Reportedly, Coca-Cola Co. (KO) is now buying a remaining stake in BodyArmor that it did not already own for $5.6 billion, valuing BodyArmor at about $6.59 billion. The beverage giant is gearing up its sports drink portfolio to take on market leader, PepsiCo Inc.’s Gatorade. The deal signifies a shift in strategy for Coca-Cola after it spent the last year discontinuing or offloading brands, including its energy-drink brand, and focussed on sodas. BodyArmor which deals in electrolyte-filled energy recovery drinks for athletes has a 50% growth rate, and currently makes about $1.4 billion in annual retail sales.
Coca-Cola stated. “It gives Coke a strong stable of products in the rapidly growing sports hydration category. It’s a nice premium brand that has opportunity for expansion over time.”
In 2018, Coca-Cola had first acquired a 15% stake in BodyArmor. Coca-Cola informed that the brand’s co-founder Mike Repole will stick around after the deal to advise on the marketing and packaging of products. At the time Coca-Cola took its initial stake, BodyArmor was valued at $2 billion, as per reports.
Dow 30 Component, The Coca-Cola Company (KO), is the largest total beverage company in the world. It offers 500 plus brands in over 200 countries and is committed to reducing sugar in its drinks and providing new and diverse drinks to people everywhere. To learn more about The Coca-Cola Company (KO) and to continue to track its progress please visit the Vista Partners Coca-Cola Company Coverage Page.
