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Dive Brief:

Mondelēz International filed a lawsuit last week in Illinois aiming to halt a collaboration with Ghost energy drink and protein products that use brands like Sour Patch Kids, Oreo and Nutter Butter. Mondelēz claims it was not asked for permission to continue the partnership when Ghost was acquired by Keurig Dr Pepper for over $1 billion last fall, constituting a breach of contract. Mondelēz is asking the court to compel Ghost to destroy any products or marketing materials linked to Mondelēz trademarks. The Swedish Fish maker is also seeking damages sustained from “acts of trademark infringement” from Ghost.

Dive Insight:

The legal battle is the latest development in the buzzy energy drink space, which has seen major growth in recent years from zero-sugar brands like Ghost, C4 and Celsius.

Ghost is already driving a sales boost at Keurig Dr Pepper, which pointed to the acquisition of the energy drink maker as a key driver of the 11% sales growth its products saw in its most recent quarter.

The original partnership between Mondelēz and Ghost expired last month. Mondelēz claims Keurig Dr Pepper continued to distribute co-branded Ghost products even after the official expiration of the agreement.

Keurig Dr Pepper attempted to renegotiate the partnership, Mondelēz said in its lawsuit, but the two parties could not reach an agreement.

Ghost is “disappointed Mondelēz International has chosen to end a mutually beneficial 7-year partnership” and will defend its position that it did not breach the companies’ contract in court, a representative for the energy drink brand told Law360. In a post on X last week, Ghost CEO and co-founder Dan Lourenco said the energy drink maker tried to continue the partnership, stating “we just want to make cool sh*t but big corps have their own priorities.”

Mondelēz said it does not comment on active litigation in a statement to Food Dive. Keurig Dr Pepper did not respond to a request for comment.

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