New-Product Launches and Alani Expansion to Boost Sales, but Celsius Still Lacking a Moat

Celsius has amassed impressive volume share gains in the North American functional and reduced sugar energy drink category in recent years, totaling $1.3 billion in sales in 2024 from just $75 million in 2019. Propelling the momentum, we think that Celsius’ better-for-you portfolio and active-lifestyle branding caters to consumers' penchant for more-healthful alternatives, while a 2022 distribution agreement with wide-moat PepsiCo has bolstered its channel reach and ability to secure shelf space. Its acquisition of Alani Nu, a women-focused energy drink and health brand, expands its better-for-you platform. That said, we remain skeptical that Celsius benefits from any durable competitive advantage based on brand intangibles or cost advantages, given intense competition from resource-rich incumbents with strong brands, such as Monster and Red Bull, and smaller entrants’ propensity to deliver innovation.