Celsius Stock Surges on Expanded PepsiCo Partnership

Shares of Celsius Holdings (CELH) surged over 9% in premarket trading Friday after the energy-drink maker announced a significantly expanded strategic partnership with PepsiCo (PEP). The deal solidifies Celsius’s role as PepsiCo's new energy drink leader in the United States.

Under the agreement, PepsiCo will invest an additional $585 million in newly issued convertible preferred stock, boosting its ownership stake in Celsius to approximately 11%. As part of the sweeping portfolio realignment, Celsius will acquire the Rockstar Energy brand from PepsiCo in the U.S. and Canada, complementing its own fast-growing fitness-focused beverages.

This move positions Celsius to manage a unified U.S. energy portfolio that includes its flagship CELSIUS brand, the lifestyle-oriented Alani Nu, and the newly acquired Rockstar Energy. PepsiCo, in turn, will handle the distribution for all three brands across the U.S. and Canada, leveraging its vast retail network to accelerate growth.

John Fieldly, Chairman and CEO of Celsius Holdings, described the new role as a “pivotal milestone” for the company. “With a proven functional beverage portfolio and a stronger long-term partnership with PepsiCo, we believe that Celsius Holdings is well-positioned to deliver greater innovation, sharper execution and sustained brand growth,” he stated.

The alliance deepens a partnership that began in 2022 when PepsiCo made an initial $550 million investment in Celsius. This new structure is designed to better compete in the lucrative energy drink market, long dominated by rivals Red Bull and Monster.

Ram Krishnan, CEO of PepsiCo Beverages U.S., noted the transaction is a key step in “reshaping its brand portfolio to position us for long-term growth.” He added that a stronger, multi-brand portfolio is “better positioned to serve different consumer cohorts.”

Following the news, Celsius shares jumped 9.2% to $65.18 in premarket trading, touching a new 52-week high.