BodyArmor burst onto the sports drink scene promising “Superior Hydration” and a healthier alternative to rivals. Consumers drank it up, until a sugary truth landed the brand in legal hot water. What came next was a masterclass in flipping a crisis into a catalyst for growth.
📊 Snackable Stat: 67x ROI
That's what Kobe Bryant's estate earned when Coca-Cola acquired BodyArmor in 2021, turning his $6 million investment into over $400 million.
Here’s what you’ll learn:
How athlete equity deals created alignment that traditional endorsements couldn't
Why Coca-Cola paid $5.6 billion for a brand still in the midst of a lawsuit
The strategy that turned "dressed-up soda" accusations into an $8 billion valuation
"Dressed-Up Soda Masquerading as a Health Drink"
By the late 2010s, BodyArmor was winning over health-conscious consumers with a simple pitch: it was the better-for-you sports drink. Clclnut water, natural ingredients, vitamins and “Superior Hydration” made it easy to choose over the old-school competition.
Customers bought in.
Between 2015-2020, BodyArmor’s US market share went from basically nonexistent to 9.3%, pushing past Powerade to claim the number three spot. By 2019, the brand was pulling in close to $700 million in retail sales.
Then came the lawsuit.
In 2020, a class-action complaint slammed BodyArmor for selling “unlawfully fortified junk food” dressed up as a wellness drink. The complaint pointed out that a 16-ounce bottle packed 36 grams of sugar, or roughly the same as a can of soda. That blew past the American Heart Association's daily added sugar limit for women by 11 grams and hit the full recommended max for men. The lawsuit didn't mince words, calling BodyArmor "a dressed-up soda masquerading as a health drink. It also noted BodyArmor’s labels showed fruit imagery and boasted of vitamins and “natural” goodness, potentially misleading consumers into thinking it was significantly fruit-based and good for them.
The company caught a break when a judge dismissed the "Superior Hydration" claims as harmless marketing hype. However, the case moved forward on the fruit labeling and health claims, and an updated complaint made the accusations harder to shake. Notably, BodyArmor had already told the Council of Better Business Bureaus it had no concrete evidence its drink hydrated better than water or any other sports drink on the shelf.
For a brand staking everything on being better-for-you, this wasn't just a run of bad press, it was a full-on credibility crisis. Body Armor faced a serious reputational challenge. Was it truly what it claimed to be or just sugary hype?
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The $20M Answer to Courtroom Accusations
BodyArmor's response to the lawsuit wasn't retreat. It was acceleration. In May 2020, just months after the filing, the brand launched "Only You," a $20 million campaign featuring elite athletes including James Harden, Mike Trout, and Megan Rapinoe. It was the most expensive marketing push in company history.
The message sidestepped sugar entirely. "No matter who you are, only you can make you better" positioned BodyArmor as the drink for serious athletes, shifting focus from nutrition labels to performance credibility. While plaintiffs questioned health claims in court, BodyArmor flooded sports media with athlete endorsements.
The brand leveraged partnerships it already had. Major League Soccer's 2019 deal became proof that professional leagues trusted BodyArmor. More importantly, athletes like Trout, Harden, and Naomi Osaka weren't just spokespeople—they owned equity in the company. Their financial stake made endorsements more credible than standard paid partnerships.
The legal strategy was equally calculated. When a judge ruled in June 2020 that "Superior Hydration" was just marketing puffery, BodyArmor caught a break. The case continued on fruit labeling, but the brand avoided any admission of wrongdoing. By June 2022, it settled quietly with confidential terms. No apology, no forced reformulation.
BodyArmor's existing product lineup helped its defense. BodyArmor Lyte, launched in 2017, offered a 20-calorie option with natural sweeteners. The brand could point to variety without scrambling to reformulate. Packaging had always emphasized coconut water, potassium, and no artificial colors—giving BodyArmor cover that its positioning was about ingredients, not just sugar. Coca-Cola's distribution network and the athlete-first narrative would prove whether the strategy could overcome courtroom accusations.
The $5.6B Payoff
The strategy worked. Despite the active lawsuit, sales jumped from roughly $700 million in 2019 to over $1 billion by 2020, growing at 50% annually. By 2021, BodyArmor hit $1.4 billion in sales and surpassed Coca-Cola's own Powerade to become the number two sports drink in America, trailing only Gatorade.
That growth caught Coca-Cola's full attention. In November 2021, seven months before the lawsuit would settle, Coke paid $5.6 billion to acquire the remaining 85% of BodyArmor it didn't already own. The deal valued the brand at $8 billion total, making it Coca-Cola's largest brand purchase in history. The acquisition happened while the case was still active, proof that Coke saw the legal risk as manageable compared to BodyArmor's market momentum.
The athlete-equity strategy paid off spectacularly. Kobe Bryant had invested roughly $6 million for a 10% stake in 2014. His estate received over $400 million from the sale, a 67-fold return. Other athlete investors like Mike Trout and James Harden walked away with eight-figure payouts. Their early bet on ownership instead of endorsement fees turned into generational wealth.
When the lawsuit finally settled in June 2022, the terms stayed confidential. No admission of wrongdoing, no forced product changes. Coca-Cola kept BodyArmor as a standalone business unit in New York, preserving its startup culture and health-focused positioning. The brand that faced a credibility crisis over sugar content had proven something more valuable: that athlete credibility, aggressive marketing, and strategic legal maneuvering could turn controversy into a multi-billion-dollar exit.
Here are the takeaways you can apply:
A credibility crisis can be a catalyst for reinvention. When consumer trust breaks, the fastest path forward isn’t PR - it’s product. BodyArmor faced false-advertising claims head-on by reformulating, not reframing, proving that fixing the root problem is better than spinning the story.
Shift the narrative before critics define it. While the lawsuit focused on sugar content, BodyArmor shifted the narrative to athlete credibility and performance. When facing criticism, double down on what you do better than competitors rather than getting defensive about your vulnerabilities. Define the terms of the debate before critics can.
Turn endorsers into owners. BodyArmor gave athletes equity stakes instead of endorsement fees, creating authentic advocacy no paid campaign could match. Giving partners skin in the game through equity, revenue share, or performance incentives can transform hired advocates into true believers.
One marquee partnership beats a thousand customer testimonials. Major League Soccer's official endorsement gave BodyArmor instant legitimacy while facing health claims. When professional leagues choose your product, customers assume you've been vetted by experts. Institutional validation from respected organizations accelerates trust-building far beyond what paid advertising can achieve.
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🍫 Power Numbers
9.3% - BodyArmor’s share of the U.S. sports drink market in 2020
12% - market share as of 2025, third behind Gatorade and Powerade
280x - Sales growth over 9 years
2 -The number of exits to Coca-Cola that BodyArmor founder, Mike Repole has after having previously also sold Vitamin Water
$5.6 Billion – The price Coca-Cola paid in 2021 to buy the remaining 85% of BodyArmor
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