Website Closers® presents an innovative CPG Brand in the cookware space. The Brand owner designs and manufactures cutting-edge, patented and exclusive cookware, offering high-performance, health-consciousness, sustainable, durable, and ethical products. 2/3 of its revenue is derived from D2C eCommerce sales and 1/3 from B2B wholesale.
Ownership has created a remarkable, proprietary line of cookware and kitchen tools protected by multiple patents and trademarks. These intellectual property rights safeguard the brand’s margins and equity against low-cost competitors.
This company demonstrates consistent revenue growth, strong margins, streamlined operations, and high net profits. While 70% of revenue comes from direct-to-consumer eCommerce sales, the brand also holds a prominent position as a retail cookware brand in Australia, with over 130 retail outlets stocking its products. Moreover, the brand has an exciting pipeline of innovative products in development, set to be launched in the coming months and years.
The owner has experience with product development and is happy to not only ensure a smooth transition, but also consult as necessary and if needed by a new owner. The buyer does not need to have an engineering or product development background.
All products are manufactured exclusively for the business by four Australian manufacturers and two in the US, with concrete agreements in place. The owner operates with shrewd inventory management, stocking only around half of the sales inventory. At the same time, the remaining orders are pre-paid before production commences. This strategy is made possible by the brand’s loyal following and excellent reputation, enabling it to maintain a healthy cash flow.
The digital marketing strategy is highly effective and encompasses various approaches. The primary sales driver is word-of-mouth referrals, with ample support from chefs, influencers, experts, and satisfied customers who willingly spread the word among their networks due to their admiration for the products’ innovation and performance. Social media advertising on platforms like Facebook, Instagram, and Google further amplifies the brand’s reach.
Product launches are pivotal, with boosted social media posts targeting existing followers and friends during the campaign’s learning phase. The broad strategy combines traffic and conversion campaigns to achieve a baseline Return on Ad Spend between 4 and 5. Subsequently, the budget is increased, and the audience is expanded to maximize value. The company has also achieved remarkable success through Google Ads, with an average ROAS of nearly 9.
The recent implementation of affiliate marketing has yielded fruitful results, generating nearly $60,000 in sales within three months, with payable commissions under $5,000. Management plans to scale these efforts and may enlist the services of an agency to expedite revenue growth. The agency’s role will involve identifying appropriate affiliates in the niche and familiarizing them with the brand.
Mailing campaigns are an important means of communicating with subscribers and prospective customers. The public mailing list boasts an average open rate of 45%. In comparison, a Facebook group associated with it achieves an impressive 60% open rate. This Facebook group, consisting of 16,000 members, has become a valuable asset, with satisfied customers producing user-generated content, engaging in discussions about product usage, sharing recipes, and expressing interest in future purchases. The mailing list also plays a significant role in supporting Kickstarter campaigns for new product launches.
Much of the business’s success is built upon its vibrant community. Each product in the store has been through the Kickstarter crowdfunding experience, starting from the first launch 11 years ago. During that time, it has successfully launched and fulfilled over 35 Kickstarter projects. This platform allows the business to maintain manufacturing operations in Australia while offering competitive prices.
The typical customer base comprises individuals with significant spending power who enjoy collecting various products for their kitchens. However, many customers from other demographics also show support and aspire to own some of the brand’s offerings. No other competitor in the industry can boast such an enthusiastic and devoted customer base, as evidenced by the passionate Facebook group where members proudly display their collections, often consisting of dozens of pieces. Sales remain robust throughout the year, with peaks during the fourth quarter.
The owner is fully dedicated to the business, primarily focusing on marketing strategy, product innovation, intellectual property management, and setting goals and actions for the team. If needed, he will remain in a design or advisory role for an extended period. The Australian team consists of a full-time operations manager and sales manager, along with part-time employees, including a marketing manager, marketing assistant, customer service lead, and logistics assistant. Additionally, a part-time agent operates in the US.
The global market for kitchen products is vast, with a growing demand for healthier, more sustainable, locally-made options. As Australia’s only genuine production kitchenware manufacturer and one of the few in the US, this brand is strategically positioned to capitalize on this shift in consumer preferences.
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