Ever seen Ghost, the cool, high-energy brand that’s been showing up at GNC, Target and Walmart? Known for its bold packaging and energy supplements, this Las Vegas born brand is now teaming up with beverage giant Keurig Dr Pepper (KDP). But why would one of the biggest beverage companies in the world want to buy a young energy drink company? Let’s get into it.
What’s the deal?
Keurig Dr Pepper, the company behind classic sodas like Dr Pepper and Sunkist, as well as coffee brands like McCafe and Kahlua, announced they’ll own 60% of Ghost by 2025 and the remaining 40% by 2028. And the price tag? About $990 million for that first 60% and more investment to fuel Ghost’s already growing distribution network.
Since 2016 Ghost has done things a little different. Their colorful cans, sports nutrition supplements and loyal fanbase helped the brand blow up. Over the last three years Ghost’s sales have quadrupled, making them one of the hottest energy drink brands out there. That kind of growth is rare and exactly what Keurig Dr Pepper wants a piece of.
What sets Ghost apart?
Unlike most energy brands that rely on cool names and generic ingredients, Ghost has taken a more holistic approach. They’re a lifestyle brand, not just a drink. Think of them as an energy drink, sports nutrition supplement and a strong brand wrapped in bold colors. This appeals to younger consumers who aren’t just looking for caffeine – they want a brand they can relate to.
Ghost’s products are also in more stores than you’d expect for a young brand. In addition to the big box retailers, they have a strong presence in specialty stores like GNC where customers expect high quality supplements alongside their favorite energy products.
What’s next for Ghost and KDP?
Once the deal is done Ghost will continue to operate as usual with founders Dan Lourenco and Ryan Hughes at the helm. In fact both Lourenco and Hughes are stoked with the partnership saying in a statement,
“We couldn’t be more excited to build the future of Ghost with KDP.”
One big change coming is how Ghost products get on shelves. Keurig Dr Pepper will invest $250 million in Ghost’s distribution giving them access to KDP’s direct-store delivery (DSD) network. This will allow Ghost to get their products in stores even faster than before, giving them a real advantage in the energy drink space. So if you’re a Ghost fan, expect to see it in more places soon.
Where does Ghost fit in with Keurig Dr Pepper?
Adding Ghost to the mix isn’t a random move for Keurig Dr Pepper—it’s a calculated move into a high growth category. The energy drink category is the most dynamic part of the beverage industry with people of all ages reaching for these daily. KDP’s CEO Tim Cofer said it best:
“Ghost is a unique brand with big growth potential and we’re excited to partner with the founders to take the business to the next level.”
Ghost joins other energy brands KDP owns like Xyience Energy and coffee and tea lines like Newman’s Own Organics. For KDP, this means going beyond traditional sodas and coffees to offer a full lineup that fits today’s busy, health conscious lifestyles.
What does this mean for Las Vegas?
Ghost may be getting big company backing but it’s not saying goodbye to its Las Vegas roots. The company has built a strong foundation in the city where it’s seen as a local success story. And with KDP’s investment Ghost could attract even more attention to Vegas as a hub for lifestyle brands.
And let’s not forget Ghost’s presence puts money in the local economy, creates jobs and puts Las Vegas on the map in a new industry. This could inspire other health and energy brands to launch from the city and turn Vegas into a growing market for wellness brands and supplements.
Quick hits
- KDP will own 60% of Ghost by end of 2024 and 100% by 2028.
- Ghost launched in 2016 and has grown fast and is energy drinks, supplements and bold branding.
- Ghost gets $250 million in distribution improvements through KDP’s network so more places will carry the brand.
- This is KDP’s move into the energy drink category along with its coffee and soft drink brands.
- Las Vegas keeps Ghost as its hometown hero even as the brand goes global with KDP’s support.
Whether you’re a Ghost fan already or new to the brand this means more opportunities to see those flashy cans on shelves near you and maybe even try a new flavor along the way. With the combination of Ghost’s originality and KDP’s distribution the future looks bright (and caffeinated) for this growing energy drink brand.
