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%.
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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