Better-for-you energy drink makers can expect greater competition from category giants Celsius and Alani Nu this summer, as the market leader expands rapidly across the country.
While Celsius Holdings, which also owns the Rockstar Energy brand, completes its integration with PepsiCo’s distribution network, it is focused on organic growth through new product innovation and limited-time product releases, said Celsius CEO John Fieldly at the company’s Q4 earnings call on Thursday.
Boca Raton, Fla.-based Celsius’ stock value spiked more than 15% upon the release of the Q4 report, jumping from $50.80 per share on Wednesday to a mid-day high of $58.70 and ending the day at $54.
The energy drink maker greatly outperformed analyst expectations, reporting Q4 earnings of $0.26 per share on revenue of $721.63 million. Consensus estimates predicted $0.19 per share on revenue of $638.18 million, according to Earnings Whispers.
Retail expansion powered by PepsiCo
The massive growth at Celsius is a reflection of its $1.8 billion acquisition of Alani Nu LLC in April and its expanded partnership with PepsiCo in September, which included the integration of its brands into PepsiCo’s distribution and the acquisition of Rockstar Energy from the cola giant.
The three-brand energy drink company is growing rapidly with a projected 17% increase in shelf space for Celsius in 2026 and a more than 100% increase for Alani Nu, according to the company.
“Each brand can win in its own way, and our focus is to enable that to happen more and more,” Fieldly said. “We operate with precision, making sure that we are present where it counts, bringing the right innovation and activating demand in a way that strengthens our core, not just the moment.”
Celsius Holdings’ $722 million in net sales for the quarter was driven by Alani Nu ($370 million), with Rockstar contributing $45 million and the remaining roughly $307 million coming from Celsius brand drinks, according to CFO Jarrod Langhans.
The success of Alani Nu was driven by customer demand and increased distribution as the brand transitions into the PepsiCo distribution system, Langhans said, adding that Alani has contributed $1 billion to Celsius Holdings’ net sales since its acquisition nine months ago.
“On a pro forma basis, that would equate to growth of 136% for the quarter compared to the prior year,” he said.
For the full year, Celsius delivered $1.46 billion of net sales for the company, up 7.5% year over year, and bringing the full-year consolidated revenue to $2.5 billion, Langhans added.
Celsius Holdings’ gross profit increased $175.1 million to $341.8 million for the year, with gross profit margin ending the year up 47.4%, compared to 50.2% from the prior year. The dip reflected increased costs from integration of the Rockstar brand and tariff expenses, Langhans said.
Where is the shelf space coming from?
The rapid growth of shelf space for Celsius Holdings stems from a broad range of sources, and is largely driven by increased interest in energy drinks over other kinds of beverages, according to Fieldly.
“When you look at the energy category, and it continues to grow as a larger percentage of LRB (liquid refreshment beverages), retailers are expanding more space. They’re expanding half-coolers and doors and more dry shelves,” Fieldly said.
The convenience channel is optimizing beer coolers now as the popularity of energy beverages begins to overshadow beer sales. Meanwhile, the juice and premium water categories are also under pressure.
“There is a lot more space coming in the energy category as it’s becoming part of a daily lifestyle, daily routine and expanded usage occasions. Historically, it’s been an impulse purchase, and convenience has been a main driver of that, over 60% of sales,” he said.
Large-format stores are also carving out more space for energy drinks over the last two years as grocers seek to “capture a larger share of those energy drink sales that will continue to grow,” Fieldly added.
Innovation in energy drinks
Innovation in energy drinks is driving growth in the category, and Celsius Holdings aims to keep up with new products and limited-time offers (LTOs), according to Fieldly.
Expanded space on the shelves will help with new product development, he said. Celsius Holdings launched its first LTO from Alani, Cherry Bomb, under the new PepsiCo distribution network in late 2025, and the flavor sold out “in record time,” according to Langhans.
Alani also recently launched a Lime Slush-flavored LTO and is planning limited-time flavors for Celsius later in 2026, the company said.
Integration continues at Celsius
Celsius Holdings spent Q4 continuing the integration of Alani Nu and Rockstar and remains “on track” to complete its work this year. That includes finishing moving Alani Nu into the company’s supply chain, back office and commercial operations, according to Langhans.
“We have also moved a substantial portion of the distribution network into the Pepsi system, with only a few pieces of the DSD (direct store delivery) network remaining outside of Pepsi today,” he said.
The Alani Nu integration is expected to be completed by the end of Celsius’ first quarter, and Rockstar is projected to be completed in Q2, according to Langhans.
