American rapper and actor 50 Cent’s Vitaminwater deal was more than a conventional celebrity endorsement. The rapper became a stakeholder in Glacéau, the company behind Vitaminwater, through his association with the Formula 50 flavor. When Coca-Cola acquired Glacéau in 2007, Forbes reported that the deal resulted in a roughly $100 million gain for 50 Cent, whose real name is Curtis James Jackson III.
Coca-Cola bought Vitaminwater maker Glacéau for $4.1 billion
In May 2007, Coca-Cola revealed that it reached an agreement to buy Energy Brands, called Glacéau, and its lines of enhanced water, such as Vitaminwater, in a deal worth $4.1 billion in cash. The acquisition was finalized on June 7, 2007.
Coca-Cola’s filings later confirmed that the company acquired Glacéau for approximately $4.1 billion. The transaction initially involved a 71.4% interest, with Coca-Cola later acquiring the remaining 28.6% interest associated with Tata.
50 Cent received an equity stake in Glacéau
The Grammy-winning Crack a Bottle rapper’s connection to the company went beyond promoting Vitaminwater.
Forbes reported in 2008 that rapper had received a stake in Glacéau as compensation for promoting the Formula 50 Vitaminwater flavor. The publication also reported that he continued to add to his holdings over the years.
This makes the deal different from a straightforward celebrity endorsement arrangement: 50 Cent held an equity interest in the company behind the product he was promoting.