Can “radical transparency” be an effective strategy within the supplement industry? While this subject matter exploration began almost a decade ago through various strategic management consulting projects, it has also found its way into many of my past content pieces. But the inspiration behind this current radical transparency content has roots in what first motivated me to investigate the management philosophy. A few weeks ago, I’m scrolling LinkedIn and see this business story shared that had an image of this fluorescent neon yellow stick pack supplement and its founder that looked familiar (but I couldn’t instantly recognize him). After opening the article, I got enough information that identified why I knew Michael Preysman (i.e. he founded the disruptive fashion brand Everlane) and the supplement brand name (i.e. Magna), which has dubbed itself “the world’s first magnesium powered daily hydration formula.” And you might be asking…what does a guy from the apparel industry know about how to start a supplement company anyways? But here’s maybe the crazy thing…that few pundits want to acknowledge about today’s supplement industry, winners/losers are rarely created by solving some complex science problem with a vitamins, minerals, and supplements (VMS) product. That being said, Micheal Preysman did correctly spot a potential market opportunity in that most adult Americans are magnesium deficit. Furthermore, he had conviction in connecting that “supplements trend” and leveraging a sequence of other dimensions shaping the future of the supplement industry with a key “driver of demand.” Now…all these “sound strategic decisions” doesn’t mean Magna will be successful on any level, let alone to the $200 million revenue mark like Everlane, but it does increase the probability of that result. But more importantly to the main focus of this content…if brand authenticity is upheld, and Magna acts consistent with its tagline “for those that play the long game,” then it could also help disrupt the supplement industry by channeling some of the “radical transparency” elements that Everlane championed within the fashion industry...and combining it with supply chain traceability strategies of Ritual vitamins. But my latest first principles thinking content will explore if this level of combined radical transparency (and traceability) could really work within the supplement industry. TBH this “build model” hasn't even been attempted to a large degree within the supplement industry, but that doesn't mean I don't wholeheartedly believe it would be successful because of the distinctly bold strategic narrative. Now by saying that…I also acknowledge the sheer difficulty required to pull it off at the highest level. But as the famous proverb says, “there is only one way to eat an elephant: one bite at a time.” Because that's what trips up too many entrepreneurs when they look at pursuing radical transparency (or traceability), it's not required to eat the elephant in one bite. Instead, it’s initially about embracing the spirit of these pursuits. After that…it comes down to breaking down the pursuit down into more manageable SMART goals, setting expectations (or standards), aligning company incentives, and then understanding that it’s an endless opportunity to do better. And that’s because there is no “project” endpoint when pursuing radical transparency (or traceability), it’s a “process” of constant improvement.

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More than 40,000 convenience store owners have spoken, and they shared some interesting takes surrounding the growing energy drinks category. And even if you aren’t familiar with every insight regarding this beverage category, I’m sure you intuitively recognize that convenience is the most important sales channels for energy drinks in the U.S. market. But here are my top 3 biggest “categorical” takeaways from the recent Goldman Sachs Beverage Bytes survey. The first is a market reaction to decelerating volume growth, with most c-store owners expecting energy drink brands to increase promotional activity soon. The second is that c-stores, witnessing the insane CELSIUS growth story, are reducing soda and beer shelf space to increase room for energy drinks. And finally, Bang Energy is back baby! After more than a year of straight declines, Bang Energy grew mid-single-digits YoY.

