New Market Selection and Entry Strategy

1. Developed by: Veronica Gavrilova | M: 0.7713.7732.44 | E: veronica.gavrilova@gmail.com
INNOCENT DRINKS: INTERNATIONAL EXPANSION STRATEGY
MARKET SELECTION (5 POTENTIAL MARKETS), ENTRY MODE & MARKETING PLAN ADAPTATION
TABLE OF CONTENTS
1. Market Selection Process and Market Choice Justification 1
1. A. Markets’ Preliminary Screening 6
1. B. Markets’ Detailed Comparison 8
2. Entry Mode Considerations 9
3. Assessment of Macroenvironmental Factors’ Impact and Innocent Drinks’ Market Viability 9
4. Segmentation, Multisegment Targeting, Positioning 14
5. Degree of Standardization/Adaptation of the Marketing Mix 14
TABLES
Table 1. Company International Expansion Experience and Internal Strategic Resources and Strengths Analysis 3
Table 2. Overseas Markets’ Comparison 6
Table 3. European Markets’ Comparison 6
Table 4. Markets’ Comparison Additional Considerations – Most Problematic Factors for Doing Business 7
Table 5. Markets’ Detailed Comparison 8
Table 6. Innocent Drinks’ PESTEL Analysis with regards to the EU and the Italian Market 10
Table 7. Innocent Drinks’ SWOT Analysis within the Italian Market 12
Table 8. Marketing Mix - List of Suggestions for Adaptation 15
APPENDICES
Appendix 1. Innocent Drinks’ Negotiation of Licensing Agreement for Market Expansion in Australia Case 18
Appendix 2. Innocent Drinks’ Outsourced Supply Chain Overview 19
Appendix 3. REFRESCO Global Coverage - Locations by Continent and Country 20
Appendix 4. Hofstede Country Comparison Tool - UK, Italy, UAE Scores on 6 Cultural Dimensions 20
Appendix 5. COFACE Country Risk Assessment Map Q3 2018 21
Appendix 6. NH Juices Sales by Category: Value 2012-2017 22
Appendix 7. NH Juices Sales by Category: % Value Growth 2012-2017, % Current Value Growth 22
Appendix 8. Forecast Sales of NH Juices by Category: Value 2017-2022, EUR Million 22
Appendix 9. Forecast Sales of NH Juices by Category: % Value Growth 2017-2022, % Constant Value Growth 22
Appendix 10. Italian Consumer Product Preferences depending on the Brand’s Origin 23
Appendix 11. Italy’s Leading Position in Purchase and Consumption of Fruits and Vegetables in Europe 24
Appendix 12. The Impact of Ethics and Sustainability Considerations on Italian Consumers Purchases 25
REFERENCES 26

2. 1
1. MARKET SELECTION PROCESS AND MARKET CHOICE JUSTIFICATION
Among the main factors generally considered when looking into options for international expansion are the growth
and profitability potential of the different countries, their competitive landscape, the challenges in setting up business
operations, and the company’s own strategic resources and strengths that could be leveraged to ensure its viability and
success. Other key points are the fit of these potential new markets within the company’s already existing portfolio of
countries, their alignment with its overall business strategy direction, a clear understanding of the level of investments
and adaptation required as well as the associated risks tied to these. Failing to accurately assess all these factors poses
the risk of the company becoming a hostage of its own ambition with the new market turning not only into a point of
distraction, financial drain and weakness for the company but substantially compromising its ability to compete within
already established markets (where it has been performing successfully) due to diverted resources, financial strain, and
loss of focus.
Most of the factors mentioned above have been examined within this report by first analyzing Innocent’s international
expansion experience (including the unrealized attempts of going beyond the EU), its internal strategic resources,
strengths, and the undertaken business optimization initiatives, and its existing networks of relationships and
partnerships (see Table 1.)
Next, for better clarity and due to innocent’s current focus on the EU and the potential new markets’ geographical and
cultural distance from the UK, the five countries (Chile, India, Greece, UAE, Italy) were divided into two groups -
“overseas markets” and “European markets” – allowing to better evaluate and determine the best market option from
each set against a number of general screening variables (see Table 2. and Table 3). Additional list of “the most
problematic factors for doing business in each country” was also taken into consideration (see Table 4).
The two selected countries from the first screening stage, UAE and Italy, were then compared in more detail (see Table
5) with each criterion weighted on a 5-point scale. Italy showed both better overall values during the first screening
stage and substantially higher scores during the second detailed comparison stage surpassing UAE in terms of market
size, market portfolio congruity, expansion sequence optimization, ability to leverage existing economies of scale
(production and marketing) and existing networks, geographical and cultural proximity, anticipated market risks, and
overall level of control exercised by the company.
The fact that Europe ranked as the third highest region in terms of consumption of fruit juice per head (AIJN European
Fruit Juice Association, 2018, p. 6) and together with North America and Asia Pacific accounted for nearly 82% of global
fruit juice and nectars value in 2017 combined with the projection of Italy becoming the third largest consumer market
in the EU by 2030 (5) and the demonstrated stable sales growth of premium natural 100% natural and chilled juices

3. 2
segments (precisely the categories Innocent is competing in) in contrast with the overall sales decline of juice category
as a whole implies opportunity for significant sales volume in the future.
The choice of Italy can be further justified by Innocent’s long-term business strategy and unwavering “strategic intent”
(Hamel & Prahalad, 2005) on building its position as “Europe’s favourite juice brand” explicitly repeated by the company
top management (Burn-Callander, 2015), (Proxima Group, 2011), (Fetzer, 2015), (Bouckley, 2013) and reiterated in its
annual financial reports (Innocent Ltd. Financial Statements, 2000-2018), as well as supported by the brand’s reported
sales growth of 22% in 2017 and becoming the fastest growing soft drink (Foodservice Footprint, 2018) and No. 1 chilled
juice brand in Western Europe (Moye, 2018).
Some of the major reasons behind this success have been the company firmly focusing on aggregation of competitive
capabilities and resources, and avoiding their dispersion by not expanding into geographic markets other than Europe
even when presented with such opportunities (Burn-Callander, 2015), (Bouckley, 2013) or referring to failed deals as
“a blessing as it would have been too big a step…and may have killed the business completely” (Perrott , 2016). Other
key factors are the company’s commitment to developing competitive “layers of advantage” (Hamel & Prahalad, 2005),
standardization of its marketing model and a more didactic approach to the strategy execution (Balon, 2014) all of
which are easier to implement within Europe rather than overseas.
This focus on “trimming ambitions to match resources”, “searching only for advantages that can be sustained”, and
“investing heavily in infrastructure on all levels” (Hamel & Prahalad, 2005) is evident in Innocent pursuing not only
market growth but also better logistics efficiency, and marketing and operations scalability in Europe - strategic
objectives that allow for quick and cost-effective replication of some of the business aspects and increased revenue
generation at reduced costs. The company has been investing in new manufacturing and bottling facilities in Europe
(Burn-Callander, 2015), (Perrott , 2016), launched HR Europe-oriented programme (HRD Connect, 2017), and appointed
advertising agency responsible for its Pan-European brand communications (More About Advertising, 2016).
Despite Coca-Cola ownership and occasional use of synergies, Innocent is an autonomous business and is self-funding
its market expansion (Burn-Callander, 2015). Consolidating its position in Europe and leveraging the advantages of a
largely regiocentric orientation is a question of pragmatic ambitions and well-calculated risks and not a strategic myopia,
especially in view of the uncertainties dictated by Brexit. Securing leadership in Europe is also in line with its parent’s
company long-term strategic objective to become number one in the juice category world-wide with Coca-Cola’s juice
brands ranking high in the USA, South America and Asia markets but trailing behind in Europe (Proxima Group, 2011).

