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the Joshua Schall Audio Experience

the Joshua Schall Audio Experience

By Joshua Schall

Welcome to the Joshua Schall Audio Experience

On my podcast, you’ll hear episodes of my popular short-form Consumer Packaged Goods (CPG) news segment "Consumed", a long-form CPG entrepreneurship interview segment "Formula For:", deeper dive segments "Deep Dish CPG", public speaking engagements, and any of my new and current thoughts that I record specifically for this audio experience!

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Frank Beard Shares Why COVID-19 Was a "Dress Rehearsal" For Future of Fuel & Convenience Retailing

the Joshua Schall Audio ExperienceNov 12, 2020

00:00
41:15
Strategy Behind Fastest Velocity Non-Alcoholic Beer Brand | Jamie Fay (RationAle Brewing) Interview

Strategy Behind Fastest Velocity Non-Alcoholic Beer Brand | Jamie Fay (RationAle Brewing) Interview

It’s no secret that A LOT of social situations are still very much centered around drinking alcohol (and specifically beer). But how does that tradition potentially shift against the backdrop of more people becoming conscious of their physical and mental health? Drinking a non-alcoholic beer was considered somewhat embarrassing and even stigmatized within the U.S. market, but the beverage category has gone through a renaissance of late. In fact, over the last handful of years, I’d argue there’s no other aspect of drinking culture that has enjoyed both this level of profound level of sales growth and huge cultural impact as non-alcoholic beer. So, as my interest in this captivating beverage category has increased substantially…I’ve continually found myself searching out those independent upstart brand stories that connect with my own “mindful drinking” journey. And you’ll hear about that connection when Jamie Fay explains what inspired him to create RationAle Brewing. Beyond talking through the RationAle Brewing strategic narrative, Jamie and I deeply analyze the driving factors and consumer behavioral trends behind the non-alcoholic beer categorical evolution. Additionally, we talk through how RationAle Brewing, despite being the fastest velocity non-alcoholic beer brand in the set, is staying disciplined as category hype grows. But furthermore…Jamie and I talk about his veteran CPG move to intentionally build RationAle Brewing in a strategic manner that’s efficiently flexible enough to attack when opportunities are right (especially as the company kicks off its largest round of fundraising yet). Lastly, we pontificate a bit around how we see the “future of zero proof” beverages playing out long-term. But these are just a few of the fascinating topics within our recent conversation…

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Mar 25, 202444:44
[MONDAY MINUTE] Interesting Facts About Ohio I Always Tell My CPG Brands Clients | Only In Ohio Meme

[MONDAY MINUTE] Interesting Facts About Ohio I Always Tell My CPG Brands Clients | Only In Ohio Meme

O-H-I-O! Other than that kind of annoying chant, what’s the easiest way to know that someone is from Ohio? They will usually tell you! As an Ohioan myself (see what I did there?), I’ll admit we don’t have special water that allegedly pumps through New York pipes that make their bagels and pizza so great. We also don’t have much sunshine like Florida, but there’s always one interesting insight I share with my startup CPG entrepreneurs about Ohio. Throughout much of the last few decades, Columbus has served as America’s top test market for businesses trying out new products in the real world before deciding to roll them out nationally. The demographics of Ohio’s state capital have always been indicative of the rest of the United States…just on a smaller scale where you can see high-rises and rural farmland within a 15-minute drive.

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Mar 25, 202400:50
TikTok Ban & Supplement Industry Implications | TikTok Shop Strategy | Social Commerce Trend

TikTok Ban & Supplement Industry Implications | TikTok Shop Strategy | Social Commerce Trend

Short-term arbitrage or long-term strategy? Either way…is it time for supplement brands to start hedging those TikTok Shop bets? It shouldn’t be news to anyone at this point, but the U.S. House of Representatives overwhelmingly passed a bill last week that would give ByteDance about six months to divest the U.S. assets of TikTok or face a ban. If that desired result sounds familiar, it’s because the idea of a TikTok ban has roots in the Trump administration. In fact, a deal was even worked out where Oracle and Walmart would become minority owners in ByteDance. That deal eventually fell through, and Trump’s ban was struck down by a federal court. By the time Biden came to office, he rolled back Trump’s executive order and began private negotiations with TikTok. ByteDance was founded in 2012 and is now valued at just under $300 billion. ByteDance is often seen as the world's leading company on algorithms because its flagship apps TikTok (and TikTok’s sister app in China) are powered by commanding recommendation engines that make its apps extremely attractive to users. And it’s those powerful algorithms within the popular Gen-Z app that are at the heart of this ban TikTok national security debate. American lawmakers are concerned about TikTok’s relationship with mainland China. Like with most big Chinese companies, China's ruling Communist Party has set up a party branch at ByteDance. Scrutiny over ByteDance expanded further after the government took a stake in its local subsidiary that awarded the Chinese government a board seat at the subsidiary. So, American lawmakers are worried that the Chinese government will pressure ByteDance to share U.S. data gathered on TikTok, which the CCP could potentially use for nefarious reasons. In this content, I'll also share my strategic game theory breakdown on why banning TikTok has now become a lose-lose situation. Additionally, I share details around the social commerce trend that's powering TikTok Shop. The meteoric rise of TikTok offers supplement brands a plethora of opportunities from brand storytelling to sales expansion and various collaboration strategies. Whether it’s FitTok/GymTok advice, Hot Girl Walks, hydration in those Stanley Cups, or under-desk treadmills, TikTok has defined many health trends. So, it shouldn’t surprise you that as much as 85% of the total U.S. market TikTok Shop sales were with health and beauty products. One of the biggest health category merchants has been RYSE, which I'll share comments from its founder Nic Stella in regards to the power of leveraging TikTok. But don’t let those huge RYSE TikTok Shop sales numbers blind you because there are still risks for functional CPG brands beyond those stemming from the total ban of TikTok. This was something I recently talked about with one of the top CPG industry lawyers Ryan Lewendon. But either way, I don’t see a future without social commerce. It has now become too entrenched, too popular, and too valuable within the U.S. market. Moreover, details were leaked on an Amazon and Meta partnership where customers would be able to shop Amazon’s Facebook and Instagram ads and check out with Amazon without leaving the social media apps. As social commerce continues its rapid ascent, it cannot be overstated enough that supplement brands must adapt their digital strategies to fully exploit these emerging customer relationship channels to maintain a competitive edge in this increasingly dynamic business landscape.

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Mar 22, 202424:04
Energy Drinks Market Needed Her Female-First Lens | Michelle Cordeiro Grant (GORGIE) Interview

Energy Drinks Market Needed Her Female-First Lens | Michelle Cordeiro Grant (GORGIE) Interview

I grew up the typical Rust Belt kid eating mostly a hodgepodge of way-too-sweet, packaged foods and beverages. I’d like to think my “white trash palate” has evolved in the last few decades, but some things are harder to kill than 50 Cent. And you might be asking yourself…what does this have to do with your conversation with the founder of the energy drink brand Gorgie, Michelle Cordeiro Grant? Well…at this past year’s NACS Show, this recovering artificially flavored and sweetened Energy+ drink enthusiast tasted a few naturally sweetened and lightly flavored Energy+ drinks that were great…one of which that left an impact on me was Gorgie. So, naturally I wanted to lean-in further, especially after learning about the founder’s unconventional yet fascinating path to the CPG industry. In our conversation, Michelle explains how that business superpower allowed her to think differently and inspired many key strategic elements within Gorgie. We also breakdown the growing importance woman are playing within the energy drinks market. Plus, take it a step further and explain why it’s the perfect time to apply a much-needed female-first lens to the beverage category. Additionally, Michelle shares important lessons she’s learned in year one building an energy drink brand. Finally, we talk through some untapped exploratory sales channels and what Michelle’s lifestyle branding goals are for Gorgie long-term. But these are just a few of the fascinating topics within our recent conversation…

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Mar 19, 202442:41
[MONDAY MINUTE] Sexual Wellness Supplements Are Booming! | Huge Opportunity for Entrepreneurs

[MONDAY MINUTE] Sexual Wellness Supplements Are Booming! | Huge Opportunity for Entrepreneurs

Maybe making beer that uses vaginal yeast as one of its key ingredients isn’t going to take off anytime soon, but that doesn’t mean sex no longer sells within the CPG industry. We’ve come a long way from gas station boner pills, as the once-taboo sexual wellness space is booming…with the category now widely available at mainstream retailers. From a CPG strategist point-of-view, this is the time for entrepreneurs to remix sexual wellness products that do not meet modern-day consumers’ expectations. Whether that’s in any of the subcategories from sexual performance to reproductive health, remember that having a great product is only the entry fee to compete in today’s CPG market. Embrace the fact that although more consumers are becoming comfortable discussing these intimate topics, you can enhance your brand experience by helping navigate these difficult conversations and leaning into community building strategies.

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Mar 18, 202400:56
"Inch Wide, Mile Deep" Strategic CPG Discussion | Ryan Lewendon (Giannuzzi Lewendon) Interview

"Inch Wide, Mile Deep" Strategic CPG Discussion | Ryan Lewendon (Giannuzzi Lewendon) Interview

CELSIUS and PepsiCo. Nutrabolt and Keurig Dr Pepper. Bloom and Nutrabolt. NOBULL and TB12. What do these deals have in common (besides the fact that you’ve seen me break each of them down in content on my channel)? The only law firm in the world dedicated exclusively to the CPG community, Giannuzzi Lewendon. While insights from those massive deals are weaved into our conversation, I took the law firm’s partner Ryan Lewendon through my gauntlet of A to Z “CPG land” impactful topics. To be completely honest…this is the type of conversation for those REALLY into the CPG industry. Ryan and I talk about how integral the “divine triad of CPG” is…plus the importance of maximizing strategic optionality by building the brand with intention, both from organizational and customer-facing variables. We also ponder what the future of CPG looks like when its data-driven with layers of artificial intelligence. Moreover, we talk about the good, bad, and ugly around the strategic partnerships involving celebrities and the creator economy. Finally, we take that a step further and talk about today’s kingmakers (algorithms) and why the rise of social commerce has its possible downsides within functional CPG product categories. But these are just a few of the insightful topics within our recent conversation…

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Mar 11, 202454:29
[MONDAY MINUTE] "Remixing" Bodybuilding.com REMIX Nutrition Private Label Supplements Has Me Confused 😵‍💫

[MONDAY MINUTE] "Remixing" Bodybuilding.com REMIX Nutrition Private Label Supplements Has Me Confused 😵‍💫

During marathon sessions, gamers are only interested in unhealthy snacks and caffeinated drinks. I mean that was the long-held stereotype, right? Hey…don’t snipe the messenger though, I’m simply attempting to triangulate what the heck Bodybuilding.com is thinking with its recent move! Most functional CPG products do not arrive out of nowhere; they’re remixes of existing ones. And in a few rare cases, remixed CPG product innovations don’t have “easy to understand lineages.” Like when Bodybuilding.com remixes its sports nutrition private label that’s called REMIX Nutrition. Back in August 2020, REMIX Nutrition launched a collection of protein powders with officially licensed Hostess snack flavors like Twinkies, Zingers, and Cupcakes. Now…you guessed it, REMIX Nutrition has been remixed into a gamer-focused supplement line. So, maybe it’s a cheeky way to pay homage to that debunked stereotype?

