The exploding cold-pressed juice market has a formidable new entry.
Since January, beverage giant PepsiCo (PEP) has been quietly testing its first-ever line of cold-pressed juices under its Naked Juice brand on the West Coast, a spokeswoman at the company tells TheStreet. The five flavors -- Bright Greens, Hearty Greens, Lively Carrot, Bold Beet and Cool Pineapple -- are currently available at select Target (TGT) , Costco (COST) , Vons and Safeway (SWY) stores in California, Washington, Nevada, Oregon, Arizona and Colorado.
It's priced at $4.99 for a 12oz bottle. That's almost half the cost of some of the cold-pressed juices found at popular West Coast hot spots like Pressed Juicery or within Hain Celestial's (HAIN) Blueprint line, found at most retailers.
PepsiCo says the juice line will be expanding to the East Coast in April.
Due to high disposable incomes and the propensity of celebs to be seen drinking green juices, the West Coast serves as the unofficial juicing capital of America. So, it's not a surprise PepsiCo launched its test of cold-pressed juices in the region. There was also a strategic consideration at play. The source explains that PepsiCo blends its Naked Juice in California. Over the past two years, it has constructed a cold-pressed manufacturing plant within its Naked Juice plant.
Beverage giant PepsiCo dives into cold-pressed juice market.
PepsiCo enters a market surging as people seek the nutritional benefits of fruits and veggies in an easy-to-consume form. According to First Beverage Group, the super-premium juice category generates approximately $2 billion in revenue, and continues to grow at double-digit rates.
Several other big-name food manufacturers have also gotten more aggressive in the space of late.
Last spring, Campbell's Soup (CPB) debuted a line of cold-pressed juices called "1915" under its Bolthouse Farms brand that it acquired for $1.55 billion in 2012. Coca-Cola (KO) announced a minority stake in Suja last August, which makes a range of cold-pressed juices and probiotic waters. More recently, Starbucks (SBUX) introduced four new flavors of cold-pressed juices within its Evolution Fresh brand, which it purchased back in 2011 for $30 million.