RXBAR Expands its Product Line Into Hot Cereal Market

Kellogs-owned protein bar company RXBAR is launching a line of hot cereal products called RX A.M. Oats. The breakfast item contains a minimal list of natural ingredients that are similar to the company’s line of health bars and nut butters.

“RXBAR is known for disrupting the protein bar category, and now we’re doing the same for oats,” said Victor Lee, CMO, RXBAR. “We’re committed to providing foods with simple, real food ingredients that taste good and are good for you, and new RX A.M. Oats are no exception.”

The oats are gluten-free and are blended with fruit and nuts with flavors varying from maple and apple cinnamon to chocolate. The product is also made with egg whites to add a valuable source of protein that’s low in calories and fat.

The oats are marketed in single-serve cups with each serving including 12 grams of protein and 6 grams of fiber. The breakfast cereal can be made in the microwave, with hot water, or can be kept in the fridge to make overnight oats.

This element of health and convience resonates well with a growing number of Millennial and Generation Z consumers, which could be a reason why the hot cereal market experienced substantial growth last year. According to Information Resource Inc, this segment of the market reached 1.3 billion dollars in sales in the United States in 2018.

In addition, the better-for-you food line’s nut butter spread — which was launched last spring — received a 13 percent year-over-year increase in distribution sales. RXBAR anticipates that their new line of breakfast oats will experience similar results in the food market.

At the Natural Product Expo, where its oat line was first previewed, CEO and co-founder Peter Rahal told Food Business that the idea behind the product was to create a healthier breakfast for its consumers by using its RX staple ingredients.

“When you think about breakfast, I find a lot of people are quite frustrated with it,”  said Rahal. “We wanted to take our angle as a brand and add more value to breakfast, using egg white for protein, and almonds for more substance.”

Kellogs bought the RXBAR brand in 2017 for $600 million, and the company fueled the manufacturing giant’s distribution sales to more than double in 2018.

Furthermore, their new natural ingredient line doesn’t stop at oatmeal; the company has also released a crunch-based savory snack bar under the name TIG earlier this year. These chickpea and lentil-based bars are meant to be a more indulgent snack food that doesn’t offer the same functional protein as their RX line, but still provides consumers with a healthier alternative to snacking.

With all these different products coming to market, as well as the positive feedback the company has received from consumers over recent years, customers can expect the better-for-you brand to advance its scope of functional ingredients in new food items in the years to come. For now, the RX A.M. Oats can be purchased online and will be available at retail stores starting this September.