Where is innocent drinks sold
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With base rate expected to rise, will saving deals begin paying higher interest? Not so Innocent now Share or comment on this article: Innocent sells out to Coca-Cola as smoothie maker's founders cash in stakes e-mail. Toggle Search. Richard Reed, one of three Cambridge University graduates who founded Innocent at the age of 26 in , denied they were selling out.
We decided that we would be able to do a better job of that with Coke. Reed said the relationship with Coke had been "beautiful" because the founders had been able to run the company but take advantage of Coke's marketing and buying power.
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Follow Us Twitter Facebook. For e. COGS are obviously the biggest source of costs for a company and hence innocent might have to look at sourcing locally at the expense of taste, given price sensitivity in this market is high. In the intervening period however, they should draw up plans to either increase inventory or hedge with developing new supply sources.
Ron, thank you for an interesting article. I have been a fan of Innocent since it came on the shelves in the Czech Republic so it is extremely interesting to learn more about their operations. You suggest experimenting with new product formulations using fruits sourced within the UK — there are two questions that come to my mind with respect to this potential mitigation factor.
However, if you are attempting to source only from UK, you will have to compromise your commitment or seriously reduce the variety of fruits that you are able to use in your products. Do you believe that Innocent sustainability measures had any impact on brand perception and hence its success over the past years? Secondly, you mentioned that the UK fruit has a different taste profile and is not suited for smoothie making. Furthermore, if Innocent was to remain committed to its sustainability strategy and only source fruits that are best suited to be grown in the UK, will their product be sufficiently differentiated from the competition, both in taste and variety?
This goes beyond the fact that half its fruit is sourced from Europe, and extends to the existence of multilateral trade agreements between the EU and other markets where it buys tropical fruit e. A central premise of pro-Brexit advocates was that disentanglement from the EU would give the UK much greater freedom for the UK to negotiate trade agreements on its own terms — a premise which significantly belies the practical difficulties of creating a new trade regime from scratch.
In any event, distortions stemming from the transition from EU multilateral trade agreements to individual trade agreements between the UK and the areas where Innocent sources raw inputs including, but not limited to, the EU will significantly alter the economics of the supply chain.
If the long-term contracts you describe Innocent using to source their raw materials have no contingencies for such idiosyncratic events, I fear that the company may find itself in a dire predicament choosing between raising prices, reducing quality — or ceasing to operate altogether.
A great way to think about the supply chains that we all take for granted in our consumer products these days. Innocent even appears to be using similar product packaging to Simply Orange for their line of fruit juices. Hedging can be easy to set up, but it must be a zero-sum game by definition.
In the end I suspect that lobbying politicians will be ineffective. I would push for an aggressive move in the direction of the expansion into the European markets and Australia, and expatriate themselves from the UK.
Given the brand appeal, international supply chain and growth in continental Europe, it seems a natural place for Innocent to move to. Thanks for a great read! I think it would be extremely difficult to measure with any precision how the intervening period of uncertainty will affect Innocent.
That being said, some consequences of the Brexit decision could be Innocent delaying capital investment in the UK until it has the final numbers on what the world will look like after Brexit.
This would be a clear negative for the company as they look to scale up their operations and increase market share across Europe. Many other companies in the UK will likely be facing the same uncertainty and may decide to delay any long-term decision making.
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