Should PepsiCo’s Expanded Partnership and Rockstar Deal Reshape the Celsius Holdings (CELH) Investment Narrative?

• On August 29, 2025, Celsius Holdings and PepsiCo announced an expanded long-term partnership, with Celsius acquiring the Rockstar Energy brand in the U.S. and Canada, while PepsiCo increased its stake in Celsius to 11% through a US$585 million investment and gained an additional board seat.
• This agreement positions Celsius Holdings as PepsiCo's lead energy drink partner in the U.S., integrating Alani Nu into PepsiCo’s distribution and expanding Celsius's portfolio and market reach.
• We'll explore how Celsius Holdings' new role managing a broader energy drink portfolio may shape its investment narrative and growth outlook.

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Celsius Holdings Investment Narrative Recap

To be a Celsius Holdings shareholder, you need to believe in the company's ability to drive outsized growth as the lead energy drink partner for PepsiCo, capitalizing on a unified portfolio of CELSIUS, Alani Nu, and Rockstar Energy brands. The recent PepsiCo partnership solidifies Celsius Holdings’ short-term growth catalyst, accelerated distribution and expanded market reach, while intensifying the risk around integration costs and margin pressure from a structurally lower-margin acquisition profile. On balance, this update does not materially change the biggest near-term catalyst or risk, but may amplify both.

One of the most relevant recent announcements is PepsiCo’s US$585 million investment through Series B Convertible Preferred Stock, which increases its stake and adds board representation at Celsius Holdings. This move cements PepsiCo’s alignment and deepens Celsius Holdings’s access to distribution channels, directly supporting near-term revenue expansion while concentrating customer dependence as a risk to watch.

Yet investors should be aware, in contrast, that growing reliance on major distribution partners exposes Celsius Holdings to...

Read the full narrative on Celsius Holdings (it's free!)

Celsius Holdings' projections foresee $3.3 billion in revenue and $516.0 million in earnings by 2028. This outlook is based on an annual revenue growth rate of 25.7% and an increase in earnings of $420.1 million from current earnings of $95.9 million.

Uncover how Celsius Holdings' forecasts yield a $58.62 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community span US$31.71 to US$68 across 24 views, showing wide variation in expectations. While many see opportunity in Celsius Holdings’s health-focused growth drivers, your outlook could hinge on how it manages risks tied to margin compression and partner dependence.

Explore 24 other fair value estimates on Celsius Holdings - why the stock might be worth as much as 11% more than the current price!

Build Your Own Celsius Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Celsius Holdings research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Celsius Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Celsius Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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