How Graze Used Magento to Test a New Market

Graze had a tasty idea. They wanted to launch it.

Since 2008 Graze has used technology to disrupt the snack industry and become the world’s #1 healthy snack brand. Their mission is to make healthy snacks more exciting and accessible to more people. Most of its $100 million business is an online subscription service delivering healthy snacks throughout the United States and the United Kingdom. As their business grew, the company found that customers wanted to order and try specific snacks before committing to a subscription. Based on actual customer sales data and insights, Graze realized there was a business opportunity between their successful subscription model and a traditional retail option. The idea for an online Graze Shop was born.

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To launch this project, Graze conducted extensive market research, analyzing the benefits of Shopify, Demandware, OrderDynamics, and other platforms, before choosing Magento Commerce (formerly Magento Enterprise Edition 2) and Magento Commerce Solution partner, Inviqa. A technology company at heart, Graze built their entire subscription business in-house, so they planned to work together to launch a targeted online shop to test the business model expansion.

When we looked at what we wanted to achieve, it was clear that using Magento Commerce would allow us to test, learn, and iterate without betting the business.

Mark Wood

CTO, Graze

Magento gave Graze all the ingredients they needed.

Graze realized there was great value in using Magento instead of trying to build and maintain everything themselves. Having a PHP development team in-house, they loved that Magento spoke their language, and knew that while they would benefit from our external innovation, they could still have control over the code. The Magento platform enabled Graze to test and iterate the project without risking their core business.

To launch the project quickly, the Graze Shop was built primarily using out-of-the-box functionality. Graze leveraged the responsive Luma theme to create a seamless multi-channel online shopping experience. They also created a custom integration that allowed customers to seamlessly login and checkout using existing Graze credentials.

The Magento Admin tools gave the Graze team full control over all aspects of the site including management of products, merchandising, and site content. This made it easier to add configurable products, and track inventory levels. Using the API, the team was able to build an integration between Magento and their in-house pick-and-pack system. Working with hosting partner Elastera, Graze easily deployed their platform in the cloud.

Orders are up. Costs are down.

The results were clear: the overall site performance has exceeded all Graze expectations. The Graze Shop has proven the viability of the direct online order business model. Data shows that the Graze Shop appeals to a different demographic than customers using their subscription model, which means it is driving incremental revenue. Graze also confirmed their thesis that they could effectively integrate a third-party platform into their core business.

The overall Magento Commerce approach to software development was a good fit with the Graze culture and allows them to focus on their core competencies—using technology to make healthy food exciting.

The new site generated £3m in incremental sales revenue in the first 12 months. The number of transactions increased from an average of 100 in January 2016 to 18,700 in January 2017, and the average conversion rate increased by 429% during the same period.

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This experience taught us that we can be an innovative technology company, but we don’t have to reinvent the wheel.

Mark Wood

CTO, Graze