Soaring Subscription Box eCom - Keto Diet Niche

Relocatable, NA


Asking Price: Annual Revenue:
$7,150,000 $9,613,547

Retail: E-Commerce, Retail Websites


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RE: Soaring Subscription Box eCom - Keto Diet Niche Broker: Ron Matheson
Owner Financing is Available!
Negotiable

Quick Facts

Asking Price: $7,150,000
Annual Revenue: $9,613,547
Net Profit: Not Disclosed
Cash Flow: $1,587,570
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2015
Employees: 8
BBN Listing #: 786259418
Broker Reference #: WC2418

Email or Print Listing

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Business Overview:

Website Closers® presents a brand fit to lead its booming industry. This thriving Subscription Box Service provides a huge selection of Keto Dietary Snacks in prepared packages, delivered on full subscription directly to consumers homes and offices. This health snack business has been phenomenally popular with consumers and growing massively across the country, especially as the world becomes more cognizant of the need to be healthy in mind, body, and soul. The company has achieved soaring sales – all of which is recurring and membership revenue.

The brand has seen subscriptions soar to 18,000+ while their online membership marketplace for popular keto snacks makes up a growing percentage of sales. This company is a first to market, market leader and growing, benefiting from both paid and organic traffic that has brought them a 90% YOY growth rate since 2019 along with 130,000+ Instagram followers and a 170,000+ email database along with 57,000 Facebook followers. Their products have drawn rave reviews from satisfied customers putting this company in the perfect position for increasing, lasting success.

This brand markets snacks that fit into the concept of Ketogenic, a term for a low-carb diet that provides more calories from protein and fat and less from carbohydrates. The company possess an enormous database of audience profiles and preferences that allows a scientific and highly accurate approach to predicting winners and losers in upcoming product selection. Each month, the highly engaged customer base is surveyed for feedback on how they rate the products, if they would buy it again, what they liked, what they did not like, and what value they assign to the product.

By combining this deep data with industry data, the company has been able to develop a Moody’s style rating system that can analyze 150+ brands and 700+ products to create a monthly subscription box that is embraced by the customer base and ensures satisfaction of membership, thus increasing brand loyalty, lifetime value and reduced churn. This data can also be utilized to profile brands for potential acquisition targets with a high degree of precision and will prove invaluable to a buyer desiring to scale via acquisition of snack product brands. This database, built over 6 years, is deep and is considered highly valuable Intellectual Property, both creating a moat around the business and enabling identification of market expansion opportunities.

The Global Snack Food Market is massive, valued at $427 billion in 2020 and with projections for a healthy growth rate. Within that industry, the Global Ketogenic Diet Market is valued at an equally impressive $9.57 billion and is expected to continue growing through 2027 as the rising prevalence of obesity among both millennials and working-class people across the globe is fueling demand for these types of healthy/diet products.

The ketogenic diet has become increasingly recognized as an effective method for weight management and to combat conditions such as cardiovascular diseases, diabetes, and high blood pressure. The brand has turned the public’s interest in this diet into an immensely popular subscription package of snacks that have sent sales soaring.

The company was launched in 2015 to sell subscription boxes that contain 10-14 Keto-friendly products in it. Subscriptions are $39.99 and customers are billed every month. In addition to the snack food items such as Snack Chips, Parmesan Crisps, Almond Butter Bars, and Chocolate Chunk Cookies, the boxes also contain a new insert every month that includes recipes, success stories, and details on how to manage their subscription.

Sales are also generated from their online marketplace, where customers can make extra purchases of their favorite past products. While 95% of sales are from subscriptions, a growing 5% of sales are generated from the marketplace. Those purchasing on the marketplace must be subscribers. Currently, purchases can only be made on their website and products are not sold on Amazon or other eCommerce sites. This is a tremendous opportunity to scale, among many others.

Sales have been exceptionally strong, rising from $7 million in 2020 to a projected $9 million this year. Their customer base has given the Keto boxes overwhelmingly positive reviews and on average, customers remain subscribers for at least 6 months. Their boxes are appealing to customers who are struggling with weight issues and looking to replace their carb-heavy snacks with Keto alternatives, which are gluten free, maltitol free, aspartame free, and soy and sucralose conscious.

About 80% of their customer base is made up of women between the ages of 24 and 45. Sales typically rise in the first three months of the year when people are making a new year’s commitment to weight loss, and there is a slowdown over the spring and summer. Subscriptions rise again as the holiday season approaches.

The brand has an active marketing campaign that includes PPC ads that target the Keto community, and organic traffic through their social media accounts, which include a huge 130,000+ Instagram followers and 56,900+ Facebook followers.

The company also utilizes an influencer program for their 360+ influencers who receive $15 in commissions for a signup, and an affiliates program launched on Share A Sale, offering similar commissions to someone who convinces other affiliates to sign up. Using email marketing campaigns, which include discount offers during November for Black Friday and Cyber Monday has also proven impactful.

The company utilizes a highly efficient 3PL model to handle all of the kitting requirements and the 3PL selected has proven to be highly reliable over nearly four years of working together.

Their rapid success makes this company the ideal candidate for huge growth opportunities. One way to boost sales significantly would be to open up the online marketplace and promote it to the public, allowing those who are not subscribers to access and buy products. The idea would be to offer this as a one-stop shop for Keto products and then focus on upselling subscriptions to those customers.

The company could also expand by offering digital marketing services to the more than 150 brands that feature their products on their website, helping to promote their products. They could also launch digital products such as recipe books and diet plans to build the brand which can be sold as upsells at checkout as well as through email campaigns.

Other solid paths to scale exist from improving their email marketing campaigns through more detailed targeting, building out their affiliates network by targeting professional affiliates on networks such as Clickbank and Share A Sale. Utilizing the existing IP developed through extensive customer surveying and analytics to identify the most in demand and profitable snacks is an extremely promising path as well. This could be used to help launch a private label branded product line or use this proprietary data to acquire brands that meet the market needs virtually guaranteeing success of brands that the company knows the global Keto community desires and values.

One of the current owners is no longer actively working in the business, while the other owner spends about 40 hours per week on the business, with primary tasks that include meeting with the marketing team, developing growth plans, and running the marketing campaigns. This could be minimized with the addition of a new business development specialist. The company has seven full time employees, including a director of operations, logistics lead, customer service lead, operations assistant, brand manager, social media and community manager, and marketing assistant.

With such high recurring revenues, there is still plenty of untapped potential that could boost this remarkably successful business to drive a

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Additional Details:

  • The property is owned.
  • The owner is not willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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