Why Kellogg's Bought This Energy Bar Company for $600 Million

December 7, 2017

Kellogg’s recently bought the company RXbars for a hefty $600 million. The cereal maker says the “unique and innovative” company, known for its simple labels with ingredients printed on the front, will continue to operate independently.

The whole food protein bar boasts is made of egg whites, nuts, fruits, and “no b.s.” The company started in 2013 amid the rise of the health-conscious consumer.. Now, the company has 11 different flavors.

Kellogg’s says that it will extend its resources to the start-up so that it can continue to grow quickly. RXbars Co-founder and CEO Peter Rahal also told Cheddar on Thursday that, “Kellogg’s is an amazing organization.”

RXbars exists at a time when Americans care more about what’s in their food, and healthy food categories are growing faster than their indulgent counterparts.. While the healthy snack numbers are going up, a mere 18 percent of adults in the U.S. make it a goal to eat only healthy food, according to a recent Pew Research study.

Rahal discusses how RXbars’ transparent, upfront branding propelled its success. “The way we talked about the product back in the day was, ‘here’s an RXBar,’ and people would be like ‘well what is it?” Rahal says that detailing the product ingredients, “really resonated.”