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If you believe sports supplements (e.g. pre-workout) must be packed to the brim with ingredients, or they shouldn’t be created at all...hopefully you'll have an open mind while consuming this content. In mid-January 2023, Gymshark announced on its social media that it created a branded pre-workout supplement. It would be available only to the UK market and for a limited time only (LTO). Obviously, that LTO time period was super short…because as of recording this in the back-half of March 2023...the branded pre-workout can be nowhere to be found on the Gymshark website. So, why am I even talking about this particular LTO pre-workout launch over the dozens that happen weekly by mid-size or larger supplement brands? It’s solely due to the company behind it. Gymshark is a fashion brand, and not just any fashion brand, but one that generates well over half a billion dollars in global revenue. So, there’s an oddity to what Gymshark did by deciding to launch an LTO product within the dietary supplements market. While I can’t remember everything, I’m pressed to pinpoint any like-for-like comparison with this business strategy made throughout history by other fitness apparel brands like Nike, Adidas, Under Armor, or Lululemon. That being said, I did once explore the idea of fitness equipment/content companies like Peloton, Tonal, or Mirror would explore buy, build, or partnership opportunities within the functional CPG categories. It was in that previously mentioned "most probably" strategic direction that unlocked the Gymshark Pre LTO playbook. They created a strategic partnership with a supplement brand Applied Nutrition and essentially white-labeled their popular pre-workout product called ABE (which stands for All Black Everything). While it seemed most "advanced consumers" and industry professionals were hating on the trendy fitness apparel brand for this LTO supplement launch, I think most were completely missing the valuable insights and lessons to learned...

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A LOT has happened since the parent company of Bang Energy filed for Chapter 11 bankruptcy protection on October 10, 2022. If you checked out my previous comprehensive “Bang Energy Bankruptcy Explained” content about five months ago, you’ve likely been wondering what’s going on at the beverage empire that Jack Owoc built. Well…I've been watching everything closely and read most of those 1000+ court documents, that amounted to thousands of pages, in hopes that I can provide a comprehensive update on the Bang Energy bankruptcy case and breakdown what everything ultimately means for the company and the entire energy drinks market. Firstly, this is a highly contested bankruptcy case that involves A LOT of egos, emotions, and energy drink competitors being among Bang Energy's largest creditors. Secondly, you have many factors at play that is causing the revenue to decline sharply at Bang Energy, including a DSD distribution swap away from PepsiCo, false advertising case with Monster Energy that's causing a packaging changeover, large retailers delisting or deprioritizing Bang Energy for upstarts like GHOST Energy, C4 Energy, RYSE, Alani Nu, and CELSIUS energy drinks, and then Huron Consulting Group implementing a cost optimization plan that put in motion that included a large SKU rationalization, a commercial real estate sale and leaseback strategy, and cuts to marketing spend…just to name some of the actions. Thirdly, Jack Owoc started seeing the writing on the wall and with not many viable options left to save Vital Pharmaceuticals (VPX Sports) that he birthed 30 years ago, Jack Owoc leaked the potential Bang Energy IPO. Next, Bang Energy put out a press release that says the board of directors “acknowledge Jack Owoc’s vision in founding this leading brand and creating a world-class product in the energy drink category,” but he has been relieved of his CEO and Chairman of the Board duties. We are now in a full-on hostile takeover situation after I assume Jack Owoc went nuclear when he realized that his most hated rival Monster Energy could very well acquire Bang Energy. I'll explain why I believe Monster Energy would want to acquire Bang Energy, but also consider a few other options with the bankruptcy auction scheduled for April 27th, 2023.

Bang Energy Bankruptcy Explained

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What I’ve dubbed the “Bodybuilding.com hot potato game” is basically the best analogy I could create that describes what has happened to the specialty supplement ecommerce website over the last 4ish years.  Bodybuilding.com has been involved in three confirmed mergers and acquisitions transactions since July 2019…with a fourth possibly happening soon. The first was a related-party transaction that happened between Liberty Expedia Holdings and Expedia Group. About a year later, Expedia Group was facing huge market pressures from you know what in 2020 and had to shed all of its non-core travel assets. The private equity firm The Najafi Companies took advantage of the fire sale and attempted to stabilize the struggling Bodybuilding.com but decided to cut its losses early and sell two years later to Retail Ecommerce Ventures, which is owned by Tai Lopez and his partner Alex Mehr. Now…Retail Ecommerce Ventures is reportedly in financial trouble and have hired advisors to consider a variety of strategic options that include lining up a potential buyer for its portfolio companies, putting up intellectual property as collateral for loan/investment, or filing for Chapter 11 bankruptcy protection. What does this all mean for Bodybuilding.com? I’ve consistently said in numerous content pieces over the years that there’s still value in Bodybuilding.com, but is it worth repairing? What the website doesn’t need is another “let’s do as we’ve always done but a little cheaper and expect better results” owner. What Bodybuilding.com needs is a transformative thinker that has sufficient capital and the patience to turn this ship around. Maybe I need to message Ryan Deluca and see if he wants to pull a Steve Jobs return to the company he founded 24 years ago from his garage at the age of 20. But since this is a developing story…I’m going to end right here and wait until we have more information. When things get less opaque, I’ll be here to share all the implications that it could have on supplement industry stakeholders.

