Lettuce is the new lobster.
What was once the blasé addition to a McChicken is now as rare as hen’s teeth, and if you can get it, expect to pay.
The same goes for numerous grocery essentials thanks to inflationary pressure, COVID related supply issues and the Ukraine situation.
As we see an increasing portion of our paychecks going towards necessities, shoppers are seeking ways to hack their supermarket trip. Whilst some are resorting to snapping the stem off broccoli to avoid paying for extra weight, savvier shoppers are turning to Frugl (ASX: FGL), a grocery app that lets consumers save every shop.
Whether you’re seeking to lower your sugar and saturated fat intake, or avoid nuts, the Frugl app might be for you. The app has features that find savings on products across multiple grocery stores including Coles, Aldi, IGA and Woolworths across the country. You can also input dietary requirements and allergens to avoid. Shoppers can also use the convenient scan and search feature to find over 50,000 products just by scanning the barcode. The platform uses publicly available retail grocery pricing data and sophisticated analytics software to deliver their value proposition.
The app has seen an influx of new users (including me as of ten minutes ago) seeking better deals on their weekly shop leading to a record period of user growth. The recent addition of more retailers and performance improvements including a brand new user interface has added to the App’s appeal, aiding in its “unprecedented growth” and popularity in recent weeks.
App downloads, new user accounts and 30 day active users are all substantially increased in line with cost of living pressure. Q4 as at 22 June saw an increase in app downloads to 22,446 compared to 9,196 in Q3. New user accounts almost doubled to 14,184 for the same period.
The Company has also invested in strategic marketing campaigns across television, radio and online advertising to increase brand awareness amongst shoppers, especially during a time where many are susceptible to any product promising to alleviate any financial pressure.
The boost has given Frugl a refreshed drive to continue development of their app, increasing revenue growth across new and existing business customers.
That being said, the financials are hard to ignore. For Q3 FY22 the Company shelled out $499,000 in operating expenses and rounded out the quarter with only $63,000 in the bank. Despite a finance facility of $500,000 the Company is running on a pretty lean balance sheet, attributing high expenses to research and development of their app. To bolster their position, the Company initiated a campaign which saw them raise $431,000 in funds via a Share Purchase Plan.
With experts predicting inflation could hit 7%, Frugl may well become a staple in many shoppers’ errand run. Or you could be THAT broccoli stalk snapper…
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
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