the Joshua Schall Audio Experience

• Rise of Piping Rock: How One Family is Reclaiming the Dietary Supplement Industry

  Back in April 2023, you might remember that I uploaded a piece of content titled something like “The Clorox Company should divest its dietary supplement brand portfolio.” It aimed to increase recognition that a collection of supplement brands was buried within The Clorox Company, to clarify the holistic strategic reasoning behind why Clorox spent nearly $1 billion acquiring these dietary supplement brands last decade, and to describe (maybe not so surprisingly) how these dietary supplement brands mostly struggled under Clorox's ownership. And despite all that previous silly M&A justification rhetoric around how The Clorox Company had been a “health and wellness company” for over 100 years, the primary driver behind divestment was an integrated strategic plan that sought to achieve profitable growth acceleration through sharpening its focus on core household care brands. So, in the end…Clorox determined that the dietary supplement business was not aligned with its long-term vision. Accordingly, it took about 18 months after my original content, but that “pure rumor and speculation” turned into The Clorox Company selling its dietary supplements business (in its entirety) including the Natural Vitality, NeoCell, Rainbow Light, and RenewLife brands, relevant intellectual property, and the company's manufacturing and distribution facilities, to Piping Rock Health Products. But let me introduce you to the pure-play business that acquired these assets from The Clorox Company…because (I’d guess) despite its heritage rooted in over a half-century of experience in the supplement industry, many don’t recognize the name Piping Rock Health Products. In 1971, the family’s journey began with Arthur Rudolph, a pioneering figure in manufacturing vitamins. Following in his father’s footsteps, Scott teamed up with him to form Nature's Bounty…which eventually became the world’s largest vitamin manufacturer (marked by private equity firm The Carlyle Group acquiring the company for approximately $4 billion in 2010). A year later, joined by Scott’s son Michael, the Rudolph family took that achievement to the next level by forming Piping Rock Health Products…a vertically integrated multi-format dietary supplement brand manufacturer, distributor, marketer, and retailer. Before acquiring RenewLife, Natural Vitality, NeoCell, and Rainbow Light from The Clorox Company, it internally developed Nature’s Truth…a flagship brand modeled after Nature’s Bounty that now generates around $300 million annually. Also, beyond offering a few other smaller brands…Piping Rock does a lot of private label contract manufacturing for leading retailers. So, irrespective of knowing every Clorox M&A financial detail…the acquisition still signals an upsized level of ambition for Piping Rock, right? But this story doesn’t stop there…as Piping Rock continues to expand its presence in dietary supplements by “remixing” last year’s M&A activity with The Clorox Company. Similarly, targeting a multibillion-dollar CPG conglomerate (with an identity crisis), it was recently announced that Church & Dwight (after concluding its strategic review) signed a definitive agreement to sell the VitaFusion and L’il Critters dietary supplement brands to Piping Rock. In closing, I’d expect Piping Rock to continue taking advantage of a growing trend of Big CPG divesting their dietary supplement brands, as this market momentum creates new opportunities for pure-play businesses to scale through buying established, reputable brands.

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• [MONDAY MINUTE] How Protein is Reshaping the Classic Peanut Butter & Jelly Sandwich

  While beloved by children…did you know that the entire National Football League combined is estimated to consume about 100K Smucker’s Uncrustables annually? If you aren’t familiar with Uncrustables, it’s essentially a frozen peanut butter and jelly sandwich, minus the crust…and intended to be eaten after they have thawed. The J.M. Smucker Company launched Uncrustables in 1998, and annual net sales of the frozen sandwiches grew 15 percent YoY in fiscal year 2025…with the goal of reaching $1 billion in annual net sales by the end of fiscal year 2026. And largely due to those financial metrics, competition within the frozen sandwich category has increased substantially…as both branded and private label players battle for limited shelf space in the merchandising set. But newcomer Jams is packing the frozen peanut butter and jelly sandwich with more protein, along with deploying a growing roster of influencers and athletes as equity partners…including NFL stars Micah Parsons and CJ Stroud. And that sounds all good…but let’s just hope Jams learned the valuable lesson from Chubby Snacks to “not attack or mock Uncrustables” or the king of the category will gladly put you out business one way or another!

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• Why Costco & Sam's Club Private Labels Are Dominating the Protein Market

