Coca-Cola has acquired sports-drink maker BodyArmor, representing its largest brand acquisition.
BodyArmor drinks have some celebrity partners, including Jennifer Lopez and Carrie Underwood, in its roster of partners. The late Kobe Bryant was an early investor.
Coca-Cola owns Powerade, which is designed to compete directly with Gatorade. In 2018, Coca-Cola acquired a 15 percent stake in BodyArmor with a path to full ownership, based on a pre-determined discount. Coca-Cola is paying $5.6 billion in cash for the remaining 85 percent of the company.
BodyArmor will be managed as a separate business within Coca-Cola’s NA operating unit and will continue to be based in New York. Under a separate consulting and transition-services agreement, the executive leadership team, including Co-founder and Chairman Mike Repole and President Brent Hastie, have agreed to continue to work for the company to maintain the market momentum. Both are committed to executing BodyArmor’s 2022 plan and working on vision and strategy for 2023 and the future.
BodyArmor will continue to be distributed by the U.S. Coca-Cola bottling system. When Coca-Cola made its initial investment in 2018, BodyArmor gained access to the Coca-Cola system, which enabled it to accelerate growth. BodyArmor is currently the “No. 2 sports drink in the category in measured retail channels, growing at about 50 percent to drive more than $1.4 billion in retail sales,” said BodyArmor.
“BodyArmor has been a great addition to the system lineup over the last three years, and the company has driven continuous innovation in hydration and health-and-wellness products,” said Alfredo Rivera, president, North America operating unit, The Coca-Cola Company. “We’re excited to bring BodyArmor into The Coca-Cola Company and work with Mike Repole and his leadership team on the next stage of growth.”
“Ten years ago, we set out with a vision to create a better-for-you sports drink with a goal of becoming the No. 1 global sports drink,” Repole said. “Our talented leadership team under Brent Hastie, our 400 dedicated employees and incredible Coca-Cola bottling partners have helped us build this remarkable brand. If it wasn’t for Kobe Bryant’s vision and belief, BodyArmor would not have been able to achieve the success we had. I couldn’t be more excited to become part of the Coca-Cola family and set our sights on the future.”
As part of the agreement, Coca-Cola and Repole will also collaborate on the company’s still beverages portfolio, including marketing, packaging and innovation strategies across multiple brands.
Coca-Cola’s acquisition of BodyArmor will be funded through cash on hand and is consistent with an M&A and capital allocation framework that focuses on accelerating growth, expanding capabilities and driving efficiencies.
Photo courtesy BodyArmor
