Dive Brief:
- Celsius Holdings said in a statement it started selling its energy drinks in Canada where partner PepsiCo is serving as the exclusive distributor,
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The Florida company said it also reached a deal to start selling its beverage in the U.K. and Ireland later this year. Celsius named Suntory Beverage & Food Great Britain and Ireland as its exclusive sales and distribution partner.
- Celsius has quickly become a force in the energy drink space in the U.S. due to its use of functional ingredients. Celsius now controls about 10% of the energy drink market, according to Nielsen data referenced by Seeking Alpha, compared to 0.2% in 2019.
Dive Insight:
While international markets were responsible for just under 4% of its $385 million in sales during its most recent quarter, the category has been identified as a major growth channel for the fast-growing energy drinks company. Celsius’ move to Canada is aided by PepsiCo, which has been instrumental in helping the company expand distribution in the U.S. PepsiCo invested $550 million for an 8.5% stake in Celsius and struck a distribution deal in 2022.
“There are significant opportunities for incremental growth over the next three years to five years as we execute our international expansion blueprint in a handful of countries in 2024, with opportunities for further expansion in ’25, ’26, and beyond,” John Fieldly, CEO of Celsius, told analysts last November.
Jarrod Langhans, the Florida company’s CFO, said at the time that Germany, Japan and Australia were among the “big opportunities” for Celsius on the international front. He added that working with Pepsi partners would be its “priority” when entering other countries. As Celsius looks to grow internationally, having PepsiCo’s reach and connections will be invaluable with Monster, Red Bull and other competitors already having meaningful presence outside the U.S.
