stockrowWhat it does
Celsius Holdings is an energy drink and wellness beverage company operating in the United States and internationally. Its principal brands are CELSIUS, Alani Nu and Rockstar. John Fieldly is chairman and chief executive officer.
The company sells ready-to-drink caffeinated beverages, mostly in cans, as well as single-serve powders that consumers mix with water. Some products are sugar-free or low-calorie; formulations include ingredients such as caffeine, vitamins, electrolytes and botanical extracts. Its range also includes hydration powders, protein and nutrition products, amino blends and other supplements.
CELSIUS targets consumers interested in energy, fitness and wellness. Alani Nu extends the portfolio into energy, nutrition and supplements, while Rockstar serves consumers of traditional energy drinks. The brands offer different flavors, formulations and formats for consumers with different preferences.
Celsius develops and markets its products, arranges production and sells them through distributors and retailers. Shoppers can find them in grocery and convenience stores, fitness centers, mass-market retailers, specialty stores and online. The company uses outside beverage manufacturers for most production alongside its own facility, and Pepsi is its primary distributor for the portfolio in the United States and Canada.
How it makes money
Celsius makes money by selling drinks and other products to distributors, online retailers and physical retailers. Its reportable segment generated $2.5 billion in revenue in FY2025. In Q3 2026, Celsius reported revenue growth from a year earlier, although some shipments planned for the following quarter moved into that period.
Ready-to-drink energy beverages are the main product type. The portfolio also includes powders, hydration sticks and selected nutrition products. CELSIUS and Alani Nu offer wellness products in addition to energy drinks; Rockstar includes both full-sugar and zero-sugar beverages. Different flavors, pack formats and brands give the company products to sell across retail channels and price points.
The business depends on consumers buying beverages repeatedly rather than on subscriptions or contracted recurring payments. Celsius supports sales with marketing, sponsorships, sampling and in-store displays. It also offers distributors and retailers volume rebates, promotions, placement fees, listing fees and other discounts. These incentives support distribution and shelf space but affect what the company retains from gross sales.
Celsius positions CELSIUS and Alani Nu as premium brands. Its pricing approach follows the broader category rather than leading it, while considering pack sizes and promotions by account. The company is developing a portfolio-wide program for pricing, packs and trade spending across its brands. It expects trade investment as a percentage of gross sales to improve as the program takes hold, with benefits building through 2027 and into 2028.
Product sales typically have their highest volumes in the second and third calendar quarters, although Celsius says those seasonal fluctuations have not materially affected full-year financial results.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Reportable Segment | $2.5 billion | 100.0% | 85.5% |
Customers and how it sells
Celsius sells primarily to distributors, e-commerce retailers and brick-and-mortar customers, including grocery and convenience stores, club stores, gyms and nutrition stores. Its products also reach consumers through drugstores, food service providers, mass merchants and online platforms. Domestic distribution combines direct-store-delivery networks, independent distributors and direct sales to retailers.
Pepsi is both a major customer and the primary distributor for CELSIUS, Alani Nu and Rockstar in the United States and Canada. Sales to Pepsi represented 43.2% of Celsius revenue in FY2025, while Costco represented 10.8%. Celsius provides financial incentives to support customers’ distribution, sales and marketing of its products.
North America generated $2.4 billion of revenue in FY2025, or 96.3% of the total. Europe generated $72.5 million and Asia-Pacific generated $13.0 million. Products are also available in the Middle East.
Outside North America, Celsius uses regional and country-specific distribution partners. Its arrangements with the Suntory Group cover selected markets in Europe and Asia-Pacific. The company relies on these partners for sales and distribution infrastructure in their territories.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| North America | $2.4 billion | 96.3% | 89.1% |
| Europe | $72.5 million | 2.88% | 17.6% |
| Asia-Pacific | $13.0 million | 0.52% | 129.3% |
| Other | $7.3 million | 0.29% | −1.60% |
Suppliers and costs
Celsius relies primarily on outside beverage co-packers to produce its drinks, powders and other wellness products, while also using an in-house manufacturing facility. It buys most ingredients and all packaging materials; co-packers and its own operations assemble the products. Co-packers charge a fee per case.
Principal inputs include aluminum cans, packaging components, flavors, sweeteners, caffeine, vitamins, minerals and botanical extracts. Celsius sources packaging and most other ingredients from multiple suppliers and says it is not dependent on a single supplier for its overall raw-material or packaging needs. Some individual materials, however, are available from a limited number of suppliers.
The company also incurs freight, sales, marketing and promotional costs. It has worked on its manufacturing plant, direct sourcing and product costs as part of its integration efforts. Celsius said elevated aluminum and diesel costs pressured margins in Q3 2026, and that higher commodity costs were slowing its margin expansion plans. It expects full-year gross margin to remain in the high range it described, depending on commodity fluctuations.
