• Loading stock data...
Tuesday, November 5, 2024
The Best Employers in Sports survey is open through Nov. 6 Learn More

Sports Drink Industry Quickly Filling Up Behind Gatorade

  • BodyArmor President Brent Hastie wants to reinvent the category like Starbucks did coffee.
  • Gatorade keeps charging forward business as usual with an eye toward athletes.
BodyArmor Goalie
Aaron Doster-USA TODAY Sports

With a 70% share of the sports drink market, Gatorade is the default sports drink for most Americans. 

What makes up the rest of the sports drink category, however, is quickly blurring.

From newer sports drinks like BodyArmor and BioSteel to energy drinks like Bang and C4 to tablets and supplements like Nuun and Ladder, the category is spreading down drink aisles as consumers gravitate toward a wide swath of options to fit active lifestyles. 

At least that’s the way BodyArmor President Brent Hastie sees the category now.

The company recently surpassed $1 billion in 2020 sales, had 70% revenue growth this year, and now claims 15% market share of the “traditional” sports drink category, which doesn’t count many of the other options outside of Gatorade and Powerade.

“You’re seeing this blurring of a traditional category and those definitions will go away,” Hastie said. “[Nielsen] will still report it, but from a consumer standpoint, that whole landscape will change.” 

For the traditional sports drink companies, there is still a battle brewing for supremacy. 

BodyArmor founder Mike Repole created headlines when he said he predicts his product can dethrone Gatorade by 2025. The brand made more by building a portfolio of elite athlete partners like Mike Trout, Naomi Osaka and James Harden, who also received equity in the company.

The company also added relationships with MLS and the U.S. Open in the past year.

Gleyber Torres

Yankees Shortstop Gleyber Torres Paving Way For NextGen Baseball Marketing Stars

As the New York Yankees shortstop, 23-year-old Gleyber Torres likely could not…
August 7, 2020

Upstart Canadian drink company BioSteel is following a similar path as it grows in the U.S. market. It has deals with elite young talent like Patrick Mahomes, Connor McDavid, and Gleyber Torres. BioSteel also put together a collection of NBA partners this offseason including the Brooklyn Nets, Dallas Mavericks, Philadelphia 76ers and Toronto Raptors.

Others like Ready Nutrition — which touts reigning two-time NBA MVP Giannis Antetokounmpo and Los Angeles Rams star Aaron Donald as investors — are also pushing for their space in the market. 

With a bundle of new competitors, Gatorade owner Pepsi and Powerade parent [and BodyArmor investor] Coca-Cola have to work to maintain their powerful status.

“BodyArmor has shown the market share can be dented; you can fight your way in and gain meaningful share,” said Duane Stanford, executive editor at Beverage Digest. “There’s no reason to believe Gatorade won’t do what they need to do, whether a little late or not, to stay dominant.”

Gatorade has introduced new products to its core sports drink lineup, including Gatorade Zero and the new Bolt24 — made with watermelon water, sea salt and no added sweeteners. Bolt24 comes in three sublines: Antioxidant with Vitamins A and C; Energize with caffeine; and Restore with collagen.

The category leader also contributes to the blurring of the category, with its Protein Recovery Shakes, carbohydrate energy drinks and chews and the Gx system with unique formulas. That’s all on top of its Muscle Milk-maker Cytosport acquisition.

Gatorade G-League

Gatorade Focuses on G League As A Pathway for Innovation

Photo Credit: Steve Mitchell-USA TODAY Sports As the most active sports time…
August 28, 2019

As competitors fill out their endorsement portfolios, Gatorade hasn’t sat still either.

Along with its NFL, NBA, WNBA, NHL and MLB deals and long-term partners like Peyton Manning, Bryce Harper and J.J. Watt, the company has recently added young stars like Zion Williamson, Matthew Wolff, Damian Lillard and Fernando Tatis Jr.

Jeff Kearney, Gatorade global head of sports marketing, said the company’s focus hasn’t changed since it created the category 55 years ago: “delivering safe, scientifically-backed products that help athletes perform at their best.”

“While competition will come and go, our focus remains the same – on the athlete and helping to better their performance,” Kearney said. “Whether it be introducing new innovation, providing scientific backing to each and every product, or inspirational storytelling, we are maniacally focused on athletes at every level and helping them perform at their absolute best.”

While it might seem impossible for Gatorade to fall from the top, consumers just need to look down the beverage aisle to see a plausible future.

Hastie used coffee to describe a potential scenario, equating Gatorade to Folgers before Starbucks altered the way the world looked at the caffeinated beverage.

