Noshu’s sweet surge of success: from $4 million to $40 million in four years

Growing a business from $4 million in revenue to $40 million in just four years is no easy feat, but for entrepreneur, mum of two, and the founder of low-sugar treats business Noshu, Rachel Bajada, this number is about to become a reality in 2024 – and it all began with a humble start in her kitchen making her first no-sugar donut.

Noshu was launched by Bajada 10 years ago after she returned to Sydney following a few years living in France.

She learned many of her extended family members had developed Type 2 diabetes and couldn’t enjoy sweets or desserts at family events and gatherings without having to inject insulin, or abstain entirely.

“I knew that completely abstaining from sugar and sweet foods was not a feasible option for most of us,” Bajada told SmartCompany. 

“So making a range of great tasting, low sugar sweet treats available as an alternative to the sugar-laden mainstream snacks Australians love was critical in order for people to successfully reduce their sugar consumption long-term  – and doing so naturally, without using artificial or chemical sweeteners was just as important.”

Today, Noshu has more than 40 products in six grocery categories and claims to have removed 1.8 million kilograms of sugar from Australian diets in the last four years, thanks to over 10 years of research and development in sugar replacement.

Chemistry and culture

Bajada believes the key to sustainable growth is having the right people around you on all levels, including staff and external advisors.

“Five years ago, I formed a management team which meant I was able to bring in the skills and experience the business needed to take it to the next level of growth,” she explains. 

“There is only so much you can achieve on your own, so I do believe that building a highly functioning team with good chemistry, all motivated by the same outcome, was key to the growth and success we’ve seen in recent years.” 

Noshu now has a team of 20 staff at its Alexandria headquarters and indirectly employs more than approximately 100 factory staff via its nine Australian contract manufacturers. 

Bajada says creating a positive and collaborative company culture, together with an environment people really enjoy, while seeing the positive impact they are making through Noshu’s products, has also been key to attracting and retaining great people.

“Building a business and having a young family simultaneously is a serious juggling act and means we need a lot of help with childcare, so fortunately I have had the support of family on that front,” she says.

“But it also meant a lot of sacrifices, including having kids a bit later in life and my second baby at 41, as I would not have been able to commit the long hours involved in scaling a startup if we’d had kids earlier.”

During Bajada’s second pregnancy, she launched Noshu’s newest product, ‘Mind Blowing Jellies.’

The new product, which is currently ranged in both Coles and Woolworths confectionery aisles, has been selling at a rate of one packet per minute.

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Sweet success

The expansion of Noshu’s confectionery line has marked a milestone for Noshu, with a forecasted revenue for the 2024 financial year of $40 million and the new product line forecasting $3 million in retail sales for year one.

Noshu’s first product to be stocked in Woolworths was its donut range back in 2016, with the brand also securing placement in Woolworths and Coles stores nationwide as Bajada grew the business internationally into Asia and the US.

“We met the buyer for the Metro stores at a trade show and once they were ranged in Metro stores they had an extremely high rate of sale, which opened out both the contacts and the doors to discuss ranging of our new products in other categories as well as the donuts in mainstream supermarkets,” she explains. 

“Starting in Metro was a great way to prove that our brand and proposition worked but without the risk of diving into national ranging initially. 

“After the donuts, we developed a range of low sugar baking mixes which we then pitched to the mainstream supermarket buyers and after countless cake deliveries and meeting attempts, we eventually convinced them that there was a real market and unmet need for low sugar foods. 

“After launching the baking mixes we were then able to leverage that success into other categories including nutritious Snacks (bars), ready-made cake and confectionery. Broad ranging in Coles then followed.”

Bajada confirmed to SmartCompany that Noshu has no plans to slow down. 

“We are focusing on our next stage of growth by expanding within our current categories (cake and bakery, baking mixes and aids, snack bars and confectionery) and increasing distribution in other channels such as independent retailers and convenience, as well as new and emerging markets, mainly throughout Asia,” she adds.