How Ecommerce Prevented a Brand Crisis for Yogi During Retail Stock Outs and Grew Sales over 100%

Katie Lavin

July 6, 2022

 3 minute read time
How Yogi Tea’s Ecommerce Strategy Prevented a Brand Crisis During Retail Stock Outs

Most executives understand the importance of dedicating time and resources to a retail strategy but may underestimate the potential revenue from an ecommerce strategy.  Unexpected problems can arise on either of these channels, so it is imperative brands operate both channels at full throttle so if one fails, even for a short period, the other can pick up the sales.

Yogi has long-term, profitable relationships with brick and mortar retailers such as Walmart and nationwide grocers, but wanted to also be available online.  So Yogi invested in a partnership with Pattern, the top global ecommerce accelerator, to solidify their ecommerce strategy and presence, which allowed Yogi to survive and thrive during the world’s most turbulent retail period.

COVID Hits, Consumers Panic and Yogi Stocks Out at Brick and Mortar

When the COVID-19 pandemic hit in March 2020, it immediately changed the global retail landscape as consumers, in a state of uncertainty, were flocking to stores to stock up on daily essentials and health remedies.

Like a majority of other health remedies and self care solutions, Yogi recognized a significant uptick in overall sales.  In terms of products, the Get Well Variety Pack demand almost doubled that of previous months.  With consumers lining up at brick and mortar stores, many retailers were overwhelmed, could not get more supply, and quickly ran out of stock.

Yogi keeps extra raw materials and finished product in stock in their warehouse, so the brand is normally prepared for small shifts in consumer demand.  However, this demand shift was completely unprecedented and unpredictable, leaving them unprepared.

Consumers’ Only Option—Buy Yogi Online

As a Pattern partner, Yogi had been developing a well-rounded and effective ecommerce strategy well before the pandemic. So, in Spring 2020, when brick and mortar sales dropped to zero, Yogi’s overall business was able to maintain steady revenue.

Since consumers could no longer buy Yogi tea varieties in physical stores, they immediately turned to marketplaces like Amazon, Walmart, and others to find Yogi’s products.

How Yogi Survived COVID

Pattern, an ecommerce accelerator, invests in its partners by purchasing inventory as well as applying proprietary technology and data-driven insights to the entire ecommerce journey.  By owning the inventory, Patten made sure Yogi was able to positively respond to the online demand shift because Pattern keeps up to 12 weeks of stock for Yogi exclusively for Amazon  Additionally, Pattern holds additional backstock for marketplaces that are more volatile with a smaller baseline.

Pattern also worked with Yogi to develop an ecommerce strategy that would not only keep them in stock on ecommerce platforms, but also get their brick and mortar retailers back on track. First, Pattern temporarily discontinued 4-pack sizes on Amazon so Yogi could fulfill inventory back to their brick and mortar stores.  Then, Pattern focused its efforts on 6-pack sizes so that both channels could have positive revenue from the updated bundles/packaging until all channels were back on track.

Yogi Tea Sales and New Consumers Spike Over 100%

4-pack sales are up 103% year over year. Pattern’s data-driven strategy to temporarily discontinue the 4-pack size, in order to get all retail channels back to profitability, had no negative impact on long term SKU growth.

New customers increased up to 110% and repeat customers increased up to 100%. Since the initial demand spike in spring 2020, Yogi has seen two additional large demand spikes, each one greater than the previous (Q4 2020 and Q1 2022).

Yogi’s retail AND ecommerce platforms continue to grow. While each spike brought unexpected challenges, Pattern and Yogi were able to minimize damages.

Pattern Delivers for Brands During Times of Uncertainty

Pattern has the unmatched, proprietary technology, data, resources, and marketplace expertise to develop and execute a brand’s ecommerce strategy, giving brands peace of mind during turbulent times.  Pattern invests in a partner’s inventory which leverages data-driven solutions, product innovation, and inventory and fulfillment expertise that benefits all your retail channels, even during a global pandemic.

Get in touch with our team to learn how Pattern can develop and execute your ecommerce strategy.


Learn more about Pattern’s partnership with Yogi in our video case study. Watch now.

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