David Bar Epogee Acquisition: A Game-Changer in Functional Food or a Monopoly in the Making?

The David Bar Epogee Acquisition has sent ripples through the functional food and nutrition industry. For $75 million, David Bar acquired Epogee—the company behind the patented fat-replacement ingredient EPG—marking a major strategic move into clean-label, low-calorie product innovation. While the acquisition strengthens David Bar’s position in the functional and health-forward food space, it has also sparked widespread controversy and triggered legal challenges, raising questions about the future of EPG and the ethics behind the deal.

What Is EPG and Why Is It So Important?

EPG is a modified plant-based oil derived from rapeseed that reduces calories from fat by up to 92%—without compromising the taste or texture of traditional fats. Unlike chemically altered oils, EPG is physically modified, making it a standout ingredient in the health and wellness sector. It delivers the creamy mouthfeel of fat and is widely used in low-calorie baked goods, functional RTDs (ready-to-drink beverages), and protein bars.

Its unique formulation and functionality have made EPG one of the most sought-after fat-replacers in the industry, catering to the growing demand for calorie-conscious, clean-label products.

Why Did David Bar Acquire Epogee?

David Bar had already been a major customer of Epogee—reportedly accounting for 90% of Epogee's revenue prior to the acquisition. By purchasing the company outright, David Bar aimed to secure its supply chain, reduce dependency on third-party suppliers, and gain full control over a critical ingredient in its product portfolio.

The acquisition is also seen as a strategic move to expand David Bar’s influence in the functional food and health-forward CPG markets, leveraging Epogee’s proprietary technology to further differentiate itself.

Industry Backlash and Legal Controversy

Despite the strategic advantages, the acquisition has sparked industry backlash and legal scrutiny. On May 29, 2025—just after the acquisition was finalized—Epogee informed clients it would no longer accept new orders and was winding down current accounts. This came after Epogee had previously reported EPG shortages starting in March 2025, promising a return to normal supply by May.

Now, three food companies—OWN Your Hunger, Lighten Up Foods, and Defiant Foods—have filed a lawsuit in the U.S. District Court for the Southern District of New York. The complaint alleges "secretive and collusive conduct" by David Bar and Epogee to monopolize the EPG market.

Allegations in the Lawsuit

• Artificial monopoly: Plaintiffs claim David Bar has stockpiled two years' worth of EPG supply.
• Deceptive communication: Epogee allegedly misled clients about product availability.
• Operational disruption: Small businesses relying on EPG were suddenly cut off, causing major production setbacks.

Implications for the Functional Food Industry

The David Bar Epogee acquisition highlights a critical issue in the evolving world of functional foods: the tension between innovation and market fairness. While securing proprietary ingredients can fuel brand growth and differentiation, it can also create market access barriers for smaller players.

This case could set a precedent for how acquisitions in the ingredient supply chain are regulated, especially when a single company controls a high-demand component like EPG.

What’s Next for David Bar and Epogee?

The lawsuit and industry backlash could impact how David Bar rolls out future products and how it manages its newly acquired ingredient. Analysts and stakeholders are watching closely to see whether the court will rule in favor of the plaintiffs—or uphold David Bar’s right to control its supply chain.

Either way, the case underscores the importance of transparent supply practices and the ethical considerations that come with dominating a niche ingredient space.

Conclusion: Innovation or Overreach?

The David Bar Epogee acquisition could prove to be a brilliant move for growth and innovation in the functional food industry—or a cautionary tale about monopolistic behavior in ingredient sourcing. With a lawsuit underway and industry eyes watching, the outcome of this acquisition will likely shape future policies, partnerships, and purchasing decisions across the sector.

Stay tuned as this developing story continues to unfold and influence the future of clean-label, calorie-conscious food innovation.

Recent Supplement Industry News