WebsiteClosers® presents a 14-year CPG Company in the Health & Wellness Category. The company operates under 2 brands, one that is focused on B2B Wholesale Customers and one that is focused on DTC eCommerce Sales. The core focus for these brands is a Unique line of Weight Loss & Detox Solutions. And the effectiveness of these products in the eyes of the consumer has proven itself over and over again given the 50% Repeat Purchase Rate the company achieves across the array.
Their product roster is made up of proprietary, all-natural, hormone-free products, tapping into an industry that has thrived as customers grow more concerned about keeping healthy while being reluctant to take expensive injectable prescription medicines now on the market that haven’t been in use for a long period of time to determine side effects and long-term effectiveness.
Both brands offer useful and highly detailed support materials that assist customers in their weight loss journeys, such as a protocol book, a journal, and a recipe book. The first brand also offers complimentary coaching calls, but the details put into their materials have meant that few need to take advantage of this service.
Business Broker Takeaways
1. Quality Products. The company contracts with a US-based lab to produce their products, which use original formulas under private labels. These products are made specifically and only for them and are popular among women between the ages of 40 and 65. These women prefer effective and natural weight loss solutions as opposed to those that use drugs and/or added chemicals, and, as such, turn to this business for their needs.
The company’s products, while helpful for immediate weight loss, are also beneficial for long-term weight management through metabolic reset, adding to their appeal. They have an Average Order Value (AOV) of $187 through their D2C storefront, a $650 AOV through their B2B channel, and a highly enthusiastic consumer base that has driven their Repeat Customer Rate of 50%.
2. Turnkey Operations. The company boasts low-maintenance operations that require only 2 part-time employees to manage. The first worker handles all packaging, most email and coaching call support, and inventory reporting. The second is responsible for lesioning with the digital marketing company the brand works with, overseeing media content, and creating and designing all printed material, among a few other tasks.
The company houses and ships 100% of their inventory from a domestic warehouse, in which they stock at least 3 months’ supply of stock. They fulfill orders daily for timely delivery. The polished structure of their operations and inventory management has left current ownership with a workload of about 20 hours, which they spend on administrative work, bookkeeping, and accounting.
3. Multiple Marketing Methods. The company draws attention to their products through several channels. They work with a digital marketing company to create and manage their Meta, Google, and Microsoft PPC ads, leading to a RoAS between 3.68 to 23.34 depending on platform. The company also occasionally creates blogs that are posted on their site and pushed to current customers through email newsletters and social media.
The bulk of their advertising efforts are done through email marketing. Their 11,000+ subscribers are sorted into various lists to receive automated email flows, weekly newsletters, and sales promotional emails. This list is also used for upselling purposes, which adds to their strong Repeat Customer Rate.
Scale Opportunities
The company’s D2C brand has recently gone through a rebrand, with the B2B brand soon to follow. This move has put the business in an excellent position to scale with the right buyer at the helm. The new owner could expand both brands’ offerings by expanding into new and existing product categories, which would let the company target more of their customers’ weight loss needs.
From there, the company could make their products accessible to a wider audience and further diversify their revenue by pushing their D2C products into big box stores. Whole Foods and Costco would be promising options for this move, and the company has already had bigger reps contact them for partnerships in the last year.
Another tactic a buyer could take would be to improve the company’s marketing campaign. They could increase their ad spend of their current online marketing for their D2C brand, and conduct clinical studies for both brands to gain new marketing material.
From there, they could begin advertising the listed products on their Amazon storefront, utilize radio marketing and SEO opportunities, and conduct B2B marketing to extend their products into med spas and other healthcare settings.
Conclusion
This acquisition has built a healthy reputation for themselves in the nearly 15 years since their launch. Their proprietary products have won over a loyal consumer base among individual customers and healthcare providers alike, and their recent revitalization offers a great opportunity for a D2C/B2B savvy buyer to scale from.
This Company is Represented by:
WebsiteClosers.com
Technology, Internet & eCommerce Business Brokers
WC 3501