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Just like midnight changes everything for Cinderella, MusclePharm did something right before the start of the intellectual property public auction that also changes everything. While MusclePharm being the Cinderella “underdog story” of the sports nutrition industry might be a huge stretch, the company is certainly down on its luck and dreaming of a better life someday. To even have the chance at a better life, we must swap an important detail around in this Disney story. Instead of the fairy godmother, MusclePharm has the United States Bankruptcy Court District of Nevada. Yes, many of you already read the headlines, but on December 15, 2022, MusclePharm filed voluntary petitions for protection under Chapter 11 of the Bankruptcy Code. Why did it take me so long to get this MusclePharm bankruptcy content created for you? Well…at first the bankruptcy filing was quite bare, which signals to me that it was obviously rushed. So, I waited for more details to emerge because I wasn’t going to make content on boiler plate nonsense that just wastes everyone’s time. But what started slow, sped up fast, and in the last about 80 days, there’s been about 300 court documents (and counting) that amounts to more than 1000 pages. I’ve read through much of that in hopes that I can provide facts on the MusclePharm bankruptcy and breakdown what everything ultimately means for the company and the entire sports nutrition market. This includes a hedge fund battle between a portion of the hedge fund Empery Asset Management and White Winston, a list of the major creditors in the MusclePharm bankruptcy case, confirmation that Eric Hillman is CEO and an update of January 2023 financial progress, and what's the likely post-bankruptcy path for the legacy sports nutrition brand MusclePharm.

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With the help of PepsiCo, can Celsius Holdings knockout enough competitors in 2023 to reach $1 billion in revenue? This is the first quarter that Celsius energy drinks were integrated into the PepsiCo DSD distribution system after the August deal announcement. Celsius Holdings (NASDAQ: CELH) had quarterly revenue of $178 million, which was up 71% YoY. For the 2022 full-year, the energy drink brand had $653.6 million in annual revenue, which was up a remarkable 108% YoY. According to IRI last 52-week data, Celsius was the number one brand driver of growth in the energy drink category. Celsius was responsible for 22% of the category growth, driving $474 million in incremental sales. In addition, according to the trailing 12 weeks of IRI MULO+C Total Energy data for the period ending January 1, 2023, Celsius is now securely the third-largest energy drink brand in the category. It’s market share went from 3.4% in 2021 to 6.4% in 2022. Celsius energy drinks saw massive growth in convenience stores, mass retailers like Walmart, the club channel in retailers like Costco, and the Amazon marketplace. I also quickly run through some thoughts around the Celsius strategic pillars that CEO John Fieldly laid out in the earnings conference call. Finally, I mention some hot takes around a recent collection of Celsius Holdings headlines like the Flo Rida litigation, signing Jake Paul, and additional marketing announcements.

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Did Optimum Nutrition just join an ultra-exclusive club within the supplement industry? Glanbia Performance Nutrition had 2022 revenue growth of 13.9% YoY on a constant currency basis from strong pricing increases. They also benefitted from the mid-2021 acquisition of LevlUp, a gamer (esports) nutrition brand. Glanbia Performance Nutrition is one of two wholly-owned segments of Glanbia plc (LON:GLB), a multi-billion 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. Additionally, I'll dive deeper into Glanbia Performance Nutrition categorial performance (performance nutrition, healthy lifestyle, weight management, and international). I also share a collection of hot takes or things I’m left pondering about Glanbia after hearing GPN strategic priorities going forward. This includes a larger long-term prediction about Optimum Nutrition, pondering acquisition targets like MyProtein and a precision fermentation startup like Perfect Day, and explanation around why the mismanagement of BSN is only getting worse by the day.

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When making that prediction in November 2022, I never imagined it would come true so quickly, but it’s time to explain what the life after Sharon Leite might look like at The Vitamin Shoppe. Taking over the CEO role at The Vitamin Shoppe will be Lee Wright (or at least he’s filling those shoes right now). I say that because he’s also the Chief Commercial Officer for the parent company Franchise Group. I'll run through his background and also explain the possible significance his previous employer Conn's HomePlus might have on Franchise Group. Additionally, I will update you on the recent business performance for The Vitamin Shoppe. I'll utilize the 2022 Q4 Franchise Group (NASDAQ: FRG) earnings report and conference call to provide quarterly and full-year 2022 segment-level financial details for The Vitamin Shoppe. I will also dig deeper into several areas of The Vitamin Shoppe, such as franchising activity and merchandising category trends (including the retailer's increased private label brand focus).

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Pivotal is an interview-style segment that tackles topics in consumer packaged goods (CPG) and fast moving consumer goods (FMCG) from the business leaders that live it EVERY DAY! After years of keeping the industry in suspense, the FDA recently concluded that CBD can’t be regulated under existing frameworks for dietary supplements and foods/beverages. What? Why? Huh? While I read the FDA announcement both at face value and between the lines, the current state of CBD within the CPG industry is the type of nuanced subject matter that requires additional expertise if I’m going to reach the level of insights I believe you deserve. So, with a multi-year background at the FDA and current C-Suite experience at the publicly traded CBD supplement company cbdMD (NYSE: YCBD), I knew Sibyl Swift, Ph.D. would be the perfect person to help me with this content. Beyond the ins and outs of the recent FDA announcement, we talked about our confidence in Congress to help, how the DEA is getting involved with enforcement of synthetic cannabinoids, and what the Twitter advertising announcement might mean for allowability of other business tools in the near future. Those are just some of the fascinating topics we chatted about in this episode...

Sibyl Swift, Ph.D. LinkedIn

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