Keurig Dr Pepper is expanding its beverage portfolio by acquiring Ghost, a sports nutrition business that offers liquid refreshments and supplements but is most known for its ready-to-drink energy brand.
CEO Tim Cofer said the acquisition would allow KDP to tap into a differentiated brand with significant growth potential to expand the energy category, which the company looks to capture through its 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 portfolio," he said.
Energizing KDP’s Portfolio
The ready-to-drink (RTD) energy market is currently $23 billion in size, according to Cofer, and appeals to a wide range of consumers across all ages and demographics, including Gen Z. Additionally, there are significant opportunities for growth in household penetration compared to other leading beverage categories, he said during a call with investors.
He considers energy still in the development stage of price pack architecture and channel diversity, which could translate to a large total addressable market for KDP to grow into.
Other recent moves in the space include the acquisitions of C4 and Black Rifle Energy, as well as a distribution agreement with Nutrabold for its Bloom RTD energy brand. The company is using a similar playbook in energy that it used to grow share in premium water.
“Together, each of these brands can work in complementary ways to address consumer needs while driving greater scale in the category and across our DSD infrastructure,” said Cofer.
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