Celsius Expands into Female-Centric Energy Drinks with Alani Nu Acquisition

Celsius Holdings has acquired Alani Nu, a female-centric energy drink brand, to expand beyond its core fitness-focused products. Alani Nu's retail sales rose 88% YoY in Q1 2025, and the combined Celsius and Alani Nu portfolio captured a 16.2% dollar share in the energy drink category. The acquisition aims to leverage Alani Nu's female-focused brand to shape Celsius' category position in functional energy.

Celsius Holdings (CELH) has expanded its portfolio beyond traditional energy drinks through strategic acquisitions and new product launches, positioning itself as a leader in the modern energy category. The company's latest move was the acquisition of Alani Nu, a female-centric energy drink brand, which closed in April 2025. This acquisition aims to leverage Alani Nu's female-focused brand to shape Celsius' position in the functional energy category.

The acquisition of Alani Nu has added significant growth levers to Celsius Holdings. Alani Nu's retail sales rose 88% year-over-year (YoY) in the first quarter of 2025, contributing to the combined Celsius and Alani Nu portfolio capturing a 16.2% dollar share in the U.S. energy drink category [1]. This strong performance highlights the potential of the acquisition to drive growth for Celsius Holdings.

In addition to the acquisition, Celsius Holdings has entered the hydration space with Celsius Hydration, a caffeine-free, zero-sugar electrolyte stick targeting the booming $1.4 billion hydration powder market [2]. This move underscores the company's intent to evolve into a broader functional wellness company, not just an energy drink brand.

Celsius Holdings' innovation strategy is well-aligned with long-term category trends. The company has rolled out new flavors like Playa Vibe and expanded multipacks, which now make up over 50% of sales in some channels. Shelf space is increasing, especially in foodservice and convenience channels, with new placements in over 18,000 Subway locations and 1,800 Home Depot stores [1]. The company's Big Beverages facility is now fully integrated, providing flexibility for faster innovation cycles. Meanwhile, the operational leadership brought in from PepsiCo is expected to enhance supply chain efficiency and support rapid scaling as distribution deepens [1].

While the first quarter of 2025 showed a 7% revenue decline, Celsius Holdings is cycling an exceptionally strong prior-year quarter and remains optimistic about momentum heading into the second quarter of 2025. International growth is strong, up 41%, and the company now holds a combined 16.2% dollar share in the U.S. energy drink category alongside Alani Nu in the first quarter of 2025 [1].

Celsius shares have surged 75% year to date against the industry’s 2.2% dip. The company trades at a forward price-to-earnings ratio of 46.19X compared with the industry’s average of 15.91X. The Zacks Consensus Estimate for CELH’s 2025 and 2026 EPS indicates year-over-year growth of 17.1% and 41.6%, respectively [1].

Celsius Holdings' competitors, PepsiCo (PEP) and The Coca-Cola Company (KO), are also actively transforming their portfolios to meet evolving consumer needs around functionality, health, and convenience. PepsiCo has launched zero-sugar variants, smaller-format multipacks, and function-forward products like Gatorade Zero and Gatorade Rapid Hydration. Coca-Cola has focused on "fewer but bolder" launches and expanded functional and wellness offerings like fairlife and Fuze Tea [1].

Jefferies recently raised its price target on Celsius Holdings to $54.00 from $45.00, citing improved distribution as a "game changer" for the company [3]. The investment firm highlighted the strength of Celsius’ "Live Fit" lifestyle branding and ample scope for margin expansion as operating leverage takes effect at the company.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/PEP/pressreleases/33331428/will-celsius-innovation-strategy-fuel-its-next-wave-of-growth/
[2] https://finance.yahoo.com/news/celsius-innovation-strategy-fuel-next-161900076.html
[3] https://uk.investing.com/news/analyst-ratings/jefferies-raises-celsius-stock-price-target-to-54-on-distribution-gains-93CH-4161977