4. 3
Table 1.
COMPANY INTERNATIONAL EXPANSION EXPERIENCE AND INTERNAL STRATEGIC RESOURCES AND STRENGHTS ANALYSIS
DEGREE OF
INTERNALIZATION AND
OVERSEAS EXPERIENCE
▪ historically followed Uppsala internalization model approach (Germain & Reed, 2009) with
successful gradual market expansion across 14 European countries.
▪ distinct preference for direct wholly owned sales and distribution subsidiaries (6 in total)
(Innocent Ltd. Financial Statements, 2000-2018) with standardized marketing model and
didactic strategic approach with high level of control and monitoring over business
interests’ alignment, and decision and processes coordination (Balon, 2014).
▪ geocentric approach to product adaptation and marketing mix decisions promoting
knowledge and insights sharing and improved performance.
▪ cost-efficiency achieved by leveraging economies of scale though product selection for the
targeted market from the existing comprehensive standardized product portfolio and
minor to moderate level of adaptation to the marketing mix on a country-by-country
basis.
▪ maintains strict control over brand image and assets presentation.
▪ firm regional focus with the primary goal to establish and solidify its position as “Europe’s
favourite juice brand” – a statement explicitly and continuously emphasized by the
company’s C-level management (Burn-Callander, 2015), (Proxima Group, 2011),(Fetzer,
2015) and reiterated in company annual financial reports (Innocent Ltd. Financial
Statements, 2000-2018).
▪ securing leadership in Europe is aligned with the parent company’s global long-term
strategic objective to become number one in the juice category world-wide with Coca-
Cola’s juice brands ranking high in the USA, South America and Asia markets but trailing
behind in Europe (Proxima Group, 2011).
▪ launched Europe-oriented HR programme (HRD Connect, 2017)
▪ in 2016 for the first time appointed an advertising agency specifically tasked with
developing Pan-European brand communications (More About Advertising, 2016).
▪ different level of product life-cycle, market share and penetration across the different
European markets resulting in improved risk diversification.
▪ 2 attempts of expanding beyond Europe:
▪ USA: despite its successful partnership with Starbucks in the UK and in Europe (Hurley,
2011), the unsigned deal with the coffee chain to enter the US market in 2013 was
defined as “a blessing as it would have been too big a step…and may have killed the
business completely.” (Balon, 2014).
- Australia: the potential licensee copied the concept and quickly launched a
competing brand Nudie instead (Innocent Drinks Blog, 2006), (see Appendix 1).
▪ risks and costs incurred by successful past market expansion:
- 2008: threat of liquidation (Perrott , 2016), (Innocent Ltd. Financial Statement - 28
December 2008, 2008) after nearly a decade of remarkable performance (Smale, 2018),
(Featherstone, 2017). The drastic slump in profitability was due to the global financial
crisis, consumer downturn, the collapse of the GBP’s exchange rate leading to the fruit
prices reaching a record high (Proxima Group, 2011), (Graham, 2011), the entrance of
PepsiCo-owned Tropicana into smoothies segment (Sibun, 2008), (Graham, 2011),
(Brown & Grayson, 2008) and Innocent’s investment in foreign markets. To avoid
bankruptcy and fund the European market expansion with its structures already in

5. 4
place but no capital to support them (Hickman, 2009), (Moules, 2009), the founders
had to once again go through a fund-raising process and sell a 18% stake for £30 million
to Coca-Cola in 2009 (Perrott , 2016), (Carmichael, 2009).
- 2013: one year after Coca-Cola’s acquisition of the company(Neate, 2013), Innocent’s
profit crashed by 97% from £27.5 million in 2012 to £886,000 in 2013 (Hurley, 2014) -
a result of a drop in domestic market revenues and hefty investments poured into the
European expansion entailing more than a 2-fold increase in distribution and marketing
costs that reached £44 million. The investment into 14 countries in Europe, paid off
with a 30% sales growth in the region the same year (Hurley, 2014) and reached £100
million in 2015 accounting for almost half of the business (Burn-Callander, 2015).
OVERVIEW SIZE AND
AMOUNT OF RESOURCES
▪ despite Coca-Cola ownership and occasional, minor use of synergies, Innocent remains an
autonomous business with a distinctive business model and self-funds its market
expansion (Burn-Callander, 2015).
▪ 2017: total sales turnover £325 million, more than half coming from Europe – £165
million. Total profits £15 million (Innocent Ltd. Financial Statements, 2000-2018).
▪ HR capital: 448 employees (2017) - lean organizational structure with small regional
subsidiary teams.
▪ investments in new manufacturing and bottling facilities in Europe (Burn-Callander, 2015)
largely due to Brexit and the increased economic uncertainty as well as the brand’s focus
on European expansion.
▪ purchase of commodities in USD or EUR puts pressure on operating margins due to
fluctuations in currency exchange rates and raw material prices. This is offset through
strategic cost efficiency initiatives – imperative to business survival and competitiveness.
▪ 6 direct wholly-owned sales and distribution subsidiaries with Innocent Deutschland
GmbH (Germany) owned by Innocent Alps GmbH (Austria) (Innocent Ltd. Financial
Statements, 2000-2018). In view of the Brexit subsidiaries will be faced with less
restrictions since they have legal identity incorporated in the EU country member
(GOV.UK, 2018). Additional benefits include financial, legal, and operational advantages
(see Entry Mode Considerations section) and ability to use transfer pricing for profit
maximizing and lower tax purposes.
▪ transportation and sourcing restrictions due to commitment to sustainability could be
compensated by the award of B Corp certification (2018) and access to bench-marking
operational and cost-saving practices through the B Corp community, strengthened brand
reputation and consumer trust (Stammer, 2016), and protection from
shareholders/investors’ pressure (Certified B Corporation, 2018), (Kohn, 2015).
▪ RALF (Resilient, Agile, Lean, Flexible) approach (The Manufacturer, 2011) used as a
business guiding principle (18th Cambridge International Manufacturing Symposium,
2014, pp. 71-103) with end-to-end supply chain (supply management, production, route
to market) entirely outsourced but under strict control (18th Cambridge International
Manufacturing Symposium, 2014, p. 77) and R&D and services functions kept in-house
(see Appendix 2).
▪ supply chain and S&OP review and optimization were key to the turn-around, cost-cutting,
and business acceleration strategy. 2017: winner of Supply Chain Excellence Award
(Logistics Manager, 2017) and company representatives being frequent speakers at Supply
Chain Conferences.
▪ demand and production planning and forecasts range is 18-27 months (dictated by small
margins, short shelf life, volatile market, fruit orders required to be placed 18 months in

6. 5
advance) which requires new product development and launches and sales, SKU
modifications to be accounted for and planned significantly in advance (Innovation
Enterprise Channels, 2013).
EXISTING NETWORKS OF
RELATIONSHIPS
▪ more than half of the fruit supplies comes from continental Europe (no fruit sourced in
the UK) (Innocent Drinks Sustainability FAQ, s.d.).
▪ planned shift of production facilities to continental Europe with the goal to operate as a
European group (18th Cambridge International Manufacturing Symposium, 2014, p. 101)
and investments in new manufacturing and bottling facilities in Europe (Burn-Callander,
2015), (Perrott , 2016) to support geographic expansion.
▪ strategic decision to have no more than 2 packing sites per format (in accordance with
RALF principle) (18th Cambridge International Manufacturing Symposium, 2014, p. 102)
restricts the options for expanding overseas.
▪ 6 wholly owned sales and distribution subsidiaries in Europe.
▪ Refresco (Refresco , 2018) – a key long-term (production, bottling, warehousing, and
logistics) partner operates only in 2 geographical regions – North America (28 locations)
and Europe (31 locations - 6 in the UK and 25 in continental Europe). Its pan-European
manufacturing network ensures that production locations are near warehouses and
distribution centers (see Appendix 3). Its acquisition of Cott (Refresco Mergers and
Acquisitions, 2018) will significantly expand its network platform (sales and distribution
facilities, fleets, wholesalers and distributors) within the same 2 geographical regions.
▪ previous partnerships with Starbucks in Europe may potentially be substituted with Costa
Coffee since the chain’s acquisition by Innocent’s parent company Coca Cola (diversifying
its portfolio away from the sugary and carbonated drinks) and leveraging the world’s
second biggest coffee chain (in terms of outlets) (Ahmed, et al., 2018) (Warner, 2018)
(Team, 2018) existing distribution network.

