Success Case Study: SkinnyPop - Bringing simplicity and enhanced convenience to a snack staple
SkinnyPop was founded in 2010 as a two-person start-up. Delivering a simple ready-to-eat popcorn with natural ingredients, the brand has risen to second in the US ready-to-eat popcorn category, with sales reaching over $270m in 2016.
Ready-to-eat popcorn has emerged as a key growth opportunity within snacks in recent years. Overall, it is now commonly valued in excess of $1bn. Furthermore, profitability potential is strong, with margins typically above 30%.
Reasons to buy
- SkinnyPop has added value to the popcorn category by stripping the product back to a bare minimum, rather than adding ingredients or overly indulgent characteristics.
- The product's simplicity and credibly healthier nature have helped to reinforce the idea of guilt-free snacking. This case underlines that brands are becoming more effective at delivering on the concept of healthy convenience.
- Keeping things simple can be transferable between categories so as to allow brand-building and without betraying any healthy/simple/natural brand ideology that may form part of the attraction of the core brand.
- SkinnyPop shows that good margins can be achieved from simplification while premiumizing, as opposed to justifying premiumization via greater complexity and thus production expense.
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- Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.
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- Access valuable strategic take-outs to help direct future decision-making and inform new product development.
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