4.0 COMPETITIVE ANALYSIS

According to Euromonitor, fruit juice is relatively concentrated, with local companies dominating sales. Fruit juice witnessed increased consolidation during the review period and these merger activities have reduced the intensive competition that once characterised the fruit juice industry. Consolidation in the fruit juice industry has enabled those surviving companies to achieve economies of scale and increasingly move away from constant price discounting.

In analysing the competitors, it was found that the major competitors within the fruit juice drink market include Coca-Cola Amatil, Berri Ltd and Pure & Natural Beverages Pty Ltd. However, the major competitor Golden Circle faces within the fruit juice drink market is Berri Ltd. Berri Ltd lead in overall fruit juice, accounting for almost 51% of off-trade volume sales in 2001. Berri’s leading brands such as Daily Juice, Berri, Australian Fresh, Just Juice, Prima, Sunrise, Squeeze, and Sunburst have helped to strengthen its overall position in fruit juice.

Berri has managed to stay in business without being taken over. With its consolidation led strategy, Berri has managed to stay in business and reduce competition through acquisition of National Foods Juice, in October 1999. This has helped the company to achieve economies of scale and operate competitively against the other major players. One of Berri’s additional strengths is its well-established plants that are strategically located to ensure efficiency in its distribution throughout the country.

However, whilst Berri dominates fruit juice with more than half of total volume share, it does not own the leading brand. Golden Circle retains the leading place, accounting for 16% of total juice sales. Therefore, it will be through vigorous competition, innovative marketing techniques, flavours, packaging and delivery systems that will ensure Golden Circle become not only the leading brand, but also leading company in Australian fruit juice.