BellRing Brands is a company that has recently received a great deal of attention. They announced their IPO and it perked the ears of investors around the world. The news was announced by its parent company on October 7, 2019. This also caught our attention as there are many questions that potential investors have about companies who are new to the market. We've done the research on BellRing Brands, Inc to bring you 20 things you didn't know about the company, but probably should if you're eyeing it as a potential investment.
1. BellRing Brands is a subsidiary of Post
St. Louis, Mo.-based food giant Post, is the parent company of BellRing Brands, Inc. They've recently made the announcement that the brand had intentions of going public. Post Holdings, Inc. is a well-known packaged goods holding company within a broad spectrum of the food services industry. They provide a variety of consumer brands products including convenient nutrition food, food ingredients, foodservice, and refrigerated items. Post Holdings Inc. is a leader in the North American industry for ready to eat cereals with popular names readily recognized in bagged and boxed cereal forms such as Malt-O-Meal, Honey Bunches of Oats, Pebbles, and many more.
2. BellRing Brands Inc is a global company
BellRing Brands is a holding company that has plans for operating in the convenience nutrition category of the food industry on a global level. They offer the primary brands Dymatize, PowerBar, and Premier Protein. Their front line products include protein shakes that are ready to drink nutrition bars and protein powders.
3. BellRing Brands Inc. are major distributors
The scope of BellRing Brands Inc. as a distributor of their products include a variety of different channels. These include club, food, mass, eCommerce, drug, convenience and specialty. This covers a huge spectrum and gives the company a rather broad reach of product distribution which is good news for potential investors because it offers a large marketing arena.
4. BellRing is offering 24% of its ownership
BellRing's initial public offering is placing 30,000,000 shares of common stock (Class A) on the table for purchase. This represents a 24% piece of the pie in ownership of the company. In addition to the 30 million shares fo common stock, the company has the expectation of offering a 30-day option to the underwriters for the purchase of 4,500,000 shares of Class A stock at the IPO price, minus discounts for underwriting and commissions.
5. Post announced the official pricing
BellRing's IPO price is set at $14.00 per share. The parent company had made one change over their previous estimate and increased the number of underwriter optional shares to 5,142,857, up from 4,500,000. Post will retain 74% ownership of BellRing Brands Inc. Trading commenced on October 17, 2019, for the first day of trading on the New York Stock Exchange under the ticker symbol BRBR. The closing date for the IPO will be on October 21, 2019.
6. BellRing Brands book-runners
The lead book-running managers for the IPO are Morgan Stanley & Co., LLC, JP Morgan Securities LLC, Citigroup, and Goldman Sachs & Co. LLC. Other book-running managers for the IPO include HSBC Securities USA Inc, BofA Merrill Lynch, BMO Capital Markets Corp, Barclays Capital Markets Corp, Evercore Group, Credit Suisse Securities USA LLC, Stifel, SunTrust Robinson Humphrey Inc, Wells Fargo Securities, LLC, Nicolaus & Company, Incorporated, UBS Securities LLC, Rabo Securities USA Inc, Nomura Securities International Inc, and PNC Capital Markets LLC.
7. Potential investors can obtain a copy of the prospectus
Obtaining a copy of the prospectus is easily accomplished there are several resources including Goldman Sachs & Co, LLC, JP Morgan Securities LLC in care of Broadridge Financial Solutions, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. Contact the prospectus departments at the physical locations, request via telephone or through email.
8. BellRing's revenues are promising
The global market for the protein powder shakes, and bars that are distributed by BellRing Brands is $32.7 billion on a global level. For the 2018 year, BellRing Brands sales totaled $827.5 million and the gross profit was $277.7 million. This was up from the 2017 year's $713.2 million with a net of $245.8 million in gross profit.
9. The distribution of revenues
The majority of the revenue generated for BellRoing Brands Inc is from club sales which amount to 63%. Food, drug, and mass sales are equal to 16% of the revenue with specialty sales at 12% and e-commerce sales contributing to 5% of the total revenue. With regard to the products, the best-sellers are the shakes contributing to 71% of the revenue, the powders 14%, and the bars at 11%. Broken down by brands, Premier Protein is the most lucrative encompassing 77% of the sales, with Dynamize bringing in 13% and PowerBar generating 7% of the sales.
10. BellRing Brands has a strategic plan in place
As a part of their marketing strategy, BellRing has made an official statement to help consumers get to know them a little better. Although not directly referred to as a mission statement, it could be construed as such. In the statement, the company discloses that it is a rapidly growing leader in the convenient nutrition category of the global market. A goal is to offer consumers a highly nutritious selection of products that taste good. it's simple and straight forward.
