Alec Titan
Muscle Milk is a protein powder and shake brand that was founded by Greg Pickett in 2007. The company, CytoSport, was acquired by Hormel Foods in 2014 for $450 million and then sold to PepsiCo in 2019 for $465 million. Muscle Milk has traditionally been marketed towards athletes and gym-goers, but PepsiCo is attempting to broaden its appeal to everyday consumers.
| Characteristics | Values |
|---|---|
| Year Muscle Milk was founded | 1998 |
| Founder of Muscle Milk | The Pickett family |
| Company that owns Muscle Milk | PepsiCo |
| Year Muscle Milk was acquired by PepsiCo | 2019 |
Explore related products
What You'll Learn
- Muscle Milk was founded by Greg Pickett in 1998
- Hormel Foods acquired Muscle Milk's parent company, CytoSport, in 2014
- PepsiCo bought Muscle Milk from Hormel Foods for $465 million in 2019
- Muscle Milk's products have been criticised for containing high levels of heavy metals
- Muscle Milk's marketing has been accused of being misleading by Nestle USA
Muscle Milk was founded by Greg Pickett in 1998
In 2014, Hormel Foods purchased CytoSport from the Pickett family and TSG Consumer Partners for $450 million. At the time, CytoSport was a leading provider of premium protein products in the sports nutrition category, with Muscle Milk being a staple for gym-goers and athletes.
However, in 2019, Hormel announced it was selling the CytoSport business, including the Muscle Milk brand, to PepsiCo, Inc. for $465 million. This transaction was completed in April 2019, with PepsiCo recognising the potential to expand the brand beyond its traditional consumer base of athletes and gym enthusiasts.
Since the acquisition, PepsiCo has been working to broaden the appeal of Muscle Milk, promoting it as a versatile protein source that can be used in various food and drink offerings. The brand has seen significant growth under PepsiCo, with sales increasing 16.9% to $413 million in the 52 weeks ended May 23, outpacing the price increase and indicating a genuine rise in demand.
The Exciting Autonomy of Cardiac Muscle Cells
You may want to see also
Explore related products
Hormel Foods acquired Muscle Milk's parent company, CytoSport, in 2014
Muscle Milk is a product of CytoSport, a company founded by the Pickett family in 1998 and based in Benicia, California. CytoSport was acquired by Hormel Foods in 2014 for $450 million.
Hormel Foods, a multinational manufacturer and marketer of consumer-branded food and meat products, is based in Austin, Minnesota. The company is known for its expertise and innovation in pork and turkey processing and marketing, bringing branded, value-added products to the global marketplace.
The acquisition of CytoSport was a strategic move by Hormel Foods to expand its portfolio and diversify its offerings in the sports nutrition category. CytoSport's leading brand in the ready-to-drink protein beverage category, Muscle Milk, aligned with Hormel's focus on protein-rich foods. The purchase price of approximately $450 million was expected to provide about 5 cents per share accretion in fiscal 2015, with a neutral impact on fiscal 2014 earnings, including transaction costs.
Hormel Foods' acquisition of CytoSport demonstrates the company's commitment to growth and innovation, leveraging CytoSport's expertise in sports nutrition and protein-packed products. This move allowed Hormel to cater to a wider range of consumers seeking convenient, immediate, and protein-rich food options.
In February 2019, Hormel announced the sale of CytoSport, including the Muscle Milk brand, to PepsiCo, Inc. for $465 million. The transaction was completed in April 2019, marking another chapter in the evolution of the Muscle Milk brand.
The Complex Interplay: Nerves and Muscles Intertwined
You may want to see also
Explore related products
PepsiCo bought Muscle Milk from Hormel Foods for $465 million in 2019
Muscle Milk was founded by Greg Pickett in 2007. In 2014, Austin-based Hormel Foods acquired Muscle Milk's manufacturer, CytoSport Holdings, Inc., for approximately $450 million.
Five years later, in February 2019, Hormel announced it was selling CytoSport to PepsiCo, Inc. for $465 million. The transaction included the Muscle Milk and Evolve sports nutrition brands, and it was completed in April 2019.
The sale of Muscle Milk was PepsiCo's new Chief Executive Officer, Ramon Laguarta's, first acquisition. Hormel Foods' CEO and president, Jim Snee, commented on the deal:
> PepsiCo has deep expertise and experience in the sports nutrition category and has been a long-standing distribution partner for CytoSport and the Muscle Milk brand, which puts them in a strong position to grow this dynamic business. We look forward to working with PepsiCo to ensure a smooth transition for our team members, suppliers, customers and consumers.
Muscle Milk products include ready-to-drink beverages, protein-based powders, sports nutrition bars, and energy chews.
The Scapula: Muscle or Bone?
