PepsiCo Expands Stake in Celsius In $585 Million Deal

PepsiCo Expands Stake in Celsius In $585 Million Deal
PepsiCo Expands Stake in Celsius In $585 Million Deal

PepsiCo has strengthened its footprint in the fast-growing energy drink market with a $585 million investment in Celsius Holdings.

The soda giant purchased 5% in Celsius’ preferred stock, raising its total stake to about 11% after conversion, up from the 8.5% it secured in 2022 with a $550 million deal.

News of the expanded stake sent Celsius shares soaring 11% in premarket trading, building on a year in which the stock has already more than doubled in value. The surge underscores investor confidence in Celsius’ growth trajectory and PepsiCo’s ability to scale its distribution and visibility globally.

As part of the agreement, Celsius’ health and wellness drinks brand, Alani Nu, will now enter PepsiCo’s powerful U.S. and Canadian distribution network.

The move positions PepsiCo to capture a larger share of the booming fitness-focused beverage market, particularly among female consumers driving Alani Nu’s rapid growth.

Celsius’ $1.8 billion acquisition of Alani Nutrition earlier this year set the stage for this expanded partnership. With PepsiCo’s backing, both Celsius and Alani Nu are poised to accelerate growth in the health-conscious energy and wellness drinks segment, intensifying competition with Monster and Red Bull.

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Receive the latest news

Subscribe To Our Newsletter

Get notified about new articles