Bumper payday for trio of Cambridge graduates who founded ethical smoothie maker after Coca-Cola snaps up firm for a fruity £100m

Coca-Cola has taken over Innocent after the ethical smoothie maker's young founders decided to sell up their remaining stakes for a dizzying £100million, according to reports.
The fizzy drinks empire, which already owned 58 per cent of Innocent, snapped up the shareholdings of founders Richard Reed, Adam Balon and John Wright in a deal that gives Coca Cola at least 90 per cent ownership and values Innocent in the region of £320million.
The brand’s creators - Cambridge graduates who first sold their smoothies 15 years ago from a music festival stall - will give up day-to-day management responsibilities in May, but they will remain on the executive committee and insisted the brand's ethic would not be compromised by the takeover.

Cashing in: Innocent founders (l-r) Richard Reed, Adam Balon and John Wright have sold their remaining stakes to Coca-Cola for a reported £100million

Rapid expansion: The three Cambridge graduates, pictured in 1999, first sold their smoothies 15 years ago from a music festival stall

Innocent was founded in 1998 to capitalise on the growing market for healthy drinks and smoothies.
Mr Reed, 36, Adam Balon, 37, and Jon Wright, 36, who had all been friends at Cambridge, initially bought £500 of fruit to make smoothies at the Jazz on the Green festival in Parsons Green, south-west London.

 

Customers told them the drinks were so good they should leave their jobs in management consultancy and advertising to set up Innocent.
By 2007, Innocent had cornered the smoothie market and made a profit of £8million, but a year later provoked controversy after selling an 18 per cent stake to Coca-Cola for £30million.
In 2010, Coca Cola bought out original backer Maurice Pinto and his friend Jules Hydleman, who first invested £250,000 into the business, paying another £65million to increase its ownership to 58 per cent.

Not so innocent now: Coca-Cola has increased its stake in the smoothie maker from 58 per cent to more than 90 per cent

One pot at a time: Innocent first launched its healthy veg pot range in September 2008

Stay smooth: Innocent is most famous for its range of fruit smoothies but in more recent years it has branched out to launch a juice and healthy veg ready meal range.

Neither firm has disclosed the exact valuation of the deal announced by Coca-Cola today,

Innocent has doubled its sales to £209million since first striking a deal with Coca-Cola and a report in the Financial Times last week claimed that Innocent is now worth £100million.
In anticipation of a backlash from those who value the Innocent image and reputation, co-founder Richard Reed, said: ‘Innocent has flourished since our deal with Coca-Cola four years ago.
'They have been hugely supportive of our mission of getting natural, healthy foods to more people and have been 100 per cent committed to protecting our brand and the values it stands for.' 

 

'Given the success of the relationship, they will be increasing their investment, supporting even more innovation and international expansion.
'Importantly for us, the business will be run by a home-grown innocent team in the same unique innocent way, with the founders remaining involved to support the business in the years ahead.’

Food for thought: Innocent joins a list of companies founded on ethical principles which have sold out to global corporations, including Ben & Jerry's (left) and Green & Blacks (right)

Innocent launched thirteen years ago to sell natural healthy products and has grown to stock products in 15 countries and employs 250 people across Europe.

The firm is most famous of its range of fruit smoothies but in more recent years it has launched successful juice and healthy vegetable ready meal lines.
Richard Reed said that Innocent would continue to be run by its own team as well as James Quincey, who already runs the Coca-Cola business in Europe.
James Quincey said: ‘Our relationship with innocent continues to flourish and our investment has fuelled the business’s expansion.
'We remain confident in the long-term growth potential of the company and the team and consider the brand values as fundamental to continued success.
'We are excited about the future and getting innocent’s products to more people in more countries with the valuable input and continued support of the founders.’
Innocent joins a list of companies founded on ethical principles which have sold out to global corporations, including Ben & Jerry’s, The Body Shop and Green & Blacks.