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If you’ve spent any time recently perusing the grocery shelves, it’s likely that you noticed that high-protein claims are penetrating more diverse food and beverage categories. In addition to the ubiquitous protein bars, protein powders, and protein shakes...you can now buy items such as protein pasta, protein bagels, protein waffles, protein chips, protein coffee, and even protein-boosted versions of dairy items like milk and yogurt. Consumers can’t seem to get enough protein. In fact, Google Trends showed that online search interest for the term “high protein” reached a 20-year high in early 2024 and has remained high since. Furthermore, among shoppers seeking healthier items, 42% said they’re interested in seeing more high-protein grocery products. Protein has become a kind of "holy water" that instantly anoints any food or beverage with a health halo. While the focus on high protein diets started in those shadowy niches of sports nutrition and weight management, there’s now increasingly diverse consumer cohorts that possess a heightened awareness around the value of this essential nutrient. And it’s that demographic diversity, being interested for different reasons, that's making protein a battleground category as it proliferates across the entire grocery store. But does this mean the protein bar category, that has been around for more than 70 years, needs to evolve if it hopes to stay relevant in the protein-ified grocery world? Once a niche product targeting athletes and bodybuilders, the supplement industry intelligently recognized that protein-based snack consumption had become a key component to a healthy active lifestyle. Protein bars are now marketed as “wellness” products targeting mainstream consumers that are quite different than the previous stereotypical, “curls for the girls” consumers of the past. But while that market expansion can be great…it also means the “one-size-fits-all” targeted consumer strategic marketing (and product) approach has become obsolete. So, then what’s next for protein bars? While I believe protein will remain a nutritional evergreen for many decades to come (and the protein category is still being below its “peak consumption” point), I also think there’s an emerging arbitrage…as consumers move closer towards this four-way intersection of taste, convenience, nutrition, and functionality. It seems every multi-billion-dollar functional CPG category is in the early innings of a remarkable transformation, as consumers have started to evolve further into seeking multifunctional benefits that contribute to overall wellbeing. Just like “protein” seems to be popping up more in unexpected food and beverage CPG products, different adaptogens, herbal extracts, and other nutraceutical ingredients will start being included in more protein bars. And while there’s infinite opportunities to leverage a sequence of dimensions that are shaping the future of the supplement industry (e.g. benefits, ingredients, use occasions, and consumer preferences), my latest first principles thinking content will focus on three of the most viable "protein bar plus" need states; cognitive health, gut health, and mood support. But while it seems obvious that more functional ingredients will find their way into protein bars, it also doesn’t mean there isn’t ample growth prospects for plain ole protein bars that further evolve because of food science advancements, innovative production capabilities, and food technology.

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As my deep domain expertise has digitally disseminated, it’s provided immense opportunities to connect with likeminded individuals across the entire health and wellness CPG ecosystem. And that includes the “investment and financial services layer,” which shouldn’t be surprising to regular audience members…as my content has always been heavy-handed in that general area. So, with the emerging and intersecting categories of functional foods, functional beverages, and dietary supplements becoming increasingly more attractive dealmaking targets by the day…it seemed like a great time to bring on my good friend Teddie Townsend, who’s a “consumer health and wellness” sector expert and the Director of Investment banking at CG Sawaya Partners. As you’ll notice, even in the relatively short amount of time…Teddie and I were able to deeply cover A LOT of ground in this content piece from a rundown on investment banking engagement basics to possible landmines that can wreck deals and the importance of build model strategic optionality. We also examine what factors are driving categorical dealmaking from the perspective of private equity and strategic acquirors. Moreover, Teddie and I expand our insights to cover the reasoning behind strategic acquirors shifting away from broad-based to need state specific M&A of VMS companies. Finally, we both share a few “consumer health and wellness” spaces that could be hotbeds for deals soon. But these are just some of the fascinating topics we chatted about in this episode...

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71% of you have snacked in the past 24 hours. But despite the frequency of snacking occasions remaining stable over the past decade, the consumer has evolved. Today, snacking goes far beyond “filler” between meals or mindless munching…they’re often an expression of personal goals and values in our fast-paced, health-conscious world. 36% of all snacking occasions involve some need for “Optimization,” which is up 5 percentage points since 2020. This supports the notion that consumers are looking for a quick energy boost and other functional benefits that help them meet the challenges of their active and demanding lifestyles. Moreover, 23% of Gen Z and Millennials have purchased snacks with functional benefits in the past three months. And place extra attention on these younger health-conscious snackers…as they’re driving trends towards bold, unconventional flavors, as well as novel form factors.

