Athena Vale
Muscle Milk, a protein powder and shake product, has been a staple for gym-goers and athletes. In 2019, the brand was acquired by PepsiCo from Hormel Foods for $465 million. Despite contributing only a small fraction of PepsiCo's $86 billion revenue in 2022, Muscle Milk posted double-digit growth that year and is expanding its consumer base beyond the fitness community. However, Muscle Milk has faced controversies, including lawsuits alleging misleading nutritional information and a class action accusing it of falsely advertising its products as lean.
| Characteristics | Values |
|---|---|
| Current Owner | PepsiCo |
| Previous Owner | Hormel Foods |
| Year Acquired by PepsiCo | 2019 |
| Amount Paid | $465 million |
| Sales in the Last 52 Weeks (as of May 23, 2023) | $413 million |
| Sales Increase | 16.9% |
| Unit Sales Increase | 5.6% |
| Sued for | Misleading Nutritional Information |
| Sued By | Unhappy Consumers |
| Court | California Federal Court |
| Manufacturer | Cytosport Inc. |
| Owner of Cytosport | Hormel Foods Corp. |
Explore related products
What You'll Learn
Muscle Milk sued for misleading nutritional information
Muscle Milk, a protein powder and shake offering, was sued in 2015 for misleading nutritional information. The lawsuit was filed by unhappy consumers against the product's manufacturer, Cytosport Inc., in California federal court. The class-action lawsuit claimed that the company engaged in deceptive sales practices by overstating Muscle Milk's nutritional benefits and included specific protein and nutrient information that was inaccurate and not tested or verified in accordance with federal laws.
The plaintiffs alleged that Cytosport violated numerous state and federal laws by misleading consumers about the presence of certain muscle-building nutrients in their drink products. The complaint stated that Muscle Milk offerings targeted athletes and individuals seeking to lose weight with protein information on the packaging that could not be substantiated through independent testing. Cytosport was also accused of misleading consumers by advertising the products as containing the amino acid L-Glutamine, when in reality, Muscle Milk did not contain significant amounts of this substance.
The lawsuit also claimed that representing Muscle Milk products as "lean" violated federal law and the statutes of California, Florida, and Michigan as the products did not contain less fat than competing products. Cytosport had faced similar charges in 2013 and agreed to pay over $5 million to settle a class-action lawsuit accusing the company of underestimating fat content in its products.
The outcome of the 2015 lawsuit is unclear, however, a separate class-action lawsuit in 2019 against Cytosport for false advertising of Muscle Milk products resulted in a settlement where over 33,300 Class Members received over $30 each.
Despite the lawsuits, Muscle Milk has continued to grow and expand its consumer base. Owned by PepsiCo, the brand has found broader appeal among everyday consumers who use it in various ways beyond muscle recovery, such as adding it to coffee, baked goods, and ice cream.
How Acetylcholinesterase Affects Muscle Movement and Performance
You may want to see also
Explore related products
PepsiCo buys the company for $465 million
PepsiCo has acquired the sports nutrition brand CytoSport, the maker of Muscle Milk, for $465 million. The transaction was completed in 2019 and included the Muscle Milk and Evolve sports nutrition brands. Muscle Milk, a protein drink, was previously owned by Hormel Foods, which acquired CytoSport, the manufacturer of Muscle Milk, in 2014 for $450 million.
Muscle Milk has traditionally been targeted at athletes and gym-goers, but PepsiCo is aiming to broaden its appeal. The brand is now finding favour among a wider range of consumers who are using it as a snack, a creamer in coffee, or as an ingredient in baking and ice cream.
Marissa Pines, the senior marketing director for PepsiCo’s Gatorade portfolio, said: “We're very much like a performance-focused brand without question. But we are seeing that we're appealing to consumers and lots of other occasions outside of muscle recovery. We continue to see consumer adoption and appeal building grow in all these different occasions.”
PepsiCo has said that the acquisition of CytoSport is an example of its strategy to build a consumer-centric portfolio of brands that offer a variety of options across convenient foods and beverages. The company has also stated that Muscle Milk is a key component of its platform geared toward athletic performance and wellness, which also includes its multi-billion-dollar Gatorade brand.
Foods to Eat to Reduce Muscle Soreness
You may want to see also
Explore related products
Muscle Milk bulks up beyond the gym
Muscle Milk, a brand of protein powder and shakes, has been acquired by PepsiCo, which is seeking to expand its usage beyond the gym. Previously owned by Hormel Foods, the brand has traditionally been marketed towards athletes and those seeking to lose weight. However, PepsiCo aims to broaden its appeal by incorporating it into various food and drink offerings.
The expansion of Muscle Milk beyond the gym is part of PepsiCo's strategy to tap into the growing consumer interest in health and wellness. By exploring new ways to incorporate Muscle Milk into food and drink options, the company aims to provide consumers with additional protein sources. This approach aligns with the current trend of consumers prioritising their health and exploring novel ways to use products like Muscle Milk in their daily routines.
