While Australians may be cutting back their retail spending due to inflationary pressures, they have no qualms staying in and reaching for a cool bottle of orange juice, evidenced by a 23% increase in sales by The Original Juice Co (ASX: OJC).
Sales over the September quarter totalled $13.4 million which represented a 23% increase on the previous September quarter, typically one accustomed to warmer beverage varieties.
Given the unseasonably strong sales, The Original Juice Co. is optimistic about FY24, projecting a sales growth ranging between 12-16%. This ambitious forecast is expected to bring their total sales for the year to a range of $59 – $61 million. To fall within that range would be a 12% increase on the $52.7 million in sales reported for FY23.
A driving force behind this sales growth is the company’s strong brand performance. The Original Juice Co.’s major brands, including Original Juice Company and The Juice Lab, have continued to excel in the marketplace, outperforming competitors and gaining increased shelf space in supermarkets.
The brand performances promptly led the Company to re-brand from it previous name, The Food Revolution Group (ASX: FOD), before rebranding to its current name in March 2023 as part of an ambitious growth strategy tabled by former Victorian Premier, Jeff Kennett, who also serves as Chairman of the Board.
CEO of The Original Juice Co, Steven Cail, said, “Over the past two years, OJC has undergone significant changes to the Board, the management team, and our focus is clearly on the core business. This has driven a new strategy and improved governance, people capability, efficiency, cost control, and performance.
“We’ve got a clear plan to grow sustainably and profitably in the years ahead. Today’s Q1 FY24 sales growth of 23% versus PCP, and our resultant full FY24 forecast of 12-16% sales growth, gives us confidence in the plan. Our forecast targets for FY24 would mean a second consecutive year of strong sales growth (which were up 18% in FY23) and provide some genuine momentum for OJC.”
Sales of Original Juice Company and The Juice Lab products exhibited growth, surging by 13% compared to a market growth rate of 2.6% in the Australian grocery market sector. The Juice Lab, which offers wellness shots, multi-shots, and smoothies, has garnered an impressive market share of 68% in a fiercely competitive segment. The company remains committed to innovation, swiftly addressing gaps in the health-conscious consumer market to further expand its market share and improve margins.
The Company’s success story also hinges on its ongoing efforts to expand its distribution networks and secure new partnerships. The forthcoming grocery range reviews at Woolworths and Coles, scheduled for implementation by the end of October 2023, will see a broader selection of Original Juice Company and Juice Lab products gracing the shelves.
This expansion includes the introduction of six new products, consisting of three new 600ml drinks and three new Juice Lab shots.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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