Dive Brief:
- Keurig Dr Pepper is buying energy drink maker Ghost for more than $1 billion, the companies said in a statement.
- The beverage giant plans to spend $990 million initially to acquire a 60% ownership stake in Ghost. In 2028, Keurig Dr Pepper will acquire the rest of the business.
- The acquisition further deepens Keurig Dr Pepper’s presence in the fast-growing energy drink space and increases its ability to reach new consumers throughout the day. It previously has invested in other energy brands and owns Venom Energy.
Dive Insight:
The $19 billion energy drink space has been a popular source of M&A activity in recent years. Monster Beverage purchased Bang in 2023 out of bankruptcy, while PepsiCo has purchased a stake in Celsius and acquired Rockstar for nearly $4 billion.
Keurig Dr Pepper has dabbled in the sector before, buying a 30% stake in Nutrabolt, the maker of energy drinks such as C4 Energy and Xtend Energy, for $863 million in 2022, and investing in A Shoc earlier that same year. It also signed on in September to sell and distribute Black Rifle Coffee’s new line of ready-to-drink energy beverages.
Despite its ties to these other products, Keurig Dr Pepper likely was enamored by Ghost’s growth, which led it to pursue an acquisition. The brand’s net sales have more than quadrupled during the past three years, Keurig Dr Pepper noted. Ghost, which was founded in 2016, also is one of the fastest-growing brands in the energy category with its unique identity, distinctive flavors and packaging.
“GHOST is a differentiated brand with significant growth potential,” Tim Cofer, Keurig Dr Pepper’s CEO, said in a statement. “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.”
He added that the beverage manufacturer’s portfolio of energy brands is “aligned against distinctive consumer need states, and, together, these offerings will unlock significant growth and scale benefits across our entire (direct store delivery) portfolio.”
Beyond energy drinks, Ghost also manufactures protein and supplement powders and has collaborated with General Mills on a high-protein cereal.
Keurig Dr Pepper also said it expects to invest up to $250 million starting in mid-2025 to transition Ghost’s existing distribution agreements before selling and distributing the brand through its own delivery network.
While Keurig Dr Pepper is best known for the signature drinks within its name, it has rapidly grown its beverage portfolio through acquisitions and by taking stakes in smaller businesses.
Today, it owns Bai, Core, Snapple, 7Up, Crush, Nantucket Nectars and Yoo-Hoo, among other brands. It also has invested in coffee maker La Colombe and non-alcoholic beer producer Athletic Brewing. Keurig Dr Pepper’s portfolio has evolved to give it an opportunity to sell to consumers across more occasions, from coffee, water and juice to soda, tea and non-alcoholic drinks and mixers.
With the energy drink space dominated by Red Bull, Monster and Celsius, plus the presence of countless other brands, the backing of Keurig Dr Pepper’s marketing and distribution prowess will increase Ghost’s chance of success in an increasingly competitive marketplace. Ghost has stood out with its unique flavors, including Electric Limeade, Sour Patch Blue Raspberry and WarHeads Sour Green Apple.
“As we thought about our company’s next chapter, KDP’s track record of cultivating disruptive brands, similar challenger mindset, and shared vision for the energy category and beyond made it the right home for our brand and team,” Dan Lourenco, Ghost’s co-founder and CEO said. “We are excited to pair KDP’s insights and capabilities with our products and people and know that together we will continue to scale and build GHOST towards our vision of a 100 year brand.”
