© Reuters.
Investing.com – Coca-Cola stock (NYSE:) traded up 0.1% in Monday’s premarket while a report in The Wall Street Journal said the company is taking full control of sport drink-maker BodyArmor.
According to the WSJ report, Coke is likely to pay $5.6 billion for the 70% stake it doesn’t own in the company. The sellers include the company’s founders and investors including some well-known names like NBA’s James Harden and MLB’s Mike Trout who helped popularize the drink.
The acquisition is Coke’s attempt to widen its portfolio of non-aerated and low-calorie drinks as consumers look for healthier alternatives. It’s also a fresh attempt to crack the stranglehold of its rival Pepsico (NASDAQ:) on the sports drink market. Pepsico’s Gatorade accounts for nearly two-thirds of the U.S. market, the WSJ said, while Coke’s own Powerade sports drinks have a market share of less than 15%.
BodyArmor’s products include sports drinks, alkaline water and caffeinated sports drinks. It expects to generate about $1.4 billion in retail sales this year, the report said quoting people familiar with the matter. Sales were about $250 million in 2018 when Coke first invested in the startup.
PepsiCo stock also edged 0.2% higher.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Be the first to comment