Gluten-Free and Nut-Free Ecommerce Brand With 27% Repeat Customer Rate and In-House Co-Packing
The company is a high-growth eCommerce and B2B retailer that sells an array of healthy, gluten-free, and nut-free powdered ingredients for home bakers and fresh gluten-free baked products wholesale to restaurants, food service, and natural food grocery stores. The company has three well-known brands in this space and has a massive amount of expansion potential both on and offline. The raw ingredients are sourced from US-based distributors in conjunction with overseas manufacturers and all products are co-packed 100% in-house. The business has been in operation for 10 years and has an attractive 27% repeat customer rate. The company is optimized for profitability, showing an impressive 26% net margins, and an ability to control the cost of goods better due to packing all goods in-house.
OPERATIONS
The company operates an eCommerce side that sells its array of healthy, gluten-free, and nut-free powdered ingredients and B2B wholesale for fresh gluten-free baked products. All storage and shipping are handled in-house, 100% of the facility is gluten-free, and all raw ingredients are sourced from US-based distributors in conjunction with overseas manufacturers. The company performs its own co-packing in-house. The company’s employees ensure stability through scale, running between 15-25 part-time production employees at any given time.
All raw ingredients are sourced from US-based distributors in conjunction with overseas manufacturers, and all products are co-packed 100% in-house. The company performs its own co-packing in-house, ensuring a 100% gluten-free facility, and all storage and shipping are also handled in-house.
MARKETING AND KEY METRICS
The company has invested significantly in online retail sales on Amazon.com (FBA & FBM) and has a high growth potential on and off-line. The company uses Fulfilled by Amazon (FBA) for most of its online delivery of goods, which allows them to deliver to consumers via 1 and 2-day shipping, via Amazon Prime. The company’s superb products provide proof of concept and prove its “sticky factor” associated with customer retention. The company has tens of thousands of reviews.
The company’s primary sales channels include its eCommerce side and B2B wholesale. The eCommerce side sells an array of healthy, gluten-free and nut-free powdered ingredients for the home baker in starter and bulk package sizes. The B2B side sells gluten-free fresh-baked products wholesale to restaurants, food service, and natural food grocery stores. The company also has massive potential for expansion both on and offline.
The company reports an attractive 27% repeat customer rate and has an impressive 26% net margin. With three well-known brands, a gluten-free facility, and its own in-house co-packing facility, the company is set up for explosive growth. The global gluten-free products market size was estimated at USD 21.61 billion in 2019 and is expected to expand at a CAGR of 9.2% during the forecast period of 2020 to 2027, providing plenty of room for the company to scale.
The company caters to the gluten-free and nut-free customer, although it currently sells its array of healthy, gluten-free, and nut-free powdered ingredients to home bakers generally. Its B2B side generates sales from fresh gluten-free baked products wholesaled to restaurants, food service, and natural food grocery stores.
BUSINESS MODEL & RESOURCES NEEDED
The company has been in operation for 10 years and has between 15-25 part-time production employees at any given time. The employees ensure stability through scale, and the company has invested significantly in them to ensure they have the experience and background to help take the business to the next level.
THE INDUSTRY
The company operates in the gluten-free products market, which was estimated at USD 21.61 billion in 2019 and is expected to expand at a CAGR of 9.2% during the forecast period of 2020 to 2027. The company has three well-known brands in this space, providing proof of concept and proving its “sticky factor” associated with customer retention. The company’s optimized profitability ensures an impressive 26% net margin, making it an attractive business in the gluten-free products market. The popularity of gluten & nut-free products is on the rise in grocery stores and restaurants.
OPPORTUNITIES TO SCALE
The company is only scratching the surface of scale, with only a small portion of its overall sales on the B2B side of the house. The company’s online sales mostly occur on Amazon.com, providing opportunities to expand into retail shelves, other online marketplaces, and internationally using the power of Amazon FBA. Additionally, the company has room for expansion through website traffic development. The company’s optimized profitability ensures an impressive 26% net margin and will help with its scaling opportunities.
Asking Price: $8,100,000
Gross Income: $6,331,299
Cash Flow: $1,632,833
Year Established: 2010
Employees: 20
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