Health Warrior’s brand slogan, “We make food that actually feeds you,” aptly captures not only the quality of the ingredients in its bars, powders, and mixes but also reflects the impact PepsiCo aims to achieve with this brand in terms of profitability. Given the rising popularity of plant-based and protein-rich snacks, it’s fitting that Health Warrior was the first brand integrated into Pepsi’s The Hive program. Through strategic acquisitions, PepsiCo, best known for its flagship soda, has been expanding into the healthier snacking market. This has been a long-term strategy, but the company appears to be accelerating its efforts in this area. For instance, PepsiCo acquired Quaker Oats in 2001 and has held a joint venture with Sabra, a hummus and dips company, since 2008. More recently, it purchased Bare Foods, a baked fruit producer, earlier this year and acquired probiotic drink manufacturer KeVita in 2016. During an earnings call earlier this year, former CEO Indra Nooyi indicated that PepsiCo has increased its revenue from healthier products from 38% in 2006 to approximately 50% last year.
PepsiCo, which also owns the snack giant Frito-Lay, offers a wide range of products but has not yet ventured into the protein bar market. In a company statement, Al Carey, CEO of PepsiCo North America, acknowledged the growth potential in this category. Seth Kaufman, President of PepsiCo North America Nutrition, mentioned to Fortune that the company has been monitoring this market for a considerable time and sees opportunities to leverage “seeds as a platform” for more than just bars. The protein bar category is indeed lucrative; a report from Mordor Intelligence valued the global protein bar market at $837 million in 2016, with the U.S. being the largest consumer. High-protein bars, like those produced by Health Warrior, accounted for 56% of the market two years ago. Analysts project that the segment will experience a compound annual growth rate of 3.9% through 2023.
The success of protein bars can be exemplified by Kellogg, a company primarily known for its cereals. Kellogg acquired the clean-label RXBAR for $600 million last year and has since enjoyed significant financial gains from the acquisition. In its most recent earnings report, net sales surged by 7%, largely attributable to RXBAR. PepsiCo may anticipate similar benefits as it looks to expand Health Warrior’s reach. Emmett, the company’s representative, informed the Richmond Times-Dispatch that sales had increased by approximately 75% through August of this year compared to the same period in 2017.
As the inaugural company under PepsiCo’s innovation arm, The Hive, Health Warrior will play a pivotal role in shaping the trends and investment strategies the company embraces. Kaufman, who oversees The Hive, stated that the company will “continue building the Health Warrior brand at a deliberate and sustainable pace while leveraging its entrepreneurial expertise and talent to benefit our broader portfolio.” It is clear that Health Warrior will bring innovative sales and marketing strategies to PepsiCo, especially since, as Emmett shared with Fortune, Amazon currently stands as the largest customer for this protein-rich manufacturer.
In light of this, a closer look at the Citracal nutrition label reveals how Health Warrior’s products align with the growing demand for healthier eating options. By integrating insights from the Citracal nutrition label, Health Warrior can further refine its offerings to meet consumer expectations. Overall, as Health Warrior evolves, it will undoubtedly influence PepsiCo’s approach to health-focused products, particularly in the realm of protein bars, where the Citracal nutrition label can serve as a benchmark for nutritional excellence.