The energy drink market has been experiencing a global spike in demand. This trend has been amplified by health-conscious consumers seeking sugar-free energy drink options. Celsius, a beverage company that makes metabolism-boosting energy drinks in a variety of flavors, has been a favorite among the fitness crowd.
Its growth story is gaining the attention of other companies, including PepsiCo which recently made a significant investment. In August 2025, PepsiCo invested $585 million into Celsius through the purchase of newly issued shares of Celsius preferred stock. Following the investment, PepsiCo held an approximately 11% ownership stake in Celsius.
Pursuant to the securities purchase agreement that Celsius entered into with PepsiCo, Celsius sold 390,000 shares of its newly issued Series B Convertible Preferred Stock to PepsiCo. The preferred stock will pay regular dividends at a 5% annual rate. In addition, holders of the Series B preferred stock will be entitled to receive any dividends paid to common stock holders. The preferred stock has an initial conversion rate of 28.99 shares of common stock per share of preferred stock, subject to adjustment upon the occurrence of certain events.
Celsius had previously issued shares of Series A Convertible Preferred Stock to PepsiCo in 2022. Certain terms of the Series A preferred stock were aligned with the recently issued Series B preferred stock, including the conversion and redemption dates. In connection with thesepreferred stock issuances, PepsiCo was granted the right to nominate two candidates to the board of directors of Celsius.
The fitness-focused beverage maker was founded in 2004. Based in Boca Raton, Florida, Celsius Holdings is a publicly traded company on Nasdaq. It is incorporated in the state of Nevada. Celsius is currently run by CEO John Fieldly, who has served as CEO since 2018. The company’s product portfolio includes energy drinks, energy powder sticks, and nutritional supplements. In 2025, Celsius reported approximately $2.5 billion of revenue.
Celsius recently made two strategic acquisitions. In April 2025, Celsius acquired Alani Nu, a nutritional supplements company, for $1.8 billion. Alani Nu operates as part of the PepsiCo distribution system in the United States and Canada. A few months later, in August 2025, Celsius purchased Rockstar Energy Drink brand in the United States and Canada from PepsiCo, with PepsiCo continuing to retain the Rockstar Energy Drink brand internationally.
Celsius maintains extensive commercial arrangements with PepsiCo. PepsiCo is the main distributor of its products in the U.S. and Canada. Internationally, Celsius has exclusive distribution arrangements with the Suntory Group, a Japanese multinational beverage company.
The global energy drink sector has been consistently growing. Celsius faces competition from products offerings from companies such as Red Bull, Monster Beverage, Coca-Cola, PepsiCo, Keurig Dr. Pepper, Congo Brands, and Nestle. Celsius hopes that market demand for energy drinks will continue to expand and that its products will become part of consumers daily routines. Some have drawn comparisons to coffee drinking habits, predicting that fitness-inspired energy drinks have the potential to become the “new coffee.”