7. 6
1. A. MARKETS PRELIMINARY SCREENING
Table 2. OVERSEAS MARKETS’ COMPARISON
SCREENING VARIABLES CHILE INDIA UAE
Population (1) 18,2 million 1 299,8 billion 9,9 million
Median Age (2018) (4) 34.4 27.9 30.3
Education Rate (2016) (5) - - -
- Net Enrollment, Secondary 87 62 (2013) 87
- Gross Enrollment, Tertiary 90 27 37
Unemployment Rate (3) 6.7 (2017) N/A 1.7 (2017)
GDP per capita in USD (1) 13,576 1,742 35,384
GDP Growth % (f 2018) (1) 2.7 7.3 3.8
Country Risk Assessment (1) A3 B A4
Business Risk Assessment (1) A3 B A2
Inflation (yearly average %) (1) 2.4 (forecast 2018) 5.3 (forecast 2018) 3.7 (forecast 2018)
Inflation (annual % change) (2) 71/137 (3.8/7) 93/137 (4.9/7) 1/137 (1.8/7)
Geographical Distance from UK distant distant medium
Infrastructure Quality Rank (2) 41/137 (4.8/7) 66/137 (4.2/7) 5/137 (6.3/7)
Market Size Rank (Total) (2) 44/137 (4.5/7) 3/137 (6.4/7) 29/137 (4.9/7)
Domestic Market Size Rank (2) 40/137 (4.4/7) 3/137 (6.4/7) 34/137 (4.6/7)
OVERALL BEST OPTION
Table 3. EUROPEAN MARKETS’ COMPARISON
COMPARISON
SCREENING VARIABLES GREECE ITALY
Population (1) 10,8 million 60,7 million
Median Age (2018) (4) 44.5 45.5
Education Rate (2016) (5) - -
- Net Enrollment, Secondary 90 (2015) 96 (2015)
- Gross Enrollment, Tertiary 117 (2014) 63 (2015)
Unemployment Rate (3) 6.7 (2017) 11.3 (2017)
GDP per capita in USD (1) 18,049 30,507
GDP Growth % (f 2018) (1) 1.9 1.3
Country Risk Assessment (1) B A4
Business Risk Assessment (1) A4 A2
Inflation (yearly average %) (1) 0.5 (forecast 2018) -1.8 (forecast 2018)
Inflation (annual % change) (2) 57/137 (0.0/7) 60/137 (-0.1/7)
Geographical Distance from UK close close
Infrastructure Quality Rank (2) 38/137 (4.9/7) 27/137 (5.4/7)
Market Size Rank (Total) (2) 58/137 (4.3/7) 12/137 (5.6/7)
Domestic Market Size Rank (2) 55/137 (4.1/7) 12/137 (5.5/7)
OVERALL BEST OPTION
Data Sources:
1. COFACE Country Risk Online Assessment Tool (COFACE, 2018)
(Country Risk Assessment Map Q3 2018 - See Appendix 5)
7-level classification of country (political and economic) risk
from very low to very high (A1, A2, A3, A4, B, C, D).
2. The Global Competitiveness Report 2017-2018 (World Economic Forum, 2017-2018)
(Chile – p.88-89, India – p.146-147, UAE – p.298-299, Italy – p.156-157, Greece – p.130-131)
3. Focus Economics, Economic Data by Region and Country (Focus Economics, 2018)
4. World Population Review, Countries by Median Age 2018 (World Population Review, 2018)
5. The World Bank Group, Education Statistics (The World Bank, 2018)

8. 7
Table 4. MARKETS COMPARISON ADDITIONAL CONSIDERATIONS | MOST PROBLEMATIC FACTORS FOR DOING BUSINESS
MARKETS COUNTRY MOST PROBLEMATIC FACTORS FOR DOING BUSINESS
OVERSEAS
CHILE
▪ vulnerable road network and electricity grid (1) and cold-chain transportation issues
▪ income disparity and poor education system (1)
▪ inefficient government bureaucracy (2)
▪ policy instability, government instability/coups (2)
▪ tax regulations and tax rates (2)
INDIA
▪ corruption (2)
▪ tax rates and tax regulations, foreign currency regulations (2)
▪ inadequate infrastructure (2) and cold-chain transportation issues
▪ policy and government instability/coups (2)
▪ inflation (2)
▪ inefficient government bureaucracy (2)
UAE
▪ inflation (2)
▪ foreign currency regulations (2)
▪ inefficient government bureaucracy (2)
EUROPE
ITALY
▪ inefficient government bureaucracy (2)
▪ tax rates and tax regulations (2)
▪ policy instability and corruption (2)
GREECE
▪ tax rates and tax regulations (2)
▪ inefficient government bureaucracy (2)
▪ policy instability and government instability/coups (2)
▪ corruption (2)
Sources:
1. COFACE Country Risk Online Assessment Tool (COFACE, 2018)
2. The Global Competitiveness Report 2017-2018, Executive Opinion Survey 2017 (World Economic Forum, 2017-2018)
(Chile – p.88-89, India – p.146-147, UAE – p.298-299, Italy – p.156-157, Greece – p.130-131)

9. 8
1. B. MARKETS’ DETAILED COMPARISON

10. 9
2. ENTRY MODE CONSIDERATIONS
Innocent’s expansion to Italy is defined as “market development” growth strategy (Ansoff’s matrix) since the company
will be seeking to reach new consumers with an existing product portfolio. This is also the most rational strategy given
Italy’s relative similarity to the other EU markets the company is already operating in (when compared to the overseas
ones) and the brand’s ability to leverage economies of scale as one of its main strategic competitive advantages.
Establishing a wholly owned local subsidiary (Srl) is in line with the company’s tried and tested practice in Europe with
some of the main advantages for Innocent as a parent company being:
▪ full management and operational control,
▪ reduced costs through sharing of assets, resources, and IP, and use of similar financial systems, administrative
frameworks, and marketing strategies,
▪ ability to provide cash flow and investment should subsidiary incur losses,
▪ legal reduction of tax liability on income and ability to offset earnings in one subsidiary with losses in another,
▪ no legal liabilities for the debts or undertakings of subsidiaries as these are legally distinct entities,
▪ subsidiary acts as both an importer, a distributor and a marketing representative,
▪ increased credibility with banks, suppliers, partners and customers within the market,
▪ relative ease and low costs of setting up a subsidiary in Italy.
3. ASSESSMENT OF MACROENVIRONMENTAL FACTORS IMPACT AND INNOCENT DRINKS MARKET VIABILITY
A closer examination of the macroenvironmental factors (see Table 6) and the brand’s SWOT analysis (see table 7) in
many ways support the conclusions established during the market selection process about Innocent being well-
positioned in addressing most political, economic, legal and demographic challenges since these are trends and market
conditions are observed in and/or shared by the rest of the EU countries where the brand is already present and/or
performing successfully.
In term of the Italian consumers’ rising interest in sustainability and social responsibility (Euromonitor International ,
2018, p. 35) and the increasingly stringent environmental regulations the company has long been at the very forefront
of meeting these by both placing them at the core of its credo and ethos (“taste good, does good”) and by proactively
seeking ways to improve its carbon footprint (e.g. sustainable packaging, sustainable production, donation of 10% of
its profits to charity projects) (Innocent Drinks, 2018).

11. 10
The brand’s unwavering single-minded focus on premium 100% natural drinks segment, its extensive product portfolio,
and innovation-driven culture (product, packaging, marketing, operations) are in line with the premiumization trend
and rising popularity of NH drinks and their functional benefits in Italy. This focus could also be used as a point of
differentiation since most Italian competitors have presence in other “sugar-tarnished” categories.
Italy’s aging demographics is hardly a deterrent since Germany despite having the oldest population in Europe as
measured by median age (Euromonitor International , 2018) was among the two most successfully performing Innocent
market in continental Europe in 2017 (Innocent Ltd. Financial Statement, 2017, p. 4)
The main challenges regarding brand’s viability and success are likely to be linked to the cultural, packaging, and
distribution-related aspects. The potential solutions for these have been mentioned within the SWOT analysis
opportunities section (see Table 7) aiming to maintain the brand’s economies of scale with minimum adaptation.
Table 6. PESTEL Analysis with regards to the EU and the Italian Market
FACTORS
POLITICAL
▪ heightened trade protectionism in Italy due to increased global and domestic policy uncertainty (USA
protectionist policies and Brexit-related market volatility and policy uncertainties) and potential impact
on supply chains due to Brexit and the changes in the UK’s trading agreements with the EU.
▪ Italian government introduced incentives to drive innovation and attract foreign investment and
implemented measures to increase spending on infrastructure projects
▪ “citizens’ wage” initiative aimed at alleviating poverty and narrowing the income gap between the
different social classes
ECONOMIC
▪ 4th largest economy in the EU with the annual real GDP growth recovered to 1.5% (2017) (1) and set to
become 3rd
largest consumer market in the EU by 2030 (5).
▪ higher private consumer spending and improving employment with moderately rising wages (1)
▪ 2nd highest public debt in the EU after Greece (2017) forecasted to decrease in 2018 and beyond (1)
▪ diversified agricultural sector concentrated mainly in the North (1)
▪ country division into developed North with higher-income population and the less-developed South
with 40% unemployment rate in some parts with disparities between the two regions projected to
increase by 2030 (1), (5).
▪ growing inbound and domestic tourism may drive product sales within HORECA channels (5), (6)
▪ Europe ranked as the 3rd highest region in terms of consumption of fruit juice per head (AIJN European
Fruit Juice Association, 2018, p. 6) and together with North America and Asia Pacific accounted for
nearly 82% of global fruit juice and nectars value in 2017.
▪ It also demonstrated slower deceleration in fruit juice demand compared with previous years with
chilled and not from concentrate fruit juices acting as the category’s growth engines with 3.6%
increase for chilled juice (almost 1/4 of EU fruit juice volume) and a similar level of growth for the not
from concentrate juice (accounting for over 1/3 of EU fruit juice consumption) (AIJN European Fruit
Juice Association, 2018, p. 6) (3).
SOCIAL-CULTURAL
▪ 2nd oldest population by median age in Europe (after Germany) with growing percentage of single-
person households implies more opportunities for discretionary spending (5).
▪ the number of couples with children has been declining but remains an important target market
accounting for more than 2/5 of total consumer expenditure