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Mar 11, 202400:57
Emerging "Better for You" Relaxation CPG Space | Recess Platform Strategy | Ben Witte Interview

Emerging "Better for You" Relaxation CPG Space | Recess Platform Strategy | Ben Witte Interview

Within trendspotting content (when I first started YouTube in 2018), I mentioned how the growing energy drinks market (with all those jolts of stimulation) would eventually lead to a state of overstimulation where consumers would increasingly start shifting more attention towards relaxation. Admittedly, A LOT of my mindshare given to that hypothesis was likely directed towards leveraging a particular trending agricultural ingredient. And this is where synchronicity between Ben Witte (Founder/CEO of Recess) and I likely began. Yet, this phenomenon continued as we both saw the evolving marketplace in a manner that required brands to market the solution, not the ingredient. And I mention all that “separate but intertwined” backstory because our “great minds think alike” dynamic builds extensive layers of insights within our conversation about arguably the next big CPG space. Ben and I will cover how spotting that early marketplace insight helped inform key decisions at Recess that built powerful strategic optionality. We also dive deep into what’s driving the “better for you Relaxation” space and how Recess is intentionally building a broad-reaching platform business within that emerging category that’s inclusive of three distinct product lines, numerous formats, and only slightly nuanced value propositions. Additionally, we breakdown the strategic differences between what is needed to create a new category versus going into an existing category and trying to capture market share. As a special bonus, I got Ben to walk us through his “Recess Flywheel” strategy that has been creating more and more rapid retail growth. But these are just a few of the fascinating topics within our recent conversation…

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Mar 07, 202446:24
Truth Behind RYSE FUEL Growth & Winning on TikTok Shop | Nic Stella (RYSE) Interview

Truth Behind RYSE FUEL Growth & Winning on TikTok Shop | Nic Stella (RYSE) Interview

Many years ago, when I started proclaiming that the best and brightest sports nutrition brands could compete against any large CPG incumbent when it comes to functional food and beverage…oldhead CPG industry folk (especially beverage people) thought I was crazy. But at this point…I can just let that one super important beverage category retail sales scan data do most the talking for me. Energy drink brands that have roots in the supplement industry now account for over $3 billion in retail sales. And while most know the growth stories of CELSIUS, C4 Energy, GHOST, and Alani Nu, by now…I’m going dig a layer just below those brands and highlight a fast-charging challenger that could soon crack the top 10 best-selling energy drink list. In my wide-reaching conversation with Nic Stella, we cover topics like how his ability to spot early internet content and commerce connections have become a foundational element to the growth behind RYSE and RYSE Fuel. We also talk through a few different strategic partnership strategies…from flavor licensing to sponsoring UFC champions and professional sport teams. Moreover, Nic gets REAL about the beverage business and outlines a growing trend that I’ve long dubbed “the great beverage mirage.” Finally, we talk through his decision to lean into TikTok...which made him a key character in the brand story and catapulted RYSE to the top categorical spot on TikTok Shop. But these are just some of the insightful topics we talked about in this episode...

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Mar 05, 202450:40
[MONDAY MINUTE] Will Every Formula 1 Racing Team Have a Supplement Brand Sponsorship in the Future like Energy Drinks?

[MONDAY MINUTE] Will Every Formula 1 Racing Team Have a Supplement Brand Sponsorship in the Future like Energy Drinks?

CELSIUS and Ferrari. Monster Energy and was Mercedes-AMG for many years but is now with McLaren. And you can’t overlook the current top Formula 1 team…Red Bull. It’s probably hard to imagine now, but there was a time in the early 1990s when there weren’t any energy drinks sponsoring F1 racing teams. Similarly, it’s probably hard to imagine now…but in next thirty years we might be saying the same thing about supplement brands. Now…I’m sure every F1 racing team has some type of product allocation arrangement with certain supplement brands, but that’s rookie-level sports marketing tactics compared to the recent THG and Williams Racing partnership. THG Ingenuity will provide Williams Racing with a broad range of services, including across technology, ecommerce, and sustainability, while Myprotein will assist with nutrition. Will this be the tipping point for the supplement industry to dive deeper into F1?

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Mar 04, 202400:59
Is CELSIUS Making Red Bull & Monster Energy Nervous Yet? | Celsius Holdings 2023 Full-Year Update

Is CELSIUS Making Red Bull & Monster Energy Nervous Yet? | Celsius Holdings 2023 Full-Year Update

Billion-Dollar Vibes Only. But does CELSIUS have what it takes to jump either Red Bull or Monster Energy in the next several years? Celsius has now been fully integrated within the PepsiCo distribution system now for the last year and also fully integrated into PepsiCo’s annual planning cycle. Celsius Holdings (NASDAQ: CELH) had quarterly revenue of $347 million, which was up 95% YoY. More importantly, Celsius Holdings smashed through the billion-dollar mark in its full-year revenue numbers. In 2023, the energy drink brand generated $1.32 billion in revenues…which was up a staggering 102% YoY. According to IRI last 52-week data, Celsius was the number one brand driver of unit and sales growth in the energy drink category. Celsius was responsible for 31% of the category growth, driving $1.09 billion in incremental sales. In addition, according to the trailing 4 weeks of IRI SPINS all tracked channel data for the period ending December 31, 2023, Celsius is now securely the third-largest energy drink brand in the category. Its market share went from 4.9% in the third quarter of last year to 10.5% now. And I don’t want gloss over this accomplishment…because it’s the first time in over a decade that an energy drink not named Red Bull or Monster Energy has had a 10% share in the U.S. market. Celsius energy drinks saw massive growth in convenience stores, foodservice (e.g. fast food restaurants), mass retailers like Walmart, the club channel in retailers like Costco, and the Amazon marketplace. CELSIUS is now the best-selling energy drink on Amazon and also number one energy drink brand on Instacart grocery marketplace. So, it’s safe to say that CELSIUS is the official energy drink of the Internet Generation. Additionally, the early international market development groundwork starting to formalize with CELSIUS forming a new relationship with Suntory Beverage & Food and also saw the first major international market expansion under the PepsiCo umbrella, as sales and distribution activity in Canada began in December 2023. It's my opinion that international expansion presents significant opportunity for incremental growth over the next three to five years. With Celsius at basically full distribution now…the TDP growth will have to come from increased items carried per store. Because while the average items carried per store has increased exponentially since the PepsiCo partnership…it still lags Monster and Red Bull considerably. Going forward, Celsius will increase items per store through a combination of product strategies like flavor expansion, scaling the new Essentials lineup, and reintroducing iterated line extensions like fizz-free. Additionally, they will seek more store placements like leveraging cold display activity in Celsius-branded coolers. Finally, I recall a "called shot" by Celsius Holdings CEO John Fieldly three years ago and explain why I wouldn't bet against his crystal ball predictions as “the energy drink category is now a 3-team race.”

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Mar 03, 202413:31
Protein RTDs: ISOPURE ✅ Optimum Nutrition ❌ | GPN Digital Strategy | Glanbia 2023 Full-Year Update

Protein RTDs: ISOPURE ✅ Optimum Nutrition ❌ | GPN Digital Strategy | Glanbia 2023 Full-Year Update

Sometimes when you’re looking for billion-dollar opportunities…you can easily overlook those little details that can change everything. In last quarter’s Glanbia content, you might have noticed my irritation growing because over the inability of Optimum Nutrition to have a protein RTD offering that’s competing closely with the likes of market leaders…Premier Protein, Fairlife/Core Power, and Muscle Milk. But maybe I was looking at this problem from the wrong angle…maybe the answer to competing in the growing protein beverages market is through ISOPURE. But you might be asking why hasn’t ISOPURE been successful to those massive levels either yet? And in this content I'll explore that...and more! Glanbia Performance Nutrition is one of two wholly-owned segments of Glanbia plc (LON:GLB), a multibillion-dollar global nutrition company. The brands in the Glanbia Performance Nutrition portfolio include; Optimum Nutrition, BSN, think!, Isopure, Amazing Grass, and SlimFast. I'll use the recent earnings report, earnings call, and associated news to update you on how Glanbia Nutritionals and Glanbia Performance Nutrition is performing against the complex operating environment. Glanbia Performance Nutrition had 2023 full-year revenue of $1.8 billion, which was an increase 4.8% compared to last year. The brand portfolio continued to have strong pricing power in the market (with it being up 5.4%), but volume was down 0.6%. Additionally, I'll dive deeper into Glanbia Performance Nutrition geographical and product categorial performance (performance nutrition, healthy lifestyle, and weight management). BTW I’m thinking about the creation of a change.org petition for the Glanbia Performance Nutrition division name to be amended to The Optimum Nutrition Company. This one brand alone now accounts for 62% of the total GPN revenue. In 2023, Optimum Nutrition had 17% growth coming from both pricing and volume gains…and U.S. market retail consumption growth in tracked channels was 13.7% over the 52-week period ending December 31, 2023. Additionally, Optimum Nutrition generated over $1.1 billion in revenue in 2023...which makes it the number one sports nutrition brand in the world and also the top sports nutrition brand in 18 different countries. Finally, I talk through a collection of hot takes or things I’m left pondering about Glanbia at this current time. These include where the struggling legacy brand SlimFast sits inside of an evolving weight management category that has seen huge spikes in GLP-1 drugs (e.g. Ozempic, Wegovy, etc.), the think! protein bar brand (which has regained sales momentum after the “Great Shutdown” period) will see an exciting licensing partnership come sometime later this year, and why I think Glanbia is addressing the growth opportunity within the digital channel in the incorrect manner.

