BellRing Brands Inc - Class A

BellRing Brands, Inc. (BRBR or 'BellRing') was the top contributor in the short book during the third quarter of 2025. BellRing is a leader in the convenient nutrition category through its Premier Protein brand. Ready-to-drink ('RTD') protein shakes account for roughly 80% of BellRing’s sales. The shake category has grown at double-digit rates for the last four years. However, the issue in our view is rising competition. Premier’s packaging is dated, and big Consumer Packaged Goods Companies like Coca-Cola and PepsiCo are muscling their way into the category. When BRBR reported Q2 2025 results, the company hinted at rising competitive intensity, and the stock declined a little over 30% on the day it reported. We exited our position shortly thereafter.

BellRing Brands produces and sells protein-based health and fitness beverages. The stock got hit dramatically as the company reported quarterly earnings. While the report was in line with consensus expectations, BellRing refrained from giving guidance for the next fiscal year, something it typically does at this point in the year. The lack of guidance was interpreted as a material slowdown in its growth rate due to new entrants in the category. At this point, we continue to expect growth around the company’s long-term average.

BellRing produces and sells protein-based nutritional beverages and bars for health- and fitness-oriented consumers. The stock delivered lackluster performance as guidance for the upcoming quarter came in below expectations. We feel the slower growth rate is temporary and a reflection of inventory adjustments at the company’s warehouse club channel partners, and not a sign of more pervasive slowing at BellRing or in the protein shake category.

BellRing Brands, Inc. provides various nutritional products and is best known for its Premier Protein and Dymatize brands. The company’s fundamentals are strong, and despite a one-off channel inventory dynamic affecting guidance for the third quarter, we believe our secular thesis is on track. This is supported by strong consumption metrics and a continued runway to increase distribution and penetrate new households.

We also purchased nutritional beverage company BellRing Brands, and though classified as a consumer staple, we will mention it here. The company’s Premier Protein brand is the leader in the convenient nutrition category, which is experiencing favorable secular growth. We believe the dynamic of the brand’s market share being twice that of its total distribution endpoints can provide a tailwind to brand revenue growth.