Coca-Cola's (KO) Investment in BODYARMOR to Augment Sales - August 16, 2018
Per the deal, this investment paves the way for Coca-Cola to raise its ownership stake in BODYARMOR moving ahead. Also, it is benefiting from the acceleration of its sparkling soft drinks category through investment and innovation, particularly the restaged Zero Sugar and new flavors of Diet Coke.Being among the fastest-growing beverage trademarks in America, BODYARMOR is likely to strengthen the company’s position in the beverage industry. Per analysts, Coca-Cola’s investment in this sports drink brand along with its POWERADE drink might give a tough fight to PepsiCo’s PEP Gatorade.Launched in 2011, BODYARMOR drinks are prepared with potassium and other electrolytes, vitamins and coconut water, thus contain no added colors or flavors. In 2018, the company launched BODYARMOR SportWater, which is designed by athletes for athletes along with a performance pH 8+ as well as electrolytes.We believe that this evolving phase of BODYARMOR drinks along with Coca-Cola’s premium sports drink category will fortify the company’s portfolio, thereby generating higher revenues and profitability.Currently, Coca-Cola has an impressive portfolio of globally recognized brands offering an ever-growing choice of quality beverages, including low- and no-calorie options.