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Mar 01, 202415:19
Future of Gut Health | Trends & Disruptive Forces Impacting Microbiome Innovation

Future of Gut Health | Trends & Disruptive Forces Impacting Microbiome Innovation

While “gut health” has transitioned from just another trending topic to an important aspect of health that impacts everything from energy levels to immunity…it also brought with it tons of new market growth and product development within the food, beverage, and supplement CPG categories. Because of this…there’s little doubt in my mind that consumers are certainly more aware and educated than ever about gut health. But even someone that’s been increasingly fascinated (for most of his career) with unlocking the valuable intersection of gut microbiome, technology, and consumer packaged goods, I still get frequently tripped up with the ever-evolving advancements, new marketplace linkages, and gaps in knowledge that those create about the consumer health topic. So, I decided again to ask my good friend Noah Voreades…who’s a scientific researcher and founder of the boutique consulting firm GenBiome that focuses on the intersecting areas of personalized nutrition, gut microbiome, genetic testing, CPG, and digital health. He’s undoubtedly the perfect person to add an exceptional amount of depth to an insightful conversation covering many important trends and disruptive forces that will most-certainly impact the future of microbiome space. Along with catching you up on the evolution of the “gut health” CPG category, we go a step further and talk about some exciting edges of product innovation and explain who might hold the keys to next wave of microbiome ingredient Innovation. We also explain why governmental programs like SNAP and the emergence of “food as medicine” is pushing large retailers to start fully embracing a health/wellness positioning. Additionally, how personalization layers like registered dietitians, wearable data, and artificial intelligence will play a growing role in the category’s future. Plus, we dive into the possible categorical impacts from GLP-1. Finally, we tackle an often-overlooked part of gut health…the small intestine. Which reminds me that I want to quickly show some love to Nimble Science for supporting this piece of content.

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Feb 28, 202456:35
[MONDAY MINUTE] Cognitive Health Trend & Millennial Workaholics | Duality of Supplement Industry Trends

[MONDAY MINUTE] Cognitive Health Trend & Millennial Workaholics | Duality of Supplement Industry Trends

While it doesn’t happen often, duality can be a powerful force when considering the impact of a CPG industry trend. As an example, the decline in brain function is most often associated with the final third of your life. So, that’s why you typically see cognitive health supplement commercials featuring testimonials from older consumers. But spin around and you’ll see the other market opportunity. Purchase intent for cognitive health supplements is nearly the same between Millennial consumers and Baby Boomers. The simple fact that something exists that can give consumers a possible mechanism to achieve “more” within their daily lives is highly desirable. So, the next time someone mentions the cognitive health trend…think just as much about me drinking an energy drink containing Cognizin as you do your grandpa taking those jelly fish supplements.

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Feb 26, 202400:54
Strategic Advisor Behind CELSIUS, Health-Ade, & Athletic Brewing | Caroline Levy Interview

Strategic Advisor Behind CELSIUS, Health-Ade, & Athletic Brewing | Caroline Levy Interview

You’ll hear me lovingly describe Caroline Levy as someone that confidently dances to the beat of their own drum, but what I was referring to was my belief that the most successful people in business have conviction when others don't. Because don’t get it twisted…building conviction isn’t for the faint of heart. Yet, those courageous enough to go through the journey will find that if it’s coupled with passion…the result is electrifying. That statement I think perfectly quantifies Caroline Levy’s renowned career as one of the top equity analysts in the consumer space, trusted board member of brands like CELSIUS Holdings, Health-Ade, and Athletic Brewing, and overall strategic thinker that’s uncovered key consumer trends well before they became mainstream. Sounds right up my alley, right? So, I knew our conversation was going to be electric, but it honestly even exceeded my lofty expectations. Despite covering a ton of categorical ground in a relatively short amount of time…you can expect of deep conversation that spans from the dynamic energy drinks market to the emerging gut health functional beverage space…and even the disruptive non-alcoholic beer category. Moreover, we share our thoughts on why CPG brands should be focusing more on delivering value over volume. Finally, Caroline and I put on our economist hats…look into our CPG crystal balls and share some thoughts around the near-term outlook for beverage deals. But those are just some of the interesting topics we talked about in this episode...

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Feb 22, 202437:33
Amazon Next Moves After FDA Warning Letters Could Forever Change the Supplement Industry

Amazon Next Moves After FDA Warning Letters Could Forever Change the Supplement Industry

Amazon continues to expand its market leadership as the number one retailer of supplements ahead of even physical retail chains like Walmart. In the last year, Amazon has generated about $13 billion in categorical sales…up around 15% YoY. But the word "Amazon" also has created such a visceral reaction amongst much of the legacy supplement industry ecosystem. Depending on the person’s perspective you’re asking, you’ll get a slightly different reason for why they blame Amazon for the demise of the supplement industry (or should I say the previous version of the supplement industry they are nostalgic about). See…what I noticed starting in the mid-2010s was a collection of legacy supplement industry stakeholders growing continually more frantic about changing power dynamics. In fact, fear was quickly building that any semblance of yesteryear’s much tighter gatekept supplement industry ecosystem would soon be extinct. So, what do you do if you’re a cash cow generating legacy supplement industry player losing your gatekeeping powers? You utilize those massive internal resources to put leverage on who you believe ruined the “good ole days.” In terms of “how” these legacy supplement industry stakeholders are deploying those massive internal resources against Amazon…it's both backchanneling and then public-facing "compliance marketing" strategy. Regardless, it all rolls up into these previous gatekeepers calling on Amazon to reign in supplement industry bad actors by suggesting the online marketplace implement more and more compliance hurdles. This effort was arguably successful twice in 2021…as Amazon updated its requirements for listing dietary supplements on the platform. But that doesn’t appear to be enough…because there has been an uptick of public-facing pressure towards Amazon by these legacy supplement industry stakeholders. And even if Amazon hasn’t responded yet…this strategy might have done one better by indirectly getting the FDA’s attention, hence the three separate warning letters sent to Amazon from 8/18/23 to 12/20/23. But to help add some depth to the compliance side and balance my business perspective, I asked Brian Yam, who has two decades of regulatory affairs and quality assurance experience across every side of the supplement industry, to join me in a recent conversation. We deeply examined topics such as why the FDA is placing pressure on Amazon, if this could eventually lead to a market-bending precedent across today’s retail models, why FDA might be more effective placing proxy enforcement pressure elsewhere, plus we go talk about the under the radar short- and long-term possible implications to all supplement industry stakeholders.


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Feb 20, 202440:35
[MONDAY MINUTE] Kim Kardashian's Next CPG Brand Investment Will Be In High-Protein Chocolate

[MONDAY MINUTE] Kim Kardashian's Next CPG Brand Investment Will Be In High-Protein Chocolate

14 months after co-founding the private equity firm Skky Partners, Kim Kardashian finally took a bit of her own advice to "get your f*cking azz up and work." It was recently announced that the first capital investment for Skky Partners will be to acquire a “significant minority stake” in truffle-infused hot sauce and condiment brand TRUFF. Now…stick with me here for a moment because I’m going to connect some dots that will lead to a future Kim K investment. Skky Partners notes that food and beverage CPG won’t be its exclusive investment focus, but this TRUFF deal got me thinking about how Oprah loves truffles. Oprah also has her annual “favorite things” list, but this is about Kim K. So, what’s one of her favorite things from this year? In a Vogue interview, she shouted out Mid-Day Squares.

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Feb 19, 202400:58
Serendipitous Journey of an Energy Drink Brand Entrepreneur | Samuel Keene (Juvee) Interview

Serendipitous Journey of an Energy Drink Brand Entrepreneur | Samuel Keene (Juvee) Interview

In my world, hearing about (this or that) successful brand or person launching a new energy drink has become an almost weekly occurrence. I could understand how a casual market observer could easily get desensitized to it…or maybe even a bit dismissive like some pundits seem to have gotten about the trending functional beverage category. But I’ve tried to pride myself on deciphering what’s noise from who’s actually making music. When the energy drink brand Juvee launched in October 2022, I could tell there was some intent behind pairing the right audience and right product…plus choosing to launch with (and continue to support early) instant delivery partners like GoPuff. Additionally, what I believed was the smart decision to not make Juvee explicitly about the esports/gaming market despite having unique provenance within the hardcore of that growing niche market. But it was after an industry friend in common connected me with Sam Keene, Co-Founder of Juvee…that all my earlier thoughts started to make a lot more sense. In our conversation, Sam and I cover everything from how his early years at Red Bull had an outsized impact on the creation of Juvee a handful of years later. We also share insights about the growing importance of having an established audience/community when building within the CPG industry. Additionally, we talked through the interesting details behind last month’s acquisition of Juvee by the beverage portfolio Sprecher Brewing. Moreover, we explore what Sam’s most excited about post-deal…from the Juvee growth plan to his new CMO role being able to bring stories to life for each of the Sprecher brands. But those are just some of the interesting topics we talked about in this episode...

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Feb 15, 202443:38
Billion-Dollar Activewear Brand Alo Moves into Supplements | Alo Stackable Wellness System

Billion-Dollar Activewear Brand Alo Moves into Supplements | Alo Stackable Wellness System

Goodbye activewear brands just selling apparel and/or footwear. Hello activewear brands that are no longer constrained by their original categorical boundaries. From Nike to lululemon to Alo, these activewear brands aren’t just selling apparel…they’re selling a lifestyle. But I’ve started to pay closer attention to the strategic decisions at Alo of late because the brand keeps moving further into my domain…which is the emerging and intersecting categories of functional food, beverage, and nutritional supplements. I’m not going to provide all the product extension breadcrumbs here, but Alo reportedly started to originally develop a line of ingestible beauty and wellness supplements in 2019. With the pandemic-aided “work-from-home athleisure fashion trend” powering those next few years, Alo smartly put that project on the proverbial focus back burner. Then, in August 2023…Alo officially launched its Stackable Wellness System. The initial three ingestible beauty and wellness supplement SKUs were all utilizing a single-serving gel pack format…containing vitamins, minerals, and “hormone-balancing” adaptogens that addressed daily needs in skincare, immunity, and physical recovery. Along with the fact that most of these products sold out on Day 1, Alo also created a retail partnership with Sephora to sell its beauty and wellness segment. Feeling good from early feedback on its product extension strategy, Alo decided to double-down on the Stackable Wellness System last month by introducing five more SKUs…this time in the traditional capsule format. Those now eight SKUs of the Alo Stackable Wellness System (great or not) are only the entry fee to compete in the market. Instead, winners/losers in the broader consumer goods space (let alone CPG) are largely determined by what you build off those great products. This is why the smartest companies are focused less on product-based differentiation, as they know that competing on that alone will only provide a transient advantage. With today’s fast-follower low barriers-to-entry supplement business landscape, your best product features are too easy to copy and an insufficient defensible moat. The solution is having a bold strategic narrative…because that enables brands to create a unique story that will guide their entire internal and external business activity. Alo is a brand with a bold strategic narrative. In today’s marketplace, younger consumers are increasingly looking for visionary brands that are radically and bravely changing both our individual and global cultures with exciting and bold new lifestyle choices. It’s that strategic narrative boldness that attracts these younger consumers, but also provides a distinctiveness that’s highly defensible from competitive landscape perspective. By continually and almost gradually changing shape to predict its customers’ needs, Alo seeks to seamlessly become truly essential, visible, and celebrated parts of its customers’ lives without them even realizing it.