12. 11
Sources:
1. Economy, Finance and Trade: Italy (Euromonitor International, July 2018)
2. Italy: Country Profile (Euromonitor International Country Report Italy, 2018)
3. (AIJN European Fruit Juice Association, 2018)
4. Soft Drinks in Italy, February 2018 (Euromonitor International, 2018)
5. Income and Expenditure: Italy (Euromonitor International , 2018)
6. Rapporto COOP (Rapporto COOP, 2018) (in Italian)
7. Food and Drink Internet Retailing in Italy (Euromonitor International, 2019)
▪ social classes C, B, and A account for 20.2 million of the total population (2017) with the lowest D and E
are expected to have the strongest growth in disposable income over 2018-2030 (6)
▪ late marriages, cultural traditions and economic constrains result in many Italians remaining in their
parent’s home longer which creates more opportunities for discretionary spending product categories
▪
▪ highly ethnocentric attitude with consumers’ strong preferences toward brands with domestic “Made
in Italy” provenance over foreign ones (Eurispes, 2017), (Bertoletti, 2016). (See Appendix 10)
▪ Italy ranks 1st in consumption of fruits and vegetables in Europe (see Appendix 11) and showed a
marked increase both in consumption of fresh fruits and vegetables (ISMEA Report, 2018) and in 100%
and chilled fruit juices (Horeca News, 2018)
▪ distinct consumer trend towards natural, organic, ‘good for you’ products drives the growth of
premium not from concentrate and chilled fruit juices and nectars from high-quality domestic fruits
and/or with certification of provenance (3) as well as the demand for naturally healthy and with low or
no sugar content soft drinks in general (4) (See Appendix 6, 7, 8, 9)
▪ smoothies are a niche segment with few players (3) but more competitors are entering the market
▪ notable increase in purchase of products with claims “free from”, “rich in”, “bio”, “vegan”, “fair trade”
and relevant certification on their packaging to support these claims (Euromonitor International ,
2018), (Food Web, 2018), (Rapporto COOP, 2018, pp. 129, 131) with many consumers increasingly
willing to pay higher prices (3)
TECHNOLOGICAL
▪ increasing adoption and use of social media across different age groups (6)
▪ food and drink internet retailing in Italy is underdeveloped but forecast to become the largest growing
category in e-commerce with Esselunga Supermarkets currently being the leading retailer but still with
marginal value share (7) (Euromonitor International, 2019)
ENVIRONMENTAL
▪ the adverse impact of climate volatility leads to hikes in the cost of raw materials and puts pressure on
margins reflected in price increase to the end consumer and suppressing the level of demand (3)
▪ Italy is ranked among the countries with the highest level of consumers’ attention to sustainability and
social responsibility in Europe (Rapporto COOP, 2018, p. 134) (See Appendix 12)
LEGAL
▪ discrepancies in the existing regulations and benchmarking standards across the countries in the
definition of “organic” present challenges in product certification. This is likely to be resolved with the
new European organic regulation adopted in April 2018 which is to come into force in January 2021
and would be directly applicable across all EU countries (3)
▪ possible introduction of the sugar tax in Italy will not apply to the 100% fruit juices category
▪ EU strategy to reduce plastic waste with a ban on all single-use plastic by 2021 (BBC News, 2018),
(Andrews, 2018) and a plan on all plastic packaging to be recyclable by 2030 (European Parliament
News, 2018)

13. 12
Table 7. Innocent Drinks’ SWOT Analysis within the Italian Market
INTERNAL AND EXTERNAL FACTORS
STRENGHTS
▪ original, well-elaborated, and standardized brand image and identity
▪ clean, uncluttered design and distinctive ownable packaging concept with standardized, cohesive
offline and online presentation
▪ approachable, good-natured, light-hearted, fun brand personality with a casual, humorous style of
communication could resonate with Italian mentality and appeal to a broad range of age groups
▪ established brand reputation in Western Europe for premium high-quality natural products
▪ comprehensive existing product portfolio of smoothies, juices, NH drinks in different packaging sizes
▪ 100% natural high-quality ingredients with no added sugar, preservatives, artificial colours or flavours
▪ strong innovation and product development capabilities and experience
▪ good understanding of the different European markets and ability for cross-market experience sharing
▪ highly-efficient supply chain and S&OP capabilities and well-developed logistics network within Europe
▪ ability to leverage economies of scale in both production and marketing
▪ B-corp certification offers an additional level of credibility and trust with sustainability-conscious
consumers as well as access to benchmarking business practices through the B-Corp community
▪ stands in the forefront in adoption of plastic packaging recycling innovations
▪ high involvement in sustainability projects with farmers from which raw materials are sourced
▪ collaboration with academic researchers on issues regarding health benefits of fruit juices
WEAKNESSES
▪ “innocent” or “ innocente” (in Italian) – due to cultural peculiarities the name connotation and the
immediate association in Italian may be more closely linked to the semantic realms of crime or religion
and the meaning of “guiltless”, “not guilty”, “harmless” or “sinless” rather than to the concept of
“purity”, “wholesomeness” and “honesty” which may be considered as secondary by the Italian
consumers or may not be considered at all.
▪ non-existent brand awareness in Italy
▪ short shelf life – 1 month from production to expiry date (Innovation Enterprise Channels, 2013)
▪ sourcing restrictions and operational constraints due to the brand’s B-corp status
▪ premium pricing due to premium raw materials and higher sourcing and operational costs
OPPORTUNITIES
▪ similarity of innocent’s product range to the traditional Italian “frullato”, “centrifugha”, and
“spremuta” showing a steady rise in popularity among increasingly health-conscious Italian consumers
▪ leverage some of the “clean labels” such as “free from”, “rich in”, “vegan”, “fair trade”, etc.
certifications through additional detachable label so as to keep the standardized packaging concept
▪ emphasize the fact when some of the ingredients have been sourced in Italy (alternatively find local
suppliers to support the claim) or in case the products have been made in one of Refresco’s plants in
Italy include “Made in Italy” on the labels to decrease the impact of the ethnocentric bias and
consumers’ preference for domestic over foreign brands
▪ expand consumption occasions by promoting the products also as part of a traditional “merenda”, a
healthy, nutrient-rich and convenient on-the-go snack alternative.
▪ use a nutrient-centric approach in some of the marketing initiatives emphasizing ingredients’
functional benefits and the fiber preserved in smoothies
▪ get involved in local supplier projects or community and charity partnerships and use the positive press
and media coverage to organically increase brand awareness and create talking points
▪ partner with Italian Instagram (health, general wellness, foodie, lifestyle) influencers and bloggers to
reach health-conscious and ethically-minded consumers capitalizing on both the increasing popularity
of NH drinks, rising penetration and impact of social media, and get the stamp of approval and
endorsement from local Italians
▪ the growing tourism sector could drive on-trade sales within HORECA channels since European tourists
may be familiar with the brand
▪ seek for opportunities to leverage the increasing popularity of home delivery through Just Eat, Foodora
and Deliveroo which have established trust with consumers (especially the younger generation) and
are taking share from the traditional food and drink internet retailers in Italy (Euromonitor
International, 2019)

