Publish date:

Hormel sells company behind Muscle Milk to PepsiCo for $465M

The Minnesota company is ending its foray into the protein powder and drinks market.
Author:

Minnesota's Hormel Foods is selling the company that makes Muscle Milk protein powders and shakes to PepsiCo in a deal with $465 million.

The deal was announced on Wednesday, with Austin-based Hormel confirming it's selling its CytoSport business to Pepsi in a deal expected to be completed in the next two months.

"PepsiCo has deep expertise and experience in the sports nutrition category and has been a long-standing distribution partner for CytoSport and the Muscle Milk brand, which puts them in a strong position to grow this dynamic business," said Jim Snee, CEO and president of Hormel Foods.

"We look forward to working with PepsiCo to ensure a smooth transition for our team members, suppliers, customers and consumers."

Hormel bought the California-based CytoSport in 2014 for $450 million as it sought to branch out into protein products that didn't involve meat.

Follow Bring Me The News on LinkedIn

But, as the Star Tribune notes, it had struggled to make a success of the brand, noting disappointing performances in its CytoSport arm throughout last year.

The brand generated $300 million last year, but its operating margin was lower than the overall company's margins, Hormel announced on Thursday.

"We made strong progress with innovation and sales growth in the food, drug and mass channel," Snee said. "However, it became clear to us over time that PepsiCo is the right long-term owner of this business as they have deep expertise in this space."

Next Up

Kirk Cousins

Kirk Cousins makes big donation to Vikings' social justice committee

The committee works on issues such as criminal justice reform, education and voter registration.

Meghan Roth Go Fund Me

Accomplished MN runner goes into cardiac arrest during Boston Marathon

Other racers jumped in to give the 34-year-old mother CPR, saving her life.

Flickr - Winston Smith memorial uptown June 4 - Chad Davis

Review reveals body cam video from aftermath of Winston Smith shooting

While no video of the shooting exists, an officer captured some video immediately afterward.

classroom mask

Parents object to Minneapolis Schools' 14-day COVID exposure quarantines

Other Twin Cities school districts do not have quarantine protocols quite as strict as in Minneapolis.

Pixabay - police lights, tape

Good Samaritan has car stolen while tending to man stabbed in neck

The thief then ran into the good Samaritan while driving off.

Screen Shot 2021-10-13 at 3.17.46 PM

Minnesota family learns their baby has extremely rare, fatal disease

The baby's mother is hoping to provide her son with the best life possible.

unsplash - water close-up

Sheriff: Human jaw bone found near Staples is 'ancient,' not recent

It was one of four bones found by a group of people over the summer.

Fargo sex offender grinder - north dakota site

Police: Armed sex offender wanders into 2 Fargo homes

Nobody was injured and the man was eventually located via a GPS ankle monitor.

Xcel Energy Center

Wild season opener Friday night isn't on regular TV

Friday's game is one of five games that will be streamed this season.

polar bear como zoo

Young polar bear joining the celebration at Como Zoo

The bear is part of a new Burr on Fur program that will help wild polar bears.

Gaffigan-foxworthy-side-by-side

Jim Gaffigan, Jeff Foxworthy recording MN shows for Netflix

The streaming giant will film their upcoming performances for future stand-up specials.

Giant Beaver fossil

Minnesotans vote for giant beaver to become official state fossil

The Science Museum held a vote, which the extinct, 200-pound beaver won.

Related

Screen Shot 2020-04-23 at 1.41.12 PM

Hormel Foods announces more bonuses for its plant workers

The Austin-based food giant already paid out bonuses in April.

peanut-624601_1280

Minnesota's Hormel Foods buys Planters from Kraft Heinz in $3.35B deal

The Austin-based company adds another brand to its collection.

Hormel is spending $850 million to buy Columbus Craft Meats

The Spam-maker is dropping $850 million to scoop up Columbus Craft Meats.

1024px-Regis_Salon_Briarwood

Edina's Regis to sell remaining 3,108 company-owned hair salons

The haircare company will go to a fully franchised portfolio.

SICK plans Bloomington

'Mystery company' behind tech hub near MOA is revealed as SICK

The German company wants to expand its presence in Bloomington.

gun-1761235_1280

Anoka company sells its firearms brands for $170 million

Vista Outdoors says it's part of its strategy to cut costs and reduce debt.