Celsius Benefits From Functional Energy Drink Category Expansion

Posted On: 10/30/2019

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BOCA RATON, FL -- Celsius Holdings has announced a substantial expansion in the total number of retail locations that offer its products, as “trend-forward” functional energy brands capitalize on consumer shifts towards healthier, “better-for-you" functional energy.

The company reported that the total number of retail locations carrying its lifestyle fitness drinks has increased 57% YTD in 2019, to more than 60,000 locations nationwide.

“Exponential growth across all channel verticals continues to accelerate as macro industry and consumer trends are being driven by the health-minded consumer demanding healthier alternatives to conventional energy drinks,” Celsius president and chief executive said John Fieldly. Benefiting from this transition's industry disruption, Celsius is driving growth and outpacing larger, more established brands, he explained.

Third-party data clearly demonstrate strong consumer demand for Celsius functional fitness drinks, Fieldly observed, “and validates our achievements in broadening our placements with more retailers, while at the same time increasing volume per location.”

Third-party data from SPINS (Shelf Stable Energy & Functional Beverages) for the 52 weeks ended Aug. 8, 2019 indicates that Celsius’s sales growth has continued to accelerate in both the convenience and the grocery channels year-over-year, while substantially outpacing the channel in volume growth at existing accounts.

In the convenience channel, Celsius showed 41.1% growth, outpacing its category by 4.3 times (11.9% ACV) ACV (all-commodity volume) represents the total annual sales volume of retailers that can be aggregated from individual store-level up to larger geographical sets. Celsius ranked as the 12th top brand; it gained 3,245 new “doors” within the convenience store channel in 2019. In “multi outlet” (grocery) Celsius showed 110.2% growth, outpacing its category by 8.5 times (24.3% ACV), and was ranked ninth top brand.         

Celsius quotes beverage industry analyst Bonnie Herzog of Wells Fargo, who recently commented: “The fitness/performance energy subcategory is now going mainstream, suggesting there’s even more potential disruption across the category than we previously expected. There’s still a long runway of growth across broader energy as new consumers enter the category, echoing recent sentiments from our C-store retailer contacts, who have indicated they expect the category to grow by a strong 8.3% in 2019.”

Retailers across all channels are broadening their traditional energy drink offerings to align with today’s consumer demands, Celsius noted. Besides the convenience and grocery channels, Celsius has increased the number of drugstore locations selling its products by more than 500% through the first nine months of 2019, with a store count now over 10,000 locations. The company reports similar growth in the vending channel; the product launched in vending last year, and now has more than 14,500 retail locations, up more than 140% from the end of 2018.

Celsius Holdings Inc.is a global company with a proprietary, clinically proven formula for its Celsius brand and all its sub-brands. A lifestyle fitness drink and a pioneer in the rapidly growing performance energy sector, the company has five beverage lines that each offer proprietary, functional, healthy-energy formulas: Celsius Originals, Celsius Heat (a pre-workout drink), Celsius On-the-Go, Celsius BCAA (Branched-Chain Amino Acids) and Celsius Sweetened with Stevia. Celsius has zero sugar, no preservatives, no aspartame, no high fructose corn syrup, and is non-GMO, with no artificial flavors or colors. Celsius products are Certified Kosher and Vegan, soy and gluten-free, and contain very little sodium.

According to the company, Celsius is backed by six university studies, published in peer-reviewed journals, that substantiate its benefits.