You may want to see also
Explore related products
Muscle Milk's products have been criticised for containing high levels of heavy metals
Muscle Milk is a line of protein supplement products by the American manufacturer of sports-oriented nutritional products, CytoSport, which was founded in 1998. The products are primarily in the form of ready-to-drink beverages and powders.
In June 2010, a US consumer advocacy magazine, Consumer Reports, found that two of Cytosport's Muscle Milk products contained levels of heavy metals near or exceeding levels proposed by the United States Pharmacopeia (USP). The products in question were Muscle Milk's Chocolate powder and Vanilla Crème powder. The 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, and 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 near the USP limit of 15 μg per day, and the average for mercury was 0.7 μg, well below the USP's 15 μg-per-day limit.
Vanilla Crème powder was also found to contain high levels of heavy metals, with 12.2 μg of lead in three daily servings, exceeding the lead limits, and 11.2 μg of arsenic. A fourth product, the Muscle Milk Nutritional Shake Chocolate (liquid), provided an average of 14.3 μg of arsenic per day from three servings, approaching the proposed USP limit.
In response, CytoSport stated that its most popular product, Muscle Milk Chocolate liquid shakes, did not exceed the proposed maximum levels of any heavy metals tested, even when used three times per day. The company's founder, Greg Pickett, also indicated that NSF International released a conclusion that its test results did not reflect the concentrations stated in the Consumer Reports article.
Some people have expressed concern about the high levels of heavy metals in Muscle Milk products, with one Reddit user commenting that they would be "much more worried about the synthetic ingredients and sugar/sweeteners in that crap drink than heavy metals". Another user questioned how dangerous the levels of heavy metals in the products are, stating that they consume around 150 grams of protein from Muscle Milk per day, which would equate to a daily intake of 19 micrograms of arsenic, 9 micrograms of cadmium, 21 micrograms of lead, and 1 microgram of mercury.
It is worth noting that Muscle Milk has faced criticism and legal challenges for other reasons as well. In 2009, Nestle USA challenged the marketing of Muscle Milk, alleging that it was false and misleading, as consumers might think it was a supplemented milk product instead of a dietary supplement. Additionally, CytoSport filed a lawsuit against VPX, stating that their Muscle Power product's packaging was deceptively similar to Muscle Milk's, leading to a federal court injunction requiring VPX to remove Muscle Power from the marketplace.
Muscle Shots: Why COVID Vaccines Target Deltoids
You may want to see also
Explore related products
Muscle Milk's marketing has been accused of being misleading by Nestle USA
Muscle Milk, a fortified drink popular with athletes, was first introduced as a powder mix and later gained significant popularity in 2004 when it launched a ready-to-drink version. The brand, owned by CytoSport, claims that its product resembles mother's milk due to the presence of "fast-burning fats" called medium-chain diglycerides. It also offers flavours such as "vanilla crème" and "cookies 'n crème," suggesting a taste comparable to dairy milk.
However, in 2009, Nestle USA accused Muscle Milk's marketing of being misleading to consumers. Nestle, a company that also produces milk-based beverages, filed a complaint with the National Advertising Division (NAD) of the Council of Better Business Bureaus (BBB). Nestle's main argument was that Muscle Milk's branding and marketing implied that it was a supplemented milk product, while in reality, it is a water-based product that contains no milk. Nestle's complaint described Muscle Milk's marketing as "deceptively misdescriptive."
CytoSport, the company behind Muscle Milk, countered Nestle's claims by stating that they had never marketed their product as flavoured dairy milk. Instead, they emphasised that Muscle Milk is modelled after human mother's milk, which they consider to be one of nature's most balanced foods. CytoSport also highlighted that their marketing and advertising materials had consistently communicated that Muscle Milk is a high-protein nutrition product.
The dispute between Nestle USA and CytoSport over Muscle Milk's marketing and branding led to a legal battle. On May 6, 2009, a federal court issued a preliminary injunction against Vital Pharmaceuticals, Inc. (VPX), enforcing them to remove their product, Muscle Power, from the market due to trademark infringement of Muscle Milk. Additionally, CytoSport faced scrutiny from Consumer Reports, a US consumer advocacy magazine, which found that certain Muscle Milk products contained levels of heavy metals near or exceeding proposed limits.
Despite the accusations and legal challenges, Muscle Milk and its parent company, CytoSport, have continued to operate and expand. In 2019, Hormel sold CytoSport, including the Muscle Milk brand, to PepsiCo, Inc. for $465 million, signalling the brand's enduring presence in the market.
Lungs: Organs or Muscles? Understanding Their Function and Nature
You may want to see also
Frequently asked questions
Muscle Milk was founded in 1998 by the Pickett family.
PepsiCo bought Muscle Milk from Hormel Foods in 2019 for $465 million.
Muscle Milk is a protein powder and shake offering that is popular among gym goers and athletes.
