How Rapper 50 Cent Made $100 Million From Energy Drink Stock By Turning It Into A Household Name

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When rapper Curtis “50 Cent” Jackson burst onto the scene in the early 2000s, his unmistakable charisma and incredible lyrical ability made him as popular in corporate boardrooms as he was among rap fans. However, 50 is more than just a rapper. He turned out to be an incredibly savvy business owner, and this is the story of how he leveraged the power of his name to make $100 million in energy drink stock.

If you go to the energy drink section of your favorite grocery or grocery store, you’ll probably notice that Vitaminwater is one of the top energy drinks. They typically take up shelf space at or around your natural eye level – prime real estate in any retail beverage section. This was not always the case.

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The energy drink sector is incredibly competitive, and gaining enough visibility to gain market share is one of the biggest challenges any new product faces. Vitaminwater experienced this problem firsthand in the early 2000s. It had a loyal following, but legacy players like Gatorade dominated the sector, largely due to the endorsement of high-profile athletes like Michael Jordan.

Vitaminwater’s parent company, Glaceau, didn’t have the financial muscle to land an athlete of Jordan’s stature, meaning it had to think outside the box when looking for pitchmen. At the same time, 50 Cent had a very innovative management group. They made a deal for 50 to feature Vitaminwater in a Reebok commercial. No one knew it at the time, but they were about to catch lightning in a bottle.

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The 50’s compensation for the initial endorsement deal involved an upfront fee and stock compensation, but he didn’t stop there. During an appearance on the “Earn Your Leisure” podcast, 50 revealed how he acquired an even bigger piece of Glaceau. 50 quietly increased his stake by purchasing stock options from Glaceau employees who didn’t want to wait or didn’t have the money to exercise their options.

Over the next three years, Vitaminwater’s sales grew from $100 million to $700 million, attracting the attention of beverage giant Coca-Cola. Coca-Cola would eventually buy Glaceau in May 2007. By the time this deal closed, 50 Cent was $100 million richer, largely due to the structure of his initial endorsement deal and visionary investments from his side.

50’s decision to get Glaceau stock as partial compensation for his endorsement was smart. Using the financial muscle he’d acquired from album sales and other endorsements to buy even more Glaceau stock was brilliant. It would turn out to be one of many good financial decisions for 50. He explained his nose for big business by saying, “I have a disease, it’s called ambition. I contracted it from the fact that I don’t have it”.

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This article How Rapper 50 Cent Made $100 Million From Energy Drink Stock By Turning It Into A Household Name originally appeared on Benzinga.com