At the factory of Suja Life, a 100,000 square-foot area in the outskirts of San Diego, on an average 1.5 mn bottles are produced conveyor belts weekly. These bottles have colorful labels that boast cold-pressed juices containing ingredients like kale and monkfruit.
Since starting couple of year ago, huge investment of USD 30 million has been done. At present around 95 drinks are sold from here which include from drinking vinegar to Kombucha. The company can develop a new product type and deliver it to customers within a period of eight week. Due to this Suja has been successful to develop 250 products in a period of 6 years, producing 15 different styles every day. Last year Suja hit USD 100 million in revenue and had gross margins of 40%. The same has grown by three times in last 4 years and topped by USD 40 million.
Suja Life main supporter is Coca-Cola, which worked with Goldman Sachs in the year of 2015 to purchase a 50% stake. Coke invested USD 11 million and grew its stake by another 3%, two years later. This was due to study done which was concluded as more than 28 million households are attracted towards organic cold pressed juice, and are looking for ways to identify it. At present Suja’s is consumed by three and a half million families.
Suja launched 21 new products, last year that included products like energy juices containing 100 milligrams of caffeine (naturally derived) ingredients like guayusa and coffeeberry tea. Some of the basic ingredients like turmeric, echinacea, ginger, and similar probiotics have helped Suja become the world leader. Among its various products, immunity leads the sales chart and is likely to precede the sales of Uber Greens juice. Some other flavors are digestion and energy and another one expects to be launch soon.
In the year of 2019, the company expects to launch another 21 products. The organization buys produce directly from local farmers, hence reducing its costs of raw material by around 50%. The inventory is low and only manufactures to each order thus further reducing the cost.
As far as the option of acquisition by Coke goes, company representatives have said: “They’ve been great. They follow through on investments that were unanticipated, which is really the test of a good partner—that they’re willing to step up. If we both ultimately want to be together, then we’ll be together. If we don’t, then it won’t. I’m enthusiastic about the options and opportunities that we have with Coke and without Coke.”