Medici Brands hits $2.25bn valuation with protein and EPG

Medici Brands has secured a $250 million Series B funding round, valuing the company at $2.25 billion. The round was co-led by Greenoaks and Valor Equity Partners, with participation from CEO Peter Rahal, ICONIQ, and Imaginary Ventures.

Neil Shah, a partner at Greenoaks, stated the brand's rapid rise. "Two years ago, David Protein showed customers they no longer had to choose between great macros and great taste, and it became one of the fastest-growing CPG brands in America," he said.

Funding for new product lines

CEO Peter Rahal told AgFunderNews he expects the David Protein brand to become profitable in 2026. The new capital will be used for new product lines, brands, and innovation. The company is on track to generate over $300 million in revenue this year.

David Protein's core proposition is a high protein-to-calorie ratio. Its Gold bar contains 28 grams of protein for just 150 calories. This is achieved using low- and no-calorie sweeteners alongside EPG, a patented fat replacer.

The EPG ingredient advantage

EPG, or esterified propoxylated glycerol, is central to Medici's products. It looks and functions like traditional fat but contains far fewer calories. The ingredient is metabolized differently by the body.

Rahal argues that consumers embrace such ingredients for clear benefits. "We want to improve public health by making those foods smarter: lower calories, less sugar, no compromise on taste or experience," he said.

Retail expansion and new brands

Starting direct-to-consumer, David Protein is now in 35,000 retail stores including Walmart, Target, and Costco. It expanded into frozen desserts in July and ready-to-drink shakes in August.

The new HallPass candy brand also uses EPG. Rahal described it as appealing to current candy consumers and those who have left the category. HallPass will launch primarily in Walmart, with additional rollouts in New York City and Los Angeles. A second new brand, Rowdy, will focus on chips.

Ongoing EPG litigation

The company is involved in ongoing litigation over access to EPG. After acquiring EPG manufacturer Epogee last May, Medici cut off supply to other companies. Three former customers sued, alleging anticompetitive behavior.

One plaintiff, Lighten Up Foods, recently settled. Founder Blake Sanburg announced on TikTok that he secured a supply agreement after a meeting with Rahal. The other two plaintiffs, OWN Your Hunger and Defiant Chocolate, continue the lawsuit.

OWN Your Hunger founder Ruz Safai told AgFunderNews the settlement does not mean EPG is freely available. "As far as we are aware, EPG is still not available to anyone else," Safai said. Defiant Chocolate cofounder McKay Fugal added they have received no response to settlement efforts.

The legal battle shows how control of a specialized ingredient can impact the market. Several other former Epogee customers provided sworn statements about the harm caused by losing access to EPG.