Food Entrepreneur - January 7, 2020 - 5

'My long-term goal is to
eventually start another
business. I need time, and I
like to help, so this is a good
thing in the interim.'
- Peter Rahal, co-founder of RXBAR

RXBAR

or refined sugars, tenets of the popular
paleo diet embraced by the CrossFit fitness
community. He and his friend Jared
Smith began blending fruits and nuts in
a red Kitchen Aid mixer. More than 100
attempts and iterations led to a recipe that
roughly translates to three egg whites,
six almonds, four cashews and two dates.
The pair peddled the homemade bars in
Tupperware containers at area CrossFit
gyms. Makeshift labels were designed
using Microsoft PowerPoint.
Mr. Rahal's father, a food industry
executive, advised the young founders
to forgo raising capital in favor of hitting
the streets and selling hundreds of bars.
Mr. Rahal and Mr. Smith each pitched in
$5,000 for start-up costs. Eventually the
business outgrew the family basement,
and production moved to a commercial
kitchen.
After two years selling mostly in
gyms and online, the brand unveiled new
packaging featuring a minimalist design
and a list of ingredients on the front panel
punctuated by a cheeky tagline - "no
B.S." The bold move paid off. The company
January 7, 2020

gained national retail distribution and
soon became the fastest growing nutrition
bar brand in the country.
By 2017, potential bidders emerged,
prompting the founders to evaluate the
company's future. It became clear the
next step for growth would involve a sale.
Following months of meetings and deliberation, that October it was announced
that Battle Creek, Mich.-based Kellogg Co.,
the maker of Froot Loops, Cheez-It and
Pop-Tarts, would be the buyer.
"This is a high-quality premium
brand in a unique positioning at the intersection of simple, natural ingredients and
high protein," said John A. Bryant, then
the executive chairman of Kellogg, shortly
after the acquisition closed. "It's growing
rapidly. Its sales will nearly quadruple in
2017, and somewhat rare in this space,
it is already very profitable. RXBAR will
operate independently, preserving what
makes it special, including its talented
people and entrepreneurial culture.
"Kellogg is here to help RXBAR in
its next leg of growth via our substantial
R.&D. resources and through our ability to

expand its distribution. This will serve as
a new additional platform for growth for
us. This is a special opportunity, and we're
excited about its growth prospects."
RXBAR surpassed $200 million in
sales in the first year of Kellogg's ownership and today serves as a platform for
additional products, including RX Nut
Butters, which contain a blend of egg
whites, almonds or peanuts and dates, and
RX A.M. Oats, featuring egg white protein,
almonds, dates and oats in single-serve
cups.
Mr. Rahal remained chief executive
officer of RXBAR for a little over a year
following the acquisition. Last spring,
he shifted into a founder's role, stepping
away from the day-to-day operations to
focus on innovation and strategy.
"The story of RXBAR is pretty
gritty," Mr. Rahal said. "From my parents'
basement, designing labels, working
with agencies, to scaling online, building
an e-commerce business, to growing
distribution traditionally to going to the
U.K., Canada, to selling to Kellogg and
then operating as a chief executive officer
Food Business News

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Food Entrepreneur - January 7, 2020

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