Bloomberg Televisionยท2025-08-29 15:53Energy Drink Market & M&A Activity - Energy drink is a lucrative non-alcoholic beverage category, attracting interest and investment [1] - The energy drink category is seeing consumers trading ice coffee for energy drinks, indicating a growing trend [8] - The M&A landscape is reviving, with expectations for increased activity in the autumn, particularly around Labor Day weekend [11][12] PepsiCo & Celsius - PepsiCo currently holds approximately 85% stake in Celsius and is increasing it to 11% [1] - Celsius will manage Rockstar as part of a transaction, consolidating the distribution channel through PepsiCo's network [2] - There is speculation about a potential future acquisition of Celsius (market cap just below $16 billion) by PepsiCo (market cap of about $203 billion) [3] Competitors & Potential Deals - Coca-Cola's stake in Monster Beverage hasn't led to a full takeover, suggesting different strategies for engaging with the energy drink market [4] - Red Bull, a large private company owned by Austrians and a Thai family, is a potential IPO candidate and a significant player in the energy drink market [6][7] - Alcoholic beverage makers like AB InBev might be interested in entering the energy drink space, creating potential overlap and deal opportunities [9] Industry Dynamics - The energy drink category requires constant innovation in marketing strategies due to the frequent emergence of new players [5] - Interest rate changes and administrative shifts are creating a favorable environment for M&A activity across various sectors, including energy and consumer [13]