Coca-Cola Co. is making a multibillion-dollar guess on the sports activities drink model BodyArmor as half of a bigger push to diversify its choices.
Coke mentioned Monday it paid US$5.6 billion for the remaining 85% of BodyArmor. Coke initially purchased a 15% stake within the BodyArmor in 2018.
Coke confirmed that BodyArmor is its largest-ever model acquisition. The deal is a part of a multiyear effort at Coke to maneuver past sugary delicate drinks and into different classes like juices, enhanced waters and sports activities drinks. Coke purchased the Fairlife milk model in 2020 and Costa espresso in 2019.
BodyArmor was based a decade in the past by Lance Collins, the founding father of Fuze Beverage, and Mike Repole, who began the Smartwater and Vitaminwater manufacturers. Coke additionally purchased Fuze and Repole’s firm — Power Manufacturers — in 2007.
Basketball star Kobe Bryant was an early investor in BodyArmor, changing into its third-largest shareholder and a member of its board in 2013.
In a press release Monday, Repole credited Bryant — who died in a 2020 helicopter crash — with the model’s progress. Coke introduced the acquisition at 8:24 a.m. EDT Monday to honor Bryant, who wore the jersey numbers eight and 24 in his NBA profession.
Bryant’s property stands to achieve $400 million from the BodyArmor sale, The Wall Road Journal reported Monday, citing nameless sources. Coke and BodyArmor wouldn’t verify that quantity.
With Coke’s 2018 funding, BodyArmor gained entry to the corporate’s sprawling distribution community and gross sales skyrocketed.
BodyArmor had the third-highest market share within the U.S. sports activities drink class in 2020, with 9.3%, in accordance with Euromonitor. PepsiCo’s Gatorade, the market chief, managed 68%, whereas Coke’s Powerade model was second with 14%.
Atlanta-based Coke mentioned it would handle the BodyArmor model as a separate enterprise. It is going to proceed to be primarily based in New York.
