RXBar founder Peter Rahal says he is betting everything on the growth of protein-fueled foods with his food-tech startup, David.
Last week, the new brand, David, announced that it had raised $10 million, led by Rahal along with the backing of Valor Siren Ventures, physician Peter Attia, and wellness podcaster Andrew Huberman. The brand plans to launch David snack bars in the next few weeks, and each of the bars will have 28 grams of protein (which it claims is more than that of its competitors,) 150 calories, and no sugar. The brand has not revealed the line of flavors or the full list of ingredients in the bars, but early entrants include a blueberry pie, chocolate chip, and brownie flavor.
In an interview, Rahal said he saw an opportunity in the snack bar category that had not yet been filled. He left RX in 2019, and his non-compete agreement with the company was lifted two years ago.
“When you look at nutrition bars, there is actually a pretty big gap for a super-high protein, lower-calorie, zero sugar product,” Rahal said. “I don’t see one with the characteristics we have.”
Rahal also stated that he has watched many nutrition fads rise and fall in the industry over the years but does not believe that protein-based products will taper out anytime soon.
“When you look at the three macronutrients—carbohydrates, fat, and protein—protein is the one that is essential for multiple biological processes in the body. Your body can make carbohydrates. Fat is important too, but we have no problem getting it,” Rahal said. “Protein is where the value is, and it can be difficult to get into your diet, so a snack bar is a great opportunity to get it.”
Rahal founded the RX brand in 2012, before it was purchased by the snacking giant Kellanova for $600 million in 2017, and first debuted its RXBar before broadening the brand umbrella. The bars were known for their bolded ingredient lists adorning their packaging, where consumers could plainly see that the bars contained three egg whites, six almonds, and “No B.S.”
Rahal has stated that the company struggled when many consumers adopted the keto diet in the latter half of the 2010s, which discourages the consumption of sugar and carbohydrates, especially in snacks.
“That was a vulnerable position, and it was hard for us to adapt,” Rahal said. “In the strategy with David, I’m building a business that is less fragile in the face of trends.”
Consumers are increasingly buying protein bars. According to Market Research Future, the category is projected to be worth $7 billion by 2030 and rise at a compound annual growth rate of 6.3%.
David, which is named after the famous Michelangelo statue, is entering the market in an environment that is different from the one the RXBar entered when it debuted in the early 2010s. The bars will compete with products such as Clif, Kind, and Quest, as well as others that have launched within the past two years, with high amounts of protein added, from Eggo waffles to cereals.
Rahal says that the David brand has focused most of its time on ensuring the taste and texture of the bars are high-quality. Rahal has stated that it does not have plans to expand beyond that anytime soon and that it’s a mistake for entrepreneurs to cast too wide of a net early on.
“We’re putting all of our resources and energy into becoming the number-one protein bar in America, and once that’s achieved, we’ll have the organization and platform to go solve other consumer needs,” Rahal said.
Investor Attia, known in the “longevity medicine” industry, has stated, “Protein is essential for longevity, and our products are designed with that in mind. With Peter Rahal’s proven leadership and the strategic backing of our investors, I believe we are set to lead the industry in creating meaningful change.”
