Is EPG the ingredient food giants have been waiting for?

Why Big Food Is Quietly Looking to Reformulate Calories—Without Changing Taste

For decades, large food conglomerates have struggled to align consumer demands for better health with their own operational dependence on taste, texture, and mass affordability. Reducing calories—especially from fat—has long been an elusive goal. Attempts to substitute traditional fats with synthetic or fiber-based alternatives often triggered backlash, either due to taste degradation or digestive discomfort.

In 2025, however, a new class of functional ingredients is quietly changing the equation. EPG (esterified propoxylated glycerol), a plant-based fat alternative developed by Epogee, has emerged as a stealth weapon for reformulating processed foods without compromising sensory quality. With rising regulatory pressure from governments and growing consumer literacy around calorie density, analysts suggest that EPG may be the first fat substitute that large consumer packaged goods (CPG) companies can scale—without sacrificing consumer satisfaction or brand trust.

Unlike its predecessors, EPG is being adopted not through loud “fat-free” rebrands but through quiet, structural reformulation. And this silence may be its biggest strength.

What Is EPG and Why Does It Align With Big Food’s Priorities?

EPG is made by modifying plant-derived glycerin to create a molecule that functions like fat in food but is poorly absorbed by the body. As a result, it contributes just 0.7 kcal/gram compared to the 9 kcal/gram typical of conventional fats. It is FDA GRAS-certified, does not interfere with fat-soluble vitamin absorption, and causes no known gastrointestinal side effects at standard serving levels.

Critically, EPG maintains fat-like functionality in recipes—delivering mouthfeel, moisture, and flavor release that closely mimic butter, oil, and shortening. This allows it to be used in baked goods, frozen desserts, sauces, spreads, and coatings without visible formulation changes.

For large food manufacturers, EPG solves multiple problems at once: it lowers per-serving calories, helps products comply with front-of-pack labeling rules (like the U.K.’s HFSS or Mexico’s NOM-051), and avoids the consumer backlash that plagued earlier “diet” ingredients like Olestra.

The Stealth Strategy: Why Food Giants Avoid Fat-Free Labels

Major CPG brands have learned from experience: consumers don’t want food that looks like a compromise. The low-fat product wave of the 1990s fell out of favor because brands overcorrected, delivering bland or artificial-tasting products that still underperformed nutritionally due to added sugars or starches.

In contrast, EPG enables a stealth health strategy. Because it is virtually indistinguishable from real fat, it allows for calorie reduction without forcing a change in brand identity, flavor profile, or texture. This is particularly useful for brands with entrenched flagship SKUs, where overt reformulation risks alienating loyal customers.

Retail analysts now observe that many reformulations using EPG do not advertise the ingredient on front-facing marketing materials. Instead, companies opt to highlight macro changes—“25% fewer calories” or “same taste, now lighter”—without disclosing ingredient swaps unless required. This model has enabled faster retail acceptance and reduced friction in consumer adoption.

Regulatory Pressure Is Accelerating the Shift

Regulatory frameworks across multiple geographies are intensifying scrutiny of calorie, sugar, and saturated fat content. In the United Kingdom, HFSS laws restrict marketing and in-store placement of products deemed high in fat, sugar, or salt. Mexico mandates black-box warning labels for foods exceeding specified thresholds. In the United States, the FDA is progressing toward front-of-pack labeling, and school meal programs are tightening macronutrient limits.

For global food companies, this means reformulation is no longer optional—it is existential. Products that exceed these thresholds risk loss of shelf space, advertising opportunities, and regulatory compliance.

EPG provides a compliant pathway for food makers to reengineer existing lines without a full brand overhaul. Reformulated foods using EPG can fall under calorie or fat-per-serving thresholds, which keeps them eligible for placement, promotion, and procurement. Industry insiders note that private-label manufacturers are already trialing EPG to maintain school lunch eligibility while improving taste profiles.

Who Is Already Using EPG—and Why This Matters to Multinationals

While Epogee does not disclose all commercial clients, products using EPG are already on shelves at major U.S. retailers. These include functional bars, keto-friendly frozen treats, and high-protein baked goods. In May 2025, David, a high-growth performance food startup, acquired Epogee to secure supply chain control over EPG. But David is only one of many adopters.

What matters more is the template David provides: a formulation-first strategy, vertically integrated supply of EPG, and rapid retail expansion without relying on sugar or fillers. This structure is being watched closely by larger incumbents, many of whom are now exploring contract manufacturing trials or limited-market launches using EPG-based formulations.

Retail buyers at major supermarkets and convenience store chains have reportedly responded positively to EPG-containing items, citing taste parity and improved macronutrient disclosures as key selling points. For multinational food firms, this validates that calorie-reduction reformulation can now be executed without consumer resistance.

Could EPG Unlock M&A and Ingredient Licensing Deals?

Industry watchers believe that if EPG proves scalable across multiple food platforms, it could become a strategic acquisition target or spark broader licensing interest. While David’s ownership of Epogee currently gives it a vertical advantage, food conglomerates have historically moved to acquire ingredient innovation once consumer traction is proven.

Additionally, some manufacturers may prefer non-exclusive licensing models that allow EPG to be embedded into existing R&D stacks without investing in molecule development from scratch. This approach aligns with how Cargill, DSM, and Ingredion have historically commercialized novel ingredients for mass-market use.

The question is no longer whether EPG works—it is how widely it can be adopted without disrupting production lines, cost structures, or consumer behavior. Early pilots suggest that the integration cost is relatively low, especially in premium SKUs and private-label reformulation efforts.

The Future of Fat: Quietly Engineered, Not Loudly Marketed

If the 1990s were the era of “fat-free” hype and backlash, 2025 may well be remembered as the year of silent reformulation. Rather than launching new brands around fat substitutes, companies are now more likely to adjust legacy products using high-performance ingredients like EPG—and tell no one.

This stealth model reflects a deep change in how food innovation is marketed. Brands no longer need to champion ingredients themselves; they champion outcomes—fewer calories, better macros, same great taste.

For global CPG firms managing hundreds of SKUs and billions in shelf-share, EPG represents not just an ingredient—but a strategic lever to stay ahead of both consumer expectations and government mandates.