CAGNY: Celsius Looks to Continue to Redefine Energy Drinks Category
Celsius Holdings Inc., owners of the Celsius brand of energy drinks, presented for the first time at the Consumer Analyst Group of New York (CAGNY) on Friday, Feb. 21, and peppered its strong growth story around analysis of its acquisition of Alani Nutrition and the Alani Nu brand, announced the day prior.
Celsius chairman, president and CEO John Fieldly opened by telling the audience that the brand has been around for about 20 years, but people would know it now based on its rocket-shot story of the past five years. Celsius is now the No. 3 energy drink brand in the U.S., he said, with $1.3 billion in revenue in 2024 on $2.7 billion retail sales in the U.S.
Fieldly said the company is especially proud to have broken into the top 10 liquid refreshment brands (LRB) list in the U.S. for the first time. Its growth curve has been exponential to reach this point, going from only $140 million in sales and a ranking of 90th on the LRB list in 2020 to the aforementioned 9th place and $2.7 billion in sales in 2024.
Celsius has risen as the makeup of the average U.S. energy drink consumer has evolved, he said. No longer is that consumer typically male or automatically outdoorsy or a gym-rat. “Things have changed,” Fieldly said, with more women and everyday consumers, and more people who are simply looking for health-conscious choices. Energy drinks are no longer an impulse buy; they are part of a daily lifestyle and part of a pantry purchase for numerous shoppers. They are mainstream.
Furthermore, Celsius has watched — and benefitted from — sugary energy drinks lose their stranglehold on consumers. Sugar-free energy drinks outpaced sugary energy drinks in 2024 for the first time, and Celsius owned 20-25% of the sugar-free energy drink share in both 2023 and 2024, Fieldly said.
Opportunities for Celsius revolve around More People, More Places, More Often, and both Fieldly and Kyle Watson, chief marketing officer, detailed the go-to-market strategies to make Celsius grow further in 2025 and beyond.
There’s opportunity for Celsius to grow consumption by Hispanic consumers and to convert other brand’s drinkers to its products. It is rolling out a new “healthy halo” campaign this year to try and work that magic.
Celsius plans to leverage its distribution partnership with PepsiCo ever further this year, with a primary crosshairs planted on expanding into bigger and better foodservice opportunities. Fieldly talked about the company’s success in expanding into Subway restaurants and Home Depot stores as great examples of where they’re headed.
Both Watson and Fieldly said Celsius has a sharp eye focused on the “sober-curious” consumers, particularly those younger consumers who are simply not drinking alcoholic beverages but still want to enjoy some of the flavors and fun via mocktails.
Watson called the energy drink category cluttered, saying focus and devotion to the brand is critical for the company to continue to drive brand loyalty among consumers, particularly the younger crowd. Millennials and Gen Z consumers are buying more energy drinks than ever before, and Celsius is working to be there for the Gen Z consumers who are just entering the marketplace as collegians who are looking for these types of products to help them with a boost of energy.
The Celsius University program sets up student ambassadors for the brand across the country and has been a good boost, and the PepsiCo partnership has also helped open doors for Celsius.
The acquisition of Alani Nu is particularly exciting for the company, as it brings on board a well-matched brand of energy and wellness products that have typically been targeted to a female audience and fit well in Celsius’ overall portfolio. The company did $595 million in net sales in 2024, Fieldly said. Combined, Celsius and Alani Nu is expected to hit about $2 billion in sales and hold 16% of category share.
