As it prepares to enter the energy drink category with two new performance brands, sports nutrition company MusclePharm Corporation has brought on former Rockstar Energy EVP of sales and distribution Joey Cannata as a partner to build out its national distribution network.
Founded in 2010, MusclePharm is a publicly-traded company which makes protein and pre- and post-workout powders under the MusclePharm and FitMiss brands. According to chairman and CEO Ryan Drexler, the company has previously launched RTD energy drinks under past leadership, but after assuming the chief executive role in 2016 Drexler chose to discontinue the products and has instead spent the past several years restructuring the business.
Now as brands like Bang, C4 and CELSIUS have ignited a subcategory for fitness and performance energy — the former two also being sports nutrition supplement makers that extended into ready-to-drink — MusclePharm is looking to re-enter the RTD market.
The company will launch MP Performance Energy this summer with three SKUs: Combat (Grapefruit Lime), Shred (Green Apple) and Wreckage (Fruit Punch). In Q4, the company will follow the MusclePharm products with a line of female-focused energy drinks under the FitMiss brand. Cannata will oversee the rollout and is currently working to sign with distributors in target markets and establish early retail partnerships.
“Talking to Joey and seeing his experience and where he’s been, it’s kind of the perfect marriage,” Drexler said, noting that pre-existing brand awareness will help the company in its RTD launch. “Everyone knows the product, so we’re not starting from scratch, right? MusclePharm has got a great base.”
MusclePharm is currently available in 130 countries and in the U.S. is in supplement and fitness stores. The company’s powders are also sold chainwide in Costco and online through Amazon and direct-to-consumer, Drexler said.
Cannata left Rockstar in 2017 and in 2019 joined CBD sparkling water brand Daytrip as its president and COO. Cannata, who is serving in a contracted role at MusclePharm, called his work with the fitness brand a “parallel effort” that will help open doors for both companies, as he intends to work with distributors and retailers to simultaneously grow Daytrip’s business alongside MusclePharm.
Although Cannata last month dropped his COO duties at Daytrip, he remains the company’s president and said “absolutely nothing changes in regards to my involvement” in the brand. Operations duties, he said, are currently being handled by Daytrip CEO Shawn Biega and CFO Jeff Kehr, but as the company grows it will aim to bring on a full time COO in the near future.
“Daytrip continues to see growth as more and more states continue to pass legislation allowing hemp-based food and beverage products to be sold within their respective geographies with California being the next big chip to fall,” Cannata said. “The Daytrip management team continues to be expanded to support the growing business and the MusclePharm team is being built out now which will consist of industry veterans who are experts in the energy space.”
Cannata said that he was attracted to MusclePharm both for its pre-existing market presence as well as its status as a publicly traded company. He noted a relative lack of public energy drink brands in the U.S., with Monster and CELSIUS being the two big exceptions outside of the PepsiCo portfolio, and believes there is an opportunity to increase shareholder value and attract new investors.
The company will aim to not spread itself too thin, Cannata said, and is taking a strategic approach to the launch that will target select markets. Drexler and Cannata also hope the FitMiss brand will help draw in more female consumers to the category, noting that the bulk of energy drink marketing is still tailored to men.
“My ultimate goal here is to bring on a very strong, national partner who needs a product like this,” Cannata said. “Coke obviously has Monster. Pepsi has Rockstar, Bang and their own MTN Dew entries. I still think there’s a couple national distributors that need a strong option, and I know MusclePharm is going to be an option. So it’s all about getting the right distributor on board, the right partner who believes in the brand.”