Picture this: You bring your car in for inspection and find out it’ll need a few thousand dollars in repairs to pass.
Sigh. Time to get a new car.
You’re stuck at the dealership for over two hours with two young children in tote.
Negotiations finally complete, the salesman hands you the keys — and a cold can of Celsius Sparkling Lemon-Lime…
The perfect refreshing surprise after a long day.
That’s the experience my colleague’s sister had on Wednesday – and clearly, it made a mark.
I’ve heard of free oil changes and car washes… even the token hot dog and Coke. But this was something else.
It was a simple gesture that humanized the daunting car-buying experience and a nice touch from a man named Shah at a Kia dealership in Northern Virginia.
More importantly, it’s an anecdote that reflects the rising popularity of Celsius’s (CELH) better-for-you energy drinks.
Not just for fitness buffs anymore, the healthy energy alternative is going mainstream — and gaining momentum.
Since hitting its all-time high just a couple of weeks ago, CELH is now surging past $150 for a brand-new record.
Expectations couldn’t be higher.
Does LikeFolio data still support the hype? Here’s the latest…
Celsius Is Smashing Records
According to our data, total mentions for CELH have nearly tripled year-over-year on a 90-day average. With one week still left in the second quarter, they have already smashed last quarter’s record high:
We’re not surprised to see CELH’s data strengthen and its share price climb to new heights this month.
Our proprietary CELH consumer demand and sentiment data has consistently outperformed that of industry peers like Monster Energy (MNST) and Red Bull.
The correlated three-year sales growth track record speaks for itself.
In the first quarter of 2023, Celsius’s revenue jumped 95% while EPS (earnings per share) soared 344% year-over-year.
CELH doubled its market share and solidified its position as the nation’s No. 3 energy drink.
On Amazon.com (AMZN), it claimed an even higher position as the site’s second-best-selling energy drink — well ahead of Red Bull and right on the heels of Monster.
Behind the recent surge? Celsius’s strategic deal with PepsiCo (PEP).
Pepsi Distribution Proves to Be a Huge Deal
Hooking up to the Pepsi network has increased distribution points for Celsius and gotten its healthier energy drinks in front of more consumers. Even better news — integration with Pepsi’s system is still in the early stages.
Since the Celsius-Pepsi distribution went into effect on August 1, 2022, Celsius Purchase Intent is up more than 50%:
Call it “The Pepsi Effect.”
A Winning Formula
As energy drink shelves get more crowded, unique flavors and a sugar-free pick-me-up are proving to be a winning formula — even at Celsius’s higher price point.
Consumers on social media can’t stop raving about how Celsius provides the buzz they need to get through a tough workout or a long workday.
In a challenging economic backdrop, the resilient brand is behaving like “the luxury clothes of the beverage industry.” Consumers aren’t batting an eye when it comes to paying a bit more for a healthier alternative to Monster and Red Bull.
As long-time subscribers can attest, we are a bit obsessed with this company. And for good reason.
LikeFolio Investor subscribers who followed our January 2022 bullish alert on CELH are up 236%.
Derby City Daily readers who caught our first February 28 issue featuring CELH could be up as much as 63%.
Even with this incredible success, we remain bullish on CELH long-term.
This company continues to carve out a winning niche in the fast-growing energy drink space, and has found a sweet spot at the crossroads of health, taste, and functionality.
It might’ve been created as a brand for exercise enthusiasts… But Celsius is increasingly finding its way into new walks of life.
Heck, if car dealers are handing this stuff out, who knows what’s next.
Probably more amazing financial results.
Can’t wait to see the second-quarter report.
Want more Celsius content? Click here and you’ll find it.
Until next time,
Andy Swan
Founder, LikeFolio