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Muscle Milk is a company that manufactures a range of protein supplements and shakes. It was founded in 1998 by Greg and Mike Pickett, a father-son duo, in Walnut Creek, California. The company was initially called CytoSport and is known for its line of Muscle Milk protein supplement products. In 2014, the Picketts sold the company to Hormel Foods for $450 million. However, in 2019, Hormel sold the company to PepsiCo for $465 million. Throughout its journey, from a small startup to being acquired by food giants, Muscle Milk has faced both prosperity and turbulence, including supply impurities and advertising complaints.
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What You'll Learn
CytoSport is the parent company of Muscle Milk
Muscle Milk is a company that manufactures a range of protein supplements and shakes. It was founded in 1998 by Greg and Mike Pickett, a father-son duo, and is based in Walnut Creek, California, United States. The company has experienced changes in ownership over the years.
CytoSport is the original parent company of Muscle Milk. It was founded in 1998 by Greg and Mike Pickett and is based in Benicia, California. The company produces sports-oriented nutritional products, primarily in the form of ready-to-drink beverages and powders. Its Muscle Milk line of protein supplements became its most well-known product.
In 2014, the Pickett family sold CytoSport, the parent company of Muscle Milk, to Hormel Foods for $450 million. This marked the first change in ownership for the company. Hormel Foods is a longtime food industry stalwart known for products like Spam and Dinty Moore. The acquisition of CytoSport allowed Hormel to expand into the protein products market beyond meat-based options.
However, Hormel's ownership of CytoSport was relatively brief. In 2019, just five years after acquiring the company, Hormel sold CytoSport and the Muscle Milk line to PepsiCo for $465 million. This second sale brought the total earnings from the two transactions to over $900 million for the founders.
PepsiCo, the current owner of Muscle Milk, is a subsidiary of PepsiCo organized under the Gatorade line of products. This acquisition allowed PepsiCo to expand its portfolio beyond sugary sodas and venture into the rapidly growing market for protein supplements and sports nutrition.
Throughout its changes in ownership, the Muscle Milk brand has maintained its focus on providing protein-based products to support active lifestyles.
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PepsiCo acquired Muscle Milk in 2019
Muscle Milk is a company that manufactures a range of protein supplements and products. It was founded in 1998 by Greg and Mike Pickett, a father-son duo. The company is known for its line of Muscle Milk protein supplement products, which are primarily in the form of ready-to-drink beverages and powders.
In 2014, Austin, Minn.-based Hormel Foods acquired CytoSport, the manufacturer of Muscle Milk, for approximately $450 million. However, on February 20, 2019, PepsiCo, Inc. announced that it had agreed to acquire CytoSport, the sports nutrition business, from Hormel Foods Corp. The financial terms of the transaction were not disclosed, but this acquisition was the first for PepsiCo's new CEO, Ramon Laguarta.
With this acquisition, PepsiCo boosts its sports nutrition credentials and gains a dynamic business with a strong market position. Muscle Milk has a range of protein products that feature the nutrients demanded by active individuals. The company has a portfolio of six flavoured protein shake products, including smoothie protein shakes, organic protein shakes, and pro-series protein shakes. Additionally, they offer protein powder and protein bar products that are gluten-free and suitable for lactose-sensitive individuals.
Before being acquired by PepsiCo, Muscle Milk was involved in several trademark and advertising disputes. In 2009, a federal court ordered Vital Pharmaceuticals, Inc. to remove Muscle Power from the marketplace due to trademark infringement. Additionally, Nestle USA challenged Muscle Milk's advertising, alleging that consumers were misled into thinking it was a milk product rather than a dietary supplement. Despite these challenges, Muscle Milk has received endorsements from notable athletes and has been awarded for its performance as a small company.
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Hormel Foods sold Muscle Milk to PepsiCo
Muscle Milk, a company that manufactures a range of protein supplements and powder products, was acquired by PepsiCo on February 20, 2019, for $465 million. The company was previously owned by Hormel Foods, which had purchased it in 2014 for $450 million.
