August 8, 2024
With sales for refrigerated bar Clio posting a compound annual growth rate of 50% annually, CEO John McGuckin might be excused for sounding upbeat. But the former Sabra Hummus executive is not ready to rest on his laurels, reports Food Dive.
“The product was always ahead of its time,” McGuckin recently said in an interview discussing the chocolate-covered yogurt bar. “Even though we’ve had some remarkable success, there’s a long way to go” to build awareness and market penetration.
Clio Snacks was founded in 2013 by former accountant and budding entrepreneur Sergey Konchakovskiy. He was motivated by the idea of getting his kids to consume more nourishing foods. After noticing they were curious about a batch of strained Greek yogurt in the fridge, Konchakovskiy came up with the idea to coat it with chocolate.
More than a decade later, the bar is flourishing. Sales this year are forecast at $60 million, up from $9 million in 2019. McGuckin is optimistic that Clio could eventually near $500 million, if the company can meaningfully boost consumption and household penetration.
These attributes have made the product a hit with a diverse range of retailers, with everyone from Walmart and Whole Foods to BJ’s Wholesale and natural food outlets, carrying it in their stores. Clio has recently prioritized foodservice and convenience stores as channels for growth.
A major obstacle that befuddled Clio is that retailers were confused as to where to carry its products. Some stores placed it in the $10 billion yogurt category; others, with refrigerated bars; and a third in deserts.
“That was a big challenge for us because our consumers did not have a destination in mind when they went to the store,” said McGuckin, who took over the CEO post in October 2021. The unpredictability left Clio to depend on consumers stumbling upon it when they went shopping.
To help alleviate the problem, Clio studied the market share and distribution of Mondelēz International’s Perfect Bar, which also is a refrigerated bar offering. Executives at Clio noticed that Perfect Bar had carved out a presence between yogurts and deserts. Clio soon settled on further building out that category and eventually dominating it.
“We’re having some success,” McGuckin noted. “But it’s still early.”
And Clio still has plenty of other challenges ahead: Its household penetration currently stands at 2%. Supermarkets carry, on average, only two of its products—compared to six to eight at most Walmart and Whole Foods locations. In order to build scale and expand the category between yogurts and deserts, McGuckin said Clio needs to convince grocers to carry between four and six items.
The New Jersey-based company has expanded its product line to include multipacks, which are conducive to retail and generate more revenue.
Research contact: @FoodDive
