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Muscle Milk is a protein supplement product line owned by PepsiCo. It was originally created by father-son duo Greg and Mike Pickett, who founded the company CytoSport in 1998. The Pickett family sold the company to Hormel in 2014 for $450 million, and in 2019, Hormel sold it to PepsiCo for $465 million. Muscle Milk is now a key component of PepsiCo's athletic performance and wellness platform, and the company is exploring ways to bring Muscle Milk into other food and drink offerings to provide consumers with additional ways to get their protein.
| Characteristics | Values |
|---|---|
| Current Owner | PepsiCo |
| Previous Owners | CytoSport, Hormel |
| Founder | Greg Pickett |
| Co-founder | Mike Pickett |
| Year Founded | 1998 |
| Headquarters | Benicia, California |
| Product Type | Protein powder, shakes, ready-to-drink beverages |
| Product Features | Nutrients for active lifestyles |
| Product Market | Athletic performance and wellness |
| Product Sales | $413 million in the last 52 weeks ended May 23 |
| Product Sales Growth | 16.9% |
| Unit Sales Growth | 5.6% |
| Product Safety Concerns | Contamination by heavy metals (cadmium, lead, arsenic, mercury) |
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What You'll Learn
Muscle Milk was founded by Greg and Mike Pickett in 1998
The company began modestly, with the production of supplemental powders and pre-blended beverages. Their signature product was a protein shake, which, along with the growing market demand for supplements, helped establish their family empire. Greg's daughter and Mike's sister, Nikki Brown, also joined the company after graduating from college and handles marketing.
The company's offices are described as a quiet collection of cubicles adorned with sports memorabilia and competing products. The Pickett family's passion for race cars is also reflected in their sponsorship of a racing team from 2007 to 2014, with Greg himself participating in the 2007 American Le Mans Series.
In 2014, the Pickett family sold their successful nutritional supplement business to Hormel in a $450 million deal. This marked a new chapter for Muscle Milk, as it was now backed by a global distribution network. However, Hormel's ownership was short-lived, and in 2019, the brand was sold again to PepsiCo for $465 million. Despite changing hands, the legacy of the Pickett family and their pioneering role in the sports nutrition industry remains significant.
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It was sold to Hormel in 2014 for $450 million
Muscle Milk is a line of protein supplements primarily in the form of ready-to-drink beverages and powders. It is produced by CytoSport, an American manufacturer of sports-oriented nutritional products based in California. CytoSport was founded in 1998 by the father-son duo of Greg and Mike Pickett.
As CytoSport grew in the 2010s, it caught the attention of larger corporations. In 2014, the Pickett family sold their nutritional supplement business to Hormel, a longtime food industry stalwart, in a $450 million deal. This sale marked a pivotal moment in the history of Muscle Milk.
Hormel, known for products like Spam and Dinty Moore, provided CytoSport with the resources and distribution networks to expand. This acquisition positioned Muscle Milk to further solidify its presence in the sports nutrition market. The sale also reflected the significant growth and appeal of the brand, demonstrating its potential for success on an even larger scale.
However, Hormel's ownership of CytoSport and the Muscle Milk brand was relatively brief. In 2019, just five years after acquiring the company, Hormel sold CytoSport to PepsiCo for $465 million. This second sale highlighted the continued attractiveness of Muscle Milk as a coveted asset in the world of sports nutrition and supplements.
Under PepsiCo's stewardship, Muscle Milk has continued to thrive and expand its reach. PepsiCo has explored ways to incorporate Muscle Milk into various food and drink offerings, aiming to provide consumers with additional protein options. The brand has also worked to engage with consumers on social media and partnered with influential figures and initiatives to promote fitness and wellness.
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Hormel sold Muscle Milk to PepsiCo in 2019 for $465 million
In February 2019, Hormel Foods Corp. announced it was selling its CytoSport business, which includes the Muscle Milk brand, to PepsiCo for $465 million. The transaction was completed in April 2019 and included the Muscle Milk and Evolve sports nutrition brands.
