Behind the Scenes of the GHOST Acquisition

A Conversation with KDP’s Chief Strategy Officer

Today, Keurig Dr Pepper announced its largest investment to date with the acquisition of GHOST Lifestyle LLC and GHOST Beverages LLC (collectively “GHOST”).  This deal is one of many ways KDP is delivering on its vision of a beverage for every need, anytime and anywhere. We reached out to KDP’s Chief Strategy Officer, Justin Whitmore, to learn more about how KDP fills in the white spaces in its portfolio and works with exciting new partners.

First, tell us about your team and your role at the company.

Our Enterprise Strategy team is always looking for new growth opportunities.  A key focus of our work is shaping KDP’s “now and next beverage portfolio,” one of our strategic pillars.  Every day, we look for compelling brands led by innovative entrepreneurs that compete in durable and attractive categories.

We identify high-potential trademarks through a process grounded in consumer insights, a deep understanding of the liquid refreshment beverage and coffee landscape, and the expertise of our business segment and functional leaders.

Our work plays a crucial role in our enterprise capital allocation processes, where we apply a flexible buy/build/partner approach to identify the best options for beverage consumers. At times, we choose to innovate or renovate a product on our own; other times, we partner with another company, or we pursue an M&A opportunity like this one.

What drew you to GHOST?

We have been competing in and closely examining the energy category for several years, and during this time, GHOST has emerged as a standout brand. It’s one of the fastest-growing names in the sector, featuring engaging packaging, a variety of exciting flavors, and a strong lifestyle positioning that resonates with consumers. Our investment creates a unique opportunity to leverage KDP’s capabilities and resources to enable broad reach and availability to a whole new wave of GHOST consumers.

Equally as important, I believe the relationships we build with the founders and innovators of our partner businesses differentiate KDP’s portfolio shaping approach.  We first met Dan and Ryan over a year ago, and we’ve been in conversation ever since–not only about the brand but also their insights on the category and evolving consumer preferences. We see an opportunity to create something special by combining their entrepreneurial spirit and vision with the power of KDP.

You mentioned GHOST’s founders, Daniel Lourenco and Ryan Hughes. How do you think about working with owners and entrepreneurs?

We love partnering with the current and next generation of innovators to provide consumers with exactly what they want. The KDP model thrives when we connect with partners at the right moment in their journey and put an accelerator on distribution, production, merchandising, display activity and brand management, among many other capabilities.

There is no one-size-fits-all partnership. Some partners come into KDP with their own sales and field teams, while others leverage our expertise to enhance in-store execution and displays. Our goal is to offer a seamless experience for our partners that extends all the way to the shopper’s cart.

We also keep founders engaged in the ongoing success of their brands by utilizing various deal structures to create win-win arrangements.

What role will GHOST play in your energy portfolio?

The energy category continues to evolve to meet distinct consumer needs and occasions, and we see an opportunity to adopt a platform approach. Our strategy focuses on brands that complement each other, address specific consumer needs, generate scale across the category, and leverage our omni-channel route-to-market capabilities.

For example, we can offer consumers C4 Energy, a leading trademark in performance energy, known for its strong functional efficacy. GHOST has cultivated a lifestyle positioning with bold, flavor-forward products that are popular in gaming, social settings, and music festivals. Black Rifle Energy presents a compelling option for everyday consumers, particularly in convenience stores across the country.

I’m also excited to share that we recently signed a sales and distribution deal for Bloom’s ready-to-drink energy beverages, which will have a female-forward positioning. We were impressed by the standout launch it had at Target this summer.

Overall, we feel optimistic about the portfolio approach we are taking within the energy category, and we see a bright future ahead for KDP and our partners.