Celsius at 45th Annual William Blair Conference: Disrupting Beverage Market

On Wednesday, 04 June 2025, Celsius Holdings (NASDAQ:CELH) presented at the 45th Annual William Blair Growth Stock Conference, outlining its strategic vision to revolutionize the functional beverage category. The company emphasized its robust growth strategy, while also acknowledging challenges in integrating recent acquisitions.

Key Takeaways

• Celsius Holdings contributed over 50% of energy category growth last year.
• The company holds a 16.6% market share in the US energy drink sector.
• Alani Nu, a recent acquisition, achieved $600 million in net revenue in 2024.
• A focus on expanding distribution and frequency of consumption is central to their strategy.
• The company aims to integrate Alani Nu fully within 24 months.

Financial Results

• Celsius Holdings achieved $3.5 billion in retail sales last year.
• Combined net revenue for Celsius and Alani Nu was close to $2 billion in 2024.
• The pro forma gross profit margin stood at approximately 48% for 2024.
• Alani Nu experienced a 46% year-over-year growth in net revenue.
• Celsius achieved a 52% gross margin in Q1.

Operational Updates

• Celsius is available in over 241,000 US retail outlets, with 98.7% ACV.
• Alani Nu’s distribution is in the low 80% ACV range.
• The acquisition of Big Beverage in 2024 is expected to produce 20% of Celsius’ volume.
• A new hydration packet product was launched in 2025.

Future Outlook

• Celsius plans a 15% to 20% increase in distribution in 2024.
• The "Live Fit Go" marketing campaign aims to broaden consumer appeal.
• A new limited-time offer is scheduled for Q3 or Q4.
• Alani Nu is projected to match Celsius’ margin profile in the future.

Q&A Highlights

• The energy drink category grew by 7% in Q1, with acceleration in recent weeks.
• Celsius gained 15% to 20% more shelf space from January to May.
• The company is exploring a lower caffeine version and smaller can size.

Celsius Holdings’ strategic initiatives and financial performance position it as a formidable player in the energy drink market. For further details, please refer to the full transcript.

Full transcript - 45th Annual William Blair Growth Stock Conference:

Operator: Okay. We’ll go ahead

John Anderson, Research Analyst, William Blair: and get started. Mr. Besencheck, good to see you. Good morning. My name is John Anderson.

I’m the research analyst at William Blair that covers consumer products and Celsius. We are pleased to have Celsius’ Chief of Staff, Toby David, with us today to present. As most of you know, Celsius is a leader in the energy drink category and now has two very complementary brands in Celsius and Elani Nu, which align well with consumer trends towards better for you, fitness and functional beverages. Celsius has helped reinvent the energy drink category with its healthier ingredient set, unique flavors, and broad demographic appeal. And the recently acquired Elani Nu, which is a female focused brand with strong health and wellness credentials, expands the TAM even further and provides an opportunity to scale the business over the next several years.

So this year, we expect the company to gain additional shelf space and drive demand through enhanced marketing. I’m sure we’ll hear more about that from Toby. As such, we think this is going to be a pivotal year on the company’s journey. Before we get going, a couple of housekeeping items. Immediately following the presentation, there will be a breakout session in the Maher Room, M A H E R Room.

So join us for that for Q and A. And lastly, I just want to inform you that a complete list of research disclosures or potential conflicts of interest can be found on the William Blair website. So with that, I’ll toss it over to Toby. Thanks.

Toby David, Chief of Staff, Celsius Holdings: All right. Pleasure to be here. I love coming to Chicago, getting this great weather coming from Florida. Appreciate that. Yeah.

Let’s talk some Celsius holdings today. So I’m just going to, you know, clear some things up right off the bat. I’m going talk about Celsius Holdings, which is the portfolio company, Celsius, the brand and aligning new. I’ll refer to that as Celsius Holdings today. When I talk about just Celsius, that’s the brand Celsius.

