Coca-Cola reported $11.3 billion in second-quarter revenue Tuesday, outpacing analysts’ estimates of $10.56 billion and growing 12% from the same period last year. 

The company’s sports drink segment grew 7%, primarily attributed to the growth of BODYARMOR and Powerade.

After purchasing 15% of BODYARMOR in 2018, the company acquired the brand’s remaining shares for $5.6 billion in November 2021. Coca-Cola’s earnings report is BODYARMOR’s second full quarter under the brand.

• During the three months that ended July 1, 2022, Coca-Cola recorded net charges of $13 million related to the acquisition. 
• The charges include transition and transaction costs, employee retention costs, and “the amortization of noncompete agreements, net of the reimbursement of distributor termination fees.”

Net income reached $1.91 billion, down from the $2.62 billion it recorded one year ago. The company said its second-quarter revenue grew due to higher pricing and an increase in global case volume.

Coca-Cola raised its full-year outlook, expecting organic revenue growth of 12% to 13% compared to its previous guidance of 7% to 8%.

Pixel Pour

During the quarter, Coca-Cola released a new flavor called Byte, which is supposed to taste like pixels. The drink appeared globally on Pixel Point, an island in the video game “Fortnite.” The company previously stated the flavor was inspired by the global gaming community.

Nike finished its largest global media review in a decade and is now reportedly splitting its business between two companies — one for domestic business and the other for international.

The estimated $1 billion review covered the Nike and Jordan brands in the company’s major markets. 

According to Campaign US, IPG Mediabrands’ Initiative will cover Nike’s international integrated planning and buying business, and independent agency PMG will take the company’s North American side.

The Swoosh’s domestic account is estimated to be worth $300 million to $400 million. Nike reported $12.2 billion in fourth-quarter revenue.

• Nike’s media planning for North America was previously handled by Wieden + Kennedy, Nike’s creative agency of record for more than 35 years. Wieden + Kennedy reportedly participated in the pitch. 
• Along with becoming Nike’s integrated media agency of record for North America, PMG becomes a global digital capabilities partner through which Nike will leverage its technology infrastructure.

Nike’s international account was previously divided between Mindshare and Assembly. Mindshare reportedly pitched to keep the account. 

Other brands that reportedly pitched for the accounts include Dentsu Media, Havas Media, and Omnicom Media Group.

Brand Buddies

IPG Mediabrands won Nike’s Converse brand in 2018, 15 years after Nike acquired it for $315 million. Converse was not up for review as part of the process, which was originally set to wrap up in the spring. 

Final contracts for the review reportedly weren’t signed until late July.

Fantasy sports company Underdog has raised $35 million in Series B funding, valuing the business at $485 million. 

BlackRock, the world’s largest asset manager with $9.57 trillion in assets under management, participated in the round, which included sports betting and tech-focused VC firm Acies Investments. 

The round will allow Underdog to add more than 100 new employees to its workforce, expand into the U.S. sports betting market, and build innovative licensed sports betting products. 

• Underdog plans to launch in Ohio and Colorado in 2023.
• The app has a $10 million NFL Best Ball tournament — the largest season-long fantasy pool ever.
• The company has yet to disclose its total number of customers. 

BlackRock and Acies joins existing Underdog investors Mark Cuban, NFL wide receiver Odell Beckham Jr., Kevin Durant’s Thirty Five Ventures, NBA guard Trae Young, rapper Nas, and others.

Previous Round 

Underdog’s latest influx of fresh capital follows a $10 million funding round in May 2021 led by tech investor and general partner of venture fund SV Angel Kevin Carter. The round included Detroit Lions quarterback Jared Goff, ESPN’s Adam Schefter, and the Action Network.

The investment arm of Philadelphia 76ers and New Jersey Devils owner Harris Blitzer Sports & Entertainment — HBSE Ventures — also participated in Underdog’s Series A funding round.