Itsu grocery stands out as a shining example of how innovation and a commitment to excellence can drive revenue growth. Itsu Grocery, a brand established in the world of healthy, Asian-inspired cuisine, has witnessed a significant surge in revenue in 2023. While there are multiple factors contributing to Itsu’s success, a drivers of growth are attributed to its approach to distribution gains, frozen growth, new listings, NPD and international growth.
Making this revenue boost even more significant is the turnaround to report a profit of £1.3m in 2023, after itsu reported a loss of £7.9m in 2021. In the UK, growth was boosted by the launch of its award-winning chilled Big Bao and over 300% growth in Brilliant Broth sales.
Itsu Grocery finance director William McMillan told The Grocer: “This healthy growth is driven by both our core ranges (gyoza, bao buns and noodle cups) as well as significant NPD, with 26 brand new SKUs being listed in supermarkets over the course of the year.”
Julian Metcalfe, founder and CEO, said: “… grocery recipes that have been years in development are landing in supermarkets including chilled noodle soups and crystal noodle cups.”
Brand stretch is never as easy as it looks. On initial, usually optimistic, assessment, it can appear theoretically plausible, but in the real world it often fails to deliver. Not least because the space you stretch into is usually packed full of established players that are already part of the repertoire of consumers who are not waiting with bated breath for your imminent arrival. Persuading them is hard, especially when the things that made you relevant – your brand’s raison d’être – do not always translate into a new place or proposition. Itsu’s on-going journey from fast food outlet to a multi-channel food brand with a strong base in retail might be slowly establishing itself. Why could it work?
- Brand coherence: the retail product offers, the packaging etc. all reflect the quality and style of the restaurant food, where the outlets have a retail feel already i.e., it is one brand.
- Insight: this connection also leverages an insight by creating an element of added ‘treat’, it’s convenient and like eating out/takeaway food.
- Innovation: the choice of products and the commitment to on-going innovation and range creates a strong, engaging and coherent presence in the category. This is challenging, but essential. The evidence is extensive and growing; brands that innovate effectively outperform brands that don’t.