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Dive Briefing:
- Keurig Dr Pepper will market and distribute Black Rifle Coffee's new line of ready-to-drink energy drinks. Terms of the deal were not disclosed.
- The Black Rifle Energy drink line is expected to launch in Q4 and be available nationwide in early 2025. It has no sugar, comes in four flavors, and contains 200 milligrams of caffeine per 16-ounce can.
- The deal builds on a partnership the two companies began earlier this year, when Keurig Dr Pepper agreed to add Black Rifle Coffee to its expansive K-Cup platform.
Dive Insight:
As consumer demand for energy drinks continues to grow, Black Rifle Coffee is looking to solidify its position in the $21 billion market. But with established brands like Red Bull, Monster, and Celsius, Black Rifle Coffee knows it needs the sales and distribution muscle of a larger company to make a meaningful presence in the category.
Black Rifle CEO Chris Mondzelewski said in a statement that the partnership with Keurig Dr. Pepper will allow the energy drink to expand its retail footprint, reach homes faster and strengthen its commercial operations.
Keurig Dr Pepper is no stranger to the energy drink scene and will be a valuable resource for Black Rifle in 2022. Keurig Dr Pepper paid $863 million for a stake in the maker of C4 Energy. That same year, Keurig participated in a funding round for A Shoc, an energy drink also distributed by Dr Pepper.
Keurig Dr Pepper is best known as a coffee and soda brand. Below As its name, Tecnologia, suggests, the company has been rapidly expanding into trendy categories, primarily through distribution deals or acquiring minority stakes in brands. It has partnered with La Colombe to sell and distribute other beverages, including its coffee and premium water drink, Electrolit. Black Rifle is the latest deal to follow this strategy.
“This partnership is a win-win for consumers and both companies,” Andrew Archambault, president of Keurig Dr Pepper’s US Refreshment Beverages, said in a press release. “Black Rifle Coffee’s strong brand and passionate following are distinct advantages for our success in the energy space.”
The two companies became familiar with each other through coffee. Keurig Dr Pepper will be well aware of Black Rifle’s quality, consumer reputation, and where a new product would do well. It would immediately solidify Keurig Dr Pepper’s already strong presence in coffee and energy drinks. If the launch is a hit, Keurig Dr Pepper could buy some or all of Black Rifle, as it has done with other brands in the past.
