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You can find the current article at its original source at https://www.theguardian.com/business/2016/oct/17/graze-aims-for-healthy-bite-of-us-snack-market-with-bricks-and-mortar
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| Graze aims for healthy bite of US snack market with bricks and mortar Graze aims for healthy bite of US snack market with bricks and mortar | |
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| The British healthy snacks maker Graze is to make its appearance in thousands of shops in the US after a UK government clampdown on supermarkets selling confectionery helped the brand to thrive in its home market. | The British healthy snacks maker Graze is to make its appearance in thousands of shops in the US after a UK government clampdown on supermarkets selling confectionery helped the brand to thrive in its home market. |
| The brand, which started as an online subscription service with its products delivered through the post in brown boxes, will expand into more than 3,500 US stores from this week on the back of its growth in the UK. | The brand, which started as an online subscription service with its products delivered through the post in brown boxes, will expand into more than 3,500 US stores from this week on the back of its growth in the UK. |
| Graze only moved into physical shops in the UK last year but its nuts, brownies and popcorn are now on sale in more than 5,000 stores, including Tesco, Sainsbury’s and Boots. Graze has become Boots third largest food brand and will expand into the retailer’s sister chain in the US, Walgreens. | Graze only moved into physical shops in the UK last year but its nuts, brownies and popcorn are now on sale in more than 5,000 stores, including Tesco, Sainsbury’s and Boots. Graze has become Boots third largest food brand and will expand into the retailer’s sister chain in the US, Walgreens. |
| The British supermarkets and Boots have placed Graze products in prominent positions next to their tills after removing confectionery from these shelves amid a government drive to crack down on childhood obesity. | The British supermarkets and Boots have placed Graze products in prominent positions next to their tills after removing confectionery from these shelves amid a government drive to crack down on childhood obesity. |
| However, Graze’s expansion from a solely online subscription business – which was available in the UK and US – to appearing in stores as well has led to a slowdown in sales growth in the past year. Revenues grew by 3.2% in the year to 29 February 2016 to £70.3m. | However, Graze’s expansion from a solely online subscription business – which was available in the UK and US – to appearing in stores as well has led to a slowdown in sales growth in the past year. Revenues grew by 3.2% in the year to 29 February 2016 to £70.3m. |
| This was down on the sales growth of 29% last year as some customers switched from making internet orders to instore purchases, thereby cannibalising sales. Underlying profits before interest, tax, depreciation and amortisation fell from £9.5m to £7.6m. | This was down on the sales growth of 29% last year as some customers switched from making internet orders to instore purchases, thereby cannibalising sales. Underlying profits before interest, tax, depreciation and amortisation fell from £9.5m to £7.6m. |
| However, Anthony Fletcher, chief executive of Graze, said he was pleased with the performance and stated that the company is well-placed for significant growth over the next year. Graze has returned to a double-digit percentage growth in sales year-on-year since the end of February. | However, Anthony Fletcher, chief executive of Graze, said he was pleased with the performance and stated that the company is well-placed for significant growth over the next year. Graze has returned to a double-digit percentage growth in sales year-on-year since the end of February. |
| “People really do want healthy foods,” Fletcher said. “Far too many of the brands are unhealthy and the market hasn’t caught up. | “People really do want healthy foods,” Fletcher said. “Far too many of the brands are unhealthy and the market hasn’t caught up. |
| “There are plenty of healthy foods out there but they are not exciting to eat – that is the multimillion-pound opportunity. At the moment retailers are over the moon, we have solved a problem for them.” | “There are plenty of healthy foods out there but they are not exciting to eat – that is the multimillion-pound opportunity. At the moment retailers are over the moon, we have solved a problem for them.” |
| Fletcher admitted that the online business had “shrunk” and that its profitability had been “significantly affected” by Royal Mail changing the terms of its delivery agreement with the company. | Fletcher admitted that the online business had “shrunk” and that its profitability had been “significantly affected” by Royal Mail changing the terms of its delivery agreement with the company. |
| As well as expanding into US shops, Graze has agreed a potentially lucrative deal with Facebook worth tens of thousands of dollars a month to supply food to its office in Silicon Valley. Graze, which launches three new products a week on average, has remodelled its range for US customers, with new products including Sweet Memphis BBQ, New York Everything Bagel and Spicy Sriracha Crunch. | As well as expanding into US shops, Graze has agreed a potentially lucrative deal with Facebook worth tens of thousands of dollars a month to supply food to its office in Silicon Valley. Graze, which launches three new products a week on average, has remodelled its range for US customers, with new products including Sweet Memphis BBQ, New York Everything Bagel and Spicy Sriracha Crunch. |
| Graze was founded in 2008 by seven friends as an online business selling snacks through the post. The company is controlled by the private equity group Carlyle, with Octopus Investments, Draper Esprit and the management team owning small stakes. | Graze was founded in 2008 by seven friends as an online business selling snacks through the post. The company is controlled by the private equity group Carlyle, with Octopus Investments, Draper Esprit and the management team owning small stakes. |