Coca-Cola Invests in BodyArmor in Sports Drink Feud With Pepsi

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Chris7

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Coca-Cola is doubling its efforts to compete with Pepsi's Gatorade.

Coke said it will take a big stake in red-hot sports drink maker BodyArmor, becoming the company's second-largest shareholder. Body Armor is an attractive competitor to both Gatorade and Coke's own Powerade, the biggest players in the sports drink sector.

The sports drink company has drawn attention from both athletes and other big beverage companies. Kobe Bryant is Body Armor's third-largest shareholder. In 2016, Dr Pepper Snapple (DPS) said that it has increased its investment in Body Armor's parent company to $26 million, giving it a 15.5% stake in the company.

"They've really made an impact in the market," said Duane Stanford, executive editor of Beverage Digest.

Gatorade has controlled the nearly $8 billion US sports drink industry for decades, grabbing about 75% of the market, according to research firm Euromonitor International. But sales ticked down 0.5% last year to $5.9 billion in the United States, according to Euromonitor. And the brand lost market share.

That may be because people are seeking healthier options. Gatorade recently launched a sugar-free drink for the first time in its history.

Body Armor has a line of low-calorie drinks that use natural sweeteners, natural flavors and coconut water. They come in flavors like peach mango, blueberry pomegranate and orange citrus. It also makes water with electrolytes and vitamins like potassium and calcium.

The company's strategy is an "example of the way entrepreneurs are really capitalizing on consumer trends and getting the attention of big players," Stanford said.

Coke has made a habit of taking a minority stake in attractive young companies before purchasing them outright, as it did with Honest Tea.

And Coke already has a relationship with Body Armor co-founder and chairman Mike Repole, Body Armor's largest shareholder. Repole co-founded both Smartwater and Vitamin Water, both now owned by Coke.

Coca-Cola did not disclose the terms of its deal, but it said Tuesday that the partnership will give Body Armor access to Coca-Cola (KO) bottling facilities. Body Armor will continue to operate as its own brand. Coke may acquire more shares in the future.

https://money.cnn.com/2018/08/14/news/companies/coca-cola-body-armor/index.html

Congrats, Mike Repole. Really knows how to pick 'em.
 
Rooting for a day he launches redmen water and washes the stench of this program away
 
[quote="Moose" post=292519]Yet when it comes to the athletic dept he is largely ignored.[/quote]

He should be their most important "customer". A prospective donor of this size would be highly catered to by most programs. I am not in a position to say how much or little SJU engages him, but it should be a priority. Once he further divests himself from Body Armour (and he likely will, since Coke will want a controlling interest), Mike Repole will have the means to make major facilities improvements a reality.

My guess is a seasoned AD would recognize the opportunity and know how to forge the partnership. We can only wait and hope.
 
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[quote="JohnnyFan" post=292526][quote="Moose" post=292519]Yet when it comes to the athletic dept he is largely ignored.[/quote]

He should be their most important "customer". A prospective donor of this size would be highly catered to by most programs. I am not in a position to say how much or little SJU engages him, but it should be a priority. Once he further divests himself from Body Armour (and he likely will, since Coke will want a controlling interest), Mike Repole will have the means to make major facilities improvements a reality.

My guess is a seasoned AD would recognize the opportunity and know how to forge the partnership. We can only wait and hope.[/quote]

He has the means already. So who knows. (Well, some do.)
 
[quote="mjmaherjr" post=292647][quote="JohnnyFan" post=292646]Kobe Bryant's $6 Million investment in Body Armour now worth $200 million.

[/quote] which means Repole's stake is more than that. Jesus that guy just prints money in that business. He should be one of the guys on Shark Tank[/quote]
His original partner, Rohan Oza, at Vitamin Water was a guest shark a few seasons back, bright guy.

 
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Sat behind Mike, his son, and what appeared to be his son's gf at a game at CA this past season. Seems like a down to earth cool guy, no flashy suit or anything just taking in a game. Don't worry guys, I didn't ask him to donate more to the program ;) though it wouldn't hurt.
 
[quote="Moose" post=292519]Yet when it comes to the athletic dept he is largely ignored.[/quote]

Because he donated far less than you guys think, and probably thought that bought him a lot more influence than it did.

Sometimes its the other way around. There is an SJU grad who owns a MLB franchise who has rebuffed all efforts from the university at any relationship. There is another SJU grad who owns a chunk of an MLB franchise who has done a ton for the school. Go figure.
 
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I guess it's been about 8 or 9 years since Repole and Vitamin Water sold out to Coke. There are usually non-competes of at least 5 years, and I'm guessing Repole had a non-compete of at least that long where he was permitted to do a Pirate's Booty, and then circle back to a healthier alternative drink, Body Armor.

