Innocent Drinks: A Comprehensive Business and Marketing Analysis

This report analyzes the business strategies and entrepreneurial journey of Innocent Drinks, a company founded in 1999 that started selling smoothies at music festivals and expanded to a global brand. The analysis covers the company's innovative product development, marketing strategies, including TV advertising and social media engagement, and its commitment to social responsibility through the Innocent Foundation and charitable donations. The report examines the role of the founders' backgrounds, funding, and the company's approach to customer relations, transparency, and employee benefits. It also discusses the company's success factors, including product innovation, advertising, and social enterprise initiatives, providing insights into the company's evolution and its impact on the food and beverage industry. The report also highlights the company's commitment to providing healthy drinks and its impact on society and the environment. The report includes a table showing the company's profit/loss from 2004 to 2014 and the amount of money committed to charity and the amount received by the foundation.

Innocent Drinks
Innocent drinks were established in 28th April 1999. They began by selling smoothies at
music festivals and asking people at the festival whether they liked the idea of the business
and product. Because the company received positive feedback, they started making coconut
water, natural healthy drinks and started to sell in addition to smoothies in local sandwich
bars. In 2000 they developed transport. Five years later they developed many drinks such as
smoothies, kids drink and tried to innovate them. In 2006 they finally start to advertise on
TVs about their drinks to increase sales by telling customers about the benefits of the drinks.
By 2014 the company spread worldwide and start selling drinks to 30 countries.
One of the co-founders of Innocent drinks was interviewed by Huffpost Business. The fact
that all three entrepreneurs were Cambridge graduates must have helped in the promotion,
product and marketing. Richard Reed (co-founder), was asked: ‘How can people be best
helped to start their own business?’ His reply was revealing in that he had an idea to develop.
innocent is a brand who treat their customers as real, breathing, living human beings. They
engage with their customers in a friendly and relatable manner, by acknowledging that each
of the people sending them comments, questions or complaints is an actual person behind a
computer screen/mobile. They don’t market themselves too obviously what I am trying to say
is that innocent don’t make try to advertise them too self and treat all the cust
‘I think it’s partly about awareness. When I was at school, it wasn’t even on
anyone’s radar that starting a business was an option. Jobs were things that
you got in other people’s businesses; there was no sense that you could set up
your own business.’ (http://www.huffingtonpost.co.uk/2013/07/25/richard-
reed-innocent-interview_n_3653121.html )
This revealed his ability to become aware of a possible marketing niche. Most importantly,
the funding of any entrepreneurial business is based on sound investment and on a product
that has been tested (people’s opinions etc).
‘The second thing is about giving people access to funds. But I’m quite
positive about that because I think it’s easier now than it has ever been. I’m
not saying it’s easy though, I think raising funds is a sort of filtering process to
stop the shit ideas getting to market.’
(http://www.huffingtonpost.co.uk/2013/07/25/richard-reed-innocent-
interview_n_3653121.html )
It is evident that the three co-founders had the source to develop their ideas. Richard Reed
stated that he was able to secure finance for the product and promotion of the company.
Fifteen years ago, an older guy put in money to our business and without that
money, there’d be no Innocent, and so we want to pass on that to the next
generation. (http://www.huffingtonpost.co.uk/2013/07/25/richard-reed-
innocent-interview_n_3653121.html )

The development of other drinks under the ‘Innocent’ label
The clever way that Innocent advertised 10% of their profits to charity. This is obviously net
profit (after tax etc.) If the company had lost money, then they would not have been obliged
to pay anything. This obviously encourages smaller companies to promote their companies
through Social Enterprise. Also, being a Limited Company, the entrepreneur’s income would
have been deducted from profits before the 10% gift was allowed. The clever part here is the
declaration of giving to charity.
Within the context of demystifying social enterprise, Innocent drinks were developed for a
social and environmental purpose. Because of the Social Value Act 0f 2013, there has never
been a better time to be a social enterprise. The composition of Innocent drinks correlates
well with todays need for healthier food and drink. The charities benefitting from the pledges
made by Innocent was more than just a business decision:
‘We wanted to leave things a little better than we found them; to work in a more
enlightened way, where we took responsibility for the impact of our business on
society and the environment.’ (Richard Reed. Business zone on CSR).
Forty-one charities were involved in 30 countries worldwide. Innocent company donates
10% of the profit to innocent foundation which set up in 2004 and the purpose behind this
was to help community on a sustainable path to a better life all around the world. They
helped poor people by giving unwanted drinks and fruits to people who need it. In the UK
company works with many charities: the Matthew Three project charity and Trussel Trust
charity.
The table below shows the amount of profit/ loss company has made from 2004 to 2014 and
amount of money committed to charity and amount received by the foundation.
There are number of reasons behind the success of the Innocent company. First of all, the
company started by producing innovative products which could compete and be meaningful

for their consumers. The company have developed many varieties of drinks over time by
using different ingredients and carrying out qualitative research as well as trying to make
drinks healthier and tastier for people. Good advertising media has played an important role
in spreading business quickly by introducing their drinks with further benefits to society.
Innocent also gives away drinks to the homeless. Plants trees and also encourages recycling
which also played major role in the success of the business. The company also are
transparent with their employees and consider their rights, as they
believe that a successful company is going to be made by the involvement
of every single employee. Such is the company’s commitment, their
employees receive benefits like free breakfast, scholarship and a share in
the profit. Innocent also give away drinks to the homeless.
Task 2
I consider that the Innocent company has taken a very different view on
business where many people benefit from buying their product. In
addition, the product itself is deemed to be a healthy conducive to all
dietary needs. I am amazed how the three entrepreneurs entered into the
world of business. Personally, I believe it was little more than an interest
in the first instance.
The skills have come from both qualitative and quantitative research.
This has brought about criteria which has been used in the making of
drinks. The need for naturally squeezed fruits as opposed to the
consumers distaste for artificial ingredients. This simple approach has, in
my mind, make the company grow to the size it is today. The brand name
Innocent exemplifies pure, natural juices.
Whereas I believe that the three founders did not actually take any risk
themselves (an older guy financed the company), it was their dedication
that is an example to any business on how to succeed.
Crucially, I believe that you have to find a product that people will be
interested in and through research develop ideas as the founders did.
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