Premier Protein Product Recall Fear Was Overblown | BellRing Brands 2022 Q4 Update

Purchasing volume has fallen for both Premier Protein and Dymatize, yet total revenues for the brands keep climbing…what’s going on here? As I normally do with my performance update content of publicly-traded functional CPG brands, I will use the recently filled earnings report, earnings conference call, and any relevant publicly disclosed news, in this case it’s Bellring Brands (NYSE: BRBR) 2022 Q4 earnings release, to obviously update you on the performance of brands in that portfolio, but also use it as the backdrop to discuss market insights within the active nutrition formats of the liquids, powders, and bars. BellRing Brands is a portfolio that owns a collection of convenient nutrition brands like Premier Protein, Dymatize Nutrition, Powerbar, and Joint Juice, which was previously wholly-owned by Post Holdings. A fast-paced and busy lifestyle is pushing consumers to switch to quick and healthy meal options. This has resulted in the increased household penetration of RTD protein shakes that promote active lifestyles. Bellring Brands had a strong 2022 Q4 with net sales reaching $379.2 million, which was up 11.5% YoY. Premier Protein (81% of BellRing Brands total revenue) grew 10.1% YoY because it was able to exercise pricing power because of its strong brand equity in the inflationary market. Dymatize Nutrition was up 31.6% YoY stemming from price increases. I also give some more detail later in the content about why both Premier Protein and Dymatize struggled with comparative volumes. Finally, I explain why the voluntary product recall, that was initiated by one of the company’s contract manufacturers, might not be much of a problem to available supply and brand equity at all based on information that I found throughout the financial documents. FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS LINKEDIN - https://www.linkedin.com/in/joshuaschallmba TWITTER - https://www.twitter.com/joshua_schall INSTAGRAM - https://www.instagram.com/joshua_schall FACEBOOK - https://www.facebook.com/jschallconsulting MEDIUM - https://www.medium.com/@joshuaschall