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| 27 May 2024, Monday |

Coca-Cola to fully acquire Gatorade rival BodyArmor for $5.6 bln

Coca-Cola Co announced on Monday that it would purchase the remaining stake in BodyArmor that it did not already own for $5.6 billion, as the soda maker expands its sports drink portfolio to compete with market leader PepsiCo Inc’s Gatorade.

The transaction represents a strategic shift for the world’s largest beverage company, which has spent the last year offloading or discontinuing brands, including its own energy drink brand, in order to focus on Coca-Cola sodas. find out more

The deal, which values BodyArmor at approximately $6.59 billion, is Coca-largest Cola’s for a single brand; it comes about three years after the company purchased British coffee chain Costa for $5.1 billion.

BodyArmor, which markets itself as an electrolyte-rich energy recovery drink for athletes, has $1.4 billion in annual retail sales and a 50% growth rate, according to Coca-Cola. “It provides Coke with a strong product portfolio in the rapidly growing sports hydration category. It’s a nice premium brand with potential for growth over time “According to Edward Jones analyst John Boylan, BodyArmor gained popularity after basketball star Kobe Bryant endorsed it in 2013.

Boylan, on the other hand, believes the massive deal will only “give Coke a solid No. 2 position in an attractive category.”

Coca-Cola, which first bought a 15% stake in BodyArmor in 2018, said the brand’s co-founder Mike Repole will stay on after the deal to advise on product marketing and packaging.

    Source:
  • Reuters