More than just a grill company
In this post we will dive into what the market for Alchemy’s other business lines look like, including their rubs, sauces an accessories. If you’re new to the Alchemy story check out our first post below
The BBQ sauces and rubs market in the US has shown significant growth and potential. In 2022, the market was valued at approximately $8.5B and is projected to reach around $11.5B by 2028 implying a CAGR of over 6%.
This growth can be attributed to factors such as the increasing popularity of BBQ flavors, a growing trend in outdoor cooking and recreational activities, and a rise in the overall consumption of meat and grill-ready products. Additionally, the innovation in flavors and the introduction of healthier, organic options may also be contributing to this expansion.
The BBQ sauces and rubs market in the United States is dominated by several major players. Key companies include Kraft, Sweet Baby Ray's, etc. What is encouraging is that the market share held by these major players is relatively small, with the top four manufacturers together holding nearly 10% of the global market. This indicates a highly fragmented market, with a large number of companies supplying BBQ sauces and rubs to the U.S. market. What is also encouraging is that Traegar became one of the top names in sauces and rubs in a short amount of time with the right branding and marketing.
What else is the Traegerhood is telling us
We take a look at the revenue breakdown of Traeger to get some insights into what the consumables division of Alchemy could look like. While the bump in sales during Covid (2020-2021) has come back in as we can see by the year over year decline in revenue in 2022 it was interesting to see that the consumables division held in well and the accessories continued their impressive growth. The increase in accessory sales in 2022 was driven by sales of the MEATER, a smart thermometer, which goes to shows that novel ideas in the space with the right branding and design can see huge adoption.
Consumables (Fuel, Sauces, and Rubs) brings in around 20% of the revenue for Traeger and the margins on this line of business range for 40-70%, significantly higher when compared to the grills.
The performance of accessories is encouraging for Alchemy as they have several attachments, such as a rotisserie and grill cover, already in production with several more to be introduced in 2024. They also have a number of consumables which we will dive into next.
Alchemy is differentiating itself from competitors not only with its unique Grill/Smoker but also with their offerings of sauces and rubs. At the core of all of these products is a company focused on building out its brand through engagement with its target audience, both through social media as well as in-person “Flame to Table” events.
Celebrity Chef Matt Basile, co-founder and creative fire starter of Alchemy Grills creating online content with video recipes using the grill is a great way to engage with existing customers while generating interest in potential buyers. Having a celebrity chef endorsement is an approach we have previously seen to be effective with Gozney and another Toronto based celebrity chef, Matty Matheson.
For more on who Matt Basile click below for his website where you can find a list of upcoming event, his 2 cookbooks and a huge list of recipes.
Matt spent almost two years developing and perfecting these combinations with various food scientists and co-packers and as it stands to date, these products are ready for deployment with the goal of getting them into stores for the 2024 BBQ season.
With a chef-driven mindset, Alchemy has introduced six distinctive products tailored to enhance grilling adventures. These offerings are designed to complement their grill, appealing to a wide-ranging audience. Alchemy's appeal extends beyond grill owners, positioning the brand for broader market engagement.
As we touched on in our previous post The BBQ market is highly concentrated with 3 companies accounting for 50% of global sales. This domination has, until recently, resulted in an industry that has historically lacked in innovation. What upstarts like Traeger and Gozney have shown is that with a combination of the right products and branding this status quo can be disrupted in a big way. We think that Alchemy is off to a solid start in building out a brand that resonates with their target market while backing it up with quality products.
For a list of Alchemy Dealers
For more content check out the Alchemy Instagram
as well as Co-fou.nder Matt Basile’s Instagram.
Interested in being part of the Alchemy opportunity? Reach out at firstname.lastname@example.org