Coca-Cola looks to cold press juices, as Pepsi eliminates aspartame in favor of more natural ingredients.
The retail market for natural and organic food and beverages is set to grow by leaps and bounds, according to a new report by MarketResearch.com, and major suppliers are tapping into this new growth area.
The natural and organic food and beverages market is expected to climb at a compound annual growth rate (CAGR) of 10.1% between 2014 and 2019. This will bring the annual sales of natural and organic foods and beverages up to $86.7 billion in 2019.
In order to tap into this growing market, Coca-Cola Co. invested $90 million for a nearly 30% stake in Suja Juice LLC last week. Other investors include Goldman Sachs, who invested a 20% stake at $60 million, bringing the value of Suja Juice to $300 million.
The decision for Coca-Cola to venture into the small but fast-growing niche market of organic, cold-pressed juices is influenced by a growing consumer desire for healthier drink options and Coca-Cola’s need for product diversification. Suja Juice beverages include non-GMO ingredients and are created using high pressure instead of heat pasteurization to kill bacteria.
Coca-Cola has the option to purchase the entire company after three years. As more customers continue to scale back on soda purchases, revenue generated from healthier beverages will allow Coca-Cola to hold its place in the beverage market.
Other beverage leaders are seeking alternatives to less healthy drink options. Earlier this month, Pepsi announced its decision to eliminate aspartame from Diet Pepsi.
The report on the Natural and Organic Food and Beverage market is also available on www.profound.com, where subscribers are able to purchase the individual sections, chapters, tables, or charts of a report they need without having to pay for the pieces they don’t.