Jaime, I loved this article. I hate workout supplements as a business. Like hate it, but this was a great post and was well written. Will include in my Weekly Snacks article going out tomorrow.
Thanks for the kind words Paul. I agree with the unattractive characteristics of the sector. I remain very curious about how Judd can create value with future great M&A deals.
Hey Jaime, I really appreciate the article. For context, I work in the sports nutrition/supplements space. The biggest hole I see in FitLife is reliance on Amazon. I’ve seen first hand how businesses that lack exterior brand power and live off Amazon reviews and seo are increasingly hurt by strong brand names entering Amazon. Most of FitLife’s online business is “amazon first” and the combination of increasing ad rates and stronger competition for fewer organic placements is making the LTV/CAC or returns on capital of these businesses challenged.
I’d love to chat further on this if you’re interested.
Hi! Sorry for the late answer and thank you for your insights. I agree that mainly selling through Amazon implies a risk for the whole e-commerce segment. I have been thinking about a couple of questions that you may be able to answer:
1) Is there a possibility to build brand awareness through Amazon and then drive that engagement to their own website? I believe that to not be possible, but not sure.
2) Do you think they could maintain sales flat and keep looking for inorganic growth at attractive prices? My main "quality" thesis is that consumers (at least myself and my circle) tend to not switch brands once they are used to the flavor and effects of one (for example with protein). But this might be my own perception.
Thanks for the comment and glad you like the article!
Jaime, I loved this article. I hate workout supplements as a business. Like hate it, but this was a great post and was well written. Will include in my Weekly Snacks article going out tomorrow.
Thanks for the kind words Paul. I agree with the unattractive characteristics of the sector. I remain very curious about how Judd can create value with future great M&A deals.
He was smart to pivot to online. Tablestakes at this point for anything CPG related
Hey Jaime, I really appreciate the article. For context, I work in the sports nutrition/supplements space. The biggest hole I see in FitLife is reliance on Amazon. I’ve seen first hand how businesses that lack exterior brand power and live off Amazon reviews and seo are increasingly hurt by strong brand names entering Amazon. Most of FitLife’s online business is “amazon first” and the combination of increasing ad rates and stronger competition for fewer organic placements is making the LTV/CAC or returns on capital of these businesses challenged.
I’d love to chat further on this if you’re interested.
Again, love the post!
Hi! Sorry for the late answer and thank you for your insights. I agree that mainly selling through Amazon implies a risk for the whole e-commerce segment. I have been thinking about a couple of questions that you may be able to answer:
1) Is there a possibility to build brand awareness through Amazon and then drive that engagement to their own website? I believe that to not be possible, but not sure.
2) Do you think they could maintain sales flat and keep looking for inorganic growth at attractive prices? My main "quality" thesis is that consumers (at least myself and my circle) tend to not switch brands once they are used to the flavor and effects of one (for example with protein). But this might be my own perception.
Thanks for the comment and glad you like the article!