PepsiCo & Celsius Holdings Deal | Energy Drinks Market Potential Impacts

It was just announced that PepsiCo (NASDAQ: PEP) entered into a long-term agreement to be the preferred global distribution partner for Celsius Holdings (NASDAQ: CELH). PepsiCo will also make a net cash investment of $550 million in exchange for 8.5% ownership of Celsius Holdings. With the Bang Energy deal coming to an abrupt end in June 2022, PepsiCo couldn’t risk falling behind in one of the fastest growing mature beverage categories. So, what does the PepsiCo and Celsius Holdings deal mean to the broader energy drinks market? This was the deal to make for PepsiCo, as Celsius Holdings is about two to three times bigger from a revenue perspective compared to C4 Energy or Alani Nu. This was also the most disruptive option for the energy drinks market because Celsius Holdings had 300+ unique DSD partners. Most of these were added in the last two years and will create a déjà vu moment for these independent DSD partners that will again be forced to replace another massive energy drink brand on their trucks. Which energy drink brands will benefit from the market chaos? Outside of Celsius Holdings, beneficiaries will be Bang Energy, C4 Energy, and Alani Nu. Additionally, next-tier energy drink brands like G Fuel, Kill Cliff, LifeAid Beverage, and even the newly launched energy drink from the supplement industry powerhouse 1st Phorm will get some benefit from the DSD reshuffling. But arguably the biggest indirect winner of the PepsiCo and Celsius Holdings deal is GHOST Energy. FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS LINKEDIN - https://www.linkedin.com/in/joshuaschallmba TWITTER - https://www.twitter.com/joshua_schall INSTAGRAM - https://www.instagram.com/joshua_schall FACEBOOK - https://www.facebook.com/jschallconsulting MEDIUM - https://www.medium.com/@joshuaschall