US fruit pouch category could be worth $1bn in next 3-4 years, predicts GoGo squeeZ: ‘The opportunity in the space is tremendous’

By Elaine Watson

- Last updated on GMT

GoGo squeeZ notched up US retail sales of $200m in the year to April 19, 2015
GoGo squeeZ notched up US retail sales of $200m in the year to April 19, 2015

Related tags Snack foods Snack food

The US fruit pouch category could be worth $1bn in next 3-4 years, predicts the firm behind GoGo SqueeZ, a resealable squeezable fruit snack that was developed in France in the late 1990s, entered the US market in 2008, and notched up US retail sales of $200m in the year to April 19, 2015.

And there is still huge potential to grow, according to Bill Graham, president at GoGo squeeZ maker Materne North America, who was speaking to FoodNavigator-USA after the official opening of an $85m manufacturing facility in Nampa, Idaho, which complements the firm’s plant in Traverse City, Michigan.

“I believe this category has the potential to be worth more than $1bn over the next three to four years. The opportunity in the space is tremendous. Household penetration of fruit squeezes in the US is growing very fast, but it’s still only 13% compared to 36% in France.  

“We launched the fruit squeeze category for kids in the US in 2008 ​[100% fruit in a re-sealable squeezable fruit pouch] and we are still growing at more than 50% year over year by bringing in new households and encouraging people to trade up to larger pack sizes.  I can see us more than doubling the size of our business over the next three to four years.”

Retailers are allocating more space to squeezable fruit snacks

He added: “We launched in the apple sauce/canned fruit and vegetable aisle, which for many retailers had traditionally been flat and even declining, and it really took hold. But we’re also testing locations in the snacks aisle and other areas in the store. Retailers love it because it’s on trend and it’s driven tremendous growth, so they are allocating more space to it.”

The new factory

The new $85m GoGo squeeZ facility in Nampa, Idaho, is close to major apple growing regions in Washington, Oregon and Idaho. It currently has 122 full-time employees and is on-target to have 173 by the end of 2015 and 284 by end of 2017.

“We believe that we offer superior quality and freshness, more variety, and a cleaner ingredient profile (no preservatives, no added sugar/high fructose corn syrup). But competition is good. We’re investing in driving the growth of the whole category.”

GoGo SqueeZ apple strawberry
GoGo squeeZ pouches are shelf-stable with a 12-month shelf life. Each 90g pack has 50-80 calories depending on the flavor.

Portable and healthy

He added: “American consumers’ relationships with food continue to change. It’s less about dieting and losing weight and more about being very aware of what I’m putting in my body. We’ve turned the conventional wisdom that portable snacking can’t be healthy right side up.”

While young children are the primary consumers of the pouches – the target audience is children aged 3-7 years – children aged 8-12 are also a growing consumer base along with Moms, athletes, runners, bikers,  and fitness enthusiasts, said Graham.

GoGo squeeZ fruit & veggies
The new Fruit & VeggieZ line combines fruits, veggies such as carrots and sweet potato, and fruit juice concentrates. They do not contain flavors, preservatives or sweeteners.

“It’s ideal for lunch boxes, but also for breakfast, afternoon snacks, any time really. Just a couple of weeks ago at my daughter’s soccer game, one of the Moms had brought a 24-pack of GoGo squeeZ to share after soccer practice.”

A big opportunity to target adults as well as kids

Like a lot of healthy snacking brands, GoGo squeeZ started in Whole Foods but steadily expanded distribution to chains including Target, Costco, Kroger, Publix, Albertsons, Sam's Club and Walmart along with high profile foodservice brands including KFC and Applebee’s, and is now in well over 50,000 locations, said Graham.

GoGo SqueeZ cherry
Consumers who register with TerraCycle can fill a box with empty GoGo squeeZ pouches, download a free shipping label and mail them off for upcycling and recycling. They can also earn TerraCycle points (visit terracycle.com for details )

“We see big opportunities in foodservice and other channels from airlines and drugstores to convenience stores, schools and vending machines ​[GoGo squeeZ pouches are shelf-stable with a 12-month shelf life]. Anywhere that sells healthy snacks is relevant, and quite frankly, that’s everywhere.”

Historically, growth has come from adding new flavors, new pack sizes (4, 12, 16, 20, 24 pouches per pack) and organic variants as well as new accounts, but the firm is also looking at new platforms, he said.

We launched a new fruit and veggie platform this past year and it’s off to a great start, and we’re also looking at a couple of new platforms; one that’s kids-oriented and one looking at the adult segment.

“I see a big opportunity in the adult space, although I can’t give any more details right now.”

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