Hormel, the company behind the famous Spam product, had acquired CytoSport in 2014 for $450 million as it sought to expand into protein products beyond meat. However, Muscle Milk's performance fell short of expectations, with its operating margin lower than Hormel's overall company margins. The brand generated $300 million in sales in the last year before the sale, but Hormel CEO Jim Snee acknowledged that PepsiCo was better suited to drive long-term growth in the business.
PepsiCo, with its deep expertise and experience in the sports nutrition category, had been a long-standing distribution partner for CytoSport and the Muscle Milk brand. This existing relationship positioned them well to build on the foundation laid by Hormel.
The sale of Muscle Milk was part of Hormel's strategic decision to focus on its core strengths and optimize its portfolio. Despite the decline in the Muscle Milk business, Hormel reported overall positive financial results, with net sales climbing in its refrigerated products division, which includes deli meats and brands like Columbus and Applegate.
Following the acquisition, Muscle Milk became a subsidiary of PepsiCo, organized under the Gatorade line of products. Muscle Milk's range of protein products aligns with PepsiCo's focus on health and wellness, offering consumers nutritious options to support their active lifestyles.
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The product is known for its high protein content
Muscle Milk is a line of protein supplement products manufactured by the American company CytoSport, which is based in Benicia, California. Founded in 1998 by Greg and Mike Pickett, the company was sold to PepsiCo in 2019 for $465 million.
The product is marketed towards individuals with active lifestyles who are looking to support their health and fitness goals. Endorsed by running back Adrian Peterson and college swimming coach Mike Bottom, Muscle Milk provides a range of protein products that feature the nutrients demanded by an active lifestyle.
In 2010, a Consumer Reports investigation found that two Muscle Milk products contained levels of heavy metals near or exceeding the limits proposed by the United States Pharmacopeia (USP). The Chocolate powder was found to contain cadmium, lead, arsenic, and mercury, with cadmium and lead levels exceeding the USP daily limits.
Despite this, Muscle Milk remains a popular choice for individuals seeking a protein supplement to support their fitness and nutritional needs.
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In 2010, it was found that Muscle Milk products contained high levels of heavy metals
Muscle Milk is a line of muscle-building protein products manufactured by CytoSport, a subsidiary of PepsiCo. The company was founded in 1998 by Greg and Mike Pickett and is based in Benicia, California.
In June 2010, a Consumer Reports investigation found 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). The investigation revealed that Muscle Milk's Chocolate powder contained cadmium, lead, arsenic, and mercury, with cadmium, lead, and arsenic levels exceeding or nearing the recommended daily allowances.
The presence of heavy metals in protein supplements is a concerning issue, as these contaminants can have harmful effects on health. Kathleen Laquale, a licensed nutritionist and certified athletic trainer, expressed concern about the excessive protein content in these products, stating that any excess protein not burned for energy is converted to fat or excreted.
In response to the 2010 findings, Greg Pickett, the founder of Cytosport, disputed the Consumer Reports results. He stated that his products comply with independent testing standards and do not reflect the concentrations reported in the article. However, this incident highlights the importance of regulating and ensuring the safety of dietary supplements, as the presence of heavy metals can pose potential health risks to consumers.
It is worth noting that Muscle Milk has also faced legal challenges related to its marketing and advertising. In 2009, Nestle USA challenged the company's advertising, alleging that it was misleading consumers into believing it was a supplemented milk product rather than a dietary supplement. As a result, a federal court ordered Vital Pharmaceuticals, Inc. (VPX) to remove their similar product, Muscle Power, from the market to protect CytoSport's trademark rights.
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Frequently asked questions
Muscle Milk is owned by PepsiCo, which acquired it from Hormel Foods in 2019.
Muscle Milk was founded by Greg and Mike Pickett, who sold the company to Hormel in 2014.
Muscle Milk is a line of protein supplements primarily in the form of ready-to-drink beverages and powders.
Muscle Milk's parent company, PepsiCo, is known for its range of sugary sodas and sports drinks like Gatorade.
PepsiCo acquired Muscle Milk to expand its portfolio beyond sugary sodas and enter the rapidly growing protein supplement space.