The transformation took decades, but now a slew of small coffee roasters have also made their way into coffee drinkers’ lives. 

The same can be seen in the beer and spirits industries where behemoths maintain the large majority of market share, but small producers have carved out a decent and meaningful chunk.

“Starbucks made premium coffee mainstream, now everyone will pay $4 to $5 for coffee,” he said. “The whole experience was reinvented, it wasn’t innovation it was a transformation.”

Stanford said for a time, it appeared Coca-Cola was trying to bookend Gatorade with the cheaper Powerade and more expensive BodyArmor.

Now, he notes Powerade is debuting new products speaking to athlete performance, like Branch Chain Amino Acid additions, that might suggest otherwise. 

Will BodyArmor or BioSteel become the sports drink equivalent of Starbucks? Only time will tell.

“There’s a constant churn of interesting stuff and a constant churn of customers,” Hastie said. “We’re premium, but that doesn’t mean I want to be a niche brand, we want to reinvent the category.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Vanderbilt Commodores fans head to the south end zone as the goal post is taken down by exuberant fans after beating No. 1 Alabama 40-35 at Vanderbilt Stadium in Nashville, Tenn., Saturday, Oct. 5, 2024.
opinion

Something New in College Football This Year: Parity

Upsets, surprises. CFB is more fun on the field than the NFL.
Sep 28, 2024; Tuscaloosa, Alabama, USA; GOP Presidential candidate Donald Trump waves flanked by former Georgia Bulldogs player Herschel Walker, recording art Kid Rock, professional golfer John Daily, Alabama senators Tommy Tuberville (R) and Katie Britt (R) during the second half of the game between the Alabama Crimson Tide and the Georgia Bulldogs at Bryant-Denny Stadium.

Mission Swing State: College Football’s Political Advertising Battle

Trump, Harris, and the PACs that support them are utilizing the sport.

The Untapped Revenue ‘Powder Keg’ of Women’s NFL Fandom

There’s a “boatload” of money at stake for brands and the league.
podcast thumbnail mobile
Front Office Sports Today

NFL Teams Face Crossroads at Season’s Halfway Point

0:00

Featured Today

Oct 19, 2024; Gainesville, Florida, USA; Florida Gators quarterback DJ Lagway (2) shakes hands while entering the locker room after a game against the Kentucky Wildcats at Ben Hill Griffin Stadium.

NIL Director Is the Trendy New Job in College Sports. But the Role Is Chaos

Athletic departments nationwide are hiring for what’s become their most important position.
FuboTV signage
opinion
October 26, 2024

Fubo’s Fight Against Streaming Giants Feels Futile

Fubo notched a legal win, but subs and stock still slump.
October 25, 2024

Inside The Wall at L.A. Clippers’ New $2B Home

FOS went inside the “contagious” energy at the L.A. Clippers’ Intuit Dome.
Sep 29, 2024; Brooklyn, New York, USA; New York Liberty guard Sabrina Ionescu (20) shoots a three point jump shot over Las Vegas Aces center A'ja Wilson (22) during game one of the 2024 WNBA Semi-finals at Barclays Center.
October 25, 2024

WNBA Facing 4 Big Business Questions This Offseason

Here’s where the WNBA can consider making upgrades after a historic year.
The stands at the Solheim Cup

LPGA Apologizes for Solheim Cup Fan Bus Debacle That Left Stands Half-Empty

The USA-Europe women’s team golf event teed off Friday morning.
October 3, 2022

Real Madrid President Renews Call for Super League

Real Madrid’s president believes that soccer is losing ground.
May 20, 2024

Top Sports Business Jobs This Week (May 2024)

Each week, our staff combs through the thousands of job listings from…
Sponsored

World Series Delivers High-Demand Marquee Matchup

The hype around the World Series matchup drove ticket prices to record levels—but the Dodgers’ dominance quickly quieted the fervor.
August 10, 2022

PGA Tour Touts Projected Earnings to Keep Players

The PGA Tour is asking its players to consider their potential futures.
August 10, 2022

Bayern Munich to Make Growth Push in U.S. Market

Bayern Munich is looking to expand its reach in the U.S.
Nintendo-logo
August 3, 2022

Nintendo Profits Underwhelm, Switch Sales Decline

Nintendo failed to meet expectations in the company’s latest earnings report.
manfred_at_microphone
August 19, 2021

MLB Owners Propose $100M Salary Floor

Major League Baseball owners have proposed a $100 million payroll minimum for MLB’s 30 teams and a lower luxury tax threshold.