BodyArmor thinks eliminating this one ingredient will help it topple Gatorade
By Jordan Valinsky, CNN
New York (CNN) — Coca Cola-owned BodyArmor is unleashing its newest beverage as part of its years-long effort to overthrow Pepsiās Gatorade from its position as the top-selling sports drink brand.
Rolling out to retailers this month is BodyArmor Zero Sugar, a sugar-free version of its popular flavored sports drink, taking aim at Gatoradeās G Zero beverages.
BodyArmor is differentiating itself by its ingredients ā or lack thereof ā compared to Gatorade, since it isnāt made with artificial sweeteners, flavors or dyes compared to its competitors.
In an exclusive interview with CNN, BodyArmor CEO Federico Muyshondt called Zero Sugar the ābiggest launchā the 12-year-old brand, which Coke fully bought in 2021 in a $5.6 billion deal, has ever had.
āItās a massive opportunity for BodyArmor because itās a part of a categoryĀ that represents 20% of the overall categoryĀ and where BodyArmor wasnāt participating in,ā Muyshondt told CNN. āWe know that there is a consumer that looks specifically for zero sugar, and until now, BodyArmor didnāt have a product to play with there.ā
BodyArmor Zero Sugar comes in four flavors, including fruit punch, lemon lime, orange and cherry lime. Itās sold in three bottle sizes: 16 ounces, 20 ounces and 28 ounces.
Muyshondt added that artificial ingredients are ābig barriers of entryā for people looking for sugar-free sports drinks. In particular, he thinks that āgatekeepersā (i.e. parents doing the shopping for the household) have been resistant in purchasing sugar-free drinks because of that.
The sugar-free drink is a ānatural expansionā for BodyArmor, Muyshondt said, that gives the brand more opportunity to grow at the expense of Gatorade but also to bring new drinkers into the growing category.
āIn regular sports drinks and low-calorie sports drinks, BodyArmor has come in and expandedĀ the category,ā he said. āWe are bringing in new consumers and new people into the aisle which is a great thing for our retailers and our bottlers.ā
Sweating from competition
BodyAmor has been gaining on the dominance Gatorade has held for about six decades but still lags far behind.
Research firm Euromonitor reports that Gatorade commanded 63.5% of US sports drink marketshare in 2023, compared to BodyArmorās 12% and 14.3% for its sister brand Powerade. In particular, G Zero holds 6% and Prime, the buzzy two-year-old brand, controls 1.7%.
The firm predicts that the $13 billion US market will grow to nearly $17 billion by 2027.
BodyArmor had āno choiceĀ but to launch a zero sugar version to remain competitive, and this product will move the needle,ā said Duane Stanford, editor and publisher of Beverage Digest.
Last year was a rocky year for BodyArmor under Cokeās purview. After sales for both BodyArmor and Powerade both slipped in the beginning of 2023, Coke said in its most recent earnings call that ātrends are stabilizingā for both brands.
āBodyArmor is adjusting to the next phase of competition and maturity by going after the zero sugar and powder markets while also looking outside US for growth,ā said Stanford. (BodyArmor has entered Canada, marking its first international market.)
Part of Cokeās effort to overtake Gatorade was to revamp Powerade, which is also under Muyshondtās control. Last year, the lower-priced Powerade received a makeover and a revamped recipe that boasts about twice as many electrolytes as its previous iteration.
Another factor is Prime, which announced that it was crossing $1 billion in sales last year. Although it still seriously lags Gatorade, Powerade and BodyArmor in size, Stanford said that the drink āhas been a shock to the system in the US, gaining sports drink share at a pace no one thought possible.ā
āThe challenge for Gatorade and BodyArmor is to adjust to a new marketing reality while not abandoning the innovation that got them to the top,ā Stanford added.
BodyArmorās Muyshondt said that Prime is a āphenomenonĀ that weāve never seen before in beverages or in food,ā but that isnāt scaring off the brand from innovating or growing.
āHydration as a whole is way more than sports and thatās where I think BodyArmor is ahead of the curve,ā said Muyshondt. āBodyArmor has been positioned as a sports drink, but itās way more than sports. Itās about physical fitness. Itās about holisticĀ health and wellness, and thatās why I think BodyArmor is set to win.ā
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