Keurig Dr Pepper Invests $863 Million in Nutrabolt

New partnership also includes long-term sales and distribution agreement
C4 Energy’s Starburst Collaboration
Photograph: Shutterstock

A new partnership just formed between Keurig Dr Pepper and Nutrabolt includes a long-term sales and distribution arrangement and an $863 million equity investment by KDP.

Austin, Texas-based Nutrabolt is a growing, global active health and wellness company with a portfolio of brands, including C4 Energy, C4 Pre-Workout and the post-workout recovery brand Xtend.

KDP will sell and distribute C4 Energy in most of its company-owned direct store distribution territories, “which is expected to meaningfully increase retail availability and household penetration for the brand,” KDP said.

Nutrabolt will continue to distribute C4 Energy directly or through its existing distribution network to the specialty, health club and fitness channels, Nutrabolt said. It also will continue to work with some of its existing beverage distributors in certain markets.

KDP’s $863 million investment gives it an ownership stake of about 30%, making KDP the largest investor in Nutrabolt behind its founder, chairman and CEO, Doss Cunningham, KDP said.

Estimated 2023 Nutrabolt net sales are expected to be above $650 million, said KDP, which also can earn additional equity tied to in-market execution. KDP will have representation on the Nutrabolt board, and the partnership gives KDP the rights to further increase its ownership stake under various capital raising scenarios.

“This partnership represents a win-win transaction between our two companies,” said Bob Gamgort, chairman and CEO. “KDP gains significant presence in the rapidly growing performance energy drink market and Nutrabolt gains access to a strategic investor with extensive sales and distribution capabilities to further accelerate its growth. We believe that bringing together the resources, talent and expertise of both companies will accelerate innovation and growth and drive significant value creation over time.”

Nutrabolt’s Cunningham said, “This strategic partnership will supercharge C4 Energy’s current growth trajectory by accelerating household penetration, enhancing distribution and strengthening our overall commercial capabilities.”

The transition of C4 Energy distribution to KDP will occur in 2023, which is expected to be a transition and investment year, with limited impact on KDP financial results until 2024, KDP said.

North American beverage company Keurig Dr Pepper has annual revenue approaching $13 billion. It is based in Burlington, Massachusetts, and Frisco, Texas.

Nutrabolt, based in Austin, Texas, has a portfolio of performance-oriented brands that energize and fuel active lifestyles. It was founded 20 years ago.

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