Celsius, an energy drink brand that achieved $1bn in sales last year, has experienced significant growth in the US. However, its international distribution is currently limited.
The brand’s ‘new age energy’ positioning reaches beyond the typical consumer base for energy drinks, which sets it apart in the category. CEO John Fieldly remarked that Celsius’ typical drinkers “consume Celsius, but don’t consider themselves as energy drink consumers.”
Celsius uses functional ingredients such as ginger, guarana, green tea, and 7 vitamins in a proprietary blend called MetaPlus. The drink contains no sugar, aspartame, high fructose corn syrup, or artificial colors or flavors. It is also certified gluten-free, kosher, and non-GMO.
Since its founding in Florida in 2005, Celsius has steadily grown, reaching sales of $300m in 2021. A $550m investment from PepsiCo in 2022 has further propelled the brand, leading to its achievement of $1bn in sales.
The brand’s international sales have been increasing, with a 34% rise in European sales over the first nine months of 2023 compared to the same period in 2022. However, international revenues of $31m are still significantly smaller than the $930m recorded in North America.
PepsiCo’s $550m investment in Celsius in 2022 established an 8.5% ownership share in the company and a long-term strategic distribution arrangement. The distribution agreement is now being expanded to include Canada, with PepsiCo set to distribute Celsius exclusively. In the UK and Ireland, Suntory Beverage & Food Great Britain and Ireland will become the exclusive sales and distribution partner for Celsius.
Suntory Beverage & Food GB&I’s Chief Operating Officer, Carol Robert, expressed confidence in the company’s ability to successfully launch and grow Celsius in the UK and Ireland. Celsius is currently sold across various retail segments in the US, including supermarkets, convenience stores, drug stores, nutritional stores, mass merchants, health clubs, gyms, and e-commerce websites.
