Costreduction by reformulation

The beverage industry is on the move - and for many reasons. Inflation, rising energy costs, higher personnel costs and fluctuating raw material prices are putting companies in this industry under a lot of pressure. But we at AUSTRIA JUICE understand the demands of our customers all too well, especially those who produce beverages with a high fruit juice content. To meet the current challenges, AUSTRIA JUICE has developed an innovative cost-saving process that helps to protect your successful products.

The challenge of rising costs

Costs are rising and this affects us all. Running a thriving beverage business is becoming increasingly challenging as inflation and rising operating costs squeeze profit margins. This means it's getting harder to maintain the financial health of your business.

Preserving cash cows despite declining sales

No one wants their successful products to lose their appeal. Yet skyrocketing production costs can lead to declining sales and lower profitability. But there is another factor that can negatively affect profitability: outdated recipes. This is where our cost-saving process comes in - to raise awareness and help protect your cash cow products.

Outdated recipes: a hidden cost problem

Many beverage producers still use recipes that were developed and launched many years ago. However, these recipes are no longer up to date and there have been numerous factors over the years that have driven up the cost of these outdated recipes. The food industry has evolved and alternative ingredients and manufacturing processes are now available. Unfortunately, many recipes are stuck in the past.

Our specialised cost-saving process

At AUSTRIA JUICE, we have developed a unique process that allows us to evaluate the cost-saving potential for our customers based on selected recipes. Thanks to our decades of experience in product development, we can analyse the ingredients and cost structure of a beverage and thus identify the cost drivers.

Focus on cost drivers

The price drivers can be many and varied, including expensive fruit juice concentrates from fruits such as orange, passion fruit and pineapple, but also high-priced colourings and extracts. But here we have a clear advantage: our backward integration gives us excellent access to raw materials.Our expertise in flavours and extracts also enables us to produce them in-house.This allows us to minimise procurement risks and ensure a constant supply to our customers.

A practical example: 100% multivitamin juice

Let's look at a concrete case to illustrate our approach. Imagine a 100% multivitamin juice, a product with a high juice content. Working with one of our customers, we have managed to reduce production costs by 18% - all while maintaining taste, appearance and quality.

This success story illustrates how innovative approaches and years of product development experience can help reduce product costs without compromising sensory product quality.

Overall, our cost-saving process is designed to address the unique challenges of high-juice beverage manufacturers. By identifying and minimising the factors that drive costs, we enable our customers to increase profitability, protect their cash cow products and remain competitive in an ever-changing industry.

At AUSTRIA JUICE, we are not just a supplier, but your strategic partner for greater cost efficiency and business success. If you're ready to explore how our cost-saving process can optimise your business, contact us today. Together we will take your beverage production to a new level of profitability. 

Conclusion:

Challenges in the beverage industry from rising energy and production costs are putting pressure on the industry, but Austria Juice offers ways to reduce the cost structure of products and ingredients while maintaining quality. By analysing outdated recipes and adapting alternative ingredients, profitability can be positively influenced. AUSTRIA JUICE shows that it is worthwhile to analyse the status quo of recipe and procurement of raw materials in fruit juice beverages in order to discover potential cost savings.