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Erewhon’s Designer Smoothies and the Role of Price in Branding
Would you buy a $19 smoothie?
Los Angeles-based specialty grocer Erewhon sells about 40,000 of them a month.
It’s called the Strawberry Glaze Skin Smoothie and was created in partnership with model Hailey Bieber.
While Erewhon only has 10 locations in California, the organic grocery chain has become famous across the country thanks to social media and its cult following of celebrities and health and wellness influencers.
For a small chain, Erewhon is doing big business – $171.4 million in profit in 2023.
Selling Little Luxuries
A $20 smoothie or $26 jar of almonds might not seem like a way to win more consumers, but Erewhon’s price point isn’t a deterrent. It’s the attraction.
On TikTok, #erewhon has 42K videos with many of them following the theme of “trying the most expensive items.”
Cultural analyst Gabriela Serpa Royo puts it best: “Erewhon’s popularity hinges on its affordability – and the irony of saying that about the most expensive supermarket in the world is not lost on me.”
In a world where Millennials and Gen Z are less focused on big purchases – like homes – they’re on the hunt for little luxuries that feed into the “treat yourself” culture and can “feel like an act of self-determination,” as Royo explained.
Erewhon’s mission ties directly into the idea of self-determination through food: “By filling our bodies with the best the earth has to offer, we can become our best selves.” By partnering with celebrities on luxury smoothies, the brand not only gained awareness, but aligned its goals with those of the largest consumer group in the U.S.