COCA-COLA CLOSES LARGEST-EVER PURCHASE TO COMPETE IN CANNED SPORTS DRINK MARKET
The multinational Coca-Cola has announced that it has taken full control of the sports drinks manufacturer Bodyarmor for a cost of around 5,600 million dollars. The Bodyarmor deal is Coca – Cola’s largest acquisition, surpassing its $5.1 billion purchase of Costa Coffee in 2018.
Back in 2018, the North American beverage giant bought a 15% stake in Bodyarmor making it its second largest shareholder and called it %22one of the fastest growing commercial beverage brands in the United States.%22 At the time, basketball legend Kobe Bryant was its third largest shareholder after investing in Bodyarmor in 2013, just two years after it was founded.
The recent deal to buy the remaining 85% stake in Bodyarmor is not entirely unexpected, as it was announced a few months ago. Taking over all the shares of Bodyarmor will help Coca-Cola gain market share in the sports drink category.
While PepsiCo’s Gatorade is by far the market leader, with a market share of about 70%, Bodyarmor presents itself as a healthier sports drink, which has overtaken Coca-Cola’s Powerade to become the number two in the category.
According to Coca-Cola, the sports drink brand’s retail sales are expected to exceed $1.4 billion this year, an increase of 50%.
As part of the deal, Bodyarmor co-founder Mike Repole will collaborate on the company’s non-carbonated beverage portfolio. Specifically, Repole says he will share ideas on how to improve Coca-Cola’s marketing, packaging and innovation.
The agreement aims to accelerate sales in Coca-Cola’s hydration, sports and coffee segment. Sales of BodyArmor have increased rapidly after the drink was created in 2011 and it has had the backing and marketing power of professional athletes, such as basketball player James Harden and golfer Dustin Johnson.
