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Kobe Bryant’s decision to become an early investor in BodyArmor has turned out to be a very lucrative one. The sports drink company, which is aiming to compete with Gatorade, had made about $10 million in revenue when Bryant made his initial investment.
Now, Coca-Cola is throwing its money behind the new brand as a minority shareholder. This means Bryant’s initial investment of $6 million has skyrocketed in value. His shares are now worth a reported $200 million.
Here’s what you need to know.
1. Gatorade Dominates the Sports Drink Market and Coca-Cola Is Hoping BodyArmor Can Help Change That
Proud of our team at @DrinkBODYARMOR & our new partnership with the @CocaColaCo who believes in our mission of becoming the #1 Global Sports Drink. Thanks @Gatorade, we’ll take it from here… #ObsessedWithBetter
Gatorade has long reigned supreme in the sports drink universe. According to market research data, the Pepsi-owned drink represents nearly 75 percent of the U.S. market. No other product has even come close to that number. Coca-Cola owns Powerade, which reportedly accounts for about 17.5 percent of the American market.
BodyArmor currently accounts for just about 3 percent of the sports drink market. But its quick rise in popularity, fueled in part by Kobe Bryant’s backing, grabbed Coca-Cola’s attention. The exact amount of the investment were not disclosed. What we do know is that the new investment makes Coca-Cola BodyArmor’s second largest shareholder. BodyArmor will also now have access to Coca-Cola’s bottling system.
Wells Fargo analyst Bonnie Herzog spoke with Reuters about the new deal between BodyArmor and Coca-Cola. She says she would “not be surprised if Coca-Cola eventually acquires the remainder of BodyArmor.” Neither company, however, has indicated that this is a possibility.
The Coca-Cola deal puts BodyArmor’s current partnership with Keurig Dr. Pepper in a tricky spot. Dr. Pepper invested $20 million into BodyArmor in 2015. Herzog says Wells Fargo has learned that BodyArmor plans to end its distribution agreement with Dr. Pepper.
2. Bryant Says He Began Drinking BodyArmor in 2013 While Recovering From an Injury
Hydration fit for an MVP. Congrats @JHarden13. Check @DrinkBODYARMOR for your limited-edition bottle. #ObsessedWithBetter
BodyArmor got off the ground in 2011. It markets itself as a healthier alternative to other popular sports drinks like Gatorade and Powerade. Bryant has described those brands as “bland,” and says he began drinking BodyArmor in 2013 while he was recovering an injury.
On its website, BodyArmor lists its main electrolyte as potassium. The founders say potassium is ideal for helping muscles recover because it prevents cramping, and also can help lower blood pressure. By comparison, Gatorade contains more sodium and sugar.
Bryant got involved with BodyArmor in 2014. The company had generated more than $10 million in revenue in the 12 months leading up to Bryant’s investment. And according to Forbes, sales consistently doubled each year since the company was founded.
3. BodyArmor Was the First Investment for Bryant’s New Company ‘Kobe Inc’
Kobe Bryan’s decided to invest in BodyArmor in 2014. The investment was the very first one for his new company, Kobe Inc. In a 2014 interview with Forbes, Bryant told the publication that his company’s “mission statement is to own and grow brands and ideas that challenge and redefine the sports industry while inspiring the world.”
Bryant went all in on his first investment. He put $6 million into BodyArmor. At the time, that made him the sport drink company’s third-largest shareholder, behind co-founders Mike Repole and Lance Collins.
Bryant’s investment gave him ownership over more than 10 percent of BodyArmor and is profits. He was also made a member of the board of directors.
4. Kobe Bryant Plays a Large Role in BodyArmor’s Marketing and Took a Direct Shot at Gatorade in an April 2018 Commercial
Kobe Bryant is a dominating force behind BodyArmor’s marketing strategy. The company debuted a new series of ads in April 2018 that Bryant reportedly came up with, wrote and directed. The commercials call out Gatorade by name.
The theme of the ads is that athletes need to continue to evolve. It depicts Gatorade as an outdated product and that customers should move on from it. The first commercial featured Houston Rockets guard James Harden. It debuted during the 2018 NBA Playoffs on TNT.
Harden is seen wearing an 18th-century outfit, complete with tricorne hat. The narrator says, “James Harden wouldn’t go to the game wearing outdated fashion. So why would he choose an outdated sports drink? This is BodyArmor. More natural, more electrolytes, better sports drink. Thanks Gatorade, we’ll take it from here.”
Another ad features WNBA star Diana Taurasi. Kobe Bryant narrates the commercial, with the theme that is preferred to aim for “better” rather than “best.” The reasoning is that being the “best” is an excuse to get lazy and stop improving. Bryant is heard saying “better drives you today and tomorrow. Better is a mission. Better is obsession. Diana Taurasi is better.”
5. BodyArmor Is One of Bryant’s Many Post-NBA Projects
It’s time for the #NBAFinals and the next episode of DETAIL is up on @espn+. This time, we’re looking at how @KingJames and @KDTrey5 should attack the series. #DETAIL
Kobe Bryant is known as one of the most successful professional basketball players to ever take the court. He retired in 2016 after 20 years playing with the Los Angeles Lakers. But “retirement” has not meant “relaxation” for Bryant.
The founding of Kobe Inc. was just the start. In 2016, he launched a venture-capital fund with business partner Jeff Stibel. According to TechCrunch, the $100 million fund was set up with a plan to invest in tech, media and data companies.
Bryant has also gone behind the camera. He owns a production company called Granity Studios. The company created the show “Detail,” which debuted on ESPN’s streaming service ESPN Plus in March. The show is focused on analyzing basketball tape game footage and helping fans better understand the intricacies of the game.