Ghost, General Mills Bring Nostalgic Focus to Protein Cereal Category

Why is a performance energy and protein brand expanding into the breakfast set? Ghost Lifestyle co-founder, CEO and self-described “cereal aficionado” Daniel Lourenco said “that’s the easiest question of all.”

“Cereal, from the very outset, has been in our DNA,” Lourenco said in a phone interview. “The very first launch videos and content and storytelling that we did all the way back in 2016, when we were simply launching in sports nutrition, nostalgia played a really big role in that and cereal specifically.”

Ghost Lifestyle, known for its RTD energy drinks and sports nutrition powder mixes, has partnered with General Mills to create the line, launching Wednesday in Peanut Butter and Marshmallow varieties, the latter containing official Lucky Charms marshmallows for a fully authentic experience. Set to retail at $9.99 per box, which Lourenco suggested is competitive in the protein cereal set, the line aims to provide consumers with a Saturday morning flavor kick with 17-18 grams of protein per serving.

The brand has frequently tailored its powdered innovation around cereal-inspired flavors, including various “Cereal Milk” flavored whey powders, such as Fruity, Peanut Butter and Marshmallow. Its nostalgia-minded approach extends into energy drinks, where the company has developed co-branded flavors with candy lines like Sour Patch Kids and Swedish Fish, so partnering with General Mills for a proper cereal launch seemed to Lourenco a natural next step.

“Functional foods are absolutely the most natural or obvious place a lot of sports nutrition brands go after powders,” he said. “A lot of brands typically aim for your traditional protein bar, and they go to a white label manufacturer that makes bars for everybody, and that’s why most of the bars in the market are very, very similar, if not virtually identical. We didn’t want to do that.”

Bolstered by a distribution partnership with Anheuser-Busch InBev, Ghost has in recent years emerged as one of the fastest growing energy drink brands in the market, with retail dollar sales of its RTD line up 116.6% to over $585.9 million in the 52-weeks ending December 31, 2023, according to Circana.

In February, the brand extended its RTD offerings into non-caffeinated sports drinks with a new hydration beverage line, available online and in retailers such as GNC and Vitamin Shoppe.

Protein-boosted cereals have risen in the market in recent years through brands like Three Wishes and Magic Spoon that have similarly made use of sweeter flavors modeled after kids cereal brands but with reduced or zero sugar. According to the Brightfield Group, protein cereal has seen particular adoption from millennials, who make up around 43% of the category’s consumers.

Ghost’s take on the format is similar to that seen by other startup brands, but comes with the support of General Mills behind the rollout, although Lourenco said that Ghost primarily “created, crafted and designed” the product. Much of the marketing will be handled by Ghost through its existing channels, including social media and influencer campaigns. As well, Lourenco said the brand aims to “leverage the expertise” of General Mills to support its field marketing and in-store efforts.

He noted that Ghost aims to continue working with General Mills on future projects, including potential extensions in the cereal space, as well as licensing opportunities for Ghost powders featuring co-branded flavors as well as “other foods.”

The cereals will launch online via Ghost’s website on Wednesday, April 10, and will then enter national retail via Walmart and “several more retailers to follow” in the coming months, Lourenco said.

Looking ahead, Lourenco said Ghost has a “big innovation calendar” planned for its powder line, which remain tailored to the specialty and D2C channels, while the energy drinks have rolling limited edition offerings scheduled to launch throughout the year, including a summer Electric Limeade flavor.

The brand is also looking to target the on-premise channel with its RTD energy offerings, launching an “OG” flavor intended to break into the space with hospitality accounts, Lourenco added.

“On premise is really interesting, it’s a channel where there hasn’t really been a lot of [energy] brands successful there before, but we do feel like we have the brand and the product and the right to win there, especially based on the success we’ve had at festivals,” he said.