Shares of Coca-Cola Co. KO, +0.51% rose 0.3% in morning trade Tuesday, after the beverage and snack giant said it bought a minority stake in premium sports drink company BODYARMOR, and will have the option to increase the stake in the future. The investment, details of which were not disclosed, will make Coke the second largest shareowner in BODYARMOR, behind Co-founder Mike Repole. The deal gives BODYARMOR the opportunity to gain access to Coke's bottling system. Wells Fargo analyst Bonnie Herzog said BODYARMOR is "one of the most exciting and fastest growing brands in the sports drink category," and she believes the deal gives Coke the opportunity to innovate and accelerate growth across its portfolio. Meanwhile, she said the deal is negative for both Keurig Dr Pepper Inc. KDP, -0.46% and PepsiCo Inc. PEP, +0.04% as it puts more pressure on Pepsi's Gatordade. Keurig's stock shed 1.1% and Pepsi shares lost 0.2%. Year to date, Coke's stock has edged up 0.2%, Pepsi shares have lost 6.0% and the Dow Jones Industrial Average DJIA, +0.47% has tacked on 2.0%.
Have breaking news sent to your inbox. Subscribe to MarketWatch's free Bulletin emails. Sign up here.