Keurig Dr Pepper to buy energy-drinks business Ghost

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 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.

In December 2022, Keurig Dr Pepper invested US$863m for a 30% stake in US energy-drink and recovery-beverage maker Nutrabolt. The “strategic partnership” included a long-term sales and distribution agreement for Nutrabolt’s energy drink brand C4.

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.

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.

Just Drinks