Clio is establishing itself as a functional snack bar that combines indulgence with health benefits, which aligns perfectly with current food trends. The five-year-old company infuses each of its Greek yogurt bars with 8 to 9 grams of protein and a variety of probiotics, all wrapped in dark chocolate. This appealing combination has spurred growth among consumers seeking a healthier yet indulgent snack and has also attracted investor confidence. “The brand has achieved the ideal balance between indulgence and health-conscious consumption, as demonstrated by its remarkable growth in distribution and on-shelf performance,” stated Julian Steinberg, co-founder and managing partner at ACG, in a recent release.
The better-for-you bar market is becoming increasingly competitive, with significant players entering the space. In 2017, Kellogg acquired RXBAR for $600 million, and Mars Wrigley took a minority stake in the healthy-snacking brand Kind. Although Clio may not boast the reach and brand recognition of these industry giants, this has not deterred investors from supporting the startup’s potential. Clio’s unique selling point lies in its refrigerated snack positioning. While shelf-stable bars currently dominate grocery store shelves, many major brands are beginning to explore refrigerated options. According to Mondelez, the refrigerated snack segment generates $20 billion annually, accounting for one-third of the total U.S. snacking market. Perfect Snacks pioneered the refrigerated snack bar category, launching its organic, non-GMO, nut butter-based protein bars and bites in 2005, with Mondelez acquiring a majority stake in the company last year. Recently, Kind introduced a new refrigerated nut butter protein bar, and brands like NuttZo and OHi also offer refrigerated bars, primarily featuring nut butter rather than Greek yogurt or dairy.
While Clio’s refrigeration sets it apart, it may also limit its market appeal. Consumers on the go may prefer products that are less prone to melting. However, with more individuals staying home due to the pandemic, sales may increase, as melting becomes less of a concern when transitioning products from the fridge to the home office. Clio effectively navigates the space between snack foods and healthier desserts, allowing it to tap into two popular segments. The trend towards “junk food with a health halo” has surged, with consumers seeking healthier, cleaner-label versions of familiar treats. A study from the NPD Group indicated that snack food consumption rose 8% in April, primarily driven by increased purchases of frozen sweets and salty snacks.
If Clio can leverage this trend, it will be well-positioned for growth. However, to sustain the near 100% year-over-year growth experienced last year, the company needs to expand its distribution network and forge more retail partnerships. As a smaller startup, Clio may be better positioned than larger competitors in the refrigerated bar sector to adapt and respond to consumer demands with innovative products. Additionally, the calcium citrate reaction in their bars could further enhance their appeal, providing consumers with another health benefit to consider.