Keurig Dr Pepper has made moves to buy a fast-growing energy drink brand for almost $1 billion.

On Thursday, Keurig Dr Pepper revealed that it has agreed to purchase a part of GHOST, specifically GHOST Lifestyle and GHOST Beverages, for around $990 million. The company will initially acquire a 60% share, with plans to buy the remaining 40% by 2028. The first part of the deal is likely to be finalized either at the end of 2024 or the beginning of 2025, according to a statement from Keurig Dr Pepper.

The future acquisition of the remaining 40% will be at a price set in advance, which will be influenced by GHOST’s financial results in 2027, as per the statement. Starting next year, Keurig Dr Pepper is expected to invest up to $250 million to integrate GHOST Energy’s distribution into its direct store delivery system.

GHOST will still be managed by its founders, Dan Lourenco and Ryan Hughes.

Tim Cofer, the Chief Executive Officer of Keurig Dr Pepper, expressed enthusiasm for the acquisition in the press release, stating, “GHOST is a unique brand with enormous growth prospects, and we are eager to collaborate with its founders to elevate the business further. This purchase enhances our standing in the appealing energy drink market, speeding up the transformation of our portfolio towards consumer-favored and growth-boosting areas through a strategic deal structure.”

Which energy drink brands are owned by Keurig Dr Pepper?

Keurig Dr Pepper owns two energy drinks: Venom Energy and Xyience Energy among its 25 brand portfolio.

What is GHOST?

Founded by Lourenco and Hughes, GHOST started in 2016 as a sports nutrition brand focusing on lifestyle and performance supplements. The brand offers various products, including pre-, intra-, and post-workout supplements, as well as gaming supplements that feature nootropics (substances aimed at enhancing cognition, learning, and memory) and “natural energy.”

GHOST gained more recognition after partnering with Anheuser-Busch InBev in 2020 to create GHOST Energy. The brand has collaborated with well-known names like Welch’s, Warheads, Swedish Fish, and Sour Patch Kids to appeal to a diverse consumer base.

As highlighted in the Keurig Dr Pepper press release, GHOST’s net sales have more than quadrupled in the past three years, making it one of the fastest-growing energy drink brands around.

Additionally, GHOST offers a collection of zero-caffeine and zero-sugar hydration drinks.

In 2018, Dr Pepper Snapple Group merged with Keurig Green Mountain.