The Good Grain Company - an online Retailer Case Study

Overview

Company Description

The Good Grain is an online retailer of teff, a grain grown in select regions of Ethiopia. The Good Grain sells teff through its website in both a grain and flour form. The company provides to both health-conscious Canadian retail consumers and wholesale to specialty restaurants and bakeries within Montreal, Quebec.

The Good Grain’s website sets new industry standards as a straightforward and easy to navigate online teff vendor. The site also offers recipes and instructions for users unfamiliar with the up-and-coming grain, so that all customers can reap the benefits of this super food. The Good Grain’s online presence supports accessibility with its order capabilities, information about product use and direct delivery to customers.

In addition to accommodating consumers’ healthy choices, The Good Grain also gives back to the same Ethiopian communities that farm the grain. With its passion for sustainable goods, 1% of all annual profits go to the Ethiopian community of teff farmers in Ethiopia through the Sasakawa Africa Association.

Mission

The Good Grain creates the opportunity for health-conscious and socially aware customers to enjoy a hale-and-hearty product in new tasty ways. In providing teff to individuals and businesses, we aim to redefine what Canadians think of the word “healthy” while also giving back to the same underdeveloped communities that provide us with the grain.

Goals and objectives

• Obtain sales of $75,000 for the first operating year.  
• Pass food inspection to become “certified organic” by the Canadian  Government.  
• Give 1% of profits to the Sasakawa Africa Association in the first year, and conduct periodic market analysis to determine the donation amount that  maximizes marketing, sales and our initiative.  
• Achieve profitability by fiscal year 3. Achieve a sales growth figure that will  lead to future profits by year 4.  
• Establish our brand within the local community while also building The Good Grain’s customer base cross-nationally.  

Keys to success  

• Ownership: There are five equal, experienced and passionate owners of the incorporated company with thorough knowledge of the industry and organization.

• Online presence: The website is clear, easy to navigate and makes ordering simple for both individual and corporate customers. The site provides detailed information about the product and its many delicious uses. It employs knowledgeable and timely online customer service and reliable cross-Canada shipping.  

• Retail distribution channels: Located in Montreal, Quebec, The Good Grain has access to a variety of popular organic cafes and restaurants in the area (For example, Aux Vivres) who value local business.

• Industry: The Good Grain exists in the rapidly growing organic and gluten free food industry within Canada.

• Customer base: With its product base and marketing tactics, The Good Grain has access to brand-loyal customers who value health, and to customers with food-allergies who can rely on the product as a necessity rather than a fad. We also partner with retailers, who purchase our wholesale product.

• Competition: We are distinctly different from other teff suppliers in Canada and the U.S. through our unique web presence and sustainability efforts. The Good Grain also undercuts competitors’ wholesale prices.

• Sustainability: We offer consumers the ability to give back to underdeveloped communities with each purchase through our charitable initiative.

• Marketing: We have business relationships with three popular and growing Canadian blogs for ad space and promotions, which will help inform a wide body of consumers about The Good Grain. We leverage social media, utilize pop- up farmer’s market stands to inform local customers and use Google AdWords to ensure our company site gains and maintains exposure.

Market Analysis

Industry Analysis

Organic/health food market

Naturally healthy food products, such as teff, are defined as minimally processed and natural sources of vitamins, minerals and other nutrients. The naturally healthy food market is estimated to have grown by over $25 billion (USD) in North America between 2010 and 2015.1 This year, total sales for naturally healthy food and beverages is expected to reach $316.1 billion (USD) worldwide. Naturally healthy food sales have risen as a result of the increasing value consumers place on health and wellness. Today, 50% of Canadian buyers “have health and wellness on their shopping radar”, leading to significant growth in the health food industry.2 

The development in the naturally healthy foods market is a response to Better For You (BFY) food, fortified food, and organic food trends.3 To North American consumers, the most important ingredient in naturally healthy foods is fiber, a leading ingredient in teff. High fiber grains like rice and pasta proved to be the most dynamic products with 18.9% and 12.4% growth from the previous year, respectively. 46% of consumers say that they are willing to pay more for better- tasting natural foods with high fiber content.4 

Gluten-free Market

The food intolerance market is a sub segment within the naturally healthy foods industry. Particularly, gluten-free foods, such as teff, are increasing in popularity due to the development of organizations such as the Canadian Celiac Association, who help establish new products in the marketplace by educating Canadians. Food intolerance products also appeal to health-conscious consumers without allergies, who purchase these foods to prevent health problems and assist with weight-loss. The Canadian food intolerance market is globally ranked tenth at a value of $161.3 million (USD) while North America stands as the largest market for food intolerance products with 43% of global sales.5 

Growth of Industry

i. Increasing awareness of health

Consumers have become increasingly concerned with health and wellness, which has led to the recent and steady rise in health food sales. With more media attention devoted to healthy eating and more legislation in place to educate Canadian consumers on the ingredients in their foods, healthy options will continue to grow in both demand and sales. Fiber products, specifically, are expected to grow by 750% in the next five years. In response, retailers are increasing shelf space for naturally fibrous, healthy products and manufacturers are looking to produce with more natural ingredients, which exemplifies the growing trend of healthy choices.6