Innovation around low-sugar, plant-based liquid is seeping into an OG better-for-you drink category, and no, we aren’t talking about “Modern Soda” or energy drinks. Today, senior reporter Lukas Southard has all eyes on the smoothies and juices sector.
Califia Farms is taking a sweet, indulgent approach with the launch of a low-sugar smoothie-like line called Creamy Refreshers (one of which looks like an attempt to bottle up Starbucks’ iconic Pink Drink in Califia’s large-format, trademark jugs). The portfolio extension includes four SKUs – Strawberry Creme, Key Lime Colada, Piña Colada and Orange Creme – that have “nearly 60% less sugar than leading fruit juice beverages,” according to a press release.
Califia’s play is similar to that of Vita Coco which launched its Treats line in April last year. Vita Coca has doubled down on the sweet treat adding a second variety, Orange and Cream, earlier this month.
Though significantly more saccharine than Califia (Vita Coco’s touts 29 grams added sugar per 8 oz. Treats carton), the pairing of a recognizable, plant-based beverage brand in a new indulgent, smoothie-adjacent format appears to be what brands are betting on here.
Looking towards an old smoothie favorite, Mexican beverage producer Grupo Jumex has also recently revived Odwalla. Does this mean there’s a growing demand for blended fruit drinks? After taking a step back, it becomes a little less clear where these brands are seeing opportunity.
Judging by recent sales data, consumers don’t seem keen on snagging a smoothie from the cold case. Refrigerated juice and drink smoothie dollar sales were down 9% to $767.6 million in the latest 52-week period ending February 23, according to Circana MULO+ tracking. This could be the opportunity Odwalla, Califia and Vita Coco are trying to capitalize on by bringing plant-based innovation to sweeten up the category.
However, adjacent categories like the blended fruit juice and refrigerated vegetable juice/cocktail sets were both up 2% and 8.7%, respectively. These segments are led by similar brands including Suja, Natalie’s and Naked. Could we see those companies extend their brand equity into the smoothie set? One company already has.
Newly-established Generous Brands (the beverage-focused arm of Butterfly Equity) has recently gone all-in on smoothies and juices in grocery retailers through both its Bolthouse Farms and Evolution Fresh brands, as well as via its Sambazon manufacturing partnership. Flexing that manufacturing might, Generous is also launching a “turn-key” white-label juice portfolio that could be a more efficient option to expensive in-store juice bars.
Go Deeper: Juice Brands Face Down Growing Challenges