Keurig Dr Pepper (KDP) "Active Nutrition" Strategy | Energy Drinks, Hydration, & Protein Beverages
Let's talk about how the most intriguing “active nutrition” brand portfolio isn’t controlled by some legacy supplement company. Instead, in just two short years, Keurig Dr Pepper (NASDAQ: KDP) went from getting its categorical butt kicked in the “three-headed monster” of active nutrition beverages (aka energy drinks, sports drinks, and protein shakes) to now controlling the most intriguing “active nutrition” brand portfolio by (1) acquiring a large stake in the maker of C4 Energy, (2) strategically partnering with Electrolit and Black Rifle Coffee, (3) acquiring GHOST, and (4) getting access to Bloom Nutrition through a proxy investment by Nutrabolt. And this positive momentum is most evident within the energy drinks market, as the four brands controlled by KDP (e.g. C4 Energy, GHOST Energy, Bloom Sparkling Energy, and Black Rifle energy drinks) now combine to represent over $1 billion in annual run rate net sales…and are scaling rapidly. And in in aggregate…the KDP energy drink portfolio grew about one percentage point of share in 2025 thus far. And after experiencing more than 30% YoY retail sales growth in Q2, KDP holds a 7% share in the U.S. energy drinks market…which only trails the brand portfolio of Monster Beverage, Red Bull, and expanded Celsius Holdings brand portfolio. But having near-term aspirations of hitting a double-digit share position within the fast-growing $26 billion U.S. energy drinks market, KDP must surgically allocate meaningful resources to ensure (1) brand distinction between GHOST and C4 remains mission-critical and (2) Bloom Sparkling Energy gets ample support throughout its scaling phase. Then, in terms of hydration…Electrolit is currently the fastest-growing scaled brand and fourth-largest brand overall in the sports drink category. Benefitting from strong velocities, DSD enabled distribution expansion, and product innovation…Electrolit experienced retail sales growth over 30% YoY and gained more than 1.5 points of market share in Q2. And though I’d argue Electrolit is only scratching the surface of its long-term potential in the U.S. market, the KDP hydration portfolio also contains GHOST. Also, while these “enhanced waters” aren’t technically included within this analysis…I’d be silly to not mention the huge rebound of the Bai brand, which has been powered recently in part by the “Sydney Sweeney effect.” KDP also recently acquired Dyla Brands, a manufacturer of powdered drink mixes and liquid water enhancers that should help those active nutrition brands build individual serving stick pack format presence in additional functional beverage categories. And then finally, I'll breakdown the KDP protein beverages platform…which is undoubtedly their laggard within the “three-headed categorical monster” of active nutrition beverages. Yet, in saying that…it might also be the category that sees the most upcoming “build, acquire, and/or partner” business activity. GHOST could (and should) look at relaunching its RTD protein beverages, C4 was rumored to be working on RTD protein beverages leveraging its Hershey’s licensing partnership, and Bloom Nutrition could easily extend into RTD protein beverages (giving its female customers a fun mainstream clear whey innovation). But by controlling an intriguing brand portfolio and actively growing its go-to-market prowess and commercial playbook, I believe KDP is well-positioned to continue winning in this important “active nutrition” beverages space.
Ireland