Growth of Nutritional Supplements and Superfood Brand Across EU and UK Markets Since Inception
Founded in 2016, this well-established brand is a leader in the nutritional supplements space in the European market. It specializes in providing high-quality vitamins, supplements, and health & wellness consumable products through the Amazon platform in the EU and UK. With a wide range of subcategories, including vitamins, probiotics, collagen, protein powders, omega fish oils, and superfoods like Manuka honey and matcha tea, the brand has gained a strong presence and favorable terms with suppliers. It has experienced consistent monthly growth since inception and offers immense scaling opportunities.
OPERATIONS
The company operates primarily through the Amazon platform in the EU and UK markets. It has established favorable terms with high-quality suppliers, ensuring a steady supply of products. The operations require minimal maintenance and experience, with the current owners working only 10-15 hours per week. Daily tasks include overseeing virtual assistants, limited customer service, and basic financial analysis. All inventory is stored at Fulfilled by Amazon (FBA) facilities, eliminating the need for warehousing and associated expenses.
The company has established favorable terms with high-quality suppliers, ensuring a steady supply of products. All inventory is stored at Fulfilled by Amazon (FBA) facilities, eliminating the need for warehousing and associated expenses. The logistics are efficiently managed by Amazon’s fulfillment services.
MARKETING AND KEY METRICS
The company’s main marketing channel is Amazon, leveraging the platform’s vast customer base and state-of-the-art marketing tools. By optimizing ad campaigns and reducing ad spend to just 6% of sales, the company has significantly increased margins while driving sales growth. There are also untapped opportunities for expansion into the North American market.
The company’s main sales channel is Amazon, which offers immense growth opportunities, especially in the North American market where the company currently does zero business. By leveraging the brand’s presence and reputation in the European market, a buyer can easily expand into the US market and capitalize on the untapped potential.
The company has achieved TTM sales through March 2020 of over £1.27 million, with earnings of £245,000 (net of VAT expenses of approximately £100,000). Sales in Q1 of 2020 alone saw a 60% increase compared to the prior year. The company’s valuation is based on TTM with a partial forecast through August 2020.
The company has built a loyal customer base in the European market through its presence on the Amazon platform. It caters to health-conscious consumers seeking high-quality vitamins, supplements, and health & wellness consumable products. By expanding into the US market, the company can tap into a new customer base and further grow its reach.
BUSINESS MODEL & RESOURCES NEEDED
The company operates with a lean team, with the current owners working just 10-15 hours per week. They oversee virtual assistants who handle daily operations, limited customer service, and basic financial analysis. The lean structure allows for scalability without significant increases in human resource requirements.
THE INDUSTRY
The company operates in the health and wellness industry, specifically in the nutritional supplements space. This industry has experienced significant growth in recent years, driven by increasing consumer awareness and demand for health-conscious products. Examples of competitors in this industry include well-known brands like Garden of Life, Optimum Nutrition, and Nature’s Bounty.
OPPORTUNITIES TO SCALE
There are various scale opportunities available for this brand. One potential opportunity is expanding into the US market, leveraging the brand’s existing US trademarks, Amazon US brand registry, and FDA registration. The company has already planned product launches in the US, scheduled for May/June 2020. Additionally, there is room for growth within the European market, as well as the potential to introduce new product lines and expand the customer base.
Asking Price: $1,700,000
Gross Income: $1,956,000
Cash Flow: $445,670
Year Established: 2016
Employees: 2
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