Muscle Pharm Corporation (MSLPQ)

[TheExpertHimself]

Im not so sure that you will see Amino 1 in all 7-eleven anytime soon. The Amino 1 RTD product is a Gatorade look-a-like sports drink, with some different ingredients....Such a product would probably do better in Costco to begin with.

Muscle Milk is everywhere because Cytosport signed a distribution agreement with Pepsico....something that gives you reach but ain't that profitable.

Musclepharm spends a lot of money on being cool....but it cannot compete for any significant share of the RTD sports beverage market and be profitable. Musclepharm will most likely aim for a few percentage share of that market and be happy with that.

Companies like Treehouse Foods, Ralcorp....all they do is to imitate, come up with look-a-like products that are slightly cheaper but very good quality....the kind of products you find in Costco.

Having a brand and a packaging that is a little cool like Musclepharm doesn't hurt....but all Musclepharm will do is to provide an alternative to the really cool brand GATORADE. Musclepharm is not GATORADE, and not even close to become POWERADE....these brands are worth billions.

Some of the products that are better suited for gas stations, 7-Elevens are the protein powders and protein bars....a crowded market, but Musclepharm could make some good market there.

The Coco Protein RTD could become a killer product as it is more original than the Amino1....I just have the feeling that Musclepharm will begin with Costco as a distributor.


Really, Musclepharm is growing fast, but not faster than necessary. Musclepharm may reach the $500 million and beyind annual sales goal within long, but it wont get there unprofitable.

The marketing to become a Cool brand is costly....it is worth it, but you cannot sign Walmart and Pepsico to begin with.

Cytosport did that, and the son of the founder....had to sell after 4 years as CEO....Cytosport sold a lot, but it was struggling to become profitable....Musclepharm won't make that mistake.