Karma Wellness Water is bottled using fresh, pristine spring water from Vermont, while many competing brands use filtered municipal water. BI: So you ended up working at Coca-Cola, surely that was the pinnacle for you? By clicking ‘Sign up’, you agree to receive marketing emails from Business Insider Between 2012 and 2013, the dollar sales of Vitaminwater dropped by more than a quarter. You win brand fans that way. RO: I was an executive at Coca-Cola and was part of an amazing team that made Sprite one of the coolest brands in America. An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. You've got to think about how these people influence large amounts of society. Rohan Oza is arguably one of the most successful marketing men in the US. In October 2004 50 Cent did a deal with Glacéau Vitamin Water that would go on to become one of the biggest and most successful in hip hop history.. I believed in order to make a product a success you need to … [*Update: Oza has since got in touch and said it should be Powerade]. since. I said I was going to be a partner in Vitamin Water, which was small and made around $25 million in revenue annually in 2002, and he just laughed and said "good luck with that." "vitamin water is just a big scam isn't it? RO: I believe everyone should have a share in the success, not just endorsers or myself — that's why everyone who works for me gets an equity stake early on. She managed to influence one of the biggest corporations on the planet — Apple – that's real power. Acquisitions following the Vitaminwater deal have included: Honest Tea, ZICO, Monster Beverage, and Costa Coffee. He started off his career in manufacturing in an M&Ms factory in the British industrial town of Slough. There are nine Vitamin Water Zero flavors, and since I'm obsessed, I've tried all of them and have determined which is the best. Subscriber 50 Cent is featured in ads for Vitaminwater where is reading the Wall Street Journal and retrieves the mail at his Connecticut home, Rohan Oza. My friend knew 50 Cent so we gave him a call and spoke to him and his manager. Sign up for Insider Finance. Glaceau produces three types of Vitamin Water: regular Vitamin Water, Vitamin Water 10, and Vitamin Water Zero. Vitaminwater accounted for approximately $950 million of that amount; it is substantial but nowhere near as big as the major Coke brands: Coca-Cola, Diet Coke, Sprite, and Coke Zero. Vitamin Water comes in a wide array of flavors, but they all have about the same nutrition facts, so we’ll look at Multi-V Lemonade (a-zinc). Life without water is impossible. What's your net worth? She personally drank it, comes from the Caribbean, which is where coconut water comes from, and is big on social media. We usually look for celebrities that are a natural fit. There is also the question of valuation. That makes it possible for the water to remain clear and refreshing. BI: The equity share in endorsements seems a pretty good deal. The $4.1 million acquisition sent shock waves through the soft drink world. Oza counts Taylor Swift as one of the most influential celebrities in the world. How did you get rapper 50 Cent to become part of the Vitamin Water brand? Hemp2o is an organic & herbal vitamin water beverage. everything these days gives mixed results and we never really know if something is good for us, even if it should be. She's a great example of having the exact right fit for a celebrity for a brand. As of 2020, the company has over 200 brands marketed in over 200 countries with many generating $1 billion or more in annual revenues, including big names such as Dasani, Odwalla, Minute Maid, Powerade, Sprite, and Gold Peak Tea. lol i'm actually not serious. BI: It really does sound like you live and breathe every product you market — sounds a bit hectic! The soft drink conglomerate Coca-Cola Co. (KO) is a revenue machine. Unfortunately due to terrorist activities, this stopped one of the best ways in doing that. (Oza helped grow the company's sales to $700 million a year by the time he left in 2004.). TIL VitaminWater Is Not Healthy For You and Coca-Cola, who owns Vitaminwater, was sued by a non-profit public interest group on the grounds that the company’s … Coke responded by changing the sugar content of Vitaminwater. People are smart and need a natural fit otherwise it will be too forced. What Is Coca Cola’s Acquisition of Vitaminwater? Depending on which income numbers you use, Coca-Cola brought in as much as $47 billion in revenue in 2014. Hemp2o is a hemp drink fortified with a range of B vitamins, Vitamin C, and Omega-3 fatty acids. RO: I was looking for someone who already loved the product and would be an easy fit for it. This takes out the likes of Pepsi and Coca-Cola. Danone’s water brands are taking major steps to tackle global water challenges through WeActForWater.. 50 Cent is diversifying and taking some of the money he earned from his multiplatinum album releases and investing in a beverage company. They have to create a culture around the product itself. RO: We are brainstorming on that as we speak, but not every brand needs a celebrity partner. That argument became muddier after Coca-Cola was forced into a $1.2 million settlement over a Vitaminwater lawsuit in 2013-2014. He's made millions from his success in turning food and beverage products into brands that everyone from across the globe will recognise — Vitamin Water, Pop Chips, and Vita Coco. I also love throwing parties and dancing. For example, with Vita Coco, I knew Guy Oseary (Madonna's agent) and Madonna was a fan already. Understanding Coca Cola’s Acquisition of Vitaminwater, grabbed market headlines like Glaceau's vitamin water. try a bottle today! I would hand the flight attendants drinks, the hostess on the gates, other people on the flight. In the winter I spend my time in Beverley Hills, and then in the summer I go to the Hamptons — it's a great place to relax and reminds me a lot of England. Glacéau - product division of Energy Brands..... who produced the "VitaminWater". BI: Do you ever get celebrities approaching you to get involved in products that they love? BI: How did you grow the company so rapidly? I asked my boss but he said I didn't have the necessary marketing skills. NEW 7-pack of 16.9 fl oz bottles; Infused with … RO: After going to Harrow [a famous private boarding school in Britain] and then Nottingham University, my first job was actually in a factory for Mars' M&Ms. Certain aspects of the Glacéau Vitaminwater deal make it important. Obviously now we can't take a large amount of liquids on a plane, but this is an example of how you can build up a brand culture without taking just traditional routes of advertising. Changes in marketing, ingredients, and the health lawsuit all damaged Vitaminwater over the next several years. They were great. If a celebrity endorsement is clearly forced and the people will reject it and people will tell you about it. Investopedia uses cookies to provide you with a great user experience. A leading-edge research firm focused on digital transformation. While I helped sales grow more than 30% at brands like Sprite*, it is very hard to make the same massive impact at other brands — these companies are too big and there are too many cooks in the kitchen. 50 got involved with Vitamin water in the peak of his music career in 2004, but the pay off didn't come until three years later when The Coca-Cola company purchased Glaceau for $4.1 billion. Coca-Cola spent in excess of $4 billion for a company with only $350 million in revenues. It's a zero-calorie, no-sugar added drink, infused with electrolytes to provide essential nutrients. RO: I had a party and then my boss asked where I was going. The Coca-Cola Company announced today that it will buy Glaceau, the maker of Vitaminwater, for $4.2 billion in cash. Prior to the deal in 2007, Coca-Cola announced a plan to buy back as much as $3 billion in company stock. Jay-Z, born Shawn Corey Carter, is an American entrepreneur, investor, music producer, and rapper with a net worth of $1 billion as of 2020. as well as other partner offers and accept our, NOW WATCH: Paul McCartney and Rihanna just released a music video featuring Kanye — and it's actually pretty awesome, dubbed by The Hollywood Reporter as "Hollywood's Brandfather,", 50 Cent doesn't drink alcohol and regularly drank Vitamin Water, ate healthily, and trained in the gym every day, 50 Cent was paid $5 million in cash and asked for a 5% stake in the company in exchange for his endorsement. Rappers Tony Yayo, 50 Cent, and Lloyd Banks attend Vitaminwater's MLB All-Star week celebration at Hudson Terrace on July 14, 2008. VITAMIN B1 – VITAMIN B12 – VITAMIN D3 – ATP – D-RIBOSE – CARNITINE – COENZYME Q10 – ELECTROLYTES – PH 9.0+ WHY IDRINK. Being the owner of chemical laden, toxic products such as Cascade dish-washing soap, Tide laundry detergent, Pringles potato chips, and Bounce dryer sheets, it is evident that Proctor and Gamble is less than a trustworthy and caring … The original lawsuit over Coca-Cola and Vitaminwater occurred in 2009 and was filed by The Center for Science in the Public Interest (CSPI). Now he counts 50 Cent and Rihanna — who he calls RiRi — as some of his closest celebrity business partners and friends. I always wanted to work with iconic brands and the US was the place where brands were at the time.". BI: Vitamin Water ended up selling for billions to Coca-Cola, why didn't you retire after that? Fundamental analysis is a method of measuring a stock's intrinsic value. Isaac Brekken/Getty Images That was good as we didn't have much money to give him. When it sold, though, I didn't want to retire, so I became a venture capitalist and be involved with products that I really connect with — like Vita Coco (coconut water), Pop Chips, and Bai (antioxidant infusion drinks). In 2007, the Coca-Cola Company acquired Vitamin Water from Glacéau for $4.1 billion. Mid 19th Century Chelmsford a chemist begins creating homemade soft drinks 1938 The company is acquired by James MacPherson & Co Ltd, and develops the business to introduce soft drinks as an affordable source of vitamins for the people of the UK 1949 A range of juices were launched under the name of British Vitamin Account active Coca-Cola purchased Glaceau's vitamin water in 2007 for $4.1 billion. It also satisfies your cravings for something with flavor. You can make a guess from knowing I entered Vitamin Water very early on and the company sold for $4 billion. Business Insider: How did this all come about? The Science. Analysts who follow this method seek out companies priced below their real worth. Bai solves this. The lawsuit, filed by residents of Florida, Ohio, Missouri, and the Virgin Islands, contested the possibly misleading health benefits tied to the Vitaminwater product. I believed in order to make a product a success you need to be a brand messiah, not a marketing manager. After buying Vitaminwater, Coca-Cola lowered that number substantially because of reduced cash flow. A similar story happened with Del Valle, which was purchased by Coca-Cola in 2007 and reached $1 billion in annual sales by 2010. BI: So which celebrity are you looking for to join Bai as an ambassador? Each 18-ounce, wide-mouth bottle contains only 20 calories and is free of preservatives, gluten, and lactose. He loved the product. Below, we’ll take a look at each of these varieties. Who else gets it? Coke says the lawsuit is a publicity stunt and its consumers can see what the drink is made of on the side panel of every bottle. RO: Before airports changed [referring to the September 11 attacks in 2001] I used to take products everywhere, which were mainly bottles of Vitamin Water. Review by Marugen Koi Farm. Then RiRi (pop star Rihanna) got on board and it was just perfect. The sweetened water beverage entered new markets and, by nearly any measure, performed very well. He even worked as an executive at Coca-Cola, but he admitted to Business Insider that he "quit before I got fired" because he wasn't very corporate. starstarstarstarstar 5 Star Rating Read More on Google. Through him, I got her on board and that became huge. The offers that appear in this table are from partnerships from which Investopedia receives compensation. BI: Terrorist activities? I then was moved to Powerade (another Coca-Cola brand). VitaNourish is a multivitamin water that contains essential vitamins including C, B1, B3, B12, B5 and B6 with no masking agents. Stay hydrated while you enhance your water drinking experience with the vitamins and electrolytes in the many flavors of vitaminwater. BI: So what's next on the venture list for you? Changes in marketing, ingredients, and settling a health-related lawsuit all affected Vitaminwater's business over the next several years. Deployed by the iconic water brands of Danone Waters (including evian, Volvic, AQUA and Bonafont), WeActForWater is a set of urgent actions, ambitious objectives, and new investments.. CSPI specifically contested some of the scientific and biological claims that the drink could "promote healthy joints, support optimal immune function, and reduce the risk of eye disease.". People also are growing more towards to not having artificial sweeteners, so that strips out the Diet Cokes and Diet Sprites out there too. Brexit refers to the U.K.'s withdrawal from the European Union after voting to do so in a June 2016 referendum. RO: I believed in the brand and Vitamin Water is a breakthrough product in the food and beverage industry. RO: I travel a lot. People's antennas for bull---t is a lot sharper these days. How much 50 Cent earned off the deal is unknown, but he later filed for bankruptcy. RO: If you ask me who's my favourite celebrity, it's Taylor Swift. The years subsequent to the Vitaminwater purchase saw Coca-Cola's marketing team do wonders: Vitaminwater went from annual sales of $350 million to more than $1 billion. Coca-Cola purchased Glaceau's vitamin water in 2007 for $4.1 billion. Vitaminwater went from annual sales of $350 million to more than $1 billion, and the purchase was seen as one of Coca-Cola's most ambitious and successful. Bai itself is now valued at $500 million. When and what do you do to relax? RO: Bai is my favourite in the gang in a nutshell. I said "alright, let's agree to disagree," and I left to go to Michigan in the US to study for my MBA. Coca-Cola settled for $2.7 million, with final settlement details requiring changes to the labeling and advertising of the product. Learn more about vitaminwater & vitaminwater products here. He was one of two biggest rap artists at that time — him and Jay Z. Getty They see thousands of a people on a regular basis and it just takes people with that reach to say they love something and recommend it to as many people as possible. [50 Cent was paid $5 million in cash and asked for a 5% stake in the company in exchange for his endorsement.]. Vita Coco The exact amount Coca-Cola paid to acquire Glaceau, Vitamin Water’s parent company, was $4.2 billion. By 2011, Vitaminwater had grown from $350 million in annual revenue to more than $1 billion. stay hydrated while you enhance your water drinking experience with the vitamins and electrolytes in the many flavors of vitaminwater®. But the self-depicted "brand messiah," and the man dubbed by The Hollywood Reporter as "Hollywood's Brandfather," didn't have it all handed to him on a plate. It's not big in the UK but it will be. I know business publications like to talk about net worth but I don't really like talking about it. So you have got to find who those people are to spread the word. It solves the diet dilemma — everyone wants things to taste good but without a tonne of sugar. In 2006, Glacéau Vitaminwater was owned by Energy Brands Inc. and was evaluated at roughly $2.2 billion. Did you always want to be in marketing? Rihanna in a Vita Coco advert. I helped build the brand with smart partnerships and built a bridge between Sprite and hip-hop culture and got American artists, NBA athletes on board. Some contend the company overpaid, which is something it rarely does when making acquisitions and strategic partnerships. The original drink used a combination of cane sugar and crystalline fructose, but the altered version used a blend of cane sugar and Stevia. VitaNourish water has nano ­sized vitamin particles that cannot be detected by the human eye. There are many varieties, each with an attractive name like “focus,” “endurance,” “refresh” and “essential.” I was involved with the manufacturing side but I really wanted to get into marketing. Fiddy said he didn't want or need any money for being involved, he just wanted skin in the game. a vitamin pill to hid the fact it is really sugar water." I wasn't very corporate either so I thought I would jump ship before Coca-Cola fired me. Vitamin Water Nutrition Facts. Energy Brands, Inc. bought out by Coca Cola 6/7/07. I brought Sprite to life on basketball courts and at concerts. [50 Cent doesn't drink alcohol and regularly drank Vitamin Water, ate healthily, and trained in the gym every day]. There's a statistic out there that 1 in 10 people influence the rest of us. Any way you slice it, water will always be the most important liquid on our planet. BI: What did you do after that and how did Coca-Cola take your resignation? the world’s first multivitamin water. Coca-Cola swooped in one year later and eventually purchased the brand for almost double that amount. A Little Bit of Science in Every Sip. 9. About the Company. Vitaminwater is a beverage brand owned by the Coca-Cola Company. Glacéau pioneered the enhanced water category through its Vitaminwater®, Smartwater®, and Fruitwater® brands. I throw a lot in LA and even have Western and Bollywood style dance-offs. Unlike his business counterparts who have invested in energy drinks and liquor businesses, the Queen’s bred rapper bought a stake in Glaceau, the company that owns the Vitamin Water drink. Equity typically refers to shareholders' equity, which represents