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Chicago-based RXBar sells to Kellogg for $600M

66 pointsby fern12over 7 years ago

15 comments

huacover 7 years ago
I tried a bunch of these because a. the packaging is great, and b. my office stocks them. I desperately wanted to like them, but they're really not that good. The ingredients are good but the macros are nothing special, and they are just so hard to eat. The consistency is terrible and it feels like the only health benefit you get is the workout you're giving your jaw, whilst trying to swallow it down.
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teejover 7 years ago
6x revenue seems like a really high valuation, right? There&#x27;s a physical product distributed via retail, we aren&#x27;t talking tech margins. What&#x27;s the value to Kellogg&#x27;s?<p>My only guess is that Nutra Grain bars are being destroyed by Kind and their contemporaries. They need to compete in the category because they get some sort of incremental value when they own a number of different grocery departments. And their internal product development team just isn&#x27;t very good.
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Dwolbover 7 years ago
Context in this quote:<p>&gt; Cereal sales have declined for years, and Kellogg&#x27;s snack-bar business also has performed badly—with its once-strong Special K brand losing its allure with consumers<p>Kellogg’s doesn’t know how to build a business anymore and needs to go out and buy fresh young businesses like RXBar.<p>This purchase doesn’t just give Kellogg’s a new product to sell, it’ll probably help teach an old dog new tricks.
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aakilfernandesover 7 years ago
I notice these bars every time I see them in the store. Its amazing how big a difference package design can make.
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JoshMnemover 7 years ago
The mind boggling thing about it is that people pay $2(?) for 10 small nuts and two dates. (Who really needs 3 egg whites at random times in the middle of the day?)<p>Buy nuts and dates in bulk for less than half the price, put a few of them in a small bag in your backpack at the beginning of each day, and the problem is solved.
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jonathanjaegerover 7 years ago
I&#x27;ve always looked for a moderately-priced meal replacement bar not filled with additives&#x2F;sugar&#x2F;etc. While I do drink Soylent, it&#x27;s not my favorite thing ever, so I&#x27;d rather have something solid too in my arsenal like an RXBar to supplement my regular meals. While the taste isn&#x27;t anything to write home about, what it really has going for it is that I don&#x27;t get sick of it like I do the fake tasting protein bars you get in the stores.<p>Favorites: chocolate sea salt, pumpkin spiced, blueberry.
avipover 7 years ago
&quot;We tell you what’s on the inside on the outside.&quot;<p>That&#x27;s a really nice slogan.
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jason_slackover 7 years ago
I eat 1-2 these bars every day after working out. I order 10 boxes at a time.<p>I really hope Kellogg doesn&#x27;t ruin the brand.<p>Yes, they have a weird texture but I actually like them and it beats some other sugar filled snack that is easily accessible anywhere I might be. I carry several of these with me.
fictionfutureover 7 years ago
Doesn’t look like they raised money either. Guessing the founder just made a clean $500m+ at 31 years old.
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ddoranover 7 years ago
I was drawn to the bar by the simplicity of the design. Seems I wasn&#x27;t the only one. RXBar&#x27;s packaging and design (by design firm Scott &amp; Victor) won a 2017 Inc Magazine Award [1]. As is often the case, the redesign changed the firm&#x27;s fortunes and was instrumental in getting the product into major retailers.<p>[1] <a href="https:&#x2F;&#x2F;www.inc.com&#x2F;magazine&#x2F;201706&#x2F;stephanie-schomer&#x2F;rxbar-protein-bar-design-awards-2017.html" rel="nofollow">https:&#x2F;&#x2F;www.inc.com&#x2F;magazine&#x2F;201706&#x2F;stephanie-schomer&#x2F;rxbar-...</a>
taudeover 7 years ago
I think RXBar benefited by being Whole30 compliant, which is a pretty common diet a lot of people are on the bandwagon on these days....
freedombenover 7 years ago
Available on Amazon (search for rxbar). Had not heard of these but definitely going to try them. That ingredients list is amazing.
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joshmnover 7 years ago
Tucked me behind a paywall.<p>Mirror: <a href="http:&#x2F;&#x2F;www.chicagotribune.com&#x2F;business&#x2F;ct-biz-kellogg-buys-rxbar-20171006-story.html" rel="nofollow">http:&#x2F;&#x2F;www.chicagotribune.com&#x2F;business&#x2F;ct-biz-kellogg-buys-r...</a>
tdburnover 7 years ago
Had no idea they had grown so fast! I wonder if Quest nutrition will have a similar exit?
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combatentropyover 7 years ago
On the package are the words, &quot;No B.S.&quot; This makes me think of poop in it (despite the word No) and I don&#x27;t buy it.