Gatorade is one of the PepsiCo brands that generates more than $1 billion in sales every year. Its beverages are available in some 80 countries worldwide. Gatorade is the official sports drink of groups such as the NFL, MLB, NBA, WNBA, NHL, and MLS, as well sporting events, including the New York Marathon, Boston Marathon, Chicago Triathlon, and the Ironman World Championship.

Geographic Reach

Chicago-based Gatorade sells its products worldwide. Major markets include Austalia, Brazil, Canada, Mexico, the UK, and the US.

Sales and Marketing

The company offers its products through supermarkets, convenience and specialty stores, and online.

Financial Performance

Gatorade is part of the PepsiCo Americas Beverages segment (PAB) of its parent company. PAB generated 32% of Pepsi's total $66 billion in 2013 sales, but the segment experienced a 2% drop in sales versus 2012, to $21.1 billion. The company blamed volume declines. Sales fell by 5% in the previous annual comparison.

Strategy

In 2014 PepsiCo discontinued Gatorade Naturals and G2 Naturals saying they did not resonate with its core consumers. The line had limited distribution to select Whole Foods and Kroger supermarkets. PepsiCo has faced legal challenges over its use of the word "natural" and in 2013 settled a lawsuit by removing "all natural" from its Naked line of juice drinks. However, Gatorade Natural, which was made with sea salt, was not the subject of any litigation. In 2013 Gatorade stopped using brominated vegetable oil as an ingredient in citrus versions of the sports drink amid concern about possible health effects.

Company Background

The company came under the ownership of PepsiCo in 2001 following the cola and snack giant's $13 billion purchase of The Quaker Oats Company. Gatorade is part of PepsiCo Americas Beverages (PAB), one of Pepsi's largest business segments.