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.

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS