Friday, July 9, 2010

Whey Isolate Pricing Outlook

In the past 12 months whey protein isolate wholesale pricing has increased by over 100% and is expected to keep climbing through the end of this year.  The prices are being driven up by a couple of factors but mainly Coke and Pepsi.  Coke has developed a new product in China that uses whey concentrate and Pepsi has recently launched a new version of Gatorade called G3 that is a post recovery drink.  My sources tell me that Gatorade alone purchased over 500,000,000 lbs of whey protein; yes, that is 500 million pounds!  This has left the whey isolate market in complete devastation.  If smaller companies can get the product, they are paying outrageous prices.  The medium sized companies are probably being hurt the worst and many of them are going out of business.  At Muscle Feast, we were lucky and locked in pricing and product before prices climbed too high.  What happens next is still a mystery.  If the new G3 Gatorade product does well, pricing will stay high and availability will remain scarce.  If the G3 product does not do well, then prices will come back to normal levels after a period of time.
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