DPS invests additional $6 million in BodyArmor
Investment brings DPS ownership stake to 15.5 percent of the sports drink brand
Dr Pepper Snapple Group Inc. (DPS), Plano, Texas, announced that it has increased its equity investment in Beverly Hills, Calif.-based BA Sports Nutrition LLC, owner of BodyArmor, a line of premium sports drinks. An additional $6 million stake will build on the initial $20 million investment announced in August 2015 and raises DPS's ownership position from 11.7 percent to 15.5 percent, the company says.
DPS has carried BodyArmor as an allied brand since 2013 and has expanded the brand’s distribution through its packaged beverages direct store delivery footprint, which services 34 states it says. BodyArmor also has a growing roster of independent distributors in areas that are not served by DPS's network.
"BodyArmor has been a winning addition to our allied brand lineup, enabling us to build our presence in the growing sports drink category with a great-tasting and differentiated product," said Rodger Collins, DPS president of packaged beverages, in a statement. "We're very pleased to be increasing our investment in BodyArmor while working closely with its strong management team to win more fans in more places in the coming months and years."
With its increased stake in the BodyArmor business, DPS is the second-largest equity holder in the brand, behind Mike Repole, chairman and co-founder of the brand, the company says.
"BodyArmor has revolutionized the sports drink category by creating a premium, better-for-you sports drink, and consumers are connecting with it," Repole said in a statement. "We are excited by our strong growth and our continued partnership with DPS, who shares our goal to become the No. 1 sports drink."
The agreement was finalized in March and will not have a material impact on DPS's financial statements, it adds.