Celsius (CELH) Evercore ISI Consumer and Retail Conference 2024 summary

Market trends and category performance

• Energy drink sector in the U.S. has slowed, surprising investors who expected continued growth.

• Multiple factors cited for slowdown: weather, delayed shelf resets, and consumer spending pressures.

• Despite the slowdown, some brands are still growing and gaining market share, especially in key segments.

• Summer is anticipated as a potential rebound period for the category.

Shelf resets and distribution

• Shelf resets in grocery and convenience channels were delayed, mainly due to labor shortages.

• Most resets are now nearly complete, positioning brands well for the summer season.

• New product lines, such as Essentials, have gained additional shelf space and better placements.

• Midyear resets and cut-ins are expected to provide further growth opportunities.

Product portfolio and innovation

• Portfolio strategy targets a broad consumer base with differentiated lines: core (fruit-forward), Vibe (experiential), Fizz-Free, and Essentials (16-ounce, performance-focused).

• Fizz-Free line aims to attract consumers who dislike carbonation, potentially sourcing from coffee drinkers.

• Essentials line is incremental, targeting 18-24 year-old males, and shows early signs of success without significant cannibalization.

• Focus remains on better-for-you, zero sugar, and strong flavor profiles.