The Texas Attorney General’s Office launched an investigation into Celsius Holdings, Inc., on Thursday, accusing the energy drink giant of marketing its products to children and adolescents, despite containing what the AG’s office says are “dangerous” levels of caffeine.
Texas AG Ken Paxton said the investigation focuses on Celsius’ Alani Nu line of drinks, which contain 200 mg of caffeine per 12-oz can. For comparison, a 12-oz cup of Starbucks coffee contains about 270 mg of caffeine, and a 12-oz can of Coca-Cola contains 34 mg of caffeine.
“This is a level medical professionals consider dangerous for children and adolescents,” the AG’s office said in a press release. “Despite this, the brand employs colorful packaging, playful design elements, and youth-oriented branding strategies that appeal directly to younger consumers, raising serious questions about whether the company is deliberately marketing a potentially harmful product to an at-risk population.”
The Boca Raton, Fla.-based drink manufacturer denied the allegations and committed to cooperating with the AG’s office review.
“Celsius and Alani Nu take product safety, responsible marketing and transparent consumer information seriously. Alani Nu energy drink labels disclose the total amount of caffeine in each can and include responsible-use guidance stating the product is not recommended for children, people sensitive to caffeine, pregnant women or women who are nursing,” Celsius said in a statement.
The drink company, which also owns Celsius Energy and Rockstar Energy, noted that its policy is “not to market or sample energy drinks to anyone under 18 years of age.”
Paxton announced the investigation a little over a week after his decisive win in the Republican primary senate election against incumbent US Sen. John Cornyn. Paxton now faces Democratic state representative James Talarico in the November 2026 general election to represent Texas in the US Senate.
Wrongful death lawsuit in Texas
Paxton noted in the announcement that children and young adults across the country have reported adverse health effects from consuming energy drinks with large amounts of caffeine, highlighting the recent death of 17-year-old Weslaco, Texas, resident Larissa Nicole Rodriguez.
Rodriguez’s family filed a wrongful death lawsuit seeking more than $1 million in damages, after a doctor determined the death was connected to large amounts of caffeine consumption from Alani Nu drinks.
“The lawsuit claims the product failed to provide adequate warnings about its caffeine content – a failure that may have cost a young Texan her life,” the AG’s office stated.
Deceptive trade?
Paxton said his office would pursue the investigation to determine whether Celsius and Alani Nu misled consumers in violation of the Texas Deceptive Trade Practices Act.
“Texas families deserve to know that the products marketed to their children are safe and not filled with dangerous levels of certain ingredients,” said Paxton. “The tragic death of a 17-year-old Texas girl allegedly caused by consuming a highly caffeinated energy drink is a sobering reminder of what is at stake when companies prioritize profit over the safety and wellbeing of our children.”
Texas takes on food companies
The investigation into Alani Nu isn’t Paxton’s first challenge to food companies. The AG’s office targeted General Mills, WK Kellogg Co. and Mars in 2025, over the companies’ use of dyes and preservatives in their products.
In the General Mills investigation, Paxton accused the food giant of misrepresenting the safety of its cereals like Trix and Lucky Charms, which were marketed as healthy and a source of vitamins.
The AG’s office accused Mars and Kellogg of including unhealthy dyes and preservatives in their products. Following those investigations, all three companies agreed to remove the ingredients in question.
Celsius Holdings’ rise
The investigation comes a little over a year after Celsius purchased the female-centric Alani Nu, a better-for-you energy drink brand that contains zero sugar, for $1.8 billion.
The acquisition, along with Celsius’ expanded distribution partnership with PepsiCo and subsequent acquisition of Rockstar Energy Drink, has catapulted the energy drink company into the upper echelons of the market.
In May, Celsius reported in its quarterly earnings report that Celsius Holdings now controls a fifth of the US energy drink market.
In the three months ended March 31, Celsius reported $782.6 million in revenue, driven by Alani Nu, which reached sales of $368.1 million for the quarter.
Celsius Chairman and CEO John Fieldly partially attributed the successful quarter in early May to the launch of limited-time products, specifically highlighting the Alani Nu Lime Slush drink as the top seller for the quarter.
“We view that as an important proof point that the brand’s innovation model is durable, and that it is not dependent on any one particular hero flavor,” Fieldly said. “Following the success of Cherry Bomb, Lime Slush reinforces that the flavor rotation strategy is working, and we continue to see a lot of new innovations strengthening the connection between the brand and consumers.”
