Hormel Foods is selling CytoSport, its line of performance-enhancing nutritional beverages and foods, to PepsiCo after four years of ownership with “disappointing” results.
CytoSport, which comprises the Muscle Milk and Evolve Protein brands, had been distributed by PepsiCo. Terms of the sale were not announced. It is expected to close in one to two months.
Hormel had bought CytoSport in 2014 for $450 million. Under its ownership, CytoSport developed the Evolve Protein line of energy drinks and snack bars. But the unit was plagued by several mishaps, including a recall by a contract manufacturer due to a packaging defect.
CytoSport will be the first major acquisition under Ramon Laguarta, PepsiCo’s new CEO.