ELAVI’s Costco expansion highlights demand for better-for-you options, innovative packaging

Earlier this year, the brand launched its chocolate fudge cashew butters in 15 Costco locations across Southern California following a successful Costco Roadshow run in summer 2023. Surpassing velocity benchmarks by 40% during this first rotation, ELAVI’s placement alongside legacy brands like Skippy and Nutella made a statement about its appeal. The brand’s design refresh incorporates bolder fonts and vibrant colors to clearly communicate to consumers the products’ contents. The brand’s sales showed Costco that it “clearly know Costco” and understand how to perform well in the market, said ELAVI’s Co-Founder and CEO, Michelle Razavi, attributing this success to a growing consumer demand for low-sugar, better-for-you indulgent options. Achieving Costco status ‘without a broker’ Within just six months of landing in 15 stores, ELAVI earned another rotation on Costco shelves, doubling its store count to 30. While promoting the brand instore, Razavi and her co-founder Nikki Elliott gathered valuable consumer feedback to demonstrate demand and support for their product, which contributed to their sales performance. “We were one of the few brands focused on low sugar, with no seed oils, artificial ingredients, or stabilizers … Our spreads are dairy-free, plant-based, and align with what today's consumers want,” Razavi said. This consumer-driven strategy fueled ELAVI's growth with Costco, she said. “Usually, you would need to wait a year and go through several hoops, but we achieved Costco status without a broker,” Razavi said. She continued, “We did not have a broker pushing our product; we focused on sharing our story and our numbers’ success led to expansion.” "ELAVI’s success is a result of “product-market fit, a strong brand identity, and meeting a clear market demand for low-sugar products without sugar alcohols or stevia ... Every ingredient is simple, readable, and understandable," Razavi explained. In response to growing interest in the healthy indulgent snack space, ELAVI expanded its portfolio earlier this year with the launch of its High Protein Brownies with 10 grams of protein, no added sugar, and only 180 calories per serving. Addressing the cocoa crisis with an enhanced reformulation The global cocoa shortage tested ELAVI’s agility was tested as it worked to keep up with Costco’s demand. When their Chocolate Fudge Cashew Butters were approved for expanded rotation, and their protein brownies were a month away from launch, the brand faced soaring cocoa prices and supplier waitlists extending into 2025. To maintain continuity, the co-founders, along with their food scientists, reformulated the chocolate-based products to incorporate cocoa powder, which offered greater availability and cost efficiency. "You cannot simply raise your price," Razavi explained. "Costco locks in pricing for each rotation, so maintaining price stability is key,” she added. ELAVI initially relied on high-quality dark chocolate free of dairy, soy and refined sugars, using coconut sugar instead. With the reformulation, Razavi and Elliott worked carefully to balance the chocolate, sugar, fat and flavor profile, achieving a “high-quality, natural flavor” reminiscent of brownie batter fudge,” Razavi said. The cocoa crisis underscored the importance of diversifying sourcing and staying adaptable to ensure product quality and consistency. “This process taught us to stay open to change and be flexible with our formula,” she said. ELAVI secures major Costco order with shelf-ready, stackable packaging ELAVI also updated its Chocolate Fudge Cashew Butter packaging to align with Costco’s display requirements while enhancing shelf presence. Initially, the packs were shrink-wrapped side-by-side; now, the new design features vertically stacked, shrink-wrapped containers for improved visibility and efficient stacking on larger pallets. Additionally, ELAVI’s momentum helped secure a “massive” Costco purchase order, set to be announced in January.