PepsiCo Inc. has poured another $585 million into Celsius Holdings Inc., scooping up newly issued 5% convertible preferred stock in a move that could redefine the U.S. and Canadian energy drink battlefield. The deal, steered by heavyweight law firms on both sides, raises PepsiCo’s ownership stake in Celsius to roughly 11% on an as-converted basis, giving the beverage titan even deeper control in the high-growth category.
The latest cash infusion is more than just an investment — it’s a chess move. With energy drink demand skyrocketing, PepsiCo is tightening its grip on a multibillion-dollar market where branding battles are as fierce as the beverages are caffeinated.
Rockstar, Celsius, and Alani Nu Enter the Arena
As part of the agreement, Celsius snagged U.S. and Canadian rights to Rockstar Energy, while PepsiCo will keep Rockstar’s international operations. The tradeoff gives Celsius a classic heavyweight brand alongside its fast-rising flagship.
Meanwhile, PepsiCo will weave Alani Nu, a female-focused fitness and lifestyle brand, into its North American distribution powerhouse. Alani Nu’s health-driven image complements PepsiCo’s modern energy push, offering new appeal for a growing demographic of wellness-minded consumers.
“This agreement marks the next step in PepsiCo reshaping its brand portfolio to position us for long-term growth,” said Ram Krishnan, CEO of PepsiCo Beverages North America. “Energy is an important growth category, and this move with Celsius creates a stronger multibrand portfolio to serve diverse consumer cohorts.”