the residual value to shareholders after debts and liabilities have been settled. A healthy, delicious, and nutritious drink that is best enjoyed cold for any occasion. She also rolls with a posse and a crew of people who are all beautiful females. Karma is naturally sweetened with a blend of stevia and a pinch of pure cane sugar. It reminds me of my days at Nottingham University (where Oza did his first degree), where we'd just go bowl and get pissed. But every now and again, I like to do a spot of bowling. People always say I throw the best parties because everyone dances. Within a year, Vitamin Water's sales exploded to the point where it controlled 30% of the U.S. sports water market. Unfortunately she currently sponsors a product that may not be as good for you as Bai [referring to her endorsement of Diet Coca- Cola], but you never know. Taylor's the most iconic musician and celebrity on the planet. However, few of these acquired brands have grabbed market headlines like Glaceau's vitamin water, which Coca-Cola purchased in 2007 for a then-company high of $4.1 billion. Andreea Radutoiu Prior to this, he turned around the fortunes of Powerade and Sprite by boosting revenue through some innovative brand endorsements. RO: [Laughing] Let's just say my mum is very proud. Well it was funny because we ended up selling the company to Coca Cola for $4.2 billion in 2007. Coca-Cola is an active acquirer of brands. The alternating ingredient swaps also damaged Vitaminwater's sales, particularly in 2012 and 2013. BI: So is that where celebrity endorsement comes in? RO: Not really. BI: I know you said that you have to find the right fit for a brand but surely you must have a dream celebrity to tout Bai? A merger is an agreement that unites two existing companies into one new company. He has come an incredibly long way, so Business Insider decided to sit down with him to see how on earth he managed to get out of manufacturing and into the worlds of Hollywood and marketing and as founder and CEO of Idea Merchants Capital. And yes, she would be good for Bai. Coca Cola reportedly acquired Vitamin Water from company Glacéau for $4.1 billion. They also cost the company legal fees and settlement dollars. These market-disrupting products offered consumers more flavor than bottled water and fewer calories than soft drinks, plus provided functional benefits through vitamin and mineral supplementation. well atleast anything processed. There are several types and reasons for mergers. For example, the lawsuits about Coca-Cola's health advertising. The price-to-sales (P/S) ratio of 11.7, for purchase price compared to just sales, not profits, is more than 10 times the ratio it cost for the Del Valle deal. I self-diagnosed myself with Seasonal Affective Disorder so I follow the sun, like most British explorers I suppose! It worked out and the rest was history. Others quickly joined the CSPI lawsuit, and eventually many of the class-action suits were consolidated. Luckily, Vitamin Water Zero comes in clutch. Rapper 50 Cent, an early endorser of Vitamin Water, once bragged on the song “I Get Money” that he helped the sports drink sell to Coca-Cola for billions. New Chapter, a vitamin and supplement company offering worthy products since 1892, has recently been bought out by mega-corporation Proctor & Gamble. By using Investopedia, you accept our. The stories dominating banking, business, and big deals. It has to be a good organic fit where the brand is a fan of a celebrity and the celebrity is a fan of the product. She does what she wants and isn't deterred by the press or anyone else. Many touted it as Coca-Cola's most ambitious and successful purchase to date. What do you mean? However, fans of the drink rejected the Stevia alteration, and Coca-Cola performed an about-face in 2014 and switched back to the original ingredients. RO: I believed in the brand and Vitamin Water is a breakthrough product in the food and beverage industry. Perhaps the more interesting factor is, despite the unquestioned growth of Vitaminwater’s sales since 2007, Coca-Cola probably overpaid for the brand and may have been better off just buying its own shares. The Vitamin Shoppe (formerly Vitamin Shoppe Industries, Inc., stylized as theVitaminShoppe) is an American, New Jersey-based retailer of nutritional supplements.It also operated three stores in Canada under the name VitaPath from January 2013 until March 2016. I only hire brand messiahs — they live and breathe the product, not just sell it.