Keurig Dr Pepper will buy energy drink maker Ghost for more than US$1 billion

This Thursday, April 28, 2016, photo shows bottles of Dr. Pepper on a store shelf at Quality Cash Market in Concord, N.H. (AP Photo/Jim Cole)

New York — Keurig Dr Pepper will expand its energy drink business by acquiring the brand Ghost for more than US$1 billion.

The range of Ghost’s energy drink flavors, in partnership with sweet brands like Sour Patch Kids and Oreo, sets Keurig up to appeal to a younger audience, the company said in a statement Thursday. Keurig CEO Tim Cofer said in an earnings call Thursday that the brand appeals to “Genzennials.”

“These beverages satisfy a near-universal consumer need for energy and alertness, which is increasingly relevant in a world with significant demands on our time and attention,” Cofer said.

Ghost’s net sales have quadrupled over the past three years, Keurig said in its statement.

This is the biggest deal Keurig has signed off since acquiring Dr Pepper Snapple Group in 2018 for nearly US$19 billion in cash, according to the Wall Street Journal.

The move also aligns with Keurig’s expansion into energy, sports and ready-to-drink brands. The company first acquired a stake in C4 Energy in 2022 before partnering with Black Rifle Coffee Company this year to distribute its energy drinks.

Keurig Dr Pepper Inc. will acquire Ghost in two stages, paying US$990 million in cash for 60 per cent of the company by early 2025, then will buy the remaining stake in 2028, according to the statement. The deal includes Ghost’s sports nutrition business and energy drink arm.

Ghost’s co-founders, Dan Lourenco and Ryan Hughes, will continue to lead operations, according to Keurig.

“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,” said Lourenco.