Smaller-size drinks, low-carbohydrate concoctions and "nutritional boosts" are hot topics in the smoothie and juice-bar market as operators look to capture new customers and diversify themselves in an increasingly crowded marketplace, industry observers say.

Although market leaders Orange Julius, Jamba Juice and Smoothie King dominate market share, such smaller chains as Planet Smoothie and Robeks Fruit Smoothies & Healthy Eats are growing at a healthy clip, according to Chino Hills, Calif.-based Juice and Smoothie Association, a division of the marketing and publishing firm Juice Gallery Multimedia. More than 3,400 smoothie and juice bars are operating in the United States, and that number is growing every day, the association reports.

Revenues in the smoothie and juice bar market were up in 2003 nearly 17 percent, rising to $887.2 million from about $758.8 million in 2002, says Dan Titus, president of Juice Gallery Multimedia.

Smoothie King, a 325-unit chain based in Kenner, La., was one of the first smoothie shops to offer a low-carbohydrate, high-protein line of drinks. A 20-ounce version of the line's drinks, which debuted in November, includes 225 calories, including 6 grams of carbohydrates, 6 grams of fat and 35 grams of protein. The new smoothie line comes in strawberry, chocolate, vanilla and banana flavors, which sell for $4.25 for 20 ounces, $5.75 for 32 ounces and $7.99 for 40 ounces.

"Low-carb has really taken off for us, especially at breakfast," says Stephen Kuhnau, president and chef executive of Smoothie King.

At breakfast we find that people are looking forsmoothies with higher nutrients," adds Rocky Gettys, director of operations for Smoothie King. Popular morning drinks at the chain include Power Punch Plus, a blend of strawberries, banana, soy protein and ice, with added vitamins, minerals and herbs. Coffee smoothies, such as the high-protein Almond Mocha, also are top sellers, Gettys says.

In addition, the apple-cinnamon and blueberry turnover varieties of the chain's stuffed breadsticks frequently are purchased in tandem with a breakfast smoothie, according to Gettys.

Breakfast and lunch are the busiest dayparts at Smoothie King, he reports. "Our stores typically do 15 percent to 18 percent of their sales between 7 a.m. and 10 a.m.," Gettys says. For units near schools, late afternoon sales also are strong, he adds.

Touted as a "healthier alternative to pizza or a burger and fries," according to Kuhnau, Smoothie King has gained permission to operate inside some high schools. A handful of schools around the country allow Smoothie King franchisees to sell products during breakfast and lunch in their cafeterias, while other schools permit delivery. At James Martin High School in Arlington, Texas, Smoothie King franchisee Rhonda Smith delivers smoothies directly to classrooms, making several trips per day from her Smoothie King shop, which is located 1 mile from the school.

"These are high school students," Smith says. "I think the majority of them go to school without having any breakfast.

"You can't get your body and brain going without something in your system," she notes. "You need fruit and protein the first thing in the morning."

Another chain, the 140-unit Planet Smoothie, a subsidiary of Atlanta-based Raving Brands, also encourages customers to consider its smoothies as a high-energy meal-replacement and dieting tool.

"We believe when it comes down to it, the simple secret to weight management is to burn more than you take in," says Chris Morocco, chief marketing officer for Planet Smoothie. "Consumers need fast, convenient, healthier options that have staying power, that take into consideration the smart management of carbs, sugar, calories and fat--that is what our smoothies offer."

As a response to the growing demand for low-carbohydrate options, Planet Smoothie recently introduced a new line of high-protein, low-carbohydrate shakes in five flavors: grape, cherry, pineapple, pina colada and chocolate. The shakes have 150 calories, 5 grams of net carbohydrates, 2 grams of fat and 25 grams of protein, according to the company.

In addition, Planet Smoothie offers low-fat, low-sugar and low-calorie smoothies. "Our goal is to offer consumers a balance of options, regardless of whether they are dieting or simply trying to eat smarter," Morocco says.

