Celsius (CELH) CEO On New Products & Growth Expectations

Investment Analysis Clubs Saul’s Investing Discussions
1

-As reported in the earnings call - recently launched in 2,000 Jersey Mike’s and getting great feedback.

-Celsius tag line is “Grab a Celsius and get to the Gym.”

-Market share has gone from ~3% to ~10% in the last year

-Category has shifted to about 50% sugar-free in a pivot to being more wellness conscious

-Expecting positive outcome form Retailers’ spring shelf resets

-New Products - Green Apple Cherry & Cosmic Vibe

-Expanding into Canada in Q1 2024 with Pepsi distribution

-CEO is expecting to expand in non-reported channels such as Hospitals, Universities, and Fast Casual restaurants. Anecdotally, I talked with a Nurse last week who mentioned that she is seeing Celsius popping up all over the place at OHSU, the largest hospital and medical school in the state of Oregon.

-My hometown NBA team, the Portland Trailblazers, just announced Celsius Essential as their official energy drink partner.

-Moving into sports in a big way, in discussion with several NFL, NBA, and MLB teams on deals.

-MLS - several teams signed up as well as the national property, F1 with Ferrari, now expanding into basketball, hockey, and other sports.

-Have a deal with the PFL(professional fight league) and Jake Paul pro boxing match just happened on Dec 15th.

-Fieldy thinks the market that Celsius will become is much broader than just the “Fitness-Energy” focus it has now.

-In over 78 Universities - focus on expansion including NIL, campus expansions, etc

-Expanding Vibe Line with Intergalactic branding

-“Dry January” coming - will promote Mocktails.

-Some variety of caffeine content for those concerned about “too much” caffeine.

Full Video:
Celsius (CELH) CEO On New Products & Growth Expectations (youtube.com)

43 Likes
2

Good 1 hour deep dive on Celsius from 2 months ago with Jonah Lupton. He’s a 3.5 year bull who has interviewed Fieldly on his podcast.

-Celsius is growing at a much faster pace than Monster ever did.

-Celsius should come out with a 100mg version to compete with red bull at bars, also to satisfy anyone who is looking for a lower caffeine version.

-Celsius may release a hydration product some point, if pepsi approves, to compete with Gatorade, Vitamin Water, etc.

-Strong play in a recessionary environment as a coffee replacement and with less guilt than a traditional energy drink.

-Celsius only has around 400 employees and its SBC is very low, especially compared with your typical tech company, so there isn’t a lot of dilution.

Full Podcast:

32 Likes
3

Note in a recent IBD article…

Energy drink maker Celsius, which inked a distribution and investment deal with PepsiCo in 2022, could see its next wave of growth come from food-service distribution. At Morgan Stanley’s Global Consumer and Retail Conference on Dec. 6, Celsius management touted its entry into Jersey Mike’s Subs, a number of Dunkin’ Donuts locations and potential to land at Pizza Hut or, eventually, even Starbucks.

“They (Dunkin’) feel we’re incremental.,” management said, according to a write-up by TheFly.com. If the placement pans out, it “maybe opens doors” with other retailers.

Celsius is expected to expand internationally.

After a great run from May through early September, Celsius stock largely sat out the fall rally, but CELH stock broke above its 50-day line on Dec. 27.

22 Likes
4

In early 2024, European supermarket chain Carrefour removed PepsiCo products from store shelves to protest “unacceptable” price hikes. Carrefour has over 12,000 stores worldwide, mainly in France, Italy, Spain, and Belgium. Hopefully, this gets resolved soon, and does not spread to other retailers.

Long CELH 8%

16 Likes