Website Closers® presents a highly profitable Coffee Supply and Accessories provider operating in this tremendously profitable niche space by providing SKUs specifically created for users of home espresso machines, including those sold by Breville, rated as the most user-friendly ones on the market today.
With coffee being a daily habit for more than one billion people around the globe and an estimated 64% of adults in the U.S. consuming at least one coffee daily, the global coffee industry is projected to reach $95.5 billion in 2023. It’s a massive industry to operate in. Estimates are that 79% of Americans make their own coffee at home, and this brand has grossed more than $3.3 million in revenue by filling a significant void within the espresso industry, providing appealing and useful accessories for espresso lovers.
Since its inception, this brand was the first company to specialize in providing accessories to the massive home espresso market, which on a global level is valued at $13.8 billion and projected to continue growing by 6.9%. A buyer who invests in this company will get its exceptional brand trust, devoted following, and recognition within this field. Operating successfully on Amazon, the company has acquired a highly receptive audience for their products and are well established within the lucrative coffee industry. The company is ready for an investor eager to scale this into something significantly larger, and the many growth opportunities available to the company should make this offer even more enticing.
Launched in August 2019, the company has become firmly established for producing aftermarket products for espresso machines, bolstered by the brand’s relationships with long-term suppliers and their emphasis on the popular Breville machines. Their products are designed to improve and simplify the process of using espresso machines, and their designs are done in-house in coordination with an engineer. While many of their SKUs are created to work with specific espresso machines, others offer much wider applications. Many of their products have a patent pending, and new product development remains a continuous process for the brand.
With an Average Order Value of $85, they have grown to 66 SKUs which includes a variety of different colors and size variations. With sales remaining steady throughout the year, the company enjoys its highest sales around the holidays and again during the start of the new year. Today the company has a rising 22% Repeat Customer Rate and they attract plenty of glowing 5 Star reviews.
Their typical customer is between the ages of 25 and 44 and are a must store for espresso enthusiasts. and while sales initially were focused on the U.S., they are starting to enjoy new sales opportunities across Europe and Asia and Australia. With the majority of their sales being done on Amazon, the company uses Fulfillment By Amazon for fast and convenient shipping of the 20-30 orders they receive daily. Amazon now represents 60% of their sales, compared to 40% on their Shopify website.
A buyer inherits a strong digital marketing campaign that can easily be scaled. The brand employs a host of proven content marketing strategies, including PPC ads on Amazon, and a growing influencer marketing campaign.
Social media marketing has been a key tool for them, effectively used to retarget customers who enjoy interacting with the brand on their favorite social platforms. They are unique as a brand operating on Amazon with a strong social following, which includes 20,800+ followers on Instagram and 1,700+ followers on Facebook. That connection with customers has enabled the company to charge premium prices for their SKUs while spending far less on their digital marketing campaigns. The company employs a social media manager whose tasks include engaging with new visitors, responding to messages and comments from customers, and recruiting new influencers.
The company also takes advantage of their 28,647+ email subscribers for upsells and promotions and connects with customers through the informative how-to blog on their website. These tactics are working, giving the brand significant organic traffic, and bringing 36,400+ unique monthly visitors to their site.
This is a straightforward operation, focused on solid customer service, inventory management and order fulfillment. Many of the functions are overseen by Amazon, while the company employs part-time workers who handle order fulfillment on their Shopify website and bookkeeping, and contractors to oversee website updates and maintenance, social media accounts, and video content. It would help for a buyer to have a general knowledge of the espresso industry, particularly if the new owner’s goal is to continue producing new products for this thriving industry.
The company is ideally positioned for growth. A major untapped opportunity for them is marketing to the wholesale industry, creating B2B accounts for the many retailers across the country that sell high-demand coffee products. The company could also expand sales channels to include new sites such as Walmart and eBay and make a concerted international expansion.
The strengths this brand has brought to the coffee accessories market are enormous, from their strong recurring revenues to their loyal customer base and wildly popular patented products. The fact that they continue developing new products will give them a major advantage in this vertical moving forward.
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