PepsiCo Inc. announced today that it is increasing its stake in Celsius Holdings Inc. to 11% through a $585 million deal, which will expand the distribution of some of the energy-drink maker’s popular products.
As part of the deal, Celsius will take over PepsiCo’s Rockstar Energy brand in the US and Canada.
Additionally, the company stated, “Integrating the female-focused Alani Nu brand into PepsiCo’s leading distribution system is expected to unlock greater growth potential through expanded geographic reach, enhanced foodservice penetration and access to new channels.”
John Fieldly, Chairman and CEO of Celsius Holdings stated, “Stepping into the role of PepsiCo’s strategic energy drink captain in the U.S. is expected to be a pivotal milestone in our journey to shape the future of modern energy and grow our brands within a leading beverage distribution system. With a proven functional beverage portfolio and a stronger long-term partnership with PepsiCo, we believe that Celsius Holdings is well-positioned to deliver greater innovation, sharper execution and sustained brand growth.”
Ram Krishnan, CEO of PepsiCo Beverages U.S, told investors, “This agreement marks the next step in PepsiCo reshaping its brand portfolio to position us for long-term growth. Energy is an important growth category, and we believe this move with our partner Celsius creates a stronger multi-brand energy portfolio that is better positioned to serve different consumer cohorts. This transaction creates an aligned incentive structure for both parties to bring their individual expertise to better compete in the energy category.”
Today, PepsiCo stated that it will purchase convertible preferred stock in Celsius to increase its ownership stake. In 2022, PepsiCo paid $550 million for an 8.5% interest in Celsius through a preferred stock deal.
By CEO NA Editorial Staff