And then when I talk about aligning new, that speaks for itself. So there’s going to be four key themes that I touch on today regarding Celsius Holdings. The first category disruption. This is a portfolio of disruptive premium brands driving functional beverage categories unparalleled innovation capabilities. Both Celsius and Aligninu are clearly the category disruptors.

50% of the energy category growth last year came from Celsius Holdings between these two brands. Number two, large and growing TAM, attractively positioned for expansion as an innovative leader in the large growing functional beverage category, not just energy. You’re starting to see these lines blur between energy and beverage. And you’re seeing that with both Celsius and Alignin New as consumers are pivoting back and forth between CSDs and energy. Number three, compelling growth strategy.

We have an effective strategy and innovation to reach more people, more places, and more often. I’m a touch on that a little bit later. Number four, strong cash generation profile. We’re to deploy through disciplined capital allocation, driving continued growth and higher returns. Alright.

Celsius Holdings at a Glance. First, as I mentioned earlier, Celsius contributed over 50% of all energy growth last year. We are the number three energy drink portfolio in The US. Now combined, Celsius and Alani New, 16.6 market share within the track channels. We are actually closer to Monster for that number two position than the fourth portfolio brands below us now, 16.6.

No one’s ever touched that before other than Red Bull and Monster. Brand Celsius sold to 98.7 ACV, sold in over 241,000 U. S. Retail outlets. Right now, Align is tracking in the low 80%, range as far as ACV, a lot of upside for them.

We’re the number nine Celsius, not Celsius Holdings. Celsius is number nine in liquid refreshment beverage. We’re going to get to that slide in a minute. It’s very impressive to see who our peers are there. Dollars 3,500,000,000.0 in retail sales last year for Celsius Holdings.

All right. I’m getting to a little bit of history of Celsius Holdings, Founded all the way back in 02/2004. 02/2009, we launched over in Sweden, which actually back in that time frame, it probably was about half of our revenue. I joined the company in 2013. That’s when we initiated our drill deep market strategy.

We were a turnaround company at that point. The original founders went thin and wide and tried to market to the whole country with not enough cash to do it. Company was really on fumes when we came in, in 2012, ’20 ’13. What we do is scale things back. We initiated a drill deep market strategy.

This is where we focused our sales and marketing in five markets around the country, New England, South Florida, Tampa, Dallas, and, Los Angeles. If you look at those markets today, those are actually some of our top performing markets. South Florida, we’ve said it before, about a mid-20s market share in New York, New England, Boston area in particular, close to 20 market share LA, which is the largest energy drink market in the country, roughly a 15 or so market share there as well. So I think when you take a step back and you look at the opportunity of Celsius, you look at some of these markets, some of the biggest markets in the country and we’re in the mid teens, high teens, even in the low 20s. ’20 ’17, we modernized our branding.

Prior to that, we were the world’s only negative calorie beverage. We still are. We just don’t market ourselves as such. What we market ourselves as is an energy drink with functional benefits, burning body fat, accelerating the metabolism. So in 2017, we moved to this can that you see today.

In 2020, we launched our Vibe line, which was a sub line of our core fruit forward line. Same formula, product, just a little bit more fun flavors and packaging. Actually in 2020 also, it’s not cited here. That’s when we actually expanded our DSD national footprint. We started going into two fifty to 300 distributors, predominantly the Anheuser Busch and independent beer network around the country.

That’s when you started to see Celsius take off. 2022 is when we signed our deal with Pepsi, August one of twenty twenty two, rolled in under their trucks October 1 and just started some absolutely astounding growth from that point forward. 2024, we acquired Big Beverage, which is a manufacturing facility in North Carolina. That was our foray into vertical integration. And it’s going to give us a lot of flexibility and it’s going to help drive our margins more favorably moving forward.

Then 2025, we launched our hydration packets. We’ll get into that in a little bit and acquired Aligny now. I mentioned this earlier, top 10 in liquid, LRB, liquid refreshment beverages. When you take a look at this list, this is like a who’s who within within beverage, Coke, Red Bull, Gatorade, Pepsi, Monster. It’s I mean, having joined the company, I think we were doing about $4,000,000 in revenue when I joined back in twenty twelve, twenty thirteen.