Best sellers at breakfast are the high-protein meal-replacement smoothies, Morocco says, adding, "People add fruits to it, and it's a breakfast on the go." Energy smoothies containing a "Booster Blast" of ginseng and guarana also are popular items, he says.

Smoothies are popular for breakfast because of portability and nutritional value, according to Morocco, who notes, "People don't want to be weighted down these days with eggs and bacon."

Planet Smoothie is looking to expand its product line later this year, possibly with a breakfast bowl of fruit mixed with granola, Morocco says.

The 54-unit Robeks Fruit Smoothies & Healthy Eats chain echoes the popularity of smoothies as "meal replacement" options. Smoothies are one of the best-selling breakfast items at the Manhattan Beach, Calif.-based chain, which plans to open 70 more units this year across the country, according to the company. Robeks' menu offers fruit smoothies, fresh juices, sandwiches, soups, salads and baked goods.

"People don't really think of a smoothie as a treat," says Phil Mettra, vice president of marketing for Robeks. "They're looking at it as a meal replacement, something substantial that can carry them through the morning or afternoon," he says.

More than 60 percent of customers purchase their smoothies along with another menu selection, such as a shot of wheat grass or a muffin, he says. "Especially considering the whole challenge with obesity, we tell people, 'You can come to Robeks and use our products to help you meet your goals,'" he continues. Robeks smoothies come with a free Robeks Nutritional Boost, which contains vitamins, minerals and herbs "for burning fat, increasing stamina and fighting colds," Mettra says.

Smoothies appear on the menu under five categories: Power Smoothies; Vitality Smoothies; Exotic Offerings; Tropical Smoothies; and Berry Smoothies. Robeks' busiest time for smoothie sales is during lunch and the afternoon, when "you get business people and the after-schoolers," Mettra says.

As for low-carbohydrate menu additions, "we're certainly investigating options," Mettra says. "But more than that, we're educating our customers that there are good carbs and bad carbs, with fruit being a good carb."

San Francisco-based Jamba Juice, with 420 units, has responded to customer feedback with a smaller-sized, 16-ounce smoothie.

"Our No. 1 request from customers was a lower-calorie smoothie option to fit their lifestyles," says Rosa Compean, director of product marketing for Jamba Juice. "We listened to them, and we're proud to introduce a great-tasting product with one-third less calories."

The chain also recently introduced Enlightened Smoothies, a line of reduced-calorie, reduced-sugar drinks. The smoothies contain frozen fruit, 100-percent fruit juice and a "dairy base" made from nonfat milk, whey protein and a no-calorie sugar substitute.

Jamba Juice's Strawberry Nirvana Enlightened Smoothie, for example, contains frozen strawberries, an apple-strawberry juice blend, frozen bananas, ice and a dairy base. The chain advertises the product as "a heavenly way to get your B6 fix, which ensures your nervous system's peak performance."

On its regular menu, Jamba Juice's best-selling smoothies during morning hours are, in order of popularity according to company sales data: Strawberries Wild; Orange Dream Machine; and Caribbean Passion.

In addition, 12 percent of customers purchase baked goods with their smoothies at breakfast, which is the fourth busiest daypart, following afternoon, lunch and dinner sales, according to the company.

Orange Julius also has focused on positioning itself as a healthy snack and meal-replacement destination during the past several years, according to Lisa Willems Connelly, director of marketing and brand management for the 450-unit

Orange Julius of America. "Our smoothies provide consumers with several fruit servings, so it's a healthy option for a snack or a meal," Connelly says. Although most Orange Julius stores are located in malls and open at 10 a.m., the late-morning day-part is an important sales period for the chain, she says. "In particular, our smoothies are very appealing to mall employees," Connelly says. "They can pick up a meal and go."

Top-selling morning drinks include Strawberry Xtreme, which contains strawberries and bananas, and Fruitasia, with strawberries, pineapple, banana, tropical fruit juice and orange sherbet.

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