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Tesco Fruit Smoothies Ripped Off Innocent Smoothies Design


Saberu

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The innocent brand is just that, a brand. Anyone can squash and mix fruit juices. There is no difference between Tesco doing it and them. They have to create the illusion in the mind that innocent juice is somehow better than generic so people pay more for the product. That means a large advertising budget because they are not selling juice, they are selling mental programming. If they are successful at that Tesco will stock it because its what people ask for. They make money either way.

Noticed this with Tesco's own Bran Flakes. Their 'Value' ones are 70p a box for 750g, the 'Healthy Living' ones are over a pound (1.10?) and if you look at the nutrition box and ingredients list they are EXACTLY the same! That is 40 pence of very easy profit per box, brought about by the mind programming of "Value stuff is crap, Healthy Living stuff is good for me".

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The point is it would be very easy for Tesco to sell their smoothies at a loss for a few months or a year until they had a big market share

:

Do we really want all our food to be made by Tesco, all our clothes to be made by Tesco? etc etc

Seems like the question answers itself to me.

Which makes me curious to know whether an equivalency for the technology world's "incubator" structure (where an R&D outfit is designed from the ground up to sell its IP - if viable - to a predetermined large cap, selected at the outset, as its exit strategy) exists in retail.

Mr ex-Chain Retailer?

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They are an inexperienced start-up whose biggest competitor in the smoothies market is owned by PepsiCo, and they say they're not worried. Why should they be? They're outselling their rivals by three to one.

...

in less than eight years the business has grown to a current turnover of almost £100m. They have made profits (about 7 to 8 per cent) every year, have no business debt and their market share is estimated at 65 per cent. Innocent has become loved by legions of fans who regard 'Fruit Towers' as the world's most desirable office building (it's actually a one-storey shed on an industrial estate in west London).

http://www.guardian.co.uk/business/2007/fe...erverbusiness12

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Noticed this with Tesco's own Bran Flakes. Their 'Value' ones are 70p a box for 750g, the 'Healthy Living' ones are over a pound (1.10?) and if you look at the nutrition box and ingredients list they are EXACTLY the same! That is 40 pence of very easy profit per box, brought about by the mind programming of "Value stuff is crap, Healthy Living stuff is good for me".

Sounds like it may be the case that it's the same product There used to be a few where the cheaper brand was identical inside to the more expensive, Weetabix being one example off the top of my head. However, when I was in grocery most was not and a large amount of the value stuff was very low quality product deliberately produced to a price point.

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Look, there's a really simple way of examining this;

1. Ask yourself what the raw material cost of 1L of Innocent Smoothie is.

2. Ask yourself whether Innocent have a proprietorial technical process for producing Smoothie which nobody else has. Something they invented and have either protection over, or is a genuine secret.

If the answer to 1 is very, very remote from the RSP (say less than 28%) and the answer to 2 is "No", then you have a brand premium based on nothing but consumer recognition. Such a premium is temporary and will be competed out in the short/medium term.

I actually have no idea what the answer to these questions are in the case of Innocent because I don't buy it, but I do understand the principles. Followers of what I take to be mashed up fruit will know, but you'll see from that description that I am not particularly impressed with a premium product that seems to me to be no more than what I can do with a food blender and fresh fruit. Unless I'm wrong it is one of those things that will be destroyed by the reduction in number of people with more money to spend than they know what to do with, and cheaper competitors including own label.

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If the answer to 1 is very, very remote from the RSP (say less than 28%) and the answer to 2 is "No", then you have a brand premium based on nothing but consumer recognition. Such a premium is temporary and will be competed out in the short/medium term.

This is precisely why I want to know if the retail industry has discovered the questionable joys of the incubator yet.

It's a structure that's working out very, very well for the C vendor.

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Look, there's a really simple way of examining this;

1. Ask yourself what the raw material cost of 1L of Innocent Smoothie is.

2. Ask yourself whether Innocent have a proprietorial technical process for producing Smoothie which nobody else has. Something they invented and have either protection over, or is a genuine secret.

If the answer to 1 is very, very remote from the RSP (say less than 28%) and the answer to 2 is "No", then you have a brand premium based on nothing but consumer recognition. Such a premium is temporary and will be competed out in the short/medium term.

I actually have no idea what the answer to these questions are in the case of Innocent because I don't buy it, but I do understand the principles. Followers of what I take to be mashed up fruit will know, but you'll see from that description that I am not particularly impressed with a premium product that seems to me to be no more than what I can do with a food blender and fresh fruit. Unless I'm wrong it is one of those things that will be destroyed by the reduction in number of people with more money to spend than they know what to do with, and cheaper competitors including own label.

That's all very well but take something as simple as orange juice. The market can support all kinds of variations in price and quality. As it happens I think that Innocent's fresh orange juice comes closest of any on the market to the taste of real freshly squeezed oranges. If that is an indication of the quality of the fruit and processes they use for their smoothies then you can see some justification for the premium price tag.

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This is precisely why I want to know if the retail industry has discovered the questionable joys of the incubator yet.

It's a structure that's working out very, very well for the C vendor.

Sort of. Laptop batteries running out, will try to recall some examples and post a more expansive reply later.

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If that is an indication of the quality of the fruit and processes they use for their smoothies then you can see some justification for the premium price tag.

