With Consumer Staples companies focused squarely on innovation to drive growth, we want to pass along promising (dare I say disruptive) snacking innovation: mail-order snacks.
Bloomberg.com published a great article today outlining Graze.com, the Netflix of snacking (its founders are former employees at Netflix U.K.), that will be entering U.S. mailboxes this January after five-years of sales in the U.K. The company has $70M of sales this year and has gotten the attention of Big Food: in fact, General Mills (GIS) launched its own mail-order version in November, named Nibblr.
Similar to the innovation (and investor excitement) we’ve seen around electronic cigarettes for Big Tobacco this year, we see huge runway for mail-order snacking. Both Graze and Nibblr market along Health and Wellness trends, offering an assortment of nuts and lower calorie snacks that the customer can choose from (4 per box at $6), which we think stands to meet both the impulse buyer and those looking to regulate daily calorie intake across a variety of sweet, salty and savory options with an easy-to-use interface.
We would expect to see Big Food jump into the game, including Kellogg (K), Mondelez (MDLZ), and Annie’s (BNNY).
Happy Grazing!
Matthew Hedrick
Associate
