If you've purchased whey protein recently, you've probably noticed that prices have increased considerably.
We've written about the reasons for this in previous articles, so we won't go through all of that again.
What we haven't really discussed is what happens behind the scenes when the cost of our main ingredient increases so dramatically.
Over the six months alone the cost of the premium New Zealand whey protein we use has increased by approximately 44%.
That's an enormous increase for a product where the whey itself makes up the vast majority of the ingredients.
It has left us with some difficult decisions to make.
Not All Whey Protein Is the Same
One thing we've learned over the years is that two whey protein powders can look almost identical on a nutritional panel but behave quite differently when mixed.
There are numerous grades of whey protein concentrate available, including different manufacturing and processing specifications.
Our regular NZ Whey uses premium New Zealand Fonterra whey protein concentrate. It's instantised, which means it has been processed with a small amount of lecithin to improve how easily the powder disperses in liquid.
It's also naturally creamy, pleasant tasting, and works particularly well with our flavour formulations.
We've been using this type of whey for years, and many of our regular customers have come to expect its particular taste, texture and mixability.
But there are other grades available.
Some are considerably cheaper. They can have similar protein levels and amino acid profiles, but their physical properties aren't necessarily the same.
For example, non-instantised whey can be more difficult to mix, particularly when using a shaker or spoon.
Other grades can have differences in flavour, mouthfeel or how they behave in a finished protein shake.
That doesn't necessarily make them bad products. They're simply different.
Could We Use a Cheaper Whey?
This is a question we've spent considerable time investigating recently.
With the extraordinary increases in whey prices, it would be irresponsible not to explore alternatives.
We've been experimenting with other New Zealand whey grades, including non-instantised whey protein concentrates available at substantially lower prices.
We've also experimented with blending different grades together to see whether we could reduce costs without noticeably affecting the finished product.
Some of these experiments have been promising. Others have been disappointing.
In particular, we've found that introducing a substantial proportion of certain lower-cost grades changes the characteristics that make our regular whey so appealing.
Mixability can suffer, the texture changes, and the overall drinking experience isn't quite the same.
These differences aren't always obvious from looking at a nutritional panel.
You might still be getting a similar amount of protein, but the finished shake can be noticeably different.
And that's the problem.
We've Decided to Keep Our Premium NZ Whey
After considerable experimentation, we've decided to maintain the premium grade of whey used in our regular NZ Whey product.
This isn't the cheapest option for us, particularly in the current market.
But we've spent years developing our products and flavour range around this particular ingredient.
Our customers know what to expect when they buy it. You can look at the reviews and search online.
Changing to something cheaper simply to keep the retail price down might make sense financially in the short term, but we're not convinced it's the right decision.
We don't want someone who's been buying the same protein powder for years to suddenly find that it tastes different, doesn't mix as well, or has a different texture because we've quietly changed the underlying whey.
If we're going to make a significant change to a product, we'd rather be upfront about it.
But We Still Want Affordable Alternatives
There's another side to this.
We recognise that not everyone wants to spend a premium price on protein powder, particularly with the cost of living being what it is.
And there's absolutely nothing wrong with choosing a less expensive protein.
For some customers, protein content and price are the main considerations. They're happy to use a blender, put up with a little more mixing, or accept a different texture if it means saving money.
Others place greater importance on taste, consistency and convenience.
Neither approach is wrong.
We have cheaper options. At the time of writing this we are stocking cheaper USA Whey and some Value Protein.
These will vary depending on what's a good deal at the time but at least we have all price points covered.
What About the Price?
Unfortunately, maintaining the whey we currently use means we have to deal with its much higher cost.
We're doing what we can to keep our products competitively priced, but there are limits to how much of these increases we can absorb.
We also don't know what whey prices will do next.
They may come down, remain elevated, or increase further. We're certainly hoping for some relief, but we can't base our business decisions on an assumption that prices will fall.
What we can do is continue to review our pricing and look for better purchasing opportunities as the market changes.
And if ingredient costs eventually come down, we'll have an opportunity to reassess our retail prices too.
Our Approach Going Forward
At the end of the day, we've made a fairly straightforward decision.
Our premium NZ Whey will remain our premium NZ Whey.
We're not going to quietly downgrade the ingredient to save money.
Some customers will prefer the premium product. Others may be perfectly happy with a lower-cost option.
We think that's a better outcome for everyone.
And in the meantime, we'll keep doing what we've always done: experimenting, developing and trying to make the best products we reasonably can.