Celsius (CELH) Piper Sandler 4th Annual Growth Frontiers Conference summary

Expanded partnership and portfolio strategy

• Announced a $585 million multifaceted deal with Pepsi, granting energy category leadership and expanded distribution rights.

• Gained control over planograms in Pepsi's network, allowing prioritization of high-velocity SKUs for Celsius, Alani Nu, and Rockstar.

• Alani Nu to enter Pepsi's distribution system, targeting significant growth in convenience and food service channels.

• Pepsi receives an additional board seat, further aligning strategic interests.

• Rockstar's integration focuses on stabilizing performance and rationalizing SKUs before pursuing growth.

Brand performance and distribution outlook

• Alani Nu is positioned for major expansion in convenience stores, leveraging Pepsi's reach to over 100,000 independents.

• Food service and college channels present untapped opportunities, especially for Alani Nu's core demographic.

• Portfolio approach enables tailored SKU allocation by region, maximizing market share and promotional flexibility.

• Combined brands now approach a 20%+ market share, closing the gap with Monster and Red Bull.

• SKU rationalization and focus on top performers expected to drive higher velocity and shelf presence.

Execution timeline and innovation

• Alani Nu transitions to Pepsi distribution on December 1, with full planogram resets expected in Q1–Q2.

• Large in-store displays and food service rollouts for Alani Nu to begin in early 2025.

• Rockstar's immediate goal is stabilization, with SKU consolidation and a $250 million revenue run rate post-rationalization.

• Innovation remains a priority, with limited-time offerings and new product formats planned across all brands.

• Alani Nu's protein shakes and other extensions may be leveraged if opportunities arise.