How BLVCK DIVMOND helped CORE Hydration sell for $525 Million Dollars
BLVCK DIVMOND is proud to have helped CORE Hydration grow their brand, with a $525 million dollar purchase by Keurig Dr Pepper Inc. the latest step in their exciting growth.
The next time you reach for a bottle of water, you might be surprised to realize where it’s come from.
In an exciting move, Keurig Dr Pepper Inc. has agreed to buy Core Nutrition LLC, a maker of bottled waters and other drinks, for $525 million.
With BLVCK DIVMOND having helped CORE Hydration create their digital brand, it’s a thrill to see a former client take the next exciting step in their growth.
The Evolution of CORE
CORE has been a KDP allied brand since 2016, with KDP currently managing approximately two-thirds of the brand's U.S. distribution.
Net sales of all CORE beverages have grown at an average annualized rate of approximately 115% over the past three years, with CORE’s early growth fueled by a partnership with the BLVCK DIVMOND brand.
Current retail sales across both measured and unmeasured channels are estimated in excess of $200 million in the latest 52 weeks.
Core was founded in 2015 by Collins, a serial beverage entrepreneur known for starting brands like Fuze and Body Armor, in partnership with music producer Lukasz Gottwald, also known as Dr Luke. Other investors included celebrities like Katy Perry, Juicy J. and Diplo, as well as a variety of Hollywood executives.
This isn't the company's first foray into healthy drinks. Before it merged with Keurig Green Mountain, Dr Pepper acquired a 3 percent stake in Bai Brands LLC for $15 million in 2015. The company then upped its investment in Bai, acquiring the rest of the company the following year in a deal valued at $1.7 billion.
What next for CORE?
The deal comes amid a reshuffling of the allied, independent brands distributed by Dr Pepper Snapple Group, which was taken over by Keurig earlier this year. Pressure increased on KDP to buy Core when Fiji, another premium Hydration company in the allied brand portfolio, cut ties with KDP from a distribution standpoint.
The push for all-natural products that do not have GMOs, artificial ingredients or other additives is not stopping. Consumers want drinks that are better for their health and good for the environment at the same time. According to the Beverage Industry’s report, 62% of consumers in the U.S. want options that are more natural.
BLVCK DIVMOND predicts you can expect to see more acquisitions like this in the future by large beverage brands as they continue to focus on attracting health-conscious shoppers who want better options.
Beverage companies are looking to expand beyond sugary soft drinks to offer more variety for health conscious consumers.
There is a wider movement towards more natural beverages without artificial ingredients or additives.
With the financial success of CORE over the previous 5 year span, more acquisitions like this should be expected in the future.
BLVCK DIVMOND wishes the team at CORE all the best for the future. It was a pleasure helping grow your brand.