Coca-Cola Acquires Minority Stake In BODYARMOR
Sports performance drink company BODYARMOR has entered into a deal with Coca-Cola that gives the publicly traded company a minority ownership stake in BODYARMOR, with defined terms that would allow Coca-Cola to increase its ownership stake in the future. It is an interesting move for Coca-Cola, which already manufactures and markets Powerade, considered as a competitor of both Gatorade and BODYARMOR.
The Coca-Cola Company will become the 2nd largest shareholder in BODYARMOR, behind its Chairman Mike Repole.
It is also a significant minority interest, as The Coca-Cola Company will become the 2nd largest shareowner in BODYARMOR behind BODYARMOR co-founder and Chairman Mike Repole. However, the BODYARMOR brand will continue to operate independently from Coca-Cola for the time being.
“BODYARMOR is one of the fastest growing beverage trademarks in America and competes in exciting categories,” says Coca-Cola North American President Jim Dinkings. “I have no doubt it will prove to be a strong offering to our system alongside our already powerful hydration portfolio as we accelerate our position as a total beverage company.”
BODYARMOR currently sells 12 flavors of its Sports Drink, LYTE Sports Drink and SportWater. It has endorsement deals in place with notable athletes such as James Harden (it created a limited-edition bottle to commemorate Harden’s MVP win in 2018), Mike Trout, Dustin Johnson, Andrew Luck and Skylar Diggins-Smith, as well as an equity deal with Kobe Bryant, who was the 3rd shareholder in the company.
In October 2017, BODYARMOR announced a multi-year deal with the Ultimate Fighting Championship (UFC). Its strategy since creation was to associate itself with sport, but distinguish the brand from Gatorade and Powerade by being a “premium” option.
Financial terms of Coca-Cola’s investment in BODYARMOR were not disclosed.