Dive Brief:
- Premier Protein maker Bellring Brands will expand into protein-enhanced soda as the brand's flagship protein shakes struggle to keep up with mounting competition.
- Premier Protein Sparkling Soda is expected to launch in the fourth quarter of this year, Bellring CEO Darcy Davenport said in an earnings call Tuesday. Davenport called soda “one of the most underserved segments” of the protein category.
- Each soda will contain 15 grams of protein in four different fruit flavors. Bellring plans to target younger consumers with the soda and expand Premier Protein’s usage into afternoon and midday occasions, Davenport said.
Dive Insight:
As consumers increasingly seek protein-rich foods, protein shake stalwarts like Premier are working to standout against new competition.
Bellring Brands was looking for white space in the protein category and landed what Davenport called "refreshing" protein.
Unlike a protein shake, which is used as a meal replacement or for specific nutritional purposes, sodas can lend themselves to different usage occasions. The company plans to launch the soda in mass retail and through e-commerce.
"As the category develops and matures, what will happen is there will be more … specialized products for different demand moments," Davenport said.
In addition to the soda, Bellring also expects new opportunities in performance or high-protein. The company plans to introduce a 42-gram protein shake, dubbed Premier Protein Ultimate, for consumers seeking high protein levels.
The launches come as the Premier Protein maker reports a contraction in ready-to-drink protein shake spending per household, which Davenport said was the first decline in buy-rate over five years.
The company estimates it has gained approximately 40 new competitors over the last 18 months, a number that Davenport described as “tremendous.”
“As the No. 1 player, we are going to be affected by that,” Davenport said of the competition.
Against the competition, Davenport thinks brands that have the most repeat customers will ultimately come out on top, “and we’re going to be one of those,” she said.