  What’s developing isn’t a “high-protein convenient nutrition” categorical battle between wholesale club private label and branded products…but an evolving model of coexistence! The two largest warehouse clubs in the United States each offer shoppers unique features and their own style of bulk discounting…but more recently, the biggest commonality is the effort by Costco and Sam’s Club to expand private label product assortments. In a retail landscape shaped by economic headwinds, generational turnover, and changing definitions of value, private label has become a powerhouse…not only as budget-friendly alternatives but a strategic lever for growth, shopper loyalty, and brand identity. Similarly, in an inflation-conscious landscape, shoppers are choosing private label not just because it’s cheaper…but increasingly because it also meets their evolving expectations for quality, innovation, and experience. But with private label shifting from “stigma” into a reflection of consumer values, thus moving beyond simply being placeholders for branded products…Costco and Sam’s Club are leaning into this momentum by positioning expansive store-brand expansion as a destination. But if you aren’t a Costco member, you might’ve missed that Kirkland Signature launched a whey protein powder last summer. And if you aren’t a Sam’s Club member, you likely overlooked that Member’s Mark launched an ultra-filtered milk protein shake last month. Though, recognizing that both wholesale clubs had launched high-protein bars several years earlier…you might be questioning the significance of these other convenient nutrition private label products, right? For years, Quest Nutrition defined the “high-protein bar” category…essentially building the modern protein bar. Then, both Kirkland Signature and Member’s Mark entered the space…matching Quest Nutrition on just about every product variable. The biggest difference…price! But it was a clear signal that the high-protein bar category had officially gone mainstream. Similarly, Optimum Nutrition and Fairlife are defining the “protein powder” and “protein shake” categories respectively…essentially building those modern convenient nutrition subcategories. But now, wholesale club retailers have entered the space…matching Optimum Nutrition and Fairlife on just about every product variable. Again, the biggest difference…price! But it’s another clear signal that these high-protein convenient nutrition subcategories have officially gone mainstream. But for branded CPG products…private label activity from Costco and/or Sam’s Club can feel like an attack. However, those leading wholesale club retailers are simply upholding a promise to their members. Unfortunately, whether it’s macro-related or more categorically specific factors (like persistent dairy proteins input cost inflation), consumers have increasingly searched for better value without sacrificing quality…and wholesale club private label brands will steadily take fuller advantage of this market opportunity. Finally, despite this rise in categorical private label activity…I’ll end my latest first principles content piece by highlighting how branded products can continue holding a powerful place in consumers’ hearts (and shopping carts).

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• GLP-1 Market Future: Why "Quality" (and Muscle Health) Matters!

  Are we approaching a paradigm shift…where the conversation elevates from “quantity” to “quality” of weight loss? And if true…what could that mean for “muscle health” CPG products, which have benefitted greatly from the current GLP-1 market dynamics? The first wave of GLP-1 receptor agonists, which I’m dubbing the “quantity” paradigm, has been nothing short of revolutionary…with Wegovy Ozempic and Zepbound Mounjaro demonstrating significant weight loss, often exceeding reported data from Novo Nordisk and Eli Lilly clinical trials respectively. This unprecedented efficacy fueled a massive surge in demand and Morgan Stanley projects annual GLP-1 sales will soon become the biggest drug class in history. However, the initial conversation was dominated by how much weight could be (and how quickly it was) lost. Therefore, as these medications became more widely used…critical concern emerged surrounding how a significant portion of the lost weight was not just fat but also valuable lean body mass. But this concern has catalyzed the move toward a next wave in the GLP-1 market, which I’m dubbing the “quality” paradigm…where the focus is on what kind of weight is being lost. Recognizing that health is about more than just a number on a scale, the shifted goal would now be (still) maximizing fat mass reduction but while simultaneously preserving, or even enhancing, lean mass. Also, the “quality” paradigm emphasizes an integrated approach to weight management…as patients seek outcomes that support an active, healthy lifestyle. Accordingly, many CPG companies (explicitly those positioned across the intersecting categories of food, beverage, and dietary supplements) have progressively adapted to support the specific nutritional needs of individuals prescribed GLP-1 medications. In fact, my introductory statement referred to how these GLP-1 market dynamics have been beneficial to certain CPG products (particularly ones aiding in “muscle health”). Also, just to clarify my definition of “muscle health” CPG products that are benefitting greatly from current GLP-1 market dynamics…I’m mainly talking about protein (the tried-and-true nutritional cornerstone of building muscle), but also creatine (a natural fuel source for muscles) and HMB (that helps protect muscle mass). Though, if we want to fully understand any potential “muscle health” CPG categorical impacts stemming from next-gen pharmaceutical innovation aimed at improving long-term metabolic health and functional outcomes. According to analysts at TD Cowen, combination treatments designed to help individuals preserve muscle while losing weight with popular GLP-1 drugs by Novo Nordisk and Eli Lilly could generate more than $30 billion in sales by 2035. And maybe the most closely watched mid-stage drug trials have revolved around bimagrumab, which is a muscle-preserving drug that was part of an almost $2 billion Eli Lilly acquisition from mid-2023. Regardless of possible regulatory challenges still remaining, my strong conviction centers around eating less (with the help of current GLP-1 medications) can only do so much to better your health…thus “weight loss while maintaining muscle mass” is far too important for long-term health outcomes. Accordingly, these will become the next holy grail of obesity treatment (as we move closer to the 2030s). And if that prediction is directionally correct (which I believe is highly probable), it means eating/drinking culture will be reshaped further, accelerating a pivot toward nutrient density and functional benefits!

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• [MONDAY MINUTE] The Explosive (and Controversial) Role of DSD Distribution in the Rise of Functional Beverages

  Amidst booming demand for functional beverages…niche ingredients have found a catalyst to mainstream awareness and mass acceptance. Though, there’s a big difference when comparing (say) lion’s mane mushrooms, which meets the FDA definition of a dietary supplement…and kratom, even if plant-derived sources of the niche ingredient could align with natural wellness trends. And I get it…there’s obviously growing market demand for kratom, that (depending on dosage) supposedly delivers a boost of euphoric energy or sedative relaxation. But poor regulatory enforcement doesn’t somehow make it allowable by default. And maybe this is a spicy take, especially coming from someone (personally) holding strong libertarian views when it comes to adults consuming whatever they want, but I believe professionally that beer-affiliated DSD distributors selling high-margin products with kratom (or even hemp-derived THC beverages in certain states) are no different than all these independent specialty supplement retailers selling unauthorized peptides or prohormones.

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