BellRing Brands, Inc. (BRBR): PESTLE Analysis [Nov-2025 Updated]

You're looking at BellRing Brands, Inc. (BRBR) and its projected $\mathbf{\$1.85 \text{ billion}}$ in net sales for fiscal year 2025-a huge number driven by Premier Protein and Dymatize. But hitting that target while managing persistent inflation on whey and packaging is the real test. We need to look beyond the balance sheet to the external forces-Political, Economic, Sociological, Technological, Legal, and Environmental-that defintely shape their next moves. This analysis maps the near-term risks, like stricter Food and Drug Administration (FDA) supplement rules, and the clear opportunities, like the $\mathbf{10\%}$ projected volume growth from the aging population, giving you the actionable insights to make a smarter investment or strategy decision right now.

BellRing Brands, Inc. (BRBR) - PESTLE Analysis: Political factors

You're operating in the convenient nutrition space, a category that's attracting both massive consumer spend and, naturally, intense government attention. The political landscape in 2025 isn't just about elections; it's about regulatory enforcement and trade policy shifts that hit your margins directly. We need to focus on two things: the Federal Trade Commission (FTC) tightening the screws on health claims and the volatile tariff situation impacting your raw material costs.

Increased scrutiny on food and supplement advertising claims by the Federal Trade Commission (FTC)

The Federal Trade Commission (FTC) has defintely ramped up its focus on the dietary supplement and functional food industry, which includes BellRing Brands' Premier Protein and Dymatize products. The agency is using its enforcement power to demand that all health-related claims-whether they're about muscle gain, weight loss, or general wellness-are supported by 'competent and reliable scientific evidence' (CARSE). You simply cannot play fast and loose with the truth anymore.

The risk here is clear: the FTC is actively seeking civil penalties, which can be steep. For a single knowing violation of the FTC Act, the agency has the authority to seek up to $50,120 per violation. We saw a clear example of this trend in late 2024 when a wellness brand was ordered to pay $650,000 in refunds for unsubstantiated claims and deceptive endorsements. For a company with the scale and visibility of BellRing Brands, a misstep in advertising substantiation could result in a multi-million dollar penalty and significant brand damage. One clean one-liner: Substantiation is now a cost of doing business.

Potential for new tariffs on imported ingredients like cocoa or whey protein from global suppliers

Shifting US trade policies have created significant supply chain volatility. While BellRing Brands has done a solid job mitigating some of the risk, the political environment has already baked higher costs into the future outlook. In early 2025, the administration announced a universal minimum tariff of 10% on all US imports, which was a major shock to the system. Though a November 2025 Executive Order later exempted certain agricultural products, including cocoa, the overall tariff structure remains a headwind.

Here's the quick math on the impact: BellRing Brands' management has communicated that tariffs will begin to impact the profit and loss (P&L) statement starting in fiscal year 2026, with an expected ongoing annualized impact to margins of approximately 120 basis points. That's a material hit to your profitability, even after mitigation efforts.

To be fair, the initial tariff risk was much higher on key ingredients like cocoa, which is essential for chocolate-flavored products. Before the exemption, tariffs on cocoa beans from major suppliers like Ivory Coast and Ghana were set at 15% and 10-15%, respectively. This initial threat forced a supply chain re-evaluation, a necessary, but costly, exercise.

Government-backed incentives for domestic manufacturing could shift supply chain strategy

The current administration's 'Made in America' agenda is a clear opportunity to offset some of those tariff costs by reshoring (bringing manufacturing back to the US) or expanding domestic production. The U.S. Small Business Administration (SBA) launched its 'Made in America Manufacturing Initiative' in early 2025 to encourage this shift. This policy provides concrete financial incentives that could be very relevant to BellRing Brands' capital expenditure plans, which were approximately $9 million for fiscal year 2025.

The incentives are structured to make domestic expansion more financially appealing:

• Proposed reduction of the corporate tax rate from 21% to 15% for US-based manufacturers.
• Doubling of SBA loan limits for small manufacturers from $5 million to $10 million.
• Federal and state grants for facility modernization, like California's $10 million Food Production Investment Program.

BellRing Brands should be aggressively exploring these programs as part of its long-term strategy to secure its supply chain and reduce exposure to international trade volatility.

