The encyclopedia · Advertising & PR · Marketing decision · 2013
Naked Juice called itself 'all natural' — the ingredients said otherwise
2013: PepsiCo's Naked Juice paid $9M — its 'all natural' and 'non-GMO' labels covered synthetic fibres and GM soy.
Naked Juice · PepsiCo · 2013-07
What happened
Naked Juice, a PepsiCo-owned smoothie and juice brand, built its image on bottles labelled '100% Juice', 'All Natural' and 'Non-GMO'. The labels were the pitch: a pure, unprocessed drink that charged a premium on that promise.
In Pappas v. Naked Juice Co. of Glendora, a class action filed in California, plaintiffs alleged the products were not all natural and not GMO-free. Testing showed the drinks contained synthetic fibre ingredients such as Fibersol-2, fructooligosaccharides and inulin, and used genetically modified soy. The 'all natural' claim did not survive scrutiny of the ingredient panel next to it.
A settlement reached in July 2013 and finally approved in January 2014 cost Naked Juice $9 million, with class members able to claim refunds of up to $75. The brand also agreed to stop advertising its products as 'all natural' and to have an independent lab verify any 'non-GMO' statements for at least three years.
Why it happened
- The 'all natural' label was the product's premium position, and the ingredients contradicted it.
- Synthetic fibres and GM soy sat under a '100% natural' claim a customer could read on the same bottle.
- The advertising built the whole brand on a word the actual recipe could not support.
The lesson
'All natural' is a claim, not decoration: when the recipe contains synthetic fibre and GM soy, the word on the label is a misrepresentation — and the brand paid for the gap between the two.
Aftermath
Naked Juice stopped using 'all natural' and agreed to independent lab verification of its non-GMO labels for three years, with a dedicated quality-control manager for five.
Sources
- BeverageDaily — PepsiCo brand Naked Juice cuts 'all natural' claim after $9m US payout
- TruthInAdvertising — Naked Juice Class Action
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