PepsiCo Shares Climb 1.14% on $1.15B Trading Volume Ranks 60th as Strategic Tie-Up with Celsius Boosts Stake to 11% in Push for Health Beverage Dominance

On August 29, 2025, PepsiCo (PEP) rose 1.14% with a trading volume of $1.15 billion, ranking 60th in market activity. The company has deepened its partnership with energy drink producer Celsius Holdings through a $585 million investment, raising its ownership stake to 11% via convertible preferred stock. This follows a 2022 deal where PepsiCo acquired an 8.5% stake for $550 million. The expanded agreement includes integrating Celsius' Alani Nu health and wellness brand into PepsiCo's U.S. and Canadian distribution networks, which accelerates retail availability for the fast-growing female-focused product line.

Under the terms, Celsius will also absorb PepsiCo's Rockstar Energy brand in North America, positioning it as the strategic energy drink leader for the partnership. This move eliminates Celsius' reliance on 250 independent distributors, enhancing operational efficiency and cost savings. Celsius CEO John Fieldly emphasized the transaction's role in creating a comprehensive energy drink portfolio spanning traditional (Rockstar) and wellness-focused (Alani Nu) segments. PepsiCo retains global rights to the Rockstar brand outside North America while gaining a board seat nomination right through the new investment.

The deal aligns with PepsiCo's strategy to strengthen its presence in the healthy beverage market, complementing existing brands like Gatorade and CytoSport. Analysts note the partnership's potential to create a multi-brand energy portfolio, though Fieldly declined to comment on speculation about a full Celsius acquisition. The transaction underscores PepsiCo's commitment to capitalizing on Alani Nu's rapid growth and expanding its distribution capabilities through Celsius' infrastructure.