Celsius (CELH) Barclays 19th Annual Global Consumer Conference summary

Portfolio integration and strategy

• Integration of three distinct brands—Alani, Celsius, and Rockstar—has been completed, enabling a portfolio approach with targeted commercial plans for each brand and leveraging PepsiCo's distribution network.

• Category captaincy with Pepsi allows prioritization and maximization of retail opportunities, including expanded shelf space and secondary placements.

• Execution is improving through closer collaboration with Pepsi, investment in merchandisers and territory managers, and suggested orders to enhance retail presence.

• The portfolio approach is expected to unlock significant value, with full benefits anticipated in 2027 as innovation and commercial plans are rolled out.

Brand performance and innovation

• Celsius underwent deep SKU rationalization, resulting in a more stable core but temporary sales weakness; recovery is expected as innovation and new sub-lines launch in 2027.

• Alani continues strong growth, expanding its core SKUs and leveraging LTOs to test and validate new flavors, with further expansion planned in food service and college channels.

• Rockstar is being repositioned with a refreshed look and focus on music and action sports, aiming to rebuild awareness and scale successful regional strategies nationwide.

• Innovation processes are being refined to avoid long tails of low-performing SKUs, focusing on building from a strong base and introducing permanent innovation.

Revenue growth management and margin improvement

• Revenue growth management (RGM) is a major focus, with strategies including price pack architecture, promotional effectiveness, and margin optimization across the portfolio.

• Plans include differentiated pricing for each brand, channel-specific pack strategies, and staggered promotions to avoid internal competition.

• Margin improvement efforts target supply chain optimization, freight and COGS efficiencies, direct sourcing, and vertical integration, with a second production line coming online.

• Commodity costs (aluminum, fuel) remain a challenge, but ongoing integration and RGM initiatives are expected to support margin recovery to low 50%s over the next two years.