{"id":28975,"date":"2024-08-21T23:56:00","date_gmt":"2024-08-21T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=28975"},"modified":"2025-03-25T09:55:44","modified_gmt":"2025-03-25T01:55:44","slug":"celsius-energy-drink","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/","title":{"rendered":"Celsius, upstart of energy drink company"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Company_Profile\" >Company Profile<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Founded\" >Founded<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Ingredients\" >Ingredients<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Product_selling_point\" >Product selling point<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#IPO\" >IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Global_expansion\" >Global expansion<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Relationship_with_PepsiCo\" >Relationship with PepsiCo<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Pepsis_market_position\" >Pepsi&#8217;s market position<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#PepsiCo_invests_in_Celsius\" >PepsiCo invests in Celsius<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Pepsi_becomes_a_major_distribution_channel\" >Pepsi becomes a major distribution channel<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Other_business_partners\" >Other business partners<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Amazoncom\" >Amazon.com<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Santory\" >Santory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Ferrari\" >Ferrari<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Competitors\" >Competitors<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Market_share_of_major_energy_drink_vendors\" >Market share of major energy drink vendors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Main_rivals\" >Main rivals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Market_differentiation\" >Market differentiation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Targeting_consumers_group\" >Targeting consumers group<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Capital_market_performance\" >Capital market performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Share_price_performance\" >Share price performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Market_valuation\" >Market valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Stock_split\" >Stock split<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Celsius_strength_and_weakness\" >Celsius strength and weakness<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Strength\" >Strength<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Weakness\" >Weakness<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Operational_performance\" >Operational performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Risks\" >Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#2024_second_quarter_result\" >2024 second quarter result<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Highlights\" >Highlights<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Q2_result_summary\" >Q2 result summary<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Challenges\" >Challenges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Revenue_no_longer_grows_significantly\" >Revenue no longer grows significantly<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_Profile\"><\/span>Company Profile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founded\"><\/span>Founded<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/Celsius_Holdings\" target=\"_blank\" rel=\"noreferrer noopener\">Celsius (ticker: CELH) <\/a>is an energy drink company founded in 2004 by Steve Haley.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ingredients\"><\/span>Ingredients<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius Energy Drink contains green tea extract, which boosts mood and energy through its caffeine content, and epigallocatechin gallate (EGCG), an antioxidant. Guarana seed extract is used to further increase caffeine content. Ginger root is used both as a flavoring agent and as an anti-inflammatory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Product_selling_point\"><\/span>Product selling point<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius specializes in functional beverages to help customers achieve goals such as weight loss and energy replenishment. Celsius says its proprietary, clinically proven energy drink offers significant health benefits, including speeding metabolism and burning fat during exercise.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IPO\"><\/span>IPO<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius (ticker: CELH) went public in 2017.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Global_expansion\"><\/span>Global expansion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius has established a global footprint, selling products in 10 countries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relationship_with_PepsiCo\"><\/span>Relationship with PepsiCo<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pepsis_market_position\"><\/span>Pepsi&#8217;s market position<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>PepsiCo is not only one of the most recognized brands on the planet, but also the largest distributor of beverages, so PepsiCo&#8217;s investment in Celsius is a huge win for Celsius and opens the door to unlimited growth opportunities in the U.S. and overseas.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PepsiCo_invests_in_Celsius\"><\/span>PepsiCo invests in Celsius<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>PepsiCo (ticker: PEP) invested $550 million in Celsius to fuel the company&#8217;s growth with retailers and independent stores. This watch owns an 8.5% minority stake in Celsius.<\/p>\n\n\n\n<p>The relationship between PepsiCo and Celsius is actually very similar to the relationship between Monster Beverage (ticker: MNST) and Coca-Cola (ticker: KO).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pepsi_becomes_a_major_distribution_channel\"><\/span>Pepsi becomes a major distribution channel<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In January 2024, Celsius expanded its partnership with PepsiCo, expanding its global sales and distribution footprint to Canadian consumers. Building on a distribution agreement that begins in the United States in 2022, PepsiCo is now the exclusive distributor of Celeste in Canada, where the product will be available starting in January 2024.