Keurig Dr Pepper Acquires Ghost for $1B+
The addition of Ghost to KPG’s portfolio targets Gen Z and their propensity for functional energy drinks, gaming, and music festivals
Keurig Dr Pepper (KDP) has entered into a definitive agreement to acquire Ghost Lifestyle and Ghost Beverages LLC, a sports nutrition brand known for its attention-grabbing packaging and youth-centric flavor crossovers from Warheads, Cinnabon, Sour Patch Kids, and more.
The deal sees KDP making an initial cash investment of approximately $990 million in exchange for a 60% ownership stake in Ghost and acquiring the remaining 40% stake in 2028. The sides say the initial phase is expected to close later this year or in early 2025. Beginning mid-2025, KDP intends to invest up to $250 million to transition Ghost Energy’s existing distribution agreements.
Ghost co-founders Dan Lourenco and Ryan Hughes will continue to lead the sports nutrition brand, which will now operate as part of KDP’s U.S. Refreshment Beverages segment.
Founded in 2016, Ghost reports that its net sales have more than quadrupled over the past three years, with its Ghost Energy line among the fastest-growing in the energy category. In addition to its pre-workout, intra-workout, post-workout, and hydration products, Ghost offers supplements for sleep, joint health, weight management, gaming, and high-protein cereal.
KDP CEO Tim Cofer stated that Ghost is a differentiated brand with significant growth potential.
“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.
“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.”
The deal comes as other food and beverage titans continue to invest and acquire energy drinks, sports nutrition, and “better-for-you” food brands. PepsiCo, which owns a substantial stake in Celsius, recently acquired the family-founded Siete for $1.2 billion. Earlier this year, a former PepsiCo exec co-launched KEY, an all-natural energy drink with ketones. The brand closed a $4 million seed round led by AgFunder, a foodtech and agtech investment fund.
Bloom, a greens and superfood brand that has found a home on the shelves of Target, scored an investment from Nutrabolt earlier this year, giving the C4 maker a 20% stake in the brand that was founded by fitness and wellness influencer Mari Llewellyn. KDP recently signed a sales and distribution deal for Bloom’s ready-to-drink energy beverages, according to Justin Whitmore, KDP’s chief strategy officer.
“We could not be more excited to build the future of Ghost together with KDP,” Lourenco said. “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. 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.”
