Article contained within:  News, The Original Smoothie Company is Ripe For Expansion

The Original Smoothie Company is Ripe For Expansion

This week sees a £500,000 placing by The Original Smoothie Company, the latest entrant into the fast-growing UK health drinks market.

Founded by Lord Clanmorris, the Company is pursuing an aggressive roll-out strategy through a combination of franchising, licensing and events promotion. The Company has already sold twenty four franchises and will use the funds to finance continued expansion.

A "smoothie" is a drink produced from blending fruit and fruit juice. The UK smoothie market is now worth £134m a year, which represents significant growth over 1 year and a staggering 523% over 5 years. Last year in the UK approximately 34 million litres of smoothies were consumed - up from just 6.3 million litres in 2001. Mintel forecasts sales volumes will almost treble by 2011.

Smoothies have a broad appeal as a healthy alternative to many other soft drinks. Increasing obesity in the UK has tremendously enhanced the desirability of health products and growth trends in this market are being witnessed throughout the world. Smoothie consumption is benefiting from the UK Government’s 5-a-day fruit intake health campaign. More than 20 per cent of UK adults are considered obese and the UK government is stressing the importance of five fruit and vegetable servings per day. Smoothies deliver a convenient means of fruit intake and one 80g serving of fruit in a smoothie can represent up to two portions of the recommended 5-a-day fruit intake.

Founded in August 2007, the Company has already achieved sales of more than £600,000 and projects that turnover will reach approximately £2m in the next 12 months and nearly £5m in the following year.

Managing Director, Julian Gilbertson, said: “Our franchise strategy is enjoying rapid expansion and the current placing will enable us to invest further in distribution and marketing, including increasing the number of outdoor events supplied by The Original Smoothie Company.”

Incorporated in August 2007, The Original Smoothie Co Ltd was established as a franchise company specialising in supplying frozen fruit with a view to exploiting the growth in smoothie products both nationally and internationally.

The Company is offering up to 4,000,000 shares of the enlarged issued share capital to investors to raise approximately £500,000 in an initial private placing. Assuming the placing is fully subscribed, the Company will have an estimated capitalisation of £1,750,000. The shares are being offered for sale through City One Securities.

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