An attempted government clampdown on sugar and a drive by supermarkets to stock healthier snacks has led to a surge in sales for Graze, the British healthy food business.
Britain’s leading retailers, including Tesco and Sainsbury’s, have signed up the brand to thousands of stores in recent weeks and are stocking it on shelves close to tills that used to be reserved for confectionery.
It comes as the government faces increasing pressure to do more to prevent a growing obesity crisis, with a Commons health committee report this week calling for a sugar tax to reduce consumption of unhealthy snacks.
Graze was launched in January 2009 by seven friends, selling nuts, dried fruit, small puddings and porridge delivered in brown boxes through the post.
However, four months ago it started selling its products in supermarkets and is set to dramatically extend that arrangement. The business has sold more than 3m snacks in stores after initially agreeing deals with Sainsbury’s and WH Smith.
From Monday, its products will be stocked in more than 4,000 UK stores, including more than 1,000 Tesco Express outlets. Graze’s goods are also available in Asda, Waitrose, Nisa, Budgens and Costcutter, while it is in talks with Morrisons.
WH Smith, which is stocking the products in stations, airports and on the high street, claims Graze has outsold three leading confectionery brands since launching in stores in July. The retailer said sales of healthy snacks in its travel stores were up 40% year on year.
Graze’s latest results show sales rose 29% to £68m in the year to 28 February, which does not include sales from supermarkets and other retailers. Operating profits dipped from £6.9m to £4.4m, due to the cost of expanding into the US. It is thought sales from supermarkets already account for more than 10% of the business.
Anthony Fletcher, chief executive, said: “It is fantastic that Graze snacks are now outselling three leading chocolate bars in some stores.
“There’s definitely a huge appetite among UK consumers for healthier snacking options, and by plugging that void at the tills, Graze is proving that impulse buys and satisfying a craving don’t have to be bad for you.”
Graze is controlled by the private equity group Carlyle, with Octopus Investments, Draper Esprit and the management team owning small stakes.