You take a look here and to be along with some of these names. I think three of these brands were from the eighteen hundreds. So we’ve got a ways to go to catch up, but pretty impressive list right there. And this is just Celsius, not even Celsius holdings. Let’s talk about the energy drink market and how that consumer has evolved over the last twenty years.

If you’re as old as I am, you’ll remember that, you know, twenty years ago, this was a very male dominated, predominantly young, thrill seekers, very niche category. Remember congressional hearings, people are trying to figure out what to do with energy drinks. Fast forward twenty years, what does it look like? More gender balanced, more age balanced, lifestyle and functional focus, and certainly not niche anymore. It’s mainstream.

Let’s talk about Celsius and our portfolio of products within just Celsius. We have our core line, which is fruit forward in our 12 ounce can. We have our vibe line, which we have more fun with, more lifestyle oriented, more fun with the flavors. Same formula, just different packaging. We have our 16 ounce essentials line, which is, maybe targeting a little bit more of that male demographic, more fluid and a little bit more caffeine as well as having, essential amino acids.

We have our on the go sticks. These do very well And I I think it’s still a big opportunity. Most of our consumers don’t even realize we have these. It’s essentially the same product in a packet as our 12 ounce can.

Then we just launched this year, our hydration. Think, liquid IV type of type of product. We happen to think it tastes a lot better. I’m biased. Alright.

Let’s talk about the growth strategy. So many of you are probably familiar with Celsius. We’re a rocket ship from, call it, 2020 to 2024, triple digit growth for about three and a half years. Hit a little bit of a slow period last year, but what we’ve done over the last nine months is we’ve maintained a market share of roughly about 11%. What what that tells me is we’ve got this great foundation of consumers who love our product.

And what we need to do is a couple of things. More people, more places, and more more often. More people. We need to bring more people into the category and drinking Celsius. We need to get also get people converting over from other energy brands and drinking Celsius.

That’s a more people portion. More places, that’s just expanding, availability and getting further distribution. We cited earlier in the year, John Fielly, our CEO, cited about we anticipated about 15% to 20% greater, distribution so far this year. That’s what we’ve seen. And more often, this is really a huge opportunity for us.

This is greater frequency of consumption within your existing base of consumers. I mentioned we’ve got this strong base that roughly has us around 11 share. What we need to do is we need to drive those those folks to drink one more can a week, one more can a month, and that can really drive impressive results. You look at some of our strategies, throughout the rest of the year and what some other brands, including Align and New have done really well, limited time offerings, we call them LTOs. We’ve mentioned that we’re going to end up doing an LTO later this year for the first time.

It’s an excellent opportunity to drive frequency with your existing base. Earlier in the week, as a matter of fact, we just announced that we’re launching a new marketing initiative. It’s called live fit go. And if you’re familiar with our brand, we say live fit on it. What we’re attempting to do here, and we’re really confident we’re gonna do, is expand it to a broader message or a broader audience so that people that maybe aren’t necessarily just hitting the gym every day, that they understand that Celsius is still a brand for them.

It’s not just for folks that are that are going to the gym on a daily, weekly basis. Gonna play a little video here to show you what that looks like.

Unidentified speaker: Starts with Celsius. Feel like I feel good about it. I’m gonna need it. I’m training for life. From after school pickups to meal prep to a twelve hour night shift.

I don’t have time to get ready. I’ve got to stay ready.

Unidentified speaker: Dump control starts with a Celsius. I got a whole day to cease. First, it’s cardio. Then it’s a race against the clock. Refuel.

I’ve got 48 to do in twenty four.

Unidentified speaker: It’s 04:49AM. Grab a Celsius. Lock in. I’ve got a goal to hit and a deck to conquer. The party to be the life of and all the essential energy I need to do it.

Toby David, Chief of Staff, Celsius Holdings: So lift it, go. That’s where we’re going this year with Celsius, and that’s how we’re going to hit more people, more places, more often. It’s going to be a comprehensive three sixty marketing approach. You’re going to see it digital, TV, all across the board, social media. All right.

