meta_pixel
Tapesearch Logo
Log in
Business Wars

Gatorade Sweats the Competition | Be Like Mike | 2

Business Wars

Audible

History, David Brown, Business, Management

4.613.5K Ratings

🗓️ 4 March 2026

⏱️ 36 minutes

🧾️ Download transcript

Summary

It’s the early 1970s, and Gatorade isn’t just the leader in sports hydration — it is sports hydration. No other competing brand comes close. But that dominance won’t last forever. Soon, Gatorade must fend off challenges from soft-drink giants Coke and Pepsi. Will enlisting the world’s greatest athlete and spokesperson keep them ahead of the game? 

Audible subscribers can listen to all episodes of Business Wars ad-free right now. Join Audible today by downloading the Audible app.


See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Transcript

Click on a timestamp to play from that location

0:00.0

It's 1972 and nearly five dozen people are dialing into the same conference call.

0:16.0

They're the members of the Gatorade Trust, a group formed by Gatorade's original inventors and early backers.

0:22.6

What started as just nine people has since grown to 46 members, and each of them receives

0:28.6

a percentage of the royalties from every gallon of Gatorade sold.

0:33.6

By now, this adds up to real money.

0:36.6

But on this call, the Trust faces an uncomfortable decision, whether to accept a settlement

0:42.0

that gives part of these royalties to the University of Florida.

0:46.5

No one on the line is happy about this possibility, because years earlier, the university

0:52.0

had its chance and passed. When Gatorade's primary inventor, Dr. Robert

0:57.3

Cade, first approached the school about helping develop Gatorade as a business, the university

1:02.5

said no. So Cade and his team of researchers took the formula elsewhere, eventually partnering

1:08.5

with the food and beverage company Stokely Van Camp, and

1:12.2

Stokely ran with it.

1:14.1

They launched Gatorade as a supplier and sponsor for sports teams around the country,

1:18.6

and then pushed it into supermarkets nationwide.

1:21.4

By 1972, Kate estimates that the trust is earning somewhere between $25,000 and $2.5 million a year, or between $200,000 and $19 million today.

1:36.3

That's when the University of Florida reconsidered their position. The school sued the Gatorade

1:41.9

Trust for back payments and a share of future royalties.

1:46.4

Then, the situation got messier.

1:49.6

The U.S. government stepped in, arguing that because federal grants helped fund the original research,

1:55.8

they also had a legitimate claim on Gatorade.

1:59.4

Now, the legal bills are piling up, the royalties are

...

Please login to see the full transcript.

Disclaimer: The podcast and artwork embedded on this page are from Audible, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Audible and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright © Tapesearch 2026.