Dive Brief:
- Keurig Dr Pepper will sell and distribute Black Rifle Coffee’s new line of ready-to-drink energy beverages. Terms of the deal were not disclosed.
- The Black Rifle Energy beverage line is expected to launch in the fourth quarter and be available nationwide in early 2025. It will have zero sugar and come in four flavors, each with 200 milligrams of caffeine per 16-ounce can.
- The deal builds on an earlier partnership launched between the two companies earlier this year where Keurig Dr Pepper agreed to add Black Rifle Coffee to its sprawling K-Cup platform.
Dive Insight:
As consumer demand for energy drinks continues to grow, Black Rifle Coffee is aiming to establish its presence in the $21 billion space. But with Red Bull, Monster and Celsius, among other already-established brands, Black Rifle Coffee knows it needs the sales and distribution power of a larger company to make a meaningful presence in the category.
In a statement, Black Rifle CEO Chris Mondzelewski said the collaboration with Keurig Dr. Pepper allows the energy drink to expand its retail presence, accelerate its household reach and enhance its commercial operations.
Keurig Dr Pepper is no stranger to the energy drink space, which should be a valuable resource for Black Rifle. In 2022, Keurig Dr Pepper spent $863 million for a stake in C4 Energy maker. That same year, it participated in a funding round for A Shoc, an energy drink that Keurig Dr Pepper also distributes.
While Keurig Dr Pepper is best known for the coffee and soda brands under its corporate name, it has been rapidly growing its reach into trendier categories, largely by entering into distribution deals, or by taking a minority stake in a brand. It has entered into partnerships to sell and distribute other drinks, including La Colombe coffee and Electrolit, a premium hydration beverage. Black Rifle is the latest deal to follow that strategy.
“This partnership is a win for consumers and for both of our companies,” Andrew Archambault, president for U.S. Refreshment Beverages at Keurig Dr Pepper, said in a release. “Black Rifle Coffee’s strong brand and passionate following are distinct advantages that position it for success in the energy space.”
The two companies are familiar with each other through coffee, so Keurig Dr Pepper likely understands Black Rifle’s product quality, reputation among consumers and where the new product will do well. It will instantly solidify Keurig Dr Pepper’s already strong coffee and energy drink presence. If the launch proves to be a hit, Keurig Dr Pepper could purchase some or all of Black Rifle like it has with other brands in the past.