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Over its first 3.5 years in market, the only constant at ZOA Energy seems to be change. So, I'll start this content off by reconciling some of my original thoughts around ZOA Energy (from a content piece I created a month before the energy drink even launched), with the drastic changes ZOA made in January 2023. This includes product enhancements, flavor adjustments, and shifts to the visual identity (and brand strategy). Yet, that original brand strategy and associated packaging design felt very much like Dwayne “The Rock” Johnson was extremely involved in ensuring it properly articulated and aestheticized his defining personality traits. But then the question likely shifts to why did ZOA Energy make all these changes anyways? The simple answer is expectations! Firstly, you have arguably one of the biggest global celebrities behind the company, that seemed authentically motivated, and within a product category that seemed aligned with him. Next, you had a U.S. energy drinks market that was on fire…especially within the categorical fragmentation of “energy plus.” Finally, you had a “Day 1” strategic partnership (and investment) by Molson Coors that provided national sales, field marketing, and distribution resources. This is a recipe for not just success…but outsized success! So, despite the relatively strong start...the brand was underperforming key competitors (e.g. Alani Nu and GHOST energy drinks) that launched within an 8-month period of ZOA Energy. While Molson Coors CEO Gavin Hattersley admitted ZOA Energy made several strategic missteps out the gate...he also stressed that it broke the golden rule of brand building by scaling too quickly. Yet, both Alani Nu and GHOST have been beverage industry rocket ships and now both passed the $600 million mark in retail sales over the most recent 52-week period (outselling ZOA Energy by 20 times more). But even with relatively weak performance since that January 2023 brand reset, Molson Coors expanded its strategic partnership with (and investment in) ZOA Energy. Why? After losing La Colombe Coffee Roasters to a strategic partnership with KDP, ZOA Energy became really the only sizable non-alcoholic (and health and wellness positioned) brand within the Molson Coors beyond beer portfolio...which I'll explain why I believe that's problematic. Finally, I'll examine several different implications around the timing of the brand reset that created distance between ZOA Energy and Dwayne "The Rock" Johnson. In today’s ultra-competitive U.S. energy drinks market, brand authenticity matters A LOT…and that’s because energy drinks are marketed as a lifestyle beverage that offers the functional benefit of energy. But wouldn’t that help an energy drink with Dwayne ‘The Rock’ Johnson weaved into the brand DNA? Yes, but only if ZOA Energy still felt like an authentic “energy drink” extension of him…and more importantly, the public still felt like they even knew who the authentic Dwayne ‘The Rock’ Johnson was anymore. While changing the look, feel, and tone of ZOA Energy in the first few years was maybe a good decision in a vacuum, it (along with) the “Big Dwayne Energy” marketing campaign exacerbated this feeling with consumers that the brand felt more like just another diverse set of movie roles for the actor Dwyane “The Rock” Johnson. So, for this energy drink brand to really have a chance at meaningful success, ZOA can't just be another ‘ad’ for its superstar co-founder or it’s destined to continuing going ZOAwhere.

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At one time or another, we’ve all been asked the common question, “what’s one thing you wish you could tell a younger version of yourself?” While “Marty McFly” is the only person I know that’s successfully gone “Back to the Future,” my conversation with Blodin Ukella (Founder and CEO of The RYL Company) provided me a closely similar opportunity. And that’s because a decade earlier, I was that same ambitious CPG industry “young buck,” leaving a strategy leadership position at a hyper-growth active nutrition brand to relentlessly pave my own way. But all jokes aside, Blodin and I start off by talking through his time at the plant protein brand OWYN…where he describes a few key lessons that impacted the strategic approach at his current venture. Moreover, Blodin and I examine several elements of The RYL Company strategic foundation…including its go-to-market approach, having an additive mindset, and financial efficiency prioritization. We also walk through the evolution of the functional tea category…before shifting our focus over to dissecting the implications surrounding the “Morgan Wallen effect.” Finally, we breakdown the “RYL” acronym and look into the future of the beverage platform. But these are just some of the interesting topics we chatted about in this episode...

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What keeps the CEOs of beverage conglomerates like The Coca-Cola Company, Pepsico, and Anheuser-Busch up at night worrying? I’d guess you initially considered the normal propaganda that “sugar is bad” or “alcohol is terrible,” but there might be a bubblier culprit that ends up creating the most discomfort. Today, around two-thirds of adults experience regular digestive symptoms like gas, bloating, and abdominal pain. Specifically, the most noticeable rise is in patients experiencing irritable bowel syndrome and GERD. And what does every list on the internet suggest (lifestyle change wise) if you want to help control digestive symptoms? That would be the avoidance of carbonation in soft drinks and beer! So, how long before the newest “trend” in packaged beverages will be calling out carbonation levels on packaging (and marketing)?

