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Home » News » Kellogg Set to Buy RXBAR for $600 Million

Kellogg Set to Buy RXBAR for $600 Million

Written by Jake Boly, CSCS
Last updated on July 27th, 2023

On October 6th, Kelloggs Co announced that they’d entered an agreement to acquire Chicago Bar Co, the owners of RXBAR, for $600 million. Kellogg Co’s CEO Steve Cahillane is working to build out Kellogg’s health focused snack portfolio.

In the original Reuters press release, Cahlillane states, “RXBAR is a unique and innovative company. Its values, people and cutting-edge approach represent an exciting opportunity for our business. Adding a pioneer in clean-label, high-protein snacking to our portfolio bolsters our already strong wholesome snacks offering. RXBAR is an excellent strategic fit for Kellogg as we pivot to growth,”

Chicago Bar Co is a Chicago based startup that focuses on the creation of healthy protein bars void of added sugar, soy, gluten, and dairy. They sell their products through national retailers, fitness facilities, and online markets. RXBARs have grown in popularity in the CrossFit® community, and for strength athletes looking for a simple protein bar. You’ve probably seen them sold in gyms you’ve attended.

View this post on Instagram

A post shared by RXBAR (@rxbar)

BakeryandSnacks.com currently cites Kellogg Co as the largest ready-to-eat cereal maker with $2.59 billion in global sales, and 30.01% of market share. Kellogg Co are the manufacturers of cereal favorites such as Special K, Frosted Flakes, Fruit Loops, and more.

RXBAR was founded in 2013 in an attempt to create a protein bar focused around the premise of “no B.S.” Two best friends set out to produce a bar with minimal ingredients and packaging. Since their beginning in 2013, RXBAR has created over ten flavors of their signature bar, and have even began formulating and selling kid’s protein bars.

For current fans of RXBAR worried about Kellogg Co changing the bar, it appears they’ll continue to function independently after the deal. In the Reuters report they state, “Kellogg said Chicago Bar Co will continue to operate independently after the deal and expects the unit to post net sales of about $120 million in 2017.” 

In addition, RXBAR CEO and co-founder stated, “If you’re a customer of ours, you won’t feel a change. What will change is there will be more places you can get the bars, so more people will eat our products.”

In RXBAR’s first full year of business, which ended in 2014 they did $2 million in sales. To give context into how fast they’ve grown, in 2014, they produced a total of 1.5 million bars, and are now projecting 120 million bars for 2017.

Feature image from @rxbar Instagram page. 

About Jake Boly, CSCS

Jake holds a Master's in Sports Science and a Bachelor's in Exercise Science. Jake formerly served as BarBend's Fitness and Training Editor.

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