Coca-Cola acquires Bodyarmor for $5.6 billion to fight Gatorade

The Business Terminal

Coca-Cola, the global beverage giant has recently made an announcement of its successful acquisition of Bodyarmor, a business and sales-wise super fast-grown sports drink brand in the past decade. The acquisition deal details that Coke bought Bodyarmor’s controlling stake for a whopping $5.6 billion U.S. dollars.

It’s notable that this acquisition by Coke is one of its biggest in comparison with others to date.

One of the very main reasons behind the acquisition of Bodyarmor by Coke seems to be its ambition to grow and capture a larger market share in the sports drink category, which is currently dominated by Gatorade of PepsiCo.

Before we proceed further a small official intro about Bodyarmor.

Wikipedia snippet about Bodyarmor: Bodyarmor SuperDrink (stylized as BODYARMOR) is an American sports drink and a fully-owned subsidiary of The Coca-Cola Company based in Queens, New York. It was founded in 2011 by Lance Collins, founder of Fuze Beverage and NOS Energy Drink, and Mike Repole, co-founder of Energy Brands, Vitaminwater, and Smartwater.

In March 2013, Kobe Bryant purchased a large stake in the company, joining the board of directors and becoming the third-largest shareholder, a position that his widow Vanessa still holds. End of the snippet.

Now, coming back to the topic of this post.

Coca-Cola’s intention to buy Bodyarmor is not a surprise to anyone since it has already in the year 2018 grabbed a hefty 15% stake in its business.

And, with the continuous growing potential of Bodyarmor’s business, Coke got confident enough to make it the front face for its sports drink category on a global scale.

On the other hand, the Gatorade of PepsiCo is having comfortable domination in the world of sports drinks with an unbelievable market penetration of 70% basically giving no chance to its competitors to even think of putting a tough show of business.

But, Coke is no joke, and I think with this acquisition of Bodyarmor Coke will see significant growth in its sports drinks market share. It will be slow and small in comparison to Gatorade, but the growth will be there. I can already feel it.

Thank you for reading this, and God Bless Everyone.

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Intro About Myself

Name: Tabbrez

Bio: Genius, Polymath, Entrepreneur, Philosopher.

Website: tabbrez.com

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The Business Terminal is where I Blog and Document my take on everything that happens in Silicon Valley, Wall Street, and Corporate America. — Tabbrez

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The Business Terminal

The Business Terminal

The Business Terminal is where I Blog and Document my take on everything that happens in Silicon Valley, Wall Street, and Corporate America. — Tabbrez

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