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: 44.390
Low
45.00
Averages
62.85
High
80.00
Current: 44.390
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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- Strong Cash Flow: Last year, PepsiCo generated nearly $12.1 billion in operating cash flow, comfortably covering $4.4 billion in capital expenditures and $7.6 billion in dividend payments, reflecting its financial stability and supporting its A+ credit rating.
- Future Return Plans: PepsiCo anticipates paying $7.9 billion in dividends by 2026 and plans to repurchase $1 billion of its stock as part of a newly announced $10 billion repurchase program, further enhancing shareholder returns.
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- Dividend Increase: PepsiCo has announced a 4% increase in its dividend, marking its 54th consecutive year of dividend growth, which underscores the company's robust cash flow and profitability, solidifying its status as a Dividend King.
- Strong Cash Flow: Last year, PepsiCo generated nearly $12.1 billion in operating cash flow, comfortably covering $4.4 billion in capital expenditures and $7.6 billion in dividend payments, demonstrating its strong financial health and commitment to shareholder returns.
- Future Commitments: By 2026, PepsiCo anticipates paying $7.9 billion in dividends and plans to repurchase $1 billion of its stock as part of a newly announced $10 billion buyback program, reflecting the company's confidence in future growth and commitment to shareholders.
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- Executive Presentation: Celsius Holdings' CEO John Fieldly, COO Eric Hanson, and CBO Kyle Watson will present at the Consumer Analyst Group of New York (CAGNY) Conference on February 19, 2026, showcasing the company's strategy and market outlook, which is expected to attract investor interest.
- Earnings Release Schedule: The company plans to release its fourth quarter and full-year 2025 financial results before market open on February 26, 2026, followed by a conference call to analyze the financial results and address investor inquiries, enhancing transparency and investor confidence.
- Webcast and Replay: Celsius will provide live webcasts and replays of the conference on its investor relations website, ensuring investors can access key information in a timely manner, in compliance with the SEC's Regulation Fair Disclosure, thereby enhancing the breadth of information dissemination.
- Functional Beverage Market Positioning: Celsius Holdings focuses on the functional beverage market, with brands like CELSIUS® and Alani Nu®, meeting the demand for healthy drinks through innovative products, further solidifying its market position in the rapidly growing functional beverage sector.
See More
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- New Board Members: Celsius Holdings has appointed Christy Jacoby and John Short to its Board of Directors, replacing Israel Kontorovsky and Michael Del Pozzo, aiming to enhance the board's expertise to support the company's long-term value creation strategy.
- Jacoby's Background: Christy Jacoby currently serves as Senior Vice President and CFO of PepsiCo North America Operations, overseeing approximately $40 billion in food and beverage business, bringing over 20 years of finance and operational leadership experience, which is expected to provide Celsius with deep financial strategy and performance insights.
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See More
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- PepsiCo's Dividend Growth: PepsiCo, known for its iconic brands like Pepsi and Gatorade, raised its dividend by 5% last year, marking 53 consecutive years of increases, with a current yield of 3.8% that significantly outpaces the S&P 500's 1.1%, showcasing the company's robust cash flow and commitment to shareholder returns.
- Main Street Capital's Unique Policy: As a business development company, Main Street Capital provides capital to lower middle-market firms, achieving a 4% dividend increase over the past year and a total growth of 136% since its 2007 IPO, with a monthly dividend policy that ensures sustainable cash flow, currently yielding 6.7%.
- Verizon's Stable Cash Flow: Verizon generates approximately $20 billion in free cash flow annually, supporting its 6.9% dividend, and has increased its dividend for 19 consecutive years; the recent $20 billion acquisition of Frontier Communications is expected to enhance its fiber network, boosting revenue and margins.
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See More
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- Main Street Capital's Unique Policy: Main Street Capital maintains a sustainable monthly dividend policy, increasing its payout by 4% over the past year and achieving a total increase of 136% since its 2007 IPO, resulting in a 6.7% yield that provides investors with a reliable passive income stream.
- Verizon's Financial Flexibility: Verizon generates approximately $20 billion in free cash flow annually, supporting its 6.9% dividend payments, and has consistently raised its dividend for 19 years, showcasing its strong profitability and market position.
- Acquisition Enhances Growth Potential: Verizon's recent $20 billion acquisition of Frontier Communications aims to bolster its fiber network, which will enhance cross-selling capabilities, driving revenue and margin growth, thereby reinforcing its ability to sustain dividend payments.
See More
