Published on BeNET.com
Written by Ray Latif
Dr Pepper Snapple Group (DPSG) has increased its ownership position in BodyArmor, having invested an additional $6 million in the premium sports drink brand. The deal, finalized in March, comes approximately seven months after DPSG acquired an 11.7 percent stake in BodyArmor for $20 million. DPSG now owns 15.5 percent of the brand, and, as a result of the investment, is the second largest shareholder behind BodyArmor chairman and co-founder Mike Repole.
In a call with BevNET, Repole said that the funding will go toward new staffing and marketing initiatives, including an upcoming media campaign scheduled to launch this week.
Formulated with natural electrolytes, coconut water and vitamins, BodyArmor is marketed as a natural and better-for-you alternative to sports drinks that are made with artificial ingredients. Launched in 2012 by serial beverage entrepreneur Lance Collins and Repole, the former president of vitaminwater, the brand is distributed nationally and has been part of DPSG’s allied brand portfolio since 2013. DPSG’s direct store delivery system manages distribution of BodyArmor in 34 states; it’s represented by independent wholesalers in other parts of the U.S. Repole praised the partnership with DPSG as key to BodyArmor’s development.
“Dr Pepper Snapple Group gives us the distribution muscle to compete nationally with Gatorade and Powerade,” Repole said. “This [investment] solidifies their confidence in the brand. We have a great relationship, and I think we have the same vision for what we see in this sports drink category and what we see for the potential of BodyArmor.”
Although Gatorade and Powerade collectively hold a 98 percent share of the sports drink category, BodyArmor is growing fast. Sales of the brand reached $47 million in multi-outlet channels (not including convenience stores) over a 52-week period ending on March 21, according to data provided by IRI, a Chicago-based market research firm. The figure represents a 190 percent increase in sales from a year prior.
BodyArmor sales are even more impressive in the convenience channel and other independent retailers, Repole said. He projects total sales of the brand to reach $150 million by the end of the year.
To support growth, BodyArmor will continue to lean on an impressive roster of professional athlete endorsers, including Andrew Luck, Mike Trout, James Harden, Richard Sherman and Dez Bryant — all of whom are also investors in the brand. Perhaps its best-known athlete partner is Kobe Bryant, who in 2014 acquired an estimated 10 percent of BodyArmor.
The Giannuzzi Group, LLP acted as legal counsel to BodyArmor.
Published on PR News Wire
NEWBURY PARK, Calif., April 4, 2016 /PRNewswire/ — Veestro, the leading gourmet plant-based meal delivery service, announced today that it has secured $1.5 million in financing, an investment led by M&A Capital, Inc. and Starcorp International S.A. The funding will accelerate the company’s aggressive growth driven by health-minded consumers looking for convenient solutions to meal planning and preparation.
Since the company’s launch in 2013, sales have increased by more than 300% per year, mainly due to the ever-increasing trend of healthy eating paired with the growing need for day-to-day convenience. “Plant-based diets are generating conversations every day which are fundamentally transforming the way consumers think about the food they eat,” commented Mark Fachler, Founder and CEO of Veestro. ”America is becoming more and more health conscious, yet at the same time they are looking for solutions to make life easier. This is where Veestro comes in, offering the solution for people who want to eat healthy, organic, plant-based meals, but don’t have the time to go food shopping or to cook a meal. It saves them from the trap of ‘fast food’, which is usually extremely unhealthy.”
Building on this momentum and the current demands driven by consumer behavior, Veestro will use the financing to build and equip a new 20,000 sq. ft. production facility, establish a new distribution center on the East coast, support marketing efforts, and finance a select few strategic hires. As Veestro executes expansion plans in the first half of 2016, the brand also looks to unveil a rebranding in the first half of the year.
“Finding innovative, successful, and disruptive business concepts in the food industry is a challenging task,” noted Oliver Preuss, Principal, Starcorp International S.A. “Veestro encompasses all of these attributes and more. Their delicious, healthy and organic plant based home delivery meal business concept embraces society’s ever evolving awareness of the benefits provided by living a healthier lifestyle. Veestro allows easy access for busy individuals to the advantages afforded by healthy organic food. We believe to have found the ideal partner to take advantage of this ever growing market trend.“
Carlos Garcia de Paredes, Director at M&A Capital, Inc. echoed the brand growth potential sharing, “Not only is the organic food industry growing at double digits every year, but is only 5% of the food industry as a total. With the healthier lifestyle of millennials, and their preference for convenience, there is no doubt Veestro will become a household name.”
“Our vision has always been about making healthy food available to everyone,” noted Monica Klausner, Co-Founder and CMO of Veestro. “We are thrilled to be partnered with M&A Capital, Inc. and Starcorp International S.A. to accelerate this process.”
The Giannuzzi Group, LLP acted as legal counsel to Veestro.
For more information on Veestro, please visit www.veestro.com.