Group 1 - Celsius Holdings Inc. shares increased over 3% pre-market after Morgan Stanley upgraded the stock to Overweight and raised its price target to $70.00 from $61.00, indicating a positive outlook for the company [1] - The company is expected to experience a reacceleration in scanner and topline growth, with analysts noting a return to growth after a slowdown last year, and easier comparisons anticipated from December through mid-2026 [1][2] - Celsius' Alani brand, which accounts for approximately 40% of sales, showed moderated growth but is expected to accelerate following its transition to Pepsi's distribution system [2] Group 2 - The new captaincy agreement with Pepsi is expected to provide Celsius with greater control over shelf space and product prioritization, which could enhance sales performance [2] - Morgan Stanley forecasts a favorable pricing environment and resilient demand for Celsius, with revenue and adjusted EBITDA projections for FY26 and FY27 expected to exceed consensus estimates [3]

Strategic Partnership & Investment - PepsiCo will increase its stake in Celsius to approximately 11% [1] - PepsiCo will gain a board seat at Celsius [1] - The investment solidifies the strategic alignment between PepsiCo and Celsius from a business, commercial, and investment perspective [7][8] - Celsius sees PepsiCo as a strategic partner [9] Portfolio Expansion & Brand Strategy - Celsius will acquire the Rockstar energy brand in the US and Canada [1] - Celsius has a modern energy portfolio including Celsius and Alani Nu [2] - Alani Nu is one of the fastest-growing brands in the energy category, attracting new female consumers [2] - The combined portfolio of Celsius, Alani Nu, and Rockstar represents approximately 20% market share in the energy drink category [6] Distribution & Market Access - The deal provides Alani Nu with access to PepsiCo's distribution network, including food service, colleges, and universities [2][6] - Distribution is critical for maintaining product availability on shelves and in cold coolers [5] - The partnership aims to leverage PepsiCo's salesforce, organization, and merchandising capabilities [4]