Surpassing $100 Million in Revenue, Protein Bar Maker ALOHA Doubles Down on Healthy Snacking Trend

Small business takeaway

• Focusing on one hero product and scaling strategically helped protein bar startup ALOHA grow to $100 million in revenue. For small brands, disciplined focus — such as targeting high-margin scalable products — and thoughtful B2B and B2B expansion, via retail stores and hospitality and partners, for example, can build sustainable growth even in the most competitive categories.

Protein, fiber, no or low sugar — ALOHA checks all the boxes of leading trends influencing snack bar sales. The company’s health-conscious approach to its plant-based protein bars has led to enviable results in the vast, competitive snack bar category, estimated by market researcher Mordor Intelligence to hit $16 billion in North America by 2026.

ALOHA reports a whopping 863% revenue growth over the past four years, with revenue now surpassing $100 million. The company, which launched in 2013, has also earned a spot on Inc.'s 5000 list of the fastest-growing private companies in the United States two years in a row.

Growth has come amid a strategic product refocusing by Brad Charron, who was named CEO of ALOHA in 2017 after stints at Chobani and KIND.

“Brad wanted to do one thing well and then build trust, so he focused on bars,” Shapiro continued. (Protein drinks, powders, and minibars were added later.)

Tapping into consumers’ surging interest in protein-enriched foods 

ALOHA’s organic bars, made with a blend of brown rice and pumpkin seed proteins, are designed to offer a flavor profile more akin to a candy bar that differentiates taste-wise in the protein bar category.

With 14 grams of protein, Aloha is also leaning into consumers’ surging interest in protein-enriched products.

Indeed, 44% of U.S. consumers, including 59% of Gen Z and 51% of millennials, are actively trying to increase their protein intake, citing the nutrient’s satiating and perceived muscle-health benefits, according to Bain & Company research.

As a result, both startups and established food brands are tapping into the trend with new products that span food categories — from protein-boosted snack bars to cereals to lattes.

In the food space, ALOHA considers all healthy snacking to be its competitive set, so it tracks trending flavors and ingredients across categories. But clean ingredients eclipse trends when it comes to product development. “It’s important to do something no one has seen before, but we would never add a lot of sugar or artificial ingredients just because something is trending,” said Shapiro.

[Read more: Food Startups David, MOSH, and PopUp Bagels Take a Nuanced Approach to Product Expansion]

Aloha’s diversified revenue stream: DTC, retail stores, and B2B partners from American Airlines to the NHL to yoga studios

ALOHA bars are available throughout the United States and Canada, in 19,000 stores, including Whole Foods Market, Kroger, Sprouts, Target, and Walmart. But the brand uses a judicious approach to scaling. “We took a digital-first approach and strategically entered into retail using it as proof points of where to expand,” Shapiro said.

The company is still digitally led with a strong direct-to-consumer (DTC) channel and Amazon presence. ALOHA also has some strategic hospitality partners like American Airlines and a growing B2B business. “We sell to gyms, NHL and NFL teams, as well as yoga studios,” said Shapiro. “It points to the growth of wellness products.”

Targeting millennial moms and the lunchbox aisle sparks untapped growth

Product placement that wasn’t limited to health and wellness sections in retail stores has created opportunities for Aloha. When Walmart first began carrying the bars, it placed them in the supplement aisle, Shapiro remembered. But in Target, where they now have nationwide distribution, the bars are in the “lunchbox aisle, where millennial moms are shopping, and they want healthy snacks for themselves and their kids,” Shapiro said. ALOHA is now planning a similar merchandising strategy at Walmart later this year. 

Millennial moms are a growing segment of ALOHA’s target audience, along with younger Gen Z shoppers, who are increasingly conscious of macronutrients. “There’s an overall trend in avoiding ultra-processed foods and more conversations about ingredients and trying to eat more real food,” Shapiro noted.

[Read more: Cooking Convenience Trends Are Driving Sales for Food and Beverage Companies]

An employee-owned structure fuels a mission-driven brand

Products boast a roster of certifications from gluten free to vegan to fair trade. Additionally, the company is a Certified B Corporation. “If someone tries [our products] and they don’t taste good, it doesn’t matter how excellent the brand is,” Shapiro noted regarding the mission-based attributes. “But more folks are considering supporting brands that are not only good for them but good for the community and good for the planet.”

Charron also implemented an employee-owned structure for ALOHA, something Shapiro believes creates a strong mission-driven brand. “They are building something where they share ownership and win together,” she explained. “It gives [employees an added] incentive to do what they think is right.”

Lead with taste rather than chasing health trends

Shapiro’s advice for startups with a mission-driven food brand is simple: Always lead with the food. “It’s easy to chase health trends,” she said. “But in the end, it’s about people reaching for your product every day and making something you can be proud of.”

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