That's the question. I suggest that sourced quality of fruit is an unsustainable advantage (easily copied) whereas a clever processing advantage (a new technique or some process with a massive barrier to entry) is better. Time will tell whether they have anything substantial.

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Innocent Smoothies are high fructose garbage anyway. If you want whole fruit smoothies get a powerful blender and, um, whole fruit. Takes a minute.

Well that's kinda my issue with it all.

As the recession bites we should see more of this (much as the coffee shops are doomed).

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Sounds like it may be the case that it's the same product There used to be a few where the cheaper brand was identical inside to the more expensive, Weetabix being one example off the top of my head. However, when I was in grocery most was not and a large amount of the value stuff was very low quality product deliberately produced to a price point.

Yes they certainly have some crap in the Value range too, the Value pasta sauce sweetened with saccharine was particularly vile.

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That's all very well but take something as simple as orange juice. The market can support all kinds of variations in price and quality. As it happens I think that Innocent's fresh orange juice comes closest of any on the market to the taste of real freshly squeezed oranges. If that is an indication of the quality of the fruit and processes they use for their smoothies then you can see some justification for the premium price tag.

I can see a justification for selling the IP to a large-cap at less than from-scratch development cost once the newly identified market matures enough to segment; it's lunacy to compete with those who have existing infrastructure, lower customer acquisition costs, and a cheaper cost of capital in any dimension other than time to market.

If Innocent hasn't been designed with this in mind - more fool their owners.

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Smoothies are for people who cant be arsed peeling an orange.

Just like Mocachocachicachinos, public consumption of these products will slowly decrease until they become what they have always been - luxury items.

IMO.

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We have a Co-op near where I work, they started doing hot food about 11am through to 2ish. Put the local cafe and the sandwich van out of business. Soon as they went bust, the co-op changed the type of food from nice pasties and wraps to Dog-excrement flavour ones and funny smelling bacon, sasage and egg baps.

And why would the Co-op deliberately do that d'you think?

p

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Just bought some Gu chocolate things. Maybe not again as I will most probably just reuse the ramekins and make my own in future. But for convenience and a lack of fiddling about tonight it was worth it. Glass ramekins are about a quid each anyway, so £3.50 for two ready made deserts isn't too bad to be honest.

As for smoothies, just buy some fruit. Chuck it in the freezer overnight, then put it in a blender with some yoghurt, fromage frais, milk, honey etc.

Re the Tesco monopoly thing, a new express one just opened down the road from my flat. They've funded a lot of renovation work around the pavements and road as far as I know, and co-funded the movement of a clinic. I guess that's a good thing. They're in competition with a local large Spar two doors down. Not a bad thing I think. The Spar's offer tends to be more local things, and poorer quality lower prices items, especially veg. I'll still shop there for some stuff, but I'll also go to Tesco's for some stuff I can't get on the doorstep, like the morning baked goods and better choice and quality veg.

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Innocent is a stupid style over substance bubble business whose number will be up with the contraction in discretionary spending. Same for those over-price GU deserts as well.

Aye, I think the smoothie itself is a over consumerist bubble item. It's so concentrated that a glass too many and you have the runs. Whats wrong with fruit juice?

The recession equivalent will be a getting the fruit from the reduced shelf an hour before closing, to bung in your blender you got from the boot sale or woolworths bankruptcy sale.

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If what you say about Tesco ripping off Innocent’s design AND recipe ideas is true, then that sounds like a lifeline to Innocent. ~ With a copyright infringement case to follow shortly.

Innocent smoothies have been down from £3 to £2 in my local Sainsburys for the last month or so. ~ A sign they are in trouble perhaps.

The 'salad days' are probably over for Innocent! ;)

Speaking from someone who has been drinking Innocent Smothies for over two years. You can always find them at £2 per carton in one of the main supermarkets.

And just for your infor Innocent Smothies are owned by Cadbury's. I was surprised when i found this out.

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And why would the Co-op deliberately do that d'you think?

p

Simple............ To make more money!

They saw the increase in turnover of their food, saw that the competition had disappeared and thought if we can source cheaper products to sell at the same price we will make more money from X amount turnover.

Unfortunately they have poor products to sell now. So turnover is down and the products will be removed.

With a retailer it's all about turnover and profit.

With a producer it's about turnover, profit and quality.

If I only make pasties and they taste like sh1t then I go out of business. If I sell loads of different things, who cares if my pasties don't sell because they taste awfull, I will just replace them with another product. Tv's or something. ;)

Have you never bought something in a supermarket that you just love and then have them 'new improved receipe' it, and you don't like it anymore, never?

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So because YOU can't afford their smoothies, I'm not allowed to drink them? Good logic. Sure they were overpriced when they came out selling at £3/ carton but they had to pay their marketing/ startup costs somehow and were pioneering a new high quality manufactured juice as nothing of their quality was available before.

Then a few competitors joined the market and priced dropped to a more reasonable ~ £2 per carton. That was a healthy market, now Tesco come along and destroy it.

Your logic not mine you fool.

I have zero sympathy for companies that produce and sell things at a huge price and rip off the consumer. "High quality manufactured juice"?

It ain't rocket science to throw fruit in a vat and blend it!

If it was not viable to sell it any cheaper then this business should be avoided altogether. I have ZERO sympathy for rip-off merchants, regardless of their own chosen business model.

And to say it is funding start up costs and marketing is BS. They were blatantly priced as a "premium" product. I chose not to buy and mugs like you did.

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