Dive Brief:
- Keurig Dr Pepper unveiled a series of changes to its executive ranks on Monday, including the creation of a position to oversee its fast-growing energy drinks business. Justin Whitmore, who previously served as the company’s chief strategy officer, will run the segment that includes Ghost and a stake in C4 Energy.
- The company named Eric Gorli as president of its $9 billion U.S. refreshment beverage operations that include soft drinks, tea and energy.
- Keurig Dr Pepper also named Sean Cronican as its chief customer officer and Drew Panayiotou as its chief marketing officer. The executives will report to CEO Tim Cofer.
Dive Insight:
While Keurig Dr Pepper is best known for the beverages within its name, the company has moved aggressively in recent years to broaden its presence in trendy, fast-growing categories through partnerships and acquisitions.
Today, it owns Bai, Core, Snapple, 7Up, Crush, Nantucket Nectars and Yoo-Hoo, among other brands. It also has investments in Chobani through an earlier investment in coffee maker La Colombe and non-alcoholic beer producer Athletic Brewing. But one of its biggest deals came last year, when Keurig Dr Pepper purchased energy drink maker Ghost for more than $1 billion.
Keurig Dr Pepper has dabbled in the sector before, buying a 30% stake in Nutrabolt, the maker of 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.
Still, spending more than $1 billion indicated that Keurig Dr Pepper was serious about energy. By naming Whitmore to run the operation, the company can give it more specialized attention, especially as it goes up against heavyweights such as Red Bull, Monster and Celsius.
Energy generates more than $1 billion in annual retail sales at Keurig Dr Pepper, the company said, and the new role will help it “realize the substantial growth ahead.”
Meanwhile, Gorli’s appointment will provide an experienced leader who is intimately familiar with the beverage landscape, Keurig Dr Pepper’s strategy and changing consumer preferences. Keurig Dr Pepper has a portfolio of more than 125 owned, licensed and partner brands that cover many different types of beverages, the company said on its website.
Gorli replaces Andrew Archambault who is leaving to run Hershey’s U.S. confection business next month.
Gorli, who joined the company in 2015, has nearly 30 years of experience in the beverage industry, including nearly two decades at Coca-Cola. During his time at Keurig Dr Pepper, he has been involved in many facets of the business such as pricing, promotional and growth strategies. He most recently served as its chief commercial officer.
“KDP is evolving our leadership structure to drive the next phase of our growth,” Cofer said in a statement. “We have been intentional about building a deep bench of talent, and we are fortunate to have leaders who are seasoned, forward-thinking and ready to step into these critical roles.”