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_business_partners\"><\/span>Other business partners<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amazoncom\"><\/span>Amazon.com<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius is now available on the Amazon e-commerce platform. During Q2, 2024, company&#8217;s sales to Amazon increased 41% to approximately $39.9 million.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Santory\"><\/span>Santory<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius has also selected Suntory Beverage &amp; Food UK &amp; Ireland as its exclusive sales and distribution partner in the UK, Northern Ireland, Channel Islands, Isle of Man and the Republic of Ireland. Sales in these regions will begin in 2024.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ferrari\"><\/span>Ferrari<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Earlier this month, Celsius formed a global energy drink partnership with Ferrari (ticker: RACE). Celsius aims to energize Scuderia Ferrari drivers, staff and fans both on and off the track through its beverages.<\/p>\n\n\n\n<p>As Scuderia Ferrari\u2019s Global Partner for the 2024 season and beyond, Celsius is committed to energizing Ferrari drivers and team members during the intense 24-race Grand Prix season. Celsius also hopes Ferrari fans will be able to drink its energy drink on and off the track.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Competitors\"><\/span>Competitors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_share_of_major_energy_drink_vendors\"><\/span>Market share of major energy drink vendors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The following is a ranking of the market share of major energy drink manufacturers in the second quarter of 2024, provided by Celsius.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"464\" height=\"356\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/08\/CELH-vs-Competitors-Market-Share-Q2-2024.jpg\" alt=\"Market share of major energy drink vendors\" class=\"wp-image-29283\" srcset=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/08\/CELH-vs-Competitors-Market-Share-Q2-2024.jpg 464w, https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/08\/CELH-vs-Competitors-Market-Share-Q2-2024-300x230.jpg 300w\" sizes=\"auto, (max-width: 464px) 85vw, 464px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Main_rivals\"><\/span>Main rivals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Including Monster Drink (ticker: MNST), Red Bull, Rockstar, C4, Keurig Dr Pepper (: KDP) and other well-known energy drinks. Regarding Monster Beverage, please see my post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/11\/monster-beverages-monster-level-stock-returns\/\">Monster Beverage&#8217;s monster level stock returns<\/a>&#8220;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_differentiation\"><\/span>Market differentiation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>What sets Celsius apart from similar companies like Monster Beverage or Red Bull is that it avoids the use of artificial flavors, artificial preservatives or high-fructose corn syrup. This differentiation strategy developed by Celsius seems to be popular with consumers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Targeting_consumers_group\"><\/span>Targeting consumers group<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius&#8217;s consumer base is very different from Red Bull and Monster Drinks (or Devil&#8217;s Claw in Chinese). The average age of Celsius consumers is younger and more female, considering the brand image and flavor profile.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_market_performance\"><\/span>Capital market performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Share_price_performance\"><\/span>Share price performance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of August 2, 2024, Celsius&#8217;s stock price has increased by 2504.27% in the past five years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_valuation\"><\/span>Market valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of August 2, 2024, Celsius&#8217;s current market value is US$10.41 billion, with a price-to-earnings ratio of 47.06 times.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_split\"><\/span>Stock split<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On December 15, 2023, Celsius completed a 3-for-1 stock split, sending its stock price down from around $150 to over $50.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Celsius_strength_and_weakness\"><\/span>Celsius strength and weakness<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strength\"><\/span>Strength <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius is a healthy energy drink company that has experienced rapid growth and taken market share from larger companies like Monster and Red Bull. Celsius has the potential for further growth, particularly with its international expansion and potential new product launches.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weakness\"><\/span>Weakness<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius is competing for shelf space and trying to expand distribution through small regional operators, but mostly using DTR (direct to retailer), meaning they ship products to stores (either directly or through a retailer&#8217;s distribution center) , and then rely on asking employees to put it on the shelves. Many young companies need to start with DTR, but this is not ideal, especially for beverage companies that want to enter cold storage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Operational_performance\"><\/span>Operational performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risks\"><\/span>Risks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For beverage brands, the ability of distribution channels to spread goods is the most important factor that determines whether the company can grow in the future. At present, Celsius relies on the existing channels of Pepsi and Suntory. For a beverage brand like Celsius that is new to the market and not well-known, this is actually a last resort strategy.