PISCATAWAY, NJ — Leveraging its position as a fresh, better-for-you snacking option in the refrigerated aisle, Clio Snacks has turned its Greek yogurt bars into a multichannel offering that appeals to a variety of consumer demographics.
The company has grown from an approximately $8 million business six years ago to a projected $60-plus million business in 2024, with a compound annual growth rate of nearly 49.5%, said John McGuckin, chief executive officer of Clio Snacks.
“There's just been a dramatic demand for Clio across multiple generations,” he said. “It’s a product that’s for everyone: all age groups, all ethnic groups, all levels on the economic ladder, and it can really be sold anywhere.”
McGuckin, who joined Clio as CEO in October 2021, attributed the product’s success to its portable format, simultaneously healthy but indulgent quality and high-protein formulation, which have helped appeal to the modern consumer’s flavor preferences and emphasis on value and convenience. The coated, Greek-yogurt filled bars have resonated particularly with working mothers and lately the Gen Z student population, McGuckin said.
“I think from a price-value relationship and from the gratification of the bar itself … we just found sort of that sweet spot with the consumer today,” he explained.
Clio has developed an established presence in retailers like Walmart and Whole Foods, and the company continues to expand its distribution in club channels, convenience stores, hospitality and vending. The company’s recent partnership with Dot Foods also has opened new foodservice distribution opportunities in educational institutions. Clio products are now in almost 150 colleges and universities, and McGuckin expects that figure to double by September.
“We see foodservice exploding,” he said. “If you were to sit in our room and look at our three-year strategy plan, you would see foodservice becoming a major player.”
Additionally, Clio recently made its international debut and launched three stock-keeping units (SKU) in 450 Canadian Walmart locations. The company is looking to expand into additional retailers within the Canadian market, which McGuckin believes could be a significant contributor to Clio’s revenue.
“The index on yogurt in Canada is significantly higher than the US on a per population basis,” he said. “We think in this particular category, it could be 15% to 16% of our overall business just based on yogurt consumption that we see north of the border.”
Domestically, the company is looking to increase the all commodity value (ACV) of its existing SKUs. Clio’s overall business sits at approximately 60% ACV, but only two of its SKUs have reached 60% ACV. The company is aiming to have four to eight SKUs at 60% ACV, which will require proper retail merchandising and increased consumer trial. Successful improvements to merchandising and trial for refrigerated bars could put the entire category on a similar trajectory to the growth of the hummus market more than a decade ago, McGuckin said.
He compared the category’s potential based on his experience as executive vice president of North American sales for Sabra Dipping Co., where he witnessed the hummus market rise from roughly $75 million in 2007 to almost $1 billion by 2013.
“People didn’t really know what hummus was, and then they tasted Sabra, and they went crazy,” McGuckin said. “It changed the whole dynamic of the category and really helped to build out what we call today this ‘dip destination within the deli.’
“We think we have a tremendous amount of whitespace in front of us, and a big part of that is getting this category defined through a category leadership approach with our customers to convince them that this is a category that is important and vital and dramatic and incremental.”