Yin's Sourdough Bakery and Cafe Make Artisanal Healthy Available for Everyone

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Yin’s Sourdough Bakery started as an ‘All Sourdough’ bakery in 2013, Penang Island. Yin’s Sourdough’s goal is to spread awareness and promote a healthier alternative to commercial bread – sourdough bread with a low glycaemic index (GI), free of preservatives and additives, to make sourdough bread available to all who want to achieve these. REAL BREAD, that is SOURDOUGH BREAD. 

Back in 2013, sourdough was far from being a trend; in fact, it was a niche and not widely available. Even commercial bakers were skeptical, considering it an impractical and unattainable choice. And as Steve Jobs had said in an Apple ad – 
“Here’s to the crazy ones. The misfits, the rebels, the troublemakers, the round pegs in the square holes, the ones who see things differently. They’re not fond of rules, and they have no respect for the status quo.”

Despite the initial challenges, Yin’s Sourdough persevered, refining recipes to suit local tastes and opening the first physical store back in 2013. 
 

Fast forward to 2023, Yin’s Sourdough’s has expanded to 11 outlets in Penang and Klang Valley, offering not just sourdough bread but an extensive product line. The bakery has since diversified into a diverse variety of breads and pastries, artisanal sausages, luncheon meat, roasted coffee, jams, granola, and kombucha, establishing a firm presence in the market. 

It started with an annual revenue coming up to ~RM200k. By 2020, Yin’s Sourdough has expanded to four outlets with an annual revenue of ~RM1.8 million. In that same year, Yin’s Sourdough completed a round of Equity Crowd Funding before the COVID-19 lockdown, raising a fund of ~RM1.1 million. Despite the challenging times of many uncertainties, Yin’s Sourdough’s resilience shone through, coming back stronger. By 2023, annual revenues of all outlets are projected to reach ~RM12 million (Yin’s Sourdough 5 outlet + 1 Central kitchen, and revenue from the remaining 6 licensed outlets). Of the 6 licensed outlets, 4 are co-owned and 2 are fully licensed.

Yin’s Sourdough will be conducting a second round of equity crowdfunding to further its growth, expanding its production line, improving cost and efficiency, and opening more retail chains, along with the aspiration for international markets. Recognising the demand for halal products, Yin’s Sourdough is also pursuing JAKIM halal certificates to cater to the wider market.

The Malaysian fondness for both bread and rice has contributed to a concerning 14.39% diabetes rate. Unfortunately, the prevalent commercial bread options with high GI further exacerbate this health concern. Sourdough bread, on the other hand, is known for its lower GI, offering a healthier alternative. However, its adoption faces hurdles as it tends to be perceived as expensive due to its unique ingredients and the absence of chemical additives and preservatives. This perception has hindered its popularity among Malaysians.

Moreover, the demand for healthy artisanal food choices remains unmet in the market. This gap highlights the need for alternatives that prioritise health without compromising on taste.

Adding to the complexity, there is a substantial demand for halal products in Malaysia, where 65.3% of Malaysian Muslims seek halal options. Additionally, the Middle East heavily relies on Asia for 63% of its halal imports, while Europe faces a shortage of halal food supply. This underscores a significant opportunity for halal artisanal food products, bridging the gap in the market and meeting the growing demand for healthier, halal alternatives.

Yin’s Sourdough Bakery is on a mission to revolutionise the bakery industry with diabetes-friendly, low-GI sourdough bread. Yin’s Sourdough prioritises natural ingredients, steering clear of additives, preservatives, and chemicals. Collaborating with healthcare professionals, Yin’s Sourdough is committed to raising awareness about the health benefits of sourdough products. 

Expanding the offerings, Yin’s Sourdough aims to provide more Halal-certified options catering to Muslim customers, backed by JAKIM certification for added trust. Through continuous improvements in the production processes, Yin’s Sourdough aims to make high-quality sourdough accessible to all, focusing on optimised production, diversity, and affordability. Integrating vertically and horizontally, Yin’s Sourdough uses their product in Yin’s Sourdough’s cafes, as well as extends them to customers, groceries, and other cafes.

Yin’s Sourdough’s diverse product range includes sourdough bread, pastries, cakes, kombucha, kefir, natural sheep casing sausages, sourdough cookies, sourdough noodles, artisanal coffee beans, and fruit jams. Yin’s Sourdough’s has also ventured into Japanese-type bread, starting at Shojikiya, The Gardens.

