Founded in partnership with the world-class branding agency Saffron Brand Consulting, EarlyBird are making Mondays better, having launched an own-brand subscription snack box which is delivered on a Monday each week. EarlyBird launched a successful BETA program Janurary 2015 – March 2015, with 6000 boxes shipped.
Our product the TasteBox contains 5 healthy gourmet snacks, amazing artwork and access to independent musicians, that we promote through the TasteBox and EarlyBird website. All in a package that pops through your letterbox or onto your desk every Monday. Each box costs the consumer £4.50 and With our current churn per delivery at 10% the average subscriber stays for 10 boxes (customer lifetime is calculated based on the regular LTV formula).  Currently we make a 42% gross margin per box packed and we forecast this to increase to 50% with scale.
Following the BETA programme the TasteBox was improved and relaunched in June 2015 as a product that we know can take us to break even. Improvements have been made to reduce churn rates, save costs and increase production capacity to 7000 boxes per week. Currently shipments are over 1000 boxes per week with revenue growth at around 20% week on week.
We believe that Graze.com, the market leader, have shown that there are significant barriers to entry within this space, (we are yet to find a direct postal snack competitor at the price-point they offer). We learnt from our BETA program and subsequent relaunch why this is the case: significant CAPEX and operational knowledge is needed to produce small postal snacks at scale. From our learnings since launch, we feel that we are one of the first companies to break these barriers. As well as breaking these barriers to entry, we’re looking to implement some of our own that are based around brand, brand partnerships, the creative side of the business, and strategic R&D relationships with both iconic brands and snack manufacturers. Our current relationship with Joe and Sephs popcorn allows us to trade snack love and hate data, for reduced priced products.
We believe that EarlyBird represents an opportunity to invest in a company with strong foundations, a growing consumer brand, with a strong social following and large target market with only one important unchallenged player. We are raising £300,000 which will be used to take the company to break-even.
Our strategy and track record over the previous 12 months has proven to be a winning one. We will continue in the same breath over the coming 12 months and into the future, reducing costs, improving quality and growing our customer base.
Find out more or order a free TasteBox at www.earlybird.fm with code inves-1111