- Revenue$2.5B
- Cost of revenue−$1.2B
- Selling, general and administrative−$798.8M
- Other operating costs−$327.5M
- Operating income$141.1M
Competitive position
Celsius competes in functional energy drinks and, more broadly, across non-alcoholic beverages. Named direct energy-drink competitors include Monster Beverage, Red Bull, The Coca-Cola Company, Pepsi, Keurig Dr Pepper, Nestlé, BlueTriton Brands, Starbucks, Congo Brands and Molson Coors. Pepsi is also Celsius’s primary distributor in the United States and Canada.
Celsius said its combined portfolio held approximately 21.0% of U.S. energy-category dollar sales in tracked channels in Q3 2026. Its brands use different formulations, flavors and consumer positioning, while marketing includes social media, sponsorships, sampling and retail displays.
The company has registered or applied to register its brand trademarks and protects product formulas as trade secrets. Its distribution arrangements place products across retail channels, and Pepsi has agreed to work with Celsius on U.S. sales, placement and promotional priorities.
Our reading: The brands and their trademarks provide a meaningful basis for differentiation, but consumer preferences and competing products can still change. Our reading: Pepsi’s distribution network provides access to retailers, although reliance on a distributor that also competes in beverages limits Celsius’s control over that advantage. Our reading: Confidential formulas provide some protection, but the available evidence does not establish that they prevent competitors from offering alternatives.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Monster Beverage Corporation | Functional energy drinks | High |
| Red Bull GmbH | Functional energy drinks | High |
| The Coca-Cola Company | Functional energy drinks and non-alcoholic beverages | High |
| Pepsi | Functional energy drinks; also Celsius’s primary distributor | High |
| Keurig Dr Pepper Inc. | Functional energy drinks | Medium |
| Nestlé S.A. | Functional energy drinks | Medium |
| BlueTriton Brands | Functional energy drinks | Medium |
| Starbucks Corporation | Functional energy drinks | Medium |
Growth opportunities
Celsius is pursuing growth through product innovation, distribution, brand marketing and international expansion. Its portfolio includes the acquired Alani Nu and Rockstar brands alongside CELSIUS. The company is organizing the business into brand-led units, each with a dedicated president responsible for its strategy, growth and performance.
Celsius said it deliberately delayed innovation for the CELSIUS brand while bringing Alani Nu and Rockstar into its system. It plans new flavors, lines and permanent products across CELSIUS and Alani Nu in 2027. For Rockstar, its plans include expanding distribution, improving sales of core products and reaching new consumers through music, motorsports and college towns.
The company said its non-U.S. revenue grew year over year in Q3 2026 and that its category share rose year over year in each of its new European markets. It is building awareness and trial in several European countries with local partners and is finalizing international markets for planned Alani Nu launches in 2027.
Celsius also expects its expanded Pepsi relationship to support distribution of acquired brands. In Q3 2026, however, U.S. orders for the CELSIUS brand ran below retail scans as the distribution system worked through inventory. The company expects the CELSIUS brand to return to growth in 2027.
- $314.3MFY2021
- $653.6MFY2022
- $1.3BFY2023
- $1.4BFY2024
- $2.5BFY2025
Structural risks
- Distributor dependence: Celsius relies on Pepsi and other distributors to sell and deliver products. A disagreement, termination, reduced support or a distributor’s decision to prioritize competing brands could disrupt sales. Pepsi also has preferred equity and designated board representation, which may create conflicts with other shareholders.
- Manufacturing and inputs: Most products are made by co-packers that could face capacity, quality or compliance problems. Aluminum and other materials can become more expensive or scarce, and Celsius may not be able to pass higher costs on to customers.
- Acquisition integration: Integrating Alani Nu and Rockstar requires alignment of systems, supply chains and teams. The brands could also compete with one another for customers or shelf space, and acquisitions have increased indebtedness and related expenses.
- Customer and retail pressure: Customers can stop carrying products, while consolidation among retailers and distributors can lead to lower prices or greater demands for promotional spending. Changes in consumer preferences can also affect demand.
- Brand and product confidence: Product quality issues, negative publicity or influencer conduct could damage consumer trust. Co-packer compliance failures or perceived contamination could trigger recalls, litigation or lost confidence.
Leadership
Pepsi holds preferred equity in Celsius and has the right to designate two board members. Celsius says this position may give Pepsi influence over strategic and governance decisions, and its interests may not always align with those of other shareholders.
| Name | Role | Since | Total pay, FY2025 |
|---|---|---|---|
| John Fieldly | — | $9.6 million | |
| Eric Hanson | — | $5.5 million | |
| Jarrod Langhans | — | $3.9 million | |
| Tony Guilfoyle | — | $3.2 million | |
| Richard Mattessich | — | $3.1 million |
Bottom line
Our reading
Celsius is a branded beverage business that depends on repeat purchases, retail placement and outsourced production. Its portfolio and distribution arrangements give it ways to reach different energy-drink consumers, but Pepsi is both a major route to market and a concentration risk. Growth also depends on integrating acquired brands, renewing product demand and managing volatile input costs.