Grove Fresh Ltd - Marketing Organic Juices
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
"Many companies have already stopped producing organic grapefruit juice, because there is not enough supply. The same thing is happening now with orange juice," 1
- Amarjit Sahota, Director, Organic Monitor2 in 2005.
"The British and French organic juice markets are to show the lowest growth rates. The organic juices market in these countries showed very high growth in the late 1990s and market expansion has slowed due to consumer demand stabilising. Retail penetration is reaching saturation in these countries with most food retailers offering organic juices." 3
- A research publication analyzing the future prospects for organic juices in the UK in 2002.
Grove Fresh Limited (GFL) was founded by John Taylor (Taylor) in 1994 to market chilled organic fruit and vegetable juices. Prior to his foray into the organic juices market, Taylor owned a successful bakery business, Freshbake Foods, which he sold to Borthwicks, a food and drink flavoring supplier for several million pounds. However, Borthwicks soon faced financial problems. Taylor re-purchased his business from Borthwicks for a token payment of £1. He brought the company back to profitability and subsequently sold it to Campbell Soup Company5 in 1988 for about £ 100 million.
After selling off his bakery business, Taylor was living a life of semi-retirement in Florida, in a house surrounded by orchards. Possibly inspired by his surroundings, he decided to enter the then nascent market for organically grown fruit juices.
1] "Organic marketing stunted by undersupply, says consultancy firm," www.nutraingredients-usa.com, December 19, 2005.
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