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Vitality Boost enjoys healthy growth

[ 18-11-2013 ]

KUALA LUMPUR: Vitality Boost Sdn Bhd, the master franchisee of Australian Boost Juice Bars in Malaysia and Singapore, is leveraging on its healthy products, which is gaining popularity, to record fast growth in the country.

Its managing director Dr Soraya Rahim Ismail said Boost, which made its debut here in 2009, has 23 stores nationwide (except in Sabah) and the company aims to open another 12 stores, including two in Singapore, by year-end.

Vitality Boost operates 16 Boost Juice Bars while the remaining are run by other franchisees registered under the company, Soraya told Business Times, here, recently.

"We opened our first bar in Kuching in June and next year, we're looking at expanding to Kota Kinabalu, Miri, and a second one in Kuching due to encouraging response," she said.

Soraya said Boost's business in Malaysia has been mirroring those in Australia, where the number of bars doubled every year.

"Boost is massive in Australia. Even after operating for 14 years, they are still registering double-digit growth year-on-year. They have a 95 per cent brand awareness in Australia.

"We have literally doubled our business here every year, from one store in the first year to 23 currently," she added.

On competition, Soraya said Boost does not have a direct competitor in the country as it offers 100 per cent fruit juice- and vegetable juice-based products, unlike others.

"No one else out there sells juices and smoothies like we do. The thing about ours is that it can be a snack, a drink, a meal replacement and a dessert.

"Our close competitors would be the ones in the froyo (frozen yoghurt) space, like Red Mango, Tutti Frutti, Moo Cow and so on, which are mainly desserts. We are more than just dessert," she added.

While product localisation is an important aspect in maximising profits, Soraya said the key ingredients still need to be imported to ensure that the products comply with the standards set by the brand company.

Key ingredients include patented yogurt codenamed TD4 (to-die-for yogurt) and other dairy products developed specially for the brand, which are all imported from the brand's country of origin.

"Localisation is important. Fruits that we can get locally and anything that can be developed locally, we will do it. However, all the main key items still need to be imported," she said.

Soraya said the company offers an all-in capital investment of between RM200,000 and RM300,000 for entrepreneurs looking to buy a Boost Juice Bars franchise.

"With a nine-step application process, and after a three-week training programme, the franchisee can run the business right away," she added.

Boost Juice Bars was founded in Adelaide, Australia, by Janine Allis in 2000 and has nearly 200 sites throughout Australia.

There are more than 250 Boost Juice Bars in over 20 countries, including South Africa, Chile, Estonia, Germany, Kuwait, Hong Kong, Thailand, India, China and Russia, with an annual turnover of more than US$125 million (RM396 million).