Let’s tap into Aligny News. So many of you might not be as familiar with Aligny News. So we acquired Aligny, earlier this year, closed on April 1. Aligny was really, they were they were right there with C4 and Ghost fighting for that number four position within energy about twelve months ago, and they just really started to take off. We had had our eye on them for a while.

We love their brand. We liked what they were doing. We we feel I know a lot of people seem to think that, there’s a lot of crossover between Celsius and Elani New. We we feel very differently about it. You take a look at their brand positioning, it’s their their packaging is quite a bit different.

The way they position their brand, it’s while we’re a fifty fifty male female split at Celsius, Elani New is closer to 90%. More than 90% of their social media followers are female. Fun fact, only about one to 2% of their followers follow Celsius, so very differentiated consumer. But I would encourage you, I know we have some product out there. If you’ve never tried Elani, give it a shot.

It tastes very different than Celsius, totally different flavor profile. Focused on the sugar free options with vibrant, unique flavors that resonate with that eighteen to twenty four year old consumer, bright, fun, female centric, very playful and approachable. They’ve really done a fantastic job with their marketing. It’s quite a quite a bit differentiated than Celsius. So let’s take a look at their portfolio.

I showed you Celsius’ earlier. About 83% of their sales last year came from their energy drinks. They have a a a little bit more of a a differentiated pro product assortment than Celsius does. We did acquire them for their energy drinks. Let’s be clear.

That’s what’s growing rapidly. They have some really interesting products. These shakes, protein, as I think many of us know, that’s really, on trend right now. It’s gonna be interesting to see the way that develops throughout the year. It’s about 6% of their 2024 sales.

And as you can see, they have pre workout, snacks and other stick packs as well. But energy is certainly where it’s at and that’s what we’re most interested in. All right. What’s the strategic rationale? It creates a leading better for you functional lifestyle platform at the intersection of consumer megatrends, sugar free, female, I’m going tap into that in a second.

Those are two of the fastest growing segments of energy, combines two growing scaled energy brands with clear category tailwinds, complementary brand positioning and attractive consumer demographics expected to drive incremental category growth, leverages combined strengths and capabilities to drive to the next phase of growth and enhances top line growth algorithm and expect to be cash EPS accretive in year one. Mentioned this earlier, we feel and we know that that aligning is incremental to Celsius. Again, it shows you a little bit of the demos, demos, but you can see even just from the images quite a bit different from one another. Celsius higher household income than the category, whereas you have Aligni New over there. It’s a little bit more of a younger consumer base, obviously, predominantly female, both have very high repeat rates.

The target audience for for Celsius, more gender neutral performance driven with a broad appeal for everyday energy and beyond, while you’ve got Alana more female focused lifestyle oriented for consumers seeking a fun and approachable brand. Creates this better for you functional lifestyle platform, $2,000,000,000 in net, roughly in net revenue last year in 2024. And today, we’re staring at about a 16.6 category share. So I mentioned this a little bit earlier. When you look at what’s driving the energy drink category, it’s sugar free and also the female consumer.

There’s actually a report that came out last week that really talked so much about women are driving the energy drink growth right now. And I couldn’t think of a better portfolio than Celsius and Align and New to really capitalize on that. You can see Sugar Free for the first time last year overtook full sugar at more than 50% of the category and that trend is only going to continue. You can see it from 2020 it started and where it’s at today. So I mentioned this earlier, Celsius holdings between Celsius and Alani New, that’s 50% of the of the energy category growth last year.

We we’re we’re still driving the growth, aligning new in particular growing at triple digits right now. Really excited about what they’re doing and really excited about the trends you’re seeing from the Celsius brand, especially the last call it twelve to fourteen weeks. Take a look at the, energy MULLO plus with convenience. There’s a lot of, letters right there. Basically, that just means the total tracked, you know, retail network, whether it’s convenience, Amazon, Costco, Walmart, all of them.

