promote impulse buys — such as placing lemon juice in the meat and fish sections.  
Seasonality:
For the core items in the category, the fall is a very strong season. Lemonade and fruit drinks sell well in the spring and summer, but the category is starting to see a demand for them throughout the year — this is being attributed to consumers being more health-conscious.
Promotional Lift:
BOGOs and temporary mark-downs drive sales, but some retailers are being a bit more creative. One leading retailer promotes with a local events, such as a healthy living expo or mini marathons.
Pricing vs. National Brands:
If the price is set at 20 percent lower than national brands, customers will be able to recognize the value in the private label product, without diminishing the quality of store brands. PLB

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