Celsius Holdings Inc

Celsius Holdings has recently strengthened its partnership with PepsiCo, which is expected to dramatically improve its market share. The agreement allows Celsius to take full control of energy drink distribution, enhancing its sales potential. The manager anticipates that the Alani brand alone could generate $300 million in adjusted EBITDA growth in 2026, suggesting that the market is undervaluing Celsius's growth prospects. The stock is currently trading at multiples similar to slower-growing competitors, indicating a significant upside once the market recognizes Celsius's potential.

Celsius Holdings, Inc. (CELH) was mentioned as one of the impactful drivers of return in the quarter, but no specific argument or directional stance was provided regarding its future performance or valuation.

I repurchased shares in Celsius shortly after they announced the $1.8B acquisition of Alani Nu. CELH shares suffered last year as the company’s valuation transitioned from that of a high-growth beverage brand to that of a slow-growth consumer staple as sales growth softened and ultimately briefly went negative due to a large inventory build last year in the convenience store channel in conjunction with their reliance on Pepsi as a distribution partner. The Alani Nu acquisition also gives them ownership of a rapidly growing upstart brand. With the two brands together, the company has ~16% share of the energy drink market and offers the most attractive growth profile of any beverages or staples company at one of the cheapest valuations available in the market in an end market that should offer durable and attractive growth in most economic environments.

Celsius Holdings (CELH) is an energy drink brand I had purchased with a tracker position in a personal account ~6 years ago, and have tracked since then. The company has executed as well or better than anyone's wildest expectations, and the company was rewarded with a partnership with Pepsi to expand distribution in mid-2022. The company then experienced explosive growth and improved gross margins as Pepsi's distribution reach gave CELH instant access to many more slots in many more points of sale. There remains significant momentum for the brand despite this hiccup, which provided the opportunity to purchase the stock below $30 after the stock price exceeded $90 per share in early 2024, after sales had increased 10x since from 2020 to 2024.

Celsius Holdings (CELH) is an energy drink brand that has executed as well or better than anyone's wildest expectations, rewarded with a partnership with Pepsi to expand distribution in mid-2022. This partnership led to explosive growth and improved gross margins, giving CELH access to many more points of sale. Despite recent price cuts to move accumulated inventory, there remains significant momentum for the brand. The acquisition of Alani Nu, a fast-growing competitor, consolidates Celsius' position in the better-for-you energy drink category, which is expected to power future growth. The stock was purchased at 21x 2026 consensus estimates, fitting the growth-at-a-reasonable-price (GARP) mold.

Celsius Holdings (CELH) is an energy drink brand that has executed as well or better than anyone's wildest expectations, rewarded with a partnership with Pepsi to expand distribution in mid-2022. This partnership led to explosive growth and improved gross margins, giving CELH access to many more points of sale. Despite recent price cuts to move accumulated inventory, there remains significant momentum for the brand. The acquisition of Alani Nu, a competitor in the better-for-you energy drink category, consolidates Celsius' position and is expected to power future growth. The stock was purchased at 21x 2026 consensus estimates, fitting the growth-at-a-reasonable-price (GARP) mold.

Celsius develops, markets, sells, and distributes functional fitness and lifestyle beverages. The stock performed well during the period, driven by Celsius’ now-completed acquisition of Alani Nu, a fast-growing energy drink brand that is expected to boost the combined companies’ market share. Additionally, the company’s core business improved sequentially through March and started the second quarter poised to return to positive growth.

Celsius develops, markets, sells, and distributes functional fitness and lifestyle beverages. The stock performed well during the period, driven by Celsius’ now-completed acquisition of Alani Nu, a fast-growing energy drink brand that is expected to boost the combined companies’ market share. Additionally, the company’s core business improved sequentially through March and started the second quarter poised to return to positive growth.

Celsius develops, markets, sells, and distributes functional fitness and lifestyle beverages. The stock performed well during the period, driven by Celsius’ now-completed acquisition of Alani Nu, a fast-growing energy drink brand that is expected to boost the combined companies’ market share. Additionally, the company’s core business improved sequentially through March and started the second quarter poised to return to positive growth.