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About The Gatorade Company

There's a reason why the product's name is Gatorade. The drink was invented during the 1960s by University of Florida doctors to help hydrate the university's football team -- The Gators. The debut lemon-lime-flavored drink has grown to become one of the top sports drinks in the US. The company has continued to create new beverages, including its vitamin-enhanced Propel Fitness Water. Its G series offers a line of beverages called G Prime 01, G Perform 02, and G Recover 03, designed to meet the fluid and nutrient needs of collegiate and professional athletes before, during, and after practice, training, or competition. It also offers energy shakes and bars. Gatorade is owned by PepsiCo.

Operations

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.

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The Gatorade Company

555 WEST MONROE STREET FLOOR 1
Chicago, IL 60661-3700
Phone: 1 (312) 821-1000

Stats

Employer Type: Privately Owned
Market Development Manager Athletic Channel: Aaron Francl
Vice President: Victoria Ingram

Employees (This Location): 1,200
Employees (All Locations): 1,210

Major Office Locations

Chicago, IL

Competitors

General Mills, Inc.
Mondelez International, Inc.
The Coca-Cola Company

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