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Feb 13, 202409:51
[MONDAY MINUTE] Situationships & Sustainability: 117-Year-Old Candy Company's Strategy to Win Love From Gen Z

[MONDAY MINUTE] Situationships & Sustainability: 117-Year-Old Candy Company's Strategy to Win Love From Gen Z

When legacy CPG brands hear about trending movements like leveraging upcycled ingredients, I imagine all the oldheads sitting in a conference room acting like a scene from The Office. Oh…but then there’s the 117-year-old family-owned Spangler Candy Company, that’s headquartered in the great state of Ohio. See...the candy maker must have recently instituted “bring your Gen Z granddaughter or grandson to workday” because it just invented the perfect circularity strategy. The Spangler Candy Company produces arguably the most beloved Valentine’s Day product…those candy conversation hearts. Sweethearts are individually stamped with phrases using specialized but antiquated equipment. This printing process often creates mistakes like blurry or splotchy words. This year, the brand is spinning those mistakes as intentional, upcycling those unreadable candies into their own dedicated “Situationships” box so that young people can “give the gift as blurry as their relationships.”

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Feb 12, 202400:60
Premier Protein Must Flex This Product Strategy Advantage | BellRing Brands 2024 Q1 Update

Premier Protein Must Flex This Product Strategy Advantage | BellRing Brands 2024 Q1 Update

Premier Protein just confidently deployed a product strategy that could be key to its future growth…now it just needs to get the execution details right! BellRing Brands (NYSE: BRBR) is a portfolio that owns a collection of convenient nutrition brands like Premier Protein and Dymatize Nutrition, which was previously wholly-owned by Post Holdings. A fast-paced and busy lifestyle is pushing consumers to switch to quick and healthy meal options. This has resulted in above average categorical growth rates and increased household penetration of RTD protein shakes that promote active lifestyles. Additionally, powders are becoming more mainstream, and category proliferation has created an environment where more consumers are purchasing both every day and performance nutrition positioned protein products at grocery stores and mass retailers. Bellring Brands had a strong 2024 Q1 with net sales reaching $430.4 million, which was up 18.7% YoY. Premier Protein (~83% of BellRing Brands total revenue) grew 18.9% YoY, which came from large volume increases. Dymatize Nutrition was up 20.9% YoY also stemming from volume increases. Moreover, I provide three deep dives into the functional CPG portfolio's "hero SKU families" of Premier Protein RTD protein shakes and Premier Protein and Dymatize protein powders. As I’ve detailed in the past, Premier Protein has been partnering with the biggest and most reputable players in the industry to make large CAPEX investments…which has now given them a scalable, regionally diverse supply chain that will enable many years of robust growth. And you might be thinking, “what does that have to do with Premier Protein deploying a new product strategy?” Premier Protein has dabbled in a seasonal flavor strategy (on and off) for years, but it’s the recent Salted Caramel Popcorn launch that I believe signals that they’re advancing into a more dynamic LTO flavor strategy. This “drop culture” mentality is used A LOT within the performance nutrition powders (and energy drinks), but never in the protein beverage space. Why? Well…Premier Protein isn’t the only brand that has been dealing with manufacturing capacity constraints around aseptic low acid processing to produce RTD shakes over the last several years. That is an industrywide challenge…which means every other competitor doesn’t have enough capacity for its already top-selling products, so they will continue being gun shy on launching new innovations (flavors or ingredient decks) when the format would the same. That then makes Premier Protein having enough manufacturing capacity to not only meet its expected growth, but allow for innovation aggressiveness, a competitive advantage.

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Feb 07, 202413:20
"Church of Dr. Andrew Huberman" | Business Impact of Christianity Declining in Modern Societies

"Church of Dr. Andrew Huberman" | Business Impact of Christianity Declining in Modern Societies

How crazy is it to think that the “Church of Dr. Andrew Huberman” has grown to millions of regular worshippers in only a few short years? And this is at a time when attention spans are getting shorter, Americans’ trust in scientists is declining, and misinformation seems to be rampant...but maybe that’s actually a key part of this recipe for success. Admittedly, I’m not a Huberman Husband or have been indoctrinated into Hubermania (yet)…but it’s the broader cultural phenomenon, that’s powering the “Huberman Effect” which I’m acutely aware of (and been enormously fascinated by). Only a few decades ago, a Christian identity was so common among Americans that it could almost be taken for granted. As recently as the early 1990s, about 90% of U.S. adults identified as Christians. But today, about two-thirds of adults are Christians. The change in America’s religious composition is largely the result of large numbers of adults switching out of the religion in which they were raised to become religiously unaffiliated. But don’t confuse religiously unaffiliated with atheism…because Americans do not suddenly have a lack of belief. The first law of thermodynamics teaches us that energy cannot be created or destroyed, only altered in form. So, if that energy “cannot be destroyed” then where did it go? Christianity began getting replaced with secular institutions like sports, social tribes, and political parties…these communities (and many others) are all brands, and America is a strong believer in brands. But this content will explore how Dr. Andrew Huberman plays into this disruptive cultural phenomenon and why I think entrepreneurs are “missing the forest for the trees” when they think about not only Dr. Andrew Huberman but really any attention-getting personal brand.

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Feb 06, 202412:37
[MONDAY MINUTE] Children's Supplement Market is Growing Fast | Are Kid Fitness Influencers Coming Next?

[MONDAY MINUTE] Children's Supplement Market is Growing Fast | Are Kid Fitness Influencers Coming Next?

There are rules that need no introduction. They're not documented in books nor authorized by law, and still, they govern our daily lives. The problem with unwritten rules is they’re unwritten…and that leads to misunderstandings, especially in a constantly changing world! Take the supplement industry…there was this unwritten rule that children were generally off limits. That is unless that brand was owned by Big CPG. Then, the “Great Lockdown” happened in 2020! A LOT of converging forces produced a perfect storm of opportunity within the kid’s health supplement market. In the last almost three years, the supplement subcategory has grown by almost 50 percent…and that demand is not expected to slow. What’s next? I expect more kid supplements geared towards brain health and stress support…and don’t be surprised if you start seeing pre-teen health influencers!

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Feb 05, 202400:57
Tom Brady Merges TB12 With NOBULL | Can NOBULL Become a "Complete Wellness Lifestyle Company"?

Tom Brady Merges TB12 With NOBULL | Can NOBULL Become a "Complete Wellness Lifestyle Company"?

Footwear, apparel, and now nutrition…does the Tom Brady-infused NOBULL have what it takes to build a “complete wellness company”? To be fully honest, it’s been maybe four or five years since I’ve thought deeply about the TB12 brand. While the ideological foundation of the brand was (and still is) compelling, I became disinterested relatively quickly…as the level of execution required to bring that brand distinctiveness to life just wasn’t initially apparent. But my TB12 interest was reinvigorated this week…along with a bolstered belief that it could potentially have an intriguing future, after I read trending news headline. Tom Brady has struck a deal to merge his wellness company, TB12, and his apparel line, Brady Brand, with the sportswear brand NOBULL. The combined company will retain the NOBULL name…and Tom Brady becomes its second-largest shareholder after Mike Repole, who bought a majority stake in the company in July of 2023 through his investment firm, Impact Capital. So, what would an astute businessman like Mike Repole (i.e. turned Vitaminwater and BodyArmor into household beverage names) want with TB12 that was rumored to be generating less than 8-figures in revenue (CPG segment) and was losing tons of money on the bottom line. Firstly (and most obviously), Mike Repole is acquihiring Tom Brady. This isn’t Mike Repole’s first rodeo with this “sports marketing” strategy…as he iterated Gatorade’s playbook in the 2010s after noticing consumers spending more time on social media platforms and becoming more involved with “celebrity” parasocial relationships. So, that’s at least partly why BodyArmor decided to have athlete investors over the typical athlete spokespeople…thus allowing them to leverage their growing authentic microphones and public interest in an athlete’s life away from sports. But beyond the obvious interest in having one the greatest winners of all-time (Tom Brady) on his team, Mike Repole had the same “diamond in the rough” feeling that I got many years ago around the TB12 brand. And no, I’m not talking about the supplement product line…because those (great or not) are only the entry fee to compete in the market. With Tom Brady much more intentionally focused and engaged on business, the holistic wellness methodology of TB12 turns bolder and has more defensible distinctiveness. But then you also align it with the larger NOBULL strategic narrative…plus you can’t forget the added benefit of the CPG industry savviness from Mike Repole, and there’s a real possibility something extremely special could happen within this pursuit towards becoming a billion-dollar “complete wellness company.” From Nike to lululemon to even Alo (which is a brand I’ll discuss further on my channel very soon), these activewear brands aren’t just selling apparel…they’re selling a lifestyle. Reorienting around wellness and adding Tom Brady’s star power gives NOBULL a lot of strategic optionality throughout its ambitious build process…which is great and most likely directs them towards an IPO in the relatively near future.

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Feb 01, 202412:47
[MONDAY MINUTE] Celebrity Packaged Goods Trends Goes Frozen

[MONDAY MINUTE] Celebrity Packaged Goods Trends Goes Frozen

When you think about the celebrity packaged goods movement, which food/beverage categories come to mind first? I’m going to guess that very few of you had frozen dinners pop up in your head…but maybe that changes soon. Manufactured in partnership with Golden West Food, and available exclusively at Walmart, “MasterChef” Gordon Ramsay, Guy Fieri, and several other celebrity chefs are bringing their colorful charisma to the frozen section. For many years, frozen food companies attempted to attract younger consumers with healthier and updated options. And it seemed like all that product innovation would go mostly unnoticed…that is until March 2020. The new and improved frozen foods section became a huge winner in the “Great Lockdown” era. So, what’s next? I guess offering consumers the ability to essentially reach right into the TV and grab what that celebrity chef is cooking!

