Creating a value-added product from a ‘value-less’ side-stream
The primary ingredient in beverages made by our Polish start-up customer is distilled water from the production of juice concentrate. By taking advantage of this ‘value-less’ byproduct, they have found a way to make a refreshing new beverage. With a hint of fruit flavour but no added sugar, this water product is both hydrating and healthy. Below we describe how we used the Demand Spaces segmentation model to refine their product concept and create a whole new kind of packaged water.
What a waste!
Says CEO and co-founder, Piotr Lyczko, “Consider the fact that a small juice company generates about 480 tonnes wastewater every day from making concentrates. That’s about 20 truck loads. This water can’t be discharged into the sea or a river, because it has been distilled and contains no minerals, so juice companies have to pay a disposal fee. In a water-scarce world, this makes no sense!”
Where it all began
One evening, Piotr and his two friends and co-founders, Andrzej Plak and Krzysztof Latka, sat down together to consider how this ‘left-over’ water could be transformed into something of value to consumers. “That’s where the idea was born,” he explains, “but it was only the beginning.” Over the next few months, the three entrepreneurs explored how the water could be processed to remove contaminants, how minerals could be added back into it, and finally, how the product range should be packaged and marketed towards a specific consumer group.
It didn’t take long to resolve these questions. A Tetra Pak solution could be used to process the raw water, and a powder containing 80 trace minerals from the Atlantic Ocean could be used to re-mineralise it. The choice of package type was also straightforward for Piotr since, “Carton is a natural material which subliminally strengthens the message of this sustainable product.” Only the marketing questions remained.
Creating a saleable concept
How and to whom should the company market its product range? To help answer this, Tetra Pak organised a workshop in Lund, Sweden during the spring of 2024.
Using the Demand Spaces model and analytical tool, Marketing Services Expert, Omar ElMasri created a profile of the start-up’s target consumer. Says Piotr, “Omar and the team presented us with a number of different parameters to choose from in order to define our ideal audience. They then used our answers to create a very accurate consumer profile. We were really impressed!” The whole group then discussed the key messages, the ideal package, the ideal product, and the exact needs these consumers were looking to fulfil. Out of that, they were able to develop a clear communication platform.
What’s next?
Having defined their product concept, key messages and target groups, the Polish start-up team is now planning to run production trials at Tetra Pak’s Lund Product Development Centre. All being well, they will begin commercial production in time for the next harvest.
Working with Tetra Pak
Piotr and his colleagues are delighted to be collaborating with Tetra Pak: “It feels great to have such a big company on this journey with us. From the very first time we approached Marek Broecker and his colleagues at Tetra Pak, Poland, they showed an interest in exploring how to communicate the unique value of our products, focusing on people who care about sustainability. Not only is it a privilege to work with such skilled professionals, but their steadfast support gives us confidence that we’re going in the right direction.” This feeling was confirmed at the Gulfood trade fair when visitors queued up to talk to representatives from the start-up, and again at Anuga FoodTec when one visitor asked if they’d be interested in exporting their technology to Canada.
Working with Demand Spaces
The Demand Spaces segmentation tool makes it possible for Tetra Pak’s Marketing Services experts to deep dive into questions about target groups and product positioning with customers, in a much more granular way than ever before. According to Omar, it’s ideal for small to medium-sized customers who don’t always have the necessary resources to do such analyses by themselves. He concludes, “Using Demand Spaces, we can really help these types of customers with their business and product development process, providing them with valuable consumer data and analysis.”
