PepsiCo Partnership Puts Celsius Holdings on Faster Growth Track

Celsius Holdings, Inc. CELH has fortified its growth prospects through a strengthened partnership with PepsiCo PEP, positioning itself as a vital player in the energy drink market. Under the new agreement, Celsius Holdings becomes PepsiCo’s strategic energy lead in the United States, managing Celsius, Alani Nu and Rockstar Energy, while PepsiCo will handle the distribution of Celsius Holdings’ products across the United States and Canada.

The arrangement significantly expands Celsius’ reach by placing Alani Nu into PepsiCo’s powerful distribution system, broadening exposure to foodservice and new channels. At the same time, Celsius acquires the Rockstar Energy brand in the United States and Canada, giving the company a foothold in classic energy drink formats and widening its appeal across diverse consumer segments. The deal strengthens financial ties as well, with PepsiCo boosting its stake in Celsius Holdings to about 11%. 

The partnership aligns both companies’ incentives and supports a unified commercial strategy aimed at scaling the energy category more effectively. Management at Celsius Holdings described the move as a milestone that allows the company to deliver sharper execution, greater innovation and broader brand growth. Positioned as PepsiCo’s energy captain, Celsius gains both influence and scale, advancing its ambition to shape the future of modern energy while capturing greater long-term value in a rapidly expanding category.

How Competitors Approach Distribution Partnerships for Growth

Monster Beverage Corporation MNST has long benefited from its global distribution deal with Coca-Cola bottlers, which gives it access to one of the most powerful beverage systems. This partnership enables Monster Beverage to penetrate diverse retail formats — convenience stores, supermarkets and foodservice — while supporting rapid rollouts of new products across regions. By leveraging Coca-Cola’s scale, Monster Beverage has secured a durable edge in both reach and visibility, making it a formidable player in the energy category.

The Coca-Cola Company KO continues to lean on its unmatched distribution system, which spans more than 200 countries. Through close partnerships with bottlers and retailers, Coca-Cola ensures its portfolio, from sparkling soft drinks to sports and energy brands, remains deeply embedded in consumer channels. Strategic distribution initiatives — like expanding refillables in developing markets and pushing premium packs in developed ones — strengthen Coca-Cola’s ability to adapt globally.

CELH Stock’s Price Performance, Valuation & Estimates

Shares of Celsius Holdings have surged 69.4% in the past month against the industry’s decline of 14.7%.

From a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 43.49, higher than the industry’s average of 15.77.

The Zacks Consensus Estimate for CELH’s 2025 and 2026 earnings implies year-over-year growth of 54.3% and 28.6%, respectively.

Celsius Holdings currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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