Shifting tastes have led consumers away from traditional sodas and towards “functional beverages” that provided added benefits like improved digestion or sharpened focus. Energy drinks drive this category, and Pepsi doesn’t plan on being left behind. The snack and drink giant announced Friday it has increased its stake in Celsius Energy drinks to 11% in a $585 million deal, strengthening its foothold in the exploding market for low-calorie, vitamin-rich beverages. Pepsi now controls distribution for three popular energy drinks: Celsius, Alani Nu and Rockstar.
Today we announced an agreement to strengthen our strategic partnership with CELSIUS Holdings, marking a meaningful milestone in PepsiCo’s ongoing beverage portfolio transformation.
Whether through partnership, acquisition, or innovation, we’re reshaping our portfolio for long-term growth and expanding our presence in high-growth categories like functional beverages. This latest move deepens our strategic partnership with Celsius Holdings and brings together Celsius, Alani Nu, and Rockstar under a more unified commercial approach.
PepsiCo will distribute the Celsius Holdings energy portfolio, including Celsius, Alani Nu, and Rockstar, across the U.S. and Canada, expanding reach and execution across channels. Celsius Holdings has acquired the Rockstar brand in the U.S. and Canada, while Alani Nu joins the PepsiCo distribution system. Celsius will lead brand strategy for all three energy brands in the U.S., while PepsiCo focuses on distribution – leveraging the strengths of both companies to better serve our retailers and consumers, and better compete in the energy category.
This builds on momentum from recent moves like our acquisition of poppi and the upcoming launch of Pepsi Prebiotic Cola, as we continue to evolve our lineup to reflect changing consumer priorities.
Looking forward to partnering with John Fieldly and Eric Hanson on this next chapter of energy. And excited for what’s ahead as we reshape our PepsiCo portfolio for continued growth.
They have to…they’re still a distant 3rd in the energy category, and their flagship Pepsi continues its fall down the rankings…