Website Closers® presents a unique opportunity to purchase a brand in the Nutritional Supplements space that has been in operation for over 25 years. Over the years, the company that owns this brand has worked tirelessly to develop flavors and exclusive formulas for its supplements, which are presented to the consumer in Liquid Form. Since liquid supplements are absorbed into the body at a rate of around 96%, versus roughly 18% for pill and capsule form, consumers are more interested in this product compared to the traditional pill form.
The issue for other liquid supplements brands has always been flavor. Many consumers understand the absorbative benefit in drinking their vitamins, minerals and antioxidants, but oftentimes cannot take the bad taste that is oftentimes present with other brands’ formulas. This company has resolved that problem and created formulas that cannot be copied by others, especially since they also own the manufacturing plant that makes all their products. With complete control of manufacturing, inventory management, and formula development, the company has withstood the test of time and become a leader on the Amazon platform for this subcategory.
This is proven by the company’s 50% Repeat Order Rate – an astounding achievement for any brand even in the consumable supplements space.
The niche market in which this brand operates reached a value of $42 billion in 2022, with projections signaling significant growth. Experts anticipate an 8% CAGR, reaching an estimated $93 billion by 2030. Several factors drive this growth, including heightened health awareness, fitness trends, and the prevalence of nutritional deficiencies.
KPIs
Liquid supplements thrive in a competitive overall supplement landscape with limited rivals. The intricate manufacturing process, which this company owns and operates, and the challenge of perfecting taste, create hurdles for potential competitors, paving the way for this brand’s success. This is a huge defensive moat that cannot be overlooked by potential suitors.
As noted, the business has its own manufacturing facility. While the manufacturing arm isn’t up for sale as part of this transaction (since it also provides products for other brands), it presents considerable advantages to a potential buyer, who will receive best in class, guaranteed pricing, have the option to develop new products at super low upfront costs, and control their own destiny as it relates to inventory management. Upon acquisition, the new owner will gain control over the process, ensuring product quality and stability. Furthermore, agreed-upon product costs remain steady, guarding against unexpected price fluctuations.
Over time, management has accumulated invaluable assets like videos, testimonials, and marketing materials that can be used to more fully develop the company’s growth plan. These resources offer a platform for expanding the brand, setting the stage for significant growth.
Revenue Generation
The company embarked on its journey many years ago and has adapted consistently and shrewdly, now successfully selling products on Amazon and through a Shopify-built website. Their range encompasses diverse multivitamins and supplements targeting various health concerns, such as bone strength, weight loss, vision, brain function, and hair, skin, and nail health.
They boast a portfolio of 28 popular SKUs that are exclusively branded. Achieving an average order value of $65 across the range, no single product dominates sales. Top performers include multivitamins tailored for children, women, and men.
Sales maintain strength year-round, experiencing a spike around the New Year due to health-focused resolutions. The typical customer is a woman aged 40 or older who often orders multiple products to meet her family’s wellness needs.
While the website drives strong sales, Amazon generates 70% of revenue. Factors like efficient shipping through FBA and maintaining three months’ inventory contribute to this robust presence.
The brand’s success on Amazon is bolstered by highly positive customer reviews, fostering authenticity among potential buyers. Besides direct-to-consumer sales, approximately 10% of revenue comes from major retail distributors, a segment with promising growth due to the expanding health and beauty sectors.
Advertising & Acquisition
Marketing plays a pivotal role, which is evident from the over 16,000 unique monthly visitors to the website. Ads on platforms like Facebook, Instagram, and Google complement this organic traffic.
Investment in SEO, emphasizing backlinks and a keyword-focused blog, enhances search engine rankings and website traffic. Leveraging an email database of over 60,000 subscribers aids in product promotion, and an active social media presence fosters a loyal customer community.
Efficient daily operations managed by an experienced team, including a full-time Amazon manager and two in-house sales managers, form a significant benefit for potential buyers. The current owners focus primarily on inventory management and overseeing the proficient team.
This is a unique opportunity to invest in a well-established eCommerce brand in a thriving niche—the minimal competition, manufacturing control, and influential marketing position it for future accomplishment.
The sellers are open to a flexible transaction structure, aiming to retain between 20% and 30% equity. This demonstrates their belief in the business and commitment to exponential growth with strategic partners. Their ownership of the manufacturing arm ensures continued involvement, guaranteeing smooth operations, stable pricing, and efficient order processing.
