Celsius (NASDAQ:CELH) executives used a conference presentation to outline how the company is positioning its expanding portfolio to benefit from what management described as a structural shift in the U.S. energy drink category toward zero-sugar, functional products and more everyday consumption occasions.
Chairman and CEO John Fieldly appeared alongside President and COO Eric Hanson and Chief Brand Officer Kyle Watson, emphasizing that the business has moved from a “one brand company” to a multi-brand functional beverage platform following acquisitions that added Alani Nu and Rockstar Energy. Fieldly said the company has “validated” its portfolio strategy over the past year and is now focused on evolving its operating model to support scale, execution discipline, and profitability.
Portfolio strategy and category tailwinds
Management pointed to the growth contribution of zero-sugar energy as evidence of a structural change. Fieldly said 85% of energy growth is now coming from zero-sugar products, representing roughly $2.7 billion in incremental category growth, and that Celsius Holdings is “driving the largest share of zero sugar energy growth,” accounting for 33% of category growth.
Fieldly also provided a snapshot of the company’s current U.S. position, citing approximately 20% share of the U.S. energy drink category, 99.5% ACV reach, and distribution in more than 250,000 retail outlets. He said the company’s portfolio generated $5.2 billion in retail sales last year and characterized it as a top-two growth portfolio in energy and a top-three energy portfolio overall.
Consumer behavior shifts: frequency and new occasions
Watson said the category’s growth is increasingly tied to repeat behavior and habit formation as energy becomes embedded in daily routines. He cited data showing that 52% of Celsius repeat consumers are purchasing five times or more, which he said is more than seven points higher year-over-year. Watson argued that the increase is notable given energy’s high-switching nature and reflects consistent product delivery.
Executives also described energy expanding into new consumption moments. Fieldly said 32% of consumers report drinking energy more often because they are using it across more occasions, and that 51% of category growth is coming from increased frequency among existing consumers. He added that 33% of consumers drink Celsius as a social drink and 37% consume it with a meal, portraying both as newer occasions for the category.
Watson highlighted demographic expansion as another driver of growth, with female consumers increasingly incorporating energy into planned daily routines and Hispanic consumers showing strong engagement tied to “flavor, functionality, and lifestyle alignment.” He said expectations among these entrants include “energy without trade-offs,” particularly zero sugar and functional benefits.
Three-brand positioning: Celsius, Alani Nu, and Rockstar
Watson described distinct roles for each brand within what management repeatedly called a “total energy portfolio.” He positioned Celsius as the portfolio anchor, emphasizing its zero-sugar, functional benefits and broad appeal across male and female consumers, with particular strength among Gen Z and millennials. He also said flavor innovation is central to driving repeat purchase.
Alani Nu, Watson said, has an “authentic connection with female consumers” and is supported by brand equity rather than reliance on limited-time offers or short-term promotions. He added that it is bringing new consumers into the category and creating new usage occasions.
Rockstar, which the company recently added to the portfolio, was described as a brand with awareness and credibility in “core energy occasions.” Watson said the company is taking a “disciplined and phased approach” to modernize and rebuild Rockstar, starting with stabilizing performance, improving execution, and sharpening positioning, with the goal of adding incremental reach and long-term optionality.
PepsiCo partnership and retail execution
Fieldly and Hanson repeatedly pointed to the PepsiCo partnership as a key component of the company’s execution model. Fieldly said the relationship has evolved into a “true growth engine,” combining Celsius’ portfolio strategy with PepsiCo’s scale and distribution. He noted the company’s 99.5% ACV reach through PepsiCo’s DSD network and said the partnership is enabling consistent in-market execution.
Fieldly cited improved shelf outcomes tied to the broader assortment and retail execution, including more than 25% increased shelf space, increased cooler placements, and velocity up 6%. He also identified convenience as a major opportunity, saying it represents about 60% of energy drink sales and remains a “white space” area for the portfolio.
Coming out of retail resets, Fieldly said the company anticipates Celsius will achieve distribution and space gains within its retail footprint of over 17%, while Alani Nu is expected to see more than 100% distribution increase, with a significant portion of the added space coming from convenience.
Operating model, revenue management, and international approach
Hanson said the strategy remains centered on reaching “more people, more places, more often,” but added the company is changing “the way we execute” to be more disciplined and deliberate as the business grows more complex. He outlined priorities including integrated commercial planning across brands and channels, upgraded execution capabilities, and investments in technology and data.
He also highlighted revenue growth management as an area of focus, describing efforts around channel-based price pack architecture, more strategic promotional calendars, and improved analysis of promotional effectiveness and trade efficiency. Hanson said the company is investing in RGM data, tools, and talent to support sustainable and profitable growth.
On technology, Hanson described the company’s CRM as a foundation for field execution, providing access to playbooks and historical data and enabling teams to identify opportunities and place orders. He said the company is also harnessing AI capabilities within its CRM to improve routing, prioritization, and in-store decision-making.
Internationally, Hanson described a deliberate approach, noting the company is currently present in about 10 markets and views international expansion as a long-term opportunity. He said the company intends to prioritize select markets with intentional entry and resource-backed launch plans, emphasizing that international remains a smaller portion of the business today.
In closing remarks, Fieldly reiterated that management views the company as operating from a position of financial strength, citing cash generation and operating leverage, and said the business is “built for scale” as zero-sugar and functional energy continues to expand.
About Celsius (NASDAQ:CELH)
Celsius Holdings, Inc is an American beverage company known for its line of fitness and energy drinks formulated to support active lifestyles. The company’s flagship product, the Celsius® brand, features beverages enhanced with ingredients such as green tea extract, guarana seed extract and essential vitamins, positioned as a functional alternative to traditional energy drinks. These products are designed to deliver a blend of ingredients that support metabolism and sustained energy without high sugar content or artificial preservatives.
In addition to its core carbonated drink portfolio, Celsius has expanded its offerings to include powder mixes and non-carbonated ready-to-drink variants, catering to consumer preferences around taste, convenience and nutritional needs.