Starting in 2013 with a single bakery, Yin’s Sourdough has grown significantly – starting with an annual revenue of ~RM200,000, increasing to ~RM1,800,000 in 2020, and raising RM1,100,000 before the COVID-19 pandemic struck. Despite the challenges during that period, Yin’s Sourdough now boasts  projected to reach ~RM12,000,000, Yin’s Sourdough 5 fully owned outlets + 1 Central kitchen, 2 fully licensed, and 4 co-owned. The projected revenue for 2023 is ~RM12,000,000. Currently fundraising for Yin’s Sourdough’s second round, aiming for self-sustained growth for the next 3-5 years, targeting a revenue of RM42,000,000 by year 2027.

A wider customer base is targeted through strategic outlet openings and HALAL certification. We are also working on opening in Johor, paving the way for future expansion into Singapore through better brand awareness. Collectively, Yin’s Sourdough is expanding their product offerings, particularly on bread and buns. The Yin’s Sourdough’s App will continue to function, prioritising customer experience and offering rewards for retention.

Operating with a unique business model, Yin’s Sourdough has achieved better control, coordination, cost savings, and competitive advantage through vertical integration. It allows for better flexibility in the creation of innovative menu, production of artisanal products at a fraction of cost and with in-house efficiency. Whereas horizontal integration provides market power, economies of scale, an expanded customer base, and synergies. In the eye of customers, there is hence greater value through the differentiation and uniqueness of Yin’s Sourdough’s outlets. With the fund raised this time around, Yin’s Sourdough aims to open more outlets and kiosk, optimising the cost and creating better efficiency. 

Sourdough bakery and artisanal products remain largely untapped, with Yin’s Sourdough currently commanding a substantial market share in sourdough bread alone. Yin’s Sourdough’s growth potential is not constrained by market limitations but rather by the need for increased awareness and outreach. To bridge this gap, Yin’s Sourdough plans to expand their presence through outlets, kiosks, pop-ups, and strategic collaborations with groceries and supermarkets.

Currently based in Malaysia, Yin’s Sourdough’s next strategic move involves opening outlets in Johor as it not only broadens its regional footprint but also serves as a stepping stone for introducing the brand to the dynamic market of Singapore. 

In a landscape dominated by bakeries and cafes, Yin’s Sourdough Bakery stands out with two distinct propositions. Firstly, Yin’s Sourdough has meticulously crafted a robust brand identity as a sourdough bakery, emphasizing health-consciousness and an innovative food menu. Secondly, Yin’s Sourdough’s strategic advantage lies in the successful integration of both horizontal and vertical aspects of its business, which enhances the product offerings and provides a competitive edge.

Yin’s Sourdough is aiming to raise between RM1.5 million to RM2.5 million in equity crowdfunding through pitchIN, in which:-

65% will be used in the opening of outlets/kiosks 

30% in improving the central kitchen and efficiency of production

5% for Marketing Collaboration.

Everyone deserves healthy nourishment, wholesome and budget-friendly sustenance for the local communities. To make sourdough bread and healthy artisanal produce accessible to all.

The visionary behind Yin’s Sourdough Bakery, is an Ipoh native and brings a wealth of pharmaceutical expertise to the world of baking. A JPA scholar and University of Malaya graduate, Yin’s Sourdough embarked on a 13-year career in the pharmaceutical industry at a multinational corporation before moving to the USA with her husband. Her true passion for baking served as a stress-reliver during her climb up the corporate ladder. 

Upon moving to the USA
Over the years in the USA, Yin’s Sourdough encountered a new, deeply traditional, way of baking bread - sourdough bread. Intrigued by its popularity among health-conscious individuals, she went into research and discovered a study in the Cambridge Journal. This research highlighted the ability of sourdough bread to prevent blood sugar spikes, providing lasting effects until the next meal. Motivated by this newfound knowledge along with her mother being diabetic, Yin’s Sourdough introduced sourdough bread to her mother, even teaching her the ways to bake it. To everyone’s surprise, her mother’s sugar levels were significantly controlled after a year.

After returning to Malaysia due to family obligations, Yin’s Sourdough made the bold decision to establish Yin’s Sourdough Bakery. The rest, as they say, is history – a journey driven by commitment to providing wholesome, health-conscious products.

Camelia Tio is the Chief Operating Officer of Yin’s Sourdough Bakery. She started her career in the financial world, yet her passion for healthy food has brought her to contribute to the growth of Yin’s Sourdough.

1. pitchIN and its officers and staff may also be investing in this campaign
2. Under ECF Guidelines, valuation is determined and set by the Issuer. Investors are advised to carefully peruse all investment offers and documents before making investment decisions.