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

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.

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS

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!

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS

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.

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS

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!

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS

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.

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS

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.

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS

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.

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS

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.

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS

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?

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS