Celsius and PepsiCo Expand Partnership, Celsius to Own Rockstar Energy Brand in US and Canada

Celsius Holdings has expanded its relationship with PepsiCo, acquiring the Rockstar Energy brand in the US and Canada in exchange for $585 million in convertible preferred stock. The deal adds a conventional energy drink to Celsius' portfolio and strengthens PepsiCo's stake in the business. The move is seen as a win for both companies, with Celsius gaining a well-established brand and PepsiCo adding the fastest-growing brand in the functional beverage market to its roster.

Celsius Holdings, Inc. (CELH) has expanded its strategic partnership with PepsiCo, Inc. (PEP) by acquiring the Rockstar Energy brand in the US and Canada for $585 million in convertible preferred stock. This deal adds a conventional energy drink to Celsius' portfolio, complementing its existing brands such as CELSIUS® and Alani Nu® [1].

The acquisition of Rockstar Energy, a well-established brand in the energy drink market, is expected to attract incremental consumers who prefer classic energy drink flavors and formats. This addition will broaden Celsius Holdings' total energy portfolio, appealing to a broader range of consumers with varied tastes and lifestyles [1].

In exchange for the acquisition, Celsius Holdings has issued $585 million in convertible 5% preferred stock to PepsiCo, increasing PepsiCo's ownership in Celsius Holdings to approximately 11% on an as-converted basis. Additionally, PepsiCo will nominate an additional director to serve on Celsius Holdings' board of directors, further aligning both companies strategically for the long term [1].

The expanded partnership between Celsius Holdings and PepsiCo is seen as a win for both companies. Celsius Holdings gains a well-established brand and a stronger distribution network, while PepsiCo adds the fastest-growing brand in the functional beverage market to its roster [1].

The deal is expected to accelerate the partnership's performance, driving value for shareholders of both companies. Celsius Holdings management will host a webcast today, Friday, Aug. 29, 2025, at 8:30 a.m. ET, to discuss these business updates with the investment community [1].

References:
[1] https://www.businesswire.com/news/home/20250828083699/en/Celsius-Holdings-and-PepsiCo-Strengthen-Long-Term-Strategic-Partnership