Celsius Holdings, a US-based energy drink brand, stated that it sees the most opportunity for growth in the convenience channel, highlighting “cold availability” as crucial for success.

PepsiCo-backed Celsius is planning to invest in branded, chilled cabinets in US retailers in 2024, building upon its acquisition of 10,000 units worth $10.5 million in 2023.

The comments came as the company posted record earnings for its full year 2023, with revenue up 102% to $1.32 billion and up 95% in the fourth quarter to $347 million, driven by sales in North America.

Speaking to investors following the company’s full-year results on 29 February, John Fieldly, chairman and CEO, said, “The biggest opportunity for us is in convenience.

“We’ve built this brand, going through the variety of channels, and the biggest opportunity is in convenience where you have got 56/57% of all sales.

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“So that’s where we anticipate the biggest resets to take place, in the coming resets.

“Right now, in the convenience channel, we are just at a 10(%) share. So, we’re really excited about the opportunities you have there. Versus if you look at the food category, we’re roughly around a 16(%) share within the energy category.”

Fieldly emphasized that the accessibility of chilled Celsius energy drinks was “crucial” to the brand’s expansion, highlighting that eye-level placements in stores were “essential.”

Celsius’s cooler assets experienced a significant surge, more than doubling from $9.9 million in 2022 to $21.9 million in 2023.

“It’s a big initiative we’ve had over the years trying to get more cold placement,” Fieldly said. “Cold availability is key to success in order to compete in the energy category, especially with the impulse purchases.

“That is the biggest opportunity for us. When we look at the convenience channel, that impulse purchase is key to the success of where we want to go and who we want to be in the category.

“We are investing in more coolers, we’re working on placing more coolers. We want to be right at checkout. Eye-level is critical.

“We’re again talking to a variety of retailers as well to gain additional checkout coolers. I think that’s a big opportunity.

“Most recently down in south Florida… and we’re looking to gain additional checkout coolers on the next reset.”

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Additionally, the company highlighted the promising prospects of e-commerce. In 2023, the brand emerged as the top-selling energy drink on Amazon, capturing a 19.7% share of the category, surpassing Monster Beverage (19.6%) and Red Bull (12.3%).

“We continue to drive further revenues through that [Amazon] channel. It is an omni-channel world and that’s something we really focus on here at Celsius,” Fieldly said.

The company also acknowledged plans for international expansion in 2024, but refrained from disclosing specific countries beyond its recent deals.

Last month, Celsius revealed its plans to penetrate the UK and Ireland markets through a distribution deal with Suntory Beverage & Food. Fieldly stated that the company anticipates sales to “begin gradually” in the region during the second quarter.

Furthermore, it made its debut in Canada through PepsiCo in mid-January, expressing optimism that the country “should be a great market.” This initiative represented the group’s initial “significant” international launch since PepsiCo acquired an 8.5% stake in Celsius in 2022.