YETI: From Garage Start-Up to Outdoor Giant

Famous for its high-end Tundra coolers, YETI is an American designer, retailer, and distributor of products for the great outdoors. The company has, as of December 2023, grown its revenue from $90M to $1.6B since 2013, an impressive 10-year CAGR of 33%.

Founded in 2006 by the Austin-born brothers Roy and Ryan Seiders in their father’s garage, YETI was founded with the original intention to make durable coolers for outdoor adventures. By turning early adopters like the angler Tim Rowland and Snowboarder Travis Rice into brand ambassadors, the company quickly became synonymous with high-end coolers and outdoor products.

YETI’s large and growing social media presence – soon boasting 2M Instagram followers – is showcasing the power of the brand and provides a capital-efficient marketing launchpad for new products, as well as for attracting new potential customers.

In 2018, the company went public at a $1.7B valuation – the second IPO attempt – as it sought a $5B valuation in 2016 but withdrew due to unfavorable market conditions.

While early YETI enthusiasts probably fell in love with the company’s products for anglers and hunters, the product portfolio today caters to a much broader audience. Their target categories include everything from golf, mountain biking, and skating, to surfing, snow sports, and climbing – most of which are growing at a healthy clip.

As stated above, the YETI product range – encompassing everything from high-quality coolers and drinkware to backpacks and bags – is tailored to cater to the unique and varying needs of diverse outdoor pursuits. In the remote wilderness; at the beach; or anywhere the company’s customers like.

As of Q3 2023, the revenue mix consisted of 58% drinkware, featuring insulated tumblers, bottles, and mugs. 40% coolers and equipment and 2% from other sources, including YETI apparel, bottle openers, ice substitutes, and other accessories.

YETI’s strong brand presence, growing market, and ability to scale sales and distribution efficiently, all while maintaining healthy profit margins, indicate the company’s robust position in the outdoor product market. This solid performance, along with its diverse and high-quality product range, makes YETI a noteworthy brand for potential investors and outdoor enthusiasts alike.