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Jan 29, 202400:57
CEO Hints Further About THG Nutrition (MyProtein) U.S. IPO | THG (The Hut Group) 2023 Q4 Update

CEO Hints Further About THG Nutrition (MyProtein) U.S. IPO | THG (The Hut Group) 2023 Q4 Update

Did we just become best friends Matthew Moulding? Because any CEO of a multibillion-dollar company that throws “Easter eggs” into an internal companywide video and then shares it publicly on Linkedin is my kind of guy! THG (aka the company formerly known as The Hut Group) recently updated the public markets by releasing its 2023 Q4 earnings report. I’ll be utilizing that financial information, along with notes I took listening to the earnings conference call, and any relevant publicly disclosed information to obviously update you on the recent performance of THG Nutrition division that includes the world's largest online sports nutrition brand MyProtein, but also utilize everything to provide insights surrounding the global supplement markets. For those unaware, THG is self-described as “a vertically integrated, digital-first consumer brands group, retailing its own brands in beauty and nutrition, plus third-party brands, via its complete digital commerce solution, Ingenuity, to an online and global customer base.” During the fourth quarter of 2023, divisional revenue for THG Nutrition was approximately $210 million, which was down 3.9% YoY. If we look at THG Nutrition revenue for the entire 2023 calendar year, the segment generated about $831.5 million…which resulted in flat YoY growth. So, what’s up with these poor growth rates when the overall global supplement market grew in 2023? I'll dive into several things going on here at MyProtein including: its global digital sales channel strategy and retail partnerships in physical retail, integration of supply side acquisitions, the effect the previous pricing strategy had on the sports nutrition brand's customer file, and let’s just say A LOT is riding on the success of the MyProtein global rebrand. Finally...I guess at the end of each year CEO Matthew Moulding prepares a recap video that he plays at the beginning of its big staff presentation meeting. I’ll be the first to admit that I know very little about David Beckham and Robbie Williams, so I’m likely not doing all the middle fingers to the British media or additional business “easter eggs” justice that were in the whole video, but after both faced their own bouts of criticisms from the British tabloids, they chose to escape in the United States. See where I’m going there…I spun you around in circles, just to give you further support for my mid-2022 prediction that THG would spin off its “nutrition segment” into a standalone public company and that new entity would IPO in the U.S. markets because of the more favorable multiples. If you’ve listened to the last few earnings calls, analyst Q&A sessions has seen CEO Matthew Moulding go from nervous laughs (and denying acquisition offers) to eventually confirming those “parts are worth more than the whole” M&A offers…and now he’s full-on stating that THG has internally adjusted accounting/finance requirements and American IPO optionality is improving by the day. While THG hasn’t taken definitive action yet, things seem to be progressing relatively quickly and you never know when an S-1 filing with the SEC might show up.

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Jan 22, 202412:59
[MONDAY MINUTE] How Oobah Butler Created the Number 1 Sports Drink on Amazon 🤮

[MONDAY MINUTE] How Oobah Butler Created the Number 1 Sports Drink on Amazon 🤮

I’ve declared in the past that CPG brands must pivot from linear thinking to advancing a truly circular economy. Yet, I’m 100% sure I wasn’t envisioning this strategic transition in the same way as the sports drinks brand Release. Where does “the world's first fully reusable energy drink” source its “upcycled functional ingredients”? At the same place it became a top-selling beverage brand…Amazon. Confused? Well…whether Amazon delivery drivers simply have trouble finding public restrooms or they are indeed being pushed to unrealistic productivity standards, those smiling trucks are usually filled with water bottles of urine. So, prankster turned CPG entrepreneur Oobah Bulter decided that “material” would be perfect for a sustainable sports drink. After that, he added some slick branding and Amazon marketplace strategies…and the algorithm did the rest of the work.

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Jan 22, 202400:57
Nutrabolt (C4 Energy) and Bloom Nutrition Deal Explained | Implications to the Supplement Industry

Nutrabolt (C4 Energy) and Bloom Nutrition Deal Explained | Implications to the Supplement Industry

I think my base case for last year's Nutrabolt "outlandish prediction" is still sound, albeit I was too bullish timing-wise on the IPO markets. But it's what I mentioned at the very end of that prediction…about Nutrabolt wanting to build the health and wellness version of The Kraft Heinz Company, which also aligns to the inspiration for this content. On January 17, 2024, Nutrabolt (makers of C4 Energy) announced that it made a significant minority investment into Bloom Nutrition. The investment provides Nutrabolt with an ownership stake of approximately 20%, making the company Bloom's largest investor. It’s important to note that the Bloom co-founders (Mari Llewellyn and Greg LaVecchia) will remain the majority shareholders. This investment is part of a larger $90 million financing that comes at a perfect time for the TikTok viral Greens & Superfoods powder that has evolved from simply being a successful community-driven digital business to now a top-selling wellness product across mega-omnichannel retailers like Target and Walmart. This resulted in Bloom becoming one of the fastest-growing brands in supplement industry history. In this content, I'll breakdown the investment from both brand perspectives...and discuss what it could mean to the broader greens supplement market.

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Jan 18, 202414:36
Stick Pack Supplements Trend & Increasing Dopamine Hits | CPG Packaging Design Psychology

Stick Pack Supplements Trend & Increasing Dopamine Hits | CPG Packaging Design Psychology

In the late-2010s, the supplement industry experienced a commercialization paradigm shift with stick packs because of what I dubbed the “Liquid I.V. Effect." What was once a packaging format most notably utilized for product sampling in the supplement industry became a foundational strategic element of a billion-dollar supplement brand. Now…it’s undeniable that stick packs have quietly become a ubiquitous packaging format central to many leading supplement products, as its value comes from its ability to live harmoniously between the needs of brand marketers and consumers. But is it possible that supplement industry stakeholders are getting too hooked to that trending convenient packaging format? CPG packaging is more than a shipping container or a specifically designed product holder…it’s a vessel that has huge effects on how a consumer feels about your brand. And that has A LOT to do with the “reward center” of our brains and the core of reinforcement that creates our behavioral patterns…dopamine. Now…I’m fully aware and even a bit complicit in the fact that the multitrillion-dollar CPG industry are master manipulators at creating dopamine hits. Whether it involves advertising strategies or visual elements of packaging…and even how the larger shopping experience is presented…its well documented that all these create dopamine hits with consumers. But it wasn’t until I had a conversation with an industry friend a few years ago at SupplySide West that he opened my eyes to the role stick packs could be playing in all this…especially with younger consumers. Gen Z consumers have had a smartphone in their hands and access to social media accounts since they were born, which has made them dopamine junkies. Companies using algorithms to leverage our dopamine-driven reward circuitry aren’t going anywhere…anytime soon. And it’s that marketplace reality which could be prompting certain packaging considerations that feed the growing consumer demand for more dopamine hits. Consider what happens when supplement consumers rip open a single serving stick pack daily compared to merely cracking open a 30-serving canister of pre-workout powder once. It's all about speeding up the frequency of those “pleasurable events.” That being said, the consideration of stick packs might not be warranted in every new product development discussion…and also just putting your powder in a stick pack won’t guarantee success. It’s important to remember that there’s a much bigger design psychology at play here…one that must be understood when unlocking the dopamine map of your potential customers.

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Jan 16, 202409:05
[MONDAY MINUTE] Didn't Muscle Milk Learn This Lesson Already? | Muscle Milk Plant Protein Shakes

[MONDAY MINUTE] Didn't Muscle Milk Learn This Lesson Already? | Muscle Milk Plant Protein Shakes

Milk is a liquid produced by mammals, and a plant, as I’m sure y’all realize, is not a mammal. Big Dairy is paying me to say that plant milks are HAHA just kidding. But the controversy around this nomenclature isn’t new. In fact, twelve years ago…the FDA even issued a warning letter to Cytosport about the fact that their flagship protein supplement, Muscle Milk, contained no actual milk. Hold on though because this content is about to get really meta. PepsiCo just announced that it is bringing Muscle Milk into the plant-based category. And I got an early chance to try these Muscle Milk Plant Protein Shakes at the NACS Show. Regardless of what I thought about the liquid…is Muscle Milk setting itself up with a Groundhog Day situation?

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Jan 15, 202400:51
2024 Sports & Active Nutrition "State of the Union" | SPINS x J. Schall Consulting

2024 Sports & Active Nutrition "State of the Union" | SPINS x J. Schall Consulting

I want to welcome you back to another episode of what I’ve branded Pivotal since these interview-style segments tackle impactful CPG industry topics and lessons from the business leaders that live it EVERY DAY! At the end of 2022, when I pitched the idea to host these collaborative holistic categorical deep dive sessions with the wellness-focused data company SPINS, Scott Dicker (Market Insights Director - SPINS) and I knew we wanted to start close to our passions with a sort of sports/active nutrition industry “State of the Union.” Well…believe it or not, we are already on the fifth quarterly installment of this series…and figured it was best to give you an updated version of that original content where we run through a collection of different trending sports/active nutrition themes. In our conversation, we cover everything from the changing of the guard and fragmentation within massive categories like energy, hydration, and protein, to why the “Huberman Effect” is causing many to reorient their consumption behaviors towards healthspan optimization. Additionally, we explain how huge opportunities will come to unlocking the “post-work but before bed” wellness occasion. Moreover, we explore how overlooked ingredients of the past are getting a reframed second life with today’s active lifestyle consumers. But these are just a few of the insightful categorical themes in our recent conversation…

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Jan 11, 202448:45
Energy Drinks Brand "Build Process" Taking Billions From Red Bull & Monster Energy

Energy Drinks Brand "Build Process" Taking Billions From Red Bull & Monster Energy

