Geoff, you became the CEO of Simply Good Foods in 2023, following a tenure with the food company J.M. Smucker. With that industry overview, what makes Simply Good Foods exciting?
We are seeing a generational shift in what consumers are looking for. People are moving away from high-carb, high-sugar options and seeking out high-protein, low-sugar, low-carb alternatives. For example, up to 70% of consumers aim to increase protein intake and reduce sugar, making these the top two nutritional criteria today.
Foods and snacks with these superior macronutrients - once a niche market for athletes and fitness enthusiasts - are now something all consumers, especially younger generations, are seeking. Simply Good Foods is exciting because its brands and product portfolio are at the forefront of this new demand.
What approach is Simply Good Foods taking to mainstream high-protein, low-sugar, low-carb foods?
There are three key strategies. First, we are expanding the range of products that “flip the macros” in traditionally high carb and sugar categories. Traditionally, high-protein, low-sugar foods were limited to protein shakes and bland bars. Now, we are offering a variety, like Quest chips, muffins, brownies, and cheese crackers, which are not only healthier but taste great. For instance, our Quest chips have a similar flavor profile to the leading, legacy high carb salty snack brands. However, depending on the pack type, a single serve bag of Quest chips can deliver 16–20 grams of protein, have minimal carbs and virtually no sugar.
Second, we are increasing brand awareness. Even with Quest being a $1 billion-dollar retail sales brand, awareness is still low. Our new advertising campaign entitled “It is Basically Cheating” highlights our products as indulgent yet nutritional alternatives (hence cheating) and has resonated very strongly with consumers. Lastly, we are working on increasing the physical availability of our products. Most of our products are in the health and beauty section of the store at most brick and mortar retailers (near the pharmacy section), but we are increasingly expanding into mainstream aisles to reach a broader audience.
Why is it so hard to make high-protein snacks taste great?
The challenge lies in balancing the macros. Low or no sugar and high protein levels naturally affect taste, as protein itself does not taste great. Our process involves replicating delicious sugary flavors and the mouthfeel of carbs while maintaining quality and delivering improved macronutrients.
That is where our food technology expertise and R&D team shine. I often say that Simply Good Foods is a food technology company. Our approach focuses on flipping the macros in unhealthy snacking categories. It is a complex process, but it is essential to create foods that meet consumer expectations for both nutrition and taste.
Simply Good Foods recently acquired Only What You Need (OWYN). What potential do you see in this brand?
OWYN, which we acquired in June 2024 for $280 million, is a fast-growing plant-based, allergen-free, clean-label brand that aligns perfectly with current consumer trends. It grew roughly 85% last fiscal year, expanding our presence in the high-protein ready-to-drink shake category where we previously had a gap. What stood out most was its crossover appeal. While it started with consumers focused on plant-based or allergen-free products, it has now attracted mainstream consumers because of its similar taste profile to dairy based protein shakes.
Taste has been the key to OWYN’s success. Many plant-based products struggle to appeal beyond their core demographic due to flavor limitations, but OWYN cracked the code with great-tasting products. We confirmed this during our M&A due diligence process and we see great potential to build on the brand’s momentum not only in the growing plant-based and clean-label space, but the broader protein shakes category.
Atkins is a legacy brand that emerged in a past chapter of diet culture and unrealistic body ideals. How are you revitalizing it to align with consumer mindsets in the modern era of nutritional science, popular diets and more diverse body acceptance?
Our research revealed Atkins was perceived as dated, so we have been refreshing the brand. Innovations like Atkins Endulge confections gummies and truffles make the brand more modern and on-trend. Additionally, we launched Atkins Strong, a 30-gram protein shake with fiber, appealing to those on weight-loss drugs to help address muscle loss and gut health issues.
A big driver of Atkins’ new direction is the impact of weight-loss drugs, which have shifted the cultural conversation around weight wellness. These drugs are still in their infancy, but with 60% of people actively trying to lose or maintain weight, Atkins has a critical role to play in this space.
We are positioning Atkins as a “sustainable off-ramp” for those coming off these drugs in addition to a proven nutritional approach for those that choose to not use the new medications.
Many consumers struggle to maintain weight loss due to unresolved relationships with food. Atkins provides a practical way to achieve or sustain weight loss without restrictive diets, emphasizing a liveable, balanced lifestyle.
What is your favorite Quest bar flavor?
It is a new one launching in March, part of our “Overload” platform featuring bars with low carb inclusions like chocolatey chunks and caramel swirls. It tastes like an ice cream sundae, yet it has 20 grams of protein, 4g of net cards and only 1g of sugar. Our goal is to make Quest bars as delightful as candy bars while maintaining the superior macros.
