New York
CNN
—
Coca Cola-owned BodyArmor is unleashing its latest beverage as a part of its years-long effort to overthrow Pepsi’s Gatorade from its place because the top-selling sports activities drink model.
Rolling out to retailers this month is BodyArmor Zero Sugar, a sugar-free model of its well-liked flavored sports activities drink, taking goal at Gatorade’s G Zero drinks.
BodyArmor is differentiating itself by its elements — or lack thereof — in comparison with Gatorade, because it isn’t made with synthetic sweeteners, flavors or dyes in comparison with its opponents.
In an unique interview with CNN, BodyArmor CEO Federico Muyshondt referred to as Zero Sugar the “greatest launch” the 12-year-old model, which Coke absolutely purchased in 2021 in a $5.6 billion deal, has ever had.
“It’s an enormous alternative for BodyArmor as a result of it’s part of a class that represents 20% of the general class and the place BodyArmor wasn’t taking part in,” Muyshondt advised CNN. “We all know that there’s a client that appears particularly for zero sugar, and till now, BodyArmor didn’t have a product to play with there.”
BodyArmor Zero Sugar is available in 4 flavors, together with fruit punch, lemon lime, orange and cherry lime. It’s offered in three bottle sizes: 16 ounces, 20 ounces and 28 ounces.
Muyshondt added that synthetic elements are “large limitations of entry” for folks on the lookout for sugar-free sports activities drinks. Specifically, he thinks that “gatekeepers” (i.e. dad and mom doing the searching for the family) have been resistant in buying sugar-free drinks due to that.
The sugar-free drink is a “pure growth” for BodyArmor, Muyshondt mentioned, that provides the model extra alternative to develop on the expense of Gatorade but additionally to deliver new drinkers into the rising class.
“In common sports activities drinks and low-calorie sports activities drinks, BodyArmor has are available in and expanded the class,” he mentioned. “We’re bringing in new shoppers and new folks into the aisle which is a good factor for our retailers and our bottlers.”
BodyAmor has been gaining on the dominance Gatorade has held for about six many years however nonetheless lags far behind.
Analysis agency Euromonitor studies that Gatorade commanded 63.5% of US sports activities drink marketshare in 2023, in comparison with BodyArmor’s 12% and 14.3% for its sister model Powerade. Specifically, G Zero holds 6% and Prime, the buzzy two-year-old brand, controls 1.7%.
The agency predicts that the $13 billion US market will develop to just about $17 billion by 2027.
BodyArmor had “no alternative however to launch a zero sugar model to stay aggressive, and this product will transfer the needle,” mentioned Duane Stanford, editor and writer of Beverage Digest.
Final yr was a rocky yr for BodyArmor below Coke’s purview. After gross sales for each BodyArmor and Powerade each slipped to start with of 2023, Coke mentioned in its most up-to-date earnings name that “traits are stabilizing” for each manufacturers.
“BodyArmor is adjusting to the following part of competitors and maturity by going after the zero sugar and powder markets whereas additionally trying exterior US for progress,” mentioned Stanford. (BodyArmor has entered Canada, marking its first worldwide market.)
A part of Coke’s effort to overhaul Gatorade was to revamp Powerade, which can be below Muyshondt’s management. Final yr, the lower-priced Powerade received a makeover and a revamped recipe that boasts about twice as many electrolytes as its earlier iteration.
One other issue is Prime, which introduced that it was crossing $1 billion in gross sales final yr. Though it nonetheless significantly lags Gatorade, Powerade and BodyArmor in dimension, Stanford mentioned that the drink “has been a shock to the system within the US, gaining sports activities drink share at a tempo nobody thought attainable.”
“The problem for Gatorade and BodyArmor is to regulate to a brand new advertising actuality whereas not abandoning the innovation that bought them to the highest,” Stanford added.
BodyArmor’s Muyshondt mentioned that Prime is a “phenomenon that we’ve by no means seen earlier than in drinks or in meals,” however that isn’t scaring off the model from innovating or rising.
“Hydration as an entire is far more than sports activities and that’s the place I believe BodyArmor is forward of the curve,” mentioned Muyshondt. “BodyArmor has been positioned as a sports activities drink, nevertheless it’s far more than sports activities. It’s about bodily health. It’s about holistic well being and wellness, and that’s why I believe BodyArmor is about to win.”