Take a look at Celsius. Just in the since q one of twenty twenty two, that’s 10 shares Celsius holdings picked up in the last, call it, three plus years. Pretty amazing right there. You see, Red Bull up top at 37%, Monster there at 27 and a 5%, and we’re chasing them down. All right.

Prime for growth with strong competitive advantages. Function backed by science, a category leader in in growing in health and wellness fitness segment, actually aligning new much like Celsius was born in fitness. GNC was the first retailer to carry aligning new. So you’ve got two two brands are capital capitalizing on the health and wellness trends, strong brand affinities, differentiated sales and marketing approach that creates significant demand, loyal consumer bases, very loyal consumer bases. Actually, of the TikTok videos that I’m shown, of aligning new consumers showing up to a target and, you know, some of these younger younger females just wipe out the entire, all they’ve gotten inventory when there’s new flavor launches.

It’s pretty cool. Continuous innovation with the introduction of new flavors and products and best in class operations and supply chain capabilities. That’s a huge opportunity. I’ll touch on a little bit later. But integrating Aligninu into Celsius Holdings, we have a really fabulous operations team and a huge opportunity to drive synergies there.

So let’s touch on the 2025 profile for Celsius holdings. So I’m not going to go through every one of these numbers. We did hold a modeling call last week. It’s on our website. I encourage all of you to take a look at it if you haven’t, where we kind of walk through what aligning look like in 2023 and 2024 and maybe some expectations for 2025 as we integrate it in.

But you can see here, they did roughly $600,000,000 in net revenue. It was 46% year over year growth. I referenced it earlier. They’re at triple digit growth year over year right now. So they’ve really accelerated things quite a bit.

Something to remember when you’re when you’re tracking a brand like Alana New, we went through this at Celsius a few years ago. There’s always gonna be a discrepancy or not always. A lot of times, there’s going be a discrepancy between reported net revenue versus Surcana or Nielsen, if you’re looking at that. It’s just the ebbs and flows and when orders come in and we are in that growth phase. There’s going to be a delta.

So we included that just for visibility of what it looked like, over the last call it five quarters. So as you’re modeling things out, just keep that in your mind for perspective. Celsius and aligning new pro form a 2024 financials. I referenced this earlier, close to $2,000,000,000 in net revenue last year. Gross profit margin of about 48% combined, pro form a, and you can see the rest of the numbers there.

So on the modeling call, Jared, our CFO walked through this. I’m not going go through every number, but we wanted to give folks an idea of how they should model things out because this is a work in process. ’24 we said about twenty four months, it’ll take to fully integrate Aligny New into Celsius, you know, hopefully sooner, but give us twenty four months. There’s no reason Aligny New shouldn’t have a very similar, if not the same margin profile as what you see with Celsius today. We’ve said they’re about two to three years behind us, but you can take a look at what we’re forecasting for 2025 from margin perspective.

Right. Celsius is driving shareholder value. I mentioned the more people, the more places and more often. So I’m not going to drive that home any further. But we’re driving EBITDA margin through operational excellence initiatives designed to deliver strong cash flow generation.

We came in at a 52% gross margin in Q1, which is fabulous. We’ll see where we land the remainder of the year. But like I said earlier, our ops team is best in class. Paul Storey, our Chief Supply Chain Officer, he led ops at Monster previously and Rockstar previous to that. So he’s got the best relationships in the business and really does a great job for us.

Operational excellence driving margin expansion. We boosted innovation and production capabilities with the acquisition of Big Beverages, our contract manufacturing plant in North Carolina in November of twenty twenty four. I think it’s been mentioned before publicly. We foresee that plant being able to at some point maybe do about 20% of all of our production and that should be able to represent most of our Southeast business. Driving innovation, global procurement, supply chain and global marketing through our center of excellence in Dublin.

We set that up last year, really have a fabulous team over there that’s going to help us ramp up international business as well. Investing in technology and AI assisted tools to drive sales and improve efficiencies just like everybody else. AI is something that we’re paying close attention to and we’re utilizing on a daily basis. And then executing talent strategy to support our growth initiatives. So we’re going to maintain a disciplined capital allocation.

