On Monday, The Coca Cola Company announced that it had fully acquired sports energy drink company Bodyarmor, making it the company’s biggest acquisition yet.
Coca Cola bought a 15% stake in Bodyarmor in 2018. The full acquisition was expected since Coca Cola said in February that they wish to purchase a controlling interest in Bodyarmor, in a filing to the Federal Trade Commission.
In the sports drink industry, Bodyarmor had surpassed Coke’s Powerade as it claimed it was a ‘healthier’ sports drink, making Bodyarmor the second largest brand in its market.
However, PepsiCo’s Gatorade has an enormous market share of around 70%, meaning that Coke will need to hope that this acquisition is a success if they have any chance of putting a dent into PepsiCo’s control of the sports drink industry.
After the news of the acquisition became public, shares of Coca Cola ($KO) traded sideways at a price around $56.