Under the agreement, Qifeng Food will be granted the exclusive license rights to manufacture, market and commercialize Celsius Branded Products in China.
Celsius Holdings Inc., a global maker of the leading global fitness drink, CELSIUS, has announced that they have executed a definitive agreement to establish a royalty license and repayment of investment agreement with Qifeng Food Technology (Beijing) Co., Ltd., creating a risk-mitigated method of capturing market share in China.
Under the agreement, Qifeng Food will be granted the exclusive license rights to manufacture, market and commercialize Celsius Branded Products in China. Qifeng Food will provide a return of a fixed $6.9 million as a license fee covering the first five years, then transitioning to a volume-based royalty fee.
In addition, Qifeng Food will repay all capital Celsius has invested into the China market to date, over a five-year loan term.
