PepsiCo expands Celsius stake to about 11% with $585 million deal; Alani Nu to join PepsiCo distribution
PepsiCo has increased its stake in Celsius Holdings by $585 million, acquiring 5% of Celsius’ preferred stock and lifting its stake to about 11% after conversion, the companies said on Friday. This follows PepsiCo’s 2022 purchase of an 8.5% stake for $550 million.
Under the agreement, Celsius’ Alani Nu health and wellness drinks brand will be moved into PepsiCo’s distribution system in the United States and Canada, extending its reach through PepsiCo’s established routes to market. The move comes as PepsiCo looks to capitalize on Alani Nu’s rapid growth and broad appeal among fitness-focused female consumers. Celsius had already acquired Alani Nutrition in a $1.8 billion deal earlier this year.
Market reaction to the news reflected investor optimism: Celsius shares have more than doubled this year and rose about 11% in premarket trading on the announcement.
Context and potential impact:
– The alignment could accelerate Alani Nu’s distribution reach across major retailers and channels, leveraging PepsiCo’s scale.
– The deal reinforces Celsius’ strategy to diversify its brand portfolio through strategic acquisitions and partnerships, while aligning with PepsiCo’s wellness beverage efforts.
– The collaboration may enable cross-brand promotions and broader shelf space, benefiting both Celsius and Alani Nu as wellness and fitness-oriented products gain traction with consumers.
Observations from recent distribution patterns suggest Celsius products are already widely available in mainstream outlets, with sightings such as Celsius energy drinks in San Francisco stores on March 17, 2025, illustrating ongoing broad market penetration.
What to watch:
– How quickly Alani Nu products are integrated into PepsiCo’s distribution network and how retailers respond with promotional opportunities.
– The potential impact on Celsius’ growth trajectory and stock performance as the partnership scales.
– Competitive responses from other beverage companies pursuing wellness and fitness-focused brands.
Note: This deal reflects a strategic move to broaden distribution breadth and capitalize on the growing demand for wellness-oriented beverages, particularly among active and health-conscious consumers. A hopeful takeaway is that the collaboration could expand consumer access to innovative wellness drinks while driving sustained growth for both brands.