Shifting US trade policies impacting international market access for their products

The same protectionist policies creating domestic manufacturing incentives also create hurdles for international market access. While BellRing Brands is primarily a US-focused business, the retaliatory trade measures from other economic blocs, like the European Union (EU), can complicate any future global expansion plans. For example, the EU responded to US tariffs by imposing retaliatory taxes on US food and beverage imports, targeting a total of €26 billion (or approximately $28.31 billion) worth of US goods.

Still, the government does offer some support for export. The SBA's State Trade Expansion Program (STEP) grant, for instance, provides awards ranging from $5,000 to $15,000 to help small manufacturers cover costs like trade show participation and export training. While these amounts are small relative to BellRing Brands' fiscal year 2025 net sales of $2.32 billion, they represent a commitment to supporting US exports, which is a political signal that international growth remains a priority.

Here's a look at the core political risks and opportunities for BellRing Brands:

BellRing Brands, Inc. (BRBR) - PESTLE Analysis: Economic factors

Persistent inflationary pressures on key inputs, especially packaging and whey protein concentrate.

BellRing Brands, Inc. faced significant cost headwinds throughout fiscal year 2025, primarily driven by persistent inflation in raw materials. The most critical pressure point was the cost of whey protein, a core ingredient for both the Premier Protein and Dymatize brands, which remained elevated and contributed to margin compression.

The company's adjusted gross profit margin for the fourth quarter of 2025 declined sharply by 620 basis points, dropping to 29.7% from 35.9% in the prior year period. This decrease was directly attributed to mid-single-digit input cost inflation, increased promotional activity, and one-time packaging redesign costs. While the company's full fiscal year 2025 Adjusted EBITDA reached a strong $481.6 million, the margin of 20.8% reflects the delicate balance of managing these rising costs while maintaining competitive pricing.

Here's the quick math on the margin shift:

• Q4 2025 Adjusted Gross Margin: 29.7%
• Q4 2024 Adjusted Gross Margin: 35.9%
• Margin Headwind: 620 basis points

Strong US dollar making international sales less competitive, despite projected volume growth.

While the strength of the US dollar generally creates a headwind for US exporters by making their products more expensive abroad, BellRing Brands' international sales demonstrated robust volume growth in fiscal 2025, particularly for the Dymatize brand. International markets accounted for 11.9% of the company's total net sales of $2,316.6 million for the year.

The Dymatize segment saw a 13% increase in net sales, fueled by a substantial 23% higher volume, largely driven by international performance. This volume surge was partially due to a pull-forward of sales ahead of a planned price increase in late Q1 of fiscal 2026. Still, the company must manage currency fluctuations and tariff-related costs, which are expected to have an unfavorable impact of 80 basis points on gross margins in fiscal 2026, net of mitigation efforts.

Consumer spending remains resilient in the premium, convenience-focused protein category.

Consumer spending in the convenient nutrition category remains exceptionally resilient, insulating BellRing Brands from broader economic softness to a degree. The ready-to-drink (RTD) shake market is one of the fastest-growing categories in consumer packaged goods, driven by health and wellness trends, functional beverage preferences, and the increasing use of GLP-1 weight-loss medications.

Premier Protein's RTD shake dollar consumption grew by over 20% in the fourth quarter of 2025, significantly outpacing revenue growth. The brand's strong performance is built on a household penetration rate of approximately 54%, which suggests a long runway for growth compared to more mature consumer packaged goods (CPG) categories that often sit at 80% to 90% penetration. That's a massive untapped market. Premier Protein net sales climbed 16.8% in fiscal 2025, with volume growth of 14.6%.

Rising interest rates increase the cost of capital for potential acquisitions or capacity expansion.

The elevated interest rate environment has directly impacted the company's financing costs. BellRing Brands' net interest expense increased by $10.1 million in fiscal year 2025 compared to the prior year, primarily due to higher outstanding borrowings under its revolving credit facility. This resulted in the weighted-average interest rate on total outstanding debt rising to 7.1% for the year ended September 30, 2025, up from 7.0% in the prior year.

While the company has a strong balance sheet with a net leverage ratio of 2.1 times at the end of fiscal 2025, the higher cost of capital makes large-scale strategic moves more expensive. The company's capital allocation strategy prioritizes share repurchases, with 9.0 million shares bought back for $472.5 million in fiscal 2025, and M&A remains a 'longer-term priority.' Capital expenditures were modest at approximately $9 million for fiscal 2025, focusing on incremental improvements rather than large capacity expansions, which is a smart, asset-light approach given the current rate environment.

