Celsius soars after announcing plan to buy Gen Z-focused competitor, shrugging off Q4 sales dip

Celsius Holdings, the energy drink brand beloved by celebrities and fitness influencers, is spiking in early trading after disclosing a $1.65 billion deal (net of tax assets) to acquire rival beverage maker Alani Nu.

Yesterday’s acquisition announcement came almost simultaneously with the company’s Q4 earnings, which revealed sales were down 4% year on year, better than analysts were forecasting, per Barron’s.

Since its Nasdaq debut in 2010, Celsius’ stock has been on a wild ride.

It was delisted from the Nasdaq at the end of that year, and while it returned in 2017, shares remained below $2 — until the company signed major distribution deals with beverage giants like AB InBev, Keurig Dr Pepper, and PepsiCo as consumers came around to its “healthier energy drink” marketing message. Since 2020, its revenues have grown more than tenfold, sending shares to an all-time high of ~$100 in March.

But, since peaking in May 2024, shares have plunged ~73%, wiping out over $16 billion in market cap as PepsiCo — Celsius’ primary US distributor — cut back orders to adjust inventory levels, triggering a 31% year-over-year revenue drop in Q3.

Acquiring the seven-year-old Alani Nu, which is popular among Gen Z and millennial women, might be the shot in the arm Celsius needs: in January, Alani Nu saw retail sales jump 78% from the previous year, according to Circana. Celsius expects the combination to drive the company’s revenue toward ~$2 billion (up from the $1.4 billion it pulled in alone in 2024), and boost its energy drink market share from 11% to 16%. Currently, Celsius holds the third spot in the $23 billion US energy drink market, trailing Red Bull and Monster.