PepsiCo has strengthened its presence in the fast growing energy drinks market by investing 585 million dollars in Celsius Holdings through convertible preferred stock. Following conversion, PepsiCo’s stake will rise to about 11 per cent. The company had earlier invested 550 million dollars in 2022 for an 8.5 per cent stake, which also established a commercial partnership that placed Celsius within PepsiCo’s route to market system.
As part of the new agreement, Celsius’ Alani Nu brand will shift into PepsiCo’s distribution network across the United States and Canada. This move is designed to align portfolio execution with a female focused energy proposition.
In addition, Celsius will acquire the Rockstar Energy brand from PepsiCo in the United States and Canada, while PepsiCo will continue to retain international rights. The step consolidates energy category management under one platform and eliminates internal competition between PepsiCo’s distributed and owned brands. PepsiCo will remain a strategic investor and distribution partner for Celsius.
Shares of Celsius, which have already more than doubled this year, gained further in early trading after the announcement, showing strong investor confidence in the realignment.
The deal also includes governance changes. PepsiCo will appoint another director to the Celsius board, strengthening cooperation on growth and operations across both retail and foodservice channels. For retailers, this means Celsius, Alani Nu and Rockstar products will be managed under one system in the United States and Canada, making assortment planning, promotional strategies and resets more efficient ahead of the holiday season. Distribution of Alani Nu through PepsiCo’s network is also expected to boost shelf presence and sales momentum.
From a category perspective, PepsiCo is increasing its exposure to the energy segment, which is expanding faster than traditional soft drinks. Celsius gains a broader portfolio to serve diverse consumer needs across both health oriented and classic flavours. With Celsius’ earlier 1.8 billion dollar acquisition of Alani Nutrition, the combined portfolio is now positioned to target both mainstream and niche segments with sharper channel strategies spanning convenience, grocery, club stores and e commerce.
This latest move highlights ongoing consolidation and optimisation in the beverage industry, with stronger distribution networks and brand focus expected to drive growth through 2025.
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