How a Las Vegas-based company became an energy drink powerhouse

A recent beverage industry acquisition intends to shake up the energy drink industry right from Las Vegas.

In late October, the Las Vegas-founded and based sports nutrition and lifestyle brand Ghost was acquired by beverage giant Keurig Dr. Pepper for almost $1 billion.

Ghost, a sports nutrition and lifestyle brand, was acquired by KDP on Oct. 24, who purchased an initial 60 percent stake in the company for $990 million, in the hopes of expanding their energy offerings. The remaining 40 percent will be acquired in 2028, pushing the dollar mark over $1 billion.

“I think GHOST just might be the biggest non-gaming acquisition in Las Vegas business history,” said co-founder and CEO Dan Lourenco. “I’m so humbled and appreciative of everything we’ve accomplished so far both in Las Vegas and around the world but I’m even more excited by what’s to come.”

Founded in 2016 on his apartment floor in Las Vegas, Lourenco dreamed up the brand Ghost with his co-founder Ryan Hughes.

‘A brand that we wish existed’

During its inception, Lourenco and Hughes felt the current sports nutrition landscape was aimed towards body builders and the “faux macho,” with sleek black packaging and metallic writing, and basic flavors like chocolate, vanilla and strawberry.

“We wanted to build a brand that we wish existed,” said Lourenco from his Downtown Summerlin office. “You go to a city like Las Vegas, where health and wellness — or just like looking and feeling your best, whatever that is — is on a spectrum.”

The brand started the “old school way” with no outside investing and two products: a pre-workout and hydration powder, but what set them apart is the bright neon packaging they are known for today. The brand also makes ready-to-drink energy drinks.

As they grew their brand, the company took advantage of licensing to get creative with flavors.

“We were the first to ever do it. So instead of it being a watermelon, it’s a Sour Patch Kids Watermelon or a grape, it’s a Welch’s Grape,” Lourenco said. “Can’t believe no one ever did that before us.”

In 2020, the brand launched its best selling product to date: their ready-to-drink energy beverage, Ghost Energy. Lourenco said it has been a “rocket ship,” eclipsing a $650 million run rate over the last 52 weeks. In a press release announcing the acquisition Keurig Dr. Pepper noted Ghost’s net sales “have more than quadrupled over the past three years,” making it an attractive acquisition for the beverage industry giant that is seeking inroads in the energy drink category.

Las Vegas operations

Lourenco, 38, moved to Las Vegas 10 years ago from New York City, now considers himself to have “local status” and enjoys getting involved on the community level.

Ghost’s Las Vegas office is located near the ballpark in Downtown Summerlin and the company has a warehouse in North Las Vegas. At the warehouse, crews manufacture their hydration beverage. Other operations are led through a Chicago office and national distribution.

“Because we’re a fast growing city, because the city, in some respects, you have the ability here to get involved at a community level and make a difference even very early on in your brands,” Lourenco said.

One of Ghost’s first partnerships in Las Vegas was with the Golden Knights and T-Mobile Arena. Since then, the company has partnered with local events like EDC, Life is Beautiful and When We Were Young Festival, where it sponsored a stage. On the Strip, Ghost has partnerships with night clubs and venues like Drai’s Las Vegas and Ole Red.

On a smaller scale, Ghost also partners with Downtown Summerlin for events like yoga on the lawn or music events.

Another reason why Las Vegas is the perfect home for Ghost is because of the hot weather, Lourenco said. The Las Vegas office is home to everyone who works on the beverage.

“The American Southwest is the number one beverage market in the country. Just because it’s hot, we drink a lot of things,” Lourenco said. “That triangle between SoCal, Vegas and Phoenix, like, that’s really our number one market.”

Lourenco has no plans to move out of Las Vegas anytime soon, saying he is “humbled to be a small part” of the business growth in Southern Nevada.

Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes on X.