14. 13
▪ establish rapport with food and drink internet retailers since this sector although currently
underdeveloped is forecast to become the largest growing category in e-commerce (Euromonitor
International, 2019)
▪ get placement with Eataly (14 locations in major cities in Italy) (Eataly, 2018) which caters to affluent
Italian consumers, carries a vast selection of foreign brands and corresponds with the innocent’s
premium positioning and pricing, and potentially with the developing RED Bistrot chain by la Feltrinelli
(9 locations) ( (La Feltrinelli, 2018) catering to affluent white-collar professionals.
▪ capitalize on the impulse sales and growing on-the-go trend by securing product distribution in high
foot-fall locations such as airports, railway stations, and motor-way rest stops partnering with Autogrill
Italia which manages an extensive and diverse portfolio of proprietary and licensed restaurants,
bistros, and cafes (upscale, contemporary, budget) (Autogrill, 2018). A significant additional advantage
could be the vast territory covered and higher market penetration. (Autogrill and Eataly already have
existing partnership) (Autogrill , 2016).
▪ rising interest in a healthy and ethical lifestyle and in NH products with functional benefits, premium
100% and natural chilled juice categories growth along with the premiumization trend are in line with
and in favour of the brand’s USP.
▪ Italian household structure with many 30-year olds living with their parents (statistically country’s most
affluent group) may be advantageous since if successfully targeted and purchased by the younger
generation the brand will naturally reach and achieve brand awareness among the older group and
potentially translate into product being purchased in bigger family packaging size. The 50-year old
group is also more likely to purchase premium-priced indulgent treats for their grandchildren than the
parents would do.
▪ leveraging the on-the-go trend single-portion multipack (packaging with different 2-3 flavours per pack
may drive both the trial purchases and the volume sales.
▪ adding additional detachable label to briefly introduce the brand and its values and emphasize the key
points of its USP or include “feel good” messages (similar to Baci chocolates love notes concept) (Baci
Perugina, 2018) to pique curiosity.
▪ small format smoothies could reduce the purchase risk consideration, increase the trial purchase rate
and boost impulse sales by consumers looking for healthy ‘on the go’ ‘breakfast substitutes’ options.
▪ original flavours, functional benefits (fortified with vitamins) and fruit and vegetable combinations are
becoming popular
THREATS
▪ increasing number of local competitors with high level of brand awareness, strong supply chain and
well-developed distribution network entering the same segments and/or quickly expanding their brand
portfolios with new premium products, original formulations, and packaging sizes as well as reducing
the sugar content
▪ local competitors’ presence in other soft drinks categories (cold teas, waters, etc.) commanding more
shelf space and better brand awareness and recognition
▪ short shelf life (1 month from production to expiry date) combined with the lack of brand awareness in
the market could be a potential challenge in securing placement with the big supermarket chains
▪ double pressure from retailers who are launching their 100% and organic juice private labels at
affordable prices (Euromonitor International, 2018) and at the same time allocating more shelf space
to waters (taking share from the juice category as a whole)
▪ Italian competitor brands’ very prominent and attention-grabbing use of “bio”, “organic”, “free from”,
“rich in”, “vegan”, “fair trade” claims on their packaging compared to innocent discreet approach
▪ biased attitude towards fruits juices due to the sugar content and low level of fiber perception
▪ changing consumption patterns and the decline of the traditional breakfast in many households imply
the need for fruit juices and smoothies to look for alternative consumption occasions
▪ the emerging trend of preparing juices from fresh fruits at home (Euromonitor International, 2018)

15. 14
4. SEGMENTATION, MULTISEGMENT TARGETING, POSITIONING
Multisegment targeting is suggested with some of the major considerations behind this being:
▪ Innocent’s premium brand positioning in a soft drink product category (softs drinks are a low-investment category
with common use of “multisegment targeting” aimed at capturing a wider range of consumers),
▪ massive premiumization trend and rapidly growing preference for NH drinks across different demographic groups,
▪ rapid diffusion of health, wellness and sustainability-conscious lifestyles,
▪ expected inequality gap decrease between C (upper-middle, 9.5 million) and D (lower-middle 16.8 million) social
classes with both projected to expand by 2030 (Euromonitor International , 2018, p. 3),
▪ country’s high average medium age (46 years in 2017) (Euromonitor International Country Report Italy, 2018),
▪ changing household structures with rising number of single household but also 30-years-olds living with their
parents both household types allowing for higher discretionary spending,
▪ falling number of household/couples with children.
Demographics-wise Young Adults (aged 18-29) and Middle Youth (aged 30-44) (Euromonitor International , 2018) are
suggested as primary segments with both likely to be living with some of the other groups - Kids (aged 3-7), Tweens
(aged 8-12), Teens (aged 13-17), Mid-Lifers (45-64) - and partially influence their consumption choices.
Geographic-wise Northern Italy would be the best region to launch the brand due to its population significantly higher
income and discretionary spending levels and higher population density accounting for nearly half of the country’s total
population (Istituto Nazionale di Statistica, 2016). The region also offers significant advantages in terms of logistics –
higher number and density of supermarkets (GDO News, 2018) and closer access to Refresco’s plants (Refresco , 2018).
Tourists (foreign and domestic) are suggested as a secondary segment targeted primary through HORECA channels
(with tourism and food-service sectors showing strong growth) (Euromonitor International , 2018, p. 25) due to lower
price-sensitivity and possibility of being already familiar with the brand.
Taking into consideration the SWOT analysis sector factors and consumer trends the brand’s existing premium
positioning should be kept unchanged.
5. DEGREE OF STANDARDIZATION/ADAPTATION OF THE MARKETING MIX
The gradual modification of the company’s goal from becoming “Europe’s favourite smoothie company” to “Europe’s
favourite fruit juice company” to “Europe’s favourite little healthy drinks company” (Innocent Ltd. Financial Statements,
2000-2018) demonstrates innocent’s increasing ambitions over the years but also its unwavering regiocentric Pan-

16. 15
European focus. Standardization and scalability have been used as major strategic competitive advantages and
instrumental for the lean, flexible and efficient management of the company within an increasingly complex
competitive and market expansion context. Minimal adjustments in product packaging fit well with innocent’s
standardized marketing model. Placement and promotion parts of the marketing mix, however, would require a higher
degree of adaptation. The suggestions with the rationale have been outlined in Table 8.
Table 8. Marketing Mix – List of Suggestions for Adaptation
PRODUCT ELEMENTS SUGGESTIONS CONSIDERATIONS
Name keep the original name
but shift the focus to the
secondary label specifying
the taste (strawberry
smoothie, orange juice)
with a quirky memorable
name
▪ “most Italians don’t speak English and are likely to pronounce it
incorrectly
▪ “innocente” (in Italian) prompts associations with “not guilty” rather
than with “genuity”, ”authenticity”, and “pureness”.
▪ accentuates the brand’s foreign origin in a market where consumers are
highly ethnocentric
Secondary Label adapt
▪ the adaptation could serve as a way to avoid changing the name
▪ memorable, attracts attention and curiosity, humorous, playful,
culturally resonate with consumer
▪ Fare qualche battute – light-hearted Italian humour
▪ More emphasis on free, bio, organic, fibre, sorced or made in Italy
Product Range no change in the product ▪ initial launch of a selection of products from the existing standardized
portfolio (3 product categories smoothies, super smoothies, juices) with
the option of introducing the full range and/or tailoring and introducing
local variants at a later stage considering Refresco plants proximity and
depending on consumers response and preferences
▪ primary focus on super smoothies and smoothies because of their
similarity to the traditional “frullato” and the relatively weak
competition within this segment
▪ juices as a secondary focus given natural 100% fruit juices are a growing
category
Packaging Sizes no change
small bottles (same)
- 250 ml
medium bottles (same)
- 750 ml
▪ small single-portion size bottles to capitalize on impulse purchase and
on-the-go trend
▪ encourage trial consumption, suitable for children
▪ used with on-trade channels and vending machines
▪ for selected products only, based on sale out rate of the small sized
bottles
▪ increase the shelf presence and brand visibility
Single-Serve
Multipacks
x2 - same taste
x3 - different tastes
▪ X2 and x3 are commonly used in the juice category in Italy
▪ the combination of different tastes may encourage trial purchase
▪ may be used as part of a sales promotional initiatives
▪ in line with the sharing trend

