December 15, 1999

All juiced up!

Juice bar industry warms up to

Twin Cities

By Brent Killackey

– Photo by Jeremy Fischer

Laura McCabe hands a customer an "Incredible Hulk" smoothie — made from apple juice, avocado, banana and fat-free frozen yogurt — at the Fresco Juice Company, 1426 W. Lake St. Juice bar entrepreneurs hope to repeat the skyrocketing success coffeehouses enjoyed in the ’90s.

Smoothies have been called the power drink for the future, and local juice bars are powering up their efforts to capture a share of the growing Twin Cities market.

In the past few years, juice bars have moved from relative obscurity in co-ops to prime retail locations in Uptown, chain grocery stores and health clubs.

The smoothies — essentially mixtures of fruits, vegetables, vitamin supplements and ice — appeal to a crowd both on-the-go and concerned with good health.

“It’s cool to get a kind of thing that’s quick and has fruit and vegetables that’s good for you,” said Bill Schneider, feasting on a Berry Blue smoothie at Fresco Juice Company in Uptown. The Dunwoody Institute student said he sometimes makes a meal out of the smoothies, but mostly enjoys them as a quick, healthy snack in between classes.

“As the world gets more health conscious and busier every day, juice bars will get healthy products to busy individuals,” said Chris Cuvelier, president of San Francisco-based Juice and Smoothie Bar Consulting.

Until recently, there were three key players in the Twin Cities: Crazy Carrot, Fresco Juice Company and Sola Squeeze, all locally based juice bars. In total, roughly a dozen juice bar locations were scattered around the metro area.

In late November, Crazy Carrot announced it would team up with the national juice bar chain Jamba Juice. Jamba Juice is rapidly becoming the dominant player — with roughly 150 stores — in a mostly fragmented industry. There’s even been talk of an initial public offering in the near future.

With the partnership, the Crazy Carrot at Hennepin Avenue and West Lake Street was closed, as a Jamba Juice opened in Whole Foods in Calhoun Commons at Excelsior Boulevard and West Lake Street.

The strong showing by local juice bars may have drawn Jamba Juice into the Twin Cities long before the national chain would have eyed this region on its own. The juice bar trade started in California, spread to the East Coast and is slowly moving into the Midwest, Cuvelier said.

“Had I not opened Sola Squeeze, I don’t think Jamba Juice would be in the market at this time,” said Sola Squeeze president Susan Hibbs.

Tony Barranco, director of Minnesota and Wisconsin operations for Heartland Juice Company, which will run Jamba’s Midwest operations and Crazy Carrot’s operations, agreed with Hibbs, calling it the Carribou Coffee effect.

Carribou Coffee, a locally based coffee shop, started opening stores in the Twin Cities market well ahead of national giant Starbucks. When Starbucks finally turned to the Twin Cities, they found the market already dominated by the local shops.

“Sola and Crazy Carrot took the lead, and Jamba really wanted to catch hold before they were swept away,” Barranco said.

Juice bar industry officials now expect growth similar to the coffee industry, which has spread throughout the region.

“I think you will see juice bars on every corner as time goes by,” Cuvelier said.

But to expand from the dozen or so existing locations to double or triple that number in five years, special consideration needs to be given to Minnesota’s climate.

“Unfortunately it’s tough when it’s 20 below zero to talk someone into coming in and getting a frozen juice beverage,” Barranco said. That was part of the reason why the Crazy Carrot was closed at the freestanding location at Hennepin Avenue and West Lake Street, he said.

Hibbs agreed with Barranco’s assessment: “The biggest challenge would probably be determining whether or not to go into more freestanding, outdoor locations. I don’t know how well that will work here with this climate.”

To combat the climate, Twin Cities juice bars have targeted weather-resistant locations such as Minneapolis’ skyway system, grocery stores and unique high-traffic retail areas like Uptown.

Sola Squeeze will open a location inside Lunds in Uptown this spring. Jamba Juice has a deal with Whole Foods. Fresco Juice Company will be expanding at Northwest Athletic Clubs.

“We’ve got a need to stay close to retailers that will help weatherproof our beverages,” Barranco said.

Smoothies cost from $3 to $5, but juice bar owners don’t think price will be an impediment to growth.

“People at first were very appalled to pay $3 for a cup of coffee,” Barranco said. “Now it’s a common practice.”

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