With sales for refrigerated bar Clio posting a compound annual growth rate of 50% annually, CEO John McGuckin could be excused for sounding upbeat. But the former Sabra hummus executive is not ready to rest on his laurels.
“The product was always ahead of its time,” McGuckin said in an interview discussing the chocolate-covered yogurt bar. “Even though we’ve had some remarkable success, there’s a long way to go” to build awareness and market penetration.
Clio Snacks was founded in 2013 by former accountant and budding entrepreneur Sergey Konchakovskiy. He was motivated by the idea of getting his kids to consume more nourishing foods. After noticing they were curious about a batch of strained Greek yogurt in the fridge, Konchakovskiy came up with the idea to coat it with chocolate.
More than a decade later, the bar is flourishing. Sales this year are forecast at $60 million, up from $9 million in 2019. McGuckin is optimistic Clio could eventually near $500 million if the company can meaningfully boost consumption and household penetration.
Clio resonates with consumers because of its better-for-you mantra that includes the benefits of Greek yogurt, such as protein and probiotics, as well as the portability that makes it a convenient snack, he said.
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These attributes have made the product a hit with a diverse range of retailers, with everyone from Walmart and Whole Foods to BJ’s Wholesale and natural food outlets, carrying it in their stores. Clio has recently prioritized foodservice and convenience stores as channels for growth.
A major obstacle that befuddled Clio is that retailers were confused as to where to carry its products. Some stores placed it in the $10 billion yogurt category, others with refrigerated bars and a third in deserts.
“That was a big challenge for us because our consumers did not have a destination in mind when they went to the store,” said McGuckin, who took over the CEO post in October 2021. The unpredictability left Clio to depend on consumers stumbling upon it when they went shopping.
To help alleviate the problem, Clio studied the market share and distribution of Mondelēz International’s Perfect Bar, which also is a refrigerated bar offering. Executives at Clio noticed that Perfect Bar had carved out a presence between yogurts and deserts. Clio soon settled on further building out that category and eventually dominating it. “We’re having some success,” McGuckin noted. “But it’s still early.”
The refrigerated bar category has nearly doubled from two-and-a-half years ago to just under $200 million, according to Spins data provided by Clio.
The category is growing at 15% annually, with Clio growing at three times that rate. As a result, McGuckin said Clio is attracting consumers to refrigerated bars and drawing people away from shelf-stable aisles in the store. In May, it surpassed Perfect Bar in bars sold during a month for the first time.
Clio still has plenty of other challenges ahead. Its household penetration currently stands at 2%. Supermarkets carry, on average, only 2 of its products — compared to six to eight at most Walmart and Whole Foods locations. In order to build scale and expand the category between yogurts and deserts, McGuckin said Clio needs to convince grocers to carry between four and six items.
The New Jersey company has expanded its product line to include multipacks, which are conducive to retail and generate more revenue.
Clio also recently debuted a bar that replaced the chocolate coating with plain yogurt in strawberry, banana or mixed berry flavors. This placated consumers who don’t view chocolate as a fit for breakfast, McGuckin noted, while helping Clio grow morning snacking occasions and opening up a larger market for kids and people who don’t like chocolate.
Clio has no plans to venture outside of bars anytime soon. It’s pondering adding granola or some other type of crunch to its products, or rolling out more bite-sized offerings for kids. The lone non-bar item McGuckin hinted at was the possibility of a drinkable smoothie.
“The results speak for themselves. We’ve grown a tremendous number of doors in the last two years,” McGuckin said. “People are beginning to see the opportunity. But I think we’re still limited as a growing company with the extent to what the potential represents. And I think that’s just a matter of building awareness.”