17. 16
Additional
Detachable Labels
detachable label
with brand introduction
and/or
“natural”, “no added
super”, “vegan”, “no
additives”
or
“feel good” wishes
▪ “natural”, “no added super”, “vegan”, “free from”, “organic” are
increasingly sought after by the Italian consumers and commonly and
prominently used by the competitors
▪ detachable labels so as to avoid changes to the original design of the
packaging. Tests may be run at different retail locations with and
without additional labels to understand their impact on sales and if
needed make them a part of the permanent design
▪ possible use of feel good messages (similar to Baci chocolates romantic
quotes messages) with a style and tone adapted to Italian consumers
PLACEMENT CONSIDERATIONS
Supermarkets,
Grocery Retail
Chains
▪ Esselunga, Carrefour, Conad, Crai, Iper, Billa, Sisa, Tigros are some of the major and most popular
supermarket chain in Italy selling a wide range of products (GDO News, 2018) and suitable for Innocent
Drinks premium positioning.
EATALY ▪ get placement with Eataly (14 locations in major cities in Italy) (Eataly, 2018) which caters to affluent
Italian consumers, carries a vast selection of foreign brands and corresponds with the innocent’s
premium positioning and pricing, and potentially with the developing RED Bistrot chain by la Feltrinelli
(9 locations) ( (La Feltrinelli, 2018) catering to affluent white-collar professionals.
NaturaSi ▪ NaturaSi stores are a good fit since the chai’s focus are organic and natural products. Aside from its
decent size network, and good reputation with health and wellness consumers, the chain also offers
the option of ordering the products it carries online.
HORECA ▪ growing tourism sector is likely to drive on-trade sales as some of the European tourists may be familiar
with the brand.
▪ Increasing number of juice brands in Italy are adapting their packaging for HORECA channels as food
service in Italy is projected to grow (Examples: Yoga Juices (Yoga Juices, 2018), Santal (Santal , 2018),
Skipper Bar (Skipper Zuegg, 2018), Pago (Pago, 2018))
▪ strong presence within HORECA channels could potentially help leverage the increasing popularity of
of Just Eat, Foodora and Deliveroo which are becoming popular with consumers and are taking share
from the traditional food and drink internet retailers in Italy (Euromonitor International, 2019)
Autogrill ▪ capitalize on the impulse sales and growing on-the-go trend by securing product distribution in high
foot-fall locations such as airports, railway stations, and motor-way rest stops by partnering with
Autogrill Italia which manages an extensive and diverse portfolio of proprietary and licensed
restaurants, bistros, and cafes (upscale, contemporary, budget) (Autogrill, 2018). A significant
additional advantage could be the vast territory covered and higher market penetration. (Autogrill and
Eataly already have existing partnership) (Autogrill , 2016).
Vending Machines ▪ product premiumization is also a notable trend in vending with packaged drinks placed for stable
growth especially the HW drinks category (Euromonitor International , 2019). Vending machines are
widely available at underground stations, many public institutions and high foot-fall areas. Juice
brands in Italy are targeting this channel by adapting their packaging to single-portion plastic or
(Euromonitor International, 2018) (Examples: Yoga Juices (Yoga Juices, 2018), Skipper Zuegg (Skipper
Zuegg, 2018))
PROMOTION CONSIDERATIONS
Social Media ▪ Instagram and Facebook advertising campaigns may be used to increase awareness and pique interest.
▪ focus should be placed on telling the brand’s story and its values and USP since these are not
immediately obvious on the current packaging.

18. 17
Blogger and
Instagram
Influencers
▪ partner with Italian Instagram (health, general wellness, foodie, lifestyle) influencers and bloggers to
reach health-conscious and ethically-minded consumers capitalizing on both the increasing
popularity of NH drinks and the rising penetration and impact of social media, and get the stamp of
approval and endorsement from local Italian influencers
PR ▪ Public Relations initiatives are a natural fit given the company’s involvement in charity work and
sustainability projects which are likely to resonate
Guerilla Marketing ▪ guerilla marketing with a sustainability, green appeal slant may be an effective way to prompt interest
and earn free publicity.
PRICE CONSIDERATIONS
250 ml €1.89-€2.29
750 ml €5.49-€6.29
glass bottles often with minimal, tasteful design and prominently stated “100% natural” or “bio” attributes
on the front side of the packaging are commonly used by many of the competitors within this segment.
Their more premium look compared to innocent’s plastic bottle and a clear indication to consumers of the
product benefits which innocent drinks’ packaging lack along with the fact of being a “Made in Italy” brand
allows for commanding a higher retail price of €2.39- €2.99.

19. 18
APPENDIX 1
INNOCENT DRINKS’ NEGOTIATION OF LICENSING AGREEMENT FOR MARKET EXPANSION IN AUSTRALIA CASE
BUSINESS AND PRODUCT CONCEPT COPIED AND A NEW COMPETITOR “NUDIE“
Source:
Innocent Drinks Website Blog (Innocent Drinks Blog, 2006)

20. 19
APPENDIX 2
INNOCENT DRINKS OUTSOURCED SUPPLY CHAIN OVERVIEW
Source:
18th Cambridge International Manufacturing Symposium Proceedings, 2014
Innocent Drinks Presentation, Squeezing Improvements: Innocent’s Outsourced Supply Chain Journey
Stephen Spall, Group Operations Director, Innocent Drinks.
(18th Cambridge International Manufacturing Symposium, 2014, p. 77)

21. 20
APPENDIX 3
REFRESCO GLOBAL COVERAGE | LOCATIONS BY CONTINENT AND COUNTRY
Source: Refresco Website – Where We Operate (Refresco , 2018)
Link: https://www.refresco.com/en/our-company/where-we-operate
APPENDIX 4
THE HOFSTEDE COUNTRY COMPARISON TOOL | COUNTRY SCORES FOR UK, ITALY, UAE ON 6 CULTURAL DIMENSIONS
Source: Hofstede Insights Website, The Hofstede Insights Country Comparison Tool (The Hofstede Insights, 2018)
Link: https://www.hofstede-insights.com/product/compare-countries/

22. 21
APPENDIX 5
COFACE COUNTRY RISK ASSESSMENT MAP Q3 2018
Source: COFACE Website, Economic Studies and Country Risks (COFACE, 2018)
Link to Download: https://www.coface.com/Economic-Studies-and-Country-Risks

23. 22
APPENDIX 6 | NH JUICES SALES BY CATEGORY: VALUE 2012-2017
Source:
Adapted from NATURALLY HEALTHY BEVERAGES IN ITALY, Euromonitor International June 2018
Table 1. Sales of NH Beverages by Category: Value 2012-2017, p.3
APPENDIX 7 | NH JUICES SALES BY CATEGORY: % VALUE GROWTH 2012-2017, % CURRENT VALUE GROWTH
Source:
Adapted from NATURALLY HEALTHY BEVERAGES IN ITALY, Euromonitor International June 2018
Table 2. Sales of NH Beverages by Category: % Value Growth 2012-2017, % Current Value Growth, p.4
APPENDIX 8 | FORECAST SALES OF NH JUICES BY CATEGORY: VALUE 2017-2022, EUR MILLION
Source:
Adapted from NATURALLY HEALTHY BEVERAGES IN ITALY, Euromonitor International June 2018
Table 7. Forecast Sales of NH Beverages by Category: Value 2017-2022, EUR million, p.7
APPENDIX 9 | FORECAST SALES OF NH JUICES BY CATEGORY: % VALUE GROWTH 2017-2022, % CONSTANT VALUE GROWTH
Source:
Adapted from NATURALLY HEALTHY BEVERAGES IN ITALY, Euromonitor International June 2018
Table 7. Forecast Sales of NH Beverages by Category: % Value Growth 2017-2022, % constant value growth, p.8
CATEGORIES 2012 2013 2014 2015 2016 2017
NH 100 % Juice 174.4 167.5 160.1 161.5 154.4 150.9
NH Superfruit Juice 5.4 5.7 6.1 6.4 6.8 7.1
NH Superfruit 100% Juice 3.8 4.1 4.5 4.8 5.1 5.4
NH Superfruit Juice (<24% Juice) - - - - - -
NH Superfruit Nectars (25-99% Juice) 1.6 1.6 1.6 1.6 1.7 1.7
NH Beverages (All Categories Total) 2,495.0 2,454.7 2,507.1 2,661.6 2,691.1 2,771.2
CATEGORIES 2016/17 2012-17 CAGR 2012/17 TOTAL
NH 100 % Juice - 2.2 -2.9 -13.5
NH Superfruit Juice 5.5 5.9 33.2
NH Superfruit 100% Juice 6.1 7.5 43.6
NH Superfruit Juice (<24% Juice) - - -
NH Superfruit Nectars (25-99% Juice) 3.6 1.7 8.9
NH Beverages (All Categories Total) 3.0 2.1 11.1
CATEGORIES 2012 2013 2014 2015 2016 2017
NH 100 % Juice 150.9 145.9 139.0 132.3 125.9 120.4
NH Superfruit Juice 7.1 7.5 7.9 8.3 8.6 8.9
NH Superfruit 100% Juice 5.4 5.7 6.0 6.3 6.6 6.9
NH Superfruit Juice (<24% Juice) - - - - - -
NH Superfruit Nectars (25-99% Juice) 1.7 1.8 1.9 1.9 2.0 2.0
NH Beverages (All Categories Total) 2,771.2 2,799.5 2,830.0 2,862.0 2,891.6 2,895.1
CATEGORIES 2017/18 2017-22 CAGR 2017/22 TOTAL
NH 100 % Juice -3.4 -4.4 -20.2
NH Superfruit Juice 5.2 4.5 24.6
NH Superfruit 100% Juice 5.7 5.0 27.5
NH Superfruit Juice (<24% Juice) - - -
NH Superfruit Nectars (25-99% Juice) 3.5 3.0 15.8
NH Beverages (All Categories Total) 1.0 0.9 4.5

