This audio was auto-generated. Please let us know if you have any feedback.
With sales of refrigerated bar Clio growing at a compound annual growth rate of 50%, CEO John McGuckin could be forgiven for sounding optimistic, but the former Sabra Hummus executive isn't ready to rest on his laurels.
“The products have always been ahead of their time.” “It’s a great product,” McGuckin said in an interview discussing the chocolate-covered yogurt bar.. “We have had incredible success, but we still have a long way to go to achieve this.” Awareness and market penetration.
Clio Snacks was founded in 2013 by Sergei Konchakovsky, a former accountant and aspiring entrepreneur. He was inspired by the idea of getting children to eat more nutritious food. After seeing children curious about the strained Greek yogurt in their fridge, Konchakovsky came up with the idea of coating it in chocolate.
More than a decade later, the pub is still thriving. Sales this year are expected to increase to $60 million, up from $9 million in 2019. McGuckin is optimistic that Clio could eventually reach $500 million if the company can meaningfully scale its consumer and household footprint.
Clio is gaining popularity among consumers due to its motto of providing better products. Benefits of Greek Yogurt, Protein, Probiotics, and MoreHe also said that it is convenient to carry and is good as a snack.
Selected captions
Licensed by Clio Snacks.
These attributes have made the product popular with a variety of retailers, with it available in everything from Walmart and Whole Foods to BJ's Wholesale and natural food stores. Clio has recently prioritized food service and convenience stores as growth channels.
A major obstacle that has baffled Clio is that retailers are confused about where to sell the product. Some stores are placing it in the $10 billion yogurt category, while others are Refrigerated Bar And the third one is in the desert.
“It was a huge challenge for us because our consumers didn’t have a destination in mind when they went to the store,” he said. McGuckin took over as CEO in October 2021Because of the unpredictability, Clio had to rely on what consumers discovered serendipitously while shopping.
To alleviate the problem, Clio studied the market share and distribution of Mondelēz International's Perfect Bar. cold storage Bar provided. Clio executives noted that Perfect Bar solidified its position between yogurt and dessert. Clio It soon expanded and eventually settled into dominating that category. “We’re having some success,” McGuckin said. “But it’s still early.”
According to Spins data provided by Clio, the refrigerated bar category has nearly doubled in size over the past two and a half years to just under $200 million.
The category is growing 15 percent year over year, and Clio is growing at three times that rate. As a result, McGuckin said Clio is drawing consumers to refrigerated bars and pulling people away from the store aisles. In May, it was a success, surpassing Perfect Bar for the first time in monthly sales.
Clio has a lot of challenges ahead. It currently has 2% household penetration. The average supermarket carries only two of its products, while most Walmart and Whole Foods stores carry six to eight. It needs to scale and expand into categories between yogurt and desserts. McGuckin said Clio had to convince grocery stores to sell four to six items.
The New Jersey-based company has expanded its product line to include multipacks, which could help retailers and generate more revenue.
Clio also recently introduced a bar that replaces the chocolate coating. With plain yogurt in strawberry, banana or mixed berry flavors. This is soothing McGuckin noted that targeting consumers who don't consider chocolate suitable for breakfast has helped Clio expand the morning snack window and open up a larger market for children and people who don't like chocolate..
Clio has no plans to branch out beyond bars any time soon. It is considering adding granola or other crunchy options to its line, or launching more bite-sized products for kids. The only Viva item McGuckin hinted at was the possibility of a drinkable smoothie.
“The results speak for themselves. We have opened a tremendous number of doors over the past two years.” McGuckin said.People are starting to see the opportunity, but I think we're still limited in the scope of what our potential represents as a growing company. And I think it's just a matter of raising awareness.”