BellRing Brands, Inc. (BRBR) - PESTLE Analysis: Social factors

You're seeing the convenient nutrition category explode, and BellRing Brands, Inc. is right in the middle of that social shift. The core takeaway here is that consumer demand for 'better-for-you' products is driving massive volume growth, but it's also creating intense cost pressure due to the demand for cleaner, more transparent ingredients.

BellRing Brands' total Net Sales hit $2,316.6 million in fiscal year 2025, a 16% increase, which clearly maps to these social trends. But, to be fair, those same trends are forcing the company to spend more on both ingredients and marketing to keep its edge.

Growing consumer preference for 'better-for-you' functional foods and high-protein snacks.

The biggest social factor is the mainstreaming of protein. It's no longer just a niche product for bodybuilders; it's a daily functional food (a food that offers a health benefit beyond basic nutrition). The global functional foods market is a massive opportunity, valued at approximately $310.68 billion in 2025, growing at a Compound Annual Growth Rate (CAGR) of 11.0%.

Premier Protein, the company's flagship brand, is capitalizing on this perfectly. The brand's sales increased by 17% in FY2025, driven by a 15% rise in volume. This isn't just a pricing story; it's a volume story, meaning more people are buying more shakes. Premier Protein's ready-to-drink (RTD) shake market share reached a new high of 30% in March 2025, cementing its position as the number one RTD protein shake brand.

Here's the quick math: The broader US snacks market is being propelled by protein-based solutions, with sales of protein-fortified snacks growing 16.8% year-over-year in 2024. That's a huge tailwind for BellRing Brands.

Strong demand from the aging population (55+) seeking convenient, nutritional supplements.

While Millennials and Gen Z are often the focus of wellness spending, the aging population is a critical, high-value segment. Consumers aged 55 and over are increasingly moving away from traditional meal replacement drinks toward more contemporary, protein-based products for 'healthy ageing.'

This demographic is seeking protein not just for muscle recovery but for satiety, energy support, and to mitigate sarcopenia (the age-related loss of muscle mass). BellRing Brands' convenient, ready-to-drink format is defintely ideal for this group. The protein content helps them meet the higher daily protein intake recommended for older adults to maintain muscle and strength.

Increased focus on clean label ingredients and transparency, pressuring formulation costs.

Consumers are demanding transparency, often called 'clean label,' meaning fewer artificial ingredients, less sugar, and recognizable sourcing. This trend creates a direct cost pressure on BellRing Brands.

In fiscal year 2025, the company reported higher net product costs of $72.1 million, which was a key factor in the 8% decrease in Operating Profit to $357.4 million. Raw material and manufacturing costs, particularly for protein, are rising as the company is forced to source higher-quality, cleaner ingredients. Also, legal risks underscore the need for transparency; the company had a $68.1 million provision for legal matters in Q3 2025, which, while related to a discontinued product, highlights the financial risk of product claims.

The market is pushing for alternatives, too. BellRing Brands responded by launching the Premier Protein Almondmilk Non-Dairy Protein Shakes, delivering 20g of non-dairy protein, which directly competes in the plant-based and dairy-free segments that clean-label consumers prioritize.

Social media trends rapidly influence product demand and brand loyalty in the fitness community.

Social media platforms are the new battleground for brand loyalty, especially among the fitness community. Younger consumers, who are more likely to be influenced by social media, are driving demand for high-protein lifestyles.

BellRing Brands is actively leaning into this. The company increased its advertising and promotional spending, which contributed to an increased advertising expense of $13.9 million in FY2025. This spend is aimed at capturing social-media-driven trends, like the 'little treat' culture on platforms like TikTok, which the brand leveraged with its Premier Protein Indulgence™ shakes.

The strategy is working: the CEO noted that 'Increased promotions, our media campaign and new products drove Premier Protein household penetration and market share to new all-time highs.' It's simple: you have to be where the conversation is, and for convenient nutrition, that's on social media.

• Gen Z and Millennials spend 2.8 times more on wellness than older generations.
• Social media platforms like TikTok see the highest average engagement for fitness content at 9.3%.
• BellRing Brands is stepping up brand investment to accelerate innovation and multi-channel execution.

