This morning, PepsiCo announced a $550 million investment in Celsius Holdings that will give PepsiCo US distribution of the fast-growing energy drink line and rights to global distribution of Celsius. A deal between the two public companies was speculated following the tumultuous
of a long-term distribution deal between PepsiCo and Bang Energy. Celsius has accelerated its growth since the 2020 PepsiCo-Bang deal was signed by moving into the former beer distribution system vacated by Bang Energy.
The agreement is effective today. PepsiCo will add a member to Celsius Holdings’ board and receive convertible preferred stock. There are exceptions to the US distribution, likely for some existing distributors. The deal includes retail and foodservice channels.
From the joint press release:
“We are extremely pleased to partner with Celsius and excited about the opportunity for our two organizations to drive growth and innovation in the energy beverage category,” said Kirk Tanner, CEO, PepsiCo Beverages North America. “The Celsius brand’s growing momentum coupled with the strength of PepsiCo’s portfolio and go-to-market capabilities create a combination we believe will be very compelling and valuable to retailers and consumers. We are looking forward to seeing the impact these two outstanding organizations can make together to more fully capture energy occasions.”
Celsius President, Chairman and CEO, John Fieldly, commented, “I would first like to thank our employees and partners who have helped facilitate our rapid growth. We believe the opportunity to partner with a global best-in-class distributor provides Celsius with significant near-term additional shelf space in both existing retailers as well as new expansion within the independent retailers that represent a significant portion of the U.S. convenience and gas channel where approximately 70% of energy drinks are sold. It also provides a strategic partnership that is expected to accelerate growth for both companies globally. In addition, this partnership will drive efficiencies allowing our teams to consolidate sales, marketing, and distribution efforts with associated cost benefits, which we expect to recognize once the initial transition is completed. We look forward to partnering with PepsiCo and maximizing the opportunities we see ahead for Celsius and our shareholders.”
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