Muscle Pharm Corporation (MSLPQ)

[TheExpertHimself]

Most likely, it will be the online and brick and mortar specialty retailers and the mass retailers with no slotting fees where Musclepharm will go initially with it's RTD and protein bars...unless the specialty retailers have a problem with selling the same products as the mass retailers.

It's a balancing act for all, because the specialty retailers benefit from brands that are well known by customers, but on the other hand cannot tolerate competition that kills their own sales.

As RTD aren't really the most important categories to the specialty retailers, I think they have less of a problem with these products being carried by the mass retailers.

When it comes to protein bars, it might be that Musclepharm will have to follow the competitors to the convenience stores and pay whatever slotting fees they demand. I'm not so sure it is so much for protein bars and energy shots, considering the rapid growth of the companies focused on these products. For energy drinks that may be some slotting fees to pay, but the question is whether it's so much of the interest of the convenience stores....as having the most popular brands positioned on the right place on the shelf gotta be more important that receiving some money to carry certain brands, and position them well. At the end of the day, the popular beverages are the ones that draw business.....so, if you are a new brand....you may have to start with a subpar shelf position and work your way up to a better one.