Logan Steele
Gatorade is owned by PepsiCo, which also owns Muscle Milk. Muscle Milk was acquired by PepsiCo from Hormel Foods in 2019 for $465 million. Muscle Milk is a sub-brand of CytoSport, which was founded by Greg Pickett. The brand has been expanding its product offerings beyond health clubs and hardcore athletes to target a broader range of consumers.
| Characteristics | Values |
|---|---|
| Owner of Muscle Milk | PepsiCo |
| Year PepsiCo acquired Muscle Milk | 2019 |
| Previous owner of Muscle Milk | Hormel Foods |
| Year Hormel Foods sold Muscle Milk | 2019 |
| Amount paid by PepsiCo for Muscle Milk | $465 million |
| Muscle Milk's sub-brand | Evolve |
| Year Evolve was launched | 2017 |
| Evolve's composition | Plant-based protein |
| Muscle Milk's parent company | CytoSport |
| Gatorade's owner | PepsiCo |
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What You'll Learn
PepsiCo acquired Gatorade and Muscle Milk in 2019
PepsiCo's acquisition of Gatorade and Muscle Milk in 2019 has allowed the company to expand its athletic performance and wellness platform. Muscle Milk, a former subsidiary of CytoSport, was purchased by PepsiCo from Hormel Foods in February 2019 for $465 million. This acquisition included the Evolve sports nutrition brand, which was originally launched by Muscle Milk's parent company in 2017.
The addition of Muscle Milk to the PepsiCo portfolio was a strategic move to diversify beyond its sugary soda offerings and tap into the growing market for sports nutrition and wellness products. Muscle Milk, known for its line of protein drinks, bars, and powders, complements PepsiCo's existing sports beverage brand, Gatorade, and allows the company to cater to a wider range of consumer needs in the athletic performance space.
Marissa Pines, senior director of Gatorade Next Gen, highlighted the distribution strength that PepsiCo brings to the Muscle Milk brand. Additionally, Muscle Milk stands out in the market for its high protein and amino acid content, offering 25 grams of protein per 11 oz. carton, which is slightly higher than some of its competitors.
Since the acquisition, PepsiCo has worked to expand the Muscle Milk brand beyond its traditional association with health clubs and hardcore athletes. The company is exploring ways to incorporate Muscle Milk into other food and drink offerings to give consumers more options for protein intake. This strategy aims to make the brand more inclusive and accessible to a broader range of consumers who are seeking plant-based or protein-rich alternatives.
The expansion of the Muscle Milk brand has contributed to its success, with double-digit growth reported in 2022 and increasing sales and unit sales in the following year, indicating strong consumer demand. This success showcases PepsiCo's ability to leverage its distribution networks and brand management expertise to drive growth and market share gains for its acquired brands.
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Muscle Milk is owned by CytoSport
In February 2019, Hormel announced it was selling the CytoSport business, including the Muscle Milk and Evolve sports nutrition brands, to PepsiCo, Inc. for $465 million. The transaction was completed in April 2019, making Muscle Milk a subsidiary of PepsiCo, organized under the Gatorade line of products.
Muscle Milk is primarily known for its line of protein supplement products, available in ready-to-drink beverages and powders. The brand has faced some controversies, including a 2010 investigation by Consumer Reports that found high levels of heavy metals in certain Muscle Milk products. Despite this, Muscle Milk has continued to expand and innovate, including the launch of new product lines such as Muscle Milk Plant, which stands out for its high protein and amino acid content.
Overall, Muscle Milk's ownership by CytoSport and subsequent acquisition by PepsiCo have contributed to its brand recognition and expansion in the sports nutrition market.
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Muscle Milk's products contain high levels of heavy metals
Muscle Milk, a sub-brand of CytoSport, was acquired by PepsiCo in 2019. The company's products have been found to contain high levels of heavy metals. In 2010, a Consumer Reports investigation revealed that two of Cytosport's Muscle Milk products contained levels of heavy metals near or exceeding the limits proposed by the United States Pharmacopeia (USP). Muscle Milk's Chocolate powder was found to contain four heavy metals: cadmium, lead, arsenic, and mercury. The average cadmium levels of 5.6 μg in three daily servings exceeded the USP limit of 5 μg per day, while the average lead level of 13.5 μg topped the USP limit of 10 μg per day. The average arsenic level of 12.2 μg was also near the USP limit of 15 μg per day.