<\/p>\n\n\n\n<p>This move by Celsius actually has mixed benefits and disadvantages. If successful, Celsius can use it to expand its market and sales. On the contrary, once there is a problem with Pepsi and Suntory&#8217;s existing channels, there will be nothing they can do.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2024_second_quarter_result\"><\/span>2024 second quarter result<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highlights\"><\/span>Highlights<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company&#8217;s sales to Amazon grew 41% to about $39.9 million<\/li>\n\n\n\n<li>Reduction in days of existing inventory at large distributors<\/li>\n\n\n\n<li>Shares soar after international sales, Amazon channel helps drive revenue<\/li>\n\n\n\n<li>Sales are expected to begin in Australia, France and New Zealand in the second half of 2024<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q2_result_summary\"><\/span>Q2 result summary<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>GAAP EPS of $0.28 beat expectations by $0.05<\/li>\n\n\n\n<li>Revenue was US$402 million (annual growth 23.4%), exceeding US$9.26 million: North America grew 36.5% annually, and international sales were US$19.6 million, growing 30% annually.<\/li>\n\n\n\n<li>Club channel sales, annual growth to 80 million US dollars<\/li>\n\n\n\n<li>Gross profit grew to $209.1 million annually<\/li>\n\n\n\n<li>Gross profit margin increased from 48.8% to 52.0%<\/li>\n\n\n\n<li>Adjusted EBITDA grew 29% annually to $100.4 million<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Challenges\"><\/span>Challenges<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Celsius&#8217;s Q1 2024 revenue suffered a rare decline, mainly due to the impact of inventory adjustments at distribution partner PepsiCo, which purchases 62% of its products.<\/p>\n\n\n\n<p>Because of this reason, after the release of the first quarter financial report of 2024, it fell all the way. As of August 2, 2024, the stock price has fallen by 57.13% from the historical high.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Revenue_no_longer_grows_significantly\"><\/span>Revenue no longer grows significantly<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The following chart of Celsius revenue growth trends over the past thirteen statistical periods provided by Celsius shows that the growth of Celsius revenue is clearly no longer experiencing explosive growth.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"476\" height=\"313\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/08\/CELH-Revenue-Q2-2023-Q2-2024.jpg\" alt=\"Revenue no longer grows significantly\" class=\"wp-image-29288\" srcset=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/08\/CELH-Revenue-Q2-2023-Q2-2024.jpg 476w, https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/08\/CELH-Revenue-Q2-2023-Q2-2024-300x197.jpg 300w\" sizes=\"auto, (max-width: 476px) 85vw, 476px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"178\" height=\"100\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/08\/celh-Custom.jpg\" alt=\"Celsius\" class=\"wp-image-28976\"\/><figcaption class=\"wp-element-caption\">credit: Ideogram<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/20\/constellation-brands\/\">How Buffett&#8217;s new stake in Constellation Brands make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/11\/monster-beverages-monster-level-stock-returns\/\">Monster Beverage&#8217;s monster level stock returns<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/24\/darden-restaurants\/\">How recession resilient Darden Restaurants make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/21\/celsius-energy-drink\/\" target=\"_blank\" rel=\"noreferrer noopener\">Celsius, upstart of energy drink company<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/15\/wingstops-astonishing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Wingstop&#8217;s astonishing growth is unprecedented in the restaurant industry<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/26\/how-mcdonalds-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does McDonald&#8217;s, the world&#8217;s largest fast food leader, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/02\/coca-cola-has-been-inferior-to-pepsi-in-and-even-return-rate-is-negative-in-past-10-years\/\" target=\"_blank\" rel=\"noreferrer noopener\">Coca-Cola has been inferior to Pepsi in and even return rate is negative in past 10 years!<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/22\/pros-and-cons-of-coca-cola\/\" target=\"_blank\" rel=\"noreferrer noopener\">Pros and cons of investing in Coca-Cola<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/12\/how-does-dominos-make-money\/\">How does Domino&#8217;s make money? its stock reward beat down Alphabet<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/09\/22\/how-yum-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does ubiquitous Yum! Brands make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/11\/starbucks-predicament\/\">How does Starbucks make money? and the current predicament<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/16\/civilian-production\/\" target=\"_blank\" rel=\"noreferrer noopener\">Discover the possibility of super growth stocks in the civilian production industry<\/a>&#8221; <\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What sets Celsius apart from similar companies like Monster Beverage or Red Bull is that it avoids the use of artificial flavors, artificial preservatives or high-fructose corn syrup. This differentiation strategy developed by Celsius seems to be popular with consumers.<\/p>\n","protected":false},"author":1,"featured_media":28976,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[985],"tags":[227,1312,983,139,982,356,1313],"class_list":["post-28975","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-beverage","tag-amzn","tag-celh","tag-kdp","tag-ko","tag-mnst","tag-pep","tag-race"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=28975"}],"version-history":[{"count":24,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28975\/revisions"}],"predecessor-version":[{"id":35617,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28975\/revisions\/35617"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/28976"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=28975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=28975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=28975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}