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Keurig Dr Pepper to buy energy-drinks business Ghost – Just Drinks

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Keurig Dr Pepper to buy energy-drinks business Ghost – Just Drinks

Ghost Sour Punk Lemonade energy drink. Credit: Ghost/LinkedIn

US soft drinks major Keurig Dr Pepper has struck a deal to acquire the Ghost energy drinks and lifestyle sports nutrition business.

In a statement released today (24 October), the Sunkist fruit soda maker said it would snap up the company in two stages.

At the outset, Keurig Dr Pepper plans to purchase a 60% shareholding in Ghost for roughly $990m.

It will then scoop up the remaining 40% in 2028 “at a pre-negotiated valuation scale”, based on Ghost’s financial performance in 2027.

The deal is expected to be finalised by “late 2024 or early 2025”, the Canada Dry brand owner said.

From “mid-2025”, the A&W root beer maker plans to inject around $250m to move existing distribution agreements for Ghost Energy over to Keurig Dr Pepper before selling and distributing the brand.

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Set up in 2016, Ghost’s range is “anchored” by its namesake energy drinks portfolio and is “one of the fastest-growing” brands in the energy sector, with its net sales having “more than quadrupled” since 2021, according to Keurig Dr Pepper.

Ghost’s sugar-free energy drinks come in flavours such as sour watermelon, orange cream. The brand also has SKUs inspired by the Sour Patch Kids soft candy brand, as well as a range of caffeine-free electrolyte beverages.

Aside from its drinks business, Ghost makes sports supplements, designed for pre- and post-workout and e-sports users.

The 7Up maker said the move will “substantially enhance” its “presence in energy drinks category, extending its reach to new consumers”.

Commenting on the news, Keurig Dr Pepper CEO Tim Cofer said: “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. 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 [direct-store-delivery] portfolio.”

Following the completion of the transaction, the business will sit under Keurig Dr Pepper’s US Refreshment Beverages division. It will remain headed up by Ghost’s co-founders Dan Lourenco and Ryan Hughes.

Speaking to investors following the release of its third-quarter results for the year today (24 October), Cofer said: “We see significant potential to further scale Ghost in collaboration with its founders.”

Dan Lourenco, the CEO and co-founder of Ghost, added: “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.”

In its latest third-quarter results, Keurig Dr Pepper’s net sales grew 2.3% and 3.1% on a constant-currency basis to $3.9bn.

Gross profits in the three-month period were relatively flat, up 1.4% to $2.1bn. Income from operations sat at $902m, growing 0.7% on 2023. Net income was up 18.9% year on year to $616m.

In the first nine months, net sales reached $11.3bn growing roughly 3% year on year. Operating income grew 12.4% to $2.5bn, while net income was up 6.5% to $1.6bn.


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