24. 23
APPENDIX 10
ITALIAN CONSUMER PREFERENCES TOWARD PRODUCTS DEPENDING ON THEIR BRAND ORIGIN
FRUITS
VEGETABLES
FRUIT JUICE
LOCAL BRANDS GLOBAL BRANDS BRAND ORIGIN IS NOT IMPORTANT

25. 24
APPENDIX 11
ITALY’S LEADING POSITION IN PURCHASE AND CONSUMPTION OF FRUITS AND VEGETABLES IN EUROPE
Source:
Rapporto COOP 2018, p.112, (Rapporto COOP, 2018)
Link: http://www.italiani.coop/wp-content/uploads/2018/09/rapporto-coop-2018.pdf

26. 25
APPENDIX 12
THE IMPACT OF ETHICS AND SUSTAINABILITY CONSIDERATIONS ON ITALIAN CONSUMERS PURCHASES
Source:
Rapporto COOP 2018, p.134, (Rapporto COOP, 2018)
Link: http://www.italiani.coop/wp-content/uploads/2018/09/rapporto-coop-2018.pdf

27. 26
REFERENCES
18th Cambridge International Manufacturing Symposium, 2014. 18th Cambridge International Manufacturing
Symposium: Squeezing Improvements: innocent's outsourced supply chain journey. Cambridge, Cambridge University,
Institute for Manufacturing, pp. 71-103.
Ahmed, M., Rutter Pooley , C. & Fontanella-Khan, J., 2018. Coca-Cola salivates over Costa expansion opportunity.
[Online]
Available at: https://www.ft.com/content/27967280-ad26-11e8-94bd-cba20d67390c
AIJN European Fruit Juice Association, 2018. AIJN Liquid Fruit Market Reports. [Online]
Available at: http://www.aijn.org/publications/facts-and-figures/aijn-market-reports/
Andrews, R., 2018. The European Union Just Voted To Ban Single-Use Plastics By 2021. [Online]
Available at: https://www.forbes.com/sites/robinandrews/2018/10/25/the-european-union-just-voted-to-ban-single-
use-plastics-by-2021/#318c1d6c4b4e
Autogrill , 2016. Autogrill and Eataly Team Up for the First Time, on the Motorway. [Online]
Available at: http://www.autogrill.com/en/press-releases/autogrill-and-eataly-team-first-time-motorway
Autogrill, 2018. Autogrill Concepts and Brands. [Online]
Available at: http://www.autogrill.com/en/about-us/brands-and-concepts
Baci Perugina, 2018. Love Notes make each Baci® Perugina® chocolate unique. [Online]
Available at: https://www.baciperugina.com/intl/world/blog/news/love-notes-make-baci-perugina-unique
Balon, A., 2014. Innocent Drinks co-founder shares his lessons for international growth. [Online]
Available at: https://realbusiness.co.uk/innocent-drinks-co-founder-shares-his-lessons-for-international-growth/
Balon, A., 2014. Innocent Drinks Co-Founder Shares his Lessons for International Growth. [Online]
Available at: https://realbusiness.co.uk/innocent-drinks-co-founder-shares-his-lessons-for-international-growth/
Bamford, V., 2015. Innocent Drops Veg & Noodle Pots to Focus on Drinks Ranges. [Online]
Available at: https://www.thegrocer.co.uk/buying-and-supplying/innocent-drops-veg-and-noodle-pots-to-focus-on-
drinks-ranges/516105.article
BBC News, 2018. Single-use Plastics Ban Approved by European Parliament. [Online]
Available at: https://www.bbc.co.uk/news/world-europe-45965605
Bertoletti, C., 2016. Made in Italy o made all’estero? Ecco cosa preferiscono gli italiani. [Online]
Available at: https://www.mark-up.it/made-in-italy-o-made-allestero-ecco-cosa-preferiscono-gli-italiani/
Bouckley, B., 2013. Innocent Drinks has no Plans to Crack as Coke Swallows New Stake. [Online]
Available at: https://www.beveragedaily.com/Article/2013/02/25/Innocent-Drinks-has-no-plans-to-crack-US-as-Coke-
swallows-new-stake
Brown, R. & Grayson, D., 2008. innocent: Values and Value. Journal of Business Ethics Education, Issue 5, pp. 171-192.
Burn-Callander, R., 2015. The Telegraph. Europe Finally Develops a Taste for Innocent, 11 April.
Carmichael, S., 2009. EInnocent Sells £30m Stake to Coca-Cola for EU Expansion. [Online]
Available at: https://www.standard.co.uk/business/innocent-sells-30m-stake-to-coca-cola-for-eu-expansion-
6919586.html
Certified B Corporation, 2018. Benefit Corporation FAQ. [Online]
Available at: https://bcorporation.net/sites/default/files/documents/missionalignment/FAQS%20Combined.pdf

28. 27
COFACE, 2018. COFACE Country Risk Assessment Tool. [Online]
Available at: https://www.coface.com/Economic-Studies-and-Country-Risks
Eataly, 2018. Eataly Website. [Online]
Available at: https://www.eataly.net/it_it/negozi/
Eurispes, 2017. Eurispes, Rapporto Italia 2017. A tavola gli italiani amano il made in Italy (74,1%) e i prodotti di
stagione (80,4%). [Online].
Euromonitor International , 2018. Consumer Lifestyles in Italy. [Online].
Euromonitor International , 2018. Income and Expenditure: Italy. [Online].
Euromonitor International , 2019. Vending in Italy. [Online].
Euromonitor International Country Report Italy, 2018. Italy: Country Profile, s.l.: s.n.
Euromonitor International, 2018. Juice in Italy. [Online].
Euromonitor International, 2018. Soft Drinks in Italy, February 2018, s.l.: s.n.
Euromonitor International, 2019. Food and Drink Internet Retailing in Italy. [Online].
Euromonitor International, July 2018. Economy, Finance and Trade: Italy, s.l.: s.n.
European Parliament News, 2018. EU Strategy to Cut Plastic Waste: More Recycling, Ban on Micro-Plastics. [Online]
Available at: http://www.europarl.europa.eu/news/en/headlines/society/20180830STO11347/eu-strategy-to-cut-
plastic-waste-more-recycling-ban-on-micro-plastics
Featherstone, E., 2017. Interview: Innocent co-founder: 'Everyone Told us It wouldn't Work'. [Online]
Available at: https://www.theguardian.com/small-business-network/2017/mar/20/innocent-smoothie-cofounder-
investment-worst-moment
Fetzer, A., 2015. Message in a Bottle. [Online]
Available at: http://www.foodservicefootprint.com/message-in-a-bottle/
Focus Economics, 2018. Focus Economics Economic Data by Region and Country. [Online]
Available at: https://www.focus-economics.com/countries
Food Web, 2018. Nielsen: Come Cambia il Carrello della Spesa. [Online]
Available at: https://www.foodweb.it/2018/05/nielsen-come-cambia-il-carrello-della-spesa/
Foodservice Footprint, 2018. Interview: innocent’s CEO Douglas Lamont. [Online]
Available at: http://www.foodservicefootprint.com/interview-innocents-ceo-douglas-lamont/
GDO News, 2018. La Mappa della GDO. [Online]
Available at: https://www.gdonews.it/la-mappa-della-gdo/
Germain, D. & Reed, R., 2009. Innocent our story & some things we’ve learned.. London: Penguin Books.
GOV.UK, 2018. Guidance Structuring Your Business if There is no Brexit Deal. [Online]
Available at: https://www.gov.uk/government/publications/structuring-your-business-if-theres-no-brexit-deal--
2/structuring-your-business-if-theres-no-brexit-deal
Graham, N., 2011. My First Million: Richard Reed of Innocent Drinks. Financial Times, 1 July.
Hamel, G. & Prahalad, C. K., 2005. Strategic Intent. [Online]
Available at: https://hbr.org/2005/07/strategic-intent

