Celsius (NASDAQ:CELH) executives said the company is working through a major portfolio transition as it integrates Alani and Rockstar into its platform while repositioning the core Celsius brand for renewed growth.
Speaking at an investor conference, Chairman and CEO John Fieldly described the company as a “multi-brand modern energy” platform with three distinct brands: Celsius, Alani and Rockstar. Fieldly said “one in five energy drinks” are now sold through Celsius Holdings, giving the company a broader position across the energy drink market.
Energy Category Seen as Mainstream
Fieldly said the energy drink category has moved beyond impulse purchases and has become more routine for consumers. He said zero-sugar and health-and-wellness trends are helping bring new users into the category, including more female consumers.
The company also pointed to new usage occasions. Fieldly said Celsius research found that more than 33% of energy drink consumers drink the products with meals. He also said more than 30% of consumers are drinking energy drinks instead of alcoholic products in social settings.
“Energy has gone mainstream,” Fieldly said, adding that increased frequency and expanded consumption occasions are supporting the category’s growth.
Celsius Brand Reset Expected to Progress Through Summer
Much of the discussion centered on the core Celsius brand, where growth has slowed as the company rationalizes its product lineup and integrates additional brands into PepsiCo’s distribution system.
Fieldly said the SKU rationalization reflects Celsius’ history before its PepsiCo partnership, when the brand operated through a fragmented network of more than 300 distributors. He said the company previously used unique flavors and retailer-specific products to gain shelf space, but many of those SKUs had limited distribution.
With PepsiCo, Fieldly said Celsius can now focus on national execution and a more consistent portfolio. The company is keeping higher-velocity products and expanding some previously limited items, including Cherry Cola and Sparkling Grape Rush, to broader distribution.
Fieldly said most retail resets are expected to be completed by the end of June or July, though some permanent fixtures and premium placements may take longer. He said the brand should see “some stability over the next several months” and begin moving back toward growth by the end of the year.
Fieldly acknowledged that the company was “a little bit light” on Celsius innovation this year, in part because of the complexity of integrating Alani and Rockstar. He said the company expects to return to more permanent strategic innovation for Celsius in 2027.
Alani Integration Completed Ahead of Plan
CFO Jarrod Langhans said Alani’s integration into the company’s platform was substantially completed in March, ahead of an aggressive 12-month plan. Rockstar’s integration is on a shorter timeline and is expected to be completed this month, he said.
Langhans said Alani has expanded to more than 90% ACV and that dollar velocity grew from January to April even as distribution broadened. He said that performance gives the company confidence in the brand’s durability and repeat purchase behavior.
Fieldly said Alani is unlikely to face the same level of rationalization as Celsius because it entered the PepsiCo system with a stronger national base of SKUs. He said the brand is “almost a 10 share” in the U.S. and that the company is converting some successful limited-time offerings into permanent products to build a more predictable core lineup.
“The brand is now almost a 10 share in the U.S., and that doesn’t come by just LTOs or just trying them once,” Fieldly said. “These are repeatable purchases.”
Margin Recovery Tied to Integration and Supply Chain Work
Langhans said the company still sees a path back to gross margins in the low 50% range, though commodity inflation and supply chain pressures may delay progress compared with earlier expectations.
He outlined three main drivers of margin improvement: integrating Alani and Rockstar into Celsius’ infrastructure, continuing to reduce costs through supply chain and production efficiencies, and developing revenue growth management capabilities across the broader portfolio.
Langhans said Alani is now largely integrated into Celsius’ supply chain, with some inventory effects carrying into the second quarter. Rockstar is expected to follow a similar path, with margin expansion opportunities in the third and fourth quarters.
He also said Celsius has a plant in Charlotte with one line operating and a second line expected to be running in the third quarter, with a fuller benefit in 2027. The company is also evaluating additional vertical integration and direct procurement opportunities.
Fieldly said Celsius secured more than $50 million in synergy savings from the Alani integration.
On pricing, Langhans said the company views Celsius and Alani as premium brands and does not want to become a value player. He said Celsius would be more likely to follow competitors on pricing rather than lead.
International Expansion Remains a Longer-Term Focus
Fieldly said the company continues to see opportunity for Celsius internationally, citing newer markets including France, the U.K., Germany, Australia, New Zealand, Benelux and Spain. He said many of those markets are still in early stages, with several only 18 to 24 months into development.
In Paris, Fieldly said Celsius has grown from a roughly 2 share to more than a 5 share, with ACV at about 66%. He said sugar-free energy growth in international markets is strong and represents a significant opportunity for the Celsius portfolio.
For Alani, Fieldly said the company is evaluating additional international markets for 2027 and expects to introduce the brand in a few markets. He said the company plans to take a methodical approach, focused on profitability, sequencing and building consumer loyalty rather than simply generating trial.
Looking ahead, Fieldly said the company’s key goals include expanding beyond a 20 share in the U.S., fully integrating its portfolio of energy brands, returning Celsius to growth, building Alani’s commercial plans and advancing international expansion.
About Celsius (NASDAQ:CELH)
Celsius Holdings, Inc is an American beverage company known for its line of fitness and energy drinks formulated to support active lifestyles. The company’s flagship product, the Celsius® brand, features beverages enhanced with ingredients such as green tea extract, guarana seed extract and essential vitamins, positioned as a functional alternative to traditional energy drinks. These products are designed to deliver a blend of ingredients that support metabolism and sustained energy without high sugar content or artificial preservatives.
In addition to its core carbonated drink portfolio, Celsius has expanded its offerings to include powder mixes and non-carbonated ready-to-drink variants, catering to consumer preferences around taste, convenience and nutritional needs.
