Hims & Hers announced their latest growth category, and that's meal replacement bars and shakes. Now, this is something that I think we've kind of seen coming for a little while, but it's an interesting move for Hims & Hers because it goes away from some of the

traditional pharmaceutical products the company has been selling for years. That's really what the company has built on, but I think this leans into the company's platform position. And so I want to go into exactly what we found out today. Still looking for a few more details about what this is going to look

like, what kind of products people are going to get. They give a price point of $110 per month but don't give a lot of detail about, you know, what that package would look like for $110. But we did find out some information about what kind of

the vision is, and I think it's more than just selling bars and shakes. It's really about becoming that platform for weight loss. So, going to dig into that today. My name is Travis Ham. Thanks for watching Asymmetric Investing. Please subscribe here on YouTube for all my content, and

thanks to this video sponsor, The Motley Fool. If you go to fool.com/ym, they'll give you their top 10 stocks to buy right now. So, let's look at the release to start with, and this is straight from Hims & Hers this morning: expanding

into nutrition support to fuel customers' weight loss journeys. There's a lot of details here. I'm going to go through a fair amount of it because I think it's all important in the context of why this product is being offered in the first place. But these are meal replacement

bars and shakes to support customers on their comprehensive weight loss journey. This is going to be part of individualized weight management plans designed by doctors that take every aspect of the customer's health into account. Again, this is the part where knowing more about your customers than a

traditional doctor allows him and her to move into these other adjacent verticals. So you have somebody that comes to you saying, "Hey, I would like to lose some weight. Here's my current weight, here's what I eat, here's my exercise regimen or maybe lack thereof.

What can you do for me?" A doctor is just going to prescribe you a GLP-1 and then maybe give you some information about doing a weight training plan because that's often prescribed with a GLP-1. But this is going to be a little bit more

comprehensive because Hims & Hers has that data relationship with you, that digital relationship. It's a platform company, so now instead of building that one-for-one plan and it's a doctor who isn't necessarily knowledgeable about fitness or nutrition, you're they're going to be

able to leverage plans that they've made and customize those plans for you because that's what the platform is built for. They say that it's going to prioritize every element that impacts weight, including movement, sleep, behavioral and psychological support, medication, and nutrition. So the

interesting thing, you know, as I think about the future of Hims & Hers is, is there going to be data tied to this? I wear a Garmin watch, but something like an Apple Watch would have similar data where you can track your sleep. Could that information feed into Hims & Hers?

and give the platform more information about what I need to meet my weight loss needs. It starts at $110 per month and these are meal replacement bars and shakes delivered to your door. So, not a super uncommon thing, there's a whole bunch of other competitors in this space. This is

going to be especially for those who are using GLP-1 medications. So, I think that is a big tie to GLP-1s that they have, and this is going to be a subscription that's going to include nutritional guidance, weekly meal plans, and recipes. So, again, this isn't just your doctor

prescribing a GLP-1 and handing you some pamphlets. It's actually a full meal plan, a full weight loss plan. That's the kind of customization that you can give when you're a platform company like Him and Hers. Here's a look at the bundles. Uh,

there's a bar bundle: cinnamon, peanut butter fudge, graham flavors. These are 15g of protein, so relatively high protein, and a bunch of vitamins and minerals. Again, don't know a lot of details about what those are going to look like. Same thing with shakes: 27 to 30g of protein

and 24 vitamins and minerals. And that's going to be a double chocolate and vanilla. So, pretty standard as far as what those offerings are. And I think this really rounds out a lot of the weight loss solutions that Him and Hers has been bringing to the market. Obviously, GLP-1s

have gotten the most attention, but the company has a bunch of other solutions, and this is going to be part of a full plan. So, you could go to Him and Hers and say, hey, I would like to lose some weight and get help with basically everything right now, except for the exercise side.

that's not really something that the company is currently playing in. You could see them tying to another company like a Peloton or something like that in the future, but I think this is really... but I think the real idea behind this is this is a weight loss platform, not just

a company that's selling a medication or a GLP-1. Thanks to our friends at The Motley Fool for sponsoring this video. Visit fool.com/ym for the top 10 stocks to buy right now. So I think the first question is, does this even make sense for Hims

and Hers to be selling? And I think it depends on how you look at the company. If you're just looking at this as a pharmaceutical company and that's all they do, they're essentially a digital version of CVS, then it probably doesn't make a lot of sense for them to move

into meal replacement bars or nutrition bars or anything like that. But if you're looking at this as a platform company, a company that you can go to and say, 'Hey, you know what, I would like to lose weight. Can you help me with a holistic solution?' and GLP-1s or weight loss pills

would be part of that solution, then it makes a ton of sense for them to get into these kinds of products. They're not going to be building out their own food manufacturing facilities, I'm sure they're not doing their own shipping or probably their own inventory. They're

just going to be handing that to a third party. So this is going to be an ancillary product that they're going to be adding. I think it's relatively low risk, but it leverages the information that you have about a customer to help them meet their ultimate goals. And I

think that's really the context with which I'm looking at this because I look at Hims & Hers as more of a platform company, not just a specific product company. Now the next step of this is are you able to tie in all the

information that is available from devices like your smartphone or from a smartwatch so you can get information like how much is somebody actually sleeping, what sort of food are they actually intaking, what's their resting heart rate, what's their exercise like? If you can pull in that information and

truly create a platform for weight loss, I think that's where you really take the business to the next level. That's not where we are today, but if these are building blocks and that's ultimately where Hims & Hers gets to, that's much more compelling than where we are today.

And that's that platform vision that I was talking about. So, so we'll see how this goes and how successful this product is. The weight loss business, at least at the end of the third, at least at the end of the second quarter, was on a $100 million run rate at that time and

that included a very short amount of GLP-1 sales. So this is still a relatively small business for Hims & Hers, but it could be much, much bigger than it is today. And that's because of all this entire suite of products. Not every customer has to have every product and

Hims & Hers doesn't need to advertise all of these things either because they're going to be creating a custom solution for every customer depending on what they say, what they are coming to as their goals and their needs on the Hims & Hers platform. So, so I tend to think

that this is probably a good line extension and expansion of the capabilities of the platform where that data would show up is in an increased number of subscribers, more spending per subscriber, and then a higher retention rate. The retention rate is going to be really important especially in the

weight loss segment because eventually you do want to get customers to where they lose weight but then can you help them actually maintain their weight? Maybe this is a piece of that, creating that long-term relationship with them. So interesting move from him and hers, we'll see how this plays out but I think this

is a good experiment. A lot of people that I'm reading online right now feel completely the opposite. Let me know what you think in the comment section below. Don't forget to subscribe to Asymmetric Investing. Thanks for watching everybody, see you here next time.

Hims & Hers New Growth Category Is a Huge Surprise

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Hims & Hers New Growth Category Is a Huge Surprise

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