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Coca-Cola (KO) has agreed a deal to acquire a minority stake in US sports drink supplier Bodyarmor as it eyes the global sports drink market.
Coca-Cola said the deal would give the fast-growing brand access to the its expansive bottling system, enabling it to accelerate its growth to meet “explosive” consumer demand for its premium line of sports performance and hydration drinks.
The terms of the deal will allow Coca-Cola to increase its ownership stake in the future, though the terms of the agreement were not disclosed.
The Bodyarmor brand will continue to operate independently under the leadership of co-founder and chairman Mike Repole.
The deal sees Coca-Cola become the second largest shareholder, behind Repole.
Coca-Cola North America President Jim Dinkin commented: “In a fast-moving and dynamic industry, and during a time of unprecedented change at Coca-Cola, we’re challenging the status quo and bringing innovative, boundary-less thinking to our strategic relationships to ensure we are offering the products consumers want.”
“Bodyarmor is one of the fastest growing beverage trademarks in America and competes in exciting categories. I have no doubt it will prove to be a strong offering to our system alongside our already powerful hydration portfolio as we accelerate our position as a total beverage company.”
Mike Repole added: “Bodyarmor is revolutionizing the beverage industry by providing the hydration that more and more of today’s athletes want and need. We are confident that this agreement gives us the best opportunity to significantly accelerate our mission to make Bodyarmor the world’s best premium sports performance and hydration brand. This is thanks to the strength and scale of
The Bodyarmor brand includes Bodyarmor Sports Drink, Bodyarmor Lyte Sports Drink and Bodyarmor SportWater.
In 2013, basketball star Kobe Bryant became the third largest shareholder and will continue to be heavily involved in the brand, especially as Bodyarmor expands to global markets in the future.
Repole has had success co-founding and incubating other brands including smartwater and vitaminwater, which joined the Coca-Cola portfolio in 2007, and have since become billion-dollar brands with global availability.
Morning update
Brazilian meat giant JBS has reported its second quarter results, posting consolidated net revenue of R$45,175.6m, an increase of 8.4% in relation to 2Q17.
For the quarter, approximately 75% of JBS global sales came from markets where the company operates and 25% from exports.
Consolidated EBITDA, adjusted by the R$112.9m impact at Seara regarding truckers strike in Brazil, was R$4,237.6m, a 12.8% increase over 2Q17.
Highlights were JBS USA Beef and JBS Brazil, which posted EBITDA growth of 75.8% and 37.4%, respectively.
EBITDA margin grew to 9.4% in 2Q18 from 9.1% in 2Q17.
On a reported basis it fell to a net income loss of R$911.1m compared to a net income gain of R$309.8m in the same quarter last year.
Pilgrim’s Pride net revenue in 2Q18 totaled US$2,836.7m, a 3.1% increase in relation to 2Q17, including Moy Park results in both quarters.
On the markets this morning, the FTSE 100 has edged down another 0.1% to 7,604..2pts.
Early risers include Greene King (GNK), up 1.1% to 486.7p, Devro (DVO), up 1% to 189.8p, Hotel Chocolat (HOTC), up 0.9% to 348p and Marks & Spencer (MKS), up 0.8% to 300.1p.
Fallers so far today include Glanbia (GLB), down 0.9% to €14.86, TATE & Lyle (TATE), down 0.8% to 636.6p, Associated British Foods (ABF), down 0.7% to 2,348p and Greencore (GNC), down 0.6% to 177.2p.
Yesterday in the City
The FTSE 100 ended the day down another 0.4% as a weaker dollar and continuing worries over the impact of the Turkish currency crisis hit the UK’s biggest listed groups.
On a day of little grocery and fmcg news in the market there were still some notable fallers, including Dairy Crest (DCG) down 2% to 470.4p, Greggs (GRG) down 1.4% to 1,059p, Associated British Foods (ABF) down 1.3% to 2,365p and Tesco (TSCO) down 1.1% to 260p.
Other fallers included Domino’s Pizza Group, down 2.9% to 281.5p, Majestic Wine (WINE) down 2.4% to 409.5p, Patisserie Holdings, down 2.2% to 415.5p and Hilton Food Group (HFG), down 2% to 954p.
FeverTree (FEVR) was amongst the few notable risers of the day, climbing 1.4% to 3,465p.
Other risers included Premier Foods (PFD), up 2% to 43.1p, PureCircle (PURE), up 1.8% to 402p, Glanbia (GLB), up 1.5% to €14.99, Finsbury Food Group (FIF), up 1.4% to 123.75p and Nichols Beverages (NICL), up 1.4% to 1,440p.
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