Old Orchard sees growth as Chiquita smoothies arrive in stores
Posted by Shandra Martinez | The Grand Rapids Press April 03, 2009 07:01AM
SPARTA -- You will have to look closely to find Old Orchard Brand's name on its newest product: Chiquita Frozen Fruit Smoothie concentrate.
But the Sparta-based fruit juice company is counting on a partnership with Chiquita Brands International Inc., the world's biggest seller of bananas, to ultimately grow its own brand.
"We are not only launching a new product, we are creating a new segment within the frozen category," said Kevin Miller, vice president of marketing for Old Orchard Brand.
Miller said the product already is benefiting from a Chiquita "halo effect" that has helped land it in more than 1,500 stores this week -- including local Meijer, Family Fare and D&W Fresh Market locations. Miller expects the store count to surpass 4,000 by summer, a fast start for a new product.
The frozen smoothie will be cross-promoted between the produce and freezer sections. One-quarter of the advertising budget is devoted to a social network campaign that includes samples for influential bloggers, a Facebook page, Twittering deals, a "viral" coupon and an interactive Web site.
"It's probably the most comprehensive produce launch we've had," Miller said.
All flavors carry the Chiquita label, although only two are made with banana puree supplied by the company.
Chiquita's 60-year-old brand-awareness goes beyond bananas, said Bryan Brown, Chiquita's director of corporate communications. "The Chiquita names carries a strong equity and awareness in the fresh fruit category as well."
Chiquita shipped 2.4 billion pounds of bananas and had sales of $3.6 billion in 2008. While bananas make up the bulk of Chiquita's business, the company continues to diversify its product line. It acquired salad producer Fresh Express in 2005.
Under the licensing deal, Old Orchard handles production, marketing and distribution while paying a percentage to Chiquita on sales.
SMOOTHIE FLAVORS
Newest locally produced fruit product has a tropical twist of flavors:
• Strawberry banana
• Banana colada
• Peach mango
• Mixed berry
"This unique licensing agreement with Old Orchard is very consistent with our innovation plans for value-added products," Brown said. The Cincinnati-based company's pool of licensed products has or does include ice cream, cookies and even greeting cards.
But Chiquita played a key role in the process, reviewing and approving the flavors, marketing and Old Orchard's Sparta production facility.
The 12-ounce frozen smoothie can sells for $2.69, which after adding water and ice, yields 24 ounces at a cost of about a $1 per 8-ounce serving.
