Coca-Cola has taken full control of sports drink maker Bodyarmor in a $ 5.6 billion deal. This is the company’s largest acquisition to date.
The largest producer of soft drinks bought a 15% stake in Bodyarmor in 2018 and became the second largest shareholder. At the time, basketball legend Kobe Bryant was the third largest shareholder since investing in Bodyarmor in 2013, CNBC reports. The deal for the remaining 85% of Bodyarmor is not entirely surprising.
As early as February, Coca-Cola said it could buy a controlling stake in Bodyarmor later this year. With the purchase, the company gained market share in the category of sports drinks. Still, PepsiCo’s Gatorade is an unattainable market leader with approximately 70% market share.
After positioning itself as a healthier sports drink, Bodyarmor overtook Coca-Cola’s Powerade to become the second largest player in the category. According to Coca-Cola, the retail sales of the sports drink brand are more than $ 1.4 billion.
Since the beginning of the pandemic, Coca-Cola has been reviewing its own portfolio, stopping drinks that are not selling well – for example, Coca-Cola Plus Energy in North America. Meanwhile, the company is striving to offer a wider range of drinks.
The deal with Bodyarmor is Coca-Cola’s biggest acquisition since the purchase of Costa Coffee in 2018 for $ 5.1 billion.
Shares of Coca-Cola rose 3% this year. The market capitalization is worth 244 billion dollars.
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