David Protein CEO targets $300m revenues with revolutionary alt-fat

The American foodtech company David Protein projects revenues exceeding $300 million for 2026 following a massive expansion of its manufacturing capacity. As reported by AgFunderNews, the startup has increased the production of its flagship ingredient, EPG (esterified propoxylated glycerol), by five times to meet explosive demand. Founded by RXBAR creator Peter Rahal, David Protein focuses on a high protein-to-calorie ratio, utilizing EPG to replace traditional fats with a version that contains 92% fewer calories. This strategic growth occurs while the company navigates lawsuits from smaller competitors who claim they were unfairly cut off from the EPG supply after David Protein acquired the manufacturer, Epogee, last year.

EPG is a patented fat substitute that looks, feels, and functions like natural oil but is metabolized differently by the human body. To create this ingredient, plant-based oils like canola are split into glycerin and fatty acids, then reconnected with a food-grade link that is resistant to lipase, the enzyme responsible for breaking down fat. According to data provided by the firm, the caloric difference is significant because while traditional fat contains 9 calories per gram, EPG contains only 0.7 calories per gram. This allows the company’s flagship product, the Gold bar, to offer 28 grams of protein with only 150 calories. Unlike previous fat replacers like Olestra, EPG does not cause digestive issues because it maintains a high melting point and is made directly from fat sources.

Originally a direct-to-consumer brand, David Protein is now moving aggressively into brick-and-mortar retail. Peter Rahal confirmed that the brand is expanding nationwide through Walmart and Target during the first quarter of 2026, with a planned launch at Costco in the Texas region. The CEO noted that the current protein trend is the primary driver of this success, as consumers increasingly seek maximum protein with minimum calories. Beyond snack bars, the company is preparing to enter the ice cream category later this year. Rahal believes EPG allows for a classic dessert experience that remains very permissible due to its nutritional profile. To support this diversification and the potential sale of EPG to other CPG brands, the company has hired experts like Dr. Mitchell Culler, formerly of Kraft Heinz, to lead research and development.

The company's rapid growth has not been without conflict. In May 2025, David Protein acquired Epogee, the sole manufacturer of EPG. Following the acquisition, David Protein ceased supplying the ingredient to other firms to secure its own inventory. This led to a lawsuit filed in June 2025 by companies including OWN Your Hunger and Lighten Up Foods, who accuse Rahal’s firm of creating an artificial monopoly. Regarding the litigation, Rahal stated that the company was not obligated to supply those without long-term contracts. The reality is that the demand was eventually 150% of the previous capacity, forcing the company to prioritize its own products. While David now has enough capacity to seek new commercial partners, Rahal noted that any future supply to the plaintiffs must first be resolved through the ongoing legal process.

Despite using ingredients like sucralose, allulose, and EPG, which are often categorized as ultra-processed, David Protein maintains that consumer behavior is shifting toward nutrient density. Rahal argues that shoppers will accept processed ingredients if the product offers a clear benefit, such as high protein and low sugar. The company's marketing strategy remains focused on three pillars: highlighting protein, calories, and sugar to attract health-conscious buyers and GLP-1 drug users. According to information provided by AgFunderNews, the company is now building redundancies on supply to ensure they are in a good position for the massive growth expected in the coming months.