Served in 16oz bottles, BODYARMOR actually has a slightly higher sugar content. But afterwards, your blood sugar will dip (commonly known as a sugar crash). Now dextrose has a high glycemic index, which means your body gets a quick jump from it. Additionally, the ingredients include simple sugars such as dextrose. Gatorade contains no notable nutrients, vitamins, or minerals. That means that for every fluid ounce of Gatorade, you are consuming 1.75 grams of sugar. Just look at the nutritional label to spot numerous differences between it and Gatorade. However, BODYARMOR self identifies in the "premium hydration" market. Make no mistake, this venture is aimed at Gatorade's hold on the sports beverage industry (currently owns approximately 75% market share in the sports drink market). Coca-Cola's mention of bringing BODYARMOR to global markets pretty much says it all. This deal with Coke creates a direct path to scale for BODYARMOR. It sounds simple, but dramatically scaling a business often requires both financial and intellectual resources that make the process more difficult than most would anticipate. One of the largest hurdles that a growing company sometimes faces is scaling. The deal includes "defined terms" for Coca-Cola to increase its stake and possibly buyout the company completely down the road.Īlso in the deal are details that the brand will have access to Coca-Cola's scaling operations, specifically its bottling. When you comb through highlights of the partnership agreement, the deal is littered with tidbits of information that point to Coca-Cola's intentions. #1 The Foreshadowing Within The Press Release There are a handful of catalysts present that signal huge potential for BODYARMOR's partnership with Coca-Cola. The company is a new challenger to Pepsi ( PEP), whose Gatorade brand has a long-standing stranglehold on the sports beverage niche - even in the presence of Coca-Cola's own offering Powerade. With Coca-Cola's marketing and scaling proficiencies, this is a long-term play that has the ingredients to develop into a future billion-dollar brand for the beverage titan.īODYARMOR was started in 2011 by a duo of founding partners responsible in part for the creation of numerous successful brands including Fuze, NOS Energy Drink, vitaminwater, and Smartwater. There are a lot of unique aspects to the brand that should appeal to Coca-Cola, and likely fueled the decision to get involved with the young company. On Tuesday, it was reported that The Coca-Cola Company ( NYSE: KO) had taken a minority stake in BODYARMOR Sports Drink, an independently owned sports beverage brand.
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