Energy drink giant Celsius considers move into food, water

Celsius Holdings is looking at “adjacent categories” such as food or water that it could enter in the U.S., but CEO John Fieldly cautioned that any expansion would be several years away and that the company remains focused on growing its popular energy drink.

“We’re always looking at adjacent categories, white space, how far can the brand go,” Fieldly said in an interview. “We don’t have anything in the works right now, but those are things that, when you look at our three- to five-year strategy and road map, can the brand expand?”

Fieldly cautioned that other beverage brands have had mixed results entering new categories.

PepsiCo’s Gatorade, he noted, has been wildly successful after branching out from its position as a hydration beverage into protein bars, powders and even dietary supplements through gummies. At one point it sold Gatorade gum, but the offering was discontinued in 1989. PepsiCo currently owns an 8.5% stake in Celsius.

In stretching the Celsius brand, Fieldly mentioned functional water, hydration, protein shakes or bars and “some type of confectionary” as potential options. A new product could be sold as an entirely new brand that is “powered by Celsius” or it could be placed under the Celsius banner. The company has a protein bar line in Finland called Fast, but it is a small part of the larger business.

“Those are the things we talk about,” he said. “I don’t have the answer, but it’s a really, really good question.”

For now, Fieldly noted that Celsius is “staying focused” on the “massive opportunity” it has in energy drinks.

Just six years ago, Celsius was largely unknown in the energy drink space. It had little market share and $53 million dollars in annual revenue. The beverage maker’s products were predominately sold in gyms.

Today, its market share has swelled to nearly 12%, revenue in 2023 topped $1.3 billion and its beverages are found everywhere from Walmart and 7-Eleven to Jersey Mike’s and Dunkin’ Donuts. Fieldly noted that Celsius is attracting new consumers to energy drinks and driving growth in the space, assets that are attractive to retailers.

Celsius has quickly become a force in the $19 billion U.S. energy drink space due to its use of functional ingredients and the popularity of its exotic flavors, such as Sparkling Green Apple Cherry and Mango Passionfruit. 

Despite its rapid growth, Fieldly said Celsius is “just getting started” in energy, noting the company has identified convenience stores and international markets as two of its largest growth opportunities.

The company is expanding usage occasions for its beverages outside of fitness by getting into more restaurants, pairing the drink with food at different stores and incorporating it as an ingredient in mocktails. It also remains a major beneficiary of consumer interest in health and wellness trends.

“We’re innovating” the energy drink sector, Fieldly said. “That’s our mission right now.”