Fast-growing “better for you” snack brand disrupting a c.$80bn sector
- Type: Retail
Overview of Chief
Chief is a fast growing brand in the “better for you” snacking space with national and international distribution, turning over $1.6m run rate revenue. The Group is made up of the core Chief brand (80% revenues) and a complementary brand, Beauty Food.
Within the c.$80bn global healthy snack market, consumers are moving away from big food companies with their perceived healthy snacks which are actually full of sugar and artificial ingredients. Consumers are instead looking towards alternative, “purpose led” brands which use genuinely healthy and sustainable ingredients.
Founded in 2015, the Chief team have created a range of health snacks that are totally uncompromising on health and sustainability:
- Chief Beef range (55% of FY22 revenue): Hero product in biltong and bar form using premium cuts of regeneratively farmed, organic grass-fed Aussie beef.
- Chief Collagen range (25% of FY22 revenue): Sweet, nut-based bars, with collagen protein, that are one of the only truly clean and healthy snack bars in the world.
- Beauty Food (20% of FY22 revenue): A line of “edible beauty”, guilt free snacks that uses a science-backed formulation to help you look younger whilst crushing those cravings.
By investing in Chief, you’re saying no to Big Food companies pretending to be healthy when they’re not. You’re helping Chief lead the way in the battle against the health destroying impacts of cheap, highly processed, artificial foods and too much sugar. You’re helping Chief prove we don't need all this crap in our food and there is a better way. You're also helping Chief do our bit to get Regenerative Farming on the map and support Aussie farmers transitioning to more sustainable and ideally regenerative practices.
Chief is already gaining significant traction, tracking run rate revenue of $1.6m, and ranged in Woolworths Group, David Jones, BCF and Harris farm with more in the pipeline. Through its direct-to-consumer online channel, it creates strong customer loyalty and community building.
Brock Hatton and Justin Babet founded Chief in 2015 with Libby Babet (health expert, author and former trainer on Channel 10's "The Biggest Loser") and Veronika Larisova (nutritionist and ultra marathon runner). Libby, Brock and Justin are experienced founders with 5 successful exits between them. Brock was also one of the founding team for international health food brand Nuzest (still operating).
They are advised by a network of prominent figures across finance, investing and FMCG brand building, including the founder/ former CEO of Bounce Foods.
Looking forward, Chief will continue to accelerate its rapid domestic growth through new Australian distributors and further expansion of its already huge influencer network. Chief exports to NZ and the Middle East, and plans to launch in the US and Europe in 2023 with an online led strategy leveraging learnings in the Australian market
- Differentiated product range, recommended by health professionals
Backed by scientific research, Chief has developed a range of health snacks made from ingredients with scientifically-backed health benefits. The Chief manufacturing process means that customers are able to enjoy the full health benefits of key ingredients such as collagen and unprocessed meat - something that is lost with big food companies through processing and artificial additives.
- Impressive traction to date
Chief’s revenue has grown over 4x in the past 12 months, with its ARR growing from $400k to over $1.6m in that period. Chief’s online presence has also seen tremendous growth, with over 250k unique website visitors p.a. as well as Chief’s line of products reaching the eyes of over 21 million people over the last 12 months. They have a clear path to profitability by the end of CY 22.
- Multi-channel distribution
Sold across direct-to-consumer online and wholesale channels in Australia and internationally. They are present in major retailers such as David Jones, IGA, BCF and Harris Farm, as well as gyms and fitness groups including Barry’s Bootcamp. Chief is also in trials with Woolworths which could lead to broader distribution in up to 900 additional stores.
- Highly marketable brand with excellent customer feedback
Chief’s bars have made a name for themselves, garnering an influencer network that has promoted Chief’s products to over 2 million followers as well as ad exposure reaching over 4 million unique Australians eyeballs over the last 12 months. Excellent customer feedback and a repeat purchase rate of 35% showcase the quality of Chief’s range of products.
- “Better for you” snack bar market is booming
“Better for you” snack market is growing at 6% as consumers distrust big brands and are increasingly seeking “purpose-led”, healthy alternatives. Conglomerates are fast losing market share to disruptive start-ups such as Chief, with healthier, more sustainable options and loyal fans.
- Strong exits in the space
Major trend of large retailers buying smaller brands to acquire customers and maintain market share. Recent international examples include General Mills/ Epic Meat Bars (acquired for $100m, 5.0x revenue) and Kelloggs/ RX Bar (acquired for $600m, 5.0x revenue). This trend has also been seen in Australia with Well Naturally, Keep it Cleaner and Raise the Bar all acquired in recent months by private equity and strategic suitors.
- Robust growth strategy
Chief has established a robust growth strategy to drive towards a conservative target of over $10m revenues by the end of 2023. In Australia, Chief plans to grow its product range and distribution channels and plans international expansion through online sales in the US (set to begin in mid-2022).
Why Equity Crowdfunding?
We have chosen to raise capital through equity crowdfunding to give our customers and partners a chance to become shareholders.
Over the next 5 years we see the continued rise of healthy food plus the rise of regenerative agriculture, sustainable food and farming practices. People will continue to gain more knowledge about what is healthy and want to know more about how their food is made. People are snacking more due to busier lifestyles, less home cooking and changes in the way we work. We'll win by bringing deliciously tasty, healthy and regeneratively farmed products to the masses in the form of snack foods.
Our mission is to help people stop eating crap food that destroys their health and the environment by providing better options.
We know our customers share the same passion as we do to create healthier versions of ourselves, which is why it made sense to allow them the opportunity to become co-owners in the business, to help drive our growth and ensure we remain community-focused. As the brand grows, we hope to allow these investors to share in our future success and become loyal brand advocates.
The funds from this equity crowdfund will help us expand our offering to a global scale and increase our manufacturing capabilities in the process.
Want to learn more about the Chief investment opportunity? Watch our investor webinar below with Chief co-founders Justin Babet & Brock Hatton.