Coca-Cola takes full ownership of sports drink brand BODYARMOR for $5.6bn
The Coca-Cola Company has acquired full ownership of American sports performance and hydration beverages brand BODYARMOR by acquiring the 85% stake it previously didn’t own in an all-cash deal worth $5.6 billion.
The soft drinks giant had acquired a 15% stake in BODYARMOR in 2018 with a direction to buy out the remaining stake based on a pre-determined discount.
BODYARMOR will operate as a distinct business inside Coca-Cola’s North America operating unit and will retain its headquarters in New York.
Its executive leadership team, which includes comprising Mike Repole — the Co-founder and Chairman and Brent Hastie — President has agreed to continue to work to sustain the successful momentum of the brand in the market. They have agreed to implementing BODYARMOR’s plan for 2022 and developing strategies and vision for 2023 as well as beyond, said Coca-Cola.
Alfredo Rivera — president of the North America operating unit of Coca-Cola said: “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.
“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.”
BODYARMOR will continue to be sold by the US Coca-Cola bottling system.
Coca-Cola’s investment in 2018 enabled the American sports drink to access its bottling system. This is said to have helped BODYARMOR grow faster to meet the booming demand for premium sports and hydration drinks.
As part of the deal, Coca-Cola and Mike Repole will also work together on the company’s still beverage portfolio, which includes packaging, marketing, and innovating strategies across different brands.
Mike Repole said: “Ten years ago, we set out with a vision to create a better-for-you sports drink with a goal of becoming the #1 global sports drink.
“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.”