Long-Term strategic partnership formed by Celsius Holdings and PepsiCo

Together, Celsius Holdings, Inc. and PepsiCo, Inc. announced that the two companies have entered into a long-term strategic partnership agreement. Some of the necessary pieces of the agreement will include Celsius Holdings’ Alani Nu brand to transition into the PepsiCo distribution system in the United States (US) and Canada, PepsiCo acquired $585 million in newly issued convertible 5% preferred stock, as well as lengthening their current preferred stock to the same conversion period, and PepsiCo’s Rockstar Energy brand has been acquired by Celsius Holdings in both the US and Canada.¹ With this agreement, Celsius Holdings will become the strategic energy lead for PepsiCo, and manage the Celsius, Alani Nu, and Rockstar Energy brands. PepsiCo will handle Celsius Holdings portfolio distribution in both Canada and the US.

More details in the press release disclosed that PepsiCo’s ownership in Celsius Holdings expanded their ownership in Celsius Holdings by almost 11% on an “as-converted basis”, PepsiCo will also need to nominate an additional director that will serve on the board of directors for Celsius Holdings.¹ With this agreement, PepsiCo and Celsius Holdings will be able to grow their combined energy drink portfolio and target with a “unified commercial strategy.”

With Alani Nu transitioning into PepsiCo’s distribution system, the product will help the company can help bring in female consumers that are interested in both lifestyle and fitness. This move is anticipated to raise the brand’s “retail availability” within the US and Canada, which will also pertain to within food service and other growth channels.¹ As Celsius Holdings, obtains the Rockstar Energy brand to their product offerings, the company will be able to entice consumers who appreciate “classic energy drink flavors and formats.”¹ Rockstar Energy will still remain to be distributed by PepsiCo for Celsius Holdings, within Canada and the US.

“Stepping into the role of PepsiCo’s strategic energy drink captain in the U.S. is expected to be a pivotal milestone in our journey to shape the future of modern energy and grow our brands within a leading beverage distribution system. With a proven functional beverage portfolio and a stronger long-term partnership with PepsiCo, we believe that Celsius Holdings is well-positioned to deliver greater innovation, sharper execution and sustained brand growth,” John Fieldly, Chairman and CEO of Celsius Holdings, said.¹ “Together, we will reach more people, in more places, more often, with a total energy portfolio that offers options for every consumer and creates greater value for all our stakeholders.”

“This agreement marks the next step in PepsiCo reshaping its brand portfolio to position us for long-term growth,” said Ram Krishnan, CEO PepsiCo Beverages U.S.¹ “Energy is an important growth category, and we believe this move with our partner Celsius creates a stronger multi-brand energy portfolio that is better positioned to serve different consumer cohorts. This transaction creates an aligned incentive structure for both parties to bring their individual expertise to better compete in the energy category.”

The press release mentioned that the companies’ strategic rationale included¹:

• Increased strategic alignment: By becoming PepsiCo’s strategic energy drink captain in the U.S., Celsius Holdings will have the opportunity to drive the strategic direction of a unified energy portfolio through seamless planogram design, SKU prioritization and promotional execution. PepsiCo will lead distribution for all three energy drink brands in the U.S. and Canada – CELSIUS, Alani Nu and Rockstar Energy – allowing PepsiCo to further scale and expand distribution, streamline commercial strategy, reach different consumer cohorts and better serve customers.
• Expanded distribution of Alani Nu: Integrating the female-focused Alani Nu brand into PepsiCo’s leading distribution system is expected to unlock greater growth potential through expanded geographic reach, enhanced foodservice penetration and access to new channels.
• Addition of Rockstar Energy broadens Celsius Holdings’ total energy portfolio: The addition of Rockstar Energy to Celsius Holdings’ portfolio adds classic energy to complement its performance-forward and modern energy offerings. This will contribute to a total energy portfolio approach that appeals to a broader range of consumers with varied tastes and lifestyles.
• Financial benefits driving shareholder value creation: This enhanced strategic partnership further aligns incentives between PepsiCo and Celsius Holdings and is expected to accelerate the partnership’s performance, driving value for shareholders of both companies.

Reference

1. Celsius Holdings. Celsius holdings and PepsiCo strengthen long-term strategic partnership https://www.businesswire.com/news/home/20250828083699/en/Celsius-Holdings-and-PepsiCo-Strengthen-Long-Term-Strategic-Partnership (accessed Aug 29, 2025).