PepsiCo is doubling down on the booming energy drink market, boosting its stake in Celsius Holdings with a $585 million investment announced Friday.
The deal gives PepsiCo about 11% ownership in Celsius after conversion, thanks to the purchase of 5% of the company’s preferred stock. Back in 2022, the soda giant put down $550 million for an 8.5% stake.
Celsius has been on fire this year, with shares more than doubling in value. News of PepsiCo’s latest buy sent the stock soaring another 11% in premarket trading.
The agreement also extends beyond Celsius itself. PepsiCo will now distribute Alani Nu, the popular health and wellness drinks brand owned by Celsius, across the U.S. and Canada.
Alani Nu has exploded in popularity, particularly among fitness-minded women, giving PepsiCo another fast-growing brand in its distribution arsenal.
Celsius scooped up Alani Nutrition earlier this year in a $1.8 billion deal, solidifying its push into lifestyle and wellness beverages.
By increasing its stake and adding Alani Nu to its system, PepsiCo is betting big on energy and wellness drinks as younger consumers move away from traditional sodas.
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Author: Mike Vance
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