Premier Protein remains the “gold standard” in convenient nutrition, but slowdowns in its brand portfolio counterpart (Dymatize Nutrition) should be concerning. Fortunately, something always remains to be harvested…so let them not "play Koia" and be idle for much longer. 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 Q3 with net sales reaching $515.4 million, which was up 15.6% YoY. Premier Protein (~85% of BellRing Brands total revenue) grew 19.8% YoY, which came from large volume increases. Dymatize Nutrition was down 2.6% YoY, stemming from volume increases within international markets. 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. Believe it or not, a whole year has passed since I even mentioned M&A in a quarterly BellRing Brands content piece...but it's the perfect time to talk again about M&A and brand portfolio architecture is now for several reasons. Firstly (and most broadly), consumers can’t seem to get enough protein. There’s increasingly diverse consumer cohorts that possess a heightened awareness around the value of protein. Secondly (and related), that demographic diversity, being interested for different reasons, makes protein a battleground category as it proliferates across the entire grocery store. Thirdly, the Dymatize growth story from the last few years had allowed Bellring Brands to shift M&A needs from “must have” to “nice to have,” but that seems to be ending now. Additionally, a major convenient nutrition brand portfolio competitor (i.e. Simply Good Foods) just acquired the fastest growing protein RTD liquids brand (i.e. OWYN). And then finally, plant-based protein sales have again been strong…holding their own against milk-based counterparts because top products have advanced to a point where consumers feel they are near parity in terms of flavor and texture. So, what does this all mean? The same thing I referenced in 2021…that Bellring Brands needs to find a leading plant-based protein brand to fill a portfolio gap. I believe there are a few plant-brand protein brands that are focused on building their own core customer that’s outside the typical natural channel shopper…with product and branding in line with conventional protein products. So, the best option to acquire right now for Bellring Brands would be Koia.

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