Keurig Dr Pepper’s $1 billion-plus investment in Ghost energy drinks is proving to be a smart move as it is helping to boost sales for the beverage giant. The company has seen a significant 11% growth in net refreshment beverage sales in its most recent quarter. CEO Tim Cofer attributed this growth to the success of the energy drink portfolio, which includes Ghost and a stake in C4.
The decision to focus more on energy drinks in 2025 was reinforced by the appointment of Justin Whitmore to lead operations in this category. Keurig Dr Pepper acquired 60% of Ghost last year and plans to fully own the brand by 2028. The brand’s net sales have quadrupled between 2021 and 2024.
During the earnings call, the company highlighted its aggressive efforts to expand distribution for Ghost energy drinks, which have unique flavor collaborations with popular candy brands like Sour Patch Kids and Swedish Fish. Jane Gelfand, senior vice president of finance, expressed confidence in Ghost’s growth potential as they take full control over the brand’s distribution.
In addition to energy drinks, Keurig Dr Pepper is also focusing on premium coffee offerings from brands like La Colombe and Lavazza. The company is facing challenges in the coffee segment due to tariffs on green coffee beans and cautious consumer spending, resulting in a 3.7% decline in the category.
To address these challenges, Cofer mentioned that they are considering various strategies to mitigate inflation, including potential pricing adjustments. Despite the hurdles in the coffee market, Keurig Dr Pepper remains optimistic about the growth opportunities in the energy drink sector.
The trend of investing in energy drinks is not unique to Keurig Dr Pepper, as other companies in the beverage industry are also tapping into this lucrative market. Anheuser-Busch is launching Phorm Energy, while Molson Coors has acquired a majority stake in Zoa Energy, a brand backed by Dwayne “The Rock” Johnson. Research and Markets data project that the U.S. energy drink category will reach a valuation of $33 billion by 2030.
Overall, Keurig Dr Pepper’s strategic focus on energy drinks and premium coffee offerings reflects the company’s commitment to adapting to changing consumer preferences and driving growth in key beverage segments.
