2025-09-10 16:32Summary of Celsius Holdings Conference Call Company Overview - Company: Celsius Holdings Inc. - Recent Development: Expanded deal with PepsiCo valued at approximately $585 million [2][6] Key Points from the Conference Call 1. Deal with PepsiCo - Captaincy Agreement: Celsius becomes the energy lead within the Pepsi Energy portfolio, allowing for prioritization in distribution and planogram decisions [2][3] - Distribution Opportunities: Significant potential for Alani Nu within convenience stores, currently at 65% ACV (All Commodity Volume) [4][5] - Partnership Strengthening: New President and COO, Eric Hansen, enhances alignment with Pepsi, including an additional board seat for Pepsi [5][6] 2. Brand Performance and Strategy - Celsius and Alani Nu: Both brands are expected to benefit from increased distribution and planogram control, with a focus on high-velocity SKUs [10][12] - Rockstar Brand: Aims to stabilize and potentially grow Rockstar, with a focus on consolidating SKUs and leveraging historical brand strengths [20][21] - Market Share Goals: Celsius aims for a 20% market share, positioning itself closer to Monster Beverage's 28% share [12][30] 3. Innovation and Product Development - Innovation Focus: Plans for limited-time offerings (LTOs) and new product categories, including protein shakes from Alani Nu [22][23] - SKU Rationalization: Emphasis on increasing ACV for top-performing SKUs to enhance velocity and market presence [15][16] 4. Market Trends and Category Performance - Category Growth: The energy drink category is experiencing double-digit growth, with a shift in consumer preferences from coffee to energy drinks [25][27] - Consumer Behavior: Rising coffee prices are driving consumers towards more affordable energy drink options like Celsius [26][27] 5. Financial Outlook and Margins - Margin Pressures: Anticipated pressures from aluminum tariffs in Q3 and Q4, with a projected gross margin in the low 50s [29][30] - Long-term Margin Goals: Celsius aims to achieve mid-50s gross margins, benchmarking against Monster Beverage [30][31] 6. International Expansion - Cautious Approach: Celsius is methodically expanding into international markets, focusing on brand equity and distribution partnerships [35][36] - Long-term Vision: Plans for international growth are seen as a 3-5 year play, with potential in health-conscious markets like Scandinavia [36] 7. Investor Insights - Turnaround Story: Celsius has stabilized and is poised for growth, with Alani Nu showing triple-digit growth and a strong future outlook [37][38] Additional Important Points - Food Service Opportunities: Celsius has seen success in food service, contributing approximately 11-12% of revenue, with Alani Nu expected to tap into this segment [9][18] - Planogram Resets: Anticipated resets in major retailers will occur from January to April, impacting distribution strategies [17][18] This summary encapsulates the key insights and strategic directions discussed during the Celsius Holdings conference call, highlighting the company's growth potential and market positioning.