(Bloomberg) -- Keurig Dr Pepper Inc. is investing $863 million in Nutrabolt, the maker of C4 and Xtend energy drinks, as beverage companies look to capitalize on the fast-growing industry.

The investment will give Keurig Dr Pepper a 30% stake in Nutrabolt with an option to increase its holdings. Retail distribution of C4 Energy will transition to the beverage giant next year, and Keurig Dr Pepper expects the partnership to add to earnings in 2024. Nutrabolt sales are expected to exceed $650 million next year, the companies said. 

Keurig Dr Pepper Chief Executive Officer Bob Gamgort called the partnership a win-win.

“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,” Gamgort said in a statement Thursday.

Companies have been scrambling for a bigger piece of a US energy-drink market that, according to Bloomberg Intelligence, totals almost $19 billion in annual sales. Earlier this year PepsiCo Inc. agreed to pay $550 million for a stake in Celsius Holdings Inc. as part of a long-term strategic distribution agreement. 

Austin, Texas-based Nutrabolt was founded 20 years ago. Other investors in the company include comedian Kevin Hart.

©2022 Bloomberg L.P.