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PepsiCo Invests Half Billion Dollars In Energy Drink Maker Celsius

PepsiCo Invests Half Billion Dollars In Energy Drink Maker Celsius

PepsiCo Invests Half Billion Dollars In Energy Drink Maker Celsius

PepsiCo has acquired an 8.5% stake in Celsius Drinks with a $550 million investment in the company.

The deal will help Celsius strengthen its distribution across independent stores such as gas stations and existing retail partners. Meanwhile, the investment will benefit PepsiCo by further cementing the company’s position in the energy drinks market.

The energy drink market has emerged as the fastest growing beverage segment outside of alcohol, which has led FNB giants like PepsiCo to pursue new investment opportunities, especially as consumers’ soda consumption continues to fall. One such key investment was PepsiCo’s $3.85 billion acquisition of energy drink maker Rockstar in 2020.

The company’s latest decision to invest in Celsius came after sales of Celsius drinks surpassed that of Rockstar, making it the fourth most popular energy drink brand in the U.S., CNBC reported. In Q1 of this year, Celsius saw its revenue increase by 217% to $123.5 million.

Since being founded in 2005, the company has reportedly established itself as a leader in the “healthy energy drinks” sector, gaining popularity among younger consumers who lead active lives. The company makes its energy drinks using natural ingredients such as green tea and ginger sans sugar. According to Celsius, its energy drinks also have thermogenic properties, which help increase metabolism and burn calories.

After the news broke, the company’s shares closed 11% higher, raising its market value to $7.45 billion.

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