Exploring the Subscription Box Service for a Healthy Keto Diet with 20,630 Subscribers
This thriving Subscription Box Service provides a huge selection of Keto Dietary Snacks in prepared packages, delivered on full subscription directly to consumers homes and offices. The company has achieved sales of $7M in 2020 and is on trend for $9M this year – all recurring and membership revenue.
OPERATIONS
The brand markets snacks that fit into the concept of Ketogenic, a term for a low-carb diet that provides more calories from protein and fat and less from carbohydrates. The company possesses an enormous database of audience profiles and preferences that allows a scientific and highly accurate approach to predicting winners and losers in upcoming product selection.
The company utilizes a highly efficient 3PL model to handle all kitting requirements and has been working with the same 3PL for nearly four years.
MARKETING AND KEY METRICS
The company utilizes PPC ads targeting the Keto community, organic traffic through social media accounts with 130,000+ Instagram followers and 56,900+ Facebook followers, an influencer program, and an affiliates program. They also use email marketing campaigns, including discount offers during November for Black Friday and Cyber Monday.
95% of sales are from subscriptions, while 5% are generated from the online marketplace. Currently, products are sold only on their website and not on other eCommerce sites.
The company has subscriptions of 20,600+ and a growing online marketplace for Keto snacks. They have a 90% year-over-year growth rate in 2020, along with 130,000+ Instagram followers and a 170,000+ email database along with 57,000 Facebook followers.
About 80% of their customer base is made up of women between the ages of 24 and 45. The boxes are appealing to customers who are struggling with weight issues and looking to replace their carb-heavy snacks with Keto alternatives.
BUSINESS MODEL & RESOURCES NEEDED
The company has seven full-time employees, including a director of operations, logistics lead, customer service lead, operations assistant, brand manager, social media and community manager, and marketing assistant.
THE INDUSTRY
The Global Snack Food Market is valued at $427 billion in 2020, with the Global Ketogenic Diet Market valued at $9.57 billion. The rising prevalence of obesity among both millennials and working-class people is fueling demand for healthy/diet products.
OPPORTUNITIES TO SCALE
The company can open up the online marketplace to the public, expand by offering digital marketing services to brands on their website, and launch digital products such as recipe books and diet plans. The brand also has potential for market expansion and acquisition of snack product brands.
Asking Price: $8,500,000
Gross Income: $9,138,824
Cash Flow: $1,475,004
Year Established: 2015
Employees: 8
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