As protein shakes shift from niche to mainstream, longtime category leader Premier Protein knows first-mover advantage isn’t enough for long-term success, which is why owner BellRing Brands is deploying classic and cutting-edge strategies to defend and extend its lead amid a surge of fast-following insurgents.
“BellRing Brands is a pure-play company focused on the convenient nutrition category,” which is “high growth, low household penetration and has a ton of opportunity and a lot of tailwinds,” President and CEO Darcy Horn Davenport told investors this week at the Morgan Stanley Global Consumer & Retail Conference.
She explained since BellRing Brands spun out of Post Holdings with an IPO in 2019 to better focus on the convenient nutrition category, the RTD protein shake category has doubled in size and shows significant additional room for growth as more consumers turn to GLP-1 medications for weight management and seek healthier, functional and nutrient-dense foods and beverages.
Helping to lead the way is BellRing Brands’s largest brand – Premier Protein, which Davenport said is the “No. 1 brand in the category and No. 1 in household penetration, No. 1 for repeat and No. 1 for loyalty” both in the convenient nutrition category and RTD.
Fueled in part by first-mover advantage, the brand’s pole-position in the category has helped BellRing Brands deliver strong financial performance – growing topline 18% and bottom line 16% since its IPO in 2019. In addition, Davenport touted that its asset-light model means it has plenty of cash to reinvest in the business.
In addition to growing quickly, the category has plenty of runway, according to Davenport. She notes that the overall category has only about 50% household penetration on the RTD side of the business and Premier Protein has only about 20% household penetration.
The category’s success and long-term potential are attracting “a lot of insurgent brands” that have significant appeal to retailers and consumers who enjoy “treasure-hunting” for new products, acknowledges Davenport.
While she predicts many new players “won’t make it,” she also acknowledges that Premier Protein has “lost a little market share in club. However, she was quick to add that the brand has “gained everywhere else, and we expect that to continue.”
Invest where the category will be – not just where it is
Those gains are intentional and come from hard work – not coasting, according to Davenport, who outlined how the business is boosting penetration by expanding usage occasion and shelf space simultaneously.
Through a partnership with a mass retailer, Premier Protein plans to break free from the pharmacy section where it is often stocked. Through a three-month pilot, the partnership will include pallet drops outside of pharmacy, endcaps in the grocery section and tests with single-serve bottles in coolers, which Davenport notes will “be great for immediate consumption.”
The brand also is expanding into coffee houses, and sees potential in convenience stores – both of which Davenport said represent “incremental” opportunities.
This shift will boost the brand’s visibility to consumers who may not shop the pharmacy section of grocery stores, but who are seeking more protein, either because they are on GLP-1s, they want to support their fitness or active lifestyle, they need an on-the-go option or are looking for a meal replacement – all logical, but under represented uses for the Premier Protein drinks.
Winning with capabilities
An often overlooked first-mover advantage is more robust infrastructure, including supply chains, packaging, freight and ingredient optimization – all of which BellRing Brands is leveraging to lower costs and scale production to meet demand.
For example, even though the company’s cash flow benefits from being an asset-light business, BellRing Brands embraced cost savings in fiscal 2025, including within its freight network and trade spend efficiencies.
It also redesigned the packaging for Premier Protein late last year, which helped lower costs and boost consumer engagement. It also rationalized some ingredients and optimized suppliers to lower costs.
Category leaders must be thought leaders
As a category pioneer, BellRing Brands was able to tap its existing fanbase through a “demandscape” survey of more than 6,000 consumers to create a “fantastic map of where the category is going” and identify potential new consumer segments, said Davenport.
The study revealed a need to educate consumers about how much protein they need, what type of protein they should consume for their goals and the optimal time to have it.
“As the leader in the category, I think it really gives us an opportunity and responsibility to do more education, and so we’ve factored that into our marketing program,” she said.
The company also plans to educate its retail partners about how best to position its products to meet evolving consumer needs, she added.
Lessons for first-movers
As illustrated by Premier Protein’s experience, being first to market gives a brand a head start, but staying first requires intentional investments to scale production, expand use cases, build long-term retailer relationships and foster consumer love – not just recognition, said Davenport.
Blazing a trail also creates an easier path for fast-following competitors, which means category pioneers need to move faster than the category they created in order to stay ahead.
