• Loading stock data...
Saturday, November 2, 2024
The Best Employers in Sports survey is open through Nov. 6 Learn More

PepsiCo Invests $550M In Exercise-Focused Celsius

  • PepsiCo has made a $550 million investment in Celsius Holdings.
  • The long-term distribution deal gives Pepsi a roughly 8.5% minority stake.
Woman-drinking-Celsius
Celsius

PepsiCo is taking a bigger stake in the energy drink space.

The beverage company has made a $550 million investment in Celsius Holdings, an energy drink maker that recorded a first-quarter domestic revenue increase of 217% to $123.5 million.

The long-term distribution deal gives Pepsi a minority stake of about 8.5%. The company will nominate a director to serve on Celsius’ board.

Celsius adds to PepsiCo’s energy drink portfolio, which already includes Rockstar as well as Mountain Dew drinks Amp, Game Fuel, and Kickstart.

  • Celsius targets young, active consumers who exercise. The brand has a line of energy drinks, performance energy drinks, recovery fuel, and other beverages.
  • The brand claims its drinks have thermogenic properties that help accelerate metabolism and burn calories, and don’t use artificial preservatives or sugar.

In Pepsi’s earnings call earlier this month, CEO Ramon Laguarta said that “in beverages, non-sugar is growing three times the speed of full sugar.”

Celsius Rising

Celsius isn’t the first energy drink company Pepsi has invested in recently. The company bought Rockstar for $3.85 billion in 2020. This year, Celsius overtook Rockstar as the fourth-most popular energy drink in a U.S market, worth reportedly $16 billion.

Pepsi entered an exclusive distribution agreement with Bang Energy in 2020, but the relationship ended in June following a legal dispute between the companies.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Sep 28, 2024; Tuscaloosa, Alabama, USA; GOP Presidential candidate Donald Trump waves flanked by former Georgia Bulldogs player Herschel Walker, recording art Kid Rock, professional golfer John Daily, Alabama senators Tommy Tuberville (R) and Katie Britt (R) during the second half of the game between the Alabama Crimson Tide and the Georgia Bulldogs at Bryant-Denny Stadium.

Mission Swing State: College Football’s Political Advertising Battle

Trump, Harris, and the PACs that support them are utilizing the sport.

The Untapped Revenue ‘Powder Keg’ of Women’s NFL Fandom

There’s a “boatload” of money at stake for brands and the league.
Oct 19, 2024; Gainesville, Florida, USA; Florida Gators quarterback DJ Lagway (2) shakes hands while entering the locker room after a game against the Kentucky Wildcats at Ben Hill Griffin Stadium.

NIL Director Is the Trendy New Job in College Sports. But the Role Is Chaos

Athletic departments nationwide are hiring for what’s become their most important position.
FuboTV signage
opinion

Fubo’s Fight Against Streaming Giants Feels Futile

Fubo notched a legal win, but subs and stock still slump.
podcast thumbnail mobile
Front Office Sports Today

First-Ever 12-Team CFP Takes Shape

0:00

Featured Today

Inside The Wall at L.A. Clippers’ New $2B Home

FOS went inside the “contagious” energy at the L.A. Clippers’ Intuit Dome.
Sep 29, 2024; Brooklyn, New York, USA; New York Liberty guard Sabrina Ionescu (20) shoots a three point jump shot over Las Vegas Aces center A'ja Wilson (22) during game one of the 2024 WNBA Semi-finals at Barclays Center.
October 25, 2024

WNBA Facing 4 Big Business Questions This Offseason

Here’s where the WNBA can consider making upgrades after a historic year.
Oct 8, 2024; New York City, New York, USA; New York Mets first baseman Pete Alonso (20) celebrates in the dugout after hitting a solo home run with New York Mets pitcher Luis Severino (left) and pitcher Jose Quintana (right) in the second inning against the Philadelphia Phillies during game three of the NLDS for the 2024 MLB Playoffs at Citi Field.
October 24, 2024

OMG: Indie Designers Cashed In on the Most Gimmicky Mets Season Ever

The Mets’ meme-laden season lives on well beyond their playoff run.
Feb 14, 2024; Dallas, Texas, USA; San Antonio Spurs center Victor Wembanyama (1) looks to move the ball past Dallas Mavericks guard Luka Doncic (77) during the fist quarter at the American Airlines Center.
October 22, 2024

The NBA’s First Billion-Dollar Player Is Inevitable. Who Is He?

More than one player could pass the threshold by 2034.

Skechers Wasn’t Cool. Then NBA Stars Started Wearing Them

The brand is not traditionally cool. Embiid, Randle, and others don’t care.
October 17, 2024

Netflix Shares Rise on Strong Earnings As Christmas NFL Games Lie Ahead

The next two months will include the Tyson-Paul fight and the NFL Christmas Day games.
Sponsored

World Series Delivers High-Demand Marquee Matchup

The hype around the World Series matchup drove ticket prices to record levels—but the Dodgers’ dominance quickly quieted the fervor.
September 21, 2024

Fanatics’ NHL Jersey Plan

The sports merchandising giant rolls out four tiers of redesigned NHL jerseys.
A view of a Nike retail store in New York City.
August 15, 2024

Nike Shares Surge As Bill Ackman Invests, Igniting Turnaround Hopes

The billionaire hedge-fund executive holds significant influence in the market.
Topgolf
August 7, 2024

Callaway ‘Disappointed’ With Topgolf, Exploring Spin-Off

Callaway announced a strategic review of Topgolf during its Q2 report.
June 25, 2024

Mets Owner Buys Chunk of Knicks Owner’s Las Vegas Sphere

Cohen made the investment through his hedge fund, Point72.