August 17th, 2022, Lesley Simeon
Pepsico has announced a $550 million investment in energy drink maker Celsius Holdings – translating to a minority stake of 8.5% in the company. The investment is part of Celsius’ long-term distribution deal with Pepsi. It’s the brand's third attempt to enter the sector.
In 2020, Pepsi acquired energy drink maker Rockstart Energy (with whom Pepsi already had a distribution agreement since 2009) and entered into an exclusive distribution agreement with Vital Pharmaceuticals’ Bang Energy. The latter agreement fell through in the latter half of 2020.
While drinks like regular full calorie carbonated drinks, 100% fruit juices and iced tea find more favour among the general US population, about 35% of US adults consume energy and sports drinks at least once a week, according to YouGov Profiles - that covers demographic, psychographic, attitudinal and behavioral consumer metrics.
Compared to other generations, Millennials consume energy and sports drinks the most – 50% of them consume these drinks at least once a week. This is followed by 40% of Gen Z, tracked closely at 39% by Gen X customers – giving Pepsi a well-highlighted target segment of energy drink consumers.
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Methodology: YouGov Profiles is based on continuously collected data and rolling surveys, rather than from a single limited questionnaire. Profiles data for the US market is nationally representative and weighted by age, gender, education, region, and race. Learn more about Profiles.