The soda wars used to mean Coke versus Pepsi.
Back in the 1990s, even into the 2000s, alternative soda brands were novelties, and energy drinks weren’t even a major category.
Now, Keurig Dr. Pepper has become a significant rival to Coca-Cola and PepsiCo, and energy brands like Red Bull, Celsius, and Monster have won market share. In addition, functional sodas like Poppi, Ollipop, and others have steered consumers away from just grabbing a Coke or a Pepsi.
This explosion of soda offerings has led to retailers including Walmart, Kroger, and Costco to add limited-time-offers (LTO) featuring flavors you can’t find anywhere else.
Costco, for the summer, has quietly released a new limited-time-offer assortment from a Keurig Dr Pepper brand that should have consumers rushing to buy a pack.
Costco adds exclusive Ghost assortment
While Ghost may not be as widely known a brand as Monster, Red Bull, or even Celsius, it was partially purchased by Keurig Dr Pepper in 2024.
“Under the terms of the agreement, KDP will initially purchase a 60% stake in Ghost, which will be followed by the acquisition of the remaining 40% stake in 2028,” the two companies shared in a press release.
The energy brand’s co-founders, Dan Lourenco and Ryan Hughes, continue to run the brand, which operates as part of KDP’s U.S. Refreshment Beverages segment.
Ghost has a rotating exclusive Costco offer where the flavors change seasonally. It’s summer offering, the Ghost Summer Splash Energy Drink, Zero Sugar 18-pack offers three flavors, Bubblicious, ‘Merica Pop, and Cherry Limeade.
All flavors offer zero sugar and 200 milligrams of caffeine, according to the Costco website.
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Why Costco uses LTOs
Unlike Starbucks and other restaurant chains which promote their LTOs, Costco tends to let customers discover its exclusive products without promoting them.
“An LTO can be implemented for a number of different reasons — whether it’s to test out an item that will later become part of the permanent menu, to put a spin on an existing item (like a burger with a new sauce, for example), or to try a totally new item in an effort to spur interest. For consumers, LTOs encourage repeat visits and inspire them to spread the word,” according to Datassential’s “The ingredients for a winning limited-time offer.“
Costco’s business model relies on the treasure hunt aspect where customers won’t know what they’re going to find when they walk into the store.
“We have created a treasure hunt atmosphere. When customers come in, they may find at one time we have a Coach handbag, and they come back, and we don’t have the Coach handbag, but perhaps we have some Levi’s we are selling at a hot price,” Costco founder Jim Sinegal told Mojo Sales and Branding.
Costco’s treasure-hunt model relies on rotating limited-time merchandise and unexpected deals, giving members a reason to visit frequently and buy items they weren’t planning to purchase.
“You never quite know what else you’ll find when you’re there.” GlobalData Managing Director Neil Saunders told Fortune.
Related: History of Costco: Company timeline and facts
Why LTOs work
“Limited-time offers are one of an operator’s best tried-and-true tactics for creating a sense of urgency and encouraging guests to act now. They help motivate existing guests to return, while simultaneously attracting trial from new ones,” according to Restaurant Dive.
Soda has been a consistent driver when it comes to bringing consumers to stores.
“Packaged beverages have been a top-performing category in terms of sales and gross profit growth over the last 10 years,” NACS Research Analyst Emma Tainter told NACS Magazine, describing beverages as a category that “drives in-store traffic.”
For Costco, LTOs are about keeping members happy and making them want to come back, and most importantly, renew their membership.
“The most important item we sell is the membership card,” Costco CEO Ron Vachris told Fortune. He added that “everything” the chain does is designed to support driving membership and renewals.
Related: Forget the food court, Costco shoppers splurged in a surprising way