With continuing strong growth in the UK and a successful launch into the US market, Graze reported earnings before interest, tax, depreciation and amortisation of £12.2M.
Because of changes made to the group structure in 2012, Graze said it had not been possible to present prior year financial results as it claimed these would not provide meaningful comparatives.
The growth in the online retailer’s core UK business was assisted by increased penetration of the family market, using technology to improve segmentation and personalisation of its customers’ experiences. It reported a successful launch of the ‘graze goodybox’ for children and ‘graze breakfast boxes’, expanding the size of its UK market.
US launch
Graze officially launched across the US in November 2013 and exceeded 100,000 customers by February 2014. The company claimed its direct to consumer model, data analytics and experience from the UK were key to the early success of the US launch.
It opened a New York office in June 2014 and committed to investing $75M over the next two years in its US business infrastructure, technology and marketing.
Other developments have included a mobile responsive website and continued investments in manufacturing capacity and supply chain technology to support its growth. The launch of ‘graze big box sharing snacks’ are scheduled for Autumn 2014.
“I am delighted with the progress made across the group’s operations, which is reflected in another year of record financial results, with sales exceeding £50M for the first time,” said Anthony Fletcher, Graze ceo.
‘Core UK business’
“The core UK business continues to go from strength-to-strength and has been further boosted by the launch of new product ranges. Our launch in the US went smoothly and early trading has surpassed our expectations as graze fast establishes itself as the leading online retailer of healthier snacks.”
Graze was created by the founders of LoveFilm, the UK-based provider of DVD-by-mail and streaming video on demand in the UK and Germany, acquired by Amazon.com in 2011.
The founders have used similar technology to create and deliver healthier snacking alternatives, which are customised to each customer’s preferences using a novel taste algorithm and delivered by mail.
The company has operations in London, New York and New Jersey and is majority owned by the Carlyle Group, with other investors including Octopus Investments, DFJ Esprit and management. The graze team has grown to almost 500 employees in 6 years.
Food Manufacturing Excellence Awards shortlist
Graze has been shortlisted in the 2014 Food Manufacturing Excellence Awards for Ambient manufacturing company of the year; Supply chain initiative of the year; and for the Judges’ star performer categories. See here for the full shortlist of candidates, or visit the awards' website.
Don’t forget, you can be among the first to learn the identity of the winners by booking your place at the gala awards evening at the London Hilton in Park Lane on Thursday November 20. Book your table here or contact Rebecca George at: rebecca.george@wrbm.com or telephone 01293 610422.