How much did coke buy vitamin water for?

Looking for an unusual topic to discuss? Want to know how Coca-Cola Company (Coke) acquired Vitaminwater at a whopping price? Well, it’s pretty interesting and mysterious. We all have heard of the multi-million dollar acquisition of brand names like Instagram, YouTube, or WhatsApp. But what you might not know is that back in 2007, Coca-Cola actually bought out a vitamin-enhanced water company called Vitaminwater. The deal turned out to be one of a kind and made headlines in every news publication globally.

Acquisition Details

So let’s get straight into the details…

In 2007, Coca-Cola purchased New York based Glacéau which specializes in producing flavored mineral bottled water brands like smartwater®, FRUITWATER®, and the popularly known VITAMINWATER® By making this move, Coca-cola dramatically shifted its focus from selling carbonated drink products only to incorporating non-carbonated beverages by acquiring stable growth sources within their industry.
The purchase included other Glacéau trademark beverage lines such as Diet Cherry Vanilla Coke which failed to make waves once it hit store shelves.
The total cost for this venture was USD 4.1 billion plus another $500 million performance-based payment earned later on.

The Beginnings

Let me take you back further; During the late nineties, corporate America started shifting lifestyle change-friendly options targeting health enthusiasts seeking alternative ways rather than regular soda products filled with sugar content amounting up to dozens of grams per serving size ‒the American Heart Association recommends no more than six teaspoons added sugar consumption! That dietary advice hasn’t been entirely followed through but I digress…

Despite their popularity- bottle water companies found themselves facing criticism over environmental concerns surrounding plastic waste disposal issues where production produced billions more bottles each year causing pollution problems due to the difficulty in recycling materials. That is where a company called Glacéau came into play.

In 1996 New Yorker, J Darius Bikoff founded Glaceau to provide consumers with healthy alternative beverages containing essential vitamins and minerals. By adding plant-based immune-boosting nutrient source Echinacea, +50% C grade dose aka ascorbic acid (vitamin c) to purified water ‒the first mainstream flavored bottled drinks were born!

Vitaminwater A Hit

Once introduced to the public, sales rocketed so fast that investors like bikoff realized there was a significant market gap for his niche products- skyrocketing demand which grew larger than small company’s production capacity exponentially.

VITAMINWATER® became deliciously popular – turning out to receive immense recognition from various health-conscious groups and Younger millennials exhausted by what they termed “boring” old plain drinking water!

Everything seemed pretty stable when Coca-Cola saw growth potential harmonizing well with their long-term performance objectives decided it best fitting for them strategically taking over VITAMINWATER® along with other sub-brands under glaceau’s umbrella of multibillion-dollar worth properties. This step took place at one of the most challenging times during economic adversity experienced worldwide; yet this product category didn’t feel the effects as severely -what timing!

And who can blame them? It was undeniably an excellent business decision considering how much people loved it already (seriously you could find vitaminwater all over social media).

So… How Much Did They Spend on this Acquisition?

The amount paid for Vitaminwater remains undisclosed but is believed around $4 billion dollars are being thrown around casually in conversations.

Even though no official figure has been given, many sources have found some hints here and there about how much money changed hands during this transaction between Coke & Vitamin Water without launching a formal press release disclosing actual figures involved. Though the financial terms agreed between both parties unknown, it’s seen as one of the most expensive beverage industry transactions ever! Wow.

Conclusion

In conclusion, Coca-Cola paid over $4 billion dollars to acquire Glacéau and Vitamin Water in an effort to enter non-carbonated beverage markets. This action was one that demonstrated a paradigm shift within leading global companies away from regular soda products into more health-conscious ones enhancing growth opportunities for those willing to move with changing trends.

Vitaminwater became such a hit brand amongst consumers which resulted in Coca-Cola solidifying their presence by integrating these flavoured bottled water brands ‒smartwater®, FRUITWATER® now available globally thanks partly due strategy further diversification needed after facing declining demand from traditional carbonated drinks offered- making some strategic changes resulting in long-term business gains always make sense right? Now you know how much coke spent acquiring vitamin water!

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