USA – Celsius Holdings, a US-based energy drink manufacturer, has acquired its long-time contract manufacturer, Big Beverages, in a US$75 million deal to enhance its production capabilities and streamline operations.
The acquisition, finalized on November 1, 2024, provides Celsius with a state-of-the-art, 170,000-square-foot beverage manufacturing facility in Charlotte, North Carolina, specializing in canned drinks.
The purchase will allow Celsius to vertically integrate its production, gaining greater control over its supply chain, expediting innovation cycles, and increasing flexibility in production.
This acquisition is expected to boost Celsius’ capacity to deliver a diverse range of products, including limited-time offers, as well as enhance research and development opportunities.
The facility, which will remain focused primarily on Celsius products, comes with a dedicated team of management and employees from Big Beverages who are expected to retain their roles under the terms of the acquisition.
Commenting on the deal, Celsius CEO and Chairman John Fieldly said, “We believe that this acquisition gives Celsius fantastic leverage to accelerate our product innovation and production capabilities so we can continue growing the energy drink category with our great-tasting, functional, and better-for-you performance energy drinks.”
He praised the expertise of Big Beverages’ workforce, expressing confidence that their combined efforts would drive further consumer engagement with the Celsius brand.
The acquisition occurs during a period of growth and international expansion for Celsius, even as the US consumer base weakens and the energy drink market slows down.
Earlier in April, Celsius partnered with Suntory Beverage & Food to bring its products to France, with a broad launch planned for 2025 following targeted actions toward the end of 2024.
In the first half of 2024, Celsius reported robust financial results, with a 29 percent increase in revenue to US$757.7 million, up from US$585.8 million during the same period the previous year.
Gross profit surged by 43 percent, reaching US$391.3 million, compared to US$272.8 million in 2023.
The second quarter alone recorded US$402.0 million in revenue, a 23 percent rise and the highest second-quarter earnings in the company’s history.
International sales also recorded an increase, climbing 30 percent to US$19.6 million due to growing brand awareness and improvements in sales velocity.
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