This target is a 20-year renowned company in the Sports Nutrition & Nutraceutical Supplements Vertical. The 9 historic, sticky brands behind this company grew to 123 stores in 30 States. Shopping for consumables like Nutritional Supplements has changed considerably in the last decade, and so this company is transitioning its focus to online sales channels. The company provides high-quality nutritional supplements in the Sports Nutrition, Weight Loss Management and General Health categories. With over 150 SKUs sold via Amazon and its branded websites, the fast-growing product line offers a wide range of items spanning almost all areas of nutritional and sports supplements.
The majority of the company’s products are internally developed and proprietary. The company has customized solutions for those looking to build muscle, shed weight, balance hormones, etc.
Sports Nutrition represents 60% of revenue – these products are focused on the enthusiast health and fitness customer with products including protein supplements, testosterone supplements, mass gainers, and pre- and post-workout supplements. These products are sold via 5 separate brands.
Weight Loss represents 30% of revenue – both pill and powder-based products focused on helping customers achieve their weight-loss goals through appetite control and increased metabolism. These products are sold via 3 separate brands.
General Health represents 10% of revenue – general health supplements such as multivitamins, immune system boosters, and other health supplements. Sold via 1 brand.
The company formulates its own products and uses contract manufacturers to produce products under the company’s various brand names – allowing them to offer unique and effective formulas that often cannot be found elsewhere. Another value proposition for this business includes the fact that there is very little SKU concentration among the 150 SKUs on the market and a massive 45% average repeat order rate – a very high KPI for this sector.
The company has over 14,000 followers on Instagram and over 58,000 on Facebook. The company’s social presence has not been a focus, but clearly shows the significance of the company’s brands in the social ecosystem that have come organically without much attention. Engaging with brand ambassadors and/or influencers for each of the 9 brands could go a long way to helping to build brand awareness and propelling sales on the company’s various sales channels.
The company currently sells on Amazon as well, but there has not been any significant focus by a professional that has specific experience on the Amazon platform. This would present a massive opportunity for an entrepreneur that has experience exploding brands on the platform. Due to the number of brands owned, as well as the already solid reviews showing on the platform for the company’s various products, this alone is a massive opportunity for growth in the right buyer’s hands. This is a perfect bolt on to a current 3rd Party Seller on the Amazon.com platform. In addition, scaling into international channels using the Amazon FBA platform would be an immediate opportunity for growth. Walmart and other online channels would be great opportunities for immediate growth given the SKU count under management.
Items are priced between $25 – $40 on average with an average order value closer to $50. Approximately 45% of customers are repeat customers, with 20% of these repeat customers subscribed for recurring shipments through an internal ‘Subscribe and Save’ program. Seasonality is very low and there’s very little SKU concentration, and with only 35% of online sales generating on the Amazon platform and the balance on 2 branded company websites, this is a tremendous opportunity to accelerate the sales on the Amazon channel.
The company enjoys a hands-off 100% FBA and 3PL fulfillment platform and industry-leading brand presentation. The business includes a well-coordinated team and ops infrastructure already in place, making this a genuinely turn-key powerhouse with all the boxes checked, nothing lacking. This business can be operated anywhere by nearly any new owner, with a minimum workload asked of ownership to ensure that scale continues to rise. No knowledge of the supplements space is necessary to step in and take the helm thanks to a perfectly crafted platform, and ownership is offering comprehensive transition training to include new product launches already in the pipeline, and more.
With favorable, exclusive supplier terms established, the sky is the limit for this retailer with an array of scale opportunities available, aside from simply turning the key and realizing growth that is already projected with the existing profit center in-motion.
Currently selling all of its products to only the US domestic markets, the company’s 9 brands are ready for expansion to other global markets like Canada, UK, Australia, Europe and APAC markets with the versatility of Amazon. Yet to reach into additional sales channels like eBay and Wal-Mart, this retailer is ready for expansion into these platforms as well as niche-specific sales platforms like iHerb or GNC.com.
A few easy additions for new ownership right out of the gate will be the opportunity to consider franchise relationships and potentially expanding that opportunity, expanding to wholesale outside of the franchise network, launching new products with different flavor variations and packaging sizes, expanding email marketing and social media advertising and creating video ad-campaigns.
There is so much opportunity here – it’s hard to list everything. Please inquire within to learn more.
This Sports Nutrition & Supplements Company Represented by:
Tech & Internet M&A
Listing ID: WC1045