USA: Keurig Dr Pepper Expands into Energy Drinks

Keurig Dr Pepper (KDP), known for its coffee and soft drinks that includes Dr Pepper, 7UP, Snapple, and Canada Dry (inside.beer, 29.1.2018), has announced the acquisition of Ghost Energy, an emerging brand popular among younger consumers. This strategic move marks KDP’s entry into the rapidly growing energy drink market, expected to reach USD 86 billion globally by 2026. The acquisition aligns with KDP’s goal to diversify its portfolio and respond to changing consumer preferences, particularly among Millennials and Gen Z who seek energy drinks with added benefits.

Ghost Energy, co-founded in 2016, gained traction for its transparent labeling, bold flavors, and connections with fitness and lifestyle communities. Known for unique flavor collaborations, such as those with Sour Patch Kids and Warheads, Ghost Energy appeals to health-conscious consumers by listing key ingredients like caffeine and taurine prominently on its cans.

Bob Gamgort, CEO of KDP, expressed enthusiasm for the acquisition, emphasizing shared values and growth potential: “Ghost Energy has shown impressive growth and consumer engagement. This acquisition allows us to enter the energy drink market with authenticity and consumer trust.”

The acquisition could enable Ghost to leverage KDP’s extensive distribution network, making products more accessible and supporting faster product development. This move mirrors strategies by other beverage giants, such as Coca-Cola’s purchase of BodyArmor (inside.beer, 1.11.2021) and PepsiCo’s acquisition of Rockstar (inside.beer, 28.4.2020), showcasing a trend where traditional beverage companies pivot towards energy and performance drinks amid declining soda sales.

The deal positions KDP to challenge industry leaders like Red Bull and Monster, with plans to expand Ghost’s reach beyond its current core market U.S. using KDP’s global infrastructure. Consumers can anticipate broader availability and potentially new, innovative product offerings as Ghost integrates into KDP’s expansive beverage lineup.

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