Successful Superfruit Strategy

How to build a superfruit business

Publication Date	June 2008
Publisher	New Nutrition Business
Product Type	Report
Pages	275
ISBN Number	not applicable
Product Code	NNB00027

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Summary

What are superfruit?

Superfruit are made not born; they are the product of a strategy, not produce you find growing on a tree. They are the result of the convergence of science and marketing in order to create a new, valueadded niche in the nutrition market. In particular it is beverages - in part because they are highly convenient - that define superfruits, not fresh fruit
Superfruit is now an established phenomenon. The idea of superfruit
There exists no satisfactory definition of a superfruit. Defining superfruit solely, or even primarily, on the basis of science, on high antioxidant content or novelty is false and misleading. The current commonlyused definitions of superfruit have wrongly caused many producers of established fruits - those that cannot boast of "novelty" or of an exceptionally high content of antioxidants - to despair of being able to take advantage of the superfruit trend. They do not need to despair Superfruit is a business strategy that incorporates science, production and supply, and marketing - particularly the latter - and hence we have developed the Six Elements of Superfruit Success, a checklist to reflect the impact that all of these elements have on strategy. The checklist provides distinct steps that anyone can follow to develop a strategy to turn even a well-known fruit into a superfruit
Superfruit are a huge opportunity to participate in a market that:

is growing at a rate of between 40%-100% per annum - by comparison the overall fruit market is static. For example, the leading pomegranate, mangosteen and goji brands in Europe and the US have grown from zero to combined sales of over $600 million (€401 million) in the space of five years
offers a large price premium over standard products (examples of 80%-900% premiums are common)
in many cases opens up new and unique markets
places a value on scientific support
suits the many niche suppliers of fruit around the world
creates profitable opportunities for makers of fruit beverages as well as marketers of dietary supplements - whose activities in turn help create new opportunities for fresh fruits that the fresh

A successful superfruit product will be a niche product, selling in very low volumes at very high values. Superfruit are niche because they are a type of functional food, and most functional foods are niche. This results from the massive fragmentation of consumers' beliefs about health and the proliferation of products offering rival health propositions. The juice and fresh produce aisles are gradually producing more and more niches This trend will continue and lead to the emergence of more superfruit at the expense of traditional fruits
Superfruit are premium priced - often super-premium. Superfruit need to be premium priced in order to capture more value not only to be more profitable but to cover the additional costs of science and marketing that make superfruit different from other fruits
A superfruit needs to be supported by a health benefit platform that is grounded in good science. Having a benefit platform that is relevant, well-researched, well-supported by science and well-communicated is more important than simply having a health claim. The choice of benefit for your superfruit is therefore an exercise in marrying up scientific knowledge and market insight. A checklist to select a benefit platform includes:

What benefit can science substantiate?
In the eyes of the consumer, is this benefit credible for this fruit?
What competing fruits are claiming the same benefit?
What competing products in other categories are claiming the same
benefit, how successful or unsuccessful have they been and why?
What are the consumer implications for the benefit platform?

The "high in antioxidants" message is one that is increasingly attractive to consumers and increasingly widely-understood However, although such a claim may be a good starting point for your first health communications, as more fruit talk about antioxidants it will cease to be a point of difference. Would-be superfruits should aim, if possible, to communicate more specific and less generalised health benefits - such as immunity or digestive health, both benefits which have already provided the basis of success in other categories
Superfruits should be targeted at technology and lifestyle consumers (the early adopters) Superfruits are not mass market - they neither appeal to the mass of consumers nor will the mass market be willing to pay premium prices

