PepsiCo boosts Celsius stake with US$585M deal to expand energy drink portfolio 

USA – PepsiCo has expanded its investment in Celsius Holdings through a US$585 million transaction, further cementing its position in the fast-growing energy drink market.  

The deal increases PepsiCo’s effective stake in Celsius to 11% following the conversion of a previous US$550 million investment made in 2022. 

As part of the agreement, Celsius will oversee the U.S. energy drink portfolio for both companies, which includes PepsiCo’s Rockstar Energy and the recently acquired Alani Nu brand. PepsiCo, however, will retain international rights to Rockstar.  

The soda and snacks giant will also nominate a director to serve on Celsius’ board, reinforcing the collaboration between the two companies. 

The move comes as the US$23 billion U.S. energy drink category continues to expand, driven by consumer demand for both traditional and functional beverages.  

Celsius CEO John Fieldly noted that the deal strengthens the company’s market position and allows it to act as the “energy captain” within PepsiCo. 

Fieldly added that Celsius has already seen strong early results from its US$1.8 billion acquisition of Alani Nu. The brand, which primarily targets female consumers, relies on a broad network of independent distributors.  

By integrating PepsiCo’s distribution system, Celsius expects to improve efficiency, reduce costs, and significantly expand Alani Nu’s market reach. 

In addition, Celsius will benefit from the inclusion of Rockstar Energy, a brand with a male-focused appeal and a more traditional energy drink profile.  

According to Fieldly, nearly half of the sector’s growth is being driven by conventional energy drink formats, making Rockstar a valuable complement to Celsius’ health-oriented flagship products and Alani Nu’s female-targeted offerings. 

Ram Krishnan, CEO of PepsiCo Beverages North America, described the agreement as a mutually beneficial step that combines PepsiCo’s operational and distribution strengths with Celsius’ expertise in brand building within the energy segment. 

PepsiCo has been steadily expanding its energy drink portfolio in recent years. In 2020, it acquired Rockstar Energy for US$3.85 billion, followed by its 2022 investment and distribution partnership with Celsius.  

The current transaction further refines PepsiCo’s energy drink strategy while allowing the company to focus resources on other beverage innovations, such as its recently acquired Poppi brand and the forthcoming launch of Pepsi Prebiotic Cola. 

“This agreement ensures both companies remain sharply focused on their strengths while positioning for long-term growth,” Krishnan said. 

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