Gatorade delivers $7.5B in annual revenue, more than 15% of PepsiCo's beverage salesgatorade
The shrinking sports-drink market is a "hazard to watch out for," as sales at Pepsi-owned Gatorade and Coca-Cola-owned Powerade have "declined for two consecutive years," according to John Stoll of the WALL STREET JOURNAL. Sports drinks are "increasingly seen as unhealthy and inferior to electrolyte-rich organic concoctions such as ROAR, kombuchas, coconut waters or myriad other options crowding grocery aisles." PepsiCo CEO Ramon Laguarta is "laying Gatorade comeback plans that will be closely watched by the company’s investors and executives in other industries." The brand, purchased by Pepsi in '01, delivers $7.5B in annual revenue, or "more than 15% of the company’s beverage sales." A successful turnaround of such a "significant chunk of Pepsi’s operation would deliver a potential blueprint to other companies struggling with aging megabusiness units." At Gatorade, "revenue growth has stalled, but it remains the biggest player in a global sports-drink market" that delivered $18B in annual sales for three consecutive years. However, the athletic crowd is "gravitating toward sports-drink upstarts like BodyArmor." Gatorade Organic, introduced in '16, has "seen little traction." However, Gatorade Zero, a sugar-free drink introduced in '18, has "fared far better" and has already reached $500M in sales. Pepsi this summer is "launching Bolt24, a water infused with watermelon and sea salt that could better compete with BodyArmor" (WALL STREET JOURNAL, 7/28).
