How PepsiCo is riding the Ozempic wave with protein drinks

Americans have developed a near-insatiable craving for protein. That’s led large food manufacturers like PepsiCo to come up with new formulas that prominently feature the popular macronutrient. 

On Thursday, PepsiCo became the latest to make a more aggressive protein pitch to consumers. The soda and snacking giant unveiled a Starbucks coffee protein drink, a reformulated line of Muscle Milk protein shakes, and new Propel flavored waters that combines whey protein, fiber, and electrolytes to better align the beverage giant’s portfolio with the trend.

Citing data from the food industry-funded International Food Information Council (IFIC), PepsiCo says 71% of Americans have tried to boost their protein intake in 2024. That’s an increase from 67% in 2023 and 59% in 2022. “After decades of consumers reducing fat and watching carbs, the pendulum has swung toward protein,” says Jaime Schwartz Cohen, a registered dietitian and EVP of nutrition at PR agency Ketchum. 

Over the past few years, food manufacturers have responded by packing aisles with more protein-enriched foods and beverages, including new protein Cheerios and Wheaties cereals from General Mills, the expansion of a protein pasta line sold by The Barilla Group, and even a protein popcorn food startup that was created by reality TV star Khloé Kardashian.

“We want to redefine the protein conversation,” says Ram Krishnan, CEO of PepsiCo’s U.S. beverages business, in an interview with Fast Company. “Everybody in the country is talking about protein, but it’s actually crowded and confusing and the consumers really don’t understand all of the science behind protein.”

Krishnan says protein is especially important for aging populations in the U.S. and other western markets. The body turns protein into amino acids, which goes through the human bloodstream to build and maintain muscle. Protein can also promote weight loss by increasing satiety and has a positive impact on immunity and inflammation.

The recommended daily protein intake varies by age and other factors, but adults are generally advised to consume around 60 grams of protein each day. Schwartz Cohen says this is an area of confusion for consumers, as most look for around 15 to 30 grams per serving on nutritional labels, but eight in ten Americans aren’t sure what their daily protein needs are. “That’s where clear, evidence-based guidance from brands and registered dietitians is critical,” she adds.

Tara Glasgow, PepsiCo’s global chief science officer, says that studies show that it’s equally important that Americans consume protein consistently throughout the day. Glasgow says scientific research has found that the consumption of 30 grams of protein for three different meals spaced out throughout the day had a 25% bigger impact on muscle building than if 90 grams were just consumed at dinner.

“It shows you the lift that you get from taking that approach, whether you’re getting it from a beverage throughout the day, or you’re getting it from a snack here or there,” says Glasgow. 

PepsiCo, which sells Mountain Dew soda and Aquafina water, would stand to benefit from selling more protein beverages that can be consumed steadily throughout the day. The new ready-to-drink Starbucks coffee, with 22 grams of protein per bottle, took inspiration from social media influencers on TikTok and Instagram that have been adding powdered protein to their morning coffee. 

Propel Clear Protein, meanwhile, has 20 grams of whey protein per serving and was developed as a more refreshing beverage that could be consumed at any part of the day with flavors like watermelon mint and peach ginger. PepsiCo’s inspiration for this line came from the soaring popularity of weight-loss drugs like Ozempic and Wegovy.

Riding the GLP-1 wave

Glasgow says consumers that are on these GLP-1 medications need to be more conscious about adding protein to their diet, given that a rapid drop in weight results in more massive muscle loss too. One side effect of those medications are digestive issues, so fiber can also be helpful. And lastly, reducing calories can result in dehydration, given that around 20% of hydration comes from the food consumers eat.

“It’s not just designed for GLP-1,” says Glasgow, regarding the development of Propel Clear Protein. “But it was those needs that we looked at that really helped us get the right combination of benefits together.”

Muscle Milk, a brand that’s worth about $500 million at the retail shelf, perhaps has undergone the greatest transformation. Krishnan says there’s a group of “dissatisfied protein drinkers” in the shakes category that consume these beverages because they want the protein boost, but don’t always love the taste or ingredients.

The new formulations now have ultra-filtered milk, a smoother taste profile and less powdery and medicinal in flavor than the historical version of Muscle Milk. Protein levels range from 26 grams to 42 grams per bottle. PepsiCo also removed all artificial flavors, sweeteners, and added colors from the Muscle Milk line, reflecting the broader push at the company to remove artificial dyes that Americans have said they no longer want in the food and drinks they consume.

PepsiCo’s protein drinks can also help the beverage giant get more aligned with Americans who have spent decades lowering their consumption of sodas. PepsiCo has faced its own unique challenges as the classic cola brand slipped behind Dr Pepper in U.S. market share, then fell to fourth overall after Sprite usurped it as the third-largest carbonated soft drink by volume, according to data from Beverage Digest. Classic Coke has dominated the list for many, many years.

Weaker carbonated soft drink volume has led to a soft performance for PepsiCo Beverages North America business for more than two years, a key part of the business that Krishnan was tapped to turnaround in early 2024. Since then, the soda giant has sought to move the portfolio toward healthier drinks. That has included the $1.65 billion acquisition of the Poppi prebiotic soda and innovations of core brands, like the debut of a prebiotic cola that was launched months after the Poppi deal.

“We believe beverages are becoming more functional,” says Krishnan. “Protein is just one portion of the equation. It’s not the only thing we’re doing.”

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