During the 15-year stretch from 2004 to midway through 2019, the top three brands within the U.S. energy drinks market went unchanged (e.g. Red Bull, Monster Energy, and Rockstar Energy). But then Bang Energy blasted past Rockstar Energy that summer with a staggering 700%+ YoY growth rate…ending the 2019 calendar year at around $1.2 billion in sales. This sent shockwaves across the packaged beverage space for many reasons, but I want to focus on a particular aspect of the “Bang Effect.” It’s time we all give Bang Energy the respect it deserves for what the brand did in the late 2010s to totally disrupt the energy drinks market. A great tasting “carbonated water with sugar or sweetener, flavor, and caffeine” just wasn’t going to be enough anymore…because energy without the “plus” had started looking boring to the market! Bang Energy put Energy+ on the map, which forced Monster and Rockstar into defensive product strategy mode, and at the same time conscious (or subconsciously) inspired many sports nutrition brand entrepreneurs to take the leap from pre-workout powders to energy drinks. While I might be a bit biased considering my professional background, I've always believed the best and brightest sports nutrition brands could compete against any large CPG incumbent when it comes to functional food and beverage. Even if they won’t ever admit it publicly, large energy drinks incumbents are worried about the “often imitated, never duplicated” influential epicenter of the CPG industry…sports nutrition. Why? Well…it reminds me of something I said in a recent piece of content about the sports drinks market. Gatorade had been accustomed to fending off direct attacks from known competitors. However, what happens when the market leader must fend off a rapidly multiplying amount of legitimate indirect attacks from lesser-known competitors? Now…swap Gatorade for Red Bull and Monster Energy. What Red Bull and Monster Energy want is for new categorical entrepreneurs to follow existing energy drink category playbooks (that they created). Following that “build process” within today’s energy drinks market is almost guaranteed to fail because traditional category leaders understand how to compete against it. But now…sports nutrition brands have started to change the game. And the proof is in the pudding for how disruptively successful this “build process” has become within the energy drinks market. If we took the top 10 energy drink brands in 2023, you’d have half that were in one way, or another incubated within the sports nutrition space (e.g. Celsius, GHOST, C4 Energy, Alani Nu, and Bang Energy). If we just take those five “incubated in sports nutrition” market leaders…they generated over $3.6 billion in retail sales in 2023. Finally, consider the strong list of powdered pre-workout energy supplement platforms that are below those Top 10 energy drink brands…and in different phases of beverage commercialization strategies. A collection of names like RYSE Fuel, Bucked Up Energy, G Fuel, Recon1 Energy, and Jocko Go…that’s an aggregate of several hundred million more in energy drink retail sales. And I won’t even go one more a layer deeper because you get the point here…as this “changing of the guard” within the energy drinks space is only getting started.

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Jan 08, 202411:30
[MONDAY MINUTE] Amazon Reviews, Generative AI, & Optimum Nutrition Gold Standard Whey 🤔

[MONDAY MINUTE] Amazon Reviews, Generative AI, & Optimum Nutrition Gold Standard Whey 🤔

Just when you thought Amazon couldn’t up its artificial intelligence game any further, the retailing giant introduced one of its most influential resources yet. No, Autofac…I mean Amazon isn’t letting the machines lose yet, but they did introduce generative AI to one of the oldest and most important features on Amazon…customer reviews! To see this in action, let’s look at Optimum Nutrition Gold Standard Whey. The first generative AI layer you’ll notice is with an overall review summary, which is super helpful when a product has over 200K customer reviews. The second generative AI layer summarizes reviews tied to a specific common trait and then allows you to easily see the positive vs. negative customer sentiment. For supplement brands selling on Amazon, don’t get caught sleeping because this will undoubtedly affect your conversion rates.

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Jan 08, 202400:54
Quest Nutrition Has Massive Potential in Salty Snacks | Atkins Weight Management Category Struggles

Quest Nutrition Has Massive Potential in Salty Snacks | Atkins Weight Management Category Struggles

The Simply Good Foods Company isn’t salty with the recent performance at Quest Nutrition, but it does want more. In this latest episode, I'll utilize the 2024 Q1 Simply Good Foods Company (NASDAQ: SMPL) earnings report, earnings call, and supplemental presentations that were filed on 1/4/2024 as the backdrop to provide broad nutritional snacking market insights. In Q1 of fiscal 2024, both Atkins Nutritionals and Quest Nutrition performed well against the categorical competitors in tacked channel retail takeaway, with Quest Nutrition specifically having strong YoY growth at 20%. What's at the heart of the Quest Nutrition success? Quest Nutrition is still known for the original Quest Bar. That means the company needs the bar business to be healthy for any of this innovation risk to make sense. Here’s the good news…the core bar business is growing. In fact, this year it had tracked channel retail takeaway growth of 16%. Additionally, Quest Nutrition has proven it's one of the few brands that can successfully extend across multiple product forms...and its customer base expects them to come into an indulgent snacking category and flip it into great tasting offerings that are higher in protein (and lower in the stuff that you don’t want like carbs and sugar). The snacks segment of Quest Nutrition, which now accounts for about 45% of all measured channel retail sales, saw retail takeaway growth increase 24%. But if we take this one layer deeper…the salty side of the Quest snacks segment had quarterly retail takeaway growth of about 45%. Quest chips now make up just over 20% of the total Quest Nutrition revenue. Furthermore, around 30% of new users to the brand have come from chips. Salty snacks are where I’d argue the most excitement lies, but it’s just one bullish brand layer stacked on many other categorical ones within the Simply Good Foods Company. I think most people forget about how innovative Quest Nutrition has been since the very beginning of the brand, and its constant product innovation that has been a key driver of new buyers into the brand and increased the household penetration. So, I'd expect Quest Nutrition to be eying up several sizable conventional salty snack categories that have multichannel potential. Finally, I run through the what all the weak brand performance at Atkins Nutritionals means and what actions the company is taking to change it…especially against the backdrop of GLP-1 weight loss solutions. As part of the new CEO’s assessment of what is needed to unlock the high potential of the Atkins Nutritionals brand, a comprehensive revitalization plan was developed based on extensive consumer research.

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Jan 04, 202410:58
[MONDAY MINUTE] America Runs On CELSIUS | Favorite Energy Drink of Congress

[MONDAY MINUTE] America Runs On CELSIUS | Favorite Energy Drink of Congress

Republican and Democrat congressional members can’t agree on almost anything anymore. That is unless we are talking about their favorite energy drink. Vending machines sprinkled across government buildings are stocked exclusively with CELSIUS. One government staffer noted, “Congress would probably go into a government shutdown without CELSIUS.” And maybe that’s the real reason Dunkin’ recently decided to authorize merchandising the energy drink brand in store locations…because they knew “America runs on CELSIUS.” So, not only are the energy drinks used to fuel workouts and celebrate life’s best moments, CELSIUS also plays an important role in providing our nation’s lawmakers with essential energy to carry out critical work. And that diverse fandom might seem like it happened overnight, but don’t get it twisted CPG industry entrepreneurs it took CELSIUS almost two decades to become the approachable lifestyle brand it is today!

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Jan 01, 202400:59
Keurig Dr Pepper (KDP) and Premier Protein Deal Prediction | DSD Must Embrace Protein Beverages

Keurig Dr Pepper (KDP) and Premier Protein Deal Prediction | DSD Must Embrace Protein Beverages

What happens when you combine the number one brand in the convenient nutrition category, a sales channel revenue diversification opportunity with 150K U.S. locations, and a beverage portfolio that’s recently shown an affinity for strategic partnerships? If you’re an avid follower of my quarterly content that analyzes the performance of the functional CPG brand portfolio BellRing Brands (NYSE: BRBR), that introductory word problem might sound vaguely familiar. And that’s because at the very end of last month’s video, I stated Keurig Dr Pepper (NASDAQ: KDP) needs to consider entering into a strategic sales and distribution partnership with Premier Protein. The protein beverage U.S. market size is estimated to be somewhere just north of $6 billion. Outside of private label penetration, the top five largest protein beverage brands in the U.S. market would be Premier Protein, Coca-Cola owned tag team of Core Power and Fairlife, Ensure (owned by Abbott Labs), Boost (owned by Nestle), and Muscle Milk (owned by PepsiCo). If you look at the entire protein beverages market, multipack SKUs drive the bulk of the sales activity...but I’m not sure that’s ideal long-term from a consumer or market outlook perspective. When you hear players like Premier Protein talk about how the protein beverages have less than half the household penetration of protein bars, it’s used to signal a huge long-term growth opportunity. While I agree with this…you also must realize a key driver of that is the consumer cost of entry. How can brands like Premier Protein create a lower cost of entry for consumers to trial protein beverages? They need to embrace a DSD distribution strategy. With stating that…I’m also acknowledging that’s easier said than done, and it’s a two-way street that requires more of the DSD distribution network to embrace the protein beverage category. I’ve been publicly predicting KDP needs to get more protein beverage exposure since October 2021. It's that 26-month-old YouTube video that’s a bit of a cult classic within the beverage CPG space because it correctly predicted the Nutrabolt/C4 Energy deal, the La Colombe deal, and the Athletic Brewing investment. Protein was mentioned as one of the five beverage categories KDP needed to invest in over the next three years, but I didn’t predict Premier Protein as the conviction M&A target. In fact, it was the only beverage category I didn’t give a prediction because I thought protein input type created too much strategic optionality. But with KDP CEO changes upcoming in 2024, I've adjusted my previous thoughts. KDP typically seeks out sizable deals that are more complex, resulting in portfolio expansion and distribution scale. As an example, when KDP did deals for C4 Energy, La Colombe, and most recently Electrolit to fill category white spaces…those new brands create more scale and expand the KDP portfolio, which makes its capabilities become stronger. So, its drop sizes get bigger, merchandizing gets more impactful, KDP can service each store more frequently, and its commercial relationships tighten. One of the biggest areas of impact from these recent deals has been in the convenience channel. Sounds like just the thing that Premier Protein can benefit from…and they’re also the type of brand that can help feed the KDP flywheel, right?

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Dec 31, 202315:15
Sports Drink Market Shakeup | Insane PRIME Growth, GHOST Hydration Launch, & Electrolit KDP Deal

Sports Drink Market Shakeup | Insane PRIME Growth, GHOST Hydration Launch, & Electrolit KDP Deal

After decades of Gatorade sports drinks market dominance, blurring categorical lines and emerging legitimate competitors have begun to create one of the most intriguing functional CPG spaces to watch in the coming years. The overall U.S. market size of sports drinks is just shy of $13 billion…growing around 12% YoY. Increases in total household penetration, average spending per household, purchase frequency, and spends per unit/trip are driving the sales growth. The current market leader is still Gatorade, at 60% of the categorical share. But there’s no shortage of action within the sports drinks, isotonic beverages, electrolyte packets, hydration products…or whatever else people call them category. And it’s that increasingly difficult task of labeling the functional CPG category that’s arguably at the center of this sports drink market shakeup. Because Gatorade both invented modern-day sports drinks and successfully maintained being the category creator for the beverage category's first half-century, the PepsiCo owned brand pretty much defined every aspect of that category’s rulebook. The biggest threat to Gatorade over the last decade had been BodyArmor. At the peak of its sales in 2022, it reached about one-quarter the size of Gatorade. But it was a few product and sports marketing incremental innovation moves at BodyArmor that created second- and third-order effects…thus opening a whole new world of opportunities for competitors. Here's something to think about…almost all hydration category consumers consider themselves to be living an active lifestyle, but almost every hydration category consumer also isn’t a professional athlete or competing in some sporting activity. That makes the current high-intensity sports marketing not super-relatable to their lives. So, where BODYARMOR took one small step, Liquid IV took one giant leap forward in democratizing the hydration category. And it was the “Liquid IV Effect” that splintered the hydration category even further and that's the big concern by Gatorade. So, even though Gatorade is still the clear market leader right now, PepsiCo is accustomed to fending off direct attacks from known competitors. However, what happens when PepsiCo must fend off a rapidly multiplying amount of legitimate indirect attacks from lesser-known competitors? The growth of PRIME has been rapid and impactful…surpassing Electrolit in sports drink sales after less than two years in market. Electrolit "was" an indirect attack from a realitively unknown competitor...that is until the recent Keurig Dr Pepper (KDP) long-term sales and distribution partnership announcement. Additionally, sports nutrition brands like GHOST to incubate hydration powdered supplement platforms that can in the future extend into beverages is scary. And then there's also a slew of other beverage brands like Vita Coco, that I don’t think usually comes to mind in the evolving functional hydration space. But don't count out Gatorade yet, as “a wise man gets more use from his enemies than a fool from his friends.” Gatorade has been the category leader for 50+ years because they take advantage of the information competitors give.

