Celsius (CELH) Barclays 17th Annual Global Consumer Staples Conference summary

Strategic positioning and growth drivers

• Holds the number three position in the $28 billion energy drink category, leveraging trends in health, function, and fitness.

• Clinically proven functional energy drink, supported by six peer-reviewed studies, and positioned for health-conscious consumers.

• Achieved a 10% market share and is growing ten times faster than the category average.

• National distribution partnership with Pepsi and international expansion with Suntory, recently launching in the UK and Ireland.

• Focused on expanding sales, marketing, and key accounts teams to support growth.

Market performance and category trends

• Despite macroeconomic headwinds, maintains 10% year-over-year growth, outpacing the category.

• Gained 45% more shelf space in convenience, a key channel for future growth.

• Category slowdown attributed to reduced consumer frequency, not switching to other categories.

• Sugar-free segment now represents 50% of category sales, with strong positioning in this area.

• Ongoing positive meetings with retailers for 2025, emphasizing incrementality and higher basket size.

Distribution and inventory management

• Pepsi inventory optimization led to a $100-$120 million reduction in Q3 orders, impacting recognized revenue.

• Revenue is recognized upon delivery to Pepsi, not retail sell-through, causing a disconnect with scan data.

• Depletions from Pepsi warehouses align with retail sales data, indicating strong consumer demand.

• Implemented incentive programs with Pepsi to align priorities and drive additional inventory and display at retail.

• Focus remains on driving share, revenue, and distribution expansion despite inventory headwinds.