Keurig Dr Pepper to acquire energy drink business GHOST
Headquartered in Chicago, GHOST has seen sales more than quadruple over the past three years, with GHOST Energy one of the fastest growing brands in the category.
The wider portfolio includes sports nutrition products, dietary supplements and apparel, and the 2024 launch of high protein cereals.
Keurig Dr Pepper will pay more than $1bn for the brand: starting with a 60% stake in GHOST for $990m this year, which will be followed by the acquisition of the remaining 40% in 2028 (the value of which will depend on GHOST’s 2027 performance).
Furthermore, KDP will begin investing up to $250m next year in GHOST Energy’s distribution: transitioning it from its existing agreements to KDP’s direct store delivery network.
GHOST was founded in 2016 by Dan Lourenco and Ryan Hughes, with a focus on becoming a ‘lifestyle movement that includes transparent innovative products, global distribution, immersive content, key influencer partnerships and authentic collaborations’.
To date, these collaborations have included OREO, Chips Ahoy!, Sour Patch Kids, Sonic, Drive-In, Warheads, Swedish Fish and Welch's: bringing a range of different flavors to the energy drink category.
Its range of influencers encompasses fitness experts, YouTubers, professional athletes and more: including Christian Guzman, Maxx Chewning, Sydney Cummings Houdyshell, Rod Lipsett and Kayla Lojas.
The brand is based in the US but now also distributes to more than 40 countries across the globe.
KDP: 'The energy category is poised for continued long-term growth'
GHOST will become part of KDP’s US Refreshment Beverages division.
Keurig Dr Pepper says the acquisition will ‘substantially enhance’ its presence in the energy drink category, extending its reach to new consumers. Furthermore, it gives it a path into GHOSTS other areas, such as supplements and other liquid refreshment beverages.
In 2022, Keurig Dr Pepper made a $863m cash investment in Nutrabolt: a active health and wellness company with a portfolio of brands including C4 Energy.
That agreement saw it take on sales and distribution of C4 Energy in its company owned direct store distribution territories, and take a 30% ownership stake in the brand (making it the largest investor behind founder, chairman and CEO Doss Cunningham).
GHOST Energy
A 16 fl oz can contains:
- 1,000mg Carnipure L-Carnitine L-Tartrate (designed to burn fat as fuel)
- 1,000mg taurine
- 200mg natural caffeine from coffee beans
- 150mg Alpha-GPC,
- 100mg of NeuroFactor (a coffee fruit extract and nootropic for brain performance)
- 25mg AstraGin root extracts (a patented compound derived from Astragalus root to support nutrient absorption and gut health).
- The drink contains 10 calories per 16oz serving, zero sugars, and is vegan friendly & gluten-free.
- It is for consumers aged 18+ only.
Keurig Dr Pepper already produces Venom Energy Drink; and other notable acquisitions over the last few years include Core Hydration water (acquired in 2018) and antioxidant drink Bai (acquired under Dr Pepper Snapple in 2016).
It also distributes premium hydration drink Electrolit under an agreement made last year.
Tim Cofer, KDP’s CEO, said: “GHOST is a differentiated brand with significant growth potential, and we are excited to partner with its founders to take the business to the next level.
"This acquisition strengthens our position in the attractive energy drink category, accelerating our portfolio evolution toward consumer-preferred, growth-accretive spaces through a disciplined deal structure.
“The energy category is poised for continued long-term growth, which KDP expects to increasingly capture through our platform-based approach.
"KDP’s portfolio of complementary energy brands is aligned against distinctive consumer need states, and, together, these offerings will unlock significant growth and scale benefits across our entire DSD portfolio.”
Keurig Dr Pepper’s competitors have made similar investments: PepsiCo has invested in functional energy drink and lifestyle brand Celsius; while Coca-Cola has a long-term agreement with Monster.