BellRing Brands, Inc. (BRBR) - PESTLE Analysis: Technological factors

You are looking at a company that is fundamentally asset-light, so its technology strategy is not about owning production lines but about optimizing its complex, outsourced supply chain and dominating the digital shelf. The key technological challenge for BellRing Brands is mitigating the high risk of its concentrated manufacturing and retail model through superior data and systems, which is where its low capital expenditure (CapEx) budget is focused.

For fiscal year 2025, the company's CapEx was approximately $9 million, a figure that underscores its reliance on technology to drive efficiency and growth rather than building physical assets.

Automation in manufacturing and supply chain logistics to offset rising labor costs

BellRing Brands' core strategy is an asset-light model, meaning it outsources the majority of its manufacturing to third-party contract partners. This strategic choice is the company's primary defense against rising labor and capital costs in its supply chain, effectively substituting its own automation CapEx with its partners' operational investments.

However, this model creates a critical technological dependency on its partners' systems and efficiency. The risk is substantial: a single third-party contract manufacturer is responsible for 46.3% of Premier Protein ready-to-drink (RTD) shakes, with 28.0% originating from one single facility. To mitigate this single-point-of-failure risk, BellRing Brands must invest in sophisticated supply chain management (SCM) software to ensure real-time visibility and logistics optimization across its network of external producers and distributors.

• Outsource production to bypass internal automation costs.
• Requires SCM tech to manage $1,362.9 million in purchase commitments.
• Must integrate systems with third-party manufacturers for quality control.

Direct-to-consumer (DTC) e-commerce platforms require constant investment in user experience and data analytics

E-commerce is not a side project; it is the fastest-growing channel for the convenient nutrition category, projected at a compound annual growth rate (CAGR) of over 10%. BellRing Brands is capitalizing on this trend, with Premier Protein RTD shakes seeing consumption growth in the e-commerce channel of +26.6% in the fourth quarter of fiscal year 2025.

While the company relies heavily on major e-tailers like Amazon, which is one of three customers representing 74.0% of net sales, its own digital platforms (DTC) are vital for data collection and brand equity. Investment here must focus on user experience (UX) to increase conversion and data analytics (DA) to understand the high repeat purchase rate of its flagship brand, Premier Protein, which sits at 52%. Understanding the 'why' behind that loyalty is the job of data analytics technology.

New protein formulation technologies allowing for improved taste, texture, and shelf stability

Technological innovation in product formulation is a direct competitive necessity, driven by shifting consumer preferences. The market demands a 'clean label mandate,' with a staggering 81% of consumers viewing clean ingredients and label transparency as critical. This forces the company to invest in food science to remove artificial ingredients while maintaining the product's taste and shelf life, which is defintely a costly and difficult process to scale.

In fiscal year 2025, BellRing Brands accelerated its innovation pipeline, launching products that demonstrate this technological push:

• Indulgent High Protein Shakes (Jan 2025): Addresses the demand for a richer, creamier texture without compromising the high protein content.
• Almondmilk Protein Shakes (Jul 2025): A major formulation shift into the non-dairy, plant-based segment, requiring new stabilization and flavor-masking technologies.
• Creatine Monohydrate (Oct 2025): An expansion of the Dymatize line into performance-focused supplements, requiring precise, science-backed formulation.

Use of AI for demand forecasting to manage inventory and reduce stock-outs at major retailers

Given the company's reliance on a few concentrated retail partners, accurate demand forecasting and inventory management are paramount. Misalignment between production and consumer pull can lead to stock-outs (lost sales) or excess inventory (margin erosion). The company's strong fiscal year 2025 net sales growth of 16.1% was volume-driven, increasing the complexity of forecasting.

Advanced analytical tools, including machine learning (AI) models, are essential to process the massive sales data from major retailers and predict demand fluctuations caused by promotions and seasonal shifts. Here's the quick math: BellRing Brands reported a gross profit of $770.4 million in FY 2025. Even a small percentage of stock-outs across its top three retailers, which account for nearly three-quarters of its sales, would represent a multi-million-dollar loss in that gross profit. The investment in 'systems and process capabilities,' as mentioned by management, is a necessary technological expense to protect this margin and ensure product availability.

BellRing Brands, Inc. (BRBR) - PESTLE Analysis: Legal factors

Stricter Food and Drug Administration (FDA) regulations on dietary supplement labeling and ingredient verification.