Content

Part I
Chapter 1 Fruit: The Future of Food and Health
- Key point summary
- A bright future for fruit
- Health and convenience - the future of fruit
Chapter 2 The Six Elements of Superfruit Success
- Key point summary
- The importance of the Six Elements
- Element 1: Sensory Appeal
- Element 2: Novelty
- Element 3: Convenience
- Element 4: Control of Supply
- Element 5: Health Benefit
- Element 6: Marketing
- Conclusion
Chapter 3 Superfruit Strategy
- Key point summary
- Marketing - the most important Element
- Markets
- Health benefit platforms vs health claims
- Applying the checklist
- The health claim
  - Benefit platforms matter more than hard health claims
  - A benefit that consumers can feel
- The target consumer
- Technology consumers
- Lifestyle consumers
- Mass-Market Consumers
Chapter 4 Beverage Strategy
- Key Point Summary
- Beverage Market: Key to Superfruit Success
- Brand Positioning
- Niche Marketing
  - New category creation
  - The benefit platform
  - The target consumer
- Packaging Strategy
- Pricing Strategy - Premium or Super-Premium?
- Marketing Communications
- Distribution
- Beverages and The Six Elements of Superfruit Success
Chapter 5 Fresh Fruit Strategy
- Key point summary
- Can fresh fruit be superfruit?
- Marketing strategy - key to success
- Brand positioning
- Packaging strategy
- Pricing strategy - premium or super-premium?
- Marketing communications
- Distribution
- Fresh fruit and the Six Elements of Superfruit Success
- Transforming Apples into Superfruit Using The Six Elements
- Conclusion
Chapter 6 Ingredient Strategy
- Key point summary
- Ingredients: an essential focus of superfruit strategy
- Fruit as an ingredient and the Six Elements of Superfruit Success
- Conclusion
Part II
- Introduction
- Case Study 1: Cranberries
- Case Study 2: Pomegranate
- Case Study 3: Blueberries
- Case Study 4: Bilberry
- Case Study 5: Mangosteen
- Case Study 6: Goji
- Case Study 7: Aa
- Case Study 8: Plumsmart
- Case Study 9: New Zealand Blackcurrants
- Case Study 10: Gold Kiwi
- Case Study 11: Watermelons
- Case Study 12: Cherries
List of Charts
- Chart 1: Vegetable and fruit consumption Japan, 2004
- Chart 2: General food consumption Japan, 2004
- Chart 3: Individual fresh fruit consumption per capita US, 1995-200518
- Chart 4: Pricing of Unilever's Knorr Vie shot with equivalent fresh fruit and vegetables

Chart 5: Pricing of Innocent Drinks' smoothie compared with equivalent fresh fruit

Chart 6: Comparison of total number of health-related studies (in vitro, animal and human) between everyday fruits, would-be superfruits and superfruits

Chart 7: The Nutritional Product Lifecycle
Chart 8: The Technology consumer
Chart 9: The Lifestyle consumer
Chart 10: The Mass-market consumer
Chart 11: Superfruits in the US - a low volume, high value business with high profit margins

Chart 12: Premium pricing and brand positioning
Chart 13: Price comparison of chilled juices in the UK98
Chart 14: Price comparison of pomegranate-containing beverages in the US99
Chart 15: Ocean Spray shelf-stable juices/juice drinks sales history 2003-2007
Chart 16: Fruit and Nutrition Summary
Chart 17: Fresh fruit market trends, UK
Chart 18: Packaging disguises premiums
Chart 19: Fruitees (fruit in a convenient form) vs apples (fruit in whole,fresh form)

Chart 20: The superior value-added that an ingredient strategy can create
Chart 21: Ocean Spray shelf-stable juice drink/blend sales history 2003-2007
Chart 22: Ocean Spray Craisins sales history 2002-2007173
Chart 23: Foods and beverages featuring cranberry launched in France 2004-2007

Chart 24: Japanese imports of fresh blueberries (1996-2005)
Chart 25: Japanese imports of frozen blueberries (1996-2005)
Chart 26: New food and beverage products using blueberries as an ingredient launched in Japan (1995-2005)

Chart 27: Comparison of retail prices for goji juices in the US (per litre)
Chart 28: Price comparison of premium juices available at US Albertsons supermarkets (per litre/32oz)

Chart 29: Comparative anthocyanin levels - blackcurrant varieties

List of Tables
- Table 1: Health-related studies for a range of fruit
- Table 2: Comparison of superfruits' and apples' ranking against the Six Elements of Superfruit Success
- Table 3: Superfruit and health benefit platforms
- Table 4: Examples of health-communications for superfruit products
- Table 5: Japanese ingredients market for fruit extracts used in supplements
- Table 6: Japanese companies are making superfruit a key focus of R&D