Unit 9

New business
Start-up Pop-up
 START-UPS WITH POP-UPS
In 1999 three friends saw a gap in the drinks market.
They spent six months and £500 developing fruit
smoothies and then they sold their drinks from a pop-
up stall at a weekend music festival. Above the stall
was a sign which said: «Should we give up our jobs to
make these smoothies?» and people were asked to
throw their empty cups into bins marked «Yes» or
«No». «Yes» won and the Innocent brand was born.
The story of Innocent drinks is one that brings hope to
all would-be entrepreneurs. The three founders saw
an immediate return on their investment in a pop-up,
and the business now turns over £100 million a year
and the company employs 275 people. It was taken
over by Coca-Cola in 2013, which has at least a 90%
share. As for the three original founders, they still own
part of Innocent and have set up an investment fund
called «Jam Jar Investments» to give financial backing
to new businesses. It’s all a long way from that pop-up
at the music festival.
A pop-up is defined as anything from a burger van to a
market stall that serves as a temporary outlet.
Companies like Innocent have proved that pop-ups can
form part of a serious business model and a recent UK
study found that many entrepreneurs now include
pop-ups as part of their marketing strategy. Launching
a pop-up store is a cheap way to test the market and it
can also generate quick sales to help with start-up
capital without necessarily relying on investment from
a venture capitalist.
Typically, pop-ups should be located anywhere with
crowds such as at football matches or rock concerts.
Another option is to rent an empty shop for a few
weeks on a high street. Pop-up stores are proving
especially popular with online businesses because it’s
an effective way to meet new customers face-to-face.
Collecting their details allows a start-up to email
afterwards with news about the products and - of
course - invite customers to the next pop-up.