History of Muscle Milk

THE UNKNOWN HISTORY OF MUSCLE MILK

© History Oasis

As the dot-com bubble burst and global fears rose after the September 11 terrorist attacks, Greg Pickett and his son Mike navigated the uncertainty to quietly found a small-town startup in 1998 that evolved into the phenomenon known as the history of Muscle Milk.

Rapidly transforming the burgeoning sports nutrition industry with their innovative protein formulations amidst the dramatic technological and geopolitical disruptions ushering in the 21st century.

ORIGINS OF MUSCLE MILK

portrait of Muscle Milk founder, greg pickett
© History Oasis

The year was 1998 when the entrepreneurial Pickett family set forth to establish their sports nutrition empire in Benicia, California.

Patriarch Greg Pickett partnered with his enterprising son Mike to form the nascent company that would come to be known as CytoSport.

Commencing operations modestly, the Pickett outfit initially engaged in the production of supplemental powders and pre-blended beverages for later consumption.

Over time, their signature Muscle Milk formulations would propel the firm to great success, though not without weathering substantial growing pains amid heavy metal contaminations and contentious legal battles.

Nevertheless, the family stood resilient at the helm while CytoSport blossomed into a top provider of protein supplements for athletes and fitness enthusiasts nationwide.

BY 2008, THE COMPANY WAS EARNING $200 MILLION IN REVENUE

muscle milk vingage ad
Source: CytoSport

Continuing their meteoric rise, by 2008 CytoSport reached the enviable benchmark of $200 million in annual revenue, a testament to the Muscle Milk brand's mushrooming popularity amongst workout warriors.

That same year, the burgeoning company added another accolade to its trove when Beverage World magazine and Beverage Marketing Corporation jointly named the firm Small Company of the Year, highlighting its ascent from a humble home blender operation into a leading sports nutrition supplier revolutionizing the category.

The Pickett men had surely actualized their vision over the preceding decade, establishing a family empire on the shoulders of their signature protein shake and the growing market thirst for supplemental support to unlock peak athletic performance.

With yearly sales skyrocketing and industry praise accumulating, the future looked most promising for this company built on sweat and shake.

IN 2009, THE NAD REFERRED SOME OF CYTOSPORT'S ADVERTISING CLAIMS TO THE FDA

toxic muscle milk
© History Oasis

As scrutiny descended upon CytoSport's manufacturing practices in light of the toxicity revelations, soon the supplement peddler faced condemnation over its advertising tactics as well.

In 2009, the respected National Advertising Division forwarded complaints about some Muscle Milk promotional claims to the FTC and FDA for review of possible illegal misinformation used to stimulate sales.

While CytoSport insisted its marketing was truthful and its signature product's name legally protected, the allegations of misleading hyperbole threatened to undermine consumer trust already eroded by the product contamination flap.

For athletes relying on Muscle Milk's protein promises to meet performance needs, the suggestion that the company might be overstating nutritional qualities in a quest for profits surely came as disillusioning news.

Still navigating fallout from one public relations crisis involving tainted metals, by exaggerating benefits CytoSport may have stoked another blot on its integrity portfolio.

ALSO IN 2009, MUSCLE MILK FILED A SUCCESSFUL LAWSUIT AGAINST COMPETITOR VITAL PHARMACEUTICALS

© History Oasis

As if battling customer disenchantment amid contamination headlines, in 2009 the opportunistic imitators at Vital Pharmaceuticals provoked CytoSport's legal wrath when its rival "Muscle Power" protein shake leveraged suspiciously similar packaging to the trailblazing Muscle Milk's branding.

In federal court, CytoSport argued this shameless scheme to mimic their market-leading commercial aesthetics, from font to color to layout, willfully confused consumers and unethically piggybacked on Muscle Milk's hard-earned authority.

The judge concurred, forcing Vital to hastily yank their product, deeming the wrapper knockoff outright infringement on intellectual property.

For CytoSport, the ruling reinforced Muscle Milk's industry pioneer status and exclusive ownership over its signature look.

Still, between supply impurities and advertising complaints, the company understood all too well itself how fragile loyal followings could be.

IN 2010, A CONSUMER REPORTS FOUND HIGH LEVELS OF HEAVY METALS IN SOME MUSCLE MILK PRODUCTS

mercury in Muscle Milk
© History Oasis

Despite prosperity in the marketplace, turbulence haunted CytoSport in its Muscle Milk formulations—a disruption self-inflicted by the mercurial chemistry of nutrition. A 2010 Consumer Reports exposé detected heavy metals like cadmium, lead, mercury lurking in the supposedly beneficial protein shakes.

Products the company engineered for physical enhancement had become contaminated by elements imperiling health, likely from dubious ingredient suppliers abroad insensitive to the fallout.

As Muscle Milk had built believer constituencies through its effectiveness, now its faithful constituents felt betrayed, while rival brands and regulatory overseers voiced concern over CytoSport's safety standards amidst the internal toxic leakage.

Straining to contain the damage, the besieged company refuted the reports and reassured consumers, though likely at cost to its sterling reputation.

For the fledgling sports supplement field seeking legitimacy, Muscle Milk's chemical infractions may have dealt a regrettable setback.

IN 2014, HORMEL ANNOUNCED IT WAS ACQUIRING CYTOSPORT

vintage ad by Hormel
Source: Hormel

As CytoSport reached new highs in the 2010s, larger corporations took notice of the attractive acquisition target Muscle Milk's parent had become.

In 2014, after years of ballooning revenue and prestige capped by the Small Company recognition, the Pickett family agreed to sell their highly touted nutritional supplement business to longtime food industry stalwart Hormel in a blockbuster $450 million deal.

With the maker of Spam and Dinty Moore now at the helm, CytoSport appeared positioned to unleash their supplement supremacy on an even greater scale backed by the global meat company’s established distribution network.

The Picketts cashed in mightily on their company’s ascent, which all began with humble powder blends in small-town California some 16 years earlier. Under new ownership and flush with resources, Muscle Milk was primed to bulk up to even loftier heights.

JUST FIVE YEARS LATER PEPSICO ACQUIRED CYTOSPORT FOR $465 MILLION

Vintage pepsi ad
Source: PepsiCo

However, Hormel's stewardship of CytoSport proved short-lived, as merely 5 years later, in 2019, the food conglomerate sold the supplement business including its prized Muscle Milk line to snack and beverage juggernaut PepsiCo for $465 million.

While under Hormel's ownership, CytoSport likely tapped into wider networks for distribution, the potential for global expansion in the sports nutrition realm may have paled for a meat-centric company compared to what PepsiCo envisioned.

For the new buyer, Muscle Milk presented a foray into the rapidly growing protein supplement space to evolve its portfolio beyond sugary sodas.

For CytoSport, the second sale in 5 years landed its founders over $900 million combined, capping a 21-year commercial odyssey originating from humble origins in a California garage.

Once a fledgling upstart, through vision and protein innovation Muscle Milk had now become a coveted asset amongst household corporate names.

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