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Innocent sells £30m stake to Coca-Cola for EU expansion
Sri Carmichael6 Apr 2009
SMOOTHIE maker Innocent is selling a £30 million stake to Coca-Cola.
The fizzy drinks giant will own between 10% and 20% of the company, whose success has been built on making natural, healthy juices.
The cash injection will be used to fund Innocent's European expansion.
Innocent today insisted that investment from Coca-Cola - which has been criticised for its unhealthy drinks and alleged exploitation of workers and the environment - would not affect its products or its principles.
Richard Reed, co-founder of Innocent, said: "This is a minority investment. Coca-Cola is a silent partner and every penny of the cash is going to fund our push into Europe. We - the founders - are in this for the long run, and we'll continue to lead and run the company. It'll be the same people making the same products in the same way.
"We'll just have more resources to keep doing what we care about - bring natural healthy food to more people using more environmentally friendly ingredients and packaging."
Innocent was founded in 1998 by Reed, 36, Adam Balon, 37, and Jon Wright, 36 - who had been friends at Cambridge - after they bought £500 of fruit to make smoothies at the Jazz on the Green festival in Parsons Green, south-west London.
Customers told them the drinks were so good they should leave their jobs in management consultancy and advertising to set up Innocent.
Reed acknowledges that Coca-Cola "has its detractors". But he added: "This might not initially sound right, but it is right In some small ways, we may be able to influence their thinking."
Innocent joins a clutch of ethical businesses that have sold a stake in their company to big business. Pret A Manger sold McDonald's a 33% share of its business in 2001, and Body Shop was taken over by French cosmetics giant L'Oréal in 2006.
Reed did not rule out more investment from Coca-Cola, saying: "We need £30million so that we can secure our EU market position."
Innocent's share of the European markets was 63% last year.
Reader views (15)
I love Innocent smoothies and so do my kids. I'm also pleased that a British company is able to expand during such hard times but I think coca cola's investment might taint an apparently ethical brand!
- Haven Lady, England, 13/05/2010 13:24
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I think this is great news for both Innocent and Coca Cola. It is good for Innocent as they will now have the money behind them to make it a household brand and more readily available to the public and get more healthy drinks on the shelves through the use of Coca Cola leading class sales force.
It is a fantastic move for Coca Cola as they are rapidly expanding their range of healthy products. Innocent will be added to the range of healthy products that Coca Cola already offers such as Apple Tizer/ Pear Tizer, Capri Sun 100% juice, Minute Maid Range, Malvern Water and the latest Abbey Well Water. On top of this as mentioned it is securing jobs at this increasingly difficult time. Well done and congratulations to both parties!
- Dan, Newcastle upon Tyne, 08/04/2009 14:45
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I saw this article and audibly sighed. Now I have to add Innocent to the list of products I'm not going to buy.
- Dave, Watford, England, 07/04/2009 15:35
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Hmm, the three founders consist of 2 ex management consultants and someone who worked in advertising. Could it be possible that the Innocent logo and all their related do gooder attitudes might be the result of some pretty canny capitalists? And might the proof of the sale of a stake to Coca Cola, a worldwide 'evil brand', be proof that it's always been about the money honey?
- Ted, London UK, 07/04/2009 09:58
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I think this is great news for Innocent - in times when the country is falling apart in a recession, they have been able to expand. Congratulations! Now the goodness of Innocent can be spread further round the world which can only be a good thing. I am certain the product will not change and just more people get to experience it. Also more jobs for people in this country. Surely having coke on board means that the expansion can only be greater. Very exciting!
- Lydia, Harrogate, England, 06/04/2009 17:59
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'Innocent' - sharp capitalists more like, and, like all capitalists, greedy. Their mantra: expand, expand and smash the competition. And we are meant to think that's marvelous!.
- Esther, Somers Town, London, 06/04/2009 17:00
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So they are not innocent anymore. They have sold out to the Coke monster. They needed £30million for europe they say, they want to expand their products they say, they are doing well they say, and they will continue to make healthier drinks they say, so why get money from Coke ?
- Mr S.Port, London, 06/04/2009 16:24
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All a bit of a sell out really. We bought into the Innocent brand for everything Coca Cola isn't - apparent ethics, soul and british owned.
sure they could have found another "silent" partner. just a ploy for coca cola to buy the company bit by bit to avoid ruining the brand equity with 100% purchase. After all Pepsi have Tropicana so i guess Coke wanted a slice (!?) of the action.
- Chris, London, 06/04/2009 14:24
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Give me an ice cold coke out of a glass bottle any day over some jumped up smoothie that is no better for you.
- Investment Banker, London, 06/04/2009 13:23
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I was a bit shocked recently to find out that their drinks are actually made in Rotterdam. They may be natural but most have a higher carbohydrate level than Coca-Cola so its not a one way street of benefit. They are a great brand though and its good to see fruit being consumed that might otherwise end up in animal feed.
- Jack Spratt, Richmond, England, 06/04/2009 12:52
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Awesome! Good on the guys for sticking their necks out in tough times and going for a European expansion plan to bring yummy smoothies to more people when so many British companies are having to pull reign in their mission statements. Go innocent go.
- Emma, London, UK, 06/04/2009 12:49
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I think this is great, a British company getting investment when times are tough and such a small stake that means they haven't sold their soul. Having watched their progress over the last few years I doubt that innocent will change in anyway - maybe some of their good ethics will rub off on Coke!
- Jennifer, London, 06/04/2009 11:53
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How exciting for innocent. All small to medium businesses need some help sometimes and I trust the innocent brand to do continue doing what they do well. They sell great products and have great values.
- Sarah, London, 06/04/2009 11:21
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That's very sad. And there was I thinking Innocent was an ethical company with principles.
- Genevieve Brains, Hammersmith, UK, 06/04/2009 11:15
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That really is a shame - another product I have to add to my list not to buy. I'm sure there would have been more ethical silent partners they could have raised investment from.
- Andy, London, 06/04/2009 10:40
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