Celsius energy drink shares rose 44% this week after announcing a significant acquisition of Alani Nu, the fourth-largest energy drink brand in America. The deal, valued at $1.65 billion, is considered reasonable given Alani Nu’s growing sales, which have increased by 50% annually over the last three years.
The combined brands now control a 16% share of the US energy drink market, projected to grow by 10% annually through 2029. This move is a strategic shift for Celsius, aiming to divert attention from its slightly turbulent 2024 results.
In 2024, Celsius saw a 22% increase in retail sales, but its stock revenue only rose 3% due to the timing of its sales to PepsiCo. However, the company gained 160 basis points of market share during the year. With Alani Nu expected to be cash-accretive by 2025 and joining Pepsi’s distribution network, Celsius remains an intriguing growth stock for investors to consider, despite requiring patience.
Source: https://www.fool.com/investing/2025/02/21/why-celsius-stock-is-skyrocketing-this-week