Silicon Valley Has a Cold-Pressed Juicing Scandal


Behold the Juicero. It is sleek, internet-connected, built like a tank, uses custom bags of chopped produce, applies four tons of pressure, and makes the world’s trendiest cold-pressed juice:

But wait. Bloomberg reports that there’s a dark side to the Juicero. Well, another dark side, anyway:

After the product hit the market, some investors were surprised to discover a much cheaper alternative: You can squeeze the Juicero bags with your bare hands. Two backers said the final device was bulkier than what was originally pitched and that they were puzzled to find that customers could achieve similar results without it. Bloomberg performed its own press test, pitting a Juicero machine against a reporter’s grip….In Bloomberg’s squeeze tests, hands did the job quicker, but the device was slightly more thorough. Reporters were able to wring 7.5 ounces of juice in a minute and a half. The machine yielded 8 ounces in about two minutes.

Hmmm. Tell me more about these reporters. Men? Women? Weakling nerds? Folks who hit the gym a lot? How much juice could I get from a Juicero bag? In any case, investors are upset:

After the product’s introduction last year, at least two Juicero investors were taken aback after finding the packs could be squeezed by hand. They also said the machine was much bigger than what Evans had proposed. One of the investors said they were frustrated with how the company didn’t deliver on the original pitch and that their venture firm wouldn’t have met with Evans if he were hawking bags of juice that didn’t require high-priced hardware. Juicero didn’t broadly disclose to investors or employees that packs can be hand squeezed, said four people with knowledge of the matter.

Oh come on. Juicero was recently forced to cut the price of its press from $699 to $399, so it probably isn’t even much of a moneymaker. The bags, on the other hand, are highway robbery at $5-7 each. At a guess, the gross margin on the press is around 50 percent at best, but the gross margin on the juice bags is probably 90 percent or more. If Juicero can sell the bags without the juicer—and maybe tout hand squeezing as a good workout regimen while they’re at it—they probably clear a thousand dollars per year. Maybe more. The press doesn’t add much to that, even if it is 802.11b/g/n compatible and notifies you when your juice packs are about to expire.

The hardware is only necessary for two reasons. First, people are lazy and don’t want to squeeze their own bags. Second, it makes everything high tech and cool. Regardless, differential pricing is a proven moneymaker, and now Juicero can sell its bags to cheapskates. There’s always been more money in the blades than the shaver.

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

Share your feedback: We’re planning to launch a new version of the comments section. Help us test it.