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USA | Nov 21, 2021

Coca-Cola announces landmark acquisition

/ Our Today

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Bottles of Coca-Cola are seen at a Carrefour Hypermarket store in Montreuil, near Paris, France, February 5, 2018. (Photo: REUTERS/Regis Duvignau/File)

Coca-Cola has announced a landmark acquisition, which will significantly bolster the brand’s giant presence in the sports drink market.

The Atlanta-based Coco-Cola Co. acquired the remaining 85 per cent stake in BodyArmor — the No. 2 sports drink brand in the United States of America. The purchase of $5.6 billion, marks the largest acquisition in Coco‐Cola’s history.

Thomas Insights reports that Coca-Cola had bought a 15 per cent stake BodyArmor in 2018.

BodyArmor, it is being reported, will be a separate business in Coca-Cola’s North American operations and maintain its Queens, New York, headquarters, along with its executive leadership.

The brand will however receive distribution through Coca-Cola’s US bottling network.

BodyArmor will complement Powerade as Coca-Cola’s other heavy-hitter in the sports drink market, combining to rival PepsiCo’s Gatorade, which reportedly accounts for just over two-thirds of the segment in the US.

BodyArmor was launched in 2011 by Mike Repole and Lance Collins and received considerable momentum in 2013 when the late Kobe Bryant became its No. 3 shareholder.

It is branded as a premium sports drink that uses no artificial colours or flavours while delivering “superior hydration” with electrolytes, potassium, coconut water, and antioxidants.

Thomas Insights cited sports stars such as Megan Rapinoe, James Harden, and Naomi Osaka as among the company’s biggest celebrity endorsers, along with Jennifer Lopez and Carrie Underwood from the entertainment world.

The acquisition came four days after Coca-Cola shared upbeat figures in its third-quarter financial report, led by revenue that jumped 16 per cent year-over-year (14 per cent organic), case volume that was up six per cent, and operating profit that grew 26 per cent.

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