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Is FitLife Brands “the little supplement brand portfolio” that could? For those unaware, the supplement brands that are within the FitLife Brands portfolio are now categorized in three segments: Legacy FitLife Brands, which is broken into two sub-segments…NDS Products (which are a collection of brands mostly sold in the GNC franchise system), iSatori Products (which are a collection of brands sold through a diversified retail mix), and then Mimi’s Rock Corporation Products (which are a collection of brands mostly sold on Amazon), and MusclePharm. In total, the FitLife Brands portfolio is sold through more than 20,000 retail locations globally. In the second quarter of 2024, FitLife Brands Inc. (NASDAQ: FTLF) had revenues of $16.9 million…which was up 15% YoY. But though that YoY growth rate obviously looks strong, it’s important to remember that those reported results were greatly impacted by the MusclePharm acquisition that closed in October 2023. While there's strategic initiatives going on at legacy FitLife Brands and Mimi's Rock, the most intriguing segment within FitLife Brands is also currently its smallest...MusclePharm. In the second quarter of 2024, MusclePharm segment revenue was $2.7 million. And if you were wondering about YoY comparatives, let’s just say the Eric Hilman run MusclePharm bankrupt version outsold this current version. But that’s probably an apples-to-oranges comparison because Eric Hillman was focused on survival by any means necessary, and FitLife Brands is attempting to make strategic business decisions that support and optimize long-term growth. Though the most notable aspect of this earnings report didn’t come from the increased segment-level financial data provided by FitLife Brands, but because of what CEO Dayton Judd didn’t say about MusclePharm. Maybe everyone didn’t catch it, but he had a much more cautious (even reserved) vibe when talking about the MusclePharm outlook (and associated strategic plan). That being said, I’d rather leadership share “lower ambitions” publicly and drive higher ambitions internally to outperform expectations…compared to talking about launching “high risk, high reward” product categories like RTD beverages that FitLife Brands has zero applicable knowledge of historically and would honestly be a corporate strategic misalignment without major shifts. MusclePharm is currently the “most significant organic growth opportunity” at FitLife Brands, but it can also be what creates unnecessary burden (especially margin wise) on the entire company. Investing in brand growth through promotional offers or increased digital advertising spend is necessary, but FitLife Brands needs to ensure it doesn’t get overly aggressive trying to restore MusclePharm back to a level it will never reach again. That being said, I’m quite confident FitLife Brands understands it’s a marathon (and not a sprint) with MusclePharm. So, where can FitLife Brands find “easy growth” in the next 12 to 18 months? Even with two sizable acquisitions in the last year, FitLife Brands has already publicly stated its currently electing to build cash as it continues to evaluate M&A opportunities.

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If it ain’t broke, don’t fix it. But if it’s REALLY broke…follow what Glanbia always does and just send it off to the island of the misfit toys! Glanbia Performance Nutrition is one of two divisions 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 2024 first half revenue of $882.1 million, which was down 0.8% YoY. The brand portfolio had volume growth of 3.1%, but that was more than offset by price decline of 3.9% YoY. 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 65% of the total GPN revenue. In 2024 H1, Optimum Nutrition had 7.7% YoY growth coming from strong volume gains, but U.S. market retail consumption growth in tracked channels was basically flat over the 13-week period ending July 14, 2024. Additionally, Optimum Nutrition generated over $1.1 billion in revenue last year...which makes it the number one sports nutrition brand in the world and also the top sports nutrition brand in 18 different countries. I also update you on the GPN revenue breakdowns (and trends) by sales channel and product format. Finally, I talk through a collection of hot takes or things I’m left pondering about Glanbia at this current time. These include the full reasoning behind poor performance of RTD beverages and snacking formats at GPN (beyond the poor performance of SlimFast), slight (but impactful) design changes made to Optimum Nutrition packaging, and my updated outlook on dry whey and cocoa commodity pricing.

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