Keurig Dr Pepper Paying Nearly $1B for Major Stake in Ghost

Keurig Dr Pepper (KDP) is expanding its reach within the energy drink sector. The company is acquiring 60% of energy drink maker Ghost for $990 million, with the deal projected to close in late 2024 or early 2025. KDP intends to buy the other 40% in 2028.  

With more and more consumers, especially younger people, turning to fitness and lifestyle products, the energy drink business is surging, so acquiring Ghost could be a very strategic move. Keurig Dr Pepper got majorly involved in the energy drink market when it purchased a 30% stake in Nutrabolt, the beverage company behind the C4 Energy brand, for $863 million two years ago.

“The energy category is poised for continued long-term growth, which KDP expects to increasingly capture through our platform-based approach,” said Keurig CEO Tim Cofer. “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.”

Keurig Dr Pepper also got into another growing market section in 2022 — non-alcoholic beer. The Schweppes brand-owner purchased mock ale maker Athletic Brewing for $50 million.

What Is Ghost?

Under the leadership of Dan Lourenco and Ryan Hughes, Ghost was launched as a sports nutrition brand in 2016. Its line of workout and brain-enhancing supplements was among its most popular offerings.

Brand recognition skyrocketed through a 2020 partnership with Anheuser-Bush InBev to produce the Ghost energy beverage. To create many of its unique signature flavors, Ghost worked with other brands like Sour Patch Kids, Swedish Fish, and Warheads.

Even after KDP’s acquisition of Ghost is complete, Lourenco and Hughes will remain in charge of the brand. According to Cofer, Ghost is a “standout brand,” and Keurig Dr Pepper’s strength in the beverage market will provide added exposure “to a whole new wave of Ghost consumers.”

Ghost will be folded into Keurig Dr Pepper’s refreshment beverages division. Around the middle of next year, KDP intends to invest $250 million to move Ghost’s distribution agreements and will start marketing the brand through its established delivery network.