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Highlights

Asking price: 1.200,000 EUR

Inventory not included

Gross revenue: 1,175,663.54 EUR
Adjusted EBITDA: 386,022.64 EUR
Margin: 32,78%
Operating since: 2010

General Information

For sale is a company known throughout Germany, which has been successfully selling protein snacks, chips and food supplements since 2010. In the last 12 months, the company generated a gross revenue of 1,177,512.06 EUR, as well as an SDE of 386,022.64 EUR, thereby reaching an excellent margin of 32.78%. The brand, registered with the DPMA, stands for premium products at an inexpensive retail price. This isn’t just an Amazon brand, as it is also well-known in the online shop world beyond Amazon. In total, four products in different flavors and package sizes are sold. The brand has had a very strong positioning in the Amazon category “protein bars” for the last two years, and in general belongs to the largest suppliers in the snack category. The products regularly receive the Bestseller or Amazon-Choice Badge. Because of the very high barriers to entry into this market, there isn’t much competition, which is why the margins are very good. Nowadays, the CEO only works on product launches as well as the regular control of performance and inventory. The rest of the work is handled by two employees and three freelancers. They can be taken over by the new owner, upon request. They are a well-functioning team with a clear task structure and daily checklists. All employees work in home office and therefore don’t generate any fixed costs for an office. There exist standard operating procedures (SOPs) in the form of manuals, checklists and videos for:
  • Product launches
  • Product page optimization
  • The daily operative business
In addition, Jira and Confluence provide a large database, including documentation, of the entire company.

Sales

The company sells its products on the Amazon marketplaces in Germany, and, since December 2018, also in Great Britain. One of the bestselling products started the sales in Great Britain. Two further bestsellers are currently in the planning stage. The market potential is even larger than it is in Germany, with even less competition. Beyond that, large demand also exists in the Arabian region, with orders from Kuwait, and a reputation in Turkey (as distributor for chips), as well as a brief, large relevance as one of the most popular brands in Vietnam. The brand additionally distributes its products via a successful webshop (JTL) with integrated merchandise management software, as well as via eBay. Currently, only the bestseller product is being sold on eBay, offering a lot of potential for expansion. The brand is also available offline:
  • The company is listed with the German Bundeswehr. This offers a lot of growth potential, as the products are so far only sold in one military barracks.
  • The brand supplies gyms with approximately 15 snack vending machines, from which the protein snacks are sold to end customers at the gym.

Marketing

The company uses Amazon pay-per-click (PPC) campaigns to market its products. The potential of PPC campaigns hasn’t been fully exploited by far. The advertising cost of sale (ACOS) lies at 13.4%.

The PPC campaigns are realized by an agency, which handles the following:

  • Creating automated PPC campaigns
  • Creating Headline Search Ads
  • Creating manual exact and broad campaigns with positive and negative keywords
  • Weekly monitoring, budget adjustments and reporting

If requested, the agency could also take over managing the entire account, including support and delivery of goods. But the agency doesn’t have to be kept on; the contracts can be canceled on a monthly basis.

The company uses a Facebook Pixel with a tremendous amount of data about Amazon- and ecommerce buyers. Since the beginning, more than 40,000 EUR were invested in Facebook Ad Spends, which for the Pixel boils down to a value of 40,000 EUR of user data. This means that the shop’s every visitor and shopper was marked by the Pixel and can be precisely remarketed / retargeted. In addition, the great volume of data results in a very large lookalike audience, which can be used for further marketing measures.

 The company has set up an online marketing funnel “Free+Shipping”, which has already accumulated 17,000 leads and converts very well.

In addition, Facebook ads are created at the launch of new products. These consist primarily of retargeting ads for the online shop.

The marketing is conducted with youthful, humorous esprit, which the target group really appreciates. Because of this creative marketing, the brand became popular on Facebook shortly after its founding and was one of the first fitness brands to work with influencers.

The brand uses influencers to market snacks on Instagram, and thereby receive professional photos for other marketing measures. In the first few years, the company almost exclusively conducted extremely successful influencer marketing, which could be intensified again to exploit its full potential.

Suppliers and logistics

All of the merchandise is stored at the logistics provider, which entails extremely cheap prices for storage and commissioning. Excellent terms were negotiated with the logistics provider, effective since December 2018:
  • Storage of 200 palettes/month for 200 EUR
  • Subsequently for 4 EUR/palette/month
  • 9.90 EUR monthly support flat rate
  • 1.35 EUR Pick+Pack, including cartons for any number of products
The merchandise is stored by Amazon’s CEE-program in Germany, Poland and the Czech Republic.

Included in the acquisition

  • Several registered design- and word marks that are trademarked through the EU
  • A professional website with integrated JTL-webshop on domains of all important EU countries  (like .eu / .it / .com.vn / .com.tr / .es / .be / ch.)
  • Finished and functioning ecosystem with JTL ERP-system + JTL Shop + Amazon + eBay (but you can connect JTL to all other shops as well)
  • Amazon listings with excellent rankings and reviews
  • An email list with almost 60,000 subscribers; including connection to the online shop, which tags every buyer. This leads to an interactive, automated exchange between shop and email list.
  • Active Instagram account with over 1,000 posts and more than 28,000 followers
  • Active Facebook account with over 28,000 followers
  • Excellent terms and rates with the logistics provider
  • Templates and checklists for promotional measures and advertising content
  • All files, banners, print data for products etc. are saved in the cloud and will be handed 100%
  • Full documentation, SOPs and tutorials (on a company YouTube-Channel, among other things) of Jira and Confluence, as well as the Amazon launch process with publically unknown / never published tricks.

Reason for the sale

The founder has been vegan since 2014 and therefore doesn’t fully support the company’s non-vegan products anymore. He would like to sell the company to someone who will continue running and building it with a passion and exploit the remaining great potential in full. Currently, he estimates that only about 10% of the company’s potential is being utilized.

 

Growth potential

  • Further development and expansion in Great Britain
  • Expansion into the other Amazon EU-marketplaces; the competition there is even smaller than in Germany
  • Long-term international expansion beyond the EU; this is already being planned, including
    • Linkup of a new Shopify store with the existing JTL webshop; 50% completed and stable
  • Further development of sales on eBay
  • Offering of subscription models, like on Amazon
  • Offering of savings subscriptions for every product on Amazon
  • Development / Revival of existing but never fully developed B2B partnerships
  • Expansion of the YouTube channel

Request

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