Marissa Pines, the senior marketing director for PepsiCo's Gatorade portfolio, acknowledged the brand's traditional association with athletic performance and muscle recovery. However, she emphasised that Muscle Milk is now appealing to a wider range of consumers and usage occasions. The brand has been actively engaging with its consumers on social media, embracing innovative ways they are incorporating Muscle Milk into their diets, such as adding it to coffee, baking, and ice cream.
The move to expand Muscle Milk's usage is a natural progression for PepsiCo, which has been strengthening its position in the sports nutrition and wellness categories. With its multi-billion-dollar Gatorade brand leading the way, Muscle Milk complements this platform by focusing on protein and recovery. Despite Muscle Milk's double-digit growth in 2022, it contributes only a small portion of PepsiCo's $86 billion revenue in the same year.
To further extend its growth, PepsiCo is considering different forms of protein sources and ways to integrate Muscle Milk into new products. While specific details have not been disclosed, the company is committed to making the brand more inclusive and helping consumers own their strength, both physically and mentally. This strategy reflects PepsiCo's recognition of the diverse needs and preferences of its consumers, as well as their desire for transparent and accurate nutritional information.
Exploring the Muscles in Your Thighs: A Comprehensive Guide
You may want to see also
Explore related products
Muscle Milk's tiny slice of PepsiCo's revenue
Muscle Milk, a protein powder and shake brand, has been a part of PepsiCo since 2019 when it was acquired from Hormel Foods. While Muscle Milk has been growing, with sales increasing by 16.9% to $413 million in 2022, it only accounts for a small portion of PepsiCo's $86 billion in revenue for that year.
Muscle Milk has traditionally been associated with health clubs and athletes, but it is now finding broader appeal among everyday consumers. People are incorporating it into their coffee, ice cream, and baked goods, no longer limiting its use to muscle recovery. This expansion beyond the gym is a strategic move by PepsiCo to extend the brand's growth and find new ways to provide protein to consumers.
The company is exploring bringing Muscle Milk into other food and drink offerings, although specific details have not been disclosed. However, PepsiCo has indicated that they are investigating different forms of protein and ways to use the current product. This aligns with the company's mission to make the brand more inclusive and appeal to a wider range of consumers.
To stay competitive, PepsiCo is also introducing plant-based options to attract consumers who are increasingly adopting plant-based products into their daily routines, including muscle building. Muscle Milk Plant Protein Shakes are designed to meet the specific needs of athletes and active individuals, containing 30 grams of plant-based protein, essential amino acids, vitamins, and minerals.
Despite its small contribution to PepsiCo's overall revenue, Muscle Milk is a key component of the company's athletic performance and wellness platform, complementing its multi-billion-dollar Gatorade brand. With its recent growth and market share gains, Muscle Milk is bulking up and broadening its appeal, aiming to become a $1 billion hydration brand.
Understanding Muscle Disorders: Causes and Treatments
You may want to see also
Explore related products
Hormel Foods' reason for selling the company
Muscle Milk, a brand of protein powder and shakes, was sold by Hormel Foods to PepsiCo in 2019 for $465 million. The deal was expected to be completed within two months of its announcement.
Hormel Foods is a multinational manufacturer and marketer of consumer-branded food and meat products, based in Austin, Minnesota. The company has a strong reputation for its products' quality, taste, nutrition, convenience, and value. In 2014, Hormel sought to branch out into protein products that did not involve meat. This led to their acquisition of CytoSport Holdings, Inc., the maker of Muscle Milk products, for $450 million.
CytoSport's brands aligned with Hormel's focus on protein while diversifying its portfolio. The acquisition served as a growth catalyst for Hormel's Specialty Foods segment and expanded its offerings of portable, immediate, protein-rich foods. However, in 2015, Muscle Milk faced a lawsuit over claims of misleading nutritional information. Unhappy consumers filed a class-action lawsuit against the manufacturer, Cytosport Inc., in California federal court. The lawsuit alleged that the company engaged in deceptive sales practices by overstating the nutritional benefits of Muscle Milk on its labels.
Despite this setback, Muscle Milk continued to grow under Hormel's ownership, with total 2014 annual sales expected to reach approximately $370 million. However, in 2019, Hormel decided to sell the company to PepsiCo. The decision was likely influenced by PepsiCo's expertise and experience in the sports nutrition category and its long-standing distribution partnership with CytoSport and the Muscle Milk brand. Jim Snee, CEO and president of Hormel Foods, expressed confidence in PepsiCo's ability to drive further growth for the Muscle Milk business.
Muscle-Building Macros: What, Why, and How?
You may want to see also
Frequently asked questions
Muscle Milk is a protein powder and shake offering that was acquired by PepsiCo from Hormel Foods in 2019.
Muscle Milk was acquired by PepsiCo in 2019 and has since been working to broaden its appeal beyond the gym.
PepsiCo acquired Muscle Milk from Hormel Foods for USD 465 million.
Yes, in 2015, Muscle Milk was sued over claims of misleading nutritional information. The lawsuit claimed that the company engaged in deceptive sales practices by overstating the nutritional benefits of the product.