Hormel Foods' decision to sell Muscle Milk to PepsiCo was likely influenced by the latter's strong position and expertise in the sports nutrition category. As a subsidiary of PepsiCo, Muscle Milk joins the Gatorade line of products, benefiting from synergies and cross-selling opportunities within the PepsiCo portfolio.
The acquisition of Muscle Milk aligns with PepsiCo's strategy of building a consumer-centric portfolio of brands that offer a diverse range of options across convenient foods and beverages. This move signals PepsiCo's recognition of the growing demand for sports and wellness products, with Muscle Milk serving as a well-known brand in this space.
For Hormel Foods, the sale of Muscle Milk represents an exit from the protein powder and drinks market. Despite the success of Muscle Milk, Hormel Foods recognized that PepsiCo's expertise and distribution capabilities would better support the long-term growth and development of the brand.
The transaction between Hormel Foods and PepsiCo demonstrates the dynamic nature of the industry, with companies adapting to evolving market demands and strategic priorities. The financial terms of the deal between Hormel Foods and PepsiCo were not disclosed to the public, leaving the exact details of the acquisition unknown.
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Muscle Milk was founded by Greg Pickett
Pickett's innovation with Muscle Milk was to make protein drinks palatable for mainstream consumers. Indeed, Muscle Milk's Chocolate powder was found to contain high levels of heavy metals, including cadmium, lead, arsenic, and mercury. Despite this, Muscle Milk remains a popular product, and the company reportedly earned $200 million in 2008.
Pickett has also been involved in a championship-winning North American sports car racing team. Founded in 2007, the team has competed in the American Le Mans Series, the 24 Hours of Le Mans, and the Tudor United SportsCar Championship. The team's successes include overall and class victories, as well as the 2012 and 2013 American Le Mans Series LMP1 Drivers' and Teams' Championship.
Following the sale of Muscle Milk, Pickett launched Flavor Insights, a flavour innovation and product development firm. The company operates out of a 111,000 sq. ft. state-of-the-art production facility in Benicia, California, and retains the core team behind CytoSport, including Pickett's son, Michael, and daughter, Nikki Brown. Flavor Insights aims to meet the needs of both early-stage and established companies with its formulaic expertise and experience in the brand side of the business.
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Muscle Milk's products include protein shakes and powders
Muscle Milk is a company that manufactures a range of protein supplements and is owned by PepsiCo. It was founded in 1998 by the father-son duo of Greg and Mike Pickett and is based in Walnut Creek, California. The company produces a variety of protein products, including shakes and powders, which are designed to provide the nutrients required for an active lifestyle.
Muscle Milk's products include a range of protein shakes and powders with different flavours and nutritional profiles. The shakes are ready-to-drink and come in various formulations such as Zero, Geniune, Pro Series, Coffee House, and Smoothie. The powders also have different options, including Unflavored, Zero, Genuine, 100% Whey Protein, Gainer, and Creatine.
The Genuine Protein Shake, for example, provides 25 grams of high-quality protein to support muscle rebuilding, growth, and maintenance. It also contains zero sugar, 6 grams of fibre, and is a good source of Calcium and Vitamins A, C, and D. This particular shake comes in several flavours, including Banana Crème, Chocolate, Cookies 'n Crème, Strawberries 'n Crème, and Vanilla Crème.
Muscle Milk's products are marketed towards individuals with active lifestyles and those looking to support their muscle health and growth. The company has faced some challenges regarding the marketing of its products, with Nestle USA alleging that the branding of Muscle Milk as a supplemented milk product was misleading to consumers. However, CytoSport, the manufacturer of Muscle Milk, defended its product claims and trademark.
In terms of safety, there have been some concerns regarding heavy metal levels in certain Muscle Milk products. Consumer Reports found that the Vanilla Crème powder exceeded the USP limits for cadmium and lead, and its arsenic levels were also close to the maximum limit. However, CytoSport responded by stating that their popular Chocolate liquid shakes did not exceed the proposed maximum levels of heavy metals, even with multiple daily servings.
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Frequently asked questions
PepsiCo.
Greg Pickett.
February 20, 2019.
Muscle Milk is a range of protein supplements and shakes.
