At this stage, it is an undisputable fact that tastes in Europe are changing: the rise of a new generation of more health-conscious individuals - who are also aware of other issues such as sustainability and fair trade – has prompted a rethink in the ways consumers go about fulfilling their needs and suppliers meet them. Given the fact that it is a small country, it is perhaps unsurprising that Luxembourg can come to embrace such changes later than other countries. While the streets of Brussels, Paris and London are swamped with American-style coffee bars (not naming any names) and seemingly healthy alternatives to traditional fast food, -Luxembourg remains relatively untouched by the new wave of outlets designed to open up consumer choice, and retail-available alternatives to soft drinks and coffee (Delhaize, it should be pointed out, have been selling fresh juices for some time now).

A successful formula  for every market?

However, certain events are turning a trickle into an avalanche for customers here as changing tastes are now being matched by widespread availability. But is the change occurring because of the domestic market or is it being caused by external factors? In the food industry, Luxembourg is a market taker rather than a market maker. This country is simply too small to have indigenous produce across all sectors of the industry, and in any case it is limited by climate. Moreover, in the eyes of international food producers, it is not even a stand-alone market – how often do imported products use Luxembourgish on the label? So how does an emergent company broach the Grand Duchy? According to MM. Niels Paauw, communications and creative manager, and Erik Wind, commercial manager at -Innocent Benelux, “New markets are judged on their potential, that is number of inhabitants, average spending on food and fresh juice market maturity”. He continues, “In the case of -Luxembourg we looked at the larger picture, Benelux. As the three countries have limited size as stand alone, we have combined their potential and built a -Benelux organisation.”

While Innocent are just getting started in this country, their formula has proved successful elsewhere: the company has a 72% market share in the United Kingdom, earning each of its three founders an estimated fortune of 41 million pounds and rising (source: Sunday Times Rich List 2008). So, after a potential market is identified, how does Innocent get started?

“As we have a relatively young product and a new brand to most consumers we need to explain a lot of things”, say MM. Paauw and Wind. “Our efforts are threefold: by having people sample our drinks they get to know them, often get to like them, and learn what a smoothie is and the difference between it and a fruit juice. Customer care: we need to work with our customers to sell our drinks. We produce little information booklets to go with our drinks and come up with new and creative promotions to ensure people notice our smoothies on the shelves. And PR: We have a lot to talk about especially how we make smoothies, how that has led to success in the UK where we started, where our fruit comes from, and how we feel about building a sustainable business.”

Innocent have not set themselves specific targets for Luxembourg, but MM. Paauw and Wind are pleased with the company’s start here. “We have seen that the people from Luxembourg really love our smoothies. Sales are better than expected. The average rate of sale is among the highest in Europe. As the category is rather new, we expect that sales can even increase as more consumers will step into the fresh smoothie category.” The company is not going to have the market all to itself though. Already, competition is emerging in the form of other companies producing similar products: Delhaize as mentioned before and Chiquita are present in this market, and Irish Juice bar chain, Zumo, are, according to brand and marketing manager, Aliocha Torres, planning to launch in Luxembourg during 2008 (whether this will actually happen or not remains a moot point). So what sets Innocent apart? Delhaize will only sell their products in their own shops. Chiquita is already a large company very much associated with a different product, and Zumo will hardly be able to count the whole country as their catchment area, irrespective of whether the product is unique or not. Thus, Innocent occupy a privileged position. As MM.Paauw and Wind state, “our overall target is to build a sustainable business, both from an environmental and a financial point of view. Our overall vision is to become Europe’s favourite little smoothie company. That certainly counts for Luxembourg as well.” It seems to have started that way. Their success in other countries suggests it will continue.