Clio Closes $8M As Sales Continue to Grow
Refrigerated bar brand Clio Snacks announced the close of an $8 million funding round yesterday, which was led by long-term investor Alliance Consumer Growth (ACG) alongside other individuals and new investor AF Ventures.
Clio’s chocolate covered Greek yogurt bars are sold in close to 8,000 doors across a variety of channels with retailers including Walmart, Whole Foods, Wegmans, Albertsons/Safeway, Sam’s Club, BJs, and select Target and Costco locations. The company has raised approximately $10 million from investors, primarily ACG, in two previous rounds.
Having recently expanded its New Jersey manufacturing plant in January, the company will now focus on driving demand, according to President Heather Cox, who assumed the role in January after serving as VP of marketing and General Manager for roughly two years.
“We’ve built out capacity and now this fundraising round is about driving sales in the business,” she explained. “[That includes] marketing to bring in new consumers, opening new retail distribution and new innovation launches.”
That innovation should debut later this year in the form of two new products. Cox declined to share the full details but noted they will be “similar in format” to its existing line but should help the brand “unlock new consumer groups as well as new occasions.” In November, Clio launched Clio minis, which are roughly half the size of a full size Clio bar and sold in eight count multipacks. Though the company still sees higher velocities with its original bar, the higher price point of the multipack balances this out, leading to similar dollar velocities for both lines, Cox said.
Despite some bar brands seeing a dip in sales during the pandemic due to consumers eating less on the go, Cox said Clio is reporting 25% velocity growth over the last 26 weeks and 38.8% velocity growth over the last four weeks. Consumers see Clio as an indulgent dessert or snack, she said, rather than something to be eaten quickly away from home.
Cox added the company has also continued to add new retailers, growing 57% in distribution over the last year, most recently launching its new mini multipacks from 100 Walmart stores into 700 doors. The brand, as a whole, is sold in over 3,000 Walmart locations. Though the brand uses its Greek yogurt base as a point of differentiation, the brand doesn’t cannibalize from other yogurt brands, but rather brings in incremental dollars to the category. The same holds true when looking at the refrigerated bar set, she said.
“We don’t compete with [Chobani or Perfect Snacks] for consumers, they’re buying both of us at the same time,” Cox said. “We’re bringing new consumers and new occasions to the yogurt and refrigerated bar categories, and that’s what’s so magic about this company.”