In response to these findings, CytoSport stated that its Muscle Milk Chocolate liquid shakes, the company's most popular consumer form of Muscle Milk, did not exceed the proposed maximum levels of any heavy metals tested, even when used three times per day. Greg Pickett, the founder of CytoSport, disputed the Consumer Reports findings. However, the National Advertising Division (NAD) of the Council of Better Business Bureaus (BBB) referred to advertising claims made by CytoSport Beverage Co., indicating concerns about the marketing of Muscle Milk as potentially misleading to consumers.
The presence of heavy metals in protein powder supplements has raised concerns among consumers and health professionals. A study by the Clean Label Project, a nonprofit organization examining labeling safety issues, found detectable levels of at least one heavy metal in almost all of the 134 products tested. The study also revealed that 55% of the products tested positive for BPA, a chemical found in plastic containers and food can liners. These substances have been linked to cancer, brain damage, and reproductive issues, and they can accumulate in the body for years.
It is important to note that the health risks associated with heavy metal ingestion from protein powder supplements have not been systematically analyzed. A human health risk assessment study found that the exposure concentrations of the studied metals did not pose an increased health risk, and the typical intake of dietary supplements is not expected to result in adverse health effects due to heavy metals. However, consumers should be aware of the potential presence of heavy metals in these products and make informed decisions based on their own research and the advice of healthcare professionals.
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Gatorade and Muscle Milk are expanding their product lines
In 2019, PepsiCo, Inc. acquired the sports nutrition company, CytoSport, which owns the Muscle Milk brand. This transaction, which cost $465 million, marked PepsiCo's expansion into the sports nutrition market and its portfolio of health and wellness brands.
Muscle Milk offers a range of protein-based products, including ready-to-drink shakes and powdered supplements. Their products are designed to support muscle rebuilding, growth, and maintenance of muscle mass. The brand has faced some scrutiny over the years due to allegations of misleading advertising and the presence of heavy metals in certain products, but they have worked to address these concerns.
On the other hand, Gatorade, a well-known sports drink brand, has also been expanding its product line. While they are not owned by the same company as Muscle Milk, Gatorade has ventured beyond their classic sports drinks and now offers a variety of products aimed at athletes and active individuals. Some of their newer offerings include protein bars, gels, and even sports nutrition powders.
Both Gatorade and Muscle Milk are recognised for their focus on sports performance and recovery. With their respective expansions, they offer a diverse range of options for consumers seeking convenient and effective ways to support their fitness goals, whether it's through hydration, muscle recovery, or on-the-go nutrition.
As consumers increasingly prioritise health and wellness, the expansion of these product lines showcases the brands' adaptability and commitment to meeting the diverse needs of their customers. By offering a broader range of products, Gatorade and Muscle Milk are well-positioned to cater to athletes, fitness enthusiasts, and anyone looking to enhance their nutritional intake and overall well-being.
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Muscle Milk is broadening its consumer base
Muscle Milk, a brand synonymous with protein, is broadening its consumer base. The brand, which was acquired by PepsiCo in 2019, is known for its high-protein content, with 25 grams per 11 oz carton. In the past, it has been associated primarily with male weightlifters and bodybuilders. However, Muscle Milk is now seeking to appeal to a wider range of consumers, including female athletes and those who follow a plant-based diet.
In 2016, the brand launched a campaign called Stronger Everyday, featuring NBA star Stephen Curry, to showcase its appeal beyond the realm of weightlifters and bodybuilders. The campaign aimed to tap into the growing popularity of protein among the general population, with an increasing number of consumers seeking high-protein options.
Muscle Milk has also introduced new products to attract different types of customers, such as its organic line, smoothies, and a caffeinated line called Coffee House. These new offerings were designed to meet the needs of active females, providing lower-calorie options and a broader range of flavours. The brand has also expanded its plant-based offerings with the launch of Muscle Milk Plant, catering to consumers who want to incorporate more plants into their diets.
Muscle Milk Plant stands out in the market for its high protein and amino acid profile. While many competing products offer around 20-22 grams of protein per bottle, Muscle Milk Plant provides 25 grams. This expansion into plant-based options allows the brand to retain consumers who might otherwise have been drawn to competitors and attract new buyers seeking performance-oriented plant-based options.
In addition to its marketing and product innovations, Muscle Milk has also faced challenges, including concerns over the safety of its ingredients and lawsuits regarding its marketing language. However, the brand continues to evolve and adapt to meet the changing needs and preferences of its diverse consumer base.
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Frequently asked questions
Yes, Gatorade, owned by PepsiCo, acquired Muscle Milk in 2019.
Muscle Milk is a protein powder and shake offering that is popular among hardcore athletes. It is owned by CytoSport and was acquired by PepsiCo in 2019.
Gatorade is a sports drink brand owned by PepsiCo. It has recently launched new products such as an energy drink and rapid rehydration solutions.