You saw some of that with our acquisition of Aligny New. We’ll invest to fuel organic growth, invest strategically in innovation and marketing initiatives designed to accelerate organic growth and maximize productivity, strengthen our capabilities and expertise and cement foundation for sustainable growth. Number two, maintain a strong balance sheet and debt paydown. And if you have ever met John Feeley, our CEO, he was a CFO by trade, CPA by trade. We essentially have CFOs running this company.

We do not mess around when it comes to expenses and things of that nature. That’s why Paul and I are sitting at the Motel six while we’re in town. Nothing against Motel six. Robust liquidity position with current net leverage of approximately one times and ample cash on the balance sheet post Number three, we’re going to continue to be opportunistic as far as an M and A perspective and we’re always going to evaluate opportunities.

That being said, the integration of Align and New is our number one priority right now. And, you know, so we’re going to keep our eye on what’s out there, but the eye on the prize right now is getting a strong integration and maximizing that opportunity. What’s investment thesis here? Number one, a leading portfolio of premium functional beverages with strong and growing consumer demand for functional and better for use zero sugar energy solutions. Again, zero Sugar, you see Red Bull leaning in heavy, Monster’s leaning in heavy.

We’re the OGs when it comes to Zero Sugar and aligning new as well. 100% of our portfolio is sugar free. Attractively positioned to capture opportunity in the large and growing functional beverage category through strategic investments and innovation. Number three, robust brand equity and awareness with opportunities to expand driven by targeted marketing initiatives in a loyal consumer base. Number four, clear path to drive incremental revenue and profit growth through more people, more places and more often.

I think that’s a sixth time I’ve referenced that. That’s how important it is to us this year. Strong financial profile with a well capitalized balance sheet enabling sustained organic growth, strategic vertical integration, technological advancements, and value accretive acquisitions. I’m not gonna run through all these. These are just a bunch of numbers that you guys can cite.

I’m not up here just to recite the appendix. So, with that, we’ve got a few minutes left. I know, John wanted me to try to take up all the time, but if I’m here for q and a, I know we’ve got a breakout section here shortly. So it’s up to you, John, how you want to do this?

Operator: As you know, the energy drink category slowed last year, and I’m just kind curious what you’re seeing more recently and maybe more importantly, what your expectations are for 2025?

Toby David, Chief of Staff, Celsius Holdings: Yes. I mean, you’ve seen the consumer kind of bounce back as far as our category. You’ve seen more the foot traffic within convenience has improved that could be gas prices have come down. So I think that’s helped and that’s where our preponderance of energy sales come out of convenience. So that’s been helpful.

Red Bull has leaned in and they’re sugar free and they’re LTOs. I think LTOs have really driven a lot of the category growth, whether it’s Monster, Red Bull, Aligning New for sure. That’s something that I referenced earlier, we’re going to be I think I referenced it earlier, we’re going be launching an LTO in Q3, Q4. So I think that’s driving a lot of frequency. I’d like to see that there I don’t have enough data yet, but get more consumers entering the category again.

I think last year you saw that slowdown, but I think that had more to do with the macro issues. So the category is growing robustly. It was I think 7% in Q1. It’s accelerated in the last four weeks. So as we head into summer season, really excited about where the category is, where the trends are for Celsius along with some of the marketing initiatives that I spoke about.

Operator: And the shelf space that you mentioned earlier, is that on Celsius brand? Is that on Celsius and the Montenew? What’s the mix there? And when did those actually hit

Toby David, Chief of Staff, Celsius Holdings: The 15% to 20% reference was for core brand Celsius. That’s what John Field, our CEO had referenced earlier in the year. Those have pretty much all hit the shelves. You see the shelf resets begin to take place in January and the run through May, couple of large retailers still hit the shelf. Feel really good about where we’re at.

We’re going to have some innovation that launches over the summer, couple of SKUs coming out and then we have the LTO coming out later in the year. So we’ll get additional placements, but a bulk of that 15% to 20% have already occurred for Celsius. We haven’t really spoken publicly about a lot of news gains this year, but they’ve been substantial. Now would think that there’s a great opportunity for further distribution for them the remainder of the year and then into next year.

