Last week Frutura, the global sales and marketing network, signed a licensing agreement with The Coca-Cola Company.
This represents the first time The Coca-Cola Company has licensed one of its brands for use in the fresh produce category. The agreement allows Frutura to use Minute Maid and Simply brands, which will be packed and shipped by Frutura’s Dayka & Hackett LLC BB #:189566.
In an April 19 interview, Frutura CEO David Krause said for now, Simply Select will be used on D&H fresh citrus in the U.S.; Minute Maid will be used on D&H grapes in the U.S.; and Minute Maid will be used on D&H fresh citrus and grapes in Japan.
Krause said the process of designing labels has begun, and they should appear in retail in this quarter or early third quarter.
He said the plan for now is limited consumer marketing and more heavy investment in trade marketing, but he did not rule out consumer marketing in the future or investments from Coca-Cola in marketing, since it has considerably more marketing dollars than any produce company.
“Coke wants to be in front of consumers at more eating occasions,” Krause said. “For Frutura, we considered building [a consumer brand] from scratch versus building one through trade brands. This arrangement allows us a consumer brand that’s well known.”
Considering Frutura is a young company, Krause said it’s exciting and a validation of the business that Coca-Cola undertook this investment.
“Working with the Coca-Cola folks was amazing with their marketing experience,” he said.
Krause said the Simply and Minute Maid brands will be used for Dayka & Hackett’s premium quality citrus and grapes, respectively.
He added that the agreement allows Frutura to use both brands on both commodities in the future.
He said retail demand has been strong so far and he’s optimistic that it will grow.