Coca-Cola investing in sports drink maker Bodyarmor
The Coca-Cola Company is showing CPG firms how to find new growth via interesting partnerships.
Coca-Cola announced it has entered into an agreement with Bodyarmor through which Coca-Cola will acquire a minority ownership stake in the sports beverege company. Through the agreement, Bodyarmor will have the opportunity to gain access to the Coca-Cola bottling system, enabling the fast-growing brand to accelerate its growth to meet explosive consumer demand for its premium line of sports performance and hydration drinks.
Financial terms of the agreement were not disclosed.
The Bodyarmor investment will be part of the Coca-Cola North America Venturing and Emerging Brands (VEB) investment portfolio. The brand will continue to operate independently with the same entrepreneurial spirit that has made it so successful under the leadership of Co-Founder and Chairman Mike Repole and his Bodyarmor management team.
“In a fast-moving and dynamic industry, and during a time of unprecedented change at Coca-Cola, we’re challenging the status quo and bringing innovative, boundary-less thinking to our strategic relationships to ensure we are offering the products consumers want,” said Coca-Cola North America President Jim Dinkins. “Bodyarmor is one of the fastest growing beverage trademarks in America and competes in exciting categories. 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.”
The fast-growing Bodyarmor trademark includes Bodyarmor Sports Drink, Bodyarmor LYTE Sports Drink and Bodyarmor SportWater. Created by co-founders Mike Repole and Lance Collins, Bodyarmor Sports Drink is available in 12 flavors. Bodyarmor contains no artificial colors or flavors and is made with potassium and other electrolytes, vitamins and coconut water. In 2017, Bodyarmor launched Bodyarmor LYTE Sports Drink, which has all the nutrients of Bodyarmor but is naturally sweetened and has only 20 calories and 3 grams of sugar per serving. In 2018, Bodyarmor SportWater – a premium water designed by athletes for athletes, with a performance pH 8+ and electrolytes for sport – became available.
Through the transaction, The Coca-Cola Company will become the second largest shareowner in Bodyarmor, behind Co-founder and Chairman Mike Repole.