Keurig Dr Pepper to purchase GHOST drink brand for nearly $1 billion
Keurig Dr Pepper will acquire a popular-growing energy drink brand for just shy of $1 billion.
Keurig Dr Pepper announced on Thursday that it has entered in an agreement to acquire a portion of GHOST, including GHOST Lifestyle and GHOST Beverages, for approximately $990 million. Initially, Keurig Dr Pepper will purchase a 60% stake in GHOST, followed by an acquisition of the remaining 40% stake in 2028. The initial transaction is expected to close in late 2024 or early 2025, a Keurig Dr Pepper news release states.
The outstanding 40% stake in 2028 will be purchased at a pre-negotiated price, dependent on GHOST’s 2027 financial performance, the news release states. Starting next year, Keurig Dr Pepper expects to invest up to $250 million to transition GHOST Energy’s distribution agreements through Keurig Dr Pepper’s direct store delivery network.
GHOST will continue to be led by co-founders Dan Lourenco and Ryan Hughes.
“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 Chief Executive Officer Tim Cofer said in the news release. “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.”
This is a picture of the Keurig Dr. Pepper facility in Moore, South Carolina. Keurig Dr Pepper has announced that it will acquire a portion of energy drink maker GHOST for $990 million.
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Of its 25 brands, Keurig Dr Pepper owns two energy drinks, Venom Energy, and Xyience Energy.
Lourenco and Hughes established GHOST as a lifestyle sports nutrition brand in 2016, focusing on sports supplements. In addition to pre-, intra- and post-workout supplements, GHOST is known for its line of gaming supplements. These supplements contain nootropics (group of substances that enhance thinking, learning and memory) and “natural energy.”
The GHOST name became more recognizable following the brand’s collaboration with Anheuser-Bush InBev in 2020, with the development of GHOST Energy, according to Beverage Industry. With a long line of flavors, GHOST has partnered with popular brands like Welch’s, Warheads, Swedish Fish and Sour Patch Kids to connect with a wide array of consumers.
According to the Keurig Dr Pepper news release, over the past three years, GHOST’s net sales have more than quadrupled, as GHOST Energy is one of the fast-growing energy drink brands.
GHOST also offers a line of zero-caffeine, zero-sugar hydration beverages.
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