Dr Pepper invests in Gatorade rival BodyArmor
The Dr Pepper Snapple Group, Inc. (DPS) has reached an agreement to make an equity investment in BA Sports Nutrition, LLC, owner of the BodyArmor SuperDrink—a line of premium sports drinks that will compete with Gatorade and Powerade.
The company is investing $20 million for an 11.7 percent ownership position in BA Sports Nutrition.
According to DPS, the company has carried the BodyArmor brand in many of its direct store delivery networks since 2013.
"We've been pleased with BODYARMOR's growth over the past two years and believe it has strong potential as a premium sports drink," said Rodger Collins, DPS president of packaged beverages. "It's already a great part of our allied brand portfolio, it has a management team with the experience and passion to succeed, and we're looking forward to contributing to that growth and success over the long term."
BodyArmor was launched in 2012 by Vitaminwater co-founder Mike Repole and Lance Collins. NBA superstar Kobe Bryant became an investor in the company in 2013. The self-described “superdrink” is made with potassium-packed electrolytes, coconut water and vitamins and is sweetened with pure cane sugar. It contains no artificial colors and no artificial flavors.
The investment marks DPS’s attempt to reach into the sports drink industry and grab a chunk of the market from Coca-Cola’s Powerade and PepsiCo. Inc’s Gatorade.
"We are very excited about the investment by Dr Pepper Snapple Group," Repole said. "Through our partnership with DPS, we are continuing to gain distribution throughout the United States, and we are on our way to becoming a national brand. BodyArmor has tremendous momentum, and the strength of the DPS organization and its system will continue to fuel our amazing growth for years to come."