05.03.10
Atlanta, GA-based Coca-Cola has become the majority shareholder of U.K.-based smoothie maker Innocent Drinks, which ran into tough economic times during the recession. Innocent Drinks was founded with just $509,000 of start-up capital in 1999. By 2007 it had grown from zero to profitable retail sales in excess of $210 million in the U.K., according to Nielsen data. However, as the recession took hold, it suffered a dramatic fall in sales, plunging 29% between 2008 and 2009, to $148 million.
The company’s highly individual and quirky marketing—from the wording of its product labels to leaflets and advertising—sets it apart from any of its competitors, according to industry expert Julian Mellentin. However, Mr. Mellentin argued that its marketing has become the brand’s only advantage, following the erosion of its other points of difference. As a result, allowing Coca-Cola to become the majority shareholder makes sense if Innocent is to turn around its fortunes, he said.
