The Interview - Johnsons Juices steps into the limelight

A key part of Daniels Chilled Foods, Johnsons Juices is the Number One Freshly Squeezed Juice brand in the UK. But in terms of consumer awareness, up to now it has been somewhat overshadowed by its better-known sister business New Covent Garden Food Company. That's about to change in 2006 as Johnsons Juices takes a higher profile with some exciting brand activity. Daniel Gough, Brand Manager for Johnsons Juices, spoke to The Grocery Trader.

The Grocery Trader - I've not previously heard very much about Johnsons Juices. When was it set up, and what is the proposition for retailers?

Johnsons Juices was set up in 1984. It started as a one-man operation, with the founder squeezing orange juice himself, initially supplying local shops, and as the business grew it moved into cafÈs and foodservice then multiple retail. Daniels took it over in 1996, and today itπs the number one freshly squeezed juice brand.

Then as now, our overall proposition is straightforward and appealing - 'the closest thing to home squeezed juice.' Virtually everyone drinks juice at home but few people squeeze it themselves. Johnsons is the nearest experience to pressing your own fruit juice.

GT - Daniel, what's your role at Daniels Chilled Foods and how long have you been there?
My role is to manage the Johnsons Juice brand. Iπve been here since August, having previously been with Nestlé Rowntree in York working on gifting confectionery, on both brand and category management.

GT - Daniels Chilled Foods is best known for its New Covent Garden Foods brand. How important is Johnsons Juices to the company, and how does it fit in?
Johnsons has a strong reputation in foodservice, and we are committed to building that into a strong consumer brand. DCF has three strategic areas - soups, juice and fruit. Soup is the major area but Juice and Fruit are becoming increasingly important. Weπve invested over £7 million in drinks and fruit in the last 18 months, mainly on production facilities.

GT - What is the annual retail sales value of the UKπs freshly squeezed juice market, and what proportion of this does Johnsons own? Is this share growing?
IRI reports freshly squeezed juice in retail as a £30 million category, of which 90% is own label. Johnsons' original heartland was foodservice, which as a juice market is comparable in size to retail, and we continue to serve cafés, hotels, the on-trade and on the go outlets in the transport and travel sector. We also supply both large retail and foodservice outlets.

GT - How much growth has this category seen in the past couple of years? Whatπs driving it?
Freshly squeezed juice is a small, premium area of the overall juice market. In 2005 it showed rapid growth. People have been buying freshly squeezed juice with their sandwiches as part of their lunch and retailers capitalised on this, introducing own-label freshly squeezed offerings. More and more consumers are now buying Freshly Squeezed, both for 'on-the-go' and home consumption.

GT - How fast is Johnsons growing as a result?
We're growing in both retail and foodservice, and are up 8% in total ex-factory sales year on year.

GT - What makes Johnsons Juice different from other fresh juices?
The difference is in the production process. With 'Not From Concentrate,' oranges are sourced and squeezed in the country of origin, then frozen. The juice is transported to where it's to be sold, defrosted, bottled and pasteurised, then chilled, packed and sent to the customer.

By contrast, Freshly Squeezed juice is made by 'following the sun' around the world to source the best oranges in season from different countries. We blend different Oranges to achieve a consistent taste. The Oranges are brought to the UK as whole fruit, then squeezed, bottled, chilled and shipped to the customer.

GT - What difference does juice being 'Freshly Squeezed' mean for the consumer?
Freshly Squeezed gives improved freshness - it's never been frozen. Second, our Freshly Squeezed Juice is either unpasteurised or gently pasteurised, depending on the customerπs supply chain requirements. Either way the Vitamin C content is higher than åNFCπ products.

GT - What are these products' shelf life?
Fresh Johnsons Juice keeps for five days after leaving the depot, and pasteurised keeps for 14 days from depot.

GT - What flavours and sizes is it available in? What are the recommended retail prices?
Orange comes in 250ml, 500ml, 1 litre and 2.27 litres, the latter for foodservice and in-store catering. Orange & Raspberry, Apple, Still Lemonade and Ruby Grapefruit come in 250ml and 2.27 litres. Retail RRPs are 99p for 250ml, £1.35 for 500ml and £1.99 for 1 litre. This offers an excellent profit on return of around 65%.

GT - Which UK retail outlets is Johnsons stocked in? How much of Johnsons sales go through the multiple grocery sector?
Our total juice ex-factory sales - retail and foodservice, branded and own-label, are £14.7 million. Retail currently accounts for 30% of our juice sales which includes listings in Budgens Nisa and also Tesco cafés.

GT - Is your own label business growing?
Yes, it's continuing to grow really well. In the UK grocery market, own-label plays a leading role, and we have very good relationships with our major customers in both retail and foodservice.

GT - Where should these products be merchandised in store?
250 ml is an impulse/'food to go' format, ideally sited in the lunch section with sandwiches or sold through in-store cafés. Larger packs belong in the take-home juices chiller cabinets.

GT - Where is Johnsons Juice made?
All our juices are squeezed and packed in Headcorn, Kent. We bring the fruit whole into the UK through ports in Kent, hence our location there.

GT - What production capacity do you have there, and is there scope for expansion?
The factory was newly opened in March 2005 so we currently have plenty of capacity, which weπre looking forward to filling.

GT - What have been the most recent developments for the brand?
We changed our whole output over to clear PET bottles in January. The more premium format gives improved visual appeal for the consumer, and new caps offer improved tamper-evidence for the customer.

GT - How successful has that move been?
It's been a major success. Since the switch weπve had double-digit growth over the equivalent period last year.

GT - What other developments are planned for Johnsons this year?
Weπre following the bottle change with new labels, which will highlight the juicesπ freshness and the message that we åfollow the sunπ to source the best fruit all year round. Theyπll be available nationwide from early May.

GT - are you planning any new products?
The Johnsons brandπs focus this year is on our core products, but youπre right, weπre committed to product innovation too. Weπre trialling Johnsons Real Smoothie, a carton containing fresh-cut fruit and freshly squeezed juices thatπs blended and filled at the point of purchase. Itπs currently on trial in Upper Crust outlets at railway stations. Weπre also talking to retail customers about bringing it into their in-store restaurants.

GT - What marketing activity do you have planned for this year for the Johnsons Juices brand?
As mentioned, weπre investing in the new packaging and labels. 2006 is our first year of consumer support. Weπre going to be on national commercial radio throughout August, juiceπs traditional sales peak, backed by 'guerilla' sampling at major events round the UK, and wider PR.

GT - Is there a dedicated website for Johnsons Juices?
Yes, there is - www.johnsonsjuices. co.uk.

GT - Do you work with retailers to help them grow their sales of freshly squeezed juices?
We do extensive category management work with our own label customers as Freshly Squeezed juice is a high-margin area for them. we also offer extensive point of sale and promotional materials.

GT - Finally, where do you see the Johnsons Juice brand in three years' time?
We're already number one in freshly squeezed, so the aim has to be to get more people buying into the category. For the Johnsons brand that means building on our foodservice strength and expanding our branded retail strength. If Johnsons can reach 20% of the retail freshly squeezed juice market by 2009 that would be a major achievement, but it's well within the realms of possibility.