UK – Celsius Holdings, Inc., the maker of the popular energy drink brand Celsius, has announced its strategic expansion into new international markets, reinforcing the company’s global reach by bringing its energy products to consumers in Canada, the United Kingdom, and Ireland.
The U.S.-based energy-drink manufacturer has secured a distribution deal with Suntory Beverage & Food (SBF) to facilitate its entry into the UK and Ireland.
Under the exclusive agreement, SBF will serve as Celsius’ dedicated sales and distribution partner for these territories, marking a pivotal move for the brand’s global growth strategy.
John Fieldly, Chairman and CEO of Celsius Holdings said, “We’re pleased to grow Celsius in new markets and provide energy to more consumers in moments big and small to help them achieve their goals.”
Fieldly emphasized the company’s methodical approach to international growth, leveraging support from top-notch distribution partners in each new market.
PepsiCo’s minority stake in Celsius has played a significant role in the company’s international expansion.
Celsius entered the Canadian market earlier this year, marking a notable international launch since PepsiCo’s 8.5% stake investment in 2022.
The collaboration has seen PepsiCo taking on U.S. distribution of Celsius’ products, with 80% of Celsius’ distributors replaced by PepsiCo, according to Celsius CFO Jarrod Langhans.
Suntory Beverage & Food sees the partnership as an opportunity for mutual growth. Carol Robert, Chief Operating Officer of Suntory Beverage & Food GB&I, said, “With huge business growth over the past three years, and the continued strong performance of our brands, we are brilliantly placed to launch and grow CELSIUS.
We are always exploring new ways to evolve our portfolio and offer even more choice of great tasting drinks to consumers.”
Celsius Holdings reported impressive financial results for the third quarter of 2023, with record sales of US$384.8 million, up 104% from the same quarter in 2022.
The surge in revenue was primarily attributed to North America, where sales increased by 107% to US$371 million. The company posted a net income of US$83.9 million, a notable turnaround from the loss of US$181.9 million in the third quarter of the previous year.
Celsius credited its robust performance to various factors, including reductions in packaging and raw-material costs, decreased product waste, improved freight lane efficiency, and enhanced leverage across promotional allowances.
Adjusted EBITDA for the quarter reached US$103.6 million, reflecting a remarkable 318% increase from the same period in 2022.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE
