Companies further align strategic energy partnerships to better serve retailers and consumers Celsius Holdings and PepsiCo announced an agreement to strengthen their long-term strategic partnership. As part of the agreement:…

Companies further align strategic energy partnerships to better serve retailers and consumers

Celsius Holdings and PepsiCo announced an agreement to strengthen their long-term strategic partnership. As part of the agreement: (i) Celsius Holdings’ Alani Nu brand will move into the PepsiCo distribution system in the U.S. and Canada, (ii) PepsiCo has acquired $585 million in newly issued convertible 5 per cent preferred stock while extending its existing preferred stock to the same conversion period and (iii) Celsius Holdings has acquired the Rockstar Energy brand in the U.S. and Canada from PepsiCo. PepsiCo will continue to own the Rockstar Energy brand internationally. Celsius Holdings will become the PepsiCo strategic energy lead in the U.S., managing the CELSIUS, Alani Nu and Rockstar Energy brands, while PepsiCo will lead distribution for the Celsius Holdings portfolio in the U.S. and Canada.

PepsiCo’s ownership in Celsius Holdings increased to approximately 11 per cent on an as-converted basis, and PepsiCo will nominate an additional director to serve on Celsius Holdings’ board of directors, further strategically aligning both companies for the long term. This agreement leverages the respective strengths of Celsius Holdings and PepsiCo to scale the combined energy drink portfolio with a more unified commercial strategy.

As the fastest-growing brand in modern energy, Alani Nu complements PepsiCo’s energy distribution portfolio, appealing to new female consumers focused on fitness and lifestyle. Alani Nu’s move into the PepsiCo system is expected to increase the brand’s retail availability in the U.S. and Canada, including within foodservice and other growth channels. For Celsius Holdings, the Rockstar Energy brand will be additive to its portfolio, attracting incremental consumers who prefer classic energy drink flavours and formats. PepsiCo will continue to distribute Rockstar Energy in the U.S. and Canada for Celsius Holdings.