The regulatory environment for dietary supplements, which includes BellRing Brands' core products like Premier Protein shakes, demands continuous vigilance. The FDA regulates these products as a distinct category under the Dietary Supplement Health and Education Act of 1994 (DSHEA), requiring manufacturers to ensure their products are not adulterated or misbranded before they hit the market. This puts the burden of proof on the company, a constant operational risk.

In fiscal year 2025, the focus on labeling precision intensified. The FDA finalized a rule in December 2024 regarding the use of the term 'healthy' as a nutrient content claim, which became effective on February 25, 2025, though compliance is phased until 2028. Beyond this, the FDA continues to prioritize enforcement on key nutritional elements.

• Scrutiny on added sugars disclosure.
• Accuracy of serving size statements.
• Verification of front-of-package nutrient claims.

BellRing Brands must maintain rigorous adherence to Current Good Manufacturing Practices (CGMP), codified in 21 CFR 111, which dictates strict controls over the supply chain and manufacturing process. Any misstep in ingredient sourcing or label control risks a costly product recall or FDA warning letter, which can defintely damage the brand's reputation.

Litigation risk related to class-action lawsuits over product claims, especially 'natural' or 'clean.'

Class-action litigation remains a material and near-term financial risk for BellRing Brands, particularly concerning product claims and ingredient transparency. The company's fiscal year 2025 results clearly map this exposure.

For the year ended September 30, 2025, BellRing Brands reported a significant $69.0 million provision for legal matters, primarily related to a settlement in principle for previously disclosed class-action litigation (the Joint Juice cases). This provision was a major factor in the 8% drop in Operating Profit to $357.4 million, despite Net Sales growing 16% to $2,316.6 million. The quick math shows legal risk directly compressing profitability.

The settlements for the Joint Juice litigation involved a proposed payment of $19.2 million for the California Federal Class Lawsuit and $70.8 million for related federal and state actions. This is a concrete example of the financial cost of defending and settling consumer claims, even without an admission of wrongdoing.

Beyond consumer claims, the company also faced a securities lawsuit investigation in 2025. This investigation focused on potential misleading statements regarding inventory levels, which contributed to the stock price falling over 18% on May 6, 2025, after a disclosure of retailer inventory reductions.

Compliance with California's Proposition 65 regarding chemical exposure warnings.

California's Proposition 65 (Prop 65) is a unique and aggressive legal challenge for all consumer product companies selling in the state, including BellRing Brands. It mandates warnings for products exposing consumers to listed chemicals known to cause cancer or reproductive harm, even at trace levels, which is a common issue for protein powders due to naturally occurring heavy metals like lead and cadmium.

Prop 65 enforcement remains extremely active. In May 2025 alone, 364 new Notices of Violation (NOVs) were issued across various product categories, with heavy metals being a top target. Civil penalties can reach up to $2,500 per day per violation, making compliance failure an expensive proposition.

The most critical update for 2025 is the amendment to the short-form warning requirements, which became effective on January 1, 2025. Companies must now include at least one chemical name in the short-form warning, a significant shift from the previous generic warning. What this estimate hides is the massive effort needed for a company with numerous SKUs to redesign packaging and update its compliance documentation.

• New short-form warning must include a chemical name (e.g., Lead).
• The revised short-form warning is now an option for food products.
• A compliance grace period extends until January 1, 2028, for products manufactured before that date.

Evolving data privacy laws (e.g., CCPA) impacting customer data collection for marketing.

As a large consumer packaged goods company with Net Sales of $2,316.6 million in fiscal 2025, BellRing Brands easily exceeds the $26,625,000 annual gross revenue threshold for compliance with the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA). These laws govern how the company collects, uses, and shares customer data for its digital marketing and direct-to-consumer channels.

The regulatory environment tightened considerably in 2025 with finalized CPRA regulations. The key action item is the mandatory recognition of the Global Privacy Control (GPC) signal as a valid opt-out request, which directly restricts cross-context behavioral advertising-the kind of targeted marketing BellRing Brands uses to drive sales of its Premier Protein and Dymatize products.

New regulations finalized in September 2025 introduce future obligations that require planning now:

• Mandatory Risk Assessments for high-risk data processing, starting January 1, 2026.
• Stricter rules on processing Sensitive Personal Information.
• Requirement to disclose categories of personal information shared with service providers and contractors in privacy policies.

