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Dive Overview:
- Keurig Dr Pepper is Black Rifle Coffee’s New line of ready-to-drink energy drinksTerms of the transaction were not disclosed.
- The Black Rifle energy drink series will launch in the fourth quarter and be available nationwide in early 2025. It has zero sugar and comes in four flavors, each with 200 milligrams of caffeine per 16-ounce can.
- The deal builds on a partnership launched between the two companies earlier this year, in which Keurig Dr Pepper agreed to add Black Rifle Coffee to its extensive K-Cup platform.
Dive Insights:
As consumer demand for energy drinks continues to grow, Black Rifle Coffee is looking to establish a presence in the $21 billion market. But with already established brands such as Red Bull, Monster and Celsius, Black Rifle Coffee knows it needs the sales and distribution muscle of a larger company to establish a meaningful presence in the space.
The partnership with Keurig Dr Pepper will allow the energy drink to expand its retail presence, accelerate household penetration and strengthen commercial activity, Black Rifle CEO Chris Monzelewski said in a statement.
Keurig Dr Pepper is no stranger to the energy drink industry and should be a valuable resource for Black Rifle. Keurig Dr Pepper acquired a stake in C4 Energy for $863 million in the same year it also participated in a funding round for Keurig Dr Pepper’s A Shoc energy drink.
Keurig Dr Pepper is a well-known coffee and soda brand. under Since taking on the name, the company has rapidly expanded into trendier categories, mainly through distribution deals and acquiring minority stakes in brands. The company has formed partnerships to sell and distribute other beverages, including La Colombe coffee and premium rehydration drink Electrolit. Black Rifle is the latest deal to follow this strategy.
“This partnership is a win for consumers and both companies,” Andrew Archambault, president of Keurig Dr Pepper’s U.S. refreshment beverages division, said in a press release. “Black Rifle Coffee’s strong brand and passionate fan base give the company a clear advantage in positioning itself to succeed in the energy sector.”
The two companies have a deep friendship through coffee, Keurig Dr. Pepper appears to understand Black Rifle’s product quality, its reputation among consumers, and the areas in which the new product will be successful. This new product will quickly solidify Keurig Dr. Pepper’s already strong coffee and energy drink presence. If the launch is a hit, Keurig Dr. Pepper may acquire all or part of Black Rifle, as they have done with other brands in the past.