Balance bar
Encyclopedia
Balance Bar, sometimes styled as balance bar, is the brand name of a nutritional energy bar
based on the 40-30-30 dietary principle, that is, a diet containing 40% carbohydrate, 30% protein and 30% dietary fat. The 40-30-30 nutritional philosophy was popularized by Dr. Barry Sears
, a biochemist, and later expounded in his Zone diet
books.
The product was first released in 1992. Since that time, the product line has expanded to include Balance Bar, Balance Gold, Balance Trail Mix, Balance Plus, Balance CarbWell, Balance Gold Crunch, Balance Outdoor, Balance Organic, Balance 100 Calories, Balance Bare, and 40-30-30 Balance Drink Mix.
. Balance Bars were originally sold through natural food stores, and were introduced into mainstream stores in 1997.
Sears was originally to have partnered with Lamb, but backed out of the deal and formed a competing company to sell BioZone bars and other products through multi-level marketing
. In 1995, Sears' bestselling book about his nutrition concepts, The Zone, was published. Around the same time, several other authors published books advocating high-protein diets and the nutrition bar business started to take off. Balance Bar sales hit $1.3 million in 1995. In 1999, just four years later sales reached $100.9 million.
The company's speedy growth caught the attention of Kraft Foods
, which purchased the company for $268 million ($19.40 per share) in January of 2000 as part of a strategy to expand its product line to natural foods. Earlier that same week, Kraft had announced it would acquire Boca Burger
. Kraft paid a 37% premium over Balance Bar's then-current trading price.
Analysts cited Balance Bar's agreement to market a line of bars with weight loss firm Jenny Craig, Inc. as a factor that drove up the price. Another factor accounting for the premium may have been that Kraft's purchase was part of a rush by large food manufacturers such as General Mills
, PepsiCo
and the Adolph Coors Company
to snap up well-established natural foods companies such as Cascadian Farms, Mother's Oatmeal and Blue Moon Beer respectively.
At the time, the deal was thought to be a winner for both sides, with Kraft picking up a well-established brand in a high-growth market category, and Balance Bar leveraging Kraft's resources for further growth. However, the company languished under Kraft, and in December of 2009 was purchased for an undisclosed amount by private equity firm Brynwood Partners, a firm known for buying orphan brands from large companies.
Balance Bar was "not financially material" to Kraft, said a Kraft spokesman at the time. In 2008, Kraft posted annual revenues of $42 billion.Balance Bar posted revenues of $127 million, a 7% decline from the previous year. It slipped to third position in the category, with Clif Bar surpassing it in sales. Nestle's PowerBar
held the top spot, with 2008 sales of $196 million
The sale was seen as part of a larger restructuring effort by Kraft CEO Irene Rosenfeld
to sell underperforming brands and refocus on Kraft's core of dairy and pizza products. It also reflected a recognition that the nutrition bar category had matured. Competition stiffened as over 500 new bars launched in 2004 and 2005. New product launches fell off significantly in the following years, as did interest in the high-protein diet fad. However, Balance Bar retained a very loyal customer following that was attractive to Brynwood, which said at the time of the sale that it planned to increase marketing and new product innovation.
Energy bar
Energy bars are supplemental bars containing cereals and other high energy foods targeted at people that require quick energy but do not have time for a meal...
based on the 40-30-30 dietary principle, that is, a diet containing 40% carbohydrate, 30% protein and 30% dietary fat. The 40-30-30 nutritional philosophy was popularized by Dr. Barry Sears
Barry Sears
Barry Sears, Ph.D. is a biochemist best known for creating and promoting the Zone diet, which is aimed at achieving stable blood sugar levels, hormonal balance, low inflammation, and good health...
, a biochemist, and later expounded in his Zone diet
Zone diet
The Zone diet is a diet popularized in books by biochemist Barry Sears. It advocates consuming calories from carbohydrates, protein, and fat in a balanced ratio.- Theory :...
books.
The product was first released in 1992. Since that time, the product line has expanded to include Balance Bar, Balance Gold, Balance Trail Mix, Balance Plus, Balance CarbWell, Balance Gold Crunch, Balance Outdoor, Balance Organic, Balance 100 Calories, Balance Bare, and 40-30-30 Balance Drink Mix.
