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RXBar founder Peter Rahal says he's betting everything on the growth of protein-based foods with his new food-tech startup, David.
Last week, a new brand called David announced that it had raised $10 million, led by Rahal and backed by Valor Siren Ventures, Dr. Peter Attia, and wellness podcaster Andrew Huberman. The brand will be launching the David snack bar in a few weeks, which has 28 grams of protein (it claims more than its competitors), 150 calories, and zero sugar. The brand hasn’t yet revealed the flavors or the full ingredient list for the bars, but early entrants include blueberry pie, chocolate chip, and brownie.
In an interview with Food Dive, Rahal said he saw an opportunity in the underserved snack bar segment. He left RX in 2019, and his non-compete agreement with the company ended two years ago.
Peter Rahal, founder and CEO of David.
By David's courtesy
“If you look at nutrition bars, there’s actually a pretty big gap between what’s super high in protein, low in calories, and sugar-free,” Rahal said. “We don’t see anything that has the attributes that we have.”
Rahal has seen many nutritional fads ebb and flow in the food and beverage sector over the years, but he doesn't believe protein is a bubble about to burst any time soon.
“If you look at the three macronutrients—carbohydrates, fat, and protein—protein is essential for a lot of the body’s biological processes. The body can make carbs. Fat is important, but we have no problem getting it,” Rahal said. “Protein is a valuable part of the diet, and it can be hard to get it in, so snack bars are a great way to get it.”
Rahal founded the RX brand in 2012, first debuting as the RXBar before being acquired by snack giant KelaNova for $600 million in 2017, and has since expanded the brand’s reach. The bar is notable for its bold ingredient list adorning its packaging, which lets consumers know it contains three egg whites, six almonds, and “No BS.”
According to Rahal, the company struggled in the late 2010s as many consumers adopted the trendy keto diet, which curbs sugar and carbohydrate intake, especially in snacks.
“It was a vulnerable position and one that was hard for us to adapt to,” Rahal said. “With David, the strategy I’m working on is building a business that is less vulnerable to trends.”
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Consumers are increasingly buying protein bars. The category is growing rapidly and is expected to be worth $7 billion by 2030, according to Market Research Future, growing at a CAGR of 6.3%.
Named after the famous Michelangelo sculpture, David is entering a different market than the RXBar did when it first appeared in the early 2010s. The bar will compete with a number of similar products from Clif, Kind, and Quest, as well as other high-protein products that have been added in the past two years, from Eggo waffles to cereals.
According to Rahal, David Brand has spent most of his time focusing on making sure the taste and texture of the bar meets high-quality standards. He said he has no plans to expand beyond that in the near future. He said it’s a mistake for entrepreneurs to cast too wide a net early on.
“We are putting all our resources and energy into becoming the best protein bar in America, and once that’s done, we will have the organization and platform to address other consumer needs,” Rahal said.
Atia, a well-known investor in the “longevity medicine” space, said he became interested in the company because of his shared interest in nutritional products focused on muscle growth.
“Protein is essential for longevity, and our products are designed with that in mind,” Attia said in a statement. “With Peter Rahal’s proven leadership and the strategic support of our investors, I believe we are poised to lead the industry in creating meaningful change.”
