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Medici Brands, the company behind David Protein that just raised $250 million, wants to become a guilt-free treat empire beyond protein.

Driving the news: Best known for its protein bars, the company plans to launch a low-calorie donut store, CEO Peter Rahal tells Axios.

This would be Medici's first in-person retail location, and Rahal believes there's a gap in the market for healthier donuts.

The company this year has unveiled a protein ice cream, a low-calorie candy brand, and a salty snacks brand dubbed Rowdy.

What they're saying: "As we get bigger, our portfolio needs to be crunchier, saltier, and lower price," he says. "You need diversified revenue that's predictable, that's de-risked from commodity risk, and you need an all-weather portfolio to go public."

By the numbers: Launched in September 2024, Medici posted some $10 million of revenue in its first four months; $120 million in 2025; and is expecting to end this year at $320 million, showing 166.7% growth.

It's also net income profitable, per Rahal, who says the company should end the year with net-income margin of about 6%.

Rahal sold his last company, Rxbar, to Kellogg for $600 million in 2017.

Between the lines: These broader diversification plans had long been in the works, Rahal says, but it should also help with supply chain scares and inflation worries.

Medici felt the strain over the summer when whey protein prices surged amid booming demand, and the company was nearly unable to produce enough bars due to the shortage. 

The big picture: After protein, Rahal sees early signs that consumers are now turning part of their energy to fun food trends.

What we're watching: The secret ingredient behind Medici's low-calorie products is esterified propoxylated glycerol, an alternative fat produced by Epogee, a business it acquired in 2025.

That ingredient has been at the center of an antitrust lawsuit, with a trio of small businesses alleging that Medici cut off their access to the fat replacement. One litigant settled the claim with David recently, while two others have maintained their suits.

The New York Judge in charge of the case dismissed earlier versions of the suit.

Follow the money: Medici raised $250 million at a $2.25 billion post-money valuation last week, and Epogee shareholders sold some $120 million in the offering in addition to the $250 million the company gathered, which has not been previously reported.

while two others are still maintaining their suits

David Protein parent to open donut shop as it goes after fun food

Medici Brands, which just raised $250 million, wants to become a guilt-free treat empire beyond protein.

Animated illustration of a drink can and a snack bar with spinning gears on the labels.

Medici Brands, the company behind David Protein that just raised $250 million, wants to become a guilt-free treat empire beyond protein.Driving the news: Best known for its protein bars, the company plans to launch a low-calorie donut store, CEO Peter Rahal tells Axios.

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David Protein parent to open donut shop as it goes after fun food

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