Operator: Yes.

Toby David, Chief of Staff, Celsius Holdings: So we’re not really commenting publicly on that right now. We feel like we’ve got great optionality between whether it’s Pepsi or the current network there in that fragmented AB independent beer network that we had come from. That network is fabulous. They’ve lost a lot of key brands over the last two or three years. So right now, ALAWI gets quite a bit of attention there.

There’s pros for both networks, but we haven’t made any decisions yet and there’s really nothing to talk about publicly. Yeah.

Unidentified speaker: Think it’s interesting to be kind of trying

Operator: to broaden out beyond Jim or I have to everyday kind of mainstream user world being more occasions. Are you I like the message. Are you going to be spending more too? Is it are you kind of leaning in or heavy enough spending?

Toby David, Chief of Staff, Celsius Holdings: Yes. I mean, in the modeling call, we’ve talked a little bit about what the percentage of sales and marketing would be for the remainder of the year, but that’s for Celsius Holdings. So that includes aligning new. I anticipate there’s probably a little bit of additional spend that’s going into that initiative. Right now you’re seeing the two big players spend quite a bit in marketing in particular Red Bull.

I can’t turn on TV without seeing their cartoons right now. So it’s really important that we lean in to this marketing campaign and we’re really confident it’s going do well for us.

Operator: Their margins eight points or some other 10 percentage points lower than Celsius. Is that the mix of their business where they have more non energy drink business or is it just scale?

Toby David, Chief of Staff, Celsius Holdings: It’s just scale. I mean, it’s really where we were two to three years ago and when we were roughly the same size as them. So fully I mean, if you look at the back of their can, their ingredients, a lot of the same ingredients, they source the cans from the same three big players that we do. A lot of the same manufacturing facilities that we’re in. I think just, you know, we’ve got a great team as I referenced earlier that negotiates great rates for us.

So number one, getting them rolled into our contracts will be fantastic. But then also the scale, you’re talking about going from $1,500,000,000 to $2 plus billion worth of buying power. So we’d think that that’s actually going to enhance things. So it’s going to take some time. Hopefully, it’s quicker than the twenty four months I mentioned, but there’s no reason why they shouldn’t have a similar margin profile to Celsius.

Operator: There’s been a lot of extensions a couple of years ago, labor tensions. But one of the things I hear regularly is start, you know, and maybe part of broadening the appeal is is a lower caffeine version or hand size. Is there anything you’re thinking about from innovation perspective that would that would maybe support the broader customer

Toby David, Chief of Staff, Celsius Holdings: base? Yes. I mean, if you take a look at Aligny New, they actually have a smaller can that’s one hundred milligrams of caffeine, and it’s certainly something that we’re exploring for core brand Celsius as well. We look at our innovation team looks at a whole host of different opportunities. I would agree with you, done a lot of flavor assortment over the years.

Think sometimes maybe fewer but bigger could be an opportunity for us as we move forward and more focused national campaigns with some of these launches as well as some what I term like true innovation versus flavor innovation.

Operator: Supply 20% of your core Celsius volume or did that

Toby David, Chief of Staff, Celsius Holdings: I would say Celsius and Elani. Yes, has opportunity. We have one line in there now. It’s already got some of the infrastructure set up to put a second line in there. North Carolina is, you know, for those who don’t know, it’s one of the hubs for a lot of manufacturing for for beverages in The US.

There’s a few co packers right in that area, great freight lanes there to get across the Southeast United States. So, yeah, it’s a huge opportunity for us. And obviously, that will be friendly as far as the margins when you’re able to produce it yourself.

Unidentified speaker: And

Toby David, Chief of Staff, Celsius Holdings: maybe a little bit in Q1. Q4 not necessarily, but I think in Q1 you start to see some of that.

Operator: All right. We’ll take it to the breakout room. Thank you, Tony.

Toby David, Chief of Staff, Celsius Holdings: Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.