PepsiCo Raises Stake in Celsius with $585m Deal
Last update: August 30, 2025
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PepsiCo raises its stake in Celsius Holdings to about 11% with a $585 million investment, strengthening its energy drink portfolio amid growing demand for healthier alternatives.
PepsiCo has increased its stake in Celsius Holdings through a $585 million deal, underscoring its push to expand in the fast-growing energy drink market.
CBI News reports that the global soda and snacks giant acquired 5% of Celsius’ preferred stock, taking its total stake to roughly 11% after conversion. PepsiCo first invested $550 million in Celsius in 2022, securing an 8.5% stake at the time.
As part of the deal, PepsiCo will gain a seat on Celsius’ board. Celsius will also oversee the companies’ combined U.S. energy drink portfolio, which includes Celsius, Alani Nu, and PepsiCo’s Rockstar Energy brand.
Analysts at Jefferies said the agreement positions Celsius as PepsiCo’s “energy captain,” giving it more control over strategy, retail allocation, and product prioritisation in the highly competitive sector.
The U.S. energy drink market, valued at $25 billion in 2024, is expected to grow 7.2% annually through 2030, according to Grand View Research. The deal gives PepsiCo and Celsius a 20% share of the category, allowing them to better compete with industry leaders Red Bull, Monster Beverage, and Coca-Cola, which holds a 19% stake in Monster.
Shares of Celsius rose nearly 4% on Friday, extending a rally that has more than doubled its value this year.
