Nestlé has joined forces with Australian juice business Boost Juice Bars to create a new smoothie brand to take on Innocent, The Grocer can reveal.

The partnership with Boost Juice Bars, which has more than 200 stores globally including eight in the UK, will initially focus on smoothies "boosted" with functional ingredients, backed by a £5m spend. They will launch into Asda and Sainsbury's at the end of the month.

It will then extend the Boost Juice Bars brand to other all-natural health categories, which could include juices, yoghurt and ice-cream - products already sold in its Australian bars. It is also considering tapping into the kids' and on-the-go markets.

It is the first range from Nestle's new business unit in France, which was opened last year to drive opportunities in health and wellness.

"Boost Juice Bars has been two years in the making and is our major strategic launch. It will be our number-one focus for a good few years," said Jon Walsh, MD of new business at Nestlé UK.

While priced at £2.49 for 750ml compared with Innocent's £3 per litre, founder Janine Allis said its point of difference was its main focus on functional ingredients. "The 'boosted' smoothies and juices sector will be a particularly fast-growing part of the market."

The drinks, which are available in 250ml and 750ml, come in energy-boosting Mango Mania, with ginseng and guarana; immunity-boosting Berry Blitz, with vitamin C and a dairy-free probiotic; mind-boosting Smashin' Strawberry with ginseng and guarana; and metabolism-boosting Tropical Twist containing green tea extract.

Planned activity includes TV from June and events and sampling throughout the summer. Walsh said the budget would be increased next year to reflect its commitment. "We plan for it to grow and grow. Innocent has been around for a long time, but we also intend to be big. You don't make a successful brand overnight, but this is unique."

Innocent said it would welcome the entrant if it planned to grow the category, but had doubts about what it would bring. "I don't see the benefit in a me-too product in an already saturated market," said commercial director Giles Brooks.

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