With people across the country on the lookout for healthier alternatives in order to build immunity amidst the pandemic, the demand for nutritional snacking has increased. Health food brand Yogabar claims to have clocked net revenue of Rs 120 crore in FY22 compared to about Rs 48 crore in FY21, thereby posting an increase of about 150%. “The acceptability of healthier food products throughout the Covid period has been phenomenal. Customers have become aware of what it is that they are consuming as well as the nutrition labels,” Suhasini Sampath, co-founder and COO, Yogabar told BrandWagon Online.
Sproutlife Foods Private Limited, the parent company of Yogabar, posted revenue of Rs 48.6 crore in FY21, according to filings accessed by business intelligence firm, Tofler. The company’s net loss stood at Rs 8.4 crore while its business promotion and marketing expenses for FY21 stood at Rs 12.2 crore. The company expects to break even in FY23.
According to the company, Bangalore, Bombay and Delhi accounts for about 80% of the overall sales. Furthermore, online platforms including the company’s own website, e-commerce marketplaces such as Flipkart, Amazon, Swiggy Instamart as well as quick commerce platforms such as Dunzo, Zepto, among others, account for about 50% of the overall sales. “Post Covid, we did a shift in selling a lot of our products online. As for offline, our distribution is structured across general trade (GT) and modern trade (MT),” Sampath added. The company’s products are currently available across 10,000 outlets in the country. Over the next two years, it plans to scale its offline distribution to 50,000 outlets.
Interestingly, when it comes to marketing, the company claims to have only relied on sampling and trials. Our marketing campaign is completely centered around consumers having a first feel of our product, Sampath stated. “We don’t spend much on social media. We primarily spend on sampling like having smaller packs that are sent out through various channels such as Swiggy Instamart, Big Basket, and through our promoters in stores. The other marketing effort is to drive awareness within the various e-commerce channels such as Flipkart and Amazon,” she added.
Yogabar also forayed into the kid’s nutritional snacking segment recently. The company expects that in the next two-three years, the segment will account for about 25-30% of the overall sales. “Besides the children’s segment, we are also looking at disrupting the snacking category through whole grain, gluten free, and sugar-free snacks. The other area of focus would be expanding to tier 2 and tier 3 cities,” Sampath stated. Infact, the launch of Yo Chos and Yo Fills, Yogabar’s chocolate flavoured, multi-grain cereals for kids, at a price of Rs 10 per sachet, is aimed at tapping into the price-sensitive markets beyond tier 1 cities.
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