Juice business heats up by cooling off consumers

Although industry analysts agree the trend is booming, no one is sure how long the public's thirst for juice will continue.

The Associated Press

PLANO, Texas -- The smell of citrus and the bright colors inside the Zuka Juice shop are hard to overlook, but at this moment all eyes are focused on the blenders.

For the shop's customers, there is nothing like a cool smoothie to temper the unforgiving summer heat.

Keith, a United Parcel Service worker who declined to give his last name, navigated through the blistering heat all day until his uniform was soaked with sweat. He came to the smoothie shop in search of his favorite drink, something called the Orchard Oasis with wheat grass and carrot juice.

The smoothie was finally placed in Keith's work-worn hands. Then - - satisfaction. Keith has become a regular at Zuka, coming in every other day since it opened this spring.

"I like them because they're cool and they take away your hunger," he said between sips.

Maybe because they are chilled, maybe because they are seen as a healthy alternative to milkshakes, smoothies have caught on. Last year, retail juice and smoothie bars in America earned $540 million, according to Dan Titus, president of the Juice Gallery, a consulting and publishing firm. That is a 50 percent increase from the year before, and sales could triple this year, he said.

"The smoothie is basically a trend that is now being developed," Titus said.

Texas, home to pavement-melting summer temperatures, has played a large role in the spread of the smoothie, which started with health- conscious Californians in the 1960s.

One of the nation's largest smoothie retailers, Jamba Juice, opened in 1990 in California but had no Texas stores until it merged with Zuka Juice in February and instantly gained 15 shops in the state.

Smoothie King started in 1989 in Louisiana. Three years later, it ventured into Texas for the first time, and now Smoothie King has 56 locations in the Lone Star State.

This summer, Dallas-based 7-Eleven, the nation's largest convenience store chain, introduced its adult version of the Slurpee -- a frozen carbonated beverage -- the Frut Cooler (pronounced fruit) nationwide. 7-Eleven had enjoyed success with the Cafe Cooler, a frozen cappuccino drink introduced last year, and company officials expect similar results from the pseudo-smoothie.

"We're a beverage destination," said Sharon Powell, vice president of fresh foods at 7-Eleven. "We consider (the Frut Cooler) a huge success. After the Cafe Cooler, this was a natural extension."

Officials with Frullati Cafe and Bakery, a nationwide chain based in Dallas, said depending on the location, 40 percent to 60 percent of their sales are smoothies.

Smoothie shops attribute much of their sales figures to the public's perception that the concoction is a healthy alternative to sodas, iced teas and other cold beverages.

"Consumers are becoming more snack-oriented. People are looking for healthy alternatives," said Powell, who conceded it is questionable whether smoothies really are that healthy.

Smoothies typically are made of frozen or fresh fruit, fruit juice and ice. Most are low in fat, but they often contain plenty of calories from the natural sugar in the fruit. Some also contain frozen yogurt or sherbet, which raise the calorie count.

Most of the Zuka Juice's smoothies have about two grams of fat and 500 to 600 calories, depending on the type of drink and its size.

The 12-ounce 7-Eleven Frut Coolers have one gram of fat per serving. They come in two flavors, orange and strawberry creme, which contain 270 and 280 calories, respectively.

"I think our Frut Cooler has been well-received all over the country," Powell said. "Smoothies originally started out on the West Coast, but since then it still has been very successful. One of our best selling areas has been in the Northeast."

Some experts wonder about the smoothie's staying power.

Beverage Digest editor and publisher John Sicher noted that the smoothie's $540 million market is dwarfed by the $56 billion soft drink industry, and therefore its future is uncertain.

"Smoothies are a relatively new product, and American people like innovation," Sicher said. "Also, people like fruit-flavored beverages, but their market is very small. It's a tiny segment of the beverage industry. It's way too early to tell what will happen.

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