Celsius Appointed as PepsiCo's Lead Energy Drink Brand in Significant Portfolio Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
0mins
Should l Buy CELH?
Source: Benzinga
Celsius Holdings and PepsiCo Partnership
- New Agreement: Celsius Holdings, Inc. has entered a significant agreement with PepsiCo, reshaping the energy drink market in North America. This deal enhances Celsius' control over brands and expands PepsiCo's distribution role.
- Brand Management: Under the new arrangement, Celsius will manage its flagship CELSIUS line, Alani Nu, and Rockstar Energy in the U.S. and Canada, while PepsiCo will increase its investment and distribution capabilities.
Strategic Implications
- Rockstar Energy Addition: Celsius has added the Rockstar Energy brand to its portfolio, which complements its performance-focused beverages and Alani Nu's lifestyle offerings. PepsiCo will maintain ownership of Rockstar outside North America but will manage domestic distribution for Celsius.
- Investment and Board Influence: PepsiCo invested $585 million in new convertible preferred shares, acquiring approximately 11% of Celsius. This investment allows PepsiCo to appoint an additional board member, solidifying its influence in Celsius' strategic direction.
Market Performance
- Stock Movements: Following the announcement, CELH shares rose by 8.81% to $64.92 in premarket trading, while PEP shares increased by 0.25%. Over the past year, CELH stock has appreciated by over 58%, contrasting with a 14% decline in PEP stock.
- Growth Strategy: Celsius aims to leverage PepsiCo's distribution network to attract health-conscious consumers, particularly women, through Alani Nu, while Rockstar will appeal to traditional energy drink consumers, enhancing Celsius' market share potential.
Leadership Insights
- Executive Statements: Celsius CEO John Fieldly highlighted the opportunity to drive innovation as the "strategic energy drink captain," while PepsiCo's Ram Krishnan noted the alignment of their portfolio to capture a broader consumer base in the growing energy drink category.
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Analyst Views on CELH
Wall Street analysts forecast CELH stock price to rise
17 Analyst Rating
14 Buy
2 Hold
1 Sell
Strong Buy
Current: 32.800
Low
45.00
Averages
62.85
High
80.00
Current: 32.800
Low
45.00
Averages
62.85
High
80.00
About CELH
Celsius Holdings, Inc. is engaged in the development, processing, marketing, sale, and distribution of functional energy drinks to a range of consumers. The Company's flagship asset, CELSIUS, is marketed as a lifestyle and energy drink. This product line comes in two versions: a ready-to-drink form and an on-the-go powder form. It also offers a new CELSIUS Essentials line, available in 16-ounce cans and a Hydration line of zero-sugar powders that are infused with electrolytes and are available in a variety of fruit-forward flavors. Celsius products are offered in retail channels across the United States, including conventional grocery, natural, convenience, fitness, mass market, vitamin specialty and e-commerce platforms. Its product's formulation includes ingredients and supplements such as green tea (EGCG), ginger (from the root), calcium, chromium, B vitamins and vitamin C. The Company's product portfolio also includes the health and wellness brand Alani Nu.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Successful Brand Integration: The integration of Alani Nu has been completed, capturing approximately $50 million in synergies, while the integration of Rockstar is on track for completion in the first half of 2026, which will enhance overall operational efficiency and profitability.
- International Market Expansion: Celsius launched its brand in Spain through an exclusive sales and distribution agreement with Suntory Beverage & Food Spain, marking further expansion into international markets and expected to drive future growth.
- Margin Outlook: Despite pressures from rising aluminum prices and freight costs, management remains confident in achieving a low 50% gross margin target for 2026, anticipating a “side-step” in Q2 followed by improvements in Q3 and Q4.
See More
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- Order Volume Surge: Total orders rose by 27% to 933 million, with marketplace gross order value jumping 37% to $31.6 billion, indicating that the company is not only adding orders but also capturing larger ones, particularly in the fast-growing grocery and retail categories.
- Profit Pressure Intensifies: Despite revenue growth, diluted EPS fell from $0.44 to $0.42, primarily due to integration costs from Deliveroo and ongoing investments in autonomous delivery, highlighting the profit pressures faced during expansion.
- Optimistic Future Outlook: Management maintained its full-year outlook, expecting modest margin gains, although heavy investment will continue, indicating the company's need to prove that these investments can translate into operational leverage.
See More
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- Significant Revenue Growth: Celsius reported a 138% year-on-year increase in Q1 revenue to $783 million, surpassing Wall Street's expectations of $761 million, indicating strong market performance.
- Doubling of EPS: The company's earnings per share (EPS) surged 128% from $0.18 to $0.41 year-on-year, exceeding market expectations of $0.28, reflecting a substantial improvement in profitability.
- Record Sales for Alani Nu: Celsius's energy drink brand Alani Nu achieved record sales of $368 million in Q1, accounting for about half of the company's total sales, benefiting from its integration into PepsiCo's distribution system.
- Strong International Performance: Celsius's international revenue soared 55% year-on-year to $35.3 million, primarily driven by growth in the Nordics, showcasing the company's potential in global expansion.
See More
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- Strong Demand for New CPU: Arm's new CPU has over $2 billion in customer demand over the next two financial years, indicating a positive market reception for its homegrown chips, which strengthens its position in the cloud computing sector, particularly among top hyperscalers with a 50% market share.
- Memory Stocks Rally: Micron Technology and Western Digital saw their stocks rise over 4% amid chip shortages and ongoing AI demand, demonstrating strong pricing power in the current market backdrop, although future prospects remain uncertain due to historical volatility.
- Celsius's Impressive Performance: Celsius Holdings reported a staggering 137.7% revenue increase in Q1, reaching $782.6 million, showcasing robust growth in both its core brand and Alani Nu, which boosts market confidence in its future performance.
See More
Celsius Q1 2026 Earnings Exceed Expectations
- Strong Earnings Performance: Celsius reported a Q1 non-GAAP EPS of $0.41, beating expectations by $0.12, which reflects a significant improvement in profitability and boosts investor confidence.
- Substantial Revenue Growth: The company achieved revenue of $782.6 million in Q1, representing a 137.7% year-over-year increase and exceeding market expectations by $21.97 million, indicating robust market performance and growth potential.
- International Market Expansion: International revenue totaled $35.3 million, up 55% year-over-year, driven by growth in the Nordics and continued momentum in expansion markets including the UK, Ireland, France, Australia, New Zealand, and Benelux, showcasing the success of its globalization strategy.
- Enhanced Brand Competitiveness: Celsius highlights the non-cannibalizing strength of the Alani Nu brand, further solidifying its position in the beverage market and suggesting future market share gains and brand value growth.
See More
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- Celsius Stock Decline: Celsius Holdings' stock fell to a 52-week low of $31.80, closing down over 2% on Wednesday, as skepticism about its international expansion prospects intensified ahead of its earnings report expected on Thursday, leading to weak investor sentiment.
- Domino's Earnings Miss: Domino's Pizza stock sank to a new low of $322.17, with Q1 earnings per share of $4.13 and revenue of $1.15 billion both missing expectations, raising concerns about declining consumer demand and increased competition in the fast-food sector.
- Upwork Under Pressure: Upwork shares dropped to a fresh 52-week low of $10.02 amid slowing hiring demand and fierce competition from AI developments, with 2026 revenue guidance falling short of analyst expectations, prompting continued investor pullback.
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