The Memphis Grizzlies point guard is the focus of a major brand overhaul for Coca-Cola’s sports drink.
(Bloomberg) — Powerade has signed a multiyear endorsement deal with NBA star Ja Morant to be its new face as the sports-drink label undergoes a comprehensive overhaul under new management.
As part of arrangement, Morant will appear in television commercials, billboards, store displays and events for Powerade’s relaunch, set to debut this month ahead of the NCAA’s March Madness basketball tournament. Executives say it will be the biggest marketing blitz in the brand’s 36-year history. Financial terms weren’t disclosed.
“Once the opportunity came, I accepted. It was something I really couldn’t pass up,” Morant said in an interview. “It’s big-time.”
Powerade, owned by Coca-Cola Co., was placed under the purview of its Bodyarmor division at the beginning of the year, giving new management the task of reinvigorating a hydration brand that had fallen far behind PepsiCo Inc.’s industry leader Gatorade. Coca-Cola bought full control of Bodyarmor for $5.6 billion in 2021 to fight for more market share in the sports-drink sector.
With Morant as its new pitchman, Powerade is spending more than $10 million on national TV commercials, digital ads and radio spots in the coming year. After the basketball tournament, the brand will also appear at the Women’s FIFA World Cup this summer and during college football in the fall.
Powerade’s makeover also includes a new formula and new packaging that’s now being rolled out to stores. The reformulation includes the addition of vitamins C and B12, while the new look features more colorful labels.
Bodyarmor Chief Executive Officer Fed Muyshondt said in an interview that Bodyarmor and Powerade are each embarking on new five-year plans in an effort to join forces and take on Gatorade. He said the next phase of Powerade’s transformation will begin next year, with all-new products that have more functionality.
“Success is all tied to growth. The goal of the combination of Bodyarmor and Powerade is to become the No. 1 player in sports hydration,” Muyshondt said. “We have a one-two punch to take out the champ, and that’s what we’re trying to do here.”
It will be an uphill battle: Bodyarmor’s sales fell in the last quarter as its parent company’s global revenue rose 7%. CEO James Quincey said on a conference call in February that management expected early integration issues for Bodyarmor, but the problems were worse “than we expected or would have liked.”
As Powerade prepares itself for competition, the 23-year-old Morant is also trying to figure out how to achieve his goal of becoming a billionaire by age 30. Last year, Morant and the Grizzlies agreed to a five-year, $193 million contract extension. He’s been adding endorsement deals as he rose to All-Star status in the NBA, signing with Apple Inc.’s Beats by Dre and Nike Inc., which unveiled his first signature shoe, the Ja 1, in December.
“You’re going to see Ja Morant everywhere,” Muyshondt said.
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