Celsius Holdings Establishes Royalty License Agreement In China

Posted On: 1/31/2019

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BOCA RATON, FL -- Celsius Holdings Inc., maker of Celsius global fitness drink, said it has agreed to establish a royalty license and repayment of investment agreement with Qifeng Food Technology (Beijing) Co. Ltd., creating a risk-mitigated method of capturing market share in China.
Under the agreement, Qifeng Food will be granted the exclusive license rights to manufacture, market and commercialize Celsius-branded products in China. Qifeng Food will provide a return of a fixed $6.9 million as a license fee covering the first five years, then transitioning to a volume-based royalty fee. In addition, Qifeng Food will repay all capital Celsius has invested into the China market to date, over a five-year loan term.
"These agreements represent a significant milestone in our partnership that will create mutual benefits for our organizations," commented Celsius Holdings Inc. president and chief executive John Fieldly. "It enables Celsius to continue to expand its footprint in the very important China market while significantly mitigating our risk and eliminating the need for additional investments, which allows Celsius to focus its working capital on the U.S. and other emerging markets,"
Qifeng Food Madame president Wang Rui added: "With the commitment and the passion of the Qifeng team, we are confident to create value for the Celsius brand and improve the lifestyles of the consumers in the ongoing health and wellness trend in China."