Costco's Protein Sales Surge Amid Whey Shortage
Costco is selling wild amounts of protein as whey shortages loom
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Costco is experiencing a significant rise in sales of protein-rich products as demand grows due to the popularity of GLP-1 weight-loss drugs. However, a looming shortage of whey protein concentrate is driving up ingredient prices, creating challenges for smaller brands.
- 01Costco's CFO, Gary Millerchip, noted that protein products are performing exceptionally well, prompting the company to expand its offerings.
- 02The popularity of GLP-1 weight-loss drugs is increasing consumer interest in protein and related nutrients like magnesium and fiber.
- 03Costco's Kirkland Signature brand has launched an ultra-filtered protein milk that has gained rapid popularity.
- 04The US Department of Agriculture reported that whey protein concentrate prices are rising due to high demand and limited supply.
- 05It may take 12 to 18 months for rising protein costs to be reflected in retail prices, according to market research expert Scott Dicker.
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Costco is seeing a surge in sales of protein-rich foods and beverages, driven by the rising popularity of GLP-1 weight-loss drugs. The company's chief financial officer, Gary Millerchip, highlighted that protein items are performing exceptionally well, leading Costco to expand its selection. Costco's Kirkland Signature brand has introduced an ultra-filtered protein milk that has quickly gained traction. However, a looming shortage of whey protein concentrate is causing ingredient prices to rise, as reported by the US Department of Agriculture, which noted that production remains limited and inventories are tight. This shortage is particularly affecting smaller brands competing against larger companies like Starbucks and Mars for whey supplies. Despite these challenges, Costco members may not see immediate price increases, as it typically takes 12 to 18 months for rising protein costs to impact retail prices.
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The rising demand for protein products could influence consumer purchasing behavior and prices at Costco and other retailers.
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