Fruit smoothie drawing fans at fast-food outlets

Tim Hortons leads the way as women, young people lap up the frosty treats

VANCOUVER – Move over caffeine addicts and make way for Canada’s new beverage craze: the fruit smoothie.

Those icy blends of berries, bananas, mangoes and yogourt are now the fastestgrowing menu item in the restaurant industry, nearly doubling in number of servings for the year ending November 2011 to more than 72 million servings.

The evolving consumer appetite for healthier menu options hasn’t gone unnoticed by the country’s biggest brands, including Mcdonald’s, which, on Wednesday, became the latest to join the smoothie revolution with the launch of its Mccafé Real Fruit Smoothies.

Tim Hortons and Starbucks Canada have already enjoyed significant success in the sector. Tim Hortons is credited by analysts with securing 62 per cent of the market in Canada.

Dave Mckay, Tim Hortons director of brand marketing for beverages, said the decision to branch out beyond the company’s more traditional coffee-based offerings was driven by customer demand for healthier snack options.

“Our female guests and our younger guests really take to these drinks, but, again, we’ve seen it across the entire guest base,” Mckay said.

Starbucks, meanwhile, also added them to its menu, following market research feedback showing increasing demand for “healthier food and beverage choices in its stores,” the company said in an email.

“Smoothies tick all the boxes for a guilt-free, affordable indulgence: They taste great, are convenient and portable for an on-the-go snack ... plus they’re good for you,” said Linda Strachan, an industry analyst with the market research firm The NPD Group.

According to NPD’S research, smoothies are particularly popular with women, and customers under 35 years old.

Mcdonald’s entry into the smoothie market this week comes as the fast-food giant continues to recover from poorly received menu offerings such as pizza and deli sandwiches.

John Betts, chief executive of Mcdonald’s Canada, said the company no longer follows that “rush-to-market” mentality, relying instead on market research and focus group feedback for direction.

And there’s little doubt that what consumers want now is choice.

“You’ve got to have offerings that give (customers) the things they are looking for from a taste standpoint, but also if they are looking to balance off some of their (calorie) intake,” Betts said.

David Ian Gray, a retail consultant with the firm DIG360 in Vancouver, said it makes good business sense for quick-service restaurants such as Mcdonald’s to keep up with the health and wellness mega trend that is driving the smoothie popularity.

“It’s a case of location convenience,” Gray said. “The idea is, and I think Starbucks is going through this, too, you don’t want someone to get three items that they want to consume quickly from three different stops. You want them to allow them to get all their needs in one place, as long as it is within your brand portfolio.”

In November, Starbucks Corp. expanded into the juicebar business with the purchase of Evolution Fresh for $30 million. It opened its first Evolution Fresh store in Bellevue, Wash., earlier this month.

Starbucks said it has “no plans at this time” to expand Evolution Fresh into Canada.

Betts said Mcdonald’s has no immediate plans to follow Starbucks into the juice-bar market. Mckay was less firm on Tim Hortons’ intentions, saying, “We are looking at all the same trends that our competitors are looking at.”