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Wholesale pricing on bulk whey protein are going through the roof, where they stop is anyone's guess. A year ago, bulk whey concentrate was going for about $1.67 per pound for an 80% protein product. Today, this same product is up to nearly $4.00 per pound. Wholesale pricing on bulk whey isolate (90% protein or higher) is doing the same thing. With 4th quarter pricing expected to be near $5.00 per pound or more.
The increase in pricing is being driven by a number of factors, including some big acquisitions by Pepsi of a major supplement company, continued strong demand from the international market, and a new product that has just been launched by Gatorade. Not only are prices going sky high on whey protein but these factors are carrying over into other protein as well. Many smaller companies are already going out of business because they either can't get product or they can't continue to sell product with their existing prices with the bulk market prices so high. Many more companies will probably go under in the next few months if things do not settle back down in the whey market.
Despite these huge increases in pricing, Muscle Feast, LLC announced today, that not only will it weather the pricing storm but expects to pick up significant market share over the next several months because they are able to hold their current pricing levels due to significant amounts of product they acquired prior to the market going sky high on pricing. They also announced a 5% savings on all orders over $50.00 by using the coupon code "Muscle Feast Special" through the month of July. They also said they will continue their free shipping promotion through the end of July on all orders over $50.00.
"We are seeing tremendous growth in the market right now, especially since we have been able to hold our pricing at current levels, which happen to be the lowest available. We should be able to hold our current pricing through the end of the year and hope the market settles down from the big Gatorade push," commented Sean Gillespie, owner of Muscle Feast, LLC. "We are also getting a lot of calls at the moment because many smaller companies can't get product. We really expect our growth to excel as we pick up more private labeling contracts and begin offering different product sizes and also flavored products. We keep hoping that the impact Gatorade is having on the market right now will settle out at some point. We do a lot of business because our pricing is so low and our products are the highest quality in the market and we hope to keep our pricing within the existing structure." Visit http://www.musclefeast.com for more information.
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