low carb and keto foods

Successful Australian Low-Carb Keto Food Brand Boasts 50% Repeat Order Rate and 13,000 Loyalty Members

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This Australian eCommerce brand operates in the low carb and keto foods space in Australia and New Zealand. The company offers a diverse range of products that cater to the rising health consciousness among people globally. Their low-carb and keto-friendly foods have gained popularity for their potential health benefits and weight loss effects. The company has solid fundamentals and is able to withstand economic downturns. With a strong social following and a high repeat order rate, this eCommerce brand has been able to thrive in the industry.

OPERATIONS

The company’s operations involve sourcing products from domestic manufacturers and distributors, as well as importing products from the US via an importing company. They have recently started producing their own range of food items and have launched ready-made meals and desserts. The company invests in targeted marketing strategies, including digital marketing, monthly specials, and promotions on social media. They dispatch an average of 62 orders daily from their warehouse and have stable inventory levels. The owners are actively involved in day-to-day operational responsibilities, including picking and packing orders, inventory management, customer service, and marketing tasks.

The majority of products are sourced from domestic manufacturers and distributors, while a portion is imported from the US. The company maintains inventory levels of around $150,000 and has favorable terms with many suppliers. Orders are placed daily, and the company has built excellent relationships with their suppliers.

MARKETING AND KEY METRICS

The company employs a targeted marketing strategy with a strong focus on digital marketing. They run regular email marketing campaigns and paid Google Ads to promote new products and specials. The website is well-optimized for SEO on Google. The company also offers monthly specials that are displayed in-store and online and are promoted organically and via paid media on social media. Many of these discounts are covered by the company’s vendors.

The company’s sales channels primarily include their eCommerce website and wholesale accounts. There is considerable room for growth in the wholesale channel, as the company currently only serves around 5 wholesale accounts. By locking in distribution deals with major retailers, such as Coles, Woolworths, and Costco, the company can significantly expand its reach and sales.

Key metrics for this eCommerce brand include a 50% repeat order rate, a strong social following, an average order value of $64, over 13,000 loyalty members, and a product catalog of over 1,000 items.

The typical customer of this eCommerce brand is a female between the ages of 25 and 54. The company has over 13,000 loyalty members, indicating a strong customer base that values their products.

BUSINESS MODEL & RESOURCES NEEDED

The two owners of the company jointly manage most day-to-day operational responsibilities, including picking and packing orders, customer service, inventory management, and marketing tasks. Part-time workers also assist with picking and packing orders.

THE INDUSTRY

The low carb and keto foods industry has experienced significant growth in recent years due to the rising health consciousness among consumers. These diets, which emphasize high protein and healthy fats while minimizing carbohydrate consumption, have gained popularity for their potential health benefits and weight loss effects. The market for low carb and keto-friendly foods is diverse and continues to expand as more consumers seek healthier alternatives. Examples of companies in this industry include brands like Quest Nutrition, Perfect Keto, and Atkins.

OPPORTUNITIES TO SCALE

There are several scale opportunities for this eCommerce brand. The first is to expand distribution by locking in deals with major retailers. Additionally, the company is launching an in-house brand of ready-made meals and products, which represents another significant growth opportunity. The owners have also been asked about opening secondary brick-and-mortar stores in other cities, which would further increase sales and profits. Finally, the company could also explore international shipping to capture market share in regions like the US and Asia Pacific.

Asking Price: $515,000
Gross Income: $1,225,431
Cash Flow: $172,195
Year Established: 2018
Employees: 3

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