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Dec 29, 202313:33
[MONDAY MINUTE] Kool-Aid , Lil Jon, & My All-Time Favorite Christmas CPG Marketing Effort 🤣

[MONDAY MINUTE] Kool-Aid , Lil Jon, & My All-Time Favorite Christmas CPG Marketing Effort 🤣

Maybe I’m just in the holiday spirit because our Christmas tree is right outside the door of my home office, but I’ve always considered this time of year as a high point for CPG industry marketing. I don’t think it has much to do with Christmas cheer though…instead it likely centers around the universally known fact that consumers typically buy more items…and CPG marketers must work extra hard to earn attention and dollars. That being said, one of my all-time favorite CPG marketing efforts combines Hip Hop artist Lil Jon, the Kool-Aid man, and a remix of a classic Christmas song. And if that’s not your sort of thing...maybe we show love to Coca-Cola, that has been featuring Santa Claus in holiday advertisements for almost a century.


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Dec 25, 202300:51
Merging Sports & Entertainment with the Beverage Industry | Mark French (Don't Quit!) Interview

Merging Sports & Entertainment with the Beverage Industry | Mark French (Don't Quit!) Interview

I consider myself extremely lucky that I didn’t ignore those topics, activities, and ideas that dominated a significant amount of my time throughout life. While I don’t think I have any special talents, I’ve been passionately curious about the intersections of those things…and that has allowed me to create this wonderful professional life today. That being said, I’m naturally drawn to people that have similar approaches to life. So, it shouldn't be of any surprise to you why Mark French and I have become friends. Currently, Mark is the CEO of the clean sports nutrition brand Don’t Quit, but his entire past is a masterclass on how living at the intersections of your passions can create massively successful results. In our conversation, we cover everything from how his intrapreneur spirit at one of the largest media companies in the world led him into his first CPG venture to those lessons being applied with the recent merger of X2 Performance and Don’t Quit Sports Nutrition. Additionally, we expand on how that business combination happened and why its synergies should be powerful within the beverage industry. Moreover, we explore the aspirational brand storytelling approach of Don’t Quit and where the powder supplement format might fit into his future strategic gameplan. But those are just some of the interesting topics we talked about in this episode...

Special thanks to Cognizin for supporting this awesome piece of content.

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Dec 21, 202332:09
Will 1440 Foods Be the Next Supplement Brand Portfolio IPO? | Bain Capital & Supplement Industry

Will 1440 Foods Be the Next Supplement Brand Portfolio IPO? | Bain Capital & Supplement Industry

What does the Republican Party’s 2012 nominee for U.S. President Mitt Romney, the thirteenth-largest global private equity firm, and a supplement brand portfolio that will likely IPO next year…have to do with each other? A LOT more than you might think! On December 13, Bain Capital signed a definitive agreement to acquire a significant stake in 1440 Foods. You might not recognize the brand portfolio name 1440 Foods, but it was created from the leftover sports and active nutrition division (i.e. Pure Protein, Body Fortress, and MET-Rx) that Nestle Health Science didn’t want in The Bountiful Company deal. Current 1440 Foods CEO is Azania Andrews, who had a 9.5-year tenure at the largest global brewer Anheuser-Busch. She most notably led business and commercial strategy for Michelob ULTRA, transforming the beer into the fastest-growing brand in America by repositioning it to focus on active lifestyles and better-for-you choices. in the last 20 months leading 1440 Foods, she has done a great job transforming what Nestle Health Sciences thought was trash by overhauling the Pure Protein and Body Fortress brands and growing all three convenient nutrition brands revenue in 2023. Yet, if all is good at 1440 Foods…why take on a major investment from Bain Capital? Last week, when any CPG pundit talked about the Bain Capital and 1440 Foods deal…they cited the PE firm’s existing CPG holdings Valeo Foods and Dessert Holdings. But that information seemed like one of those sentences thrown into a complex math problem from early grade school that tried to confuse you. Instead, the critical information (to decode what’s next) might be a bit more hidden. In the 1440 Foods and Bain Capital deal press release, they give the boilerplate reasoning for the investment…to fuel innovation, expand distribution, and build upon the strong brand momentum. Now…that might very well be the base case because, well that’s the strategic gameplan for any leading lifestyle nutrition company, but Bain Capital isn’t interested in hitting singles and doubles. The home run play is to utilize parts or all its previous Nutraceutical International (now known as The Better Being Company) playbook from the 1990s.

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Dec 19, 202311:57
[MONDAY MINUTE] Welcome to the "Creatine Gummies" Era | Gummification of the Supplement Industry

[MONDAY MINUTE] Welcome to the "Creatine Gummies" Era | Gummification of the Supplement Industry

Do you remember in late 2021 when I predicted that the "gummification of the supplement industry" would finally start making its way into the sports nutrition category? Those of us forward-leaning strategists have known forever that some of the biggest growth areas within the sports nutrition industry are likely to come from a widening of traditional definitions, as well as products coming to market in alternative delivery forms. That sounds like a perfect set-up for what’s been going on within the creatine subcategory, right? If you haven’t been paying attention…I’d like to welcome you to the “Creatine Gummies” era! What started in early 2022 with Bear Balanced…has now ballooned into dozens of copycat competitors. This supplement trend has gotten so popular, you even had the largest retailer in the world Walmart recently add CON-CRET creatine gummies to its shelves nationwide.

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Dec 18, 202300:55
New Owner of BIOSTEEL Sets the Record Straight | NHL Sponsorship, RTD Plans, & More | Dan Crosby Interview

New Owner of BIOSTEEL Sets the Record Straight | NHL Sponsorship, RTD Plans, & More | Dan Crosby Interview

From Canopy Growth acquiring a majority stake in BioSteel four years ago…to the rise and fall of the supplement turned sports drink brand, I’ve attempted to contextualize the marketplace data and provide insights into would be valuable to the functional CPG community. But with BioSteel officially emerging from bankruptcy recently with a new owner, I thought it would be important to reconcile some of my “what’s next” predictions from the last piece of content. And who’s better at helping me do that than the new owner himself…Dan Crosby. In our conversation, we cover everything from where the crazy idea initially originated to acquire the bankrupt assets of BioSteel to his first impressions after owning the sports nutrition brand for just over a week. Additionally, we talk about his projected sports marketing strategies (including the NHL deal) and how those will look compared to the last version of BioSteel. Moreover, we explore where the beverage format fits into his strategic gameplan. Plus, sales channel strategies, manufacturing plans, and a whole lot more…this one covers a lot of ground, so I hope you guys are ready for it.

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Dec 13, 202337:30
[MONDAY MINUTE] GHOST Lifestyle x Sour Strips Collab Underappreciated Strategic Element

[MONDAY MINUTE] GHOST Lifestyle x Sour Strips Collab Underappreciated Strategic Element

What’s up guys, it’s your boy Joshy Pooh! OK…OK…that poor attempt at copying Maxx Chewning was not authentic. So, I guess according to the famous Dan Lourenco saying "authenticity is undefeated," I'm taking a loss here. But let’s talk about the recent GHOST x Sour Strips collaboration a bit though. Tons of content out there already on the amazing taste of the products and overall cool factor, which is par for the course with GHOST, but here’s what I loved about the collab…the tactful ability of GHOST Lifestyle to navigate its two existing sour candy licensing partnerships. And I want to stress the word partnership, because without strong, trusting, and dare I say authentic long-standing partnerships with Impact Confections and Mondelez International…the Sour Strips collaboration is just another totally awesome idea that never sees commercialization.

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Dec 11, 202300:51
HUEL IPO or M&A Target of Unilever & Glanbia? | HUEL Exit Optionality Crossroads 2 Years Later

HUEL IPO or M&A Target of Unilever & Glanbia? | HUEL Exit Optionality Crossroads 2 Years Later

There has been A LOT of change at the convenient nutrition brand HUEL. But on the other hand, A LOT has stayed the same…which is maybe at the heart as to why HUEL has been so successful. But you might remember that almost exactly two years ago, I made my last piece of dedicated content about HUEL (https://youtu.be/UOiTExb1fk0). In that previous content, I was primarily focused on breaking down the predicted huge discussion that HUEL leadership was internally partaking in…about exit event optionality. Either HUEL would look to go through an IPO process, or it would opt to sell the business likely to a strategy buyer. And this is the same crossroads they are technically still at today. Just to update you on the financial picture at HUEL for fiscal year 2023, the CPG brand generated net revenues of about $233 million...which was a 28% YoY growth from the previous year. HUEL grew active customers by 22% YoY to over 900K and passed the 300 million (what they call “complete food”) meals mark sold in over 80 countries since inception. HUEL also increased its physical retail presence by 51% YoY, and their products are now offered in over 11K store locations. In the last year, HUEL has also expanded its product portfolio by launching its first ever non-protein supplement called HUEL Daily Greens and reimagining the energy drinks market with Huel Daily A-Z Vitamins. Both products are still a smaller part of HUEL’s overall revenue, but they align with the product development innovation strategy that has made the company successful. In the functional CPG industry, most successful products do not arrive out of nowhere; they’re remixes of existing ones. That’s the essence of what the core HUEL “complete food” meal products are…flipping the historical messaging around meal replacements from this negative “restriction diet” focus into this positive, proactive convenient food focus. It seems so simple, but the skill of those like HUEL…who are winning in this category is nothing short of exceptional. According to recent interviews with HUEL leadership, the brand (with healthy margins and manageable sales growth) is in a position of being self-sufficient from funding. That being said, HUEL has long-term investors that would like to get a liquidity event soon. Moreover, HUEL leadership has ambitious long-term goals that could be accelerated with a major investment from a strategic buyer for majority share or a full M&A process…and similar could be said if they chose to go public through an IPO process. Which I guess brings us back full circle to the decision ahead...should HUEL IPO or get acquired by a large strategic buyer. I run through both paths in this content...plus provide my thoughts on two potential buyers: Unilever and Glanbia.

