Last Updated on 07/17/2021 by GS Staff
Can You Buy Gatorade Stock?
You cannot purchase Gatorade stock. The brand is owned by PepsiCo. While Gatorade is not publicly traded, you can buy shares of Pepsi. Pepsi trades on the Nasdaq under the ticker symbol PEP. Shares are widely available through online brokers. Keep in mind that an investment in Pepsi is much more than just an investment in Gatorade and the obvious Pepsi. Read on to view the primary brands owned by PepsiCo.
When Did Pepsi Acquire Gatorade?
Quaker Oats purchased a company called Stokely-Van Camp in 1983 for $220 million. You likely know Van Camp today from its canned chili and beans. However, the company also owned the rights to produce Gatorade. Quaker’s primary reason for acquiring Stokely-Van Camp was not for the beans and chili but for the popular Gatorade. Quaker was responsible for greatly expanding Gatorade’s international distribution through the 1980s and 1990s. The sports drink brand was available in 47 countries by 1998.
Quaker was sold to PepsiCo in 2001 for $13.8 billion. It was believed by some experts that Pepsi would hold on to the fast-growing Gatorade and relatively quickly sell off the slower-growing food business. At the time, Gatorade represented about 40 percent of Quaker’s sales and this was projected to continue to increase. PepsiCo proved to be loyal to Quaker and still owns the brand today along with Gatorade.
The sale of Quaker to PepsiCo did not go down without a battle. In 2001, Gatorade had approximately 80 percent of the sports drink market. For comparison, Coca-Cola’s Powerade only had 11 percent market share and Pepsi’s sports drink called All-Sport only had a 3 percent share at the time. This not only had Pepsi salivating to acquire Gatorade but also its rival, Coca-Cola, was eager to add Gatorade to its brand portfolio. Coke nearly purchased Quaker in November 2000 for $15.75 billion in stock but the board reportedly nixed the deal. Danone also was said to have interest but backed down.
What Does Pepsi Own?
In addition to Gatorade, PepsiCo owns many well-known brands. Here are several of the most noteworthy brands owned by the company:
- Pepsi – the cola brand that is a rival of Coke
- MTN Dew – the citrus soda brand popular with younger adults
- Tropicana – a top-selling orange juice brand
- Mug – a popular brand of root beer with a bulldog mascot
- Aquifina – the premier water brand of Pepsi that competes with Coke’s Dasani, Poland Spring, and others
- AMP Energy – AMP is an energy drink that takes on Red Bull, Monster, and similar beverages
- Lipton – Pepsi has a joint partnership with Litpon to produce brands such as Brisk and Pure Leaf
- Cheetos – a brand of cheese flavored puffed corn
- Cracker Jack – the carmel popcorn and peanut brand popular to eat by fans at baseball games
- Lay’s – one of the worlds most popular potato chip brands
- Rold Gold – a top brand of pretzels in the United States that takes on its rival Snyder’s of Hanover, among others
- Tostitos – a brand of tortilla chips and dips
- Rice-A-Roni – the boxed rice brand that is a subsidiary of Quaker Oats
- Quaker Chewy – the chewy granola bar brand is a favorite for snacks or as a lunch side
Gatorade is one of the many brands of PepsiCo. Of course, you should not invest in Pepsi simple because you like Gatorade. Many other brands, including several that are not listed above, contribute positively or potentially negatively to Pepsi’s revenue. Unfortunately, there likely won’t be a Gatorade stock in the foreseeable future that is a pure-play of Gatorade products. The closest you will get to investing in Gatorade is by purchasing Pepsi stock and all that comes with it.
Image Credit – Mike Mozart/flickr
Hunsinger Benbow, D. (2020, October 7). The fascinating tale of Gatorade’s Indy beginnings: ‘99.9% of Indiana does not know this’. The Indianapolis Star. https://www.indystar.com/story/sports/2020/10/06/fascinating-tale-gatorades-indy-beginnings/5873513002/.
Forbes Magazine. (2013, June 6). Pepsi Bought Quaker. Now What? Forbes. https://www.forbes.com/2001/08/02/0802topnews.html?sh=416cc3356e5c.
Sachdev, A. (2018, August 28). PEPSICO AGREES TO BUY QUAKER. chicagotribune.com. https://www.chicagotribune.com/news/ct-xpm-2000-12-04-0012040181-story.html.