PepsiCo is tightening its grip on the fast-growing energy drinks market with a fresh $585 million investment in Celsius Holdings, lifting its stake in the company to 11 percent. The deal, announced Friday, also reshapes the energy portfolio in North America, with Celsius set to acquire PepsiCo’s Rockstar Energy brand in the United States and Canada.
Celsius will now oversee three distinct labels for PepsiCo in the US: its own Celsius line, the female-focused Alani Nu, and the more traditional Rockstar Energy. PepsiCo, meanwhile, will spearhead distribution for the Celsius portfolio, unlocking deeper retail reach across major chains.
“This positions Celsius as the energy captain within PepsiCo’s system in the US,” said Celsius CEO John Fieldly, noting that Alani Nu’s migration to PepsiCo’s distribution platform will eliminate the need for the 250 independent distributors it currently relies on. The move is expected to cut costs, improve efficiency, and accelerate the brand’s growth among young women. Adding Rockstar, he said, ensures Celsius can address every corner of the energy drink spectrum—from health-conscious consumers to core energy loyalists.
PepsiCo first bought into Celsius in 2022 with a $550 million preferred stock investment, giving it an 8.5 percent stake. The latest deal extends the conversion period of that earlier tranche and grants PepsiCo an additional board nomination. While PepsiCo retains ownership of Rockstar Energy outside North America, the transfer of the brand’s US and Canada operations to Celsius consolidates strategy in the world’s most competitive energy market.
Industry watchers view the move as a potential stepping stone toward a full takeover of Celsius. Fieldly declined to speculate but acknowledged that the structure mirrors other long-term alignments seen in the beverage sector.
With Celsius’ rapid rise, Alani Nu’s niche appeal, and Rockstar’s established presence, PepsiCo appears to be building a three-pronged push to challenge Monster and Red Bull on home turf.
