The two companies also note that Celsius will gain ‘meaningful penetration’ across channels including foodservice, independent convenience (through PepsiCo’s Medals program), vending, college campuses and the military. With PepsiCo, it will get a ‘highly efficient and cohesive route-to-market in North America, with additional global expansion opportunities’. PepsiCo’s ‘very powerful DSD’ (direct store delivery) system is noted as one of the strategic rationale for the Celsius tie-up: providing Celsius with a ‘transformational opportunity to gain immediate scale and accelerate market share by securing access to leading North America DSD network with global reach’.Ĭelsius currently has a fragmented distribution network across regions, with more than 300 distribution partners and points of contact. Laguarta reaffirmed the company’s commitment to the category, citing a ‘multi-pronged approach’ and highlighting the importance of more functionality and less sugar in drinks (Celsius is a functional, zero-sugar drink). In last month’s earnings call, CEO Ramon L.
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How to prep for the perfect weekend: Stock up on CELSIUS ⚡ Which flavor are you grabbing first? /ZhGQbm0x1G- CELSIUS Energy Drink July 15, 2022
The company also has several plays in coffee, such as products for retail with Starbucks. Over the last few years PepsiCo has highlighted energy as a key part of its portfolio moving forward: for example acquiring Rockstar Energy Beverages for $3.85bn in 2020 (revamping the brand and pushing into new territory with Rockstar Energy + Hemp) as well as launching an energy drink link under its Mtn Dew line last year. 2 best-seller in the Amazon energy category (taking a 20% share on this platform). It's enjoyed strong growth in recent years: topping sales of $300m in 2021, noting significant growth in convenience store and vending machine channels as well as becoming the No. The company’s main formula rests on a foundation of green tea and guarana seed extracts, with additional vitamins and ingredients such as l-citrulline or BCAAs depending on the product. Functional energyįounded in Florida in 2005, Celsius’ energy beverages use additional ingredients that aim to provide additional functional benefits beyond caffeine and carbohydrate fuel. The two companies have also announced a long-term strategic distribution arrangement, with PepsiCo taking on US distribution and also becoming the preferred distribution partner globally. The investment will give the beverage and snack giant around an 8.5% ownership share of the company.
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