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Celsius Holdings & PepsiCo strengthen long-term strategic partnership
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Wednesday, 03 September, 2025, 16 : 00 PM [IST]
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Florida & New York, USA
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Celsius Holdings, Inc., and PepsiCo, Inc., 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 US and Canada, (ii) PepsiCo has acquired $585 million in newly issued convertible 5% preferred stock while extending its existing preferred stock to the same conversion period and (iii) Celsius Holdings has acquired the Rockstar Energy brand in US and Canada from PepsiCo. PepsiCo will continue to own the Rockstar Energy brand internationally. Celsius Holdings will become the PepsiCo strategic energy lead in US, managing the Celsius, Alani Nu and Rockstar Energy brands, while PepsiCo will lead distribution for the Celsius Holdings portfolio in US and Canada.
The brand’s ownership in the company increased to approximately 11% on an as-converted basis, and it will nominate an additional director to serve on the company’s board of directors, further strategically aligning both companies for the long-term. This agreement leverages the respective strengths to scale the combined energy drink portfolio with a more unified commercial strategy.
As the fastest growing brand in modern energy, its energy distribution portfolio, appealing to new female consumers focused on fitness and lifestyle. Its move into the brand’s system is expected to increase its retail availability in US and Canada, including within foodservice and other growth channels. The Rockstar Energy brand will be additive to its portfolio, attracting incremental consumers who prefer classic energy drink flavours and formats. The brand will continue to distribute Rockstar Energy in US and Canada for the company.
John Fieldly, chairman and CEO of Celsius Holdings, said, “Stepping into the role of PepsiCo’s strategic energy drink captain in US is expected to be a pivotal milestone in our journey to shape the future of modern energy and grow our brands within a leading beverage distribution system. With a proven functional beverage portfolio and a stronger long-term partnership with PepsiCo, we believe that Celsius Holdings is well-positioned to deliver greater innovation, sharper execution and sustained brand growth. Together, we will reach more people, in more places, more often, with a total energy portfolio that offers options for every consumer and creates greater value for all our stakeholders.”
Ram Krishnan, CEO, PepsiCo Beverages US, said, “This agreement marks the next step in PepsiCo reshaping its brand portfolio to position us for long-term growth. Energy is an important growth category, and we believe this move with our partner Celsius creates a stronger multi-brand energy portfolio that is better positioned to serve different consumer cohorts. This transaction creates an aligned incentive structure for both parties to bring their individual expertise to better compete in the energy category.”
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