Formulite poises for expansion with crowdfunding campaign after achieving over $2 million in sales

A Melbourne-based company that produces healthy weight management products and premium protein supplements has raised almost $450,000 in just over one week on Australian equity crowdfunding platform Birchal, as the brand looks to broaden its product range, bolster digital marketing and enhance its sales force.

Formulite, which was founded by CEO Glennis Winnett in 2016, produces, distributes and offers high-protein shakes, bars, soups and collagen water through its online store and more than 400 bricks-and-mortar locations nationally, including medical centres, pharmacies and surgery clinics.

Created to help people in need of essential, medically advised weight loss, Formulite has a team of five employees and five contractors and is already planning to expand into another 250 locations before the end of the year.

Over the last financial year, the woman-led and Australian-owned brand has generated $2.3 million (including GST) in sales, with a month-on-month growth of 40%.

Winnett told SmartCompany that the funds raised through the crowdfunding campaign will power the next phase of the brand.

“I am blown away by the level of investment we have been able to achieve in such a short period of time,” she says. 

“My decision to embrace crowdfunding aligns perfectly with the business strategy I’ve embraced since day one of launching our company. 

“It’s all about harnessing the collective power of individuals to advocate for our products. 

“Formulite relies heavily on endorsements from healthcare professionals, satisfied customers, as well as friends and family to foster a community of passionate Formulite supporters. 

“Crowdfunding is the ideal avenue for us to further expand this dedicated following.”

Winnett says one of the business’ fastest-growing channels is the partnerships it has with several Pharmacy Banner Groups in all six states. 

“We experienced 84% growth in FY23 in the pharmacy sector,” she says. 

“Raising these funds will help us to support and drive growth in both our wholesale and consumer e-commerce stores.

“We’ll be employing a national sales team to drive bricks-and-mortar revenue, supported by additional inventory holding requirements to ensure supply to new customers.

Formulite is also planning to invest in growing its e-commerce store by “continuing to refine our rigorous ads strategy”, says Winnett. 

“Our revenue increased by 40% within 60 days of employing this strategy last year, while reducing costs by 12% and improving our return on investment by 63%.”

From offering four flavours of meal replacement shakes when it first launched in 2016, the Formulite range has grown to include five different flavours of locally produced shakes that contain 24 essential vitamins and minerals, four flavours of recovery collagen, and three flavours of Lupin soups.

New product development continues to be a focus for the company, with its bar range now the fastest growing line in its product range, says Winnett. A new bar flavour will be released in early 2024. 

Winnett says the brand is in a period of rapid expansion.

“We’re very proud of our significant percentage growth in recent years, especially 2023 where we saw 40% month-on-month growth,” she says. 

“Our ultimate goal is to double our revenue over the next two years, driven by continued growth in the pharmacy sector.

“Increasing the product lines is also a key part of the strategy. Having more products to sell to our existing channel partners and customers is a very low-cost way to increase revenue.”

Winnett says the team wants to put more focus on growing the brand in the general health and wellness sector in 2024.

“I envision Formulite really making a splash in the fitness industry, where we’ve already received strong interest in incorporating our range in gyms and training studios,” she says. 

“Long term, we want to position the convenience of the Formulite brand and products in corporate locations like offices, airports and airline lounges, and hotel minibars. There is a real demand for healthy and convenient snack options in the current market.”