The cost of compliance is less about fines and more about operational overhead: updating website consent management platforms, revising vendor agreements, and training staff. If onboarding takes 14+ days, churn risk rises, so a smooth, compliant digital experience is critical.

BellRing Brands, Inc. (BRBR) - PESTLE Analysis: Environmental factors

Here's the quick math: managing the $\mathbf{10\%}$ projected volume growth while navigating the inflationary input costs is the immediate challenge. Your next step should be to have Operations draft a 12-month supply chain resilience plan, focusing specifically on whey protein and packaging contracts, by the end of next week.

BellRing Brands, Inc.'s environmental risk is heavily concentrated in its supply chain (Scope 3 emissions) due to its asset-light business model, which relies on co-manufacturers. The company's success in meeting its environmental commitments by the end of 2025 hinges on the cooperation and data transparency of these third-party partners, which is a significant execution risk.

Pressure from investors and consumers for sustainable packaging, moving away from single-use plastics.

Consumer and shareholder demand for reduced plastic waste is driving BellRing Brands' packaging strategy. The company set a clear, near-term goal for fiscal year 2025: achieve 100% of cardboard and paper packaging made from sustainable forestry certified materials or recycled content. This target addresses the immediate pressure on fiber-based materials.

For plastics, the longer-term goal is to have 100% of all packaging be reusable, recyclable, or compostable by 2030, but the more immediate challenge lies in the plastic components of the Premier Protein ready-to-drink (RTD) shake bottles. The company has already made progress by light-weighting these plastic bottles and using bio-based plastics to reduce greenhouse gas (GHG) emissions compared to petroleum-based alternatives.

• 2025 Packaging Goal: 100% certified/recycled cardboard and paper.
• 2030 Packaging Goal: 100% reusable, recyclable, or compostable packaging.
• Plastic Target: 30% of plastic packaging from renewable or recycled materials by 2027.

Need to establish a clear roadmap for reducing Scope 1 and 2 carbon emissions across operations.

Despite being an asset-light business with relatively low direct operational emissions, BellRing Brands has defined firm, near-term targets for its Scope 1 (direct) and Scope 2 (indirect from purchased energy) emissions. The primary 2025 focus is on energy sourcing. The company is committed to transitioning to 100% renewable electricity in its direct operations by the end of fiscal year 2025. This is a defintely achievable goal given the low base of direct operations.

The long-term roadmap targets Net Zero for Scope 1 and 2 emissions by 2030. However, the real environmental impact lies in the supply chain, where almost all emissions are classified as Scope 3 (e.g., ingredients, co-manufacturing, and transportation). A 2022 Scope 3 screen identified dairy protein and transportation as the largest sources, and the company is still working to develop a full reduction roadmap for this high-impact area.

Water scarcity risks in key manufacturing regions impacting production capacity.

Water is a critical input, especially for the high-volume Premier Protein RTD shakes, but BellRing Brands' direct water usage is minimal, totaling only 1,922 m3 in fiscal year 2022 from owned operations. The risk is therefore outsourced to its co-manufacturers. Water scarcity in regions where these co-manufacturers operate could directly impact production capacity and supply chain resilience.

The company is managing this risk by including water usage questions in its ESG supplier survey to increase understanding of supply chain impacts. This is a good first step, but without publicly disclosed data on co-manufacturer water stress exposure, the financial impact of a severe drought event in a key production region remains an unquantified risk. You need to push for a heat map of co-manufacturer water risk.

Increased cost and complexity of sourcing sustainably produced raw materials like palm oil or cocoa.

The complexity of sourcing sustainable raw materials is rising, driven by new regulations like the European Union Deforestation Regulation (EUDR), which takes effect in December 2025. While BellRing Brands' highest Scope 3 emission source is dairy protein, their products (like protein bars and certain powders) likely contain palm oil or cocoa derivatives, placing them under this increasing scrutiny.

The company established a Sustainable Sourcing Framework in 2023 to formalize its practices. The cost of traceable, certified ingredients-like Roundtable on Sustainable Palm Oil (RSPO) certified palm oil-is generally higher, adding pressure to the gross margin, which was $770.4 million in fiscal year 2025. Over 70% of food brands plan to adopt custom, sustainable palm oil sourcing by 2025, indicating a tightening, more expensive market for these materials.