| 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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