The American drinks company is putting 5.6 billion dollars (4.8 billion euros) on the table for sports drink brand BodyArmor, the largest acquisition ever for Coca-Cola.
Strengthening the sports drinks division
Three years ago, the beverage giant already took a 15 per cent stake in BodyArmor. Through the new deal, Coca-Cola now gains complete control over the sports drink brand, reports CNBC.
Thanks to the takeover, Coca-Cola significantly strengthened its sports drink category, although Gatorade, owned by long-time rival PepsiCo, still dominates the market. Coca-Cola already had a sports drink in its own portfolio through Powerade, but this brand could never compete with Gatorade. In fact, Powerade also lost more and more ground to BodyArmor.
Coca-Cola expects BodyArmor sales to increase by about 50 per cent this year. The brand was founded ten years ago and became widely known thanks to the late NBA-star Kobe Bryant, who died in an accident last year. In 2013, the basketball legend took a 15 per cent stake in BodyArmor, making him the third-largest shareholder in the sports drink brand. His heirs would now reap around 400 million dollars (345 million euros).
The acquisition of BodyArmor is the largest in Coca-Cola’s history. The former record dates back to 2018 when the beverage giant put 5.1 billion dollars (4.4 billion euros) on the table for Costa Coffee.