DPS invests in BA Sports Nutrition, BodyArmor brand
$20 million investment equates to 11.7 percent ownership stake for DPS
Plano, Texas-based Dr Pepper Snapple Group Inc. (DPS) has reached an agreement to make an equity investment in BA Sports Nutrition LLC, owner of BodyArmor SuperDrink, a line of premium sports drinks. The $20 million investment gives DPS an 11.7 percent ownership position in BA Sports Nutrition.
DPS has carried BodyArmor as an allied brand in much of its direct store delivery network since 2013 and plans to expand the product line further in its system over the next year, it says.
"We've been pleased with BodyArmor's growth over the past two years and believe it has strong potential as a premium sports drink," said Rodger Collins, DPS president of packaged beverages, in a statement. "It's already a great part of our allied brand portfolio, it has a management team with the experience and passion to succeed, and we're looking forward to contributing to that growth and success over the long term."
BodyArmor SuperDrink launched in 2012 by Mike Repole and Lance Collins. In 2013, basketball superstar Kobe Bryant became a significant investor in the company. BodyArmor is made with potassium-packed electrolytes, coconut water and vitamins and is sweetened with pure cane sugar. It contains no artificial colors and no artificial flavors and is available in seven great-tasting flavors, the company says.
"We are very excited about the investment by Dr Pepper Snapple Group," Repole said in a statement. "Through our partnership with DPS, we are continuing to gain distribution throughout the United States, and we are on our way to becoming a national brand. BodyArmor has tremendous momentum, and the strength of the DPS organization and its system will continue to fuel our amazing growth for years to come."
This partnership marks the second time DPS and Repole have teamed up to grow an emerging beverage brand. Prior to launching BodyArmor, Repole was a co-founder of vitaminwater, which experienced substantial growth in DPS's legacy bottling and distribution system from 2000 to 2007.
BodyArmor is one of numerous brands DPS carries in its portfolio of third-party allied brands, which also includes Big Red, Fiji Water, Vita Coco, Bai Brands, Neuro beverages, SunnyD and Hydrive energy drinks, among others.
The terms of the BodyArmor transaction will not have a material impact on DPS's financial statements.