Juicing Profits

According to the Juice and Smoothie Association (JASA) the juice and smoothie business topped $1 billion in sales for the first time in the USA in 2002 and has been increasing at an alarming rate ever since. Although Australia hasn’t experienced sales figures such as these for logistical reasons, sales profits from fresh juice and smoothies have increased by an average 55% over the same period.

With average profits margins in excess of 800%, depending on product and season, why not capitalize on this unlimited profit potential. By stressing the healthy benefits of freshly squeezed juice you can open your doors to an entirely new consumer group.

Below are a few examples of what profits can be made from fresh juice. For the purpose of this example we will use a 375ml cup which sell for an average of $3.75. The cost of the cup is $0.06 including the lid.

Product

Per Kilo Cost*

Amount needed to produce 375

Cost of sale including the cost of cup

Profit

Profit Margin

Orange $0.55 / kg 0.685 kg $0.44 $3.31 752%
Carrot $0.45 / kg 0.750 kg $0.40 $3.35 837%
Watermelon $0.50 / kg 0.500 kg $0.31 $3.44 1109%
Apples $0.60 / kg 0.681 kg $0.47 $3.28 698%

* Product price based on Sydney prices on 12/02/04.