Company History
The Balance Bar Company was founded in 1992 by Thomas Davidson and Richard Lamb, a windsurfing champion, Olympic judge and sporting goods manufacturer who would later go on to found New Sun Nutrition. Davidson, Lamb and two other investors acquired rights to a bar based on Sears' zone diet. The company was originally called Bio Foods Inc. and was located in Santa Barbara, CaliforniaSanta Barbara, California
Santa Barbara is the county seat of Santa Barbara County, California, United States. Situated on an east-west trending section of coastline, the longest such section on the West Coast of the United States, the city lies between the steeply-rising Santa Ynez Mountains and the Pacific Ocean...
. Balance Bars were originally sold through natural food stores, and were introduced into mainstream stores in 1997.
Sears was originally to have partnered with Lamb, but backed out of the deal and formed a competing company to sell BioZone bars and other products through multi-level marketing
Multi-level marketing
Multi-level marketing is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation...
. In 1995, Sears' bestselling book about his nutrition concepts, The Zone, was published. Around the same time, several other authors published books advocating high-protein diets and the nutrition bar business started to take off. Balance Bar sales hit $1.3 million in 1995. In 1999, just four years later sales reached $100.9 million.
The company's speedy growth caught the attention of Kraft Foods
Kraft Foods
Kraft Foods Inc. is an American confectionery, food and beverage conglomerate. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oscar Mayer, Philadelphia, Trident, Tang...
, which purchased the company for $268 million ($19.40 per share) in January of 2000 as part of a strategy to expand its product line to natural foods. Earlier that same week, Kraft had announced it would acquire Boca Burger
Boca Burger
Boca Burger is a veggie burger made chiefly from soy protein and wheat gluten; it is a registered trademark of the Boca Foods Company, a subsidiary of Kraft Foods. Like all of Boca Foods' products, Boca Burgers serve as a meat analogue. Although most of Boca products are vegetarian and may include...
. Kraft paid a 37% premium over Balance Bar's then-current trading price.
Analysts cited Balance Bar's agreement to market a line of bars with weight loss firm Jenny Craig, Inc. as a factor that drove up the price. Another factor accounting for the premium may have been that Kraft's purchase was part of a rush by large food manufacturers such as General Mills
General Mills
General Mills, Inc. is an American Fortune 500 corporation, primarily concerned with food products, which is headquartered in Golden Valley, Minnesota, a suburb of Minneapolis. The company markets many well-known brands, such as Betty Crocker, Yoplait, Colombo, Totinos, Jeno's, Pillsbury, Green...
, PepsiCo
PepsiCo
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company...
and the Adolph Coors Company
Adolph Coors Company
The Golden, Colorado Adolph Coors Company was formerly a holding company controlled by the heirs of founder Adolph Coors. Its principal subsidiary is the Coors Brewing Company. It was founded in 1873....
to snap up well-established natural foods companies such as Cascadian Farms, Mother's Oatmeal and Blue Moon Beer respectively.
At the time, the deal was thought to be a winner for both sides, with Kraft picking up a well-established brand in a high-growth market category, and Balance Bar leveraging Kraft's resources for further growth. However, the company languished under Kraft, and in December of 2009 was purchased for an undisclosed amount by private equity firm Brynwood Partners, a firm known for buying orphan brands from large companies.
Balance Bar was "not financially material" to Kraft, said a Kraft spokesman at the time. In 2008, Kraft posted annual revenues of $42 billion.Balance Bar posted revenues of $127 million, a 7% decline from the previous year. It slipped to third position in the category, with Clif Bar surpassing it in sales. Nestle's PowerBar
PowerBar
PowerBar is an American maker of energy bars and other related products ....
held the top spot, with 2008 sales of $196 million
The sale was seen as part of a larger restructuring effort by Kraft CEO Irene Rosenfeld
Irene Rosenfeld
Irene Blecker Rosenfeld is an American businesswoman, who is the current CEO and Chairwoman of Kraft Foods.-Early life and education:...
to sell underperforming brands and refocus on Kraft's core of dairy and pizza products. It also reflected a recognition that the nutrition bar category had matured. Competition stiffened as over 500 new bars launched in 2004 and 2005. New product launches fell off significantly in the following years, as did interest in the high-protein diet fad. However, Balance Bar retained a very loyal customer following that was attractive to Brynwood, which said at the time of the sale that it planned to increase marketing and new product innovation.