ORCHARD House Foods (OHF) is one of the largest manufacturers of freshly squeezed juices and smoothies in the UK.
It supplies high street retailers such as Asda, Tesco, Marks & Spencer, Safeway and Waitrose, besides producing a small amount of own-brand goods.
The company produces an annual report on the market, which noted the significant growth of last year and expected more of the same in 2004. The freshly squeezed juice market grew by five per cent during 2003 to £96.4 million, with new packaging and an exceptional summer boosting sales considerably.
Although freshly squeezed orange juice remains popular, retailers are adding more exotic ingredients to add a twist. Flavours such as orange and raspberry, orange and lychee and seasonal variations are proving a hit.
OHF's marketing manager Fiona Love believes growing consumer health concerns have played a role in the sector’s growth. She says: "The juice sector fits in with the mega-trends of today of health, convenience and indulgence."
The report revealed that M&S remains the dominant force in the sector, and the retailer grew by a further eight per cent in 2003 thanks to a product re-launch and expansion. Tesco also put in a strong performance due to store location. Surprise performances were given by Morrisons and Somerfield, which strengthened their positions in the market by growing their value by 40 per cent and 20 per cent respectively.
Health-conscious consumers also began to question content of juices, with quality and pureness emerging as priorities proving a good market fit with freshly squeezed juices.
The new Food Standards Agency guidelines for the labeling of fruit juices come into force in July 2004. The guidelines aim to make it easier to distinguish between freshly squeezed, not from concentrate and from concentrate juices; permit the addition of vitamins and minerals to juices; and allow the addition of water-extracted juice in fruit juice concentrate.
However, there are still concerns that FSA guidelines do not go far enough. It remains up to individual retailers as to how they make their product labels, as long as they stick to the legal guidelines set down by the FSA.
Equally, the smoothie industry has its own problems. Love explains: "For OHF the smoothie industry is another important point for us. There currently isn't a definition of a smoothie and while this remains the case the market is left wide open for any juice-based product to call itself a smoothie and therefore devalue and confuse the market."
OHF gives it backing to the smoothie market and for the third year running is supporting National Smoothie Week which began on June 21.
The company established the week to raise awareness of smoothies as being an easy way to consume fruit and a healthy alternative to fizzy drinks, cordials, concentrates and other soft drinks on the market.
OHF is also embarking on an extensive pr and marketing campaign and will be using the week as a platform to talk about the extensive health benefits of fresh juice and smoothies.
The week also coincides with the latest government figures out regarding obesity in the UK and the emphasis on getting people to eat 5-a-day.
Love says: "Our products provide a healthy and convenient way of getting your daily requirement of fresh fruit. National Smoothie Week aims to promote the benefits of smoothies over other drinks that are crammed full of e-numbers, sugar and preservatives. Our smoothies are made with fresh ingredients so they are crammed full of goodness, and do not contain additives.”
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