Repole should be an icon for any kid who is not academically brilliant, but possesses talents that don't readily show up in GPA's. The guy is a marketing genius, with 3 big wins in a row, is a guy that anyone should bank on.
 
[quote="Mike Zaun" post=292667]Sat behind Mike, his son, and what appeared to be his son's gf at a game at CA this past season. Seems like a down to earth cool guy, no flashy suit or anything just taking in a game. Don't worry guys, I didn't ask him to donate more to the program ;) though it wouldn't hurt.[/quote]

While all endowed institutions benefit from a concentrated number of big donors, what all universities try to establish is a culture of giving where nearly all alumni donate. St. John's has been much less successful than other schools in that regard. So many schools will ask 2018 graduates to donate $20.18, with a goal of 100% class participation.

I'm wondering if recent grads have been solicited in that manner?
 
[quote="Beast of the East" post=293027]I guess it's been about 8 or 9 years since Repole and Vitamin Water sold out to Coke. There are usually non-competes of at least 5 years, and I'm guessing Repole had a non-compete of at least that long where he was permitted to do a Pirate's Booty, and then circle back to a healthier alternative drink, Body Armor.

Repole should be an icon for any kid who is not academically brilliant, but possesses talents that don't readily show up in GPA's. The guy is a marketing genius, with 3 big wins in a row, is a guy that anyone should bank on.[/quote]

In the wise words of one of our former President's, "C students can be President too."
 
[quote="Beast of the East" post=293026][quote="Moose" post=292519]Yet when it comes to the athletic dept he is largely ignored.[/quote]

Because he donated far less than you guys think, and probably thought that bought him a lot more influence than it did.

Sometimes its the other way around. There is an SJU grad who owns a MLB franchise who has rebuffed all efforts from the university at any relationship. There is another SJU grad who owns a chunk of an MLB franchise who has done a ton for the school. Go figure.[/quote]

I know the first owner ( who rebuffed SJU) is the Tampa Bay rays owner. Who’s the minority owner that you’re talking about?
 
[quote="Beast of the East" post=293026][quote="Moose" post=292519]Yet when it comes to the athletic dept he is largely ignored.[/quote]

Because he donated far less than you guys think, and probably thought that bought him a lot more influence than it did.

Sometimes its the other way around. There is an SJU grad who owns a MLB franchise who has rebuffed all efforts from the university at any relationship. There is another SJU grad who owns a chunk of an MLB franchise who has done a ton for the school. Go figure.[/quote]

We both know that we have a mutual contact close to this information. He very well might not donate as much as you think. But my understanding is its from previous conversations not going anywhere in terms of involvement. Should SJU give him the keys to the car? Probably not. But then again he's been a helluva lot more successful than SJU so maybe not a bad idea.

Point being SJU has listened to quite a few yahoos over the years. They can do a lot worse than listening to Repole.
 
[quote="Moose" post=293031][quote="Beast of the East" post=293026][quote="Moose" post=292519]Yet when it comes to the athletic dept he is largely ignored.[/quote]

Because he donated far less than you guys think, and probably thought that bought him a lot more influence than it did.

Sometimes its the other way around. There is an SJU grad who owns a MLB franchise who has rebuffed all efforts from the university at any relationship. There is another SJU grad who owns a chunk of an MLB franchise who has done a ton for the school. Go figure.[/quote]

We both know that we have a mutual contact close to this information. He very well might not donate as much as you think. But my understanding is its from previous conversations not going anywhere in terms of involvement. Should SJU give him the keys to the car? Probably not. But then again he's been a helluva lot more successful than SJU so maybe not a bad idea.

Point being SJU has listened to quite a few yahoos over the years. They can do a lot worse than listening to Repole.[/quote]

Especially when it comes to marketing a brand!
 
[quote="Moose" post=293031][quote="Beast of the East" post=293026][quote="Moose" post=292519]Yet when it comes to the athletic dept he is largely ignored.[/quote]

Because he donated far less than you guys think, and probably thought that bought him a lot more influence than it did.

Sometimes its the other way around. There is an SJU grad who owns a MLB franchise who has rebuffed all efforts from the university at any relationship. There is another SJU grad who owns a chunk of an MLB franchise who has done a ton for the school. Go figure.[/quote]

We both know that we have a mutual contact close to this information. He very well might not donate as much as you think. But my understanding is its from previous conversations not going anywhere in terms of involvement. Should SJU give him the keys to the car? Probably not. But then again he's been a helluva lot more successful than SJU so maybe not a bad idea.

Point being SJU has listened to quite a few yahoos over the years. They can do a lot worse than listening to Repole.[/quote] 100% on point. Heck I'd rather let Beast run the athletic dept and searches. Some people are just winners and have business sense and throw all that other political shit out the window.
 
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