Maximizing Profitability in the Fruit Drink Industry

Input Costs and Financial Returns

In the fruit drinks industry, keeping input costs under control are animportant driver for financial returns. In the last few years, inputcosts have been rising due to the climate emergency and adverseweather patterns, as well as rising transportation costs. Profitabilityis under pressure.To address profitability concerns, the board of directors ofInnocentDrinks(innocentdrinks.co.uk) are considering two proposals fromtheir parent company:Proposal 1 - reduce the fruit content of the productProposal 2 - source a proportion of fruit from non-sustainablesourcesThe board of directors are sure, however, there may be otheroptions.