11. BellRing is targeting a broad category
The customer base that BellRing is targeting is broad in scope. Another of their goals is to compete for business by offering a variety of formats for the nutritional foods offered in the form of nutrition bars, shakes, and powders. Another goal is to enhance the health of everyone in the world with enjoyable, good tasting nutritious products. Their aims are admirable. The business is classified in the food and kindred products category.
12. BellRing Brands Inc is a brand new company
We recently learned that BellRing Brands, as a subsidiary of Post Holdings was founded in 2019. They operated as a division of their parent company and performed well in the past. According to iposcoop.com, the company employs 380 persons.
13. The big push is on enjoyment
BellRing's press releases and advertisements focus heavily upon two simple premises. These are creating a healthier world by offering highly nutritional products. The second is that there is a concentrated focus on making the products that they offer taste good so consumers will look forward to them. They acknowledge that it's not easy to make healthy things taste great and that is why they've taken an innovative approach to their production of the line of convenient ready to eat foods and shakes that they offer.
14. They're an ethical company
When you review the official website of BellRing Brands Inc. you can read through the corporate governance charts for more information about their philosophies on business and how they operate as an entity. We learned that BellRing and its Board of Directors maintain a strict commitment to running the business end of the company responsibly and ethically. This means that there is strict adherence to all laws and regulations. This is important to know because this type of order helps to prevent loss to the company through lawsuits or fines over infractions.
15. The Board of Directors follows a strict set of guidelines
Each member of the board is supplied with a copy of the corporate governance guidelines, that clearly outlines the responsibilities of the members. In addition, it also lists how they are to execute their responsibilities which are to be geared towards supporting the achievement of the business objectives of the company.
16. Business is achieved through the work of committees
It has become apparent that BellRing Brands Inc. has a firm charter in place. A part of governing the business of the company is accomplished through the appointment of special committees. One such group is the Audit Committee. The members are in charge of reviewing the auditing, internal control functions, and financial reporting of the company and this is done in accordance with the Audit Committee Charter, which has been drafted and approved. It is always a good sign when the work of committees is involved in review and decision making processes. This allows for a variety of points of view and expertise to be shared among the group for discussion before actions are taken.
17. Fair wages are also ensured through board committee
BellRing also uses a Compensation Committee to review all of the company's activities relating to the compensation of employees of the company. This is accomplished through adherence to the established Corporate Governance Guidelines and the drafted and approved Compensation Committee Charter. The group reviews executive compensation as well as the administration of employee benefit plans. This implies that BellRing has a decent set of checks and balances set up to ensure that the pay scales and benefits are fair to all workers.
18. The company is open to suggestion
BellRing Brands Inc is one of the few companies that openly encourages suggestions. In a statement made on the official website for the business, there is a printed request for anyone who is aware of a violation of the code of contact to report it immediately.
There is a phone number that is provided in the US and Canada, as well as contact numbers for other countries of the world. This shows that they are serious about conformation to the established code of contact. This is a policy that goes beyond that of the subsidiary company BellRing Brands and extends to the Post Holdings community as well. The company acknowledges that how business is conducted matters a great deal. They mention the trust of all stakeholders being a high priority and they encourage all members of the Post community to conduct themselves in accordance with established rules as their obligations and responsibilities.
19. Why we think BellRing is a company to keep your eye on
Our research on BellRing Brands Inc. has uncovered some facts about the company that we were not previously aware of. Although the entity under its current name is brand new for 2019, thanks to the public offering, it's been in operation under Post Holdings since before it was "officially founded" as a company in itself.
This company has established some of the most remarkable charters for ensuring that the business is run efficiently, ethically and in line with established rules and regulations. Their documentation is thorough and well-thought-out. It bears the earmarks of many hours of work by a multitude of contributors to the charters outlining company guidelines and the code of conduct. This speaks well of the leadership and it builds confidence in the company. Only time will tell if management sticks to the plan but it's comprehensive and holistic in approach.
20. Considerations for new investors
BellRing Brands Inc is preparing to close on the public offering as of October 21, 2019. The price of common stock shares (Class A) is set at $14.00 per share. Although it's not yet clear how many shares have been purchased, this subsidiary of Post Holdings has shown a consistently growing profitability over the past two years.
They're competitors in an industry that is over $32 billion and they are taking a global approach to business, serving consumers and businesses throughout the world. So far, BellRing Brands is a promising company that is in operation under one of the leading food products manufacturers and distributors in the entire world. It has a lot going for it, but one must also consider that any investment in stock is a risk. Still, this is one that seems to have the earmarks for achieving success in a market with strong demand and the backing of a leader in the industry.
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Written by Garrett Parker
Read more posts by Garrett Parker