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Diving briefs:
- Keurig Dr Pepper’s $1 billion bet on ghost energy drinks is beginning to pay off, spurring sales at the drink giant and offsetting headwinds with traditional segments like soda and coffee.
- Netrefreshment beverage sales rose 11% in the most recent quarter. Keurig Dr Pepper’s energy drink portfolio also includes C4 stocks. Revenue Call.
- The company’s presence coffee, with brands like Green Mountain and Lavazza, has struggled this quarter. Green coffee bean tariffs and careful consumer spending lead Up to a 3.7% reduction in categorysaid the executive.
Dive Insights:
Keurig Dr Pepper’s portfolio consists of drink investments and full ownership across the drink spectrum, from sodas and teas to energy drinks and non-alcoholic beers. The decision to lean heavily towards energy drinks in 2025 was strengthened by C-Suite Shakeup earlier this year. The company has encouraged insider Justin Whitmore to lead its business in the growing category.
Beverage Company purchased 60% of Ghost last fall and plans to acquire the brand in 2028. Dr. KeurigPepper said the brand’s net sales quadrupled between 2021 and 2024.
In a revenue call, the company said it was moving aggressively to increase the distribution of Ghost energy drinks. This includes flavor collaboration between Sourpatch Kids, an international candy brand from Mondels, and Swedish fish.
“We are beginning to oppose Ghost’s important growth opportunities as we envision full influence on the brand down to the shelf,” Jane Gelfund, senior vice president of finance, told investors.
The company’s C4 energy investment came in 2022, when $863 million was spent on a 30% stake in Nutrabolt, which owns the brand.
Cofer tells investors that given the headwinds are facing coffee, Dr. Keurig Pepper will lean towards premium products from La Colombe and Lavazza.
“We will consider additional inflation mitigation procedures depending on both green coffee and tariffs,” Coffer said. “Additional pricing may be one of the levers, but there are other ones too.”
Other companies in the beverage industry are leaning towards growing energy drink categories to drive revenue. Anheuser-Busch launched an energy drink called Phorm Energy, and Molson Coors purchased a majority stake in Dwayne “The Rock” Johnson brand Zoa Energy. The US Energy Drinks category is projected to be worth $33 billion by 2030. According to research and market data.