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Dec 06, 202314:23
[MONDAY MINUTE] MyProtein Helps "Nemo" Get Fit with Sustainability Project | Supplement Industry Strategy

[MONDAY MINUTE] MyProtein Helps "Nemo" Get Fit with Sustainability Project | Supplement Industry Strategy

Is the sports and active nutrition space really the influential epicenter of the CPG world? I’ve made that confident declaration A LOT lately, but I have to be honest…behind closed doors I’m just waiting for someone to call me out one of its massive blind spots (like sustainability). But as Deion Sanders recently said, "you better come get us now because this is the worst we will ever be." While there’s still tons of industry-wide work that needs to be done, I’m inspired by a recent innovative sustainability project by the largest global online sports nutrition brand MyProtein. Faced with the common “out of date stock product disposal” challenge, the company decided to think circularly by combining Myprotein ingredients and upcycled materials to produce a sustainable fish feed pellet. So, if you see Nemo looking fit…you know why!

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Dec 04, 202300:50
BioSteel Acquired By Canadian Protein | BioSteel Post-Bankruptcy = BioSteel Before Canopy Growth?

BioSteel Acquired By Canadian Protein | BioSteel Post-Bankruptcy = BioSteel Before Canopy Growth?

I’m not sure if the Canadian bankruptcy courts are just wildly more efficient than in the United States, but we already have a major announcement in the BioSteel court-supervised sale process. For those that haven’t been following my previous content on this business activity…and recognize BioSteel probably from all the prominent sports marketing deals (e.g. NHL sponsorship), you might be wondering why previous owner Canopy Growth didn’t just find a potential buyer itself? It did two separate times in the last year but Canopy Growth still didn’t receive any satisfactory bids for Biosteel...likely because the potential buyers looked under the hood and weren’t able to see a short enough path to profitability. But don’t get it twisted…that doesn’t mean the BioSteel assets were worth nothing. There were interested parties waiting…they just needed the bankruptcy process to essentially erase all the Canopy Growth mistakes, thus making the acquisition opportunity much more attractive. Of those interested parties, BioSteel received eight total bids, but only six of which substantially complied with the terms and were considered qualified. The winner of the BioSteel bankruptcy process was DC Holdings Limited, which does business as Coachwood Group. This Canadian holding company primarily specializes in the nutraceutical, sports nutrition, and health product sectors, but it also has a portfolio of real estate investments. Admittedly, when I saw the deal news…I didn’t recognize the holding company, its Founder/CEO Dan Crosby, or its main brand asset called Canadian Protein. Now…that doesn’t mean anything, as I have blind spots like everyone, especially when you consider Dan Crosby creates a significant amount of entrepreneur content online, Canadian Protein is one of Canada's largest e-commerce supplement brands, its products are also sold in Costco Canada, and it looks to manufacture most (if not all) its own products. While the new ownership hasn't released any public information on the BioSteel turnaround plans yet, I'll breakdown where the likely strategic path. Just to get this out of the way…any thoughts that BioSteel would quickly bounce back to recent revenue levels is absurd. This isn’t a knock-on the new ownership, but how that recent BioSteel revenue was generated matters.BioSteel won’t go back to playing the sports marketing game (at the highest levels) that Gatorade invented/mastered and BodyArmor emulated. Yes, BioSteel got to a level of sales in the Coke/Pepsi dominated beverage category that few brands ever reach, but I’m not even certain packaged RTD beverages will be a core focus of the new company. If so, maybe they make it available exclusively through Costco Canada…as rebuilding out a full-on North American beverage team and strategy seems too risky right now. My guess is that BioSteel will be rolled back to something that looks more familiar to the times before Canopy Growth initially invested in the brand and went all in on sports drinks. So, with Canadian Protein as our guide…BioSteel will likely get a revamped (and streamlined) supplement lineup and it will be mostly sold online.

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Nov 28, 202309:12
G Fuel Receives Significant Investment | Viability of Gamer Energy Drinks & Esports Supplements

G Fuel Receives Significant Investment | Viability of Gamer Energy Drinks & Esports Supplements

G Fuel decided to invite “the suits” into its cool kids’ club. Will this result in a similar FaZe Clan-like collapse or does this turn out differently for G Fuel? If you haven't seen the headlines yet from November 16th, G Fuel announced that it received a significant cash investment from private equity firms Kingswood Capital Management and First Bev. Precise terms of the 8-figure deal were not immediately released, but the deal provides significant growth equity for G Fuel. Alongside the investment, Bryan Crowley, a seasoned CPG executive with previous stops at Casa Azul Spirits and Soylent (just to name a few), will take over as the new CEO of G FUEL. Current leadership members…including Founder Cliff Morgan are said to be continuing leadership roles within G Fuel. Those are the scant press release details (outside of some additional "fluff" quotes from key stakeholders), but you guys know just sticking to that basic information isn’t my style. So, the bulk of this content will focus on the following items: Gamma Labs strategic shift into gamer supplement market, recap and reconciliation of my G Fuel energy drinks predictions from 2019, recap reconciliation of my 2019 predictions, breakdown viability and market attractiveness of “gaming” energy drinks, and what could be next for G Fuel after this strategic investment.

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Nov 27, 202315:30
[MONDAY MINUTE] It's Like Mixing a G Fuel Energy with Ramen Noodles | Nissin Gaming Cup Noodle

[MONDAY MINUTE] It's Like Mixing a G Fuel Energy with Ramen Noodles | Nissin Gaming Cup Noodle

Gamers are no longer that stigmatized nerdy and overweight young white male cohort who live in their parents’ basements. With an increasing number of people playing, broadcasting, and watching esports, the multi-billion-dollar gaming ecosystem is without a doubt cementing itself as a straight up cultural phenomenon. So, maybe it’s time to retire the stereotype that gamers are only interested in unhealthy snacks, caffeine drinks, and pizzas for marathon gaming sessions? Nissin Foods, maker of popular instant noodle brand Cup Noodle, is releasing a product in Japan that provides gamers with both sustenance and energy…in the form of caffeinated noodles. What’s Next? Totino’s kicking up its FaZe Clan partnership with a GHOST Energy orange chicken flavored pizza roll?

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Nov 27, 202300:58
THG Nutrition U.S. IPO Coming Soon? | MyProtein U.S. Struggles | THG (The Hut Group) 2023 Q3 Update

THG Nutrition U.S. IPO Coming Soon? | MyProtein U.S. Struggles | THG (The Hut Group) 2023 Q3 Update

I think it’s finally time for THG to file the necessary SEC paperwork, so my September 2022 MyProtein prediction can become a reality. THG (aka the company formerly known as The Hut Group) recently updated the public markets by releasing its 2023 Q3 earnings report. I’ll be utilizing that financial information, along with notes I took listening to the earnings conference call, and any relevant publicly disclosed information to obviously update you on the recent performance of THG Nutrition division that includes the world's largest online sports nutrition brand MyProtein, but also utilize everything to provide insights surrounding the global supplement markets. For those unaware, THG is self-described as “a vertically integrated, digital-first consumer brands group, retailing its own brands in beauty and nutrition, plus third-party brands, via its complete digital commerce solution, Ingenuity, to an online and global customer base.” During the third quarter of 2023, divisional revenue for THG Nutrition was approximately $195 million, which was down 2.3% YoY. If we look at THG Nutrition segment revenue for the first 9 months of 2023, it generated about $619 million…which was up 0.4% YoY. Why are these growth rate low? especially if we look out over the last two years (being up only 3.7% in that period)? I'll dive into several things going on here at MyProtein including: its ecommerce sales channel strategy, integration of supply side acquisitions, MyProtein rebrand causing short-term revenue impacts, and pricing strategy in an inflationary environment. Though it only makes up one-third of the total portfolio revenue, THG Nutrition accounts for almost all its profitability. While THG Nutrition isn’t a standalone business, strategy within the segment (over the last two years) has been focused on creating optionality. I predict that sets THG up to spun-off its “nutrition segment” into a standalone public company. This new entity will likely IPO in the U.S. markets because of the more favorable market conditions. Finally, I dive into arguably the top 3 growth drivers that THG Nutrition needs to focus on over this next year to make themselves more attractive to the U.S. investment community.

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Nov 25, 202312:59
Premier Protein Reaches $1.39 Billion in Revenue | BellRing Brands 2023 Full-Year Update

Premier Protein Reaches $1.39 Billion in Revenue | BellRing Brands 2023 Full-Year Update

I’ve said it once and I’ll say it again…it’s crazy how the number one brand in the entire convenient nutrition category (e.g. Premier Protein) can still have so much untapped organic growth opportunity! BellRing Brands (NYSE: BRBR) is a portfolio that owns a collection of convenient nutrition brands like Premier Protein, Dymatize Nutrition, Powerbar, and Joint Juice, which was previously wholly-owned by Post Holdings. A fast-paced and busy lifestyle is pushing consumers to switch to quick and healthy meal options. This has resulted in above average categorical growth rates and increased household penetration of RTD protein shakes that promote active lifestyles. Bellring Brands had a strong Q4 with net sales reaching $472.6 million, which was up 24.6% YoY. Premier Protein (~83% of BellRing Brands total revenue) grew 30.2% YoY, which came from mostly volume increases. Dymatize Nutrition was down just under 1% YoY stemming from a slight volume decrease. Moreover, I provide two deep dives into the functional CPG portfolio's "hero SKU families" of Premier Protein RTD protein shakes and Dymatize protein powders. In this quarter, BellRing Brands leadership decided to discontinue the operations of PowerBar in the North American market, but the company will continue offering the brand internationally. Finally, I explain several different growth opportunities that are untapped at Premier Protein. These include how operational improvements will create more revenue and my predictions that Premier Protein will start to diversify both its highly concentrated domestic sales channel mix (e.g. convenience stores) and geographical revenue mix.

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Nov 24, 202315:59