Proteinmaxxing is puny remedy for consumer giants
PEP•Food companies are adding protein to products as they seek higher sales and pricing power, but the market remains below $60 billion and the trend may not revive the industry. Whey protein concentrate reached a record €26,000 a tonne in May.
1. Protein products proliferate
PepsiCo, Kraft Heinz and Nestle have introduced or promoted protein-enhanced products, including Doritos, macaroni and cheese, seasonings and beer. Kraft Heinz’s PowerMac contains 17 grams of protein per serving, while AB InBev’s Brazilian protein beer promises 10 grams per can.
2. Pricing and costs
Companies are betting that consumers will pay more for convenient protein products. In the United Kingdom, a 48-gram bag of protein-enhanced Doritos costs £2, almost twice the price of a regular packet; AB InBev’s protein beer is expected to sell for more than 10 Brazilian reais, twice the price of a regular bottle.
3. Industry hurdles remain
The protein market was worth less than $60 billion last year, and the article says it is too early to tell whether the trend is meaningfully boosting sales. Products may be easy for supermarkets to replicate with cheaper own-brand alternatives, while highly processed foods could deter shoppers. Whey protein concentrate reached a record €26,000 a tonne in May, and consumer goods stock valuations remain depressed.