29. 28
Hickman, M., 2009. Smoothie Operators Sell Out to Coke. [Online]
Available at: https://www.independent.co.uk/life-style/food-and-drink/news/smoothie-operators-sell-out-to-coke-
1664439.html#r3z-addoor
Horeca News, 2018. Succhi di Frutta: Nuova Crescita nel Mercato. [Online]
Available at: https://www.horecanews.it/succhi-di-frutta-nuova-crescita-nel-mercato/
HRD Connect, 2017. See How Innocent Drinks Expands its Talent Acquisition through Europe. [Online]
Available at: https://www.hrdconnect.com/2017/07/26/see-how-innocent-drinks-developed-its-talent-mobility-plan/
Hurley, J., 2011. Innocent heads to Spain after Successful Trial. [Online]
Available at: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8739772/Innocent-heads-to-
Spain-after-successful-trial.html
Hurley, J., 2014. Innocent Drinks’ Profit Goes through a Blender after Coca Cola Takeover. [Online]
Available at: https://www.thetimes.co.uk/article/innocent-drinks-profit-goes-through-a-blender-after-coca-cola-
takeover-3sw8pn5j3hb
Innocent Drinks Blog, 2006. Slight Copy. [Online]
Available at: https://innocentdrinks.typepad.com/innocent_drinks/2006/12/slight_copy.html
Innocent Drinks Sustainability FAQ, n.d. Innocent Drinks - Questions We Get Asked about Sustainability. [Online]
Available at: https://www.innocentdrinks.co.uk/us/sustainability/faqs#faq9
Innocent Drinks, 2018. Our Approach to Being Sustainable. [Online]
Available at: http://assets.innocentdrinks.co.uk/innocentsustainability.pdf
Innocent Ltd. Financial Statement - 28 December 2008, 2008. Companies House. [Online]
Available at: https://beta.companieshouse.gov.uk/company/04007092/filing-history?page=2
Innocent Ltd. Financial Statement, 2017. Innocent Limited, Annual Report and Financial Statements. [Online]
Available at: https://beta.companieshouse.gov.uk/company/04007092/filing-history
Innocent Ltd. Financial Statements, 2000-2018. Companies House. [Online]
Available at: https://beta.companieshouse.gov.uk/company/04007092/filing-history
Innovation Enterprise Channels, 2013. An Innocent S&OP Journey. [Online]
Available at: https://channels.theinnovationenterprise.com/presentations/an-innocent-s-op-journey
ISMEA Report, 2018. Consumi Alimentari 2017. [Online]
Available at: http://www.ismea.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/1384
Istituto Nazionale di Statistica, 2016. Italy in Figures, 2016. [Online]
Available at: https://www.istat.it/en/files/2017/06/Italy_in_figures_16.pdf
Kohn, C., 2015. 5 Benefits to Becoming a Certified B Corp. [Online]
Available at: https://unreasonable.is/5-benefits-to-becoming-a-b-corp/
La Feltrinelli, 2018. RED Bistrot Dove Siamo. [Online]
Available at: https://www.lafeltrinelli.it/fcom/it/home/pages/RED.html
Logistics Manager, 2017. Innocent Drinks - Supply Chain Excellence Awards 2017. [Online]
Available at: https://www.logisticsmanager.com/innocent-drinks/
More About Advertising, 2016. Innocent Picks Mother as European Ad Agency. [Online]
Available at: https://www.moreaboutadvertising.com/2016/07/innocent-picks-mother-as-european-ad-agency/
[Accessed 06 December 2018].

30. 29
Moules, J., 2009. The end of innocence at Innocent?. [Online]
Available at: https://www.ft.com/content/4ed8e050-25ed-11de-be57-00144feabdc0
Moye, J., 2018. Still at the First Sip: Why Coca-Cola – and Other Brands in the Company’s Expanding Portfolio – Are
Poised for Growth. [Online]
Available at: https://www.coca-colacompany.com/stories/still-at-the-first-sip-why-coca-cola-and-other-brands-in-
the-company-s-expanding-portfolio-are-poised-for-growth
Neate, R., 2013. Coca-Cola takes Full Control of Innocent. [Online]
Available at: https://www.theguardian.com/business/2013/feb/22/coca-cola-full-control-innocent
Pago, 2018. Pago Product portfolio. [Online]
Available at: https://www.pago.it/prodotti/
Perrott , N., 2016. Innocent Drinks: The Importance of Reinvesting Profit for Business Growth. [Online]
Available at: https://blog.yellowstep.co.uk/innocent-drinks-importance-of-investing-in-business-growth
[Accessed 6 November 2018].
Proxima Group, 2011. Overcoming Forecast Uncertainty and Volatility at Innocent Drinks. [Online]
Available at: http://insight.proximagroup.com/overcoming-forecast-uncertainty-and-volatility-at-innocent-drinks
Rapporto COOP, 2018. COOP Website. [Online]
Available at: http://www.italiani.coop/wp-content/uploads/2018/09/rapporto-coop-2018.pdf
Refresco , 2018. Resfresco - Where We Operate. [Online]
Available at: https://www.refresco.com/en/our-company/where-we-operate
Refresco Mergers and Acquisitions, 2018. Refresco completes acquisition of Cott's bottling activities. [Online]
Available at: https://www.refresco.com/en/stories/refresco-completes-acquisition-cott-bottling-activities
Santal , 2018. Santal, Bar Product Portfolio. [Online]
Available at: https://www.parmalat.it/santal/al-bar/
Sibun, J., 2008. Not such a Smooth Ride for Innocent. [Online]
Available at: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2794173/Not-such-a-smooth-
ride-for-Innocent.html
Skipper Zuegg, 2018. Skipper Zuegg Product Portfolio. [Online]
Available at: https://www.skipperzuegg.it/it/succhi/
Smale, W., 2018. How Smoothie Brand Innocent Became a Bestseller. [Online]
Available at: https://www.bbc.co.uk/news/business-43542605
Stammer, R., 2016. It Pays to Become a B Corporation. [Online].
Statista, 2018. Number of Starbucks stores in the United States from 2005 to 2018. [Online]
Available at: https://www.statista.com/statistics/218360/number-of-starbucks-stores-in-the-us/
Team, T., 2018. Why Is Coca-Cola Paying A Hefty Premium For Costa Coffee?. [Online]
Available at: https://www.forbes.com/sites/greatspeculations/2018/09/04/why-is-coca-cola-paying-a-hefty-
premium-for-costa-coffee/
The Hofstede Insights, 2018. The Hofstede Insights Compare Countries Tool. [Online]
Available at: https://www.hofstede-insights.com/product/compare-countries/
The Manufacturer, 2011. Innocently Juicy. [Online]
Available at: https://www.themanufacturer.com/articles/innocently-juicy/

31. 30
The World Bank, 2018. The World Bank. [Online]
Available at: http://datatopics.worldbank.org/education/
Warner, J., 2018. Coca-Cola buys Costa Coffee: everything you need to know. [Online]
Available at: https://www.ig.com/uk/news-and-trade-ideas/shares-news/coca-cola-buys-costa-coffee--everything-
you-need-to-know-180904
World Economic Forum, 2017-2018. The Global Competitiveness Report. [Online]
Available at: http://www3.weforum.org/docs/GCR2017-
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf
World Population Review, 2018. World Population Review, Countries by Median Age 2018. [Online]
Available at: http://worldpopulationreview.com/countries/median-age/
Yoga Juices, 2018. Yoga Bar Product Portfolio. [Online]
Available at: https://www.succhiyoga.it/en/products/bar
Yoga Juices, 2018. Yoga Juices Vending Product Portfolio. [